LATEST UPDATES
President Lyndon B. Johnson, correspondence
Item
- Title
- Description
- Date
- extracted text
-
President Lyndon B. Johnson, correspondence
-
box: 369
folder: 2
-
1966 to 1968
-
Jen
~
jf
J.
/
ee
j
A
i
“CN
wv
ft
| | \
CAR
nN
x
}
SRS Ae NR
eR
CS NR
- ECONOMY
JOINT VENTURE
RE
Oey
V3
\
wr
RR
“
OE
the
The
car
meet
of the
foreign
car
competition
notes
Katzenbach
acquiring
the
stock
may
y
ll
ia
nt
ta
bs
su
of
ct
fe
ef
e
th
ve
ha
of commerce
economy
or may
tend to create
car-joint venture
within the meaning
‘would
of Section
lead to exactly
of other
corporation
joint venture
the opposite
that the Clayton Act
or assets
prohibits
corporations
lessening
competition
a monopoly,
substantially
7 (of the Clayton
the economy
concerning
facts
the
and theoretical
on conjecture
current
an economy
would violate
of imports
of a domestic
and the creation
Mr.
from
examination
An
market
primarily
based
appears
Act
argument.
may
to meet the
domestically
Clayton
competition
holding that
to produce
corporation
of a joint venture
establishment
car
Katzenbach
statement transmitted by Mr.
Act."
conclusion.
corporations
if the acquisition
in any line
and argues
lessen
to
that the
competition
IPt
letter
h
c
a
b
n
e
z
t
a
k
e
h
t
to
t
n
counterargume
r
ca
y
m
o
n
o
c
e
e
r
u
t
n
e
v
t
re join
In support
each
of which
is
Motors
of General
of compacts,
competitive
imported
particularly
the
argument.
cars.
arguments,
compact
a statement
''sales
and that
is
car
by Mr.
made
type
of economy
priced models,
the lower
of one type
This,
that the
(citing
Roche,
certain
2
answered.
argues
car
Corporation)
that the success
economy
and
below
Katzenbach
.
r
M
t
a
h
t
e
u
r
t
is
It
he presents
position,
with the economy
competitive
sales
discussed
Mr.
i.
of this
page
are
in a latter
however,
was
cars
and
sufficiently
of the others."
affects the fortunes
dated August
Roche
24,
a self-serving
1965,
statement
counterargument to the katzenbach
re joint venture-economy car
Roche
Mr.
He
attributes
as the primary
out a variety
Buick
the
accept
biggest
$200
compact,
more
Buick
industry
as being
made
in bringing
such GM
competitive
Certainly
1965.
June
cars
F-85
with
no one would
competitive
with
the
an
th
er
ng
lo
t
fee
o
tw
t
ou
ab
is
II
Even the Chevy
of the popular
more
and
F-85
Tempest,
are
cars
Special
peak
response
Oldsmobile
Tempest,
that these
"the
in the listing
cannot be credited.
car
economy
the Volkswagen!
claim
The
decline
automobile
and includes
II and Chevelle,
Chevy
Special.
the European
cars"
of smaller
as the Corvair,
and
challenge
competitive
to this
January through
for this
by the U.S.
their
declined to 6.5 percent
Market--and
reason
reached
cars
5.5 percent in 1964 and 5.4 percent
by 1961,
3
page
out that imported
pointed
percent of the U.S.
in 1959--10
letter
small
than the most
the Rambler,
than the most
car
imports,
with
small
car.
expensive
a retail price
And
in its lowest price model
popular
import,
the lowest-priced
costs $
the Volkswagen.
at least
xXXXxXX
letter
counterargument to the katzenbach
re joint venture-economy car
claim
The
market
all,
penetration
today
compacts
car buyers
American
the facts
''compare"
and therefore
cited by Mr.
fell to 4.9 percent
months
first
while for the same
represents
the
not give
economy
Roche
the two.
percent
that Mr.
In fact,
car
with the full-sized
by the majority
of
Moreover,
the fact that the import penetration
increased
since that year.
accounted
percent
the
For
sales,
for
«2
period in 1965 they rose to
to
of
First
is misleading.
than a little car.
total imports
gain of
in
for the decline
reflect a desire
overlook
and has
of 1964,
credence
car.
merely
for a big rather
in 1962
It is apparent
does
in size
favorably
may
a percentage
percent
imports
car
correlation between
is no necessary
there
of 1957,
small
by the
is responsible
compact
that the
4
page
and an increase
his
from
XXXXX
of the market.
Roche's
statement,
to the claim that the compact
XXXXX
when
closely
car
competes
examined,
with
counterargument to the katzenbach
re joint venture-economy car
Strangely,
self-serving,
by the U.S.
claims
statement,
car producers
Both Ford
this kind of vehicle.
with the foreign import
is because
for it, '' since the available
the major
compact
market
is in fact a competitor
is left unchallenged
companies
2.
assumption
to enter
There
have
to unanimous
stated publicly that
car in the United States
There
of the Volkswagen;
is too
market
to be divided
have
is here
to compete
enough
is not a large
would probably
the demand
Roche's
to Mr.
no credence
that the
no claim
rather
that the field
all the
small to warrant
the market.
is no merit
to the Attorney
General's
that because
there
will be joint decisions
car,
there
also
of the joint venture
on compact
because
import
do not intend to produce"!
"that they
manufacturers.
U.S.
attaches
but he gives
"there
5
page
and Chrysler
an economy
the failure to produce
among
General
the Attorney
defensive
letter
and other
independent
will be further
produced
unwarranted
on price
and
joint decision
vehicles.
output
making
To project that
letter
h
c
a
b
n
e
z
t
a
k
e
th
to
t
n
e
counterargum
r
a
c
y
m
o
n
o
c
e
e
r
u
t
n
e
v
re joint
joint control over
products
philosophy
this bizarre
of the anti-trust laws,
trade
useful
associations,
and practical
a
and
If
.
t
c
u
d
n
o
c
h
c
u
s
in
t
l
u
will res
t
n
e
m
e
c
r
o
f
n
e
e
h
t
in
l
as gospe
adopted
n
w
o
d
e
k
i
r
t
s
to
e
v
a
h
d
woul
the government
and a a host of other
bargaining
multi-employer
It is a nonsequitur
arrangements.
"A" and
y
l
l
u
f
w
a
l
n
u
o
s
l
a
l
l
i
w
y
"Y' the
and an insult
"B" lawfully decide
to decide
combine
issues
issues
es
The
be the price
example,
were
to say that because
to business
"NX" and
produced,
to other
a virus
to infer that a mere
is cynically,
in wrongdoing
to engage
opportunity
spread
d
l
u
o
w
m
e
t
i
d
e
t
i
m
i
l
is
th
independently
like
basis
of the
for pricing
compact
the Volkswagen.
will necessarily
the
economy
but the price
The
be the competitor's
car,
of the
governor
price.
in any
case,
competitive
in the
This
competitive
argument
will not
car,
for
market
by
counterargument to the katzenbach
re joint venture-economy car
argument
that the compact
economy
car.
The
second
letter
page
is in the
same
argument
competitive
fails
in the face
bracket
7
as the
of the invalidity
of the first argument.
34
compete
The
third argument
with the U.S.
English Ford
company
cars
are built primarily
Their
sales
in the U.S.
in the first
the Volkswagen.
Volkswagen
wit
overriding
aspect
help
ease
imports
such
as Simca,
- and this will affect decisions
These
(
is that the joint venture
are
Just as GM
be the price
the U.S.
for the European
low in volume.
months
of 1965
leader
The
leader
balance
economy
and the
and output.
and world
market.
chief import
)is
for the U.S.
of the economy
of the joint venture
Opel
out of a total of
is the price
unfavorable
as to price
car would
car
of payments
cars
auto industry,
in the U.S.
idea is that it will
problem.
If the
An
8
page
success
U.S.
a decline
caused
of the joint venture
r
e
h
t
r
u
f
t
i
m
r
e
p
n
a
h
t
rather
imports
.
S
.
U
e
th
t
i
f
e
n
e
b
d
l
it wou
foreign built imports,
company
in Volkswagen
of the balance
aggravation
and
economy
of payments
problem.
Mr.
4.
would
manufacturers
car
n
a
c
i
r
e
m
A
e
h
t
t
a
h
t
y
t
i
l
any possibi
remove
come
with one
to compete
another
in the economy
field."
Section
the effect of the
Moreover,
competition,
but there
competition
The
company
t
a
h
t
y
t
i
l
i
b
i
s
s
o
p
e
h
t
not outlaw
decreased--it
acquisition
must
outlaws
best objective
of lessening
in
of
the public.
criteria
available
d
e
t
c
a
r
t
o
r
p
e
h
t
d
n
a
without deciding
the probability.
e
s
a
e
r
c
e
d
a
t
s
u
j
t
o
n
e
b
e
e
r
g
e
d
l
a
i
t
n
a
t
s
b
u
s
a
must be
so as to injure
statements
the problem
does
7, however,
y
l
l
a
i
t
n
a
t
s
b
u
s
e
b
will
competition
the
Katzenbach's
would
the joint venture
of
n
o
i
t
a
m
r
o
f
"
t
a
h
t
is
next argument
to enter
study
at this moment
each
the market
company
at issue.
are the
has
given
These
letter
h
c
a
b
n
e
z
t
a
k
e
th
to
t
n
e
m
u
g
r
a
r
e
count
r
ca
y
m
o
n
o
c
e
e
r
u
t
n
e
v
t
in
re jo
criteria
show
that the probability
Mr.
Henry
economy
a, @
NA
News
Ford II,
car.
the
entering
of any of the companies
l.
ni
y
ll
ua
rt
vi
is
ly
al
du
vi
indi
small car market
In U.S.
9
page
The
What
and World Report,
in an interview
questions
is your
replied to a query
and answers
feeling
were
about the
1963,
19,
August
concerning
the
as follows:
small
car?
e
'r
we
d
an
,
er
rg
la
g
in
tt
ge
l
al
The smaller cars are
.
t
n
e
m
o
m
e
th
at
ll
wi
u
yo
if
r,
selling more car per ca
,
n
o
c
l
a
F
a
th
wi
t
ou
t
ar
st
Here we
let's say,
in 1959,
d
an
s
or
ri
te
in
e
l
p
m
i
s
,
ne
gi
en
with a 144-cubic-inch
,
s
e
l
o
s
n
o
c
s,
at
se
t
e
k
c
u
b
t
n
a
w
Now people
nothing else.
a
me
ti
e
th
by
So
.
g
n
i
h
t
y
r
V-8s, power steering-eve
fellow buys
paid,
a compact with all these
basically,
what
he would
have
extras,
paid for a
he's
y
m
o
n
o
c
e
r
fo
st
ju
it
g
n
i
y
He's not bu
bigger car.
to
er
si
ea
's
it
e
s
u
a
c
e
b
it
purposes; he's buying
drive in traffic
and easier
to park.
nO
nA
y
n
a
m
r
e
G
in
r
ca
a
e
k
a
m
We
It's a limited demand.
to
d
e
n
n
a
l
p
d
ha
we
h
c
i
h
w
called the Taunus '2-M!'
make
in the United States
under
the code
name
erg
la
a
t
no
s
wa
e
er
th
ICardinal.! We decided
enough market for it.
t,
bu
e,
ic
pr
w
lo
a
at
it
ll
se
to
We had hoped to be able
't
dn
ul
co
we
s,
on
ti
va
no
in
because of its mechanical
't
dn
di
st
ju
we
d
An
.
ed
nt
wa
we
price it as low as
of
nd
ki
at
th
r
fo
d
n
a
m
e
d
think there was enough
.
is
e
er
th
k
in
th
t
n'
do
l
il
I st
transportation.
letter
counterargument to the katzenbach
re joint venture-economy car
eG
demand
'Q
"A
st
la
rs
ca
0
00
0,
20
t
ou
ab
ld
so
en
ag
Well, Volksw
e
et
mp
co
to
d
te
ar
st
we
if
t,
Bu
year in this country.
d
an
in,
go
d
ul
wo
rs
to
Mo
l
ra
ne
Ge
with it, then
t
ar
st
we
me
ti
e
th
by
d
an
,
er
sl
ry
Ch
probably
comparable
/
the Volkswagen?
say,
to,
10
for a car that is
You mean not enough
,
ze
si
is
th
of
et
rk
ma
a
in
ft
le
is
at
wh
divvying up
ON.
there's nothing there."
|
Mr.
1965,
On July 1,
Arjay
y,
an
mp
Co
r
to
Mo
rd
Fo
of
t
en
Presid
Miller,
inquiry
Bingham's
in reply to Congressman
stated
page
concerning
the
economy
Car,
letter:
in his
e
th
in
n
io
at
er
id
ns
co
ed
nd
te
ex
y
"Ford gave this possibilit
ns
io
it
nd
co
et
rk
ma
at
th
,
62
19
early 1960's but decided in
were
a
not ripe
for
manufacture
domestic
and
sale
of such
Car.
.
on
si
ci
de
r
ou
d
ie
if
st
ju
ve
ha
"Subsequent market trends
r
ei
th
d
e
s
s
e
r
p
x
e
y
rl
ea
cl
ve
ha
American car buyers
e
m
u
l
o
v
e
Th
.
on
ti
ta
or
sp
an
tr
preference for less austere
r
ei
th
r
fo
e
bl
ta
no
en
be
ve
markets of recent years ha
e
th
d
an
s
em
it
ry
xu
lu
e
r
swing toward more options, mo
to
d
e
s
o
p
p
o
as
d
el
fi
d
e
c
i
r
p
m
u
recovery of the medi
compact
cars.
e
l
b
a
e
z
i
s
a
ve
ha
s
e
l
i
b
o
m
o
t
u
a
y
m
o
n
o
c
e
l
l
a
m
s
at
th
Tt is true
e
ar
rs
ca
d
e
t
r
o
p
m
i
at
th
d
an
es
at
following in the United St
.
59
19
e
nc
si
st
lo
ve
ha
ey
th
d
n
gaining back some of the grou
y
l
l
u
f
s
s
e
c
c
u
s
d
an
ly
ct
re
di
s
e
t
e
p
m
o
c
h
c
i
h
w
,
d
r
o
F
h
s
i
l
g
n
E
The
is
th
in
e
bl
la
ai
av
is
,
s
a
e
s
with other foreign makes over
e
l
c
i
h
e
v
n
o
i
t
a
t
r
o
p
s
n
a
r
t
c
si
ba
a
r
e
f
e
r
p
o
h
w
s
r
e
y
u
b
r
fo
y
r
t
n
cou
built to Ford's
relatively
time
a
small
it would
similar
car
high quality standards.
segment
not appear
over
here
of the U.S.
to be
as
However,
market
economical
well.
this is a
and at this
to manufacture
letter
counterargument to the katzenbach
re joint venture-economy car
the years,
Over
has
Motor Company
Ford
little reason
Mr.
Miller's
Mr.
Bingham
the
we will be prepared
to believe
in buyers’
not responded
The
more
the demand."
in economy
car
to the demand
last paragraph
the
sales,
and there
quoted
above
seems
from
like a statement designed to get
of any intention to enter
"off his back" than an expression
field.
There
future
economy
is,
car
moreover,
sales
to feel that the demand
one company
And
growth
despite
it will.
letter sounds
to meet
ll
market
alert to U.S.
If there are significant changes
conditions,
tastes,
remain
of course,
shall,
'We
page
reason
no
will grow
justifies
enough
their meeting
will hesitate if it feels
that is the nub
high
to believe
of the problem.
the others
that in the
to cause
U.S.
it - especially
will also
foreseeable
auto
firms
as long
as
enter the field.
counterargument to the katzenbach
re joint venture-economy car
In the interview
with Mr.
letter
Ford
page
quoted
he
above,
stated
12
specifically:
"But if we started to compete with it (Volkswagen)
then General Motors would go in and probably
Chrysler, and by the time we start divvying up
what is left in a market of this size, there's
nothing there."
This
Chesebrough
is reinforced
of Chrysler
by the letter dated
Corporation
to Mr.
July
1965
7,
Bingham,
from
Mr.
in which he stated:
er
ur
ct
fa
nu
ma
an
ic
er
Am
one
if
t
tha
n
ai
rt
ce
s
em
se
'Tt
should successfully penetrate that portion of the
market,
the
others
would
soon
follow
suit.
In this
n
gai
to
pe
ho
d
ul
co
y
an
mp
co
an
ic
er
Am
one
no
t
en
ev
the necessary volume to justify the substantial
,
se
ur
co
Of
.
et
rk
ma
the
r
te
en
to
ed
ir
qu
re
nt
me
st
inve
if the subcompact market should reach more sizeable proportions and demonstrate a potential for
even further growth, we would re-examine our
But on the basis of present evidence the
position.
market potential for subcompacts in this country,
an
ic
er
Am
the
ll
byé
ed
ar
sh
is
it
if
ly
ar
ul
ic
rt
pa
t
cos
the
y
tif
jus
not
l
wil
s,
er
ur
ct
fa
nu
ma
le
automobi
of a single company designing and tooling for such
a cars,’
The AMC
U.S.
firms
simply
reply to Mr.
will not enter
Bingham
the
also
economy
strengthened
car market
the notion that
individually.
letter
counterargument to the katzenbach
re joint venture-economy car
Mr.
page
13
noted in his letter:
Abernethy
"American Motors has been more deeply involved
y.
an
mp
co
S.
U.
any
n
tha
e
siz
car
of
in the matter
car
t
ac
mp
co
st
fir
the
r
le
mb
Ra
s
wa
Not only
l
al
er
ov
d
ce
du
re
h
ic
wh
on
ti
lu
vo
re
the
d
ke
ar
sp
we
ed
uc
od
tr
in
o
als
we
but
y
tr
un
co
s
thi
in
car size
ck
ba
ss
cla
en
ag
sw
lk
Vo
the
in
car
a
ed
et
rk
ma
and
iec
sp
our
to
de
ma
,
an
it
ol
op
tr
Me
e
Th
in 1954.
ed
ic
pr
wlo
a
s
wa
d,
an
gl
En
in
in
st
Au
by
s
fication
.
es
ch
in
2
1/
914
of
th
ng
le
l
al
er
ov
an
h
small car wit
s
wa
et
rk
ma
e
th
at
th
s
wa
r,
ve
we
ho
m,
"The proble
m
ra
og
pr
r
ca
lal
sm
is
th
ep
ke
to
gh
ou
en
just not great
e
th
of
e
ar
sh
od
go
a
ed
er
st
gi
re
we
e
Whil
going.
gh
ou
en
e
rg
la
t
no
s
wa
it
,
et
rk
ma
r
ca
lal
total sm
is
th
d
pe
op
dr
we
d
an
,
an
it
ol
op
tr
Me
e
to sustain th
car in’ 1962. "
Having
imported
from
once
a bad
had
England,
the chances
competition by manufacturing
The
<7
entry
Such
for American
business,
will re-en
that AMC
it in the U.S.
improbable
to exit,
producers
a fact which
is nothing
companies
we
in any event.
the
in promoting
are
more
might
car
field of
foreclose
the
man.
the trend has
not enter the American
regret.
ter this
a straw
than
Indeed,
economy
indeed.
remoted
contention that this joint venture
of new American
entry is most
experience
been
auto manufacturing
counterargument to the katzenbach
re joint venture-economy car
6.
Penn-Olin
The
Chemical
of a joint venture
that there
been
holding
competition,
as
have
one
case
The
seeming
would
whereas
emphasizes
probability
of the
that if the
companies
Pertinent
that a joint venture
second
Court
decision
could
of the Clayton Act,
relevant
the point that formation
market
joint venture
involved
lessen
if either
alone,
while
was
that,
mean
was
only one new
might
have
substantially
implication
it there
would
argument
- "waiting
there
had not
to the instant
competitor
without
in the
the Clayton Act only if it can be demonstrated
or more
entered the
a joint venture
market,
violates
in wolation
a potential
putit.
Company
page
District
the field independently.
the Court
might
U.S.
is a reasonable
undertaken
entered
recent
letter
of its parents
the other
in the wings"
in that case,
eventually
is
as the Court
formation
competitor
have
continued
ina
been two.
of
14
counterargument to the katzenbach
re joint venture-economy car
However,
the
Court's
of such a thing happening
possibility.
The
page
ruling made
must
Court found
letter
it clear that the probability
be demonstrated--not
merely
its
that:
"The government was unable to sustain its burden
of establishing by a preponderance of the evidence
that either party to a joint venture would have,
but for the joint venture, entered the market
occupied by the joint venture, in view of evidence
of the unprofitability of an independent operation
by either party, financing problems and existing
Accordingly,
competition in the relevant market.
the joint venture did not violate Section 7 of the
Clayton Act under the rule that joint venture
would be unlawful if either of the parties would
have entered the market while the other remained
as a significant potential competitor."
Considering
Court
the probability
said with respect
with respect to each
company,
to Olin:
''The Government has failed to sustain its burden
of establishing by a preponderance of the evidence
that,
have
have
if Penn-Olin
had
not been
formed,
there
would
been a reasonable probability that Olin would
constructed a chlorate plant in the Southeast, "'
™
.
the
15
counterargument
to the katzenbach
re joint venture-economy
With respect
declaring
letter
car
to Pennsalt,
that evidence
the
page 16
Court was
even
clearer
of a possibility of such a happening
in
was
not enough.
It said:
"It is,
of course,
possible
that
if there
had
been
no
joint venture Pennsalt alone would have constructed
a facility in the Southeast for the manufacture of
chlorate alone or in combination with perchlorate.
Anything is possible.
But, if the record is to be
the criterion, it is unlikely that this would have
occurred.
'The Government has failed to sustain its burden of
establishing by a preponderance of the evidence that,
but for the joint venture, Pennsalt as a matter of
reasonable probability would have individually
entered the Southeastern chlorate market."
The
"reasonable
economy
situation in the
probability"
U.S.
car
in the
7.
Finally,
to increase
U.S.
auto industry
that any individual firm will produce
to compete
the net result
not decrease
is such that there
is no
an
with the imports.
of the proposed
competition.
in the economy car field.
It sets the tone and practice
monopolyf
Volkswagen
of the field.
joint venture
now
enjoys
will be
a virtual
If the joint venture
letter
counterargument to the katzenbach
re joint venture-economy car
car
were
Volkswagen
advantage
and
In view
here
concerning
enable
may
the American
than injury)
(rather
of this
Mr.
political
largely
decision
as
a result
recent
And
rather
court
public
his
competitor
decision,
Katzenbach's
competition.
comment
is
made
to special legislation to
Such legislation
that would
than a legal interpretation,
of Mr.
no
objections.
if it should be needed,
for
could not help but reap
of such newborn
objections
to overcome
out of the purview
opeiu4zaf 1l-cio
2-19-66
most
be a major
consuming
Katzenbach's
the joint venture
not be needed.
would
there
to be produced,
page
then be a
and takes
office.
the matter
17
ete hieem ates yi iit A
nem
eecepreb
f
hae
ee a etnn ae cena
eRe
a Ne
er
RN
NR
TN
\
{
}
j
i
shy PR
gt
CR as ats BlAER
BR
wishes
+:
enim
TIE IRON
te OID
for you.
4
SNE
pelea ee fmt Slaten
6 (966
2
Se eh
to
eo
best
the enclosed
pleasure
neh tas e-store 2 ncaa
tial a, Saipan
With
the President's
5
J Space
ante ope
WASHINGTON
acti Dl
autograph
HOUSE
5 te ca
si in s: sla
It was
WHITE
.
THE
|i
i
i
photograph
ersonal Secretary
to the President
—
a
i
ld
ar
DLA
ROOD
eeene ett NL
May 27,
1966
Miss Junaita D. Roberts
Personal Secretary to the President
The
White
Washington,
Dear
Miss
graphs
House
D.
C.
Roberts:
~
topho
d
he
ap
gr
to
au
the
ing
hav
s
te
ia
ec
pr
ap
r
he
ut
Re
Mr.
you recently sent, and he asked me to thank you for sending
them.
Sincerely yours,
osiu 42
(Mrs.)
.
Otha Brown, Secretary to
Reuther
P.
Walter
THE
WHITE
HOUSE
WASHINGTON
1965
2,
June
©
Mr. Walter Reuther
President
United Auto Workers
Solidarity House
8000 East Jefferson
Detroit 1), Michigan
~Dear
Mr.
Avenue
Reuther:
Thank you for the two publications you sent to me
found them both interesting and effective in their use
It was
visit here.
a pleasure
Thank you
meeting and talking with
egain for your kindness.
you
last week.
I have
of photography.
during
your
Sincerely,
ae.
Staff Assistant
last
THE
WHITE
HOUSE
WASHINGTON
/
rsonal Secretary
to the President
196
eet
aor
‘
:
Wccd oie ald otslaliasias
A ee
ee ee ee ee
STRAIGHT WIRE
July 21,
President Lyndon B.
The White House
Washington, D. C.
Johnson
I wire
from
their
jobs
you,
consideration
displaced
of large
scale
Number
Two
Congress,
serving
be liberally
Motors
workers
Agreement
is not the primary
laid off because
objective
of the
operation
the employer
displacement
of their
to factors
other
employers,
evidence
is set whereby
factor
that large
and workers’
no benefits
statements
than the Act,
unattainable as under the Trade
that
may
We
under
were
assured
assistance
Now,
Body
the
to
in the face
Plant
Board,
accept
made
a self-
of the
in the layoffs;
numbers
of workers
of the Act.
self-serving
through
at Fisher
displaced
of 1965.
effect that the operation
to the
Trade
clear,
construed.
and treasury
Motors
the
support.
understand
we
commerce
of labor,
Act
that the adjustment
Michigan,
Rapids,
If the precedent
mercy
its full
of General
notwithstanding
where
gave
Trade
members
Trade Act of 1965 was
statement
Automotive
were
would
of General
in Grand
up of representatives
UAW
of UAW
Products
Products
representatives
provisions
layoffs
in behalf
of the Automotive
of Labor
workers
President,
the Automotive
by the
by Department
Mr.
because
When
1966
workers
benefits
Expan§ion Act.
will be paid in a case
attributes
will be
under
the
completely
at the
this bill will be as
President
Lyndon
B.
Johnson
Obviously,
workers
made,
cannot make
but a liberal
evidence
compel
crucial
UAW
days
leadership
without
same
the
case
of the Act
of eligibility
I need not tell you
of Congressional
Jay
cooperation
airtight
construction
a finding
I know
the
the
-2-
of the
as might
employer,
otherwise
and a sympathetic
at Grand
of the
1966
the displaced
have
view
been
of the
Rapids.
strong
consideration,
nor
position the UAW
of the many
took in
assurances
gave to its membership.
I earnestly
hope
that you will take
a personal
interest
CaSe€.
Walter
SIS:vhec
oeiu 42
Z1,.
P.
Reuther
in this
WASHINGTON
/\
4,
August
(
Dear
HOUSE
WHITE
THE
ay
1966
Walter:
r
fo
u
yo
k
an
th
to
me
d
ke
as
s
ha
t
The Presiden
e
th
ge
ur
u
yo
h
ic
wh
in
,
29
ly
Ju
of
your telegram
al
on
ti
Na
e
th
to
n
w
o
r
B
ld
ra
Ge
of
reappointment
Labor Relations Board.
is
th
on
s
ew
vi
ur
yo
ve
ha
to
ad
gl
The President is
er
tt
ma
is
th
at
th
u
yo
re
su
as
n
appointment, and I ca
y.
ll
fu
re
ca
ry
ve
d
he
ig
we
be
ll
wi
The
President
sends
best
his
wishes,
Sincerely,
Johr’W.
Walter
Honorable
President
United
8000
E.
Detroit,
Auto
P.
Reuther
Workers
Jefferson
Michigan
Avenue
Macy,
Jr.
WES’
WESTERN
UNION
TELEGRAM
|
WESTERN
UNION
TELEGRAM
NION
WUAQQ1 SSE187 DE WWyY078
WWZ1 GOVT NL PD
:
WUX THE WHITE HOUSE WASHINGTON Dc 24
WALTER P REUTHER, PRES, UNITED AUTOMOBILE AEROSPACE
AND AGRICULTURAL IMPLEMENT WORKERS OF AMERICA INTL UNION,
DONT DWR
|
8000 E JEFFERSON AVE DET
|
THE PRESIDENT HOPES YOU CAN JOIN HIM FOR AN EXCHANGE OF
VIEWS AND AN INFORMAL DINNER AT THE WHITE HOUSE ON WEDNESDAY,
AUGUST 31, 1966, AT 8:00 P. Me DRESS: BUSINESS —
:
‘SUIT PLEASE PRESENT THIS TELEGRAM AT THE SOUTHWEST GATE.
BOWE
060:
THE SOCIAL SECRETARY THE WHITE HOUSE.
827A
EST AUG 25 66
THE
WHITE
HOUSE
WASHINGTON
September 6,
Dear
The
the
1966
Walter:
City of
Bishop,
Pittsburgh has an Annual
and each year they honor
Labor Day Mass,
some individual
presided over by
who has done the
most for Labor during the previous year.
Yesterday, Mr. I. W.
President of the United Steelworkers of America was honored.
John
Bishop
J.
one
Wright,
of
the
most
powerful
leaders
the
Governor
of
Church, who has performed a very important
Council in Rome, made what I believe to be
speech that has been made by any churchman
he
be
does
in
elected,
the
to
speech
call
is
call
upon
a "statewide
of
the
Abel,
Catholic
role in the current Eccumenical
the most powerful civil rights
In substance, what
in America.
Pennsylvania,
Conference
Governor's
on
Civil
next
Rights,
to
carefully
Equal Opportunities and Social Justice, with well-ordered,
prepared assemblies in all the principal metropolitan areas of the State
for the convenient and effective rallying of public opinion in support
He proposes that this Governor's
of the Conference conclusions.”
Conference be modeled after the recent White House Conference "To Fulfill
These
Rights.”
I am anxious that you read this speech and
menting him and thanking him for his help.
to.us in the civil rights movement.
With
kind
regards,
I am
Very
Mr. Walter Reuther, President
United Automobile Workers of America,
8000 Fast Jefferson
Detroit, Michigan
Enclosure
write to
He will
truly
yours,
AFL-CIO
Bishop Wright
be a tower of
complistrength
september
STATEMENT
most
of
UAW
their
their
BY
THE
UAW INTERNATIONAL
ON INFLATION
EXECUTIVE
Cost-of-living wage adjustments under UAW
members a substantial degree of protection
buying
families
power
are
by
deeply
inflation.
concerned
To minimize the danger of
International Executive Board calls
istration
to:
Nevertheless,
with rising
9,
1966
BOARD
contracts afford
against erosion
UAW
living
members:
costs.
and
further price increases,
the UAW
upon: the Congress and the Admin-
1.
Spotlight for the information of the public the facts
"as to: important cases of corporate price-profiteering
in order to
Create a climate of public opinion which would persuade corporations
both to refrain from increasing prices unjustifiably and to reduce
existing prices which are excessive.
The automotive corporations
should be among the first targets for such action.
legislation
deposits.
the economy
accelerated
by
2.
Reduce present extortionate interest rates through
which would set a ceiling on interest rates on all time
3.
Curb the dangerous investment boom that is unbalancing
by suspending both the 7 percent investment tax credit and
depreciation. on commercial and industrial construction and
increasing
the
tax
rate
on
corporate
profits.
4,
Press on toward full employment
by diverting the resources
and by making use of other
now going into excessive investment,
resources that still remain idle,
to step up the war on poverty and
to meet urgent national needs in such fields as education,
health,
:
housing and renewal of our cities.
Inflation inflicts serious hardships on pensioners and
the
It penalizes the unemployed,
others with low and fixed incomes.
poor and the nation as a whole because it inhibits government action
to reduce unemployment,
to intensify the war on poverty and to improve
.
the quality of life in America.
|
Moreover, misguided efforts to prevent inflation threaten
and even to
thus increasing unemployment,
to slow economic growth,
High interest rates and tight money,
plunge the nation into recession.
have already created a depression
touted as anti-inflationary weapons,
in the housing industry and have contributed to the decline in sales
of
automobiles.
It is important that the causes of recent rapid increases
in prices be clearly understood so that effective policies may be
applied to prevent further increases.
Mine Nation is surfering primarily
inflation. This is indisputably clear from
from a profit and interest
the following facts:
wages,
making
years
Unit labor costs in manufacturing (the cost of. the
-in
ed
olv
inv
es
tax
t
men
loy
emp
and
ts,
efi
ben
nge
fri
es,
ari
sal
are now lower than in the
the average manufactured product)
and
1957-59,
in
July
of
0.1
were only
1966
percent
higher
than.
for
not
if
se
rea
dec
a
n
bee
e
hav
ly
ual
act
ld
wou
ere
(Th
5.
196
y
Jul
in
In
r.)
yea
s
thi
of
ing
inn
beg
the
at
es
tax
ty
uri
Sec
ial
Soc
the rise in
ts
efi
ben
nge
fri
and
es
ari
sal
es,
wag
in
ns
gai
the
all
other words,
ir
the
by
for
d
pai
n
tha
e
mor
n
bee
e
hav
9
7-5
195
ce
sin
s
ker
wor
made by
es
vic
ser
and
ds
goo
l
ona
iti
add
the
of
ue
val
The
.
ity
increased productiv
n
tha
r
ate
gre
is
e
duc
pro
to
s
ker
wor
s
ble
ena
y
log
hno
tec
ing
anc
adv
that
the cost of their gains.
9
-5
57
19
the
an
th
r
we
lo
e
wer
s
st
co
r
bo
la
t
uni
Although
-a
er
gh
hi
t
en
rc
pe
6.0
e
wer
s
od
go
ed
ur
ct
fa
nu
ma
of
es
ic
pr
e
level, wholesal
9
-5
57
19
od
ri
pe
e
th
h
Wit
.
od
ri
pe
9
-5
57
19
the
in
e
wer
y
in July than the
nu
ma
in
s
st
co
r
bo
la
t
uni
to
es
ic
pr
e
al
es
ol
as 100, the ratio of wh
d
he
ac
re
el
lev
t
es
gh
hi
the
-6
196
y
Jul
in
.9
106
facturing industry was
nu
Ma
.
War
an
re
Ko
the
by
off
set
n
io
at
fl
in
e
iv
since the speculat
r
ei
th
e
is
ra
to
ng
ui
in
nt
co
are
and
ed
is
ra
e
hav
ns
io
at
or
rp
facturing co
e
hav
es
ic
Pr
g.
in
ll
fa
n
bee
ve
ha
s
st
co
r
bo
la
r
ei
th
gh
ou
prices even th
.
s.
it
of
pr
se
ea
cr
in
to
but
s
st
co
er
gh
hi
t
mee
to
been raised not
While labor costs per unit of goods produced in manu-~.
t
uni
per
ons
ati
por
cor
g
in
ur
ct
fa
nu
ma
of
s
fit
pro
,
len
fal
e
facturing hav
©
in
es
tax
er
aft
t
cen
per
3
28.
and
es
tax
increased 19.5 percent before
s
it
of
pr
in
e
ris
the
and
-od
ri
pe
9
-5
57
19
1965 as compared to the
has continued into 1968...
of
od
ri
pe
k
pea
the
-0
196
of
r
te
ar
qu
nd
co
se
the
m
Fro
-r
te
ar
qu
nd
co
se
the
to
-n
io
ss
ce
re
t
las
the
re
fo
be
ty
economic activi
m
fro
me
co
in
n
ee
tw
be
ng
pi
lo
ve
de
n
bee
has
gap
t
of this year, a grea
ts
fi
ne
be
ge
in
fr
and
es
ri
la
sa
s,
ge
Wa
.
ty
er
op
pr
m
fro
me
work and inco
e
il
wh
t,
en
rc
pe
7
41.
e
ros
y
om
on
ec
e
at
iv
pr
the
in
of all employees
t
en
rc
pe
2
75.
and
es
tax
re
fo
be
t
en
rc
pe
0
60.
e
ros
s
corporation profit
g
in
go
me
co
in
st
re
te
in
and
t,
en
rc
pe
3
56.
e
ros
s
nd
de
after taxes, divi
t.
en
rc
pe
5
81.
e
ros
s)
al
du
vi
di
in
y
th
al
we
to
it
of
st
(mo
s
to individual
real employee compensation per manhour
Ever since 1956,
-:
the
for
ts
efi
ben
nge
fri
and
es
ari
sal
es,
wag
of
(the buying power
g
gin
lag
n
bee
has
y
nom
eco
e
vat
pri
al
tot
in the
average hour worked)
per
ed
duc
pro
es
vic
ser
and
ds
goo
of
ue
val
e
(th
behind productivity
m
fro
ur
ho
per
ion
sat
pen
com
ee
loy
emp
l
rea
in
se
rea
inc
The
manhour).
in
se
rea
inc
t
cen
per
4
34.
a
to
ed
par
com
t
cen
per
1956 to 1965 was 24.5
re
sha
ir
the
ten
got
not
e
hav
ds,
wor
er
oth
in
s,
ker
Wor
‘productivity.
of
ts
fi
ne
be
The
.
ity
tiv
duc
pro
sed
rea
inc
ir
of the fruits of the
_
aor
rp
co
to
ly
te
na
io
rt
po
ro
sp
di
e
gon
d
tea
ins
e
hav
rising productivity
.
nds
ide
div
sed
rea
inc
in
rs
de
ol
kh
oc
st
to
and
s
fit
tions in higher pro
y
or
ct
fa
ar
ll
co
e
blu
e
ag
er
av
the
of
r
we
po
The buying
-|
_
6
196
y
Jul
in
r
we
lo
ly
al
tu
ac
was
s,
xe
ta
r
te
af
worker's weekly wage,
r,
we
po
ng
yi
bu
9
-5
57
19
of
s
ar
ll
do
In
r.
yea
t
las
h
nt
mo
than in the same
the
a
figures
decrease
are
of
$87.00
$0.42
per
for
July
week,
1966
for
a
compared
worker
with
to
$87.42
three
in
July
dependents.
1965,
d
an
e
g
a
w
of
r
e
w
o
p
g
n
i
y
u
b
g
n
i
g
g
a
l
d
an
s
t
i
f
o
r
Soaring p
-|
y
t
i
l
i
b
a
t
s
e
th
s
n
e
t
a
e
r
h
t
t
a
h
t
e
c
n
a
l
a
b
m
i
an
d
e
t
a
e
r
salary earners have c
d
an
y
h
t
l
a
e
h
n
u
an
to
d
le
e
v
a
h
s
t
i
f
o
r
p
d
e
t
a
l
f
n
I
.
‘of the economy
,
s
e
s
a
e
r
c
n
i
e
c
i
r
p
r
o
f
t
n
e
m
t
s
u
j
d
a
r
e
t
f
A
.
m
o
o
b
t
n
e
m
t
unsustainable inves
e
g
a
r
e
v
a
an
at
d
e
s
a
e
r
c
n
i
g
n
i
s
u
o
h
n
a
h
t
r
e
h
t
o
s
e
s
o
p
r
u
investment for p
,
6
6
9
1
,
30
e
n
u
J
g
n
i
d
n
e
s
r
a
e
y
o
tw
e
th
g
n
i
r
u
d
r
a
e
y
rate of 12.3 percent a
l
a
n
o
i
t
a
N
s
s
o
r
G
in
d
e
t
c
e
l
f
e
r
as
,
y
m
o
n
o
c
e
e
l
o
h
w
while the growth of the
t
n
e
m
t
s
e
v
n
i
of
e
c
a
p
e
th
d
an
-~
t
n
e
c
r
e
p
5
5.
of
e
Product, was at the rat
o
t
n
i
y
l
l
u
f
s
e
m
o
c
t
n
e
m
t
s
e
v
n
i
w
ne
e
th
n
e
h
W
.
g
n
i
t
a
ds still acceler
t
no
e
ar
s
p
e
t
s
if
s
r
e
m
o
t
s
u
c
of
e
g
a
t
r
o
h
s
a
t
n
o
it will confr
operation,
s
r
e
m
u
s
n
o
c
r
e
h
t
o
d
n
a
s
r
e
k
r
o
w
of
r
e
w
o
p
g
n
i
y
u
b
e
th
e
s
i
a
r
to
e
m
i
t
in
n
e
tak
—
n
e
e
w
t
e
b
e
c
n
a
l
a
b
m
i
r
a
l
i
m
i
s
A
.
s
e
c
i
r
p
g
n
i
c
u
d
e
r
d
an
s
e
g
a
w
g
n
i
s
i
a
r
by
8
5
7
5
9
1
e
th
to
d
le
s
e
m
o
c
n
i
r
e
m
u
s
n
o
c
g
n
i
g
g
a
l
d
booming investment an
recession..
of
rt
pa
f
of
d
e
n
o
h
p
i
s
so
al
ve
ha
s
e
t
a
r
t
s
e
r
e
t
n
i
Rising
-ve
ha
,
n
o
i
t
i
d
d
a
in
d,
an
y
t
i
v
i
t
c
u
d
o
r
p
r
e
k
r
o
w
d
e
s
a
e
the gains from incr
e
g
a
r
e
v
a
e
th
,
66
19
ly
Ju
to
65
19
ly
Ju
m
o
r
F
.
s
t
s
o
c
added to living
r=
pe
45
6.
;
to
.
44
5.
om
fr
d
e
s
a
e
r
c
n
i
s
e
g
a
g
t
r
o
m
me
ho
w
interest rate on FHA ne
.
st
co
t
s
e
r
e
t
n
i
e
th
to
0
70
$2
ds
ad
is
Th
.
t
n
e
c
r
e
p
cent -- a rise of 18.6
s
te
ra
t
s
e
r
e
t
n
i
e
m
i
r
P
.
s
r
a
e
y
25
er
ov
e
l
b
a
y
a
p
e
g
a
g
t
r
o
m
of a $15,000
n
e
s
i
r
ve
ha
s
r
e
m
o
t
s
u
c
d
e
r
o
v
a
f
st
mo
r
i
e
h
t
to
s
k
n
a
charged by the b
,
s
e
t
a
r
r
e
h
t
o
s
t
c
e
f
f
a
te
ra
e
m
i
r
p
e
Th
.
s
h
t
n
o
m
ne
ni
33-1/3 percent in
r
e
h
t
o
as
ll
we
as
s
e
s
a
h
c
r
u
p
t
n
e
m
l
l
a
t
s
n
i
of
st
co
t
s
e
r
e
t
increasing the in
so
al
y
e
n
o
m
t
h
g
i
t
d
an
s
te
ra
t
s
e
r
e
t
n
i
gh
Hi
.
t
i
d
forms of consumer cre
of
s
d
r
a
o
b
d
an
s
t
n
e
m
n
r
e
v
o
g
l
ca
lo
d
an
e
t
a
t
s
r
fo
t
l
u
make it diffic
In
.
s
e
i
t
i
l
i
c
a
f
c
i
l
b
u
p
of
n
o
i
s
n
a
p
x
e
d
e
d
e
e
n
e
c
n
a
n
i
f
education to
mco
g
n
i
l
l
e
p
m
o
c
s
st
co
n
o
i
t
c
u
d
o
r
p
e
s
i
a
r
s
e
t
a
r
‘
t
s
e
r
e
high int
addition,
e
is
ra
to
s
n
i
g
r
a
m
t
i
f
o
r
p
in
th
h
t
i
w
s
e
i
r
t
s
u
d
n
i
e
v
i
t
i
t
pe
.
t
s
i
w
t
r
e
h
t
o
n
a
l
a
r
i
p
s
y
r
a
n
o
i
t
a
l
f
n
i
e
th
g
n
i
v
i
g
us
th
It is true, of
due to scarcities
prices,
their
has been
services
s
e
c
i
r
p
od
fo
in
se
ri
e
that th
me
so
of
s
st
co
at
th
d
an
s
em
it
course,
of some
mainly
tBu
.
s
e
i
r
t
s
u
d
n
i
e
c
i
v
r
e
s
e
th
to
r
a
i
l
u
c
e
p
s
n
o
s
a
e
have increased for r
en
be
ve
ha
d
l
u
o
h
s
d
an
d
l
u
o
c
s
e
c
i
v
r
e
s
d
an
s
od
fo
increased prices for
s
n
o
i
t
a
r
o
p
r
o
c
g
n
i
r
u
t
c
a
f
u
n
a
m
by
d
e
g
r
a
h
c
s
e
c
i
r
p
offset by reductions in
.
y
l
l
a
n
e
m
o
n
e
h
p
g
n
i
s
i
r
en
whose profits have be
|
fronts.
An
on
attack
effective
inflation
}
e
z
i
l
i
b
o
m
st
mu
t
n
e
m
n
r
e
v
The go
s
ct
fa
e
th
se
po
ex
to
l
a
s
o
disp
that
an
informed
and
aroused
be
must
on
mounted
,
several
all the resources at its
about price-profiteering
opinion
public
so
will
.
es
ic
pr
e
v
i
s
s
e
c
x
e
ce
du
re
to
s
n
o
i
t
a
r
o
p
r
o
c
e
d
a
u
pers
ce
du
re
to
s
rt
fo
ef
s
u
o
r
o
g
i
v
r
fo
s
et
rg
ta
g
in
ad
le
Among the
me
so
e
it
sp
De
.
s
n
o
i
t
a
r
o
p
r
o
c
e
v
i
t
o
m
o
t
u
a
e
th
e
prices ar
decrease
reported
first
sales,
in
profits
half
of
to an annual
corporations
on
1966
the
auto
industry
stockholders'
equal
to
Big
Three,
investment
27.2 percent
r
fo
t
n
e
c
r
e
p
3
.
3
1
of
rate
r
e
t
r
a
u
q
t
s
r
i
f
e
th
g
durin
per
combined,
during
year
the.
compared
all manufacturing
of this year (the
|
g
i
B
e
h
T
.
.
)
e
l
b
a
l
i
a
v
a
e
ar
s
e
r
u
g
i
f
h
c
i
h
w
r
fo
d
latest perio
e
c
i
w
t
n
a
h
t
e
r
o
m
e
ar
,
s
d
r
o
w
r
e
h
t
o
in
,
s
e
t
a
r
Three's profit
|
as high as the average for all manufacturing corporations
The profits
at a time when that average is far above normal.
of the Big Three in 1965’ totalled $5,846 million before
or
their profits were $3,062 million,
After taxes,
-taxes.
For every
year.
$608 million higher than in any previous
|
wage and salaried worker employed in all its operations
. throughout the world, Chrysler reported a before-tax profit
and
Ford, $3,581 per employee;
of. $2,689 per employee;
Despite
a staggering $5, 570 per employee.
General Motors
these incredible profits, which clearly call for reductions
are hinting instead
the automotive corporations
in prices,
that they will raise them, using the installation of certain
This would be in direct
safety equipment as their excuse.
conflict with the hope expressed by President Johnson that
the auto industry "build in more safety -- without building
The UAW International Executive Board urges
on more costs."
that a Congressional investigation be undertaken immediately
in an effort not only to head off unjustifiable increases in
car prices but to bring them down to a level reastically in
line with the costs of car production.
The lopsided investment boom that endangers the future
The
stability of the economy must be brought to a halt.
.
UAW International Executive Board therefore supports
President Johnson's recommendation to suspend the investment
The 7 percent investment
credit and accelerated depreciation.
tax credit, enacted to encourage investment in machinery and
equipment, has no.-place in an economy where investment is
Neither is there any
running at clearly excessive levels.
place for accelerated depreciation designed to encourage
industrial and commercial construction.
should
being
be
used
made
to
less
finance
easily
rate on corporate profits.
restored to the 52 percent
reductions
of
1964.
the
available
by
boom
investment
exaggerated
increasing
it
At the very least,
level in effect before
tax
the
should be
the tax
At the same time, we must not relax either in our pursuit
of full employment or in our efforts to meet urgent national
in
Curbing the investment boom will free resources
needs.
that can be diverted to other
and materials
machines
men,
There are additional resources that remain idle
purposes.
even after 54 years of recovery from the last recession.
and
These resources can and should be used to accelerate
intensify
in
such
the war on poverty,
fields
as
education,
and
health
to help
So
housing and urban redevelopment.
men idle and national needs unmet we
to employ the men to meet the needs.
care
fill social
and
deficits
facilities,
long as there
must spare no
are still
effort
As a first
Action must be taken to reduce interest rates.
step in this direction, the UAW International Executive Board
“urges the Senate to reject the meaningless bill adopted by
i
Funds
»/
‘the
will
House
impose
deposits.
The
on September8
rising
a
4
percent
price trend
and
to
interest
must
be
substitute
rate
halted.
legislation
ceiling
on
all
But we must
that-
time
not
repeat the tragic mistakes of the Eisenhower years when restrictions
on government spending and tight money finally bought price stability
at the cost of high unemployment,
retarded economic growth and repeated recessions.
The victims of such misdirected economic policies are
inevitably the poorest and most vulnerable of the nation's population -members of minority groups, displaced older workers,
and those with
|
limited education.
A rise of a mere two-tenths of a percentage point
in the general unemployment rate -- from 3.7 percent in April of this
year to 3.9 percent in August -- was accompanied by increases six
times as great in unemployment rates for Negroes and unskilled blue
collar workers.
To combat inflation with unemployment is to surrender
in the war against poverty and to abandon the struggle for genuine
equality for all Americans.
The attack on inflation must be directed at its sources -- corporate price-profiteering, tight money and usurious interest rates,
and the investment boom.
At the same time, we must press on toward
genuine full employment in fulfillment of the national commitment
proclaimed in the Employment Act of 1946.
opeiu42aflcio:pms
ha
ey
tics.”
state
Lyn-
1° The turnout of the
| AFL-CIO for President
Labor Day
1 don Johnson’s
| speech in Detroit’s Cobo. Hall
| was something less than speci tacular.
i faithful
Hardly
showed
5,000
up,
truckload of ‘‘Welcome,
of
and
the
a
LBJ”’
Reuther, Detroit’s Mayor Jerome
Cavanagh
and_ other
Democrats, the President delivered this lecture:
-“Theres
a lot of legislation
still to get through Congress,
and, Walter, if you could just
forget the labor movement in
Norway
and Russia
long
enough to help out, that would
be fine. You fellows better get
off your seats and work, because if they elect a Republi-
years,
and
Wal-
ter, you'll be in Norway, but
Jerry (digging Mayor Cavanagh in the ribs with his elbow) you won’t get that tril-
lion dollars for Detroit.”
The
President,
a witness
present said, was visibly miffed at the light turnout of Democratic faithful in Detroit. He
was ovleased in the Battle
Creek
taling
area where
almost
crowds
to-
80,000 appeared.
And, President Johnson’s failure to visit the home of con-
valesc:ng
G.
Mennen
Wil-
.
A state
legislator —
a De-
troit Democrat—added a foot- |
note to the Labor Day fiasco |
in Detroit: ‘““‘There were three :
groups who thought they were
|
in charge—the AFL-CIO, the |
Democratic state central committee, and Democratic officeholders. The result was no-
body
got signals
they didn’t
Democratic
to sit on the
the
President.
even
state
straight and
invite
We
the |
legislators
platform
were
:
|
|
with |
sup-
posed to get tickets, but they
never got to us.”
i
é
é
+
|
ee
Ae
fe ie LEDstee
a
| all.
The meager showing did
not escape the eagle eye of
Walter
for two
aetna
tee
td
a
ee
ee
ee
a
*
{ signs never got to the hall at
Workers’ President
gate
1 Ret PO
poli-
| be told about Michigan
it will do nothing but investi-
liams, Democratic Senate candidate, was deliberate.
EBS
| der the heading of ‘‘now it can
in ‘the presidential limousine,
in company with United Auto
of Representatives —
ERE IT
un-
comes
can House
EERE CR
old campaigner Lyndon Johnson. On the way to the airport
Lansing Bureau
DETROIT—This
kad
OE
By BUD VESTAL
i
Pea
| Johnson Upset
c
=
September
Dear
12,
1966
David:
Thank you for your thoughtfulness in sending
me a copy of Bishop Wright's statement on Labor Day
in Pittsburgh.
The good Bishop was expounding sound,
courageous and compassionate doctrine, and I am
much encouraged by the increasing participation by
the Church in the civil rights struggle, for it can add
the decisive new dimensions
itself whole.
to America
Kindest personal regards.
Sincerely,
WPRiob
oeiu 42
Mr.
The
David Lawrence
White House
Washington,
D.
C.
-
to make
THE
WHITE
HOUSE
WASHINGTON
September
Dear
The
6,
1966
Walter:
City
of
Pittsburgh
has
the Bishop, and each year
most for Labor during the
President
of
the
United
an
Annual
Labor
they honor some
previous year.
Steelworkers
of
Day
Mass,
presided
individual
Yesterday,
America
was
who
Mr.
over
by
has done the
I. W. Abel,
honored.
Bishop John J. Wright, one of the most powerful leaders of the Catholic
Church, who has performed a very important role in the current Eccumenical
Council in Rome, made what I believe to be the most powerful civil rights
speech that has been made by any churchman in America.
In substance, what
he does in the speech is call upon the Governor of Pennsylvania, next to
be
elected,
to
call
a “statewide
Governor's
Conference
on
Civil
Rights,
Equal Opportunities and Social Justice, with well-ordered,
carefully
prepared assemblies in all the principal metropolitan areas of the State
for the convenient and effective rallying of public opinion in support
of the
Conference
Conference
These
be
Rights."
conclusions."
modeled
after
the
He
proposes
recent
White
I am anxious that you read this speech and
menting him and thanking him for his help.
to us in the civil rights movement.
With
kind
regards,
House
Mr. Walter Reuther, President
United Automobile Workers of America,
8000 East Jefferson
Detroit, Michigan
truly
this
write to
He will
I am
Very
Enclosure
that
yours,
AFL-CIO
Governor's
Conference
"To
Bishop Wright
be a tower of
Fulfill
complistrength
DRAFT
LETTER
September 13,
lam
«-- WPR
1966
to President Johnson
enclosing for your
inflation adopted by the UAW
inform ation a copy of a statement
International Executive Board on September 9,
and of my letters transmitting the statement to Senator Russell
in his capacity as chairman of the Senate Finance Committee,
Congressman Wilbur D.
Ways
and Means
on
B. Long
and to
Mills in his capacity as chairman of the House
Geinsines.
The staternent and the enclosed letters express strong support
for your recommendations for suspension of the investment tax credit and
of accelerated depreciation on industrial and commercial construction.
We hope Congress will act promptly and favorably on dom
theese
I should like, respectfully,
recommendatio:
to call your attention to the analysis
of the sources of inflation presented in the enclosed statement and, in
particular,
to the need for efforts to prevent the automotive industry from
increasing prices on the new 1967 model cars.
ee ee eT eT Te
Se
eS
ee
Re,
Draft Letter -- WPR to President John
Your legislative recommendations
eT
Ln
eS a
nS
re
Se ee
ee eT
ee
eS ee ee
ee
PE
PC
Page 2
should help to bring about
abatement of the inflationary pressures resulting from excessive business
is
and
dem
re
whe
y
nom
eco
the
of
tor
sec
ant
ort
imp
only
the
-t
men
invest
straining capacity.
UAW
e
th
of
pe
ho
the
is
it
,
ed
ev
li
re
s
re
su
es
pr
With those
International Executive Board,
NW :lt
opeiuéZaficio
Enclosures
expressed in the enclosed statement,
Re
eeeT
ee Sl ee, ae ae
ee ee
=
se
ee
Tee:
Ma
eae
aa
a
a
EE
ee
Ne ee
Nee a
Ne TS ROT
TL ee Tete em
September
Se
EE SMe a Se
14,
ee
ee me ee Senpee e
e
n ES
ee
eS ae
a
ee a
en
a See eee ae E ee ee
1966
The Honorable Lyndon B. Johnson
Washington 25,
Dear Mr.
D.C,
President:
informatio
your
for
lam enclosing
on inflation adopted by the UAW International E: . cuut i
re ase
9, and of my letters transmitti ng
|
2; gressman ‘Wilbur D. Malle inhi
srmmmendations
for su
{ stmen
‘ences
ten: on ‘industrial and commercial conl
act
promptly and teenie
on your
I should like, respectfully, to call your attention to the
analysis of the sources of inflation presented in the enclosed state—_
.otive
in particular,
to the need for efforts to prevent the auto-
industry from increasing prices on the new 1967 model cars.
Te Oe ay EE
eS ee
Stee ST ee
ES
ae Se
en
——
eS
ee
The Honorable
a
ee
adon
Se
ee ee
B.
ee
ee
ee
ee a
a
Johnson
TN
ee
CO
-2~
Your legislative recommendations
statement,
ee
September
14,
from excessive
of the economy
pressures relieved,
Board, expressed
that your Administration will press on
obyment to the end that every American
able and willing to werk will have © usefal and rewarding job.
Warmest personal regards.
Sincerely,
Walter P. Reuther, President
INTERNATIONAL UNION, UAW
WPRidm
epeiud2afi-cio
1966
should help to bring about
abatement of the inflationary pressures resulting
business investment -~- the only important sector
where demand is straining capacity.
With those
it is the hope of the UAW International Executive
in the enclosed
igorously
t
CT
Re ORR Te
ee) ey ee Ee
Phoned message
combined
General
by the
two
points
advantage
of it?)
My
could take
before
the General
African
Asian-*fxiex
court
been
weeks
should
He
1)
to
refused
agreed
consider
this
Under
of colonialism
government.
to be achieved
of the human
the
point he
support
and
He
to this
can point
by that time
rights
Assembly
those who
out that
The
and pledge
Aztinz
be
not take
so why
support
President
afternoon
President
support
rights
on the part
/
the world
It has /
case.
ff
for the first two
should
the movement
is human
for the
because
African
insist that Rhodesia
1968
that the
would
that the
disappointed
every
support
should
and
Southwest
of the
problem.
covenants.
sympathy
bitterly
are
the
are:
greatest
merits
that in the General
will be devoted
support.
who
states
that
Assembly
probeEm
steps
constructive
Assembly
the
show
on
and
(Yesterday
if not on the agenda
even
Assembly
United
in the hope
could find a solution.
states
117
indicated that the Vietnamese
Goldberg
Atmbassador
debated
of the
wisdon
of the
he asked
way
under
problem
the Vietnamese
to consider
Assembly
General
1966
eight ball on Vietnam
the
able to get negotiations
not been
since we have
19,
for the
reserved
should tell the General
he
it UNLESS
about
can't do anything
- Sept.
add to the prestige
in the time
He will be behind
Thursday.
on next
office
that the President
speaking
by
Assembly
20th General
Clark Eichelberger's
Important
§ Very
States
from
show
strong
for the liquidation
a democratic
have
year
and
of the
set
goals
United
States
The
2)
the underdeveloped
of the United States
agences
specialized
in the multi-lateral
is fear
for there
increasing
could pledge
will try to do more
States
that the United
support
and the
of the United Nations
progeam
aid to
of the
schedule
out that the
He
fallen far behind.
has
of increasing
in favor
strongly
out
could poxwx point
He
areas.
of Development
Decade
come
should
President
all by itself.
AND
of the
sevenths
earth's
that will be needed
in many
less
developing
than a quarter
speech
further
Assembly
subject
BE
decided
is increasing
He
of a century.
should be avoided;
could
rapidly
to help feed the
to appropriation.
then
expanding
at a rate
not be
then
space
could
point
sovereign
out that five-
population
of the world,
struggle
celestial
it in
for these
heritage
that the
bodies
which
said in his
he
of all mankind.
subject to appropriation
indicate
of protein
subject to double
common
and
-- the
power
and a source
repeat what
could
that they are the
that outer
He
by any
-- that a colonial
ago
state that we must
in 1961
should
resourcesd
fabulous mineralg
countries
He
CLIMAX.
IS
is unclaimed
surface
on tle sea a few months
resources
He
COULD
sea@contains
The
sea.
HERE
just as the
were
not
delegation would
¢
12-A—THE
DETROIT
Monday, Sept.
19, 1538
Rep.
consin
Dispatches
UPI and
AP
White
House
: eter
NEWS—
WASHINGTON, Sept. 19. —A
' former
speech-
that President Johnson has decided ‘to step up the ground war
' writer and special assistant to
two presidents charges
the
:
administration at times
Johnson
has tried purposly to “deceive”
said
. to deceive .... (and) a deliber. ate lie and distortion.”
at
fellow
rei
Sic
tS Stcteaae Reoaaicsiote
eee
oopWIN
RICHARD .
Bee
ae
ne
Rips “Deliberate Lies
_ Wesleyan . University’s Center
for Advanced Studies, made
' the accusation in a speech be- sidespread
and
deception
fore the national board of Amer- fusion as that which
jeans
(ADA).
for
Laird,
The
on
speeches
statements and
Vietnam are “‘sincere and. well_ meaning,” some are “intended
a
of. this country
chairman of
House Republican conference.
administration's
Goodwin, now
the Nond
should be given the full facts of
our ihvolvement in Vietnam,”’
aide to Presidents Kennedy and
although
said that
Johnson,
the
but this will not be
-“The people
Richard N. Goodwin, onetime
of
in Vietnam
nounced until after
“vemper elections,
Americans about U.S. policy in
Vietnam.
;
many
Melvin R. Laird; WisRepublican, said today
Democratic Action this war.”
,
Goodwin
BLASTS COMMITTEE
sharpest
LIKENED
situation,
TO ’64
Laird
the
,
said,
is
on
the!!
similar to that which prevailed|
in the presidential election year
of 1964: when Mr. Johnson was
contesting with
Barr
Gold-|y
y
3
‘Water for the presidency.
Laird
said that President)}
Johnson prior to the election|®
con-|in
1964
had
decided
surrounds|bombing targets in North Viet-/)
nam, but he did not announce),
|
singled
out
forjit until the following
February. | 4
the decision}
Not only is the military com-/3
truth is that this major|
He s aid these costs are run-|3
criticism
ed down,|}
He called for creation of ajto bomb the Hanoi-Haiphong oil mitment being theplaycosts
the|s
of
but
said,
Laird
nist|
Commu
in
' nonpartisan ‘National Commit-|Storage areas
|j
—
well.
as
ions
operat
m
Vietna
m.
tna
tee against widening the war”|North Vie
in Vietnam.
The ADA
board en-
“The
!;
billion
$2
under
just
now
injning
tion
escala
cular
specta
and
-_ dorsed the proposal and offered
to’
up
be
will
they
and
month
ableia
measur
little
had
war
the
its support in forming such a
next January.|;
billion
$2.5
ut
tylabo
capaci
s
enemy’
the
on
effect
committee.
Laird said announcement:
“‘and most}
said,
he
,”
morale
or
Goodwin said that “in times
of those who looked at the mat-lof these costs will not be made
of armed conflict facts are often ter seriously in advance of the/by Mr. Johnson until January
elusive and much information, bombing knew it would prob-|when the President is expected |
be frecannot
of necessity,
_ {to ask Congress for a Janne.
ably be ineffective.
.
vealed.”
~ “In short, the bombing hasimental appropriation. to pay.
l
‘s
ll
fu
h
it
“w
,
id
sa
e
h
But,
been a failure, and may turn|Vietnam. costs .of ‘about -$13.5}
_Jowance for necessary uncer- out to be adisaster.”
See
ek
Fionn
tainties, .I
never
been
believe
such
there
intense
has
and
'§
t
At
times,
said,
Goodwin
the
administration says there can
be no military solution in Viet|nam; but then later it says that
“victory can be ours.”
NO PLAN FOR PEACE
“There are months when we
talk about negotiations and
months when we forget them.
Yy;|There are times when dissent-
t-|ers give aid and comfort to the
\j.|enemy and times when they are
j.jacting in the greatest of our
. have
traditions..We
*\sured
about
efforts
been
reas-
to reach a
Tipeaceful settlement when there
is no plan or program for set-
-y{tlement
in existence.”’
#
September
The Honorable
Lyndon B.
The White House
Washington 25,
Dear
Mr.
14,
1966
Johnson
DC,
President:
Iam enclosing for your information a copy of a statement
on inflation adopted by the UAW International Executive Board on
September 9, and of my letters transmitiing the statement to
Senator Russell B. Long in his capacity a3 chairman of the Senate
Finance Committee, and to Congressman Wilbur D, Mills in his
capacity as chairman of the House Ways and Means Committee.
The staterment and the enclosed letters express strong support
for your recoramendations for suspension of the investment tax credit
ee Rts
RR
PETRA
RTT
ERE ET
EUS Oe
age
Se
Seay Peale
motive industry from increasing prices on the new 1967 model cars,
Wi
I should like, respectfully, to call your attention
to the
analysis of the sources of inilation presented in the enclosed statementand, in particular, to the need for efforts to prevent the auto-
Py LA
and of accelerated cepreciation on industrial and commercial conWe hope Congress will act promptly and favorably on your
struction.
recommendations.
EL
ENE LM RET
PR
MGS
PT Ie
September
14, 1966
FEETCTE
-Z-
Johnson
Lyndon B.
Warmest
personal
regards.
SL REINS BERET
tates wer
Segre
teceea
naan tant yi
RN
NP A
Sincerely,
Piet
With those pressures relieved,
where demandis straining capacity.
it is the hope of the UAW International Executive Board, expressed
in the enclosed statement, that your Administration will press on
vigorously toward full employment to the end that every American
able and willing to work will have a useful and rewarding job.
Saat cio ®
-- the only important sector of the economy
ae
business investment
SST
abatement of the inflationary pressures resulting from excessive
I HR PNT
should help to bring about
eI
recormmendations
EO BLT
legislative
TEES
Your
MI GISLO
2 Re ERA
The Honorable
OF ORNS
*
Walter P, Keuther, President
INTERNATIONAL UNION, UAW
WPRidm
opeiuszafi-cio
iEenc.
September
STATEMENT
THE
UAW INTERNATIONAL
ON INFLATION
EXECUTIVE
BOARD
Cost- of-living wage adjustments ‘under UAW contracts afford
members
a substantial degree of. protection against erosion
buying power by inflation.
Nevertheless,
UAW members and
most UAW
- of their
their
BY
9, 196€
families
are
deeply
concerned
|
To minimize the danger of
International Executive Board calls
istration to;
,
with rising
living
costs.
further price increases,
the UAW
upon the Congress and the Admin-
L.: Spotlight for the information of the public
the facts
-as to important cases of corporate price-profiteering in order to
create a climate of public
opinion which would persuade corporations
_ both to refrain from increasing prices unjustifiably and to reduce
existing prices which are excessive.
The automotive corporations
should be among the first targets for ‘such action.
|
legislation
deposits.
2.
Reduce present extortionate interest rates through
which would set a ceiling on interest rates on all time
i
the economy
accelerated
by
increasing
Curb the dangerous
investment boom that is unbalancing
by suspending both the 7 percent investment tax credit and
depreciation. on commercial and industrial construction and
the
tax
rate
on
corporate
profits.
4. Press on toward full employment by diverting the resources
now going into excessive investment,
and by making use of other
_resources that still remain idle,
to step up the war on poverty and
to meet urgent national needs in such fields as education,
health,
housing and renewal of our cities.
7
Inflation
others with low and
poor and the nation
inflicts
to
slow
economic
hardships
on pensioners
and
fixed incomes.
It penalizes the unemployed,
the
as a whole because it inhibits government action
to reduce unemployment,
the quality of life in
Moreover,
serious
to intensify
America.
misguided
growth,
thus
efforts
the war
to
increasing
on
prevent
poverty
and
inflation
unemployment,
and
to
improve
threaten
even
to
plunge the nation into recession.
High interest rates and tight money,
touted as anti-inflationary weapons,
have already created a depression
in the housing industry and have contributed to the decline in sales
of automobiles.
It is important that the causes of recent
in prices be clearly understood so that effective
applied to prevent further increases.
inflation.
ee
The
nation
This
is
is
suffering
indisputably
primarily
clear
from
from
the
a
rapid increases
eo may be
profit
following
and
interest
facts:
-—-
.-
Unit
labor
costs
in
manufacturing
(the
cost
the
of
and employment taxes involved in.
fringe benefits,
salaries,
wages,
are now lower than in the .
making the average manufactured product)
and in July of 1966 were only 0.1 percent higher than.
years 1957-59,
(There would actually have been a decrease if not for
in July 1965.
In
taxes at the beginning of this year.)
the rise in Social Security
salaries and fringe benefits.
all the gains in wages,
other words,
Made by workers since 1957-59 have been more than paid for by their
The value of the additional goods and services
increased productivity.
enables workers to produce is greater than
that advancing technology
the cost. of their gains.
Although unit labor costs were lower than the 1957-59
-—wholesale prices of manufactured goods were 6.0 percent higher
level,
With the period 1957-59
in July than they were in the 1957-59 period.
as
100,
facturing
the
ratio
industry
of
wholesale
was
106.9
prices
in. July
to
1966
unit
--
labor
the
costs
highest
in
manu-
level
reached
Manusince the speculative inflation set off by the Korean War.
corporations have raised and are continuing to raise their
facturing
prices even though their labor costs have been falling. Prices have
been raised not to meet higher costs but to increase profits..
While labor costs per unit of goods produced in manu=<
facturing have fallen, profits of manufacturing corporations per unit
©
increased 19.5 percent: before taxes and 28.3 percent after taxes in
1965 as compared to the 1957-59 period -- and the rise in pret
into (1968.:
continued
has
From the second quarter of 1960 -- the peak period of
~~
economic activity before the last recession -<= to the second quarter
of this year, a great gap has been developing between income from
salaries and fringe benefits
Wages,
work and income from property.
while
in the private economy rose 41.7 percent,
of all employees
corporation profits rose 60.0 percent before taxes and 75.2 percent
and interest income going
after taxes, dividends rose 56.3 percent,
rose 81.5 percent.
(most of it to wealthy individuals):
‘to individuals
Ever since 1956, real employee compensation per manhour
-for the
salaries and fringe benefits
(the buying power of wages,
has been lagging
in the total private economy
average hour worked)
behind
productivity
(the
value
of
goods
and
services
produced
per
The increase in real employee compensation per hour from
manhour).
1956 to 1965 was 24.5 percent compared to a 34.4 percent increase in
in other words, have not gotten their share
Workers,
‘productivity.
The benefits of
of.the fruits of their increased productivity.
instead gone disproportionately
have
rising productivity
in increased
profits and to stockholders
tions in pide
to corporadividends.
The buying power of the average blue collar factory
-worker's weekly wage, after taxes, was actually lower in July 1966
In dollars of 1957-59 buying power,
than in the same month last year.
the figures are $87.00 for July 1966 compared to $87.42 in July 1965,
for a worker with three dependents.
a decrease of $0.42 per week,
|
|
salary
Soaring
--
have
earners
profits
created
lagging
and
an
buying
power
and
wage
of
stability
the
imbalance
that
threatens
have
also
df
of
siphone
©
d
an
y
h
t
l
a
e
h
n
u
an
to
d
le
ve
ha
s
t
i
f
o
r
p
d
e
t
a
l
f
n
I
‘of ‘the economy.
,
s
e
s
a
e
r
c
n
i
e
ic
pr
r
fo
t
n
e
m
t
s
u
j
d
a
r
e
t
f
A
.
om
bo
t
n
e
m
t
s
e
v
n
i
e
l
‘unsustainab
e
ag
er
av
an
d
t
e
a
s
a
e
r
c
n
i
g
n
i
s
u
o
h
an
th
r
e
h
t
o
s
e
s
o
p
r
u
p
t
r
o
n
f
e
investm
,
66
19
,
30
ne
Ju
ng
di
en
s
r
a
e
y
o
tw
e
th
ng
ri
du
ar
ye
a
t
n
e
c
r
e
p
rate of 12.3
l
a
n
o
i
t
a
N
s
os
Gr
in
d
e
t
c
e
l
f
e
r
as
,
y
m
o
n
o
c
e
e
ol
wh
e
th
of
th
while the grow
t
n
e
m
t
s
e
v
n
i
of
ce
pa
e
th
d
an
-t
n
e
c
r
e
p
5
5.
of
te
ra
e
th
Product, was at
to
in
y
ll
fu
s
me
co
t
n
e
m
t
s
e
v
n
i
w
ne
e
th
en
Wh
.
g
n
i
t
a
r
e
l
e
c
c
a
ds still
t
o
n
e
ar
s
2p
st
if
s
er
om
st
cu
of
ge
ta
or
sh
a
nt
ro
nf
co
ll
wi
it
operation,
s
er
um
ns
co
r
he
ot
d
an
s
er
rk
wo
of
r
we
po
ng
yi
bu
e
th
e
is
taken in time to ra
©
n
ee
tw
be
e
nc
la
ba
im
r
la
mi
si
A
.
es
ic
pr
ng
ci
du
re
d
an
s
ge
wa
by raising
8
-5
57
19
e
th
to
d
le
s
me
co
in
er
um
ns
co
g
in
gg
la
d
an
nt
me
booming invest
recession...-
the
from
gains
added to
‘interest
cent
--
--
rates
interest
Rising
worker
increased
in
and,
productivity
of
part
have
addition,
e
ag
er
av
e
th
,
66
19
ly
Ju
to
From July 1965
living costs.
45
6.
to
44
5.
om
fr
d
se
ea
cr
in
s
ge
ga
rt
mo
me
ho
w
ne
A
FH
on
te
ra
This
percent.
18.6
of
a rise
cost
interest
the
to
$2700
adds
per
s
te
ra
t
s
e
r
e
t
n
i
e
im
Pr
s.
ar
ye
25
er
ov
e
l
b
a
y
a
p
e
g
a
of a $15,000 mortg
n
se
ri
ve
ha
s
r
e
m
o
t
s
u
c
d
re
vo
fa
st
mo
r
i
e
h
t
to
s
nk
ba
e
th
by
d
e
g
char
s,
te
ra
r
he
ot
s
ct
fe
af
te
ra
e
im
pr
e
Th
.
hs
nt
mo
ne
ni
in
33-1/3 percent
r
he
ot
as
ll
we
as
s
e
s
a
h
c
r
u
p
t
n
e
m
l
l
a
t
s
n
i
of
st
co
t
s
e
r
e
t
n
i
_ increasing the
so
al
y
ne
mo
t
gh
ti
d
an
s
te
ra
t
s
e
r
e
t
n
i
h
g
i
H
.
it
ed
cr
r
e
forms of consum
_
of
ds
ar
bo
d
an
s
t
n
e
m
n
r
e
v
o
g
l
ca
lo
d
an
e
at
st
r
fo
t
make it difficul
to
education
finance
needed
expansion
spiral
another
mco
g
n
i
l
l
e
p
m
o
c
s
st
co
n
raise productio
,
es
ic
pr
r
ei
th
e
is
ra
to
s
n
i
profit marg
es
at
‘r
t
s
e
r
e
t
n
i
gh
hi
,
n
o
i
t
i
add
in
th
th
wi
s
e
i
r
t
s
u
d
n
i
e
petitiv
thus
the
giving
In
facilities.
public
of
inflationary
|
twist.
en
be
s
ha
es
ic
pr
od
fo
in
se
ri
e
th
at
th
,
se
ur
co
of
,
ue
tr
It is
3
s
e
c
i
v
r
e
s
me
so
of
s
st
co
at
th
d
an
s
em
it
me
so
of
s
e
i
t
i
c
r
a
c
s
mainly due to
t.
Bu
.
s
e
i
r
t
s
u
d
n
i
e
ic
rv
se
e
th
to
r
a
i
l
u
c
e
p
s
on
as
re
r
fo
d
have increase
en
be
ve
ha
ld
ou
sh
d
an
d
ul
co
s
e
c
i
v
r
e
s
d
an
s
od
fo
r
fo
es
ic
pr
d
increase
s
n
o
i
t
a
r
o
p
r
o
c
g
n
i
r
u
t
c
a
f
u
n
a
m
by
d
ge
ar
ch
es
ic
pr
in
ns
io
offset by reduct
.
ly
al
en
om
en
ph
ng
si
ri
en
be
ve
ha
whose profits
oe
fronts.
@
An
inflation
on
attack
effective
e
z
i
l
i
b
o
m
st
mu
t
n
e
m
n
r
e
v
o
g
The
s
ct
fa
e
th
se
po
ex
to
l
a
s
dispo
be
must
7
several
on
mounted
s
it
at
s
e
c
r
u
o
s
e
r
e
th
l
al
about price-profiteering
oo
ll
wi
n
o
i
n
i
p
o
ic
bl
pu
d
e
s
that an informed and arou
.
s
e
c
i
r
p
e
v
i
s
s
e
c
x
e
ce
du
re
to
s
n
o
i
t
a
r
o
p
r
o
c
e
d
a
u
s
r
e
p
..
so
ce
du
re
o
t
s
rt
fo
ef
s
u
o
r
o
g
i
v
r
fo
s
et
rg
ta
g
in
ad
le
e
th
g
Amon
S
e
me
so
e
t
i
p
s
e
D
.
s
n
o
i
t
a
r
o
p
r
o
c
e
v
i
t
o
m
o
t
u
a
e
th
prices are
,
d
e
n
i
b
m
o
c
e,
re
Th
g
Bi
y
r
t
s
u
d
n
i
to
au
e
th
s,
le
sa
in
e
s
a
e
r
-@ec
.
e.
th
ng
ri
du
t
n
e
m
t
s
e
v
n
i
’
s
r
e
d
l
o
h
k
c
o
t
s
on
s
t
i
f
reported pro
first
to
an
half
annual
corporations
latest
Three’s
cj
of
period
equal
1966
of
rate
during
profit
13.3
the
for which
rates,
:
in
to
27.2
percent
first
figures
other
ear
ernyt
percpe
for
all
quarter.of
are
words,
ee
)
manufacturing ©
this
available).
are
compared
year
.The
more than
(the
Big|
twice
as high as the average for all manufacturing corporations
at a time when that average
is far above normal...
The profits’
of the Big Three in 1965’ totalled $5,846 million before
-taxes.
After taxes, their profits were $3,062 million, or
$608 million higher than in any previous year.
For. every
_ wage and salaried worker employed in all its operations
|
-.throughout the world, Chrysler reported a before-tax profit
of $2,689 per employee;
Ford, $3,581 per employee;
and
General Motors a staggering $5,570 per employee.
Despite
these incredible profits, which clearly call for reductions
in prices, the automotive corporations are hinting instead
- that they will raise them, using the installation of certain
safety equipment as their excuse.
This would be in direct
conflict with the hope expressed by President Johnson that
the auto industry "build in more safety -- without building
on more costs."
The UAW International Executive Board urges
that a Congressional investigation be undertaken immediately
in an effort not only to head off unjustifiable increases in
Car
line
prices
but
with
to
the
The lopsided
stability of
costs
bring
of
them
car
down
to
a
production.
level
reastically
in
investment boom that endangers the future
the economy must be brought to a halt.
The
UAW International Executive Board therefore supports
-- President Johnson's recommendation to suspend the investment
credit
and
accelerated
depreciation.
The
7 percent
investment
tax credit, enacted to encourage investment in machinery and
equipment,
has no.-place in an economy where investment is
running at clearly excessive levels.
Neither is there any
place for accelerated depreciation designed to se
or daa
industrial
Funds
and
being
commercial
used
to
construction. ~
finance
the
:
exaggerated
should be made less easily available by
Fate..on corporate profits. . At the very
restored.to
reductions
the
of
52
percent
1964.
level
in
;
investment
boom
increasing the tax
least, it should be
effect
PE LOrS
the
tax
At the same time, we must not relax either in our pursuit
of full employment or in our efforts to meet urgent national
needs.
Curbing the investment boom will free resources in
men,
machines
purposes.
even after
These
materials
that
There are additional
5% years of recovery
resources
intensify
and
the
can
war
on
and
should
poverty,
can
be
diverted
to
other
resources that remain idle
from the last recession.
be
and
used
to
to help
accelerate
fill
social
and
deficits
in such fields as education, health care and facilities,
housing and urban redevelopment.
So long as there are still
men idle and national needs unmet we must spare no effort
to employ the men to meet the needs.
|
Action must be taken to reduce interest rates.
As a first
step in this direction, the UAW International Executive Board
‘ urges Re Senate to reject the meaningless bill aE
by
-4
238.
the House on ‘September 8
will impose a 4% percent
:
_ deposits.
and to substitute legislation that==:Se
interest rate ceiling on all TEMG
|
:
The rising price trend must be halted.
But we must not
repeat the tragic mistakes of the Eisenhower years when restrictions
on government spending and tight money finally. bought price stability
at the cost of high unemployment, retarded economic growth and repeated recessions.
The victims of such misdirected economic policies are .
inevitably the poorest and most vulnerable of the nation's population -members of minority groups, displaced older workers,
and those with
_
limited education.
A rise of a mere two-tenths of a percentage point
in the general unemployment rate -- from 3.7 percent in April of this
year to 3.9 percent in August -- was accompanied by increases six
times as great in unemployment rates for Negroes and unskilled blue
collar workers.
To combat inflation with unemployment is to surrender
in the war against poverty and to abandon the struggle for genuine
equality for all Americans.
The attack on inflation must be directed at its sources -———
| corporate price-profiteering, tight money and usurious interest rates,
and the investment boom.
At the same time, we must press on toward
. genuine full employment in fulfillment of the national commitment
proclaimed in the Employment Act of 1946.
opeiu42aflcio:pms
Intec-Office Communication
September
To
Walter
From
Irv
20,
1966
»
Subject
Attached
we
prepare
of the
IB:lm
oeiu42
att.
to be
"'riches
is a proposed
draft of the letter you
sent to President
in the
sea",
Johnson
requested
concerning
the use
,
at
\
.
ethic
ey,
Z
a
oka”
a
Femme
2
OY) eo.»
(
Dear
}
ee
(|
ty
;
aoe
Mr.
Re
pt
“OF
Pato
Su.
A
f
’
\
:
if
:
§
[ an
WJ then
wlA
,
af
s
nse
te allt
Gi.
LALA
&be
A
hekwctccll
President:
I write
to you with
regard
to the question
of the world's
p
growing
.e
|
the fachls
of |
need
for water
resources
can
countries,
initiative
interest
and
the benefits
provide
I have
to all peoples,
been
Summersville
Dam
development
in the Great
in your
in West
Virginia.
States
and
fact that the wise
We
the
the
United
Nations
in a ''water
for
peace''
conference
'water
of some
100
nations.
We
notable
have
need
drawn
spring
the
for
underdeveloped
urge
1966
3,
to this
Lakes
report
program
issue
of the
between
in Washington,
intention,
expressed
of water
quality
of water
upon
us
the
an international
in working
announcement
to be attended
use
United
the
impressed
in your
an
at the
speech
of progress
and your
you a new
resources,
vital
cooperation
upon
is not only a natond tie
by your
for peace"
applaud
in the
deterioration
in the Great
resources
heartened
next
those
September
been
pollution
of our water
developmentof (world water
long interest in water
by the alarming
with
therefore
are
and
to you to respectfully
your
evident
The
in coping
use
UAW
years
Basin.
Canada
challenge.
in
in recent
Lakes
knowing
use
particularly
to write
reflected
We
and
moved
in this vital area,
eloquently
that the wise
through
of a
by representatives
Summersville
speech,
to
-
water
need for water and to
all the nations of the
"focus universal attention on mankind's
stimulate practical cooperation among
those needs,"
world in meeting
We
growing
world's
- which
for water
need
‘require a spirit of cooperation
history of man."
are
We
your Summersville
competition
of growing
quickly
hold.
needs
well
maritime
conflict.
frontier
developed
has
power,
as the
is
the far from
over
even more
and
l
ra
ne
mi
d
an
od
fo
st
va
the
for
ct
li
conf
that hopes
that the
ocean
depths
a paramount
declared
off
property
States,
responsibility
limits
in
cold-war
of mankind.
may
unless
become
to see
and
that the
in meeting
the nations
an arena
is
world
move
for
greatest
to it that this
rivalries
possibility
resources
as the world's
in
even in the
remote
cooperation
disappointment
feel that the United
We
common
+,
for int ernational
—
to tragic
be doomed
to forestall the threat
great-power
natural
may
is growing
are
believe
We
of water
stated
as you
by the fact that,
for the use
alarmed
in the
unknown
nations
among
you are,
as
alarmed,
competition
speech,
We
nations,
advanced
water
as "a race with
- will
disaster"
oceans
characterize
rightly
you
the
to meet
race
that the
right in stating
you are
sure
are
2
last
great
conserved
and
i)
?
®
iro
for international
Oceanographer,
passage
from
that
to you in this
appeal
Our
from
your
13,
1966
speech
July
in your
letter
«<3
appeal
know
at
ship
Survey
Coast and Geodetic
S.
of the U.
ceremonies
commissioning
in oceanography
cooperation
we
sentiments
these
share
you
That
water
i
is in fact inspired
by the following
speech:
r
de
Un
n.
io
at
ip
ic
rt
pa
l
na
io
at
rn
te
in
of
pe
ty
s
"We greatly welcome thi
of
s
ct
pe
os
pr
the
w
lo
al
er
ev
we
st
mu
no circumstances, we believe,
~
mco
al
ni
lo
co
of
rm
fo
w
ne
a
te
ea
cr
to
th
al
we
l
rich harvest and minera
a
d
oi
av
to
l
fu
re
ca
be
st
mu
We
s.
on
ti
na
petition among the maritime
st
mu
We
.
as
se
gh
hi
the
r
de
un
s
nd
la
the
ld
race to grab and to ho
that the
ensure
The
to provide
governments
area
shall be
declarations
to national
of mass
including
used
and
appropriation
destruction
United
the
and
there.
are,
and
remain,
called
The
upon
space
all nations
partial nuclear
Union,
UN
for action by the
ratified
provided
General
test-ban
by
12
that the
Assembly
and celestial bodies
not to orbit
practically,
is how,
1959,
of December,
and the Soviet
outer
regard
precedents
recent
purposes.
declared
The
bottoms
question in this
Treaty
States
peaceful
1963
ocean
certain
Antarctic
The
only for
of 1961
are
There
community.
the
beings."
great and urgent
such insurance.
international
seas
deep
of all human
the legacy
and
not subject
or install weapons
treaty was
another
cooperative
water
eventual
and
cold war
of the
at delimitation
aimed
community
effort by the world
- 4
disarmament.
far
can have
propose
for the
desire
for
continental
the
peace
which
We
therefore
of men.
at preventing
a global
shelf.
go
can
initiative
lives
in the
directly
beyond
oceans
the
that lie beneath
riches
impact
aimed
initiative,
an American
universal
of the
practical wholesome
immediate,
such
- and an American
needs
affirmation
- another
possible
to make
now
world
The
struggle
ir We
%,
»
Dll.
Bia
Hes
respectfully
urge
SAA A
its current
during
Assembly
neh é.
session wé#th the following
1)
General
Nations
the United
before
that you ge
that
the
ban
on
Antarctica
under
celestial
the
seas
followed
by a treaty to the
under
for a UN
the high
same
monitoring
seas.
and
outer
agreement)
through
of the high
provide
bodies
12-nation
bottoms
of mass
of weapons
installation
covering
presently
proposition:
three-fold
General
effect.
system
destruction,
space
(and
be extended
Assembly
Such a
to report
to the
resolution,
to be
treaty might well
on military
activity
water
2)
that member
UN
of the high
resources
Through
would
in the
authority
over
the marine
with interested
nations,
to the General Assembly
of the high
resources
of marine
use
shelves.
continental
the
responsible
be
of the world
peoples
of all the
interest
general
a special
beyond
seas
and
for the development
seas
create
arrangements
contractual
agency
UN
this
exercise
which would
agency
Nations
United
of the
states
- 5
community.
3)
that
the
income
licensing
derived
authorized
of the
countries.
shelves
resources
marine
of the
states
of member
the
also be
might
agency
The
under
used to meet
be largely
in development
to cooperate
continental
these
arrangements
or other
of developing
needs
from
marine
asking
for
resources
such
assistance.
Your
eloquently
affirmed
your
Administration,
determination
Mr.
President,
to "knock
on any
has
door"
repeatedly
in the
quest
and
for
a
water
meaningful,
honorable
a readiness
for
widespfread
rise
fears
nuclear
crisis
in the world
to more
as
UN
economic
development
gap between
widening
the
experts,
setting
have
the
pointed
oceans.
out,
The
the
the
stage
world
Rice
right and
peoples
needs
of differences
to wage
of population
the poor
of famine
nations
sense
that a United
he
secure
U Thant's
reconsiders
or not,
of power
need
of poverty
in the view
millions
the
themselves
to food production
World
of moving
Nations
commit
and terror
peace,
growth
and,
give
motivated
balance
in which
desperately
the new
largely
Third
of the
may
amid
with the impotence
and nations
and
indicated
continues,
in Vietnam
Whether
the precarious
regions
for a period
have-not
whole
and accommodation
in many
conflict
together
crisis,
General.
ratio
not yet having
struggle
such fears,
efforts
adverse
the
Asian
until governments
and imaginative
the
the
Vietnam
reflecting
will continue
energetic
adversaries
that the
Clearly
Secretary
UN,
Meanwhile,
and
war.
of the
itself,
the world
to deal with the
to step down
the chronic
Our
or negotiations,
throughout
United Nations
decision
in Asia.
discussions
to a general
of the
peace
- 6
of many
As
will die.
protein-rich
toward
program
is
food
you
resources
relief of tensions
to harvest
the
seas'
of
water
bounty
to alleviate
And
such a program,
from
to shore
Nations
United
up the
exploit maritime
own
national
continue
Carpenter
World
There
U.
benefit,
while
engineers
S.
come
might
Navy
Report,
in the waters
their
from
22,
will undoubtedly
1966)
over
exploration
scientists
and
June
that ''one
the
Office,
penetration
Navy
1966)
18,
of the
according
of the
nonmilitary
peace.
Scott
M.
told a meeting
of the work
Most
(U.
(antisubmarine
the
of
to
threats
to its commander
from
will
oceans
deep
Commander
sea. '
spin-offs
for their
shelves
greatest hostile
ASW
Nations
United
of the
to have
of the
surface
is in support
be important
continental
their
effort
practical
will increasingly
powers
considerations.
beneath
Oceanographic
Aug.
that the larger
indicates
under
program
our
to throw
of such a
of world
changes
a cooperative
by military
and
c
flow
that would
and to mankind
in behalf
scales
and with it the
(Saturday Review,
is reported
country
of the
resources
to be dominated
aerospace
this
trend
current
the
into the
of such
In the absence
auspices,
we
income
independent
it to ourselves
owe
and influence
power
considerable
and
the
needs
UN
The
inspire.
would
famine
prevent
of accomplishment
sense
new authority,
and
hunger
- 7
S.
News
warfare)
rapid
&
mission,
expansion
water
of ocean
naturally
in the
of a multinational
absence
States
of the
United
ocean
resources.
effort,
will
of smaller
effect
which
resources
capability
lead
to exploit
seas
of the high
nations
to share
in those
continue
to grow,
the
and weaker
economic
the
to increase
less
have
of the
control
spin-offs,
of the nonmilitary
further
be
will
program
is
resources
to be protected.
Sooner
resources
conflict,
equitable
the
chief
countries
those
United Nations
rights
essential if the
are
over
the
and
in nature;
be military
for in recent
provided
expanded
of the
chief purpose
But the
proposals.
budget
Navy
1966)
6,
Sept.
Press,
(Detroit Free
research
- 8
and
oceans
lay now
a bone
will become
the foundations
unless
of contention
the nations
mutually
weapons
of mass
these
conflicts
and
potential
disasters
justice
by acting
now.
military
food
and
cooperative
for their
bases,
of deep-sea
can
populations
or later,
Sooner
on ocean
We
for peace
we
sharing.
construction
implanted
deep
of the
unless
or
as
later,
and
mineral
of
a source
development
agree
and
to forswear
destruction
will be
strike
a blow
floors.
avoid
economic
For
these
and
reasons,
Mr.
President,
water
we
earnestly
and
respectfully
to the nations
personally
appeal
resources
of the high
practical
needs
dk/fw
step toward
of the poor
opeiu42
9-1966
urge
seas
under
peace
and
and hungry
and
upon
you this
governments
the protective
a feasible
of the planet.
to place
custody
approach
ask that you
We
action.
the maritime
of the
toward
-
United Nations,
meeting
as a
the massive
9
COMMISSION ON WHITE HOUSE FELLOWS _
WASHINGTON
September
20,
1966
The White House Fellows program was established by President
Johnson to give rising American leaders a better understanding
of the processes of government.
Under the program, those
selected as Fellows spend a year working as assistants to
Cabinet officers, the Vice President,
or other top government officials.
White
House
staff members,
We have completed our first year's experience with the program
and the start of another nationwide selection has just been announced by the President.
The enclosed press release gives
details.
Would
you please
make
Thank
you for your
note
of the program
in your publication?
help.
Boafbo
Thomas
Director
Enclosures
W.
Carr
:
Office
aoomUmUmmcemcelUmUcreOlUmCUOOOlUmCUOOlUCU DOU
OOUlUmCU LUC
DOU UC OU
DUE UC
OSU
of the White House
DUOUlClCUC OOS
lel
UDC
THE
OOS
WHITE
Press
elles
lS
1966
18,
AUGUST
RELEASE
IMMEDIATE
FOR
Secretary
Sl
reel
Slee
lll
eel
eS mC ces Umer
ce eS
me
ese
SSS
HOUSE
The White House today announced the start of another nationwide search
for outstanding men and women, ages 23 to 35, to serve as White House
Fellows.
Open to college graduates from all fields, the White House Fellows program
was established by the President to give rising leaders one year of ''firsthand,
high-level
experience
with
the workings
of the
Federal
Government
and to increase their sense of participation in national affairs. "'
The first 15 White House Fellows
assignments
in Washington,
one with the Vice
have just completed their year-long
Four
President,
and
served with White House
one with
each
staff assistants,
of ten Cabinet
officers.
Throughout the year, they were involved directly in work of their agencies.
In addition to their duties as special assistants, they participated in an
educational program conducted by The Brookings Institution.
A second group of 18 Fellows, including one woman, has
selected and begins work in September.
Selection of the
be completed next May, after regional competition and a
selection meeting held in Washington by the President's
White House Fellows.
Dillon,
Douglas
the
Other
Commission.
Gardner,
W.
John
include
mernbers
as Chairman
serves
of the Treasury,
former Secretary
already been
third group will
final three-day
Commission on
Secretary
of
of
Health, Education, and Welfare -- who suggested the White House Fellows
idea to the President while he headed the Carnegie Corporation; Ernest C.
Aston,
Graduate
Dean,
Arbuckle,
of the Board,
Chairman
Friday,
Third U,
American
University
President,
S,
School
of Business,
Circuit Court of Appeals;
President
Lines,
Civil Service Commission;
National
Republic
of North
Ltd.;
John B.
Stanford
Carolina;
George
John W.
Oakes,
L.
Macy,
Bank
of Dallas; William
William
Killion,
Jr.,
H.
President,
U.
Chairman.
Eleven
States
regional
applications,
for
the
on
and
Senator,
panels,
interview
W.
C.
Judge,
Hastie,
Editorial Page Editor, The
New York Times; Harry Ransom, Chancellor, University of Texas;
Smiley, President, University of Colorado; Margaret Chase Smith,
United
James
University;
S.
Joseph
R.
Maine.
of distinguished
composed
and
candidates,
recommend
citizens,
the most
will
review
outstanding
In discussing
further consideration by the President's Commission.
selection procedures, Chairman Dillion stated: 'Selection is based
intelligence, character, ability, and promise of future development,
the standards are so high that this is as impressive an honor as a
young person can win.''
in the first two years,
He noted that of approximately 4, 000 applicants
only 33 were
finally selected as White House
Fellows.
President Johnson has watched the work of the Fellows closely during the
Referring
year and has met with the group informally on several occasions.
to the Wnite House Fellows during a ceremony this spring, he stated,
"This program has
In the
past,
those
exceeded my highest expectations."
selected
included
lawyers,
scientists,
engineers,
business
niadmi
and
rs
esso
prof
ty
ersi
univ
t),
iden
pres
any
comp
a
(one,
es
utiv
exec
strators, military officers, newly-graduated students, a writer, a newsThey have been paid stipends, based upon
paperman, anda social worker.
The program will be supported in the coming year
age, of up to $15,000.
MORE
2
by grants from the Carnegie Corporation, the Ford Foundation, and from
David Rockefeller personally.
(Mr. Rockefeller, President of the Chase
Manhattan
Bank,
served
White House.Fellows. )
as
the first Chairman
of the
Commission
on
The President has announced his intention to seek legislation ''early in the
next session of Congress'' to establish the program on a permanent basis.
Applications for next year's
Application forms
Carr,
Director,
Washington,
D.
program will be accepted until January 6,
and additional
Commission
C.
information
on White
House
20500.
# # # #
can be obtained
Fellows,
The
from
White
1967.
Thomas
House,
W.
Announcing
the
1967-68
WHITE
FELLOWS
HOUSE
Program
"A genuinely free society cannot be a spectator society. ... The purpose of this program is to give the Fellows first-hand, high-level experience with the workings of the Federal Government and to increase their
sense of participation in national affairs.”’
,
President Lyndon B. Johnson
THE PROGRAM
White House Fellows are assigned for one year as assistants to White House staff members, the Vice President, Cabinet officers, or other top government
officials.
is on direct participation in the most important work of the executive
signments are designed to give Fellows a better understanding of the
ernment and not necessarily work experience in their chosen field. A
cational program helps prepare the Fellows for their work assignments
learning which takes place on the job.
Emphasis
branch. Job asprocess of govcontinuing eduand expand the
ELIGIBILITY
The program is open to men and women from all occupations who are college gradu-
ates and who will be between 23 and 35 years of age on September 1, 1968/ Normally
Fellows will have completed their education and begun their careers. Each will have
demonstrated exceptional ability, marked leadership qualities, unusual promise of
future development, and high moral character.
SELECTION
A candidate may either apply, or be nominated for the program by an individual or
an organization (but an official application must be submitted in either case).
White House Fellows are designated by the President of the United States. The final
recommendations to the President are made by the President’s Commission on White
House Fellows after regional and national selection meetings.
FURTHER
Write
INFORMATION
Director,
Commission
ton, D. C. 20500.
Deadline
AND
on
APPLICATION
House
White
FORMS
Fellows,
for mailing applications
The
White
House,
is January 6, 1967.
Washing-
“It is essential to the healthy functioning of our society that we have in
the non-governmental sector a generous supply of leaders who have an
understanding—gained at first hand—of the problems of national government. In a day when the individual feels increasingly remote from
the centers of power and decision, such leaders can help their fellow
citizens comprehend the process by which the nation is governed,”
Douglas Dillon, Chairman
President's
GSA
DC
67-2318
Commission
on
White
House
Fellows
THE
HOUSE
WHITE
FELLOWS
"A genuinely free society
cannot be a spectator society... .
The
President's Commission
page
5
.
page
7
.
page
9
.
page
11
.
page 12
.
page
on White House Fellows.
.
Statement of Purpose.
The Program in Operation
.
Program Results...
The Selection of
White House Fellows.
Information Summary
for
White House Fellows.
7
15
President Lyndon B. Johnson announced the White
e
leg
col
264
to
s
res
add
an
in
m
ra
og
pr
s
low
Fel
House
the
of
om
Ro
t
Eas
the
in
ed
er
th
ga
s
der
lea
t
studen
White House on October 3, 1964:
tor
cta
spe
a
be
ot
nn
ca
y
iet
soc
e
fre
y
el
in
nu
ge
A
society. And this is my real message to you.
Freedom, in its deepest sense, requires participation—full, zestful, knowledgeable participation.
Toward that end, I have today established a new
program entitled the White House Fellows.
Fel
the
e
giv
to
is
m
ra
og
pr
the
of
e
os
rp
pu
The
rk
wo
the
h
wit
ce
en
ri
pe
ex
el
ev
-l
gh
hi
,
and
sth
fir
s
low
se
rea
inc
to
d
an
nt
me
rn
ve
Go
l
ra
de
Fe
the
of
ings
s.
air
aff
al
ion
nat
in
n
io
at
ip
ic
rt
pa
of
se
sen
their
n—
me
wo
d
an
n
me
r
ge
un
yo
be
l
wil
s
ow
ll
Fe
e
Th
lrna
jou
,
law
ss,
ine
bus
om
fr
n
se
ho
—c
35
age 23 to
pa
cu
oc
er
oth
or
,
ure
ect
hit
arc
,
ies
sit
ver
uni
ism, the
,
ies
lit
qua
ip
sh
er
ad
le
ed
rk
ma
ve
ha
l
wil
ch
Ea
tions.
t.
en
pm
lo
ve
de
re
tu
fu
of
e
is
om
pr
l
and unusua
THE
PRESIDENT’S COMMISSION
WHITE HOUSE FELLOWS
ON
CHAIRMAN
DouGLAS
COMMISSION
THE
OF
MEMBERS
DILLON
C. ARBUCKLE
ERNEST
Dean, Graduate School of Business
Stanford University
ASTON
JAMES W.
Chairman of the Board
Republic National Bank of Dallas
WILLIAM C. FRIDAY
President, University of North Carolina
JOHN W. GARDNER
Secretary of Health, Education, and Welfare
HASTIE
H.
WILLIAM
Judge, Third U.S. Circuit Court of Appeals
GEORGE L. KILLION
President, American President Lines, Ltd.
JOHN
Jr.
Macy,
W.
Chairman, U.S. Civil Service Commission
JOHN B. OAKES
Editorial Page Editor, The New York Times
HARRY
RANSOM
Chancellor, University of Texas
JOSEPH R. SMILEY
President, University of Colorado
CHASE
MARGARET
SMITH
United States Senator, Maine
Stas
THOMAS
MICHAEL
W.
ELois WADE,
W.
Carr,
Kirst,
Director
Assztstant Director
Administrative Secretary
* 5 x
Statement of Purpose
e
id
ov
pr
to
is
m
ra
og
pr
s
ow
ll
Fe
e
us
Ho
e
it
Wh
the
of
e
os
The purp
d
an
th
rs
fi
me
so
h
wit
s
an
ic
er
Am
g
un
yo
d
te
va
ti
mo
hly
gifted and hig
of
se
sen
a
d
an
on
ti
Na
the
g
in
rn
ve
go
of
s
es
oc
pr
the
in
experience
personal involvement in the leadership of the society.
we
t
tha
em
st
sy
our
of
g
in
on
ti
nc
fu
y
th
al
he
the
It is essential to
s
der
lea
of
ly
pp
su
us
ro
ne
ge
a
tor
sec
l
ta
en
nm
er
have in the nongov
bpro
the
f
—o
nd
ha
st
fir
at
ed
in
ga
g—
in
nd
ta
rs
who have an unde
ls
fee
al
du
vi
di
in
the
en
wh
day
a
In
.
nt
me
rn
ve
go
lems of national
h
suc
on,
isi
dec
d
an
r
we
po
of
s
ter
cen
the
om
fr
te
increasingly remo
by
s
ces
pro
the
nd
he
re
mp
co
ns
ize
cit
ow
ll
fe
ir
the
lp
he
can
leaders
which the Nation is governed.
pro
d
lle
ski
of
s
er
mb
nu
at
gre
e
uc
od
pr
we
ay,
tod
y
tr
un
co
s
thi
In
y
iet
soc
the
e
id
ov
pr
te
eli
ual
ect
ell
int
s
thi
of
w
fe
too
But
fessionals,
If
s.
air
aff
lic
pub
in
ce
an
id
gu
d
an
ip
sh
er
ad
le
e
ik
nl
ma
es
with stat
y
tur
cen
h
18t
e
lat
the
of
es
oni
col
an
ic
er
Am
d
tle
set
ly
the sparse
n,
so
di
Ma
,
oe
nr
Mo
s,
am
Ad
,
son
fer
Jef
,
on
gt
in
sh
Wa
e
uc
could prod
d
an
h
dt
ea
br
,
ent
tal
e
iv
at
rl
pe
su
of
ers
oth
d
an
,
in
kl
Hamilton, Fran
ra
ne
ge
s
thi
in
e,
uc
od
pr
to
e
abl
be
not
we
ld
ou
sh
statesmanship,
Weare not doing so.
tion, 10 times thatnumber?
re
mo
ely
sur
as
t
jus
d
An
re.
the
ll
sti
is
al
ri
te
ma
w
ra
Surely the
to
le
op
pe
g
un
yo
est
abl
our
of
t
en
pm
lo
ve
de
the
in
must be done
n.
me
es
at
st
d
an
s
der
lea
h
suc
of
e
nc
ge
er
em
the
e
tat
inspire and facili
a
em
th
e
giv
to
d
ne
de
oa
br
be
st
mu
ce
en
ri
pe
ex
d
an
ns
zo
ri
ho
Their
a
y,
iet
soc
the
of
ip
sh
er
ad
le
the
in
t
en
em
lv
vo
in
al
on
rs
sense of pe
for
ty
ili
sib
pon
res
of
se
sen
a
d
an
y,
iet
soc
the
for
s
es
tn
ea
vision of gr
bringing that greatness to reality.
ly
rb
pe
su
e
giv
to
ed
gn
si
de
is
m
ra
og
pr
s
ow
ll
Fe
e
us
Ho
e
The Whit
qualified young Americans precisely those experiences.
President’s Commission on White House Fellows
wk 7
THE
PROGRAM
IN
OPERATION
Each year a group of exceptionally promising young men
and women, drawn from all sectors of our national life, will
be chosen to serve as White House Fellows. For a year they
will be assigned to work at a high level within the executive
branch. In addition to their daily work, the Fellows will
take part in educational activities especially planned to advance the purposes of the program.
Ass gnments
The work assignment is the heart of the White House Fellows program. It provides the opportunity for direct parFellows
ticipation in the work of the Federal Government.
will be assigned as assistants to White House staff members,
the Vice President, Cabinet officers, or other top Government
officials.
Assignments are intended to give Fellows a better
understanding of the process of Government, but not neces-
sarily work experience directly in their chosen field. They
are encouraged to avoid the habit of viewing Government
passively, or of thinking of it chiefly as a problem for intellectual analysis. Throughout the year emphasis is placed on
a linking of theory and practice, analysis and action.
In the past, White House Fellows have studied, evaluated,
and helped coordinate major Federal programs; conducted
research and suggested alternate ways of carrying out Federal responsibilities; and developed new programs and led
the staff work necessary to put them into effect.
9 x
They have
traveled, written speeches, attended conferences, supervised
on,
ati
isl
leg
ed
pos
pro
)
ted
ges
sug
d
(an
ed
iew
rev
k,
staff wor
d
fte
dra
gs,
tin
mee
d
ire
cha
,
ies
uir
inq
l
ona
ssi
gre
con
answered
hhig
ed
ist
ass
ise
erw
oth
and
,
ngs
efi
bri
ted
duc
con
reports,
e
Som
k.
wor
ly
dai
ir
the
h
wit
s
cial
offi
t
men
ern
gov
l
leve
Fellows have been concerned with the whole range of policy
matters which faced the official to whom they were assigned.
Others have had a deeper involvement with fewer issues.
ipa
tic
par
ect
dir
on
n
bee
has
,
case
ry
eve
in
is,
has
But the emp
the
of
k
wor
ant
ort
imp
t
mos
the
in
el
lev
icy
pol
the
tion at
agency.
Educational Program
e
par
pre
to
ed
ign
des
is
m
ra
og
pr
al
ion
cat
edu
g
uin
tin
A con
the
rce
nfo
rei
and
ts
men
ign
ass
rk
wo
ir
the
for
s
low
Fel
the
l
iva
arr
ir
the
on
Up
.
job
the
on
ce
pla
es
tak
learning which
the
to
d
uce
rod
int
are
s
low
Fel
,
ber
tem
Sep
in
on
in Washingt
rs
ola
sch
h
wit
ns
sio
ses
r
ina
sem
h
oug
thr
nt
me
rn
Federal Gove
inof
ies
ser
a
and
,
life
lic
pub
and
e
vat
pri
m
fro
and leaders
ofh
t
ine
Cab
h
wit
its
vis
and
ns
sio
cus
dis
rd
eco
e-r
-th
off
,
mal
for
nt
me
rn
ve
go
top
er
oth
and
s,
der
lea
l
ona
cers, congressi
con
s
low
Fel
r,
yea
the
of
r
de
in
ma
re
the
ng
ri
Du
officials.
h
wit
ns
sio
cus
dis
in
k,
wee
a
ce
twi
or
e
onc
te,
ipa
tic
tinue to par
ss,
ine
bus
,
ion
cat
edu
,
nt
me
rn
ve
go
of
lds
fie
the
m
leaders fro
gs
tin
mee
nt
que
fre
on,
iti
add
In
ns.
sio
fes
pro
the
and
labor,
bpro
the
of
n
sio
cus
dis
ow
all
s
lve
mse
the
s
low
Fel
the
g
on
am
as
d,
tan
ers
und
to
m
the
ng
bri
and
s
job
ir
the
in
e
fac
y
the
s
lem
ger
lar
the
s,
die
stu
e
cas
of
ies
ser
ted
tra
cen
con
a
h
oug
thr
.
nt
me
rn
ve
Go
l
era
Fed
the
nt
fro
con
ch
whi
problems
*
10%*
PROGRAM
RESULTS
At the end of their year, most White House Fellows will
return to their careers.
They will carry with them a deeper
awareness of national issues, a better understanding of the
government process, and the skills and knowledge to assume
lic
pub
in
or
s
ie
it
un
mm
co
n
ow
ir
the
in
s
tie
ili
sib
pon
res
r
greate
s
der
lea
As
in.
aga
ve
ser
to
ed
ask
be
y
the
uld
sho
e
vic
ser
within the private sector, they can help their fellow citizens
ed.
ern
gov
is
on
ti
Na
the
ch
whi
h
oug
thr
s
ces
pro
the
d
tan
unders
.
nt
me
rn
ve
go
in
ger
lon
y
sta
to
ose
cho
y
ma
s
low
Fel
me
So
e
abl
alu
inv
an
e
tut
sti
con
l
wil
y
the
y,
sta
or
go
y
the
r
he
et
wh
But
national resource.
The White House Fellows Association, an organization of
former Fellows, has been established ‘“‘to maintain and
ento
,
nt
me
rn
ve
go
of
g
in
nd
ta
rs
de
un
s’
er
mb
me
its
n
broade
e
vic
ser
lic
pub
to
ion
but
tri
con
ir
the
e
tat
ili
fac
and
courage
cur
and
t
pas
g
on
am
ts
tac
con
g
uin
tin
con
for
e
vid
pro
and to
rent
Fellows.
meetings
...
>
The
Association
will
hold
annual
to discuss the role of leadership in both govern-
ing
fac
s
nge
lle
cha
the
s,
ere
sph
tal
men
ern
gov
non
and
tal
men
the
ch
whi
in
s
way
the
and
ad,
ahe
s
ade
dec
the
in
this Nation
Nation must move to meet those challenges.
“wi
or organization.
by an individual
mitted.
The Commission on White House Fellows was appointed
by the President to oversee the selection of Fellows and the
conduct of the program. In order to give fair consideration
to the large number of applicants, the White House Fellows
selection process has been partially decentralized. Eleven
regional panels, consisting of distinguished citizens from a
variety of fields, evaluate applicants selected after an initial
screening and recommend the most outstanding for further
consideration by the Commission on White House Fellows.
Simply stated, the selection process is designed to identify
young men and women who give promise of providing the
kind of leadership that will influence the shape of our society
in the next 10 to 20 years. Normally Fellows will have
completed their education and begun their careers, and each
der
lea
ked
mar
ity,
abil
al
ion
ept
exc
ted
tra
ons
dem
e
hav
will
ship qualities, unusual promise of future development, and
high moral character.
Here briefly, are the steps in the selection process:
1. Announcement—The White House announces the program each year in late summer or early fall. Applications
and nominations are invited at that time.
must complete applications
e
us
Ho
e
it
Wh
on
on
si
is
mm
Co
the
to
ly
ect
dir
m
the
and submit
Fellows, The White House, Washington; D.C. 20500.
may
nominate more than one candidate, and are encouraged to
In either case, an official application must be subdo so.)
THE-SHLEG FION, GROWHITE
HOUSE FELLOWS
2. Application—Candidates
(Organizations
All applications and supporting papers are first re-
Priviewed under Commission supervision in Washington.
mary consideration is given to such factors as achievement,
intellectual ability, evidences of leadership, special talents,
and interest in the affairs of the community, State, or Nation.
Applications selected after this first review are forwarded to
the appropriate regional selection panel and the candidates
concerned named as ‘‘Semi-Finalists.”’
3. Regional Screening—Each regional panel then conducts a competitive screening of the applications referred to
it. The purpose is to select candidates who will be inter-
viewed by that panel—“‘Regional Finalists.”
4. Regional Interview and Recommendation—Each panel
interviews its Regional Finalists and submits comments and
recommendations
Commission
the
to
White
House
Fellows.
5. Final Selection
House Fellows, after
vites a small number
to Washington for a
Meeting—The Commission on White
receiving the advice of the panels, inof candidates—‘‘National Finalists’’—
final selection meeting with the Com-
additional
mission.
After
pertinent
information,
interviews
the Commission
mendations to the President.
and
review
makes
of all
its recom-
All candidates are notified of their status at each stage of
the selection process.
A
m
ra
og
pr
the
for
d
te
na
mi
no
be
or
ly,
app
her
eit
may
candidate
12
on
ve 13
INFORMATION SUMMARY
FOR WHITE HOUSE FELLOWS
1. The White House Fellows will be designated by the
President of the United
mendations
President’s
The
States.
final recom-
to the President will be made
on White
Commission
House
by the
Fellows.
2. Individuals may apply or be nominated for the program, but a White House Fellows Application must
Applications will not
be submitted in either case.
be accepted from candidates overseas unless they will
return to the United States before regional interviews
are held.
3. Nominations may be made by an organization (normally the employing organization), or by an individual or group having special knowledge of the
Nominating letnominee’s abilities and potential.
ters should be addressed to the Chairman, Commis-
sion
on White
House
Fellows,
The
White
House,
Washington, D.C. 20500.
4. Applications will be accepted from persons who
will have attained the age of 23 but not the age of
Men and
36 by the beginning date of the program.
women from all occupations are eligible provided
they are citizens of the United States and graduates
of an accredited 4-year college.
5. The program begins each year in early September and
concludes in late August of the following year.
6. White
House
Fellows
receive
travel
stipend during their term of service.
costs
and
a
No other re-
muneration is permitted.
7. All inquiries and requests for application blanks
should be addressed to the Director, Commission on
White House Fellows, The White House, Washing-
ton, D.C. 20500.
w
15*
A hundred years from now, when historians look
back... 1 hope very much they will be able to say:
There, once again, was an era when the young men
and women of America and their Government belonged to each other—belonged to each other in fact
and ins pirit.
LYNDON B. JOHNSON
October 3, 1964
GPO
: 1966
O
- 228-003
mailing
previous
from
Omitted
THE
WHITE
ore oe
HOUSE
WASHINGTON
September 21, 1966
“yt
Larson:
6nteermengnncen
meme ee
I want to express my appreciation for your letter of
‘September 12, forwarding me the "Statement on the
Non-Proliferation of Atomic Weapons" by the Educational Committee to Halt Atomic Weapons Spread.
.
etie
Dr.
Oe eng
Dear
|
I share with you and your Committee a deep concern
about the spread of nuclear weapons which I1 consider
to be one of the most
serious
problems
of our time.
I sincerely hope that we can achieve agreement on
a Non-Proliferation Treaty that will contribute to
As I stated
stopping the spread of nuclear weapons.
recently, I believe that we can find acceptable compromise language on which reasonable men can agree.
I trust that you and your distinguished group:‘of
colleagues will continue your interest in this most
important problem. —
e
Dr. Arthur Larson, Chairman
Educational Committee to
Halt Atomic Weapons
Spread
|
345 East 46th Street
New York, New York 10017
ba
a
en
ee
eons
ee nee
ete
ae eee
atin an eae eter asin
li
A
tee ee
so
an seman
lh i
et
the oor ba tp ard
cm inareeniicenailt snhchattnstanittoem
anise
a + Be
-
anon cinennrantisteinmes
Vinlitesharclare stevie tetenneenaetpnty
Stats ¢
mettre
paca
pewter
mnneearon cnet te
ere
ene nee
a recone ernment ill
:
Mr,
:
Walter
\
\.
Come
To The
UNITED NATIONS
P. Reuther.
Preside
t
International
Union
United Automobile Workers
8000 East Jefferson Avenue
Detroit 14, Michizan
of
Ret FOn
(* NOV3-"66
Se
NN.
America
EDUCATIONAL
345
EAST
46th
COMMITTEE
STREET
TO
HALT
®
ATOMIC
NEW
WEAPONS
YORK,
N.
SPREAD
Y.
10017
THE
WHITE
HOUSE
WASHINGTON
The
some
President
was
looking
of his pictures
today
you might like to have
through
and thought
the enclosed.
famita D. Roberts
Personal Secretary
to
the
President
2 (766
|
SEP 26 1968
ruth cr
;
-
tm
erm
f.
cries ay
;
;
‘
ae ay
eee
he
rt
rey
°t +
eye feck
Pee
7+
7)
hs
a
eee,
An
ae
"t
7p)
AE
ee
ee
STRAIGHT
Mr.
The
WIRE
November
1,
1966
Sherwin Markman
White House
D.
C.
stains
Washington,
Deeply
regret my
schedule will deny me
the privilege and pleasure
accepting the President's invitation to attend signing of S.
3rd.
Walter
WPRiob
eeiu 42
P.
Reuther
of
985 on November
STRAIGHT
Mr.
The
WIRE
|
:
November
1,
1966
Sherwin Markman
White House
Washington,
Deeply
D.
regret my
C.
schedule will deny me
accepting the President's
the privilege and pleasure
invitation to attend Signing of S.
3rd.
Walter
WPRiob
oeiu 42
P.
Reuther
of
985 on November
Alaska
Rivers
California
Hagen
(2
Vewwvorns toto
O
i
Che
=
-- question of his being there
Tunney
Corman
New Jersey
New
Yreqe,
ba:
Gallagher
Howard
York
Dow
Colorado
Aspinall
Connecticut
Giaimo
New York City
Kelly
Florida
Matthews
North Dakata
Redlin
Dulski
ied
mst ae
i ill
tals
tial ist
tet
Evans
inanimate
Sb iki
tit
ti
ty Xsan hth
ninnacnttistntihin
dain
er
oe
asm
ia
:
elastic
yy,
Indiana
lowa
Kentucky
Michigan
Oklahoma
Hamilton
Stubblefield
ii
il
Albert
Edmondson
Steed
Roush
Culver
Greigg
Smith
i a
Sweeney
i
Schisler
Shipley
Hays
Moeller
nl
Illinois
Ohio
Oregon
Green
Tennessee
Evins
Texas
Pickle
Poage
Purscell
Vivian
Roberts
Thompson
Missouri
Montana
Sullivan
eee
Mackay
a
Georgia
Washington State
Foley
Hicks
Wyoming
Roncalio
Olsen
|
THE
WHITE
HOUSE
WASHINGTON
November
Dear
Mr.
10,
1966
Reuther:
Iam sorry you could not be with us when the
President signed S. 3708, the Demonstration
He has asked me to send you one
Cities Bill.
of the pens from that signing.
With
best
wishes.
Sincerely,
for
Aide
Mr.
Walter
President,
David’A. Bunn
Congressional Relations
Reuther,
United
1126 16th Street,
Washington, D.
Steelworkers
N.W.
C.
NOV 16 1966
6
6
9
1
,
2
2
r
e
b
m
e
c
e
D
Dear
President
Johnson:
Attached is the memorandum
on fiscal policy which
I promised when I had the privilege of visiting with you in
Austin,
I am most deeply concerned over the dangers that
I see in a budget that would be economically restrictive
whether because of tax increases or reductions in nonmilitary
spending.
On every occasion when I have had the opportunity
of exchanging ideas with you, my faith in you has been
strengthened by your deep sense of compassion for your fellowman and for your dedication and commitment to the cause of
peace.
My prayers are with you in your latest effort to
extend the cease fire agreement and to move the Vietnamese
struggle from the battlefield to the conference table.
day season.
I send my warmest best wishes for a joyous holi-
Respectfully,
WPR:ob
opeiu 42
President Lyndon B. Johnson
Johnson City,
Texas
FISCAL POLICY FOR
1967
Fiscal policy for 1967 and the period ahead must take full account
of the fact that the dangers flowing from unemployment and a slowdown in
Great Seciety programs are far more serious than the danger of sor e further
increase in the price level.
This nation cannot afford the further aggravation of racial tensions
and the detonation of the social dynamite in the nation's ghettos which are
inevitable if unemployment is aot further reduced and if promised help to the
victims of poverty is deferred.
taged at last aroused,
With the long-dormant hopes of the disadvan-
we can never again have peace of mind or peace in our
cities until assurance is provided of pre
mpt and certain fulfillment of those
hopes.
The danger on the price front is of an entirely different order.
The price problem is not generalized but sectoral.
It is not the kind of problem
that is appropriately dealt with by measures to restrain expansion of total
demand.
sher reduction
k furt
re
d bloc
su
Such meawoul
of anemployr
fact, current weaknesses in the economy suggest that even moderate restraints
on the growth of demand might well increase unemployment sharply and possibly
cause recession.
In any case,
some prices which have risen are now levelling
off or declining.
I therefore believe that fiscal policy in 1967 should:
--
be designed to promote economic growth at a rate
that will bring about a further significant reduction
of unemployment; and
--
assign first priority in nonmilitary government
spending to adequate funding of Great Society
programs even if that should require stretching
out of the space program,
highway construction
and other activities that do not directly affect
hurnan welfare and the quality of life in America.
t
cen
per
3
n
tha
re
mo
no
to
nt
me
oy
pl
em
un
ce
du
re
We should plan to
by the end of calendar year 1967.
unemployment,
From where we are now,
at 3.7 percent
that would require a reduction of a shade more than one-tenth
of one percent every two months.
Certainly that is not too ambitious a goal.
as
e
rat
e
sam
the
y
tel
ima
rox
app
at
P
GN
l
rea
in
se
rea
inc
an
It would require
6.
196
h
oug
thr
4
196
iod
per
the
ing
dur
ed
iev
ach
ly
ual
act
that
With that growth rate, as contrasted to one that would freeze
unemployment at present levels,
substantial additional revenues would be
available for Great Society programs without raising taxes.
There would
d.
ide
avo
be
to
ght
sou
one
the
n
tha
r
ate
gre
tly
vas
be
ld
wou
t
actual budget defici
The Eisenhower Administration,
ignoring serious weaknesses in the economy,
n
lio
bil
a
f
hal
of
s
plu
sur
a
ld
yie
to
ed
ign
des
9
195
submitted a budget for fiscal
dollars.
recession.
The restrictive nature of that budget retarded recovery from the
Unemployment
rose as high as 7.5 percent and averaged
»~ 3«
In fact,
.
k
c
a
b
t
u
c
g
n
i
e
b
o
s
l
a
s
i
n
o
i
product
there are economic
oles
production index,
after rising 9 percent in the preceding
reported.
declined twice in the last three months
12 months,
has
Housing construction is in
a depression from which recovery is expected to be slow even if money becomes
more freely available at lower interest rates.
fixed investment
The rate of growth in business
Inven-
spending is expected to be sharply reduced next year.
tory accumulation has been proceeding at an unsustainable rate and may be
replaced in the not too distant future by inventory reduction.
reflected in retail sales,
personal
is already lagging.
Consumption,
as
The abnormally low rate of
savings as a percent disposable personal income in the third quarter
and recent surveys of consumer buying plans both suggest a tapering off of the
rise in consumer
spending.
Aside from further increases in Vietnam
spending,
there appear
to be no important offsets to the current weaknesses in the economy.
While
the magnitude and timing of step-ups in military spending is an unknown,
press
reports suggest that the rate of increase in calendar year 1967 as a whole will
be less than in 1966.
Thus there is substantial basis for fear that,
increase in taxes or a reduction in government
even without an
civilian spending,
the pace of
growth in 1967 will be insufficient to prevent unemployment from increasing.
A tax increase or curtailment of nonmilitary government
almost certainly cause unemployment
spending would
to rise and might even bring on a
recession late in 1967 or early in 1968.
ats
4.
Otherwise,
taxes should be raised only if the increase
in Vietnam spending is so great that it would not only
carry us significantly below the 3 percent unemploy-
ment level but would raise total demand to a level
that would put intolerable strain on productive resources.
The Price
Problem
Such a fiscal policy,
admittedly,
corporations wielding excessive market
adverse
way,
however,
violence
power
effects on the balance of payments.
can be met by appropriate measures
would provide opportunity for
with consequent
to raise prices,
The price and payments
along lines outlined below.
problems
There is no
to prevent rising racial tensions and their explosion into
-- with all the grim social and political consequences for the future
of our society -- if unemployment
stabilizes at present levels or increases,
and if frustration mounts because of financial starvation of the government
programs
|
that have raised new hopes.
The price problem is manageable because there is no general excess
of demand.
There is a substantial unused margin of resources that can be
brought into play to balance
the unemployment rate,
supply with increases in demand.
although sharply reduced since
1961,
In November,
was still 3.7 percent
approximately twice as high as in the rest of the industrialized free world.
Manufacturing output in the third quarter of this year was only 91
percent of capacity.
Moreover,
rate of approximately 7 percent.
capacity is increasing
rapidly
-- at an annual
te
.
io Be
Higher rates of capacity utilization and lower rates of unemployment
can be consistent wits reasonable price stability.
That is evident from the
experience of the 12-month period from the fourth quarter of 1952 through the
third quarter of 1953.
and 96 percent.
Utilization rates during this period ranged between 95
The unemployment rate during the same period ranged between
2.6 and 3.0 percent.
Yet, even the removal of Korean War price controls in
March 1953 resulted in no major upsurge in prices.
month period,
During the entire 12other than farm
the increase in the index of wholesale prices,
products aad foods, was only 1.3 percent.
The Consumer
- Price Index increased
There is no danger of generalized inflation until demand presses
much more closely on the lirnits of labor and physical resources than it does at
present.
The rise in the price level that has occurred to date is due to
ny.
r
econo
the
of
rs
secto
cular
parti
in
ting
opera
special factors
il.
For example:
Prices of certain agricultural products rose because
of shortages.
z.
In the service component of the Consumer
Price Index,
shortages of professional personnel are a significant
factor in rising medical care costs; tight mor
rising interest rates have raised housing costs.
»~ B «
iting, abuses of market power contribute
to the increase in the general
price level as
vations raise prices even though their
ple and their capacity not fully utilized,
ty
vi
ti
uc
od
pr
ng
si
ri
y
dl
pi
ra
om
fr
s
in
ga
e
th
of
increased volume.
4.
s
t
i
f
o
r
p
e
v
i
s
Exces
obtained
ti
practices have fueled an investment
boo
k
a
e
p
e
h
t
w
o
l
e
b
t
n
e
c
r
e
p
ly down more than 14
d
e
h
c
s year. The ind
i
a
h
h
c
t
f
r
o
a
e
M
n
i
r
products and foods has fluctuated within a very narrow range ever since
July 1966, in ce
t to its previ mus rather rapid rise.
Inflationary pressures
in the ca
expect
to taper
ed off as the expected slowdo
inwn
the growth rate of capital
investment materializes.
a @ »
Profits generally are at levels high enough to permit absorption
without price increases of wage increases far larger than those likely to be
negotiated.
In fact, profits in many industries are at levels which would
permit reductions in prices even after meeting the cost of substantial wage
increases.
Under the circumstances,
mechanism
that the UAW
the Price-Wage Review Board
has proposed should be put into eneaatinn
both to
restrain unjustifiable price increases and to bring about substantial reductions
in existing prices that are clearly excessive.
applied,
without legislation,
(The mechanism
could be
to price leading corporations in major industries
on a voluntary basis similar to the so-called voluntary controls" now applied
to the overseas investments of designated corporations.)
Price reductions
thus brought about would offset unavoidable price increases in other sectors
of the economy.
The more stable price level thus achieved would lessen pres-
sure for wage increases
required to preserve the living standards
of workers'
families against erosion by rising prices.
Clearly,
there are no strong inflationary pressures
-- certainly
no general excess of demand -- that would dictate a policy of fiscal restraint.
Balance of Payments
The greater degree of price stability attainable through the
Price-Wage Review Beard mechanism,
improving the balance of payments.
of itself, would contribute to
There is room for additional improvement
be of
l
car would
U. S.-made emal
consumers
in
et gh
te
ma
gage
more than 7 percent of the U. S. car market
«hie
if the rise in w
g
n
i
v
o
r
p
m
i
at
d
e
t
c
e
r
i
d
s
m
a
r
g
o
r
p
r
e
h
t
o
n
o
d
n
a
y
t
r
e
v
o
war on p
t
low-income families -- for hope would vanish along with jobs.
Every recent outbreak of violence in the nation's
ow
bel
y
all
nti
sta
sub
d
uce
red
is
ent
oym
mpl
une
l
unti
t
sis
per
will
ce,
len
vio
in
up
ation among Negroes fuels
Social disorder result:
the “white backlash."
wn
toebe knoag
what has com
The backlash will
-olitical factor until the root
physical resources -- is also sound politics.
edve
impro
ir
liy to do whatever is requto
uman welfare and the quality of life in America at an expediti ous pace.
we cannot afford, socially or |
itically,
we waste human resources in idleness.
is to defer such improvement
What
whi
Fiscal policy for 1967 should be
guided and inspired by our hopes for the Great
Society
tion that can be avoided by vigorous applicati
- Item sets