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Peterson Commission Report on Executive Salaries, December 12-31, 1976
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The original documents are located in Box 6, folder "Peterson Commission Report on
Executive Salaries, December 12-31, 1976" of the White House Special Files Unit Files at
the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 6 of the White House Special Files Unit Files at the Gerald R. Ford Presidential Library
THE PRESIDENT HAS SEEN
December 13, 1976
2:40 pm
JTL
Telephone message from Peter Peterson
Mr. Lipschutz just phoned Mr. Peterson. He told him that Governor
Carter, Mondale, Lance and Lipschutz met last night for an extended
period on the Quadcom recommendations. Their recommendations
are as follows:
(1) With major efforts on their part to hold the line on wages and
prices, they think it is extemely important that Carter in his new
role engage in a mammoth effort to hold the line.
(2) Consistent with that, they believe that Quadcom recommendation
should be cut in half. Happy New Year!
(3) It is not that they don't think that what Quadcom is recommen-
ding is completely justified, they think the climate that needs to
be set at the government level should be an example for the rest of
the country.
(4) On the code of public conduct the Governor is all with us on that
and will want to have his own code released reasonably soon for
the Executive Branch to set an example. While they believe that
it should be tied together, i.e., reform and salaries, Mondale
hopes we don't need to be too specific on details at this time.
E. G., Mondale says that the House people don't earn many
honorariums and about half of the Senate is wealthier and they
count more on investment income. (I told Lipschutz that I don't
agree with the concept that investment income -- particularly
with public disclosure and tougher conflict of interest rules -- is
the same as honoraria which is often made in the hope of getting
legislative support
)
(5) Lance will be in touch w/JTL to review this, which I strongly
encourage. I am dying to have them get it as precise as possible.
-2-
(6) I told Lipschutz that I would have to think over my own reactions
to this but that we much appreciated their cooperation.
Reminder -- When PGP established contact, he indicated Lipschutz
was to be the official channel so he (PGP) thinks this is as precise
as we will get, particularly ;if it confirmed by Lance.
PGP anxious to talk w/you.
G
THE WHITE HOUSE
EYES ONLY - FOR THE PRESIDENT
FROM JIM LYNN
1/15
Trudy:
Nell said they had been
holding this material
on the Exec. Salaries
in case the P. needed
it. I've logged out
and held for you.
S.
THE
PAIN
SEEN
...
THE WHITE HOUSE
WASHINGTON
December 13, 1976
MEMORANDUM FOR:
THE PRESIDENT
FROM:
MIKE DUVAL Mille
SUBJECT:
Follow-up on Peterson Commission
Report.
Attached is a letter from Pete Peterson presenting his
further thoughts on his Commission's recommendations (Tab A).
Max Friedersdorf's office has provided a copy of the House
and Senate rules of Conduct (Tab B).
Phil Buchen's office has summarized the rules of conduct
applicable to the Executive Branch (Tab C). We are still
waiting for a copy of the rules governing the Judiciary.
Once it is in hand, I will prepare a summary chart for all
three branches.
Attachments
TAB A
Lehman Brothers
Incorporated
One William Street
New-York,N.,N.1001
PETER G. PETERSON
CHAIRMAN OF THE BOARD
December 10, 1976
The President
The White House
Washington, D.C. 20500
Dear Mr. President:
As you have requested, I have given additional thought to
the manner in which the measures recommended for a Code of
Public Conduct by the Commission on Executive, Legislative and
Judicial Salaries can be made most effective.
Most Americans can be persuaded, I believe, to have their
public servants compensated for full-time work where they need
not depend on outside sources of income. That is essential if
Government is not to be limited to the rich, or to the young and
untried, or to those willing to compromise themselves with polit-
ical money. Certainly, the sordid events of the past several
years render the time ripe for an initiative such as the one you
are contemplating.
You know far better than I, however, that if the Congress
is to support this initiative and embody it in legislation, we
must be sensitive to the independence of the other branches --
the Legislative branch, in particular -- and their anxiety to
preserve their own prerogatives. Because of your long experi-
ence, I hesitate to suggest the tactics that might help assure
Congressional support. But, for what it is worth, you might give
thought to the following scenario:
1. As an obvious first step, you would probably wish to
meet soon with the Congressional leaders. In the course of that
meeting, you could review the report of the Commission and solicit
their advice as to how its recommendations could best be carried
out. You might also consult with them as to the best means to
assure the support of the Carter Administration both for the re-
forms and the pay adjustments the report recommends.
- 2 -
Mr. President
December 10, 1976
As one way to get a visible, tangible Congressional
commitment to a timetable for specific action and to invite
maximum public discussion, you might encourage the Congressional
leadership to have the appropriate committees of the Congress
complete public hearings on these questions as soon as possible.
Since it is clearly essential that Congress feel pub-
licly committed to what should be perceived as a joint initiative,
you might also wish to invite the leaders to express their views
to the press at the conclusion of the meeting. In this same
spirit, you may want to acknowledge recent statements -- for ex-
ample by Speaker O'Neill -- urging the need for a new and more
rigorous Code of Ethics.
I guess I am saying that a generous, bi-partisan even
Bicentennial spirit may also turn out to be the most pragmatic
approach.
2. Following the meeting with the Congressional leader-
ship, you might hold a separate meeting with the Chief Justice
and other representatives of the Judiciary. Similar public com-
mitments by the Chief Justice at a press briefing immediately
following such a meeting would be helpful.
3. In your State of the Union message and even in the
Budget message, you might make a strong statement of the need
to modernize federal compensation schedules for all three
branches of the government, making clear that your proposals for
adjusting those schedules are based on the assumption that
Congress will also enact the reform measures required, considering
the commitments you will already have received. As to the
nature of the "linkage" of reform to pay increases, we under-
stand it may be difficult to link the reform explicitly to the
pay increase and still preserve the 30-day-option tied to your
Budget message. However, you might make it clear that your
support of the recommended pay increases is dependent on their
enacting those reform measures and that, if the Congress does
not see fit to do so, you cannot regard such pay increases as
justified. Put another way, if they do not feel they can make
a timely and comprehensive commitment to reform, you would
certainly understand why they would not want to permit the pay
increases to go through.
- 3 -
Mr. President
December 10, 1976
4. In your conversations with the Congress, you should
make clear that the Commission we have recommended to develop
appropriate codes of conduct will have only powers to recommend,
and that the leaders of the three coordinate branches must make
the final decisions.
We would presume that the Constitutional requirements
for separateness of the three branches may require separate "ap-
propriate authorities" to administer the new Codes of Public
Conduct for the different branches. However, I would still ad-
vise an outside Commission of outstanding private citizens --
such as our Caplin Task Force on Public Conduct -- to recommend
precise guidelines for a new Code. My reasons include: (1) the
need to maintain continuing public pressure to get first-rate
Codes implemented on a timely and agreed schedule; (2) such a
Commission could help insure that the overall standards of the
Codes were kept uniformly high for each of the three branches
and that the general principles were essentially the same -- even
though the Codes might differ in the specific detail for the
three branches.
5. Our proposals for reform are limited, of course, to
those related to questions of compensation. It would be pre-
sumptuous of us to suggest the many other areas -- such as addi-
tional reform in campaign financing, or mandatory age, or
seniority retirement provisions -- which might be encompassed
in a larger program of reform that you might want to recommend.
6. To me, it would seem wise for you to defer judgment
for now on public meetings to symbolize the commitment of the
three branches to a timely implementation of new Codes of Public
Conduct.
7. As a body of private citizens, we realize that our
responsibilities include playing a continuing role of public
education. Over the next few weeks, I trust you will be pleased
to see a growing number of editorials, articles, media appearances
and perhaps even an open letter addressed to you, President-elect
Carter, the Congress and the Judiciary urging support of the broad
recommendations of the report.
We see the Commission's proposals as forming the basis for
a major initiative on your part that could be long remembered
with the approval of the whole American people. History might
- 4 -
Mr. President
December 10, 1976
record no finer monument to your administration than the rejuve-
nation of public trust and confidence in our political system
and the people who administer it.
All of us stand prepared to assist you in any way possible.
With best wishes.
Respectfully,
Pours.
Peter G. Peterson
TAB B
22
RULES OF THE
one additional representative of each
to transmit to the officer in charge with
2. A Member, officer, or employee of
press association.
the settlement thereof the papers on file
the House of Representatives shall ad-
3. Such portion of the gallery of the
in his office relating to such claim, or
here to the spirit and the letter of the
House of Representatives as may be nec-
may loan temporarily to an officer or
Rules of the House of Representatives
essary to accommodate reporters of news
bureau of the executive departments any
and to the rules of duly constituted com-
to be disseminated by radio, television,
papers on file in his office relating to any
mittees thereof.
and similar means of transmission, wish-
matter pending before such officer or
3. A Member, officer, or employee of
ing to report debates and proceedings,
bureau, taking proper receipt therefor.
the House of Representatives shall re-
shall be set aside for their use, and rep-
ceive no compensation nor shall he per-
RULE XXXVIII
utable reporters thus engaged shall be
mit any compensation to accrue to his
admitted thereto under such regulations
BALLOT
beneficial interest from any source, the
as the Speaker may from time to time
In all cases of ballot a majority of the
receipt of which would occur by virtue
prescribe; and the supervision of such
votes given shall be necessary to an elec-
or influence improperly exerted from his
gallery, including the designation of its
tion, and where there shall not be such
position in the Congress.
employees, shall be vested in the Execu-
a majority on the first ballot the ballots
4. A Member, officer, or employee of
tive Committee of the Radio and Tele-
shall be repeated until a majority be ob-
the House of Representatives shall ac-
vision Correspondents' Galleries, subject
tained; and in all balloting blanks shall
cept no gift of substantial value, directly
to the direction and control of the
be rejected and not taken into the count
or indirectly, from any person, organiza-
Speaker; and the Speaker may admit to
in enumeration of votes or reported by
tion, or corporation having a direct in-
the floor, under such regulations as he
the tellers.
terest in legislation before the Congress.
may prescribe, one representative of the
RULE XXXIX
5. A Member, officer, or employee of
National Broadcasting Company, one
MESSAGES
the House of Representatives shall ac-
of the Columbia Broadcasting System,
Messages received from the Senate and
cept no honorarium for a speech, writing
one of the Mutual Broadcasting System,
the President of the United States, giv-
for publication, or other similar activity,
and one of the American Broadcasting
ing notice of bills passed or approved,
from any person, organization, or cor-
Company.
shall be entered in the Journal and pub-
poration in excess of the usual and cus-
RULE XXXV
lished in the Record of that day's pro-
tomary value for such services.
PAY OF WITNESSES
ceedings.
6. A Member of the House of Repre-
The rule for paying witnesses sub-
RULE XL
entatives shall keep his campaign funds
separate from his personal funds. Unless
penaed to appear before the House or
EXECUTIVE COMMUNICATIONS
specifically provided by law, he shall
any of its committees shall be as fol-
Estimates, or appropriations and all
convert no campaign funds to personal
lows: For each day a witness shall at-
other communications from the execu-
use in excess of reimbursement for legit-
tend, the sum of twenty dollars; and
tive departments, intended for the con-
imate and verifiable prior campaign ex-
actual expenses of travel in coming to or
sideration of any committees of the
penditures and he shall expend no funds
going from the place of examination,
House, shall be addressed to the Speaker,
from his campaign account not attribut-
not to exceed twelve cents per mile; but
and by him referred as provided by clause
able to bona fide campaign purposes.
nothing shall be paid for travel when
2 of Rule XXIV.
the witness has been summoned at the
7. A Member of the House of Repre-
place of examination.
RULE XLI
sentatives shall treat as campaign con-
tributions all proceeds from testimonial
RULE XXXVI
QUALIFICATIONS OF OFFICERS AND
dinners or other fund raising events if
EMPLOYEES
PAPERS
the sponsors of such affairs do not give
No person shall be an officer of the
clear notice in advance to the donors or
1. The clerks of the several commit-
tees of the House shall, within three
House, or continue in its employment,
participants that the proceeds are in-
days after the final adjournment of a
who shall be an agent for the prosecution
tended for other purposes.
Congress, deliver to the Clerk of the
of any claim against the Government, or
8. A Member of the House of Repre-
House all bills, joint resolutions, peti-
be interested in such claim otherwise
sentatives shall retain no one from his
tions, and other papers referred to the
than as an original claimant; and it shall
clerk hire allowance who does not per-
committee, together with all evidence
be the duty of the Committee on House
form duties commensurate with the
taken by such committee under the order
Administration to inquire into and report
compensation he receives.
of the House during the said Congress
to the House any violation of this rule.
As used in this Code of Official Con-
and not reported to the House; and in
RULE XLII
duct of the House of Representatives-
the event of the failure or neglect of any
(a) the terms "Member" and "Member
clerk of a committee to comply with this
GENERAL PROVISIONS
of the House of Representatives" in-
rule the Clerk of the House shall, within
The rules of parliamentary practice
clude the Resident Commissioner from
three days thereafter, take into his keep-
comprised in Jefferson's Manual and the
Puerto Rico and each Delegate to the
ing all such papers and testimony.
provisions of the Legislative Reorganiza-
House and (b) the term "officer or em-
2. At the close of each Congress the
tion Act of 1946, as amended, shall gov-
ployee of the House of Representatives"
Clerk of the House shall obtain all non-
ern the House in all cases to which they
means any individual whose compensa-
current records of the House and each
are applicable, and in which they are
tion is disbursed by the Clerk of the
committee thereof and transfer them to
not inconsistent with the standing rules
House of Representatives.
the General Services Administration for
and orders of the House and joint rules
9. A Member, officer or employee of
preservation subject to the order of the
of the Senate and House of Representa-
the House of Representatives shall not
House. In making the transfer, the Clerk
tives.
discharge or refuse to hire any individ-
may act jointly with the Secretary of the
RULE XLIII
ual or otherwise discriminate against
Senate.
CODE OF OFFICIAL CONDUCT
any individual with respect to compen-
RULE XXXVII
There is hereby established by and for
sation, terms, conditions, or privileges
WITHDRAWAL OF PAPERS
the House of Representatives the fol-
of employment. because of such individ-
No memorial or other paper presented
lowing code of conduct, to be known as
ual's race, color, religion, sex, or national
to the House shall be withdrawn from
the "Code of Official Conduct";
origin. see para. #10 attached
its files without its leave, and if with-
RULE XLIV
1. A Member, officer, or employee of
drawn therefrom certified copies thereof
the House of Representatives shall con-
FINANCIAL DISCLOSURE
shall be left in the office of the Clerk;
duct himself at all times in a manner
Members. officers, principal assistants
but when an act may pass for the settle-
which shall reflect creditably on the
to Members and officers, and professional
ment of a claim, the Clerk is authorized
House of Representatives.
staff members of committees shall not
Rule XLIII Paragraph 10 added in 94th Congress
10. A Member of the House of Representatives who has been
convicted by a Court of Record. for the commission of a crime
for which a sentence of two or more years imprisonment may
be imposed should refrain from participation in the business
of each committee of which he is a member and should refrain
from voting on any question at a meeting of the House, or
of the Committee of the Whole House unless or until judicial
or executive proceedings result in the reinstatement of the
presumption of his innocence or until he is re-elected to
the House after the date of such conviction.
HOUSE OF REPRESENTATIVES
R 23
later than April 30, 1969, and by April 30
ment) exceeding $1,000 in each instance.
2 and 3 of part A, and the amount of
of each year thereafter, file with the
(d) Honorariums from a single source
indebtedness owed to each creditor listed
Committee on Standards of Official Con-
aggregating $300 or more.
under paragraph 4 of part A.
duct a report disclosing certain financial
4. List each creditor to whom the per-
The information filed under this part
interests as provided in this rule. The
son reporting was indebted for a period
B shall be sealed by the person filing and
interest of a spouse or any other party,
of ninety consecutive days or more dur-
shall remain sealed unless the Commit-
if constructively controlled by the person
ing the preceding calendar year in an
tee on Standards of Official Conduct,
reporting, shall be considered to be the
aggregate amount in excess of $10,000,
pursuant to its investigative authority,
same as the interest of the person report-
excluding any indebtedness specifically
determines by a vote of not less than
ing. The report shall be in two parts as
secured by the pledge of assets of the
seven members of the committee that the
follows:
person reporting of appropriate value.
examination of such information is es-
PART A
Campaign receipts shall not be in-
sential in an official investigation by the
1. List the name, instrument of owner-
cluded in this report.
committee and promptly notifies the
ship, and any position of management
Information filed under part A shall
Members concerned of any such determi-
held in any business entity doing a sub-
be maintained by the committee on
nation. The committee may, by a vote
stantial business with the Federal Gov-
Standards of Official Conduct and made
of not less than seven members of the
ernment or subject to Federal regulatory
available at reasonable hours to respon-
committee, make public any portion of
agencies, in which the ownership is in
sible public inquiry, subject to such reg-
the information unsealed by the commit-
excess of $5,000 fair market value as of
ulations as the committee may prescribe
tee under the preceding sentence and
the date of filing or from which income
including, but not limited to, regulations
which the committee deems to be in the
or $1,000 or more was derived during the
requiring identification by name, occu-
public interest.
preceding calendar year. Do not list any
pation, address, and telephone number
Any person required to file a report
time or demand deposit in a financial in-
of each person examining information
under this rule who has no interests
stitution, or any debt instrument having
filed under part A, and the reason for
covered by any of the provisions of this
a fixed yield unless it is convertible to an
each such inquiry.
rule shall file a report, under part A only
equity instrument.
The committee shall promptly notify
of this rule, as stating.
2. List the name, address, and type of
each person required to file a report un-
In any case in which a person required
practice of any professional organization
der this rule of each instance of an ex-
to file a sealed report under part B of
in which the person reporting, or his
amination of his report. The committee
this rule is no longer required to file such
spouse, is an officer, director, or partner,
shall also promptly notify a Member of
a report, the committee shall return to
or serves in any advisory capacity, from
each examination of the reports filed by
such person, or his legal representative,
which income of $1,000 or more was de-
his principal assistants and of each ex-
all sealed reports filed by such person
rived during the preceding calendar year.
amination of the reports of professional
under part B and remaining in the pos-
3. List the source of each of the fol-
staff members of committees who are
session of the committee.
lowing items received during the preced-
responsible to such Member.
As used in this rule-(1) the term
ing calendar year: (a) Any income for
"Members" includes the Resident Com-
PART B
services rendered (other than from the
missioner from Puerto Rico and each
United States Government) exceeding
1. List the fair market value (as of the
Delegate to the House; and (2) the
$5,000. (b) Any capital gain from a
date of filing) of each item listed under
term "committees" includes any com-
single source exceeding $5,000, other
paragraph 1 of part A and the income
mittee or subcommittee of the House
than from the sale of a residence oc-
derived therefrom during the preceding
of Representatives and any joint com-
cupied by the person reporting. (c)
calendar year.
mittee of Congress, the expenses of
Reimbursement for expenditures (other
2. List the amount of income derived
which are paid from the contingent fund
than from the United States Govern-
from each item listed under paragraphs
of the House of Representatives.
STANDING ORDERS OF THE SENATE
[79.5]
he
of the contingent fund of the Senate for the expenses of the
en,
Commission the sum of $15,000 each fiscal year, to be dis-
en-
bursed by the Secretary of the Senate on vouchers signed
ies
by the Chairman or Vice Chairman of the Commission:
the
Provided, That no payment shall be made from such appro-
gs,
priation as salary.
(S. Jour. 836, 90-2, Oct. 1, 1968.
the
COMMISSION ON ART AND ANTIQUITIES OF THE UNITED STATES [79.5]
SENATE-ADDITIONAL AUTHORITY
the
and
Resolved, That (a) the Commission on Art and Antiquities
ion
of the United States Senate, in addition to any authority
ber-
conferred upon it by Senate Resolution 382, Ninetieth
ical
Congress, agreed to October 1, 1968, is authorized to ac-
be-
quire any work of art, historical object, document or ma-
1 as
terial relating to historical matters, or exhibit for placement
ion,
or exhibition in the Senate wing of the Capitol, the Senate
bitol
Office Buildings, or in rooms, spaces, or corridors thereof.
(b) This resolution shall be effective as of March 1, 1971.
the
[S. Jour. 232-233, 92-1, Apr. 1, 1971.
r on
STANDARDS OF CONDUCT FOR MEMBERS OF THE SENATE AND [79.6]
ofar
OFFICERS AND EMPLOYEES OF THE SENATE
pitol
Resolved, It is declared to be the policy of the Senate
that-
it at
(a) The ideal concept of public office, expressed by the
ent a
words, "A public office is a public trust", signifies that the
cur-
officer has been entrusted with public power by the people;
enate
that the officer holds this power in trust to be used only for
tion,
their benefit and never for the benefit of himself or of a few;
story.
and that the officer must never conduct his own affairs so as
d out
to infringe on the public interest. All official conduct of
121
37-195 O 75 9
[79.7]
STANDING ORDERS OF THE SENATE
Members of the Senate should be guided by this paramount
Ar
concept of public office.
the
(b) These rules, as the written expression of certain
standards of conduct, complement the body of unwritten
but generally accepted standards that continue to apply to
the Senate.
SEC. 2. The Standing Rules of the Senate are amended
by adding at the end thereof the following new rules:
*
(1)
*
*
*
[S. Jour. 247, 90-2, Mar. 22, 1968.
DE
[79.7] APPOINTMENT FOR THE SENATE OF PAGES, ELEVATOR OPERA-
:
TORS, POST OFFICE EMPLOYEES, OR CAPITOL POLICEMEN
1
WITHOUT DISCRIMINATION ON ACCOUNT OF SEX
I
Resolved, That no individual shall be denied appointment
1
as a Senate page, elevator operator, or post office employee,
or as a Capitol policeman whose compensation is disbursed
by the Secretary of the Senate, solely on the basis of sex.
In the case of Senate pages, however, until such time as the
fireproof building containing dormitory and classroom
facilities, as authorized by section 492 of the Legislative
Reorganization Act of 1970, is constructed and the pages
are living under appropriate supervision in such building,
the Sergeant at Arms of the Senate shall promulgate and
have in effect regulations for the appointment of pages of
the Senate requiring that no female page shall be appointed
by a Senator until the Senator files with the Sergeant at
1 This resolution added four new rules to the Standing Rules of the Senate, which are
S
numbered XLI, XLII, XLIII, and XLIV and are found as Senate Manual sections [41],
[42], [43], and [44]. respectively.
Sen
to i
122
STANDING RULES OF THE SENATE
[40]
during the
except original treaties transmitted to the Senate by the
d upon at
President of the United States, and finally acted upon by
de to the
the Senate, shall be delivered from the office of the Secretary
adjourn or
without an order of the Senate for that purpose.
ominations
RULE XL
[40]
of taking
the Secre-
SUSPENSION AND AMENDMENT OF THE RULES
considered
No motion to suspend, modify, or amend any rule, or
te by the
any part thereof, shall be in order, except on one day's
notice in writing, specifying precisely the rule or part pro-
posed to be suspended, modified, or amended, and the
the printer
purpose thereof. Any rule may be suspended without
the proceed-
ons recalled,
notice by the unanimous consent of the Senate, except as
1885.)
otherwise provided in clause 1, Rule XII.
RULE XLI 1
[41]
rters with a
ay on which
OUTSIDE BUSINESS OR PROFESSIONAL ACTIVITY OR EMPLOY-
d rejections.
MENT BY OFFICERS OR EMPLOYEES
1. No officer or employee whose salary is paid by the [41.1]
to the public
d on the day
Senate may engage in any business or professional activity
3 ordered by
or employment for compensation unless-
, 2, 1894.)
(a) the activity or employment is not inconsistent
nor in conflict with the conscientious performance of his
official duties; and
ECORDS OF
(b) he has reported in writing when this rule takes
effect or when his office or employment starts and on
m time to
the 15th day of May in each year thereafter the nature
ript of the
of any personal service activity or employment to his
er extract
supervisor. The supervisor shall then, in the discharge
the Secre-
1 S. Jour. 247, 90-2, Mar. 22, 1968.
no paper,
65
[41.2]
STANDING RULES OF THE SENATE
of his duties, take such action as he considers necessary
Majori
for the avoidance of conflict of interest or interference
and
with duties to the Senate.
(i) tl
[41.2]
2. For the purpose of this rule-
Secreta
(a) a Senator or the Vice President is the supervisor
Minori
of his administrative, clerical, or other assistants;
3. This ri
(b) a Senator who is the chairman of a committee
is the supervisor of the professional, clerical, or other
assistants to the committee except that minority staff
members shall be under the supervision of the ranking
1. A Sen
minority Senator on the committee;
made know
(c) a Senator who is a chairman of a subcommittee
or who has
which has its own staff and financial authorization is the
tion, or on
supervisor of the professional, clerical, or other assistants
or petition
to the subcommittee except that minority staff members
directly or
shall be under the supervision of the ranking minority
nomination
Senator on the subcommittee;
of United S
(d) the President pro tempore is the supervisor of the
(a) a
Secretary of the Senate, Sergeant at Arms and Door-
in his }
keeper, the Chaplain, and the employees of the Office of
the Legislative Counsel;
fui
(e) the Secretary of the Senate is the supervisor of
we
the employees of his office;
(f) the Sergeant at Arms and Doorkeeper is the
ing
supervisor of the employees of his office;
fur
(g) the Majority and Minority Leaders and the Ma-
(b) :
jority and Minority Whips are the supervisors of the
Senato
research, clerical, or other assistants assigned to their
the so
respective offices;
receive
(h) the Majority Leader is the supervisor of the
1 8. Jour. 247, 90
Secretary for the Majority. The Secretary for the
66
STANDING RULES OF THE SENATE
[41.3]
lecessary
Majority is the supervisor of the employees of his office;
erference
and
(i) the Minority Leader is the supervisor of the
Secretary for the Minority. The Secretary for the
ipervisor
Minority is the supervisor of the employees of his office.
3. This rule shall take effect ninety days after adoption.
[41.3]
mmittee
RULE XLII 1
[42]
or
other
staff
CONTRIBUTIONS
ranking
1. A Senator or person who has declared or otherwise [42.1]
made known his intention to seek nomination or election,
ommittee
or who has filed papers or petitions for nomination or elec-
is
the
tion, or on whose behalf a declaration or nominating paper
assistants
or petition has been made or filed, or who has otherwise,
members
directly or indirectly, manifested his intention to seek
minority
nomination or election, pursuant to State law, to the office
of United States Senator, may accept a contribution from-
of
the
(a) a fundraising event organized and held primarily
Door-
in his behalf, provided-
Office
of
(1) he has expressly given his approval of the
fundraising event to the sponsors before any funds
ervisor
of
were raised; and
(2) he receives a complete and accurate account-
is
the
ing of the source, amounts, and disposition of the
funds raised; or
the
Ma-
(b) an individual or an organization, provided the
of
the
Senator makes a complete and accurate accounting of
to
their
the source, amount, and disposition of the funds
received; or
of
the
1 S. Jour. 247, 90-2, Mar. 22, 1968.
for
the
67
[42.2]
STANDING RULES OF THE SENATE
(c) his political party when such contributions were
from a fundraising event sponsored by his party,
POLI
without giving his express approval for such fund-
1. I
raising event when such fundraising event is for the
Senate
purpose of providing contributions for candidates of
any ft
his party and such contributions are reported by the
tion f
Senator or candidate for Senator as provided in
Memt
paragraph (b).
prohit
[42.2]
2. The Senator may use the contribution only to influence
who h
his nomination for election, or his election, and shall not use,
the fu
directly or indirectly, any part of any contribution for any
and w
other purpose, except as otherwise provided herein.
annun
[42.3]
3. Nothing in this rule shall preclude the use of contri-
filed "
butions to defray expenses for travel to and from each
Senate
Senator's home State; for printing and other expenses in
inspec
connection with the mailing of speeches, newsletters, and
2. J
reports to a Senator's constituents; for expenses of radio,
television, and news media methods of reporting to a
Senator's constituents; for telephone, telegraph, postage, and
stationery expenses in excess of allowance; and for newspaper
subscriptions from his home State.
1. E
[42.4]
4. All gifts in the aggregate amount or value of $50 or
made
more received by a Senator from any single source during a
who h
year, except a gift from his spouse, child, or parent, and
or on
except a contribution under sections 1 and 2, shall be reported
petitic
under rule XLIV.
or ind
5. This rule shall take effect ninety days after adoption.
or ele
[42.5]
States
who i:
'8. Jou
68
STANDING RULES OF THE SENATE
[43]
were
RULE XLIII 1
[43]
party,
POLITICAL FUND ACTIVITY BY OFFICERS AND EMPLOYEES
fund-
1. No officer or employee whose salary is paid by the [43.1]
or
the
Senate may receive, solicit, be the custodian of, or distribute
of
any funds in connection with any campaign for the nomina-
by
the
tion for election, or the election of any individual to be a
in
Member of the Senate or to any other Federal office. This
prohibition does not apply to any assistant to a Senator
fluence
who has been designated by that Senator to perform any of
use,
the functions described in the first sentence of this paragraph
for
any
and who is compensated at a rate in excess of $10,000 per
annum if such designation has been made in writing and
contri-
filed with the Secretary of the Senate. The Secretary of the
each
Senate shall make the designation available for public
in
inspection.
and
2. This rule shall take effect sixty days after adoption.
[43.2]
radio,
to
a
RULE XLIV 1
[44]
and
DISCLOSURE OF FINANCIAL INTERESTS
vspaper
1. Each Senator or person who has declared or otherwise [44.1]
$50
or
made known his intention to seek nomination or election, or
uring
a
who has filed papers or petitions for nomination or election,
and
or on whose behalf a declaration or nominating paper or
eported
petition has been made or filed, or who has otherwise, directly
or indirectly, manifested his intention to seek nomination
ption.
or election, pursuant to State law, to the office of United
States Senator, and each officer or employee of the Senate
who is compensated at a rate in excess of $15,000 a year,
18. Jour. 247, 90-2, Mar. 22, 1968.
69
[44.1]
STANDING RULES OF THE SENATE
shall file with the Comptroller General of the United States,
in a sealed envelope marked "Confidential Personal Financial
Disclosure of
(Name)
", before the
15th day of May in each year, the following reports of his
personal financial interests:
(a) a copy of the returns of taxes, declarations, state-
ments, or other documents which he, or he and his spouse
jointly, made for the preceding year in compliance with
the income tax provisions of the Internal Revenue Code;
(b) the amount or value and source of each fee or com-
pensation of $1,000 or more received by him during the
fil
preceding year from a client;
tr
(c) the name and address of each business or profes-
ke
sional corporation, firm, or enterprise in which he was
Se
an officer, director, partner, proprietor, or employee who
re
received compensation during the preceding year and
tr
the amount of such compensation;
an
(d) the identity of each interest in real or personal
G
property having a value of $10,000 or more which he
ta
owned at any time during the preceding year;
re
(e) the identity of each trust or other fiduciary rela-
be
tion in which he held a beneficial interest having a value
ad
of $10,000 or more, and the identity if known of each
an
interest of the trust or other fiduciary relation in real or
by
personal property in which the Senator, officer, or
co
employee held a beneficial interest having a value of
CO
$10,000 or more, at any time during the preceding year.
th
co
70
STANDING RULES OF THE SENATE
[44.2]
tates,
If he cannot obtain the identity of the fiduciary interests,
ancial
the Senator, officer, or employee shall request the
fiduciary to report that information to the Comptroller
the
General in the same manner that reports are filed under
his
this rule;
of
(f) the identity of each liability of $5,000 or more
owed by him, or by him and his spouse jointly, at any
state-
time during the preceding year; and
pouse
(g) the source and value of all gifts in the aggregate
with
amount or value of $50 or more from any single source
Code;
received by him during the preceding year.
com-
2. Except as otherwise provided by this section, all papers [44.2]
the
filed under section 1 of this rule shall be kept by the Comp-
troller General for not less than seven years, and while SO
profes-
kept shall remain sealed. Upon receipt of a resolution of the
was
Select Committee on Standards and Conduct, adopted by a
who
recorded majority vote of the full committee, requesting the
and
transmission to the committee of any of the reports filed by
any individual under section 1 of this rule, the Comptroller
ersonal
General shall transmit to the committee the envelopes con-
he
taining such reports. Within a reasonable time after such
recorded vote has been taken, the individual concerned shall
rela-
be informed of the vote to examine and audit, and shall be
value
advised of the nature and scope of such examination. When
of
each
any sealed envelope containing any such report is received
real
or
by the committee, such envelope may be opened and the
or
contents thereof may be examined only by members of the
of
committee in executive session. If, upon such examination,
year.
the committee determines that further consideration by the
committee is warranted and is within the jurisdiction of the
71
[44.3]
STANDING RULES OF THE SENATE
committee, it may make the contents of any such envelope
available for any use by any member of the committee, or
any member of the staff of the committee, which is required
for the discharge of his official duties. The committee may
receive the papers as evidence, after giving to the individual
concerned due notice and opportunity for hearing in a closed
session. The Comptroller General shall report to the Select
Committee on Standards and Conduct not later than the
1st day of June in each year the names of Senators, officers,
and employees who have filed a report. Any paper which
has been filed with the Comptroller General for longer than
seven years, in accordance with the provisions of this section,
shall be returned to the individual concerned or his legal
representative. In the event of the death or termination of
service of a Member of the Senate, an officer or employee,
such papers shall be returned unopened to such individual,
or to the surviving spouse or legal representative of such
individual within one year of such death or termination
of service.
[44.3]
3. Each Senator or person who has declared or other-
wise made known his intention to seek nomination or elec-
tion, or who has filed papers or petitions for nomination or
election, or on whose behalf a declaration or nominating paper
or petition has been made or filed, or who has otherwise, di-
rectly or indirectly, manifested his intention to seek nomina-
tion or election, pursuant to State law, to the office of United
States Senator, and each officer or employee of the Senate who
is compensated at a rate in excess of $15,000 a year, shall file
with the Secretary of the Senate, before the 15th day of May
in each year, the following reports of his personal financial
interests:
72
STANDING RULES OF THE SENATE
[44.4]
(a) the accounting required by rule XLII for all
contributions received by him during the preceding year,
except that contributions in the aggregate amount or
value of less than $50 received from any single source
during the reporting period may be totaled without
further itemization; and
(b) the amount or value and source of each hono-
the
rarium of $300 or more received by him during the pre-
ceding year.
4. All papers filed under section 3 of this rule shall be kept [44.4]
by the Secretary of the Senate for not less than three years
and shall be made available promptly for public inspection
and copying.
of
5. This rule shall take effect on July 1, 1968. No reports [44.5]
yee,
shall be filed for any period before office or employment was
lual,
held with the Senate, or during a period of office or employ-
such
ment with the Senate of less than ninety days in a year;
except that the Senator, or officer or employee of the Senate,
may file a copy of the return of taxes for the year 1968, or
ther-
a report of substantially equivalent information for only the
elec-
effective part of the year 1968.
or
paper
di-
mina-
United
who
file
May
nancial
73
37-195 O 75 5
TAB C
STANDARDS OF CONDUCT APPLICABLE
TO THE EXECUTIVE BRANCH
Certain legal requirements governing the standards
of conduct and potential conflicts of interest are
applicable to each member of the Executive Branch.
Additionally, all employees paid at a level equivalent
to GS 13 and above, including consultants, are required
to complete and file certain forms calling for
employment and financial information.
(a) Authorities. Each officer and employee of
the Executive Branch is subject to regulations
promulgated by his agency under the authority
of Executive Order 11222 (May 8, 1965)
governing his or her conduct. Additionally,
certain types of conduct are proscribed by
the federal conflict of interest statute
(18 U.S.C. 201 et seq.).
(b) Conflicts in General. A "conflict of
interest" refers to any situation in which
a government official has an actual or
apparent personal interest in the outcome
of a matter which he or she is in a position
to influence through decision, recommendation,
advice or other formal or informal action.
A violation of law does not require an
intent to favor one's personal interest,
and cannot be overcome by a showing of the
absence of such an intent. Participation,
by itself, in a matter in which one has
an interest is unlawful.
(c) Other Constraints. Set forth below are a
number of illustrations of prohibitive
conduct:
Regulatory Agencies. Executive Branch
personnel are generally prohibited
from making contacts with regulatory
agencies regarding matters under
adjudication or within the rule-
making process. Moreover, any
contact with such agencies normally
requires clearance by an official
at the policy-making level.
-2-
Lobbying. If carried on with appropriated
funds, lobbying is expressly prohibited
by law.
Political Activity. Political activity
by Executive Branch personnel is subject
to numerous criminal and civil restrictions.
Misuse of Information. Disclosure of
classified or other confidential information
is, of course, prohibited. Additionally,
Executive Branch personnel must avoid
the fact or appearance of using information
obtained in the course of one's official
duties for private gain.
Gifts. Receipt of gifts, payment of
travel, lodging, entertainment and other
expenses, or receipt of speaking
honoraria are generally prohibited.
Appearance of Impropriety. Executive
Branch personnel are directed to be
ever sensitive to avoid the appearance
of acting on behalf of some private
interest or of a conflict or other
impropriety which can be fully as
damaging as the real thing.
(d) Objectives. As a general statement, it might
be said that the statutes and regulations which
are applicable to personnel within the Executive
Branch are directed to insure the achievement
of the following objectives:
The fair, impartial and equal treatment
of those dealing with the government;
The assurance that government decisions
will not be influenced by an employee's
private interests;
The maintenance of public confidence in
the integrity of government operations;
The prevention of use of public office
for private gain; and
The prevention of any impediment to the
efficiency and economy of government
business.
THE WHITE HOUSE
WASHINGTON
December 13, 1976
MEMORANDUM FOR:
THE PRESIDENT
FROM:
MIKE DUVAL Wille
SUBJECT:
Follow-up on Peterson Commission
Report.
Attached is a letter from Pete Peterson presenting his
further thoughts on his Commission's recommendations (Tab A).
Max Friedersdorf's office has provided a copy of the House
and Senate rules of Conduct (Tab B).
Phil Buchen's office has summarized the rules of conduct
applicable to the Executive Branch (Tab C). We are still
waiting for a copy of the rules governing the Judiciary.
Once it is in hand, I will prepare a summary chart for all
three branches.
Attachments
LehmanBrothers
Incorporated
One Milliam Street
New-York,N.,N.1001
PETER G. PETERSON
CHAIRMAN OF THE BOARD
December 10, 1976
The President
The White House
Washington, D.C. 20500
Dear Mr. President:
As you have requested, I have given additional thought to
the manner in which the measures recommended for a Code of
Public Conduct by the Commission on Executive, Legislative and
Judicial Salaries can be made most effective.
Most Americans can be persuaded, I believe, to have their
public servants compensated for full-time work where they need
not depend on outside sources of income. That is essential if
Government is not to be limited to the rich, or to the young and
untried, or to those willing to compromise themselves with polit-
ical money. Certainly, the sordid events of the past several
years render the time ripe for an initiative such as the one you
are contemplating.
You know far better than I, however, that if the Congress
is to support this initiative and embody it in legislation, we
must be sensitive to the independence of the other branches --
the Legislative branch, in particular -- and their anxiety to
preserve their own prerogatives. Because of your long experi-
ence, I hesitate to suggest the tactics that might help assure
Congressional support. But, for what it is worth, you might give
thought to the following scenario:
1. As an obvious first step, you would probably wish to
meet soon with the Congressional leaders. In the course of that
meeting, you could review the report of the Commission and solicit
their advice as to how its recommendations could best be carried
out. You might also consult with them as to the best means to
assure the support of the Carter Administration both for the re-
forms and the pay adjustments the report recommends.
THE WHITE HOUSE
WASHINGTON
December 13, 1976
MEMORANDUM FOR:
THE PRESIDENT
FROM:
MIKE DUVAL Wille
SUBJECT:
Follow-up on Peterson Commission
Report.
Attached is a letter from Pete Peterson presenting his
further thoughts on his Commission's recommendations (Tab A).
Max Friedersdorf's office has provided a copy of the House
and Senate rules of Conduct (Tab B).
Phil Buchen's office has summarized the rules of conduct
applicable to the Executive Branch (Tab C). We are still
waiting for a copy of the rules governing the Judiciary.
Once it is in hand, I will prepare a summary chart for all
three branches.
Attachments
Lehman Brothers
Incorporated
One Milliam Street
New-York.,N.10001
PETER G. PETERSON
CHAIRMAN OF THE BOARD
December 10, 1976
The President
The White House
Washington, D.C. 20500
Dear Mr. President:
As you have requested, I have given additional thought to
the manner in which the measures recommended for a Code of
Public Conduct by the Commission on Executive, Legislative and
Judicial Salaries can be made most effective.
Most Americans can be persuaded, I believe, to have their
public servants compensated for full-time work where they need
not depend on outside sources of income. That is essential if
Government is not to be limited to the rich, or to the young and
untried, or to those willing to compromise themselves with polit-
ical money. Certainly, the sordid events of the past several
years render the time ripe for an initiative such as the one you
are contemplating.
You know far better than I, however, that if the Congress
is to support this initiative and embody it in legislation, we
must be sensitive to the independence of the other branches --
the Legislative branch, in particular -- and their anxiety to
preserve their own prerogatives. Because of your long experi-
ence, I hesitate to suggest the tactics that might help assure
Congressional support. But, for what it is worth, you might give
thought to the following scenario:
1. As an obvious first step, you would probably wish to
meet soon with the Congressional leaders. In the course of that
meeting, you could review the report of the Commission and solicit
their advice as to how its recommendations could best be carried
out. You might also consult with them as to the best means to
assure the support of the Carter Administration both for the re-
forms and the pay adjustments the report recommends.
- 2 -
Mr. President
December 10, 1976
As one way to get a visible, tangible Congressional
commitment to a timetable for specific action and to invite
maximum public discussion, you might encourage the Congressional
leadership to have the appropriate committees of the Congress
complete public hearings on these questions as soon as possible.
Since it is clearly essential that Congress feel pub-
licly committed to what should be perceived as a joint initiative,
you might also wish to invite the leaders to express their views
to the press at the conclusion of the meeting. In this same
spirit, you may want to acknowledge recent statements -- for ex-
ample by Speaker O'Neill -- urging the need for a new and more
rigorous Code of Ethics.
I guess I am saying that a generous, bi-partisan even
Bicentennial spirit may also turn out to be the most pragmatic
approach.
2. Following the meeting with the Congressional leader-
ship, you might hold a separate meeting with the Chief Justice
and other representatives of the Judiciary. Similar public com-
mitments by the Chief Justice at a press briefing immediately
following such a meeting would be helpful.
3. In your State of the Union message and even in the
Budget message, you might make a strong statement of the need
to modernize federal compensation schedules for all three
branches of the government, making clear that your proposals for
adjusting those schedules are based on the assumption that
Congress will also enact the reform measures required, considering
the commitments you will already have received. As to the
nature of the "linkage" of reform to pay increases, we under-
stand it may be difficult to link the reform explicitly to the
pay increase and still preserve the 30-day-option tied to your
Budget message. However, you might make it clear that your
support of the recommended pay increases is dependent on their
enacting those reform measures and that, if the Congress does
not see fit to do so, you cannot regard such pay increases as
justified. Put another way, if they do not feel they can make
a timely and comprehensive commitment to reform, you would
certainly understand why they would not want to permit the pay
increases to go through.
- 3 -
Mr. President
December 10, 1976
4. In your conversations with the Congress, you should
make clear that the Commission we have recommended to develop
appropriate codes of conduct will have only powers to recommend,
and that the leaders of the three coordinate branches must make
the final decisions.
We would presume that the Constitutional requirements
for separateness of the three branches may require separate "ap-
propriate authorities" to administer the new Codes of Public
Conduct for the different branches. However, I would still ad-
vise an outside Commission of outstanding private citizens --
such as our Caplin Task Force on Public Conduct -- to recommend
precise guidelines for a new Code. My reasons include: (1) the
need to maintain continuing public pressure to get first-rate
Codes implemented on a timely and agreed schedule; (2) such a
Commission could help insure that the overall standards of the
Codes were kept uniformly high for each of the three branches
and that the general principles were essentially the same -- even
though the Codes might differ in the specific detail for the
three branches.
5. Our proposals for reform are limited, of course, to
those related to questions of compensation. It would be pre-
sumptuous of us to suggest the many other areas -- such as addi-
tional reform in campaign financing, or mandatory age, or
seniority retirement provisions -- which might be encompassed
in a larger program of reform that you might want to recommend.
6. To me, it would seem wise for you to defer judgment
for now on public meetings to symbolize the commitment of the
three branches to a timely implementation of new Codes of Public
Conduct.
7. As a body of private citizens, we realize that our
responsibilities include playing a continuing role of public
education. Over the next few weeks, I trust you will be pleased
to see a growing number of editorials, articles, media appearances
and perhaps even an open letter addressed to you, President-elect
Carter, the Congress and the Judiciary urging support of the broad
recommendations of the report.
We see the Commission's proposals as forming the basis for
a major initiative on your part that could be long remembered
with the approval of the whole American people. History might
- 4 -
Mr. President
December 10, 1976
record no finer monument to your administration than the rejuve-
nation of public trust and confidence in our political system
and the people who administer it.
All of us stand prepared to assist you in any way possible.
With best wishes.
Respectfully,
Per Paun
Peter G. Peterson
22
RULES OF THE
one additional representative of each
to transmit to the officer in charge with
2. A Member, officer, or employee of
press association.
the settlement thereof the papers on file
the House of Representatives shall ad-
3. Such portion of the gallery of the
in his office relating to such claim, or
here to the spirit and the letter of the
House of Representatives as may be nec-
may loan temporarily to an officer or
Rules of the House of Representatives
essary to accommodate reporters of news
bureau of the executive departments any
and to the rules of duly constituted com-
to be disseminated by radio, television,
papers on file in his office relating to any
mittees thereof.
and similar means of transmission, wish-
matter pending before such officer or
3. A Member, officer, or employee of
ing to report debates and proceedings,
bureau, taking proper receipt therefor.
the House of Representatives shall re-
shall be set aside for their use, and rep-
ceive no compensation nor shall he per-
RULE XXXVIII
utable reporters thus engaged shall be
mit any compensation to accrue to his
admitted thereto under such regulations
BALLOT
beneficial interest from any source, the
as the Speaker may from time to time
In all cases of ballot a majority of the
receipt of which would occur by virtue
prescribe: and the supervision of such
votes given shall be necessary to an elec-
or influence improperly exerted from his
gallery. including the designation of its
tion, and where there shall not be such
position in the Congress.
employees, shall be vested in the Execu-
a majority on the first ballot the ballots
4. A Member, officer, or employee of
tive Committee of the Radio and Tele-
shall be repeated until a majority be ob-
the House of Representatives shall ac-
vision Correspondents' Galleries, subject
tained; and in all balloting blanks shall
cept no gift of substantial value, directly
to the direction and control of the
be rejected and not taken into the count
or indirectly, from any person, organiza-
Speaker: and the Speaker may admit to
in enumeration of votes or reported by
tion, or corporation having a direct in-
the floor, under such regulations as he
the tellers.
terest in legislation before the Congress.
may prescribe, one representative of the
RULE XXXIX
5. A Member, officer, or employee of
National Broadcasting Company, one
MESSAGES
the House of Representatives shall ac-
of the Columbia Broadcasting System.
Messages received from the Senate and
cept no honorarium for a speech, writing
one of the Mutual Broadcasting System.
the President of the United States, giv-
for publication, or other similar activity,
and one of the American Broadcasting
ing notice of bills passed or approved,
from any person, organization, or cor-
Company.
shall be entered in the Journal and pub-
poration in excess of the usual and cus-
RULE XXXV
lished in the Record of that day's pro-
tomary value for such services.
ceedings.
6. A Member of the House of Repre-
PAY OF WITNESSES
The rule for paying witnesses sub-
RULE XL
entatives shall keep his campaign funds
separate from his personal funds. Unless
penaed to appear before the House or
EXECUTIVE COMMUNICATIONS
specifically provided by law. he shall
any of its committees shall be as fol-
Estimates, or appropriations and all
convert no campaign funds to personal
lows: For each day a witness shall at-
other communications from the execu-
use in excess of reimbursement for legit-
tend, the sum of twenty dollars; and
tive departments, intended for the con-
imate and verifiable prior campaign ex-
actual expenses of travel in coming to or
sideration of any committees of the
penditures and he shall expend no funds
going from the place of examination,
House, shall be addressed to the Speaker,
from his campaign account not attribut-
not to exceed twelve cents per mile; but
and by him referred as provided by clause
able to bona fide campaign purposes.
nothing shall be paid for travel when
2 of Rule XXIV.
7. A Member of the House of Repre-
the witness has been summoned at the
place of examination.
RULE XLI
sentatives shall treat as campaign con-
tributions all proceeds from testimonial
RULE XXXVI
QUALIFICATIONS OF OFFICERS AND
dinners or other fund raising events if
EMPLOYEES
PAPERS
the sponsors of such affairs do not give
No person shall be an officer of the
clear notice in advance to the donors or
1. The clerks of the several commit-
tees of the House shall, within three
House, or continue in its employment,
participants that the proceeds are in-
days after the final adjournment of a
who shall be an agent for the prosecution
tended for other purposes.
Congress, deliver to the Clerk of the
of any claim against the Government, or
8. A Member of the House of Repre-
House all bills, joint resolutions, peti-
be interested in such claim otherwise
sentatives shall retain no one from his
tions, and other papers referred to the
than as an original claimant; and it shall
clerk hire allowance who does not per-
committee, together with all evidence
be the duty of the Committee on House
form duties commensurate with the
taken by such committee under the order
Administration to inquire into and report
compensation he receives.
of the House during the said Congress
to the House any violation of this rule.
As used in this Code of Official Con-
and not reported to the House; and in
RULE XLII
duct of the House of Representatives-
the event of the failure or neglect of any
(a) the terms "Member" and "Member
clerk of a committee to comply with this
GENERAL PROVISIONS
of the House of Representatives" in-
rule the Clerk of the House shall. within
The rules of parliamentary practice
clude the Resident Commissioner from
three days thereafter. take into his keep-
comprised in Jefferson's Manual and the
Puerto Rico and each Delegate to the
ing all such papers and testimony.
provisions of the Legislative Reorganiza-
House and (b) the term "officer or em-
2. At the close of each Congress the
tion Act of 1946. as amended. shall gov-
ployee of the House of Representatives"
Clerk of the House shall obtain all non-
ern the House in all cases to which they
means any individual whose compensa-
current records of the House and each
are applicable, and in which they are
tion is disbursed by the Clerk of the
committee thereof and transfer them to
not inconsistent with the standing rules
House of Representatives.
the General Services Administration for
and orders of the House and joint rules
9. A Member, officer or employee of
preservation subject to the order of the
of the Senate and House of Representa-
the House of Representatives shall not
House. In making the transfer. the Clerk
tives.
discharge or refuse to hire any individ-
may act jointly with the Secretary of the
RULE XLIII
ual or otherwise discriminate against
Senate.
CODE OF OFFICIAL CONDUCT
any individual with respect to compen-
RULE XXXVII
There is hereby established by and for
sation, terms. conditions. or privileges
WITHDRAWAL OF PAPERS
the House of Representatives the foi-
of employment. because of such individ-
No memorial or other paper presented
ual's race. color. religion, sex, or national
lowing code of conduct. to be known as
to the House shall be withdrawn from
origin. see para. #10 attached
the "Code of Official Conduct";
its files without its leave, and if with-
RULE XLIV
1. A Member. officer. or employee of
drawn therefrom certified copies thereof
the House of Representatives shall con-
FINANCIAL DISCLOSURE
shall be left in the office of the Clerk;
duct hiniself at all times in a manner
Members. officers. principal assistants
but when an act may pass for the settle-
which shall reflect creditably on the
to Members and officers. and professional
ment of a claim, the Clerk is authorized
House of Representatives.
staff members of committees shall not
HOUSE OF REPRESENTATIVES
R 23
later than April 30, 1069. and by April 30
ment) exceeding $1,000 in each instance.
2 and 3 of part A. and the amount of
of each year thereafter, file with the
(d) Honorariums from a single source
indebtedness owed to each creditor listed
Committee on Standards of Official Con-
aggregating $300 or more.
under paragraph 4 of part A.
duct a report disclosing certain financial
4. List each creditor to whom the per-
The information filed under this part
interests as provided in this rule. The
son reporting was indebted for a period
E shall be sealed by the person filing and
interest of a spouse or any other party,
of ninety consecutive days or more dur-
shall remain sealed unless the Commit-
if constructively controlled by the person
ing the preceding calendar year in an
tee on Standards of Official Conduct.
reporting. shall be considered to be the
aggregate amount in excess of $10,000,
pursuant to its investigative authority,
same as the interest of the person report-
excluding any indebtedness specifically
determines by a vote of not less than
ing. The report shall be in two parts as
secured by the pledge of assets of the
seven members of the committee that the
follows:
person reporting of appropriate value.
examination of such information is es-
PART A
Campaign receipts shall not be in-
sential in an official investigation by the
1. List the name, instrument of owner-
cluded in this report.
committee and promptly notifies the
ship, and any position of management
Information filed under part A shall
Members concerned of any such determi-
held in any business entity doing a sub-
be maintained by the committee on
nation. The committee may, by a vote
stantial business with the Federal Gov-
Standards of Official Conduct and made
of not less than seven members of the
ernment or subject to Federal regulatory
available at reasonable hours to respon-
committee, make public any portion of
agencies. in which the ownership is in
sible public inquiry, subject to such reg-
the information unsealed by the commit-
excess of $5,000 fair market value as of
ulations as the committee may prescribe
tee under the preceding sentence and
the date of filing or from which income
including, but not limited to, regulations
which the committee deems to be in the
or $1,000 or more was derived during the
requiring identification by name, occu-
public interest.
preceding calendar year. Do not list any
pation, address, and telephone number
Any person required to file a report
time or demand deposit in a financial in-
of each person examining information
under this rule who has no interests
stitution. or any debt instrument having
filed under part A, and the reason for
covered by any of the provisions of this
a fixed yield unless it is convertible to an
each such inquiry.
rule shall file a report, under part A only
equity instrument.
The committee shall promptly notify
of this rule, as stating.
2. List the name. address, and type of
each person required to file a report un-
In any case in which a person required
practice of any professional organization
der this rule of each instance of an ex-
to file a sealed report under part B of
in which the person reporting, or his
amination of his report. The committee
this rule is no longer required to file such
spouse. is an officer, director, or partner,
shall also promptly notify a Member of
a report, the committee shall return to
or serves in any advisory capacity, from
each examination of the reports filed by
such person, or his legal representative,
which income of $1,000 or more was de-
his principal assistants and of each ex-
all sealed reports filed by such person
rived during the preceding calendar year.
amination of the reports of professional
under part B and remaining in the pos-
3. List the source of each of the fol-
staff members of committees who are
session of the committee.
lowing items received during the preced-
responsible to such Member.
As used in this rule-(1) the term
ing calendar year: (a) Any income for
"Members" includes the Resident Com-
PART B
services rendered (other than from the
missioner from Puerto Rico and each
United States Government) exceeding
1. List thefair market value (as of the
Delegate to the House; and (2) the
$5,000. (b) Any capital gain from a
date of filing) of each item listed under
term "committees" includes any com-
single source exceeding $5,000, other
paragraph 1 of part A and the income
mittee or subcommittee of the House
than from the sale of a residence OC-
derived therefrom during the preceding
of Representatives and any joint com-
cupied by the person reporting. (c)
calendar year.
mittee of Congress, the expenses of
Reimbursement for expenditures (other
2. List the amount of income derived
which are paid from the contingent fund
than from the United States Govern-
from each item listed under paragraphs
of the House of Representatives.
Rule XLIII Paragraph 10 added in 94th Congress
10. A Member of the House of Representatives who has been
convicted by a Court of Record for the commission of a crime
for which a sentence of two or more years imprisonment may
be imposed should refrain from participation in the business
of each committee of which he is a member and should refrain
from voting on any question at a meeting of the House, or
of the Committee of the Whole House unless or until judicial
or executive proceedings result in the reinstatement of the
presumption of his innocence or until he is re-elected to
the House after the date of such conviction.
STANDING ORDERS OF THE SENATE
[79.5]
of the contingent fund of the Senate for the expenses of the
Commission the sum of $15,000 each fiscal year, to be dis-
bursed by the Secretary of the Senate on vouchers signed
by the Chairman or Vice Chairman of the Commission:
Provided, That no payment shall be made from such appro-
priation as salary.
[8. Jour. 836, 90-2, Oct. 1. 1968.
COMMISSION ON ART AND ANTIQUITIES OF THE UNITED STATES [79.5]
SENATE-ADDITIONAL AUTHORITY
Resolved, That (a) the Commission on Art and Antiquities
of the United States Senate, in addition to any authority
conferred upon it by Senate Resolution 382, Ninetieth
Congress, agreed to October 1, 1968, is authorized to ac-
quire any work of art, historical object, document or ma-
IS
terial relating to historical matters, or exhibit for placement
or exhibition in the Senate wing the Capitol, the Senate
ol
Office Buildings, or in rooms, spaces, or corridors thereof.
(b) This resolution shall be effective as of March 1, 1971.
ne
(S. Jour. 232-233, 92-1, Apr. 1, 1971.
STANDARDS OF CONDUCT FOR MEMBERS OF THE SENATE AND [79.6]
OFFICERS AND EMPLOYEES OF THE SENATE
Resolved, It is declared to be the policy of the Senate
that-
(a) The ideal concept of public office, expressed by the
a
words, "A public office is a public trust", signifies that the
officer has been entrusted with public power by the people;
ate
that the officer holds this power in trust to be used only for
on,
their benefit and never for the benefit of himself or of a few;
ry.
and that the officer must never conduct his own affairs so as
out
to infringe on the public interest. All official conduct of
121
37-195 0-78-9
[79.7]
STANDING ORDERS OF THE SENATE
Members of the Senate should be guided by this paramount
concept of public office.
(b) These rules, as the written expression of certain
standards of conduct, complement the body of unwritten
but generally accepted standards that continue to apply to
the Senate.
SEC. 2. The Standing Rules of the Senate are amended
by adding at the end thereof the following new rules:
(1)
[S. Jour. 247, 90-2, Mar. 22, 1968.
[79.7] APPOINTMENT FOR THE SENATE OF PAGES, ELEVATOR OPERA-
TORS, POST OFFICE EMPLOYEES, OR CAPITOL POLICEMEN
WITHOUT DISCRIMINATION ON ACCOUNT OF SEX
Resolved, That no individual shall be denied appointment
as a Senate page, elevator operator, or post office employee,
or as a Capitol policeman whose compensation is disbursed
by the Secretary of the Senate, solely on the basis of sex.
In the case of Senate pages, however, until such time as the
fireproof building containing dormitory and classroom
facilities, as authorized by section 492 of the Legislative
Reorganization Act of 1970, is constructed and the pages
are living under appropriate supervision in such building,
the Sergeant at Arms of the Senate shall promulgate and
have in effect regulations for the appointment of pages of
the Senate requiring that no female page shall be appointed
by a Senator until the Senator files with the Sergeant at
1 This resolution added four new rules to the Standing Rules of the Senate, which are
numbered XLI, XLII, XLIII, and XLIV and are found as Senate Manual sections [41],
[42], [43], and [44]. respectively.
122
STANDING RULES OF THE SENATE
[40]
the
except original treaties transmitted to the Senate by the
at
President of the United States, and finally acted upon by
to
the
the Senate, shall be delivered from the office of the Secretary
or
without an order of the Senate for that purpose.
nations
RULE XL
[40]
taking
Secre-
SUSPENSION AND AMENDMENT OF THE RULES
sidered
No motion to suspend, modify, or amend any rule, or
by
the
any part thereof, shall be in order, except on one day's
notice in writing, specifying precisely the rule or part pro-
posed to be suspended, modified, or amended, and the
printer
purpose thereof. Any rule may be suspended without
proceed-
notice by the unanimous consent of the Senate, except as
recalled,
otherwise provided in clause 1, Rule XII.
RULE XLI 1
[41]
with
a
on
which
OUTSIDE BUSINESS OR PROFESSIONAL ACTIVITY OR EMPLOY-
ejections.
MENT BY OFFICERS OR EMPLOYEES
1. No officer or employee whose salary is paid by the [41.1]
the
public
Senate may engage in any business or professional activity
the
day
rdered
by
or employment for compensation unless-
1894.)
(a) the activity or employment is not inconsistent
nor in conflict with the conscientious performance of his
official duties; and
ORDS
OF
(b) he has reported in writing when this rule takes
effect or when his office or employment starts and on
time
to
the 15th day of May in each year thereafter the nature
of
the
of any personal service activity or employment to his
extract
supervisor. The supervisor shall then, in the discharge
he
Secre-
1 8. Jour. 247, 90-2, Mar. 22, 1963.
paper,
65
[41.2]
STANDING RULES OF THE SENATE
of his duties, take such action as he considers necessary
M.
for the avoidance of conflict of interest or interference
and
with duties to the Senate.
[41.2]
2. For the purpose of this rule-
Seen
(a) a Senator or the Vice President is the supervisor
Mi:
of his administrative, clerical, or other assistants;
3. The
(b) a Senator who is the chairman of a committee
is the supervisor of the professional, clerical, or other
assistants to the committee except that minority staff
members shall be under the supervision of the ranking
1. A
minority Senator on the committee;
made
(c) a Senator who is a chairman of a subcommittee
or who
which has its own staff and financial authorization is the
tion, or
supervisor of the professional, clerical, or other assistants
or petit
to the subcommittee except that minority staff members
directly
shall be under the supervision of the ranking minority
nomine
Senator on the subcommittee;
of Unite
(d) the President pro tempore is the supervisor of the
Secretary of the Senate, Sergeant at Arms and Door-
in his
keeper, the Chaplain, and the employees of the Office of
the Legislative Counsel;
(e) the Secretary of the Senate is the supervisor of
the employees of his office;
(f) the Sergeant at Arms and Doorkeeper is the
supervisor of the employees of his office;
(g) the Majority and Minority Leaders and the Ma-
(b)
jority and Minority Whips are the supervisors of the
Send
research, clerical, or other assistants assigned to their
the
respective offices;
receiv
(h) the Majority Leader is the supervisor of the
a B. Jour. 247,
Secretary for the Majority. The Secretary for the
66
&
GERALD
STANDING RULES OF THE SENATE
[41.3]
Majority is the supervisor of the employees of his office;
and
(i) the Minority Leader is the supervisor of the
Secretary for the Minority. The Secretary for the
Minority is the supervisor of the employees of his office.
3. This rule shall take effect ninety days.after adoption. [41.3]
RULE XLII'
[42]
CONTRIBUTIONS
1. A Senator or person who has declared or otherwise [42.1]
made known his intention to seek nomination or election,
or who has filed papers or petitions for nomination or elec-
the
tion, or on whose behalf a declaration or nominating paper
or petition has been made or filed, or who has otherwise,
directly or indirectly, manifested his intention to seek
nomination or election, pursuant to State law, to the office
of United States Senator, may accept a contribution from-
the
(a) a fundraising event organized and held primarily
oor-
in his behalf, provided—
of
(1) he has expressly given his approval of the
fundraising event to the sponsors before any funds
of
were raised; and
(2) he receives a complete and accurate account-
the
ing of the source, amounts, and disposition of the
funds raised; or
Ma-
(b) an individual or an organization, provided the
the
Senator makes a complete and accurate accounting of
heir
the source, amount, and disposition of the funds
received; or
the
8 8. Jour. 247, 90-2, Mar. 22, 1968.
the
67
[42.2]
STANDING RULES OF THE SENATE
(c) his political party when such contributions were
from a fundraising event sponsored by his party,
without giving his express approval for such fund-
raising event when such fundraising event is for the
purpose of providing contributions for candidates of
his party and such contributions are reported by the
Senator or candidate for Senator as provided in
paragraph (b).
[42.2]
2. The Senator may use the contribution only to influence
his nomination for election, or his election, and shall not use,
directly or indirectly, any part of any contribution for any
other purpose, except as otherwise provided herein.
[42.3]
3. Nothing in this rule shall preclude the use of contri-
butions to defray expenses for travel to and from each
Senator's home State; for printing and other expenses in
connection with the mailing of speeches, newsletters, and
reports to a Senator's constituents; for expenses of radio,
television and news media methods of reporting to a
Senator's constituents; for telephone, telegraph, postage, and
stationery expenses in excess of allowance; and for newspaper
subscriptions from his home State.
[42.4]
4. All gifts in the aggregate amount or value of $50 or
more received by a Senator from any single source during a
year, except a gift from his spouse, child, or parent, and
or
except a contribution under sections 1 and 2, shall be reported
under rule XLIV.
or
[42.5]
5. This rule shall take effect ninety days after adoption.
or
Stat
who
68
STANDING RULES OF THE SENATE
[43]
RULE XLIII 1
[43]
POLITICAL FUND ACTIVITY BY OFFICERS AND EMPLOYEES
and-
1. No officer or employee whose salary is paid by the [43.1]
the
Senate may receive, solicit, be the custodian of, or distribute
of
any funds in connection with any campaign for the nomina-
the
tion for election, or the election of any individual to be a
in
Member of the Senate or to any other Federal office. This
prohibition does not apply to any assistant to a Senator
who has been designated by that Senator to perform any of
use,
the functions described in the first sentence of this paragraph
any
and who is compensated at a rate in excess of $10,000 per
annum if such designation has been made in writing and
ntri-
filed with the Secretary of the Senate. The Secretary of the
each
Senate shall make the designation available for public
in
inspection.
and
2. This rule shall take effect sixty days after adoption.
[43.2]
to
a
RULE XLIV 1
[44]
and
DISCLOSURE OF FINANCIAL INTERESTS
paper
1. Each Senator or person who has declared or otherwise [44.1]
or
made known his intention to seek nomination or election, or
a
who has filed papers or petitions for nomination or election,
and
or on whose behalf a declaration or nominating paper or
orted
petition has been made or filed, or who has otherwise, directly
or indirectly, manifested his intention to seek nomination
or election, pursuant to State law, to the office of United
States Senator, and each officer or employee of the Senate
who is compensated at a rate in excess of $15,000 a year,
18. Jour. 247, 90-2, Mar. 22, 1968.
69
[44.1]
STANDING RULES OF THE SENATE
shall file with the Comptroller General of the United States,
in a sealed envelope marked "Confidential Personal Financial
Disclosure of
(Name)
" , before the
15th day of May in each year, the following reports of his
personal financial interests:
(a) a copy of the returns of taxes, declarations, state-
ments, or other documents which he, or he and his spouse
jointly, made for the preceding year in compliance with
the income tax provisions of the Internal Revenue Code;
(b) the amount or value and source of each fee or com-
pensation of $1,000 or more received by him during the
preceding year from a client;
(c) the name and address of each business or profes-
sional corporation, firm, or enterprise in which he was
an officer, director, partner, proprietor, or employee who
received compensation during the preceding year and
the amount of such compensation;
(d) the identity of each interest in real or personal
property having a value of $10,000 or more which he
owned at any time during the preceding year;
(e) the identity of each trust or other fiduciary rela-
tion in which he held a beneficial interest having a value
of $10,000 or more, and the identity if known of each
interest of the trust or other fiduciary relation in real or
personal property in which the Senator, officer, or
employee held a beneficial interest having a value of
$10,000 or more, at any time during the preceding year.
70
STANDING RULES OF THE SENATE
[44.2]
If he cannot obtain the identity of the fiduciary interests,
the Senator, officer, or employee shall request the
fiduciary to report that information to the Comptroller
the
General in the same manner that reports are filed under
his
this rule;
(f) the identity of each liability of $5,000 or more
owed by him, or by him and his spouse jointly, at any
tate-
time during the preceding year; and
(g) the source and value of all gifts in the aggregate
with
amount or value of $50 or more from any single source
ode;
received by him during the preceding year.
com-
2. Except as otherwise provided by this section, all papers [44.2]
the
filed under section 1 of this rule shall be kept by the Comp-
troller General for not less than seven years, and while so
ofes-
kept shall remain sealed. Upon receipt of a resolution of the
was
Select Committee on Standard and Conduct, adopted by a
who
recorded majority vote of the full committee, requesting the
and
transmission to the committee of any of the reports filed by
any individual under section 1 of this rule, the Comptroller
General shall transmit to the committee the envelopes con-
he
taining such reports. Within a reasonable time after such
recorded vote has been taken, the individual concerned shall
rela-
be informed of the vote to examine and audit, and shall be
value
advised of the nature and scope of such examination. When
each
any sealed envelope containing any such report is received
or
by the committee, such envelope may be opened and the
or
contents thereof may be examined only by members of the
of
committee in executive session. If, upon such examination,
year.
the committee determines that further consideration by the
committee is warranted and is within the jurisdiction of the
71
[44.3]
STANDING RULES OF THE SENATE
committee, it may make the contents of any such envelope
available for any use by any member of the committee, or
any member of the staff of the committee, which is required
for the discharge of his official duties. The committee may
receive the papers as evidence, after giving to the individual
concerned due notice and opportunity for hearing in a closed
session. The Comptroller General shall report to the Select
Committee on Standards and Conduct not later than the
1st day of June in each year the names of Senators, officers,
and employees who have filed a report. Any paper which
has been filed with the Comptroller General for longer than
seven years, in accordance with the provisions of this section,
shall be returned to the individual concerned or his legal
representative. In the event of the death or termination of
service of a Member of the Senate, an officer or employee,
such papers shall be returned unopened to such individual,
or to the surviving spouse or legal representative of such
individual within one year of such death or termination
of service.
[44.3]
3. Each Senator or person who has declared or other-
wise made known his intention to seek nomination or elec-
tion, or who has filed papers or petitions for nomination or
election, or on whose behalf a declaration or nominating paper
or petition has been made or filed, or who has otherwise, di-
rectly or indirectly, manifested his intention to seek nomina-
tion or election, pursuant to State law, to the office of United
States Senator, and each officer or employee of the Senate who
is compensated at a rate in excess of $15,000 a year, shall file
with the Secretary of the Senate, before the 15th day of May
in each year, the following reports of his personal financial
interests:
72
STANDING RULES OF THE SENATE
[44.4]
(a) the accounting required by rule XLII for all
contributions received by him during the preceding year,
except that contributions in the aggregate amount or
value of less than $50 received from any single source
during the reporting period may be totaled without
further itemization; and
(b) the amount or value and source of each hono-
rarium of $300 or more received by him during the pre-
ceding year.
4. All papers filed under section 3 of this rule shall be kept [44.4]
by the Secretary of the Senate for not less than three years
and shall be made available promptly for public inspection
and copying.
of
5. This rule shall take effect on July 1, 1968. No reports [44.5]
shall be filed for any period before office or employment was
held with the Senate, or during a period of office or employ-
ment with the Senate of less than ninety days in a year;
except that the Senator, or officer or employee of the Senate,
may file a copy of the return of taxes for the year 1968, or
a report of substantially equivalent information for only the
effective part of the year 1968.
or
di-
who
file
May
73
37-195 0-75-8
STANDARDS OF CONDUCT APPLICABLE
TO THE EXECUTIVE BRANCH
Certain legal requirements governing the standards
of conduct and potential conflicts of interest are
applicable to each member of the Executive Branch.
Additionally, all employees paid at a level equivalent
to GS 13 and above, including consultants, are required
to complete and file certain forms calling for
employment and financial information.
(a) Authorities. Each officer and employee of
the Executive Branch is subject to regulations
promulgated by his agency under the authority
of Executive Order 11222 (May 8, 1965)
governing his or her conduct. Additionally,
certain types of conduct are proscribed by
the federal conflict of interest statute
(18 U.S.C. 201 et seq.).
(b) Conflicts in General. A "conflict of
interest" refers to any situation in which
a government ficial has an actual or
apparent personal interest in the outcome
of a matter which he or she is in a position
to influence through decision, recommendation,
advice or other formal or informal action.
A violation of law does not require an
intent to favor one's personal interest,
and cannot be overcome by a showing of the
absence of such an intent. Participation,
by itself, in a matter in which one has
an interest is unlawful.
(c) Other Constraints. Set forth below are a
number of illustrations of prohibitive
conduct:
Regulatory Agencies. Executive Branch
personnel are generally prohibited
from making contacts with regulatory
agencies regarding matters under
adjudication or within the rule-
making process. Moreover, any
contact with such agencies normally
requires clearance by an official
GERALD
at the policy-making level.
-2-
Lobbying. If carried on with appropriated
funds, lobbying is expressly prohibited
by law.
Political Activity. Political activity
by Executive Branch personnel is subject
to numerous criminal and civil restrictions.
Misuse of Information. Disclosure of
classified or other confidential information
is, of course, prohibited. Additionally,
Executive Branch personnel must avoid
the fact or appearance of using information
obtained in the course of one's official
duties for private gain.
Gifts. Receipt of gifts, payment of
travel, lodging, entertainment and other
expenses, or receipt of speaking
honoraria are generally prohibited.
Appearance of Impropriety. Executive
Branch personnel are directed to be
ever sensitive to avoid the appearance
of acting on behalf of some private
interest or of a conflict or other
impropriety which can be fully as
damaging as the real thing.
(d) Objectives. As a general statement, it might
be said that the statutes and regulations which
are applicable to personnel within the Executive
Branch are directed to insure the achievement
of the following objectives:
The fair, impartial and equal treatment
of those dealing with the government;
The assurance that government decisions
will not be influenced by an employee's
private interests;
The maintenance of public confidence in
the integrity of government operations;
The prevention of use of public office
for private gain; and
The prevention of any impediment to the
efficiency and economy of government
business.
THE WHITE HOUSE
WASHINGTON
December 14, 1976
MEETING WITH LEGISLATIVE LEADERS
(TWO SEPARATE GROUPS)
ON THE REPORT ON EXECUTIVE, LEGISLATIVE, AND
JUDICIAL SALARIES (PETERSON COMMISSION)
Tuesday, December 14, 1976
Republicans - 8:00 a.m. (1 hour)
Democrats - 10:00 a.m. (1 hour)
Cabinet Room
From: Mike Duval Mike
I.
PURPOSE
To solicit the opinions and recommendations of Congressional
leaders on the Peterson Commission report.
II.
BACKGROUND, PARTICIPANTS & PRESS PLAN
A. Background: The report of the Peterson Commission
recommended that you meet with Congressional and
Judicial leaders prior to making your decisions on
their recommendations. You are scheduled to meet
with the Chief Justice on Wednesday.
B. Participants: See Tab A.
C. Press Plan: Announced, no press photo.
III. AGENDA
See Tab B.
GERALD
TAB A
PARTICIPANTS
PARTICIPANTS
(8:00 a.m. Meeting)
The President
HOUSE
SENATE
Bob Michel
Hugh Scott
Jack Edwards
Bob Griffin
Barber Conable
Carl Curtis
Guy Vander Jagt
Mark Hatfield
Del Clawson
STAFF
Jack Marsh
Dick Cheney
Phil Buchen
Max Friedersdorf
Jim Cannon
Jim Lynn
Mike Duval
Ed Schmults
Jim Cavanaugh
REGRETS
HOUSE
SENATE
John Rhodes
John Tower
John Anderson
Bob Stafford
Sam Devine
Ted Stevens
Lou Frey
Hiram Fong
Jimmy Quillen
Bill Frenzel
Ed Derwinski
Floyd Spence
PARTICIPANTS
(10:00 a.m. Meeting)
The President
HOUSE
SENATE
Jack McFall
Mike Mansfield
Jim Wright
Gale McGee
Mo Udall
STAFF
Jack Marsh
Dick Cheney
Phil Buchen
Max Friedersdorf
Jim Cannon
Jim Lynn
Mike Duval
Ed Schmults
Jim Cavanaugh
REGRETS
HOUSE
SENATE
Carl Albert
Howard Cannon
Tip O'Neill
Quentin Burdick
John Brademas
Robert Byrd
John Flynt
TAB B
AGENDA
AGENDA AND TALKING POINTS
The Commission on Executive, Legislative, and Judicial
Salaries, chaired by Peter Peterson, issued its report
which contains two key recommendations:
1. That there should be substantial pay increases
for high-ranking governmental officials amounting
to approximately 29% for the Legislative Branch,
32% for the Executive Branch, and 44% for the
Judicial Branch.
2. These salary increases should be coupled with the
imposition of a new code of conduct on all three
branches.
The Commission's report raises serious issues dealing with
the amount of public confidence in the Federal Government
and the quality of people which serve in it.
The report suggests that I solicit the opinions of Legislative
and Judicial Branch leaders prior to making my decisions on
the report's recommendations.
Some of the issues which I hope we can discuss today are:
Should there be a substantial increase in the
compensation of Members of Congress, Justices
of the Supreme Court, and Judges, and Presidential
appointees in the Executive Branch?
If substantial increases are justified, should
they be tied to a new code of conduct?
Should such a code of conduct apply to all three
Branches and how should it be developed?
If a substantial increase is required, how should
we deal with the issues of: linkage between the
various jobs within each branch, the correct salary
levels, special allowances for relocation and the
second residence of Members of Congress and a
mechanism for dealing with cost of living increases?
I'd like to hear your views and recommendations on these
and any other related issues.
[Congressional leaders present their views]
I'll be meeting tomorrow with the Chief Justice to discuss
the Commission's recommendations as they relate to the
Judicial Branch. As you know, I'm required by statute to
reflect my decisions on the Commission's report in the Budget
message which I will send to Congress this January. I
appreciate very much your giving me your views and recommendations.
193 PRESIDEN. BAS SEE
THE WHITE HOUSE
WASHINGTON
MEETING WITH CHIEF JUSTICE BERGER
Wednesday, December 15, 1976
5:30 p.m. (30 minutes)
The Oval Office
From: Mike Duval Mike
I. PURPOSE
The Chief Justice has requested this opportunity to
discuss with you the recommendations of the Commission
on Executive, Legislative and Judicial Salaries to the
extent the report relates to salary levels of members
of the Judicial Branch. This meeting was set up at
your invitation for you to solicit the Chief Justice's
views concerning the Peterson Report.
II. BACKGROUND, PARTICIPANTS AND PRESS PLAN
A. Background: The Chief Justice supports the
increases in judicial salaries recommended by
the Peterson Commission. He has also provided
a substantial compilation of materials relating
to the Standards of Conduct already applicable to
the Judiciary [see attached summary provided by Phil
Buchen's office at TAB A].
B. Participants:
The President
The Chief Justice
Phil Buchen
Dick Cheney
Mike Duval
Jim Lynn
C. Press Plan: Announced, no press photo.
III. AGENDA
1. Appropriate salary levels for Members of the
Judiciary and their relationship to appropriate salary
levels for Members of Congress.
2. The need, if any, for a new Code of Conduct binding
upon the Judicial Branch and any potential Separation
of Powers problems posed by such a Code.
TAB A
STANDARDS OF CONDUCT
APPLICABLE TO JUDICIARY
Almost 50 years ago, the American Bar Association
formulated the original Canons of Judicial Ethics.
Those Canons, occasionally amended, have been adopted
in most states. In 1969, the Association determined
that current needs and problems required revision of
the Canons. The revision process resulted in the Code
of Judicial Conduct which was approved by the ABA House
of Delegates in 1972 and thereafter adopted for federal
judges by the Judicial Conference of the United States
in 1973. Additionally, P.L. 93-512, which was signed
into law on December 5, 1974, provides a statutory
footing for many of the constraints imposed by the Code.
The Code of Judicial Conduct may be outlined as
follows:
o
Canon 1. A judge should uphold the integrity
and independence of the judiciary.
Canon 2. A judge should avoid impropriety
or the appearance of impropriety in all
his activities.
o Canon 3. A judge should perform the duties
of his office impartially and diligently.
The Standards which have been drafted
pursuant to Canon 3 provide for the dis-
qualification of any justice, judge,
magistrate or referee in bankruptcy of
the United States in those cases which
present, in fact or in appearance, a question
of judicial bias, prejudice, or conflict
of interest. The standards governing
potential financial conflicts are much
more stringent than comparable provisions
governing the Executive and Legislative
Branches. For example, a "financial
interest" is defined to reach any legal
or equitable interest, however small,
with no de minimis exclusion.
o Canon 4. A judge may engage in activities
to improve the law, the legal system
and the administration of justice. The
standards carrying forward Canon 4
generally prohibit any outside employment
by a judge apart from writing assignments.
-2-
O
Canon 5. A judge should regulate his extra-
judicial activities to minimize the risks
of conflict with his judicial duties. The
standards here substantially restrict the
investment options of a judge.
O Canon 6. A judge should regularly file
reports of compensation received for quasi-
judicial and extra-judicial activities.
Although a judge does not have to file any
statement of assets and liabilities, he is
required to report outside compensation
allowed under the Canons.
Canon 7. A judge should refrain from
political activity inappropriate to his
judicial office. Generally, a judge is
prohibited from engaging in political conduct.
The Advisory Committee on Judicial Conduct performs
the duty of issuing advisory opinions on matters of
judicial ethics and judicial conduct requested by judges.
In addition to the foregoing there are, of course,
many other statutory restrictions on judicial activities.
Under Section 454 of Title 28, for example, it is made
unlawful for any justice or judge to engage in the practice
of law. There are various laws relating to nepotism. For
example, the son, daughter, nephew or niece of a judge
cannot be employed as a law clerk. (This was enacted at
the request of judges.)
Finally, new controls have been placed on the
acceptance of fees and honoraria by judges through the
Federal Elections Campaign Act as recently amended, 2 U.S.C
[1976 supp. ] $441i. This new legislation applies in terms
to justices and judges. (The power of Congress to
legislate on these matters as to the Judicial Branch has
not been judicially determined but the Judicial Conference
has accepted the binding effect of these statutes, since
they are largely declaratory of earlier action taken by
the Judicial Conference.) These judicial officers are
limited to honoraria in an individual amount no greater
than $2,000, excluding expenses, for any one lecture
or speech. Judges are also subject to the annual limit
of $25,000, in common with Members of Congress.
THE PRESIDENT HAS SEEN
THE WHITE HOUSE
WASHINGTON
December 15, 1976
MEMORANDUM FOR:
THE PRESIDENT
FROM:
MIKE DUVAL
Mike
SUBJECT:
Peterson Commission Report
Attached at Tab A are staff recommendations concerning the pay
increases recommended by the Peterson Commission. Jim Lynn will
have his recommendations completed shortly.
As you know, Alan Greenspan and Bob Hartmann recommend against an
increase.
Specific staff comments are attached at Tab B.
Attachments
TAB A
PETERSON
COMMISSION
PHIL BUCHEN
JIM CANNON
JIM LYNN
JACK MARSH
BRENT SCOWCROFT
BILL SEIDMAN
RECOMMENDATION
RECOMMENDATION
RECOMMENDATION
RECOMMENDATION
RECOMMENDATION
RECOMMENDATION
RECOMMENDATION
*
VICE PRESIDENT
$ 80,000
$ 74,200
$ 80,000
$
$ 75,000
$ 70,000
$ 80,000
CHIEF JUSTICE
80,000
74,200
80,000
75,000
70,000
80,000
SPEAKER
80,000
74,200
80,000
75,000
70,000
80,000
ASSOCIATE JUSTICE
77,500
71,700
77,500
70,000
67,500
75,500
EXECUTIVE LEVEL I
67,500
65,700
67,500
70,000
65,000
67,500
PRESIDENT PRO-TEM,
65,000
59,800
65,000
65,000
60,000
65,000
MAJORITY & MINORITY LEADER
COURT OF APPEALS JUDGE
65,000
56,800
59,500
65,000
53,000
65,000
DISTRICT COURT JUDGE
62,000
54,000
57,000
48,000
51,500
62,000
EXECUTIVE LEVEL II
60,000
53,800
59,500
49,000
52,500
60,000
SENATORS AND REPRESENTATIVES
57,500
56,800
59,500
50,000
50,000
65,000
EXECUTIVE LEVEL III
57,000
51,000
55,000
47,000
49,500
57,000
EXECUTIVE LEVEL IV
53,000
47,700
50,000
43,000
47,500
53,000
EXECUTIVE LEVEL V
49,000
44,500
46,500
45,000
49,000
* Gen. Scowcroft does not recommend
any increases. However, if an
increase is to be proposed he
recommends above figures in three
yearly tranches with top cailing $70,000.
TAB B
THE WHITE HOUSE
WASHINGTON
December 14, 1976
MEMORANDUM TO:
MIKE DUVAL
FROM:
ROBERT T. HARTMANN RAV
SUBJECT:
Peterson Commission Report
I am opposed to all these huge increases (maybe
Federal judges deserve a little more, but not up
to what the Chief Justice makes now!) -- why do
we help Democrats get richer? Let them eat peanuts
or pass their own raises without our connivance.
The public is going to be outraged. I do think,
however, that regular cost of living increases for
Federal employees should apply to the upper levels
as well, despite Congress' election year spirit
of sacrifice.
THE WHITE HOUSE
WASHINGTON
December 14, 1976
MEMORANDUM FOR THE PRESIDENT
FROM:
PHILIP W. BUCHEN
SUBJECT:
Recommendation on Salary Levels for
Positions Covered by Peterson
Commission Report
The attached recommendations by dollar amount are
arrived at as follows:
1. The Peterson Commission recommenda-
tion of $57,500 for Senators and
Representatives is adjusted to
$65,000 so as to be in line with
the Court of Appeals Judges.
2. Then, after this adjustment is made,
all recommendations of the Commission
are adjusted to achieve 60% approxi-
mately of Commission-recommended
increases.
This method has the virtue of not materially
disturbing the relations between the Commission-
recommended increases for the different positions,
while at the same time reducing the total dollar
amount of each increase. Alternatively, the
figure in item 2 of the calculation method could
be 50% instead of 60%.
Attachment
EXHIBIT II
PETERSON COMMISSION
RECOMMENDATION
BY:
VICE PRESIDENT
$ 80,000
$74,200
CHIEF JUSTICE
80,000
74,200
SPEAKER
80,000
74,200
ASSOCIATE JUSTICE
77,500
71,700
EXECUTIVE LEVEL I
67,500
65,700
PRESIDENT PRO-TEM, MAJORITY
65,000
AND MINORITY LEADER
59,800
COURT OF APPEALS JUDGE
65,000
56,800
DISTRICT COURT JUDGE
62,000
54,000
EXECUTIVE LEVEL II
60,000
53,800
SENATORS AND REPRESENTATIVES
57,500
56,800
EXECUTIVE LEVEL III
GERALD
57,000
51,000
EXECUTIVE LEVEL IV
53,000
47,700
EXECUTIVE LEVEL V
49,000
44,500
THE CHAIRMAN OF THE
COUNCIL OF ECONOMIC ADVISERS
WASHINGTON
December 14, 1976
MEMORANDUM FOR MIKE DUVAL
FROM: ALAN GREENSPAN
A
This is in response to your request for my comments on
the salary schedule proposed in the Peterson Commission report
on executive, legislative and judicial salaries. I do not
feel that the CEA has sufficient expertise to comment on the
structure of the salary scale, that is, on the relative salary
rankings for the various positions listed in your memo.
However, as I indicated in detail in my memo of
December 8 to Jim Connor (copy attached), I believe that the
salary increases recommended by the Peterson Report are far
too large and should not be approved by the President.
The Peterson report did not offer adequate evidence that
large salary increases are warranted at this time. There
is no clear evidence that the current salary schedule fails
to attract and retain high quality persons. On the basis of
empirical studies, it appears that the salary compression
may be due to civil service salaries for the super-grades
that are too high, rather than executive salaries that are
too low. Given the continued high level of unemployment,
our efforts to discourage high wage increases in the private
sector, and our objective of limiting the growth in the
Federal sector, I believe it would be inappropriate, as
well as embarrassing, to endorse salary increases of 22 percent
to 47 percent as recommended by the Commission.
REVOLUTION
AMERICAN
BICENTENNIAL
1776-1976
THE CHAIRMAN OF THE
COUNCIL OF ECONOMIC ADVISERS
WASHINGTON
December 8, 1976
MEMORANDUM FOR JIM CONNOR
FROM:
ALAN GREENSPAN
SUBJECT: Report of Commission on Executive, Legislative
and Judicial Salaries
The report does not offer convincing evidence that
the current pay schedule for high-level government officials,
civil service or appointed, is inefficient for satisfying the
government's requirements for executives. I have no
objections to the overall structure of the report. However,
the report does not adequately establish the case for the
proposed salary structure. It would be difficult to defend a
sudden increase of 20 to 47 percent for high-level govern-
ment officials given that they did not experience unemployment
in the last few years. Gradual increases would be viewed
as more reasonable. Since the proposed wage increases are
arbitrary, the Administration is best off endorsing the
principle of gradual increases, without endorsing the
particular magnitudes. The standards of conduct (item 8
below) should be sufficiently broad as to avoid particular
problems that specific standards might entail. The report
could be released in the interest of promoting full public
discussion of these issues, with a Presidential endorsement
of relaxation of salary caps and stronger conflict of interest
provisions, but without endorsing the specifics of the Com-
mission report. Some more detailed comments follow.
(1) The report indicates that nongovernmental executives
tend to view a government job as a form of investment in
training. The sacrifice of earnings to take the job
(23 percent on average) is more than compensated for by the
rise in earning opportunities after leaving government
(on average an 84 percent rise in salary over the govern-
ment level when return to private sector.) Apparently,
the government employment broadens their experiences and
makes them more valuable in the private sector. The report
does not present evidence that these persons are less
REVOLUTION
AMERICAN
BICENTENNIAL
1776-1976
-2-
effective in the government job than others who prefer
not to undertake this form of investment.
(2) The report indicates that among career civil
servants in the super-grades the cap on salaries makes
government jobs less attractive than private sector jobs.
This ignores many attractive benefits of government employ-
ment including the relatively high pension with early
retirement provisions and the stability of employment.
In part, middle-level private sector executives receive
high salaries because of the uncertainty of employment
and problems of reemployment if they lose their job. The
attractive alternative for super-grades appears to be
retirement with the government pension, rather than leaving
government for another executive position prior to retire-
ment age. This raises the question as to whether the
pension is too generous for the super-grades. In addition,
the report ignores the problem of grade-inflation in the
last few years.
(3) The report does hot address the issue of the
beneficial effects of turnover among executives through
retirements when civil service restrictions make replace-
ment difficult if not impossible. Raising salaries relative
to pensions would decrease retirements, but would require
more aggressive policies to replace high-level civil servants
who are no longer as productive as their salary and position
would require.
(4) There is a serious problem of salary compression,
where GS-15 (higher steps) to GS-18 earn the same salary,
which now exceeds that of Executive Level V. Studies of
the earnings of Federal Government and private sector workers
of the same measurable characteristics (e.g., age, schooling,
work experience, area, etc.) suggest that Federal civil
service earnings exceed those of the private sector. (The
popular view of low government salaries is supported by
studies of state and local government workers.) In addition,
the fringe benefits (health insurance, pensions, and stability
of employment) are generally superior in the Federal sector.
The compression appears to be the result of salaries that
are "too high" for the lower grades near the compression
(G6-14-16) rather than too low at the upper end (GS-17-18,
Executive Level V). Unfortunately, the report does not
consider this problem when mentioning the problem of salary
compression.
-3-
(5) The report correctly points out that there is
no necessary link between the salaries in the three branches
of government. Separate salary schedules would be more
appropriate.
(6) Since most persons in Executive Level I-V positions
are in government temporarily, and withdraw their contribu-
tions to the pension fund upon.departure, the recommendation
that they be permitted to defer contributions to the pension
plan until the fifth year seems warranted. In the jargon
of the report, this would ease their cash flow problem.
(7) The recommendation of a $5,000 per year housing
allowance for members of Congress with two residences seems
unwarranted. We should move away from categorical, non-
taxable supplements to income to a system in which compensa-
tion is in the form of salaries subject to taxation. This
facilitates the public's awareness of the income of members
of Congress and promotes greater equity between members of
Congress with different levels of other income.
(8) With regard to conflict of interest, the Commission
recommends:
a. periodic disclosure of financial affairs --
income, by source and amount, gifts, debts
and personal holdings.
b. Rigorous restrictions on outside incomes.
C. Strict conflict of interest provisions with
regard to investments (blind trusts).
d. More consistent and explicit rules on post-
service employment. Implicit call for ending
the "revolving door" between government and
industry, but no time frame indicated.
(9) The Commission report calls for a permanent
Quadrennial Commission, consisting of private citizens,
to review salary levels and pension provisions.
THE WHITE HOUSE
WASHINGTON
December 14, 1976
MEMORANDUM FOR:
THE PRESIDENT
FROM:
JACK MARSH July
Below follow my recommendations salary levels:
Vice President
$75,000
Chief Justice
Speaker of the House
Associate Justice
$70,000
Executive Level I
President Pro-Tem
$65,000
Majority Leaders
Minority Leaders
Judges--Circuit Court of Appeals
Senators
$50,000
Representatives
Resident Commissioner of Puerto Rico
Judges--Court of Claims
$48,000
Judges--Court of Military Appeals
Judges--Court of Customs & Patent
Appeals
Judges- U. S. District Court
Judges--Customs Court
$45,000
Judges--Tax Court
Executive Level II
$49,000
Comptroller General
$49,000
Executive Level III
$47,000
Assistant Comptroller General
$45,000
Dir., Administrative Office--
U.S. Courts
$45,000
Executive Level IV
$43,000
-2-
I have not gone below the pay chart for Executive
Level IV. However, I would recommend raises that
are commensurate with the increases shown above.
I do, however, think a 20% increase for Bankruptcy
Judges is sufficient.
TABLE 2
COMMISSION ON EXECUTIVE, LEGISLATIVE AND JUDICIAL SALARIES
THE PRESIDENT SAB SEEL
RECOMMENDED SALARY LEVELS
PRESENT
RECOMMENDED
PERCENT INCREASE
Vice President
$65,600
$80,000
22.0%
Chief Justice
65,600
80,000
22.0%
Speaker of the House
65,600
80,000
22.0%
Associate Justice
63,000
77,500
23.0%
Executive Level I
63,000
67,500
7.1%
President Pro-Tem, Majority and Minority Leaders
52,000
65,000
25.0%
Judges - Circuit Courts of Appeals
44,600
65,000
45.7%
Judges - Court of Claims
44,600
65,000
45.7%
Judges - Court of Military Appeals
44,600
65,000
45.7%
Judges - Court of Customs and Patent Appeals
44,600
65,000
45.7%
Judges - U.S. District Courts
42,000
62,000
47.6%
Judges - Customs Court
42,000
62,000
47.6%
Judges - Tax Court
42,000
62,000
47.6%
Executive Level II
44,600
60,000
34.5%
Comptroller General
44,600
60,000
34.5%
Senators, Representatives, Resident Commissioner of Puerto Rico
44,600
57,500
28.9%
Executive Level III
42,000
57,000
35.7%
Assistant Comptroller Geheral
42,000
57,000
35.7%
Director - Administrative Office - U.S. Courts
42,000
57,000
35.7%
Executive Level IV
39,900
53,000
32.8%
General Counsel - GAO
39,900
53,000
32.8%
Librarian of Congress
39,900
53,000
32.8%
Public Printer
39,900
53,000
32.8%
Architect of the Capitol
39,900
53,000
32.8%
Commissioners - Court of Claims
37,800
53,000
40.2%
Deputy Director - Administrative Office - U.S. Courts
37,800
53,000
40.2%
Bankruptcy Judges (full time)
37,800
53,000
40.2%
Executive Level V
37,800
49,000
29.6%
Deputy Librarian of Congress
37,800
49,000
29.6%
Deputy Public Printer
37,800
49,000
29.6%
Assistant Architect of the Capitol
37,800
49,000
29.6%
Bankruptcy Judges (part time)
18,900
26,500
40.2%
Board of Governors, U.S. Postal Service
10,000
10,000
0%
PETERSON
PHIL BUCHEN
JIM CANNON
JIM LYNN
JACK MARSH
BRENT SCOWCROFT
BILL SEIDMAN
COMMISSION
RECOMMENDATION
RECOMMENDATION
RECOMMENDATION
RECOMMENDATION
RECOMMENDATION
RECOMMENDATION
RECOMMENDATION
*
VICE PRESIDENT
$ 30,000
$ 74,200
$ 80,000
$
?h
$ 75,000
$ 70,000
$ 80,000
CHIEF JUSTICE
80,000
74,200
80,000
75
75,000
70,000
80,000
SPEAKER
80,000
74,200
80,000
75
75,000
70,000
80,000
ASSOCIATE JUSTICE
77,500
71,700
77,500
79.5
70,000
67,500
75,500
EXECUTIVE LEVEL I
67,500
65,700
67,500
65
70,000
65,000
67,500
PRESIDENT PRO-TEM,
65,000
MAJORITY & MINORITY LEADER
55,000
59,800
25
65,000
60,000
65,000
COURT OF APPEALS JUDGE
65,000
56,800
59,500
65
65,000
53,000
65,000
DISTRICT COURT JUDGE
62,000
54;000
57,000
55
48,000
51,500
62,000
EXECUTIVE LEVEL II
60,000
53,800
59,500
52.5
49,000
52,500
60,000
SENATORS AND REPRESENTATIVES
57,500
56,800
59,500
55
50,000
50,000
65,000
EXECUTIVE LEVEL III
57,000
51,000
55,000
50
47,000
49,500
57,000
EXECUTIVE LEVEL IV
53,000
47,700
50,000
43,000
47,500
53,000
EXECUTIVE LEVEL V
49,000
44,500
46,500
+
45,000
49,000
*
Gen. Scowcroft does not recommend
any increases, However, if an
increase is to be proposed he
recommends above figures in three
vearly with coiling $70
THE WHITE HOUSE
WASHINGTON
December 15, 1976
MEMORANDUM FOR:
THE PRESIDENT
FROM:
MIKE DUVAL
whe
SUBJECT:
Peterson Commission Report
Attached at Tab A are staff recommendations concerning the pay
increases recommended by the Peterson Commission. Jim Lynn will
have his recommendations completed shortly.
As you know, Alan Greenspan and Bob Hartmann recommend against an
increase.
Specific staff comments are attached at Tab B.
Attachments
PETERSON
PHIL BUCHEN
JIM CANNON
JIM LYNN
JACK MARSH
BRENT SCOWCROFT
BILL SEIDMAN
COMMISSION
RECOMMENDATION
RECOMMENDATION
RECOMMENDATION
RECOMMENDATION
RECOMMENDATION
RECOMMENDATION
RECOMMENDATION
*
VICE PRESIDENT
$ 80,000
$ 74,200
$ 80,000
$
$ 75,000
$ 70,000
$ 80,000
CHIEF JUSTICE
80,000
74,200
80,000
75,000
70,000
80,000
SPEAKER
80,000
74,200
80,000
75,000
70,000
80,000
ASSOCIATE JUSTICE
77,500
71,700
77,500
70,000
67,500
75,500
EXECUTIVE LEVEL I
67,500
65,700
67,500
70,000
65,000
67,500
PRESIDENT PRO-TEM,
65,000
59,800
65,000
65,000
60,000
65,000
MAJORITY & MINORITY LEADER
COURT OF APPEALS JUDGE
65,000
56,800
59,500
65,000
53,000
65,000
DISTRICT COURT JUDGE
62,000
54;000
57,000
48,000
51,500
62,000
EXECUTIVE LEVEL II
60,000
53,800
59,500
49,000
52,500
60,000
SENATORS AND REPRESENTATIVES
57,500
56,800
59,500
50,000
50,000
65,000
EXECUTIVE LEVEL III
57,000
51,000
55,000
47,000
49,500
57,000
EXECUTIVE LEVEL IV
53,000
47,700
50,000
43,000
47,500
53,000
EXECUTIVE LEVEL V
49,000
44,500
46,500
45,000
49,000
* Gen. Scowcroft does not recommend
any increases. However, if an
increase is to be proposed he
recommends above figures in three
yearly tranches with top cdiling $70.000
THE WHITE HOUSE
WASHINGTON
December 14, 1976
MEMORANDUM TO:
MIKE DUVAL
FROM:
ROBERT T. HARTMANN AA
SUBJECT:
Peterson Commission Report
I am opposed to all these huge increases (maybe
Federal judges deserve a little more, but not up
to what the Chief Justice makes now!) -- why do
we help Democrats get richer? Let them eat peanuts
or pass their own raises without our connivance.
The public is going to be outraged. I do think,
however, that regular cost of living increases for
Federal employees should apply to the upper levels
as well, despite Congress' election year spirit
of sacrifice.
THE WHITE HOUSE
WASHINGTON
December 14, 1976
MEMORANDUM FOR THE PRESIDENT
FROM:
PHILIP W. BUCHEN
SUBJECT:
Recommendation on Salary Levels for
Positions Covered by Peterson
Commission Report
The attached recommendations by dollar amount are
arrived at as follows:
1. The Peterson Commission recommenda-
tion of $57,500 for Senators and
Representatives is adjusted to
$65,000 so as to be in line with
the Court of Appeals Judges.
2. Then, after this adjustment is made,
all recommendations of the Commission
are adjusted to achieve 60% approxi-
mately of Commission-recommended
increases.
This method has the virtue of not materially
disturbing the relations between the Commission-
recommended increases for the different positions,
while at the same time reducing the total dollar
amount of each increase. Alternatively, the
figure in item 2 of the calculation method could
be 50% instead of 60%.
Attachment
EXHIBIT II
PETERSON COMMISSION
RECOMMENDATION
RECOMMENDATION
BY: T.W.B.
VICE PRESIDENT
$ 80,000
$74,200
CHIEF JUSTICE
80,000
74,200
SPEAKER
80,000
74,200
ASSOCIATE JUSTICE
77,500
71,700
EXECUTIVE LEVEL I
67,500
65,700
PRESIDENT PRO-TEM, MAJORITY
65,000
AND MINORITY LEADER
59,800
COURT OF APPEALS JUDGE
65,000
56,800
DISTRICT COURT JUDGE
62,000
54,000
EXECUTIVE LEVEL II
60,000
53,800
SENATORS AND REPRESENTATIVES
57,500
56,800
EXECUTIVE LEVEL III
57,000
51,000
EXECUTIVE LEVEL IV
53,000
47,700
EXECUTIVE LEVEL V
49,000
44.500
THE CHAIRMAN OF THE
COUNCIL OF ECONOMIC ADVISERS
WASHINGTON
December 14, 1976
MEMORANDUM FOR MIKE DUVAL
FROM: ALAN GREENSPAN
A
This is in response to your request for my comments on
the salary schedule proposed in the Peterson Commission report
on executive, legislative and judicial salaries. I do not
feel that the CEA has sufficient expertise to comment on the
structure of the salary scale, that is, on the relative salary
rankings for the various positions listed in your memo.
However, as I indicated in detail in my memo of
December 8 to Jim Connor (copy attached), I believe that the
salary increases recommended by the Peterson Report are far
too large and should not be approved by the President.
The Peterson report did not offer adequate evidence that
large salary increases are warranted at this time. There
is no clear evidence that the current salary schedule fails
to attract and retain high quality persons. On the basis of
empirical studies, it appears that the salary compression
may be due to civil service salaries for the super-grades
that are too high, rather than executive salaries that are
too low. Given the continued high level of unemployment,
our efforts to discourage high wage increases in the private
sector, and our objective of limiting the growth in the
Federal sector, I believe it would be inappropriate, as
well as embarrassing, to endorse salary increases of 22 percent
to 47 percent as recommended by the Commission.
PAEERICAN REVOLUTION INDENTENNIAL
1776-1976
THE CHAIRMAN OF THE
COUNCIL OF ECONOMIC ADVISERS
WASHINGTON
December 8, 1976
MEMORANDUM FOR JIM CONNOR
FROM:
ALAN GREENSPAN
SUBJECT: Report of Commission on Executive, Legislative
and Judicial Salaries
The report does not offer convincing evidence that
the current pay schedule for high-level government officials,
civil service or appointed, is inefficient for satisfying the
government's requirements for executives. I have no
objections to the overall structure of the report. However,
the report does not adequately establish the case for the
proposed salary structure. It would be difficult to defend a
sudden increase of 20 to 47 percent for high-level govern-
ment officials given that they did not experience unemployment
in the last few years. Gradual increases would be viewed
as more reasonable. Since the proposed wage increases are
arbitrary, the Administration is best off endorsing the
principle of gradual increases, without endorsing the
particular magnitudes. The standards of conduct (item 8
below) should be sufficiently broad as to avoid particular
problems that specific standards might entail. The report
could be released in the interest of promoting full public
discussion of these issues, with a Presidential endorsement
of relaxation of salary caps and stronger conflict of interest
provisions, but without endorsing the specifics of the Com-
mission report. Some more detailed comments follow.
(1) The report indicates that nongovernmental executives
tend to view a government job as a form of investment in
training. The sacrifice of earnings to take the job
(23 percent on average) is more than compensated for by the
rise in earning opportunities after leaving government
(on average an 84 percent rise in salary over the govern-
ment level when return to private sector.) Apparently,
the government employment broadens their experiences and
makes them more valuable in the private sector. The report
does not present evidence that these persons are less
REVOLUTION
AMERICAN
BICENTENNIAL
1776-1976
-2-
effective in the government job than others who prefer
not to undertake this form of investment.
(2) The report indicates that among career civil
servants in the super-grades the cap on salaries makes
government jobs less attractive than private sector jobs.
This ignores many attractive benefits of government employ-
ment including the relatively high pension with early
retirement provisions and the stability of employment.
In part, middle-level private sector executives receive
high salaries because of the uncertainty of employment
and problems of reemployment if they lose their job. The
attractive alternative for super-grades appears to be
retirement with the government pension, rather than leaving
government for another executive position prior to retire-
ment age. This raises the question as to whether the
pension is too generous for the super-grades. In addition,
the report ignores the problem of grade-inflation in the
last few years.
(3) The report does hot address the issue of the
beneficial effects of turnover among executives through
retirements when civil service restrictions make replace-
ment difficult if not impossible. Raising salaries relative
to pensions would decrease retirements, but would require
more aggressive policies to replace high-level civil servants
who are no longer as productive as their salary and position
would require.
(4) There is a serious problem of salary compression,
where GS-15 (higher steps) to GS-18 earn the same salary,
which now exceeds that of Executive Level V. Studies of
the earnings of Federal Government and private sector workers
of the same measurable characteristics (e.g., age, schooling,
work experience, area, etc.) suggest that Federal civil
service earnings exceed those of the private sector. (The
popular view of low government salaries is supported by
studies of state and local government workers.) In addition,
the fringe benefits (health insurance, pensions, and stability
of employment) are generally superior in the Federal sector.
The compression appears to be the result of salaries that
are "too high" for the lower grades near the compression
(G6-14-16) rather than too low at the upper end (GS-17-18,
Executive Level V). Unfortunately, the report does not
consider this problem when mentioning the problem of salary
compression.
-3-
(5) The report correctly points out that there is
no necessary link between the salaries in the three branches
of government. Separate salary schedules would be more
appropriate.
(6) Since most persons in Executive Level I-V positions
are in government temporarily, and withdraw their contribu-
tions to the pension fund upon departure, the recommendation
that they be permitted to defer contributions to the pension
plan until the fifth year seems warranted. In the jargon
of the report, this would ease their cash flow problem.
(7) The recommendation of a $5,000 per year housing
allowance for members of Congress with two residences seems
unwarranted. We should move away from categorical, non-
taxable supplements to income to a system in which compensa-
tion is in the form of salaries subject to taxation. This
facilitates the public's awareness of the income of members
of Congress and promotes greater equity between members of
Congress with different levels of other income.
(8) With regard to conflict of interest, the Commission
recommends:
a. periodic disclosure of financial affairs --
income, by source and amount, gifts, debts
and personal holdings.
b. Rigorous restrictions on outside incomes.
C. Strict conflict of interest provisions with
regard to investments (blind trusts).
d. More consistent and explicit rules on post-
service employment. Implicit call for ending
the "revolving door" between government and
industry, but no time frame indicated.
(9) The Commission report calls for a permanent
Quadrennial Commission, consisting of private citizens,
to review salary levels and pension provisions.
THE WHITE HOUSE
WASHINGTON
December 14, 1976
MEMORANDUM FOR:
THE PRESIDENT
FROM:
JACK MARSH July
Below follow my recommendation salary levels:
Vice President
$75,000
Chief Justice
Speaker of the House
Associate Justice
$70,000
Executive Level I
President Pro-Tem
$65,000
Majority Leaders
Minority Leaders
Judges--Circuit Court of Appeals
Senators
$50,000
Representatives
Resident Commissioner of Puerto Rico
Judges--Court of Claims
$48,000
Judges--Court of Military Appeals
Judges--Court of Customs & Patent
Appeals
Judges--U. S. District Court
Judges--Customs Court
$45,000
Judges--Tax Court
Executive Level II
$49,000
Comptroller General
$49,000
Executive Level III
$47,000
Assistant Comptroller General
$45,000
Dir., Administrative Office--
U.S. Courts
$45,000
Executive Level IV
$43,000
-2-
I have not gone below the pay chart for Executive
Level IV. However, I would recommend raises that
are commensurate with the increases shown above.
I do, however, think a 20% increase for Bankruptcy
Judges is sufficient.
IMM.
(ONTRANDIA)
PRECEDENCE
CLASSIFICATION
DEX
FROM: Jim Carnon
DAC 224
GPS
LDX
PAGES /
TO: Dick Cheney for
TTY
CITE
Fire President
INPO:
DTG:
1976 DEC 31 19 59
RELEASED BY: WE
TOR: 31 2007=
SPECIAL INSTRUCTIONS:
MR7
CONFIDENTIAL
1
WHCA FORM 8, 22 FEB 74
CONFIDENTIAL
CONF IDENTIAL
FOR IMMEDIATE DELIVERY
THE WHITE HOUSE
DACOM
WASHINGTON
December 31, 1976
Jul
DENT
MEMORANDUM TO THE PRESIDENT
FROM:
JIM CANNON
SUBJECT:
Comments by Jim Wright
Representative Jim Wright mentioned, after I notified
him today of your Puerto Rico announcement, that he
would like to convey this message to you:
I.
He talked with Governor Carter on Wednesday night
about the Peterson Commission Report on pay increases.
Carter said he believed that some increase was appro-
priate but he had not studied the report in detail.
In addition, Carter said that he felt that any
increase of more than 40 percent would be perceived
by the public as excessive and would make it difficult
for the new administration to hold the line against
inflationary increases in government and the private
sector.
II. Governor Carter also said that he was not going
to say or do anything to "sandbag President Ford"
on his proposals. Wright quoted Carter as saying:
"The President has been too nice to me for me to
do anything like that."
III. Representative David Obey and Lee Hamilton have
promised Wright that they will have substantive
recommendations to reform and strengthen Congressional
ethical standards by February 10.
IV. Wright has talked with his colleagues in the House
and concluded that if the pay issue does come to
a vote on the floor of the House, it would be
rejected.
Determined to be an administrative marking
Cancelled per E.O. 12356, Sec. 1.3 and
Archivist's memo of March 16, 1983
CO INDENTIAL
By
DAD NARS date 3/1/84
FOR COMMCENTER USE ONLY
IMM.
Confidential CL SIFICATION
PRECEDENCE
DEX
FROM: Jim Carnon
DAC 224
GPS
LDX
PAGES /
TO: Dick Cherey for
TTY
CITE
the President
INFO:
DTG:
1976 DEC 31 19 59
RELEASED BY: WE
TOR: 312004Z
SPECIAL INSTRUCTIONS:
WHITE HOUSE
ONROOM
'76 DEC 31 PM 20 3:20
4
WHCA FORM 8, 22 FEB 74
S1
CONFIDENTIAL
FOR IMMEDIATE DELIVERY
DACOM
Archivist's Permo be an of NARS marking
THE WHITE HOUSE
WASHINGTON
December 31, 1976
Jul
DRP
BY
MEMORANDUM TO THE PRESIDENT
FROM:
JIM CANNON
SUBJECT:
Comments by Jim Wright
Representative Jim Wright mentioned, after I notified
him today of your Puerto Rico announcement, that he
would like to convey this message to you:
I.
He talked with Governor Carter on Wednesday night
about the Peterson Commission Report on pay increases.
Carter said he believed that some increase was appro-
priate but he had not studied the report in detail.
In addition, Carter said that he felt that .any
increase of more than 40 percent would be perceived
by the public as excessive and would make it difficult
for the new administration to hold the line against
inflationary increases in government and the private
sector.
II. Governor Carter also said that he was not going
to say or do anything to "sandbag President Ford"
on his proposals. Wright quoted Carter as saying:
"The President has been too nice to me for me to
do anything like that
"
III. Representative David Obey and Lee Hamilton have
promised Wright that they will have substantive
recommendations to reform and strengthen Congressional
ethical standards by February 10.
IV. Wright has talked with his colleagues in the House
and concluded that if the pay issue does come to
a vote on the floor of the House, it would be
rejected.