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    "title": "Regulatory Reform (6)",
    "description": "This file contains material relating to the Domestic Council Review Group on Regulatory Reform and President Ford's meetings with regulatory commissioners.",
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    "collections": [
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        "Aeronautics, Commercial",
        "Antitrust law",
        "Government regulation",
        "Independent regulatory commissions",
        "Intergovernmental relations",
        "Legislation",
        "Regulatory reform",
        "Trucking"
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    "ocrText": "The original documents are located in Box 29, folder \"Regulatory Reform (6)\" of the James\nM. Cannon Files at the Gerald R. Ford Presidential Library.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. Gerald Ford donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nDigitized from Box 29 of the James M. Cannon Files at the Gerald R. Ford Presidential Library\nTHE WHITE HOUSE\nWASHINGTON\nAugust 4, 1975\nMEMORANDUM FOR:\nPAUL O'NEILL\nFROM:\nRegulatory Jun Reform\nJIM CANNON\nSUBJECT:\nState and Local Involvement in\nSince the Domestic Council has the responsibility for\nthe Regulatory Reform Review Group and for intergovern-\nmental relations, it seems it would be best that we have\nthe responsibility for coordinating the reform efforts\nwith state and local governments.\nCC: Cavanaugh\nFalk\nR. FCRD (TERKEY\nTHE WHITE HOUSE\nWASHINGTON\nAugust 27, 1975\nMEMORANDUM FOR:\nJIM CANNON\nTHROUGH:\nJIM CAVANAUGHT #\nFROM:\nSUBJECT:\nRegulatory Reform in Recent\nPAUL LEACH Perform\nPresidential Speech\nThe attached speech starting at page 4 contains regulatory\nreform language which the Review Group influenced.\nThe importance of this speech is described in the attached\nWall Street Journal article.\nTHOUgHT THIS MIGHT BE OF INTEREST To YOU,\nTHE WALL STREET JOURNAL Pg. 3\nAUG 26 1975\nFord Backs Corporate Tax Breaks, Vows\nwould \"eliminate most of these anticompeti-\ntive practices,\" and that \"the remainder of\nthese practices, now immunized from the\nTo Stop 'Anticompetitive' Regulation\nantitrust laws, are undergoing intensive re-\nview.\" He said his administration will study\n\"the whole range of government-sanctioned\nBy a WALL STREET JOURNAL Staff Reporter\ngiving stockholders a tax credit for some\nmonopoly,\" from small franchises protected\nSome items in this folder were not digitized because it contains copyrighted\nmaterials. Please contact the Gerald R. Ford Presidential Library for access to\nthese materials.\n25,\nOFFICE OF THE WHITE HOUSE PRESS SECRETARY\n(Chicago, Illinois)\nTHE WHITE HOUSE\nSee page 4 it seq\nREMARKS OF THE PRESIDENT\nTO THE\nAMERICAN HARDWARE\nMANUFACTURER'S ASSOCIATION\nMcCORMICK PLACE\n9:37 A.M. CDT\nCardinal Cody, Mr. Spencer, distinguished\nguests, ladies and gentlemen:\nIt is a very special pleasure and privilege for\nme to be here this morning and to pay tribute to the American\nhardware industry and to kick off Hardware Week in the\nCity of Chicago.\nYours is an industry that has taken American\ningenuity and coupled it with some of the most effective\nmerchandising techniques known to mortal man.\nThat may seem like some exaggeration, but a hard-\nware store is the only business I know of where you can\ngo to buy a 10 cent carriage bolt and come out with a can\nof paint, a new, improved screwdriver, 50 pounds of charcoal\nbrickets, a bicycle repair kit, ten minutes of free\nadvice, 12 picture hooks, six fuses and a lawnmower, and\nthen have to go back because you forgot the 10 cent\ncarriage bolt you went to buy there in the first place.\n(Laughter)\nI have been a typical homeowner most of my\nlife, and my wife Betty knows it. She says that sending\nme to a hardware store is the nearest thing she knows to\nplaying chicken with our life savings. (Laughter)\nNevertheless, on behalf of all of us \"do-it-\nyourselfers,\" let me thank all of you here for making\npossible the wonder of wonders -- the neighborhood hard-\nware imporium, more affectionately known as the world's\nonly candy store for grown-ups. (Laughter)\nMORE\nPage 2\nIn your business, you constantly seek out those\nnew ideas that are so important to a great country, and so do\nwe in this country. In fact, no nation or society in history\nhas done more to encourage invention, innovation and\ninitiative.\nThe explosion of American ideas began 200\nyear ago with our Declaration of Independence. A century\nago a tide of industrial progress started to sweep over\nAmerica, sewing machines revolutionized the clothing\nindustry. Electricity made life brighter and more prosperous.\nAutomobileassembly lines put us on wheels. The telegraph\nand telephone -- later movies, radio and television -- linked\nthe people of this vast Nation closer and closer together.\nIn our generation, America has split the atom and\nconquered space. Americans never shirked from challenge.\nCourage, originality, opportunity and optimism are national\ntraits.\nThis has been the spirit of America for the past\ntwo centuries -- a spirit of ideas and individuality. It\nwas and is the spirit of private enterprise -- churning\nahead in a free, competitive system fueled by private savings\nand investment. We need to recall these basic facts about\nAmerica, about ourselves as a people and about our way of\nlife.\nNo nation has invested more than we have in\nhumanity and science. No nation has taken greater risks or\nexperimented as much for progress. As a result, no nation\nhas earned such rewards as the United States.\nToday America is again called upon to invest,\nto risk, to experiment in the name of progress. But\nunfortunately, we have reached a watershed. A decision\nmust be made. The question, put simply, is precisely\nthis: how do we finance both the investment needed for\neconomic growth and essential programs needed to solve our\nhuman problems?\nToday we are faced with a problem of creating\nnew jobs in numbers greater than ever before in America.\nAlthough unemployment is far too high, nevertheless we\nshould not forget that 85 millions in this great country\nare at work and that is about 1.2 million more than just\nlast March.\nBy 1980, we must create another 14 million jobs\nto meet the needs of our expanding population. This is our\nobjective, and it will require substantial economic progress.\nAs always, economic progress depends on our ability\nas a Nation to foster capital investment and increase\nthe productivity of our workers. The share of our\ngross national product committed to the private sector\ninvestment must increase significantly over the next few years\nif we are to reach our economic potential. Some, for\nexample, estimate that total investment requirements could\nreach as high as $4 trillion.\nMORE\nPage 3\nHowever, as our need for capital grows, the\nabilities of industry to generate necessary funds is\ndeclining. This is essentially because inflation has\neroded corporate balance sheets and because our national\ntax laws fail to stimulate such investment.\nIn short, our financial ability to increase\nproduction is declining. This decline is curtailing\nneeded growth in jobs and income and undermining our\nability to compete internationally.\nI am very confident once this becomes clear to\nthe American people they will understand America's need\nfor tax policies that will help to channel sufficient\nresources into the expansion of productive capacity.\nAt today's level of economic activity, no shortage\nof industrial facilities exist, but our Nation's economic\nmachine is not now running at top speed. In the\nfuture, we have every reason to expect it will, but we\nmust now not permit bottlenecks and shortages to reappear\nas the economy gains momentum.\nWe must not condemn our fellow citizens to\nunemployment because the modern tools needed to compete\nin world markets are lacking.\nCapital, as all of you know, is vital to all\nsegments of our economy to expand agricultural production,\nto develop domestic resources of energy and raw material,\nreducing our dependence on oil imports and to preserve and\nto improve our economy.\nThis Administration has proposed reforms to the\nCongress to stimulate through what some call capital forma-\ntion through tax incentives, but I prefer to use the term\n\"job creation\" because that is what the proposals would do\nas a practical matter.\nIf adopted, they would provide the funds to\nexpand America's industry capability to create jobs, for\none thing, by reducing the double taxation on dividends.\nAs expected, these proposals have raised an\noutcry from some Members of Congress who oppose them and,\nas a person who was in the Congress for a number of years,\nI understand these voices.\nThe Congress, in this case, as in others, has\ncome up with no alternatives. We have got to push them\nto action here, as well as elsewhere. America cannot put\nits faith in wishing wells. We must do something about\nexpanding our sources of capital to create jobs, and we\nmust do it right now.\nMORE\nI ask the Congress to join with me in this\ncommitment to our Nation's future, to increase jobs,\nincome and full economic recovery.\nLet us expand the size of our economic pie\nrather than simply redistributing the pieces of a much\nsmaller piece of pie.\nBy itself, however, additional capital cannot\nrevitalize the American economy and our free market\nsystem. We must also take steps to help restore the\nvitality of the marketplace and effective competition is\nthe way to do it.\nToo often in the past our Government has\nstifled that competition in the name of economic regula-\ntion to the detriment of the consumer. For that reason,\nmy Administration -- with strong support of the Congress\nin this instance -- is seeking fundamental reform of economic\nregulation in the United States.\nThe problem is simply this: In many industries,\ntransportation, energy, communication, as well as others,\nFederal regulatory commissions have actually, thwarted\ncompetition. The bureaucratic monopolies have tackled\nbusiness and conflicting policies and red tape far, far\ntoo long.\nThe record is clear. They have burdened the\nconsumer with the cost of misdirected regulation.\nAlthough I am greatly encouraged by widespread\nbacking for regulatory reform, I also recognize we still\nhave a long, long way to go to achieve it. With the\ncontinued support, which is very evident, with the support\nof you, as well as your industry, we will reverse the\ntrend of the last few decades.\nWe will establish as national policy this basic\nfact of economic life, that Government regulation is not\nan effective substitute for vigorous American competition\nin the marketplace.\nHaving said this, let me add that some -- and\nlet me qualify it by saying some -- regulations are\nnecessary and appropriate; for instance, involving health,\nsafety and the environment.\nBut the reforms that we seek would eliminate\nthe impractical, the unnecessary and the obsolete.\nAs part of this effort to insure that we have a strong\neconomic system, we must maintain an anti-trust policy\nwhich validates our commitment to competitive markets.\nMORE\nrage J\nIf we reduce Government regulation of business,\nwe must make certain and positive that our anti-trust\nlaws are vigorously enforced.\nCompetition, when freed of Government regulation\nand supported by anti-trust laws, is the driving force of\nour economy. It will drive costs down to their minimum\nand assure prices based on these legitimate costs.\nYet, such steps cover only a part of the over-\nall problem. It is much more difficult to deal with areas\nthat anti-trust laws do not touch, these other regulated\nand legal monopolies and the Government sanctioned cartels.\nFor instance, various industry rate bureaus\nand self-regulatory agencies -- transportation rate\nbureaus, shipping conferences, stock exchanges and\nprofessional associations -- now seem to operate in a\ncongenial cost-plus environment.\nThis is simply because Government once decided\nthey need not, or cannot, compete.\nThey are allowed to fix prices and divide\nmarkets under the regulatory cloak, free from anti-trust\nenforcement.\nAn essential element of regulatory reform legis-\nlation I have already sent or will send to Congress will\neliminate most of these anticompetitive practices. The\nremainder of these practices, now immunized from anti-\ntrust laws, are undergoing intense review in the Executive\nBranch of the Government.\nIn short, this Administration will look at the\nwhole range of Government sanctioned monopoly -- from the\nsmall franchises protected by Federal regulations, which\nrule out competition, all the way to Government-endorsed\ncartels involving entire industries.\nWe must recognize this: Over the years Govern-\nment has done as much to create and perpetuate monopoly\nas it has done to control or eliminate it. As a result,\nthis Nation has become accustomed to certain forms of\nmonopoly. Some are regarded as beneficial, some not.\nIf an industry combines to raise prices, it\nviolates our anti-trust laws, but no laws are violated\nif an industry can get the Federal Government to build\ntrade barriers, to increase support prices for the goods\nor services that it produces, or to police against potential\ncompetitors or pricecutters.\nMORE\nPage 6\nIt is sad but true -- too often the Government\nwalks with the industry along the road to monopoly.\nThe end result of such special treatment\nprovides special benefits for a few, but powerful, groups\nin the economy at the expense of the taxpayer and the\nconsumer.\nLet me emphasize this is not -- and never will\nbe -- and Administration of special interests. This is\nan Administration of public interest, and always will be\njust that.\nTherefore, we will not permit the continuation of\nmonopoly privilege, which is not in the public interest.\nIt is my job and your job to open the American marketplace\nto all comers.\nUltimately, the vital reforms will be viewed\nas they should be -- as a pocketbook issue. Government\nregulation and restrictions now cost consumers billions\nand billions of dollars each year. We must be concerned\nabout the cost of monopoly however it is imposed and\nfor what reasons.\nWe must be sure that regulatory reform and anti-\ntrust actions go hand in hand with incentives to spark\ncapital investment to create new jobs and new competition.\nThis is what I firmly believe is needed to revive the\nAmerican economic dream.\nBefore I close, let me share one thought with\nyou. It concerns a subject that affects the lives and\nthe pocketbooks of every American -- the runaway growth\nof the Federal Government itself.\nOne of the goals I have set for myself as\nPresident is to cut big Government down to size -- and we\ncan do it this way -- to make it more manageable, more\nresponsive, more efficient and less costly. I want to put\nan end to the mountain of paperwork and the quicksand of\nregulation which big Government makes every businessman\ncope with.\nDo you have any idea how many different Federal\nforms Washington sends out and asks you to fill out?\nWould you believe it is over 5,000 -- 5,000 Federal forms\nto keep Washington at work and businessmen from their work.\nBelieve me -- and obviously you agree -- this is\nnot the way this great Nation was built over a 200-year\nspan. I can vividly recall how my father started a small\nfamily factory back in, of all years, 1929. In those dire\neconomic circumstances, everybody pitched in.\nMy speciality -- and it didn't require much skill --\nwas mixing the paint and labeling cans. But, my father was\nalways out there selling the merchandise and doing what makes\nsense for the business, not what makes sense for the\nbureaucrats.\nThe Ford Paint and Varnish Company survived the\ndepression. And I have wondered if it would have if my\nfather had had to fill out all of today's forms and\napplications and those thousands and thousands of questionaires,\nand at the same time, cope with a patchwork of rules and\nregulations which face today's businessmen.\nMy objective is to get the Federal Government\nas far out of your business, out of your lives, out of\nyour pocketbooks and out of your hair as I possibly can.\nTo this end, within three weeks after I came into\nthe Office of the Presidency last August, I directed the\nheads of all Federal Government, departments and agencies\nto reduce the personnel for whom they had requested funds\nfor the remainder of the fiscal year by 40,000.\nActually, I can report to you today that their\nperformance exceeded my directive. We ended fiscal year\n1975 on June 30 of this year with a reduction or a cutback\nof 52,000 Federal employees under the planned levels of\na year ago.\nAs far as those 5,000 Government forms, I can\ntell you this: several months ago I directed Jim Lynn,\nthe Director of the Office of Management and Budget, to\nexamine, to analyze, to evaluate and then throw out as many\nof these timewasters as he possibly can. And I am going to\npersonally monitor it.\nTo put it very simply, I want to see the American\nbusinessman pushing merchandise, not pencils.\nYou don't need a lot of bureaucrats looking over\nyour shoulder and telling you how to run your life or how\nto run your business. We are a people who declared our\nindependence 200 years ago, and we are not about to lose it\nnow to paper shufflers and computers.\nLet's take the shackles off American businessmen.\nThat is the only kind of hardware I don't approve of.\nThank you very much.\nEND\n(AT 10:02 A.M. CDT)\nMEETING ON REGULATORY REFORM\nLeach, Dunham, MacAvoy\nFriday, September 26, 1975\n5:15 p.m.\nMr. Cannon's Office\nis\nFORD\n0\nTHE WHITE HOUSE\nWASHINGTON\nOct. 20, 1975\nPut original of this memo\nbe forthcoming for your\nsignature.\nRod Hills thought you might\nlike an advance copy to\nreview in the meantime.\nPLs File\np\nTHE WHITE HOUSE\nWASHINGTON\nOctober 20, 1975\nMEMORANDUM FOR THE PRESIDENT\nTHROUGH:\nPHILIP BUCHEN\nJAMES CANNON\nRICHARD CHENEY\nFROM:\nRODERICK HILLS\nIn our meeting in your office with Secretary Coleman before the\nannouncement of the airline bill and at the subsequent Cabinet\nmeeting, we had a brief opportunity to discuss the current status\nof the Regulatory Reform Task Force. However, my view and\nthat of Messrs. Buchen and Cannon is that you should have the\noppor tunity to review in more detail the future direction of the\nregulatory reform program.\nMoreover, it is important, both for the energy and morale of the\nTask Force, that its future efforts be encouraged by you.\nFor the past six months, various parts of the Administration have\nbeen trying to develop and implement a comprehensive and credible\nprogram of regulatory reform. Principal responsibility for\nformulating and coordinating Administration policy in this area\nhas rested with the Domestic Council Review Group on Regulatory\nReform. For your information, I am attaching at Tab A a memo-\nrandum to the Economic Policy Board in July, outlining the\ncomposition of the review group and its approach to the program.\nThis memorandum seems to have been well received, but it has\nnot been formally accepted, even though a request for such an\nendorsement was made in September.\nI have also attached at Tab B brief summaries of some of our\nregular Wednesday afternoon meetings to give you more precise\ninformation as to the nature of the effort thus far.\n-2-\nI feel it is critically important, for the morale of the individuals\nleading this effort and the credibility of the program, that you\nmeet to discuss your priorities and develop an understanding of\nyour long term objectives with representatives of the group.\nSubmission of the air bill last week was well received both on\nthe Hill and in the press. This initiative has brought an added\nenthusiasm to the Review Group's efforts. It is important now\nto continue the momentum by obtaining a fresh sense of your\npriorities.\nAlthough Phil Buchen is moving quickly to select my successor,\nin the interim, it would be helpful if we could schedule a 30-minute\nsession with you and key Task Force members from CEA, the\nDomestic Council and OMB.\nI would, of course, very much appreciate attending such a meeting\nif it can be arranged in a fashion suitable for your schedule before\nI leave. However, Paul MacAvoy can certainly adequately represent\nthe effort to date.\nFORD\n/\nTHE WHITE HOUSE\nWASHINGTON\nJuly 16, 1975\nMEMORANDUM FOR:\nECONOMIC POLICY BOARD\nFROM:\nROD HILLS RH\nSUBJECT:\nDomestic Council Review\nGroup on Regulatory Reform\nThe President has given the Domestic Council responsibility\nfor coordination of his regulatory reform effort. To this\nend, the Domestic Council has established a Review Group on\nRegulatory Reform to serve in the coordinating role. Included\nin this Review Group are:\nMember\nWorking Representatives\nCounsel's Office\nRod Hills\nDomestic Council\nPaul Leach\nLynn May\nCouncil of Economic\nPaul MacAvoy\nAdvisers\nOffice of Management\nCal Collier\nand Budget\nStan Morris\nDepartment of Justice\nJon Rose\nCouncil on Wage and\nGeorge Eads\nPrice Stability\nJim Cannon has designated me as Executive Director of this\nGroup and Paul MacAvoy and I will serve as principal spokesmen.\nPaul Leach is the Domestic Council staff person with primary\nresponsibility for staff coordination.\nWhere appropriate, other Executive departments and agencies\nand White House staff will be involved. Major economic\nregulation initiatives will be presented to the Economic\nPolicy Board.\nIt is anticipated that all staff resources necessary to achieve\nthe President's regulatory reform objectives will be provided\nby the White House staff groups and Executive departments and\nagencies.\n-2-\nThe principal goal of the Group is to achieve tangible reform\nin the next year reduction of Commission activities where\nunnecessary and improvements in the efficiency of operation\nwhere there is a strong rationale for continued regulation.\nTo deliver on the President's goals, we must have concrete\nresults this year. A secondary goal for 1975 is to have\nresults and a second year program by the time of the State\nof the Union Address.\nThe attached draft of an Agenda for the July 18 Review Group\nmeeting provides a brief picture of where this effort is\ngoing during 1975.\nDOMESTIC COUNCIL REVIEW GROUP ON REGULATORY REFORM\nMeeting Agenda - July 18, 1975\nI.\nLegislative Activity (with primary responsibility)\nA. Legislation Before the Congress\n1. Railroad Revitalization Legislation submitted. House\nCommerce Committee is holding\nhearings. Some legislation\npossible this session.\nOMB & DOT\n2. Natural Gas\nContinue to push for de-\nregulation of natural gas.\nSpeedy congressional action\nunlikely. OMB & FEA\n3. Financial Institutions\nLegislation submitted, but\nsome legislative action likely\nin this Congress. OMB &\nTreasury\n4. Fair Trade\nLegislation submitted. Push\nfor repeal, which should\nhappen in 1975, and take\ncredit with signing ceremony.\nOMB & Justice\nB. Legislation Being Developed\n1. Trucking\nSend bill to Congress by\nAugust with Presidential\nmessage and press briefings.\nOMB & DOT\n2. Airlines\nSend bill to Congress by\nSeptember with Presidential\nmessage and press briefings.\nOMB & DOT\n3. Robinson-Patman\nFinish proposed bill by\nAugust. Send to Hill with\nPresidential message and\npress briefings. OMB &\nJustice\n-2-\n4.Cable T,V.\nDevelop and consider leg-\nislation by September.\nDomestic Council & OTP\nC. New Areas to be Considered\nThere are a variety of new areas where a policy review\nmight be undertaken. These range from (a) a major over-\nhaul or abolition of existing agencies, e.g., the FMC,\n(b) determination of the long-term regulatory role of\nFEA, (c) development of effective anti-trust policy\nparticularly with respect to the Clayton and Federal\nTrade Commission Acts to (d) creation of incentives\nrather than use of the rule-making approach to health,\nsafety and environmental regulations.\nII.\nFollow-Up to the Regulatory Summit\n1. Presidential letter to Commissioners sending transcript\nof July 10 meeting and asking for:\n- Specific plan to reduce delays\n- Description of economic analysis activities\n2. Follow-up with continual contacts at both Commissioner\nand staff levels to see that internal reform effort\ncontinues.\n3. Encourage Congressional committees to hold oversight\nhearings on delays in each Agency.\n4. With Justice making major contribution, set up group\nto propose changes in the procedures of the Agencies.\nChanges can be internal or legislated.\n5. Closely control Commission appointments. Develop list\nof acceptable candidates and committed deregulators.\n6. Establish group to work with Independent Agencies in\nimproving economic analysis.\n7. Push FPC to allow interstate shipment of natural gas\nwhich is purchased by industrial firms in the intrastate\n(unregulated) market.\n-3-\nIII.\nRegulation by Executive Departments and Agencies\n1. Presidential effort to get Cabinet (and other) officers\ncommitted to reform. Announce meetings between Review\nGroup and Cabinet officers to obtain specific 1975\nreform objectives.\n2. Develop a full catalog of agencies: Their respon-\nsibilities, weaknesses and opportunities for improve-\nment.\n3. Target several \"dependent\" agencies where the Review\nGroup can concentrate its efforts.\n4. Examine and assist FEA task force efforts to remove\nbottlenecks in development of new energy projects.\nIV.\nCongress\n1. Presidential letter to 24 Members to report on Independent\nCommissions meeting. Draft completed.\n2. Continue contacts with Congressional regulatory reform\ngroup and their staff.\n3. Schedule another meeting with Members after Labor Day.\n4. Closely monitor legislative strategy on all regulatory\nreform bills to insure White House coordination.\nV.\nSpeeches and Other Events\n1. Develop speech for President to give consumers on the\nimpact of regulation on consumer costs, then schedule.\n2. Develop speech for President to give to a \"special\ninterest group\" in which he talks tough on the need for\nregulatory reform, then schedule.\n3. See that Paul Theis has materials necessary to keep\nregulatory reform in a variety of Presidential speeches.\n4. See that a group of spokesmen for the Administration\nbegin to emphasize regulatory reform in speeches.\nFORD is 93RA70 LIBRARY\n-4-\nVI.\nPress\n1.\nSee that President is continually briefed on status\nof regulatory reform and has talking points for\ninterviews.\n2. Work with Press Office to educate general and\nspecialized press about the Presidential effort.\n3. Monitor press reports and editorials. Reply where\nnecessary.\nVII.\nState and Local Regulatory Reform\n1. Finalize State and local task force on regulatory\nreform.\n2. Articulate Presidential interest in this area.\nVIII. Organization and Management of Effort\n1. Set priorities for activities and assign responsibilities.\n2. Insure availability of staff resources needed to achieve\nPresident's objectives.\n3. Provide for regular coordinating meeting.\n4. Develop routine status report.\n1. Trans ortation misl\nEfforts to recolve the merger/\nan ust 43 is in the air bill were discussed.\nJustice has oh a Union package which will be\ndiscussed with the Secreting and the Attorney General\nas soon as possible. A first drunt of the Presidential\nmessage has bach completed and work on the analysis, fact\nsheet, section-by-section and indiation impact statement\nare proceeding. Legislative clearance will be completed\nby 9/12. Stan Morris reported that DOT testimony at the\nSenate rail hearings went well. He mentioned that plans\nwere going forward for the meetings with industry and the\nunions on the truck bill. DOT's summary table of the\nbackup analysis on that bill is due this week.\n2. Robinson-Patman. Johnathan Rose announced that Justice\nis working on plans for piblic hearings while at the same\ntime pursuing Hill Judiciary Committee contacts encouraging\nthem to initiate action on Robinson-Patman. Justice has\nmet with Under Secretary Baker from Commerce regarding a\npossible 4-city schedule for public hearings. It was\nsuggested that consideration be given to holding broader\nhearings on predatory pricing problems under the auspices\nof CWPS. This might help to avoid the pro-business image\nand could produce more useful information.\n3. Inflation Impact. Stan Morris reported that HUD and FEA\nare the only agencies which are not now in compliance with\nthe Executive Order and A-107.\n4. Dependent Agency Review. Paul Leach is meeting with Joe\nWright of USDA tomorrow to set up the meeting with\nSecretary Butz. Others to attend the Butz session include\nPaul MacAvoy and Jim Mitchell. Paul Leach mentioned that\nUSDA has set up their. own internal reform group. George Eads\nmentioned CWPS was considering a second review of marketing\norders which should be discussed in the meeting with USDA.\nJustice will contact FTC (Michael Lynch) to get a report\non Capper-Volstead by 9/19.\nMeeting with DOT deferred until the transportation\nlegislation is farther along. Papers on EPA and HEW will\nbe completed. Scheduling of those meetings will be done\nby 9/19.\nBERALD FORD LIBRARY\n5. Cable TV. Lynn Nav noxt\nafternoon (9/16) 201 or in\nthe cable issues\nrecommended scheduling meetings with industry people\nas soon as possible.\n6. Postal Service. It. was announced that a joint Domestic\nCouncil/Cla memo recommending a Low-log budget review\ntype study of the Postal Service will be sent to the\nPresident today if possible.\n7. State/Local Task Force. Stan Morris reported that\nJim Falk has talked to Governor Hoel and that announce-\nment of the task force is ready, pending an exchange of\nletters between Governor Ray and the President.\n8. Press Plan/Speeches. Margaret Earl reported that the\nPress Office has outlined a schedule of events to\naccompany submission of the air bill. It will be\nsubmitted for Ron Nessen's approval. The Press Office\ncan be ready to go on 48 hours notice. Also, they are\nworking with Bill Baroody's staff to design ways to\nattract consumer attention to the bill.\n9. Follow-on Presidential Meeting with Congressmen. It was\nagreed we should plan to hold a session with the 24\nCongressional representatives to discuss the full range\nof Administration-sponsored or supported legislation.\nPaul Leach will develop an agenda and schedule by next\nweek.\nFORD is GERALD LIBRARY\nSUMMARY\nOF\nNUETING\n17\nTHE ROOSTWENT ROOM\n1. Rail Bill. John Snow reported that both House and\nSenate SubCommittees have held hearings on the Adminis-\ntration's rail bill and each has drafted a substitute\nbill. Both Committees seem to have accepted the concept\nof the need for regulatory reform (particularly on the\nability of carriers to act independently from the ICC)\nbut neither Committee appears to be as critical of rate\nbureau procedures as is the Administration. Both Com-\nmittees are discussing restructuring provisions, however,\nthe locus of reorganization authorities and financial\nassistance differs, and the House bill would make $2.6\nbillion in grants available, in addition to loan guarantee\nprivileges. Though the ATA has voted not to support the\nrail bill, trucking opposition to date has been less\nthan expected. Severe and potentially harmful opposition\nis coming from barge carriers, who compete more directly\nwith rails on large shipments of bulk goods. DOT is\nworking to head off such opposition. A bill is expected\nto be reported to the full House Committee before the\nColumbus Day Recess.\n2. Truck Bill. Stan Morris indicated that DCRG members will\nmeet early next week to finalize the strategy to be\nadopted in dealing with industry and union representatives\non the proposed truck bill. At issue is the strength of\nthe Administration's argument and what compromises, if\nany, the President will order prior to submitting a bill\nto Congress.\n3. Air Bill. Stan Morris reported a meeting on 9/18 between\nSecretary Coleman and Attorney General Levi to try to\nreach a final position on mergers and inter-carrier\nagreements. If a solution is reached, the air bill could\ngo to Congress by 9/25. If not, a Presidential memo will\nhave to be drafted, asking for a decision on the issues.\nLIBRARY BERALD = FORD\n2\n4. Robinson-Patman. Jon Rose indicated some Senate staff\nwillingness for Senator Hart to submit a repeal bill,\nwithout his personal commitment to chair hearings or\nendorse the measure. (Senator Mathias might be an\nalternative.) Rep. Seiberling has indicated support\nfor a reform bill, but opposes repeal. Justice is\ncontinuing to prepare for four regional hearings, and\nis open to discussion on the OMB paper suggesting a\nlarger antitrust agenda for such hearings.\n5. Regulatory Costs and NSF Study. Stan Morris recounted\nthe origins of the $2,000 per family cost figure,\nexplained the Moss Committee/GAO response, and indicated\nNSF's interest in a 12 month study of regulatory costs\nand benefits. (He distributed the NSF prospectus for\ncomment.) After some discussion on how the Adminis-\ntration should respond to the Moss press release, it\nwas agreed Stan Morris-and Margaret Earl would meet\nwith Bill Greener to get à decision on the appropriate\nstrategy to adopt.\n6. Inflation Impact. Stan Morris reported that a status\nreport on the program had been given to the EPB. There\nis some EPB concern for the potential of slowing down\nimportant government activities- a response is being\nprepared. Inflation Impact workshops between agencies\nand OMB/CWPS will be held this fall.\n7. Dependent Agencies. Paul Leach, Stan Morris, and\nLynn May reported that a meeting with USDA is scheduled\nYor 9/22; DOT to be scheduled as soon as possible; EPA\nand HEW papers from OMB due 9/19, and will be circulated\nfor comment; a first paper from Labor has been received\nand follow-up meetings with Labor staff to be held week\nof 9/22, and a meeting with FEA will be scheduled as soon\nas the new General Counsel assumes his duties.\n8. Cable TV. Lynn May indicated continuing differences\nbetween Justice and OTP. He will schedule meetings with\nindustry and Congressional personnel. An options paper\nwill be ready for the EPB within one month.\n&\nFORD\nGERALD\nLIBRARY\n3\n9. Coordination. Paul Leach will circulate for comment\na discussion paper dealing with cloirence of Presidential\nspeeches, DCRG public appearances and press interviews.\n10. State and Local. Jim Falk will deliver a Presidential\nletter to Governor Ray on Sunday, after which announce-\nment of the State/Local task force should be imminent.\nCWPS is holding staff discussions to help set up the\ngroup's agenda.\nLIBRARY GERALD FORD\nSUMMARY OF DOMESTIC COUNCIL REVIEW\nGROUP MEETING\nWEDNESDAY, SEPTEMBER 24\nTHE ROOSEVELT ROOM\n1. Truck Bill. Meetings between DCRG members and repre-\nsentatives of the Teamsters Union and the trucking\nindustry will be scheduled for the week of September 30.\nThe President does not plan to attend these. It was\nsuggested that, if possible, the Administration should\nstructure these as listening sessions and hopefully\nachieve some interaction between labor, industry and\nthe Administration. The views of concerned constit-\nuencies will be incorporated into a memo to the\nPresident laying out the DCRG's recommendations for\nlegislation.\n2. Air Bill. DOT and Justice met with the EPB on 9/24 to\nreach a final compromise on the merger standard to be\nproposed in the air bill. It was agreed that the present\nstandard would be grandfathered for 30 months, but that\nsubsequent proceedings would be judged on a test patterned\nafter the processes and criteria used in the Bank Merger\nAct. Final language is being prepared. The President\nwill meet with Secretary Coleman and submit the bill to\nCongress late in the week of 9/30 or early the following\nweek.\n3. Rail Bill. Although House and Senate Committees seem\nlikely to act favorably on some degree of reform for the\nrailroads, the House Committee is debating a multibillion\ndollar grant and loan/guarantee package which would be\nunacceptable to the Administration. It was agreed that\nthe DCRG ought to begin developing a strategy for com-\npromising issues with Congress, by first determining what\nelements of the President's bill could be candidates for\nnegotiation with the committees.\n4. Maritime Task Force. A status report on the work of the\nMaritime Task Force. was presented. Preliminary reports\nwill be submitted to DCRG by the end of October, a final\nset of recommendations by December 17. It was agreed not\nBERRID FORD LIBRART\n2\nto invite the FMC to participate in this stage of the\ngroup's work, but that a more finished product and/or\nlegislative suggestions would undoubtedly go to the\nFMC later for their comment. It was generally agreed\nthat the Task Force should continue to focus its\nattention on FMC regulation, and defer, for the time\nbeing at least, investigation into promotional programs\nor issues such as oil cargo preference.\n5. Robinson-Patman. Without a clear commitment from the\nHouse or Senate Committees to conduct hearings, Justice\nis now moving to set up regional hearings on R-P in four\nmajor cities. The Commerce Department will assist in\nmaking arrangements. Though no firm dates have been set,\nmost agreed that, if possible, the hearings should be held\nduring October so as not to conflict with the Vice President's\nschedule of hearings on domestic issues.\n6. McCarran-Ferguson. Justice has asked several States for\nmore information on their insurance regulations and will\nbe ready with a memo for the EPB within two weeks. There\nwas some discussion whether McCarran-Ferguson and possibly\nagricultural marketing orders should be given to a State/\nlocal Task Force as issues on which it should dwell.\n7. State-Local Task Force. CWPS' participation in the work\nof the Task Force is still undetermined, and firm arrange-\nments between the Domestic Council and Governor Ray have\nnot been concluded. A major unresolved issue is whether\nthe group, once constituted, should be given a package of\npre-studied issues (e.g., McCarran-Ferguson) on which to\ndeliberate, or whether the Task Force should try to work\nthrough the selection and study of its own issues.\n8. Kennedy-Hart Competitive Test Legislation. S. 2028 calls\nfor the incorporation of specific competitive tests against\nwhich regulatory agencies would have to measure their\ndecisions. The Senate Committee may ask the GAO to do\nsome preliminary investigations of present agency practices\nin conjunction with hearings on the bill. DCRG members\ngenerally feel the concept of such a test is worthwhile,\nbut that different language would have to be written for\nFORD & 938870 LIBRARY\n3\neach agency. This would involve several Congressional\nCommittees, and the likelihood of enrollment of such a\nbill is considered very small at this time.\n9. USDA. DCRG members met with Secretary Butz on 9/23.\nUSDA will be concentrating on reforms in marketing\norders and the procedures used for health/safety\ninspections. It was suggested that the Justice Depart-\nment share its findings on marketing orders with USDA\nin order to maximize the probabilities of achieving some\nuseful restructuring.\n10. Cable TV. The House Subcommittee on Communications is\nplanning major hearings after January 1. The Committee\nhas requested Administration views. There was some\ndiscussion of the viability of a strategy to interest\nbroadcasters in changes in licensing requirements in\nexchange for some support on cable issues. Meetings\nwith industry representatives will be held--a decision\nmemo to the EPB will be prepared within a month.\n11. Postal Rates. Paul MacAvoy reported that he disagreed\nwith the memo to Rumsfeld on the private express statutes\nand indicated he would pursue the issue.\n12. DCRG Coordination. Discussion on the DCRG coordination\nmemo produced agreement that Paul Leach would be\nresponsible for getting DCRG added as a part of the\nclearance net on Presidential material on regulatory\nreform. Leach will subsequently ask for and incorporate\nindividual views into one DCRG position. It was agreed\nthat a schedule of DCRG speaking engagements would be\nuseful. Lynn May will be responsible for maintaining it.\nMargaret Earl will provide more information on desirable\nevents at which DCRG members might want to speak.\nAppearances before Trade Associations and the NAM Con-\nference in New York during December are high priority.\nLIBRARY GERALD R. FORD\nSUMMARY OF DOMESTIC COUNCIL REVIEW\nGROUP MEETING\nWEDNESDAY, OCTOBER 1\nTHE ROOSEVELT ROOM\n1. Truck Bill. It was reported that a meeting had been\nheld with The Teamsters Union on September 30 and a\nmeeting was scheduled with some trucking executives on\nOctober 2. DOT will provide copies of the legislation\nfor them to review with comments due back in ten days.\nAlso, George Eads reported that the FEA analysis of\nthe energy consequences of the truck bill has some\nstrange assumptions. It was recommended that the\ndraft analysis be studied by CEA, OMB, CWPS and DOT.\n2. Air Bill. The plans for submitting an air bill might\nbe running into snags because the staff secretary was\nunwilling to staff the memo without a final printed\nbill which wouldn't be available until the end of the\nweek.\n3. Robinson-Patman. A meeting was held with CWPS, Commerce\nand Justice to discuss the prospects of public hearings.\nCWPS wanted Justice to take the lead and others believed\nthat CWPS would be a better forum. Mr. MacAvoy recom-\nmended that Jon Rose begin doing the initial staff work\nwith CWPS assistance.\n4. EIA. It was recommended that aspects of the EIA proposal\nshould be examined because they dealt with delay in\nregulatory actions in the energy area.\n5. Cable TV. It was reported that House hearings were\nscheduled for early next year regardless of whether the\nAdministration submitted legislation. Some interest\nappeared to be growing in the Senate also. A series of\nmeetings has been scheduled with interested industry\nrepresentatives to discuss alternative approaches to\nthe cable issue.\n6. Dependent Agency Reviews. Meeting with DOT, DOL and USDA\nhave been held. The Domestic Council was to schedule\nsimilar sessions with EPA and HEW. The need for follow-up\nwith FEA was also encouraged.\nFORD is GERALD LIBRARY\n7. Coordination. The press office will pull together\na list of good ideas for speeches and initial events,\nincluding regional media briefings. These will be\nreviewed by the DCRG and a plan will be developed.\n8. Anti-Trust Immunities Review. A meeting has been\nscheduled of the Anti-Trust Immunities Task Force for\nTuesday, October 7. Principal subject of discussion\nwill be reforming McCarran-Ferguson.\nFORD & 07V870 LIBRARY\nSUMMARY OF DOMESTIC COUNCIL REVIEW\nGROUP MEETING\nWEDNESDAY, OCTOBER 8\nTHE ROOSEVELT ROOM\n1. Broadcast Reforms. The Office of Telecommunications\nPolicy (OTP) briefed DCRG members on the status of two\nreform initiatives. OTP is drafting legislation which\nwill clarify the FCC's authority to open up the largest\nradio markets for greater competition between stations.\nFCC is considering an experiment to test certain\nderegulation steps, and OTP has encouraged the Commission\nto expand the size and scope of the test. Secondly, OTP\nis working to draw up a paper detailing specific dif-\nferences between it and the Justice Department over the\nnature of cable TV legislation.\n2. Progress on Administrative Reforms in the Commissions.\nOMB staff reported on administrative improvements underway\nin four commissions (ICC, CAB, FCC, FPC) and presented a\nquick overview on the remaining six. Detailed status\npapers were distributed to DCRG members. Each Commission\nhas been asked to report to the President in writing by\nDecember 31 on the steps taken and planned to implement\nthe four point program discussed at the July 10 White House\nmeeting.\n3. Truck Bill. The President has shown continuing interest\nin having the truck bill sent to Congress. Comments from\nthe unions and industry are expected the week of October 13.\nA final status report (together with any necessary\ndecisions) will be sent to the President for his action\nthe week of October 20. Submission to Congress targeted\nfor October 29.\n4. Air Bill. The Air Bill was submitted by the President\non October 8. The Administration is working to line up\nsponsors to introduce the bill when Congress reconvenes\nafter the Columbus Day Recess.\n5. Robinson-Patman. \"Justice and CWPS have met several times\nto discuss plans for public hearings on the proposed\nRobinson-Patman reforms. One session is planned for\nFORD & 07/170 LIBRARY\n2\nWashington, but no firm dates have been set for that\nhearing or others throughout the country. The House\nSmall Business Committee has expressed strong interest\nin seeing any data the Administration has developed on\nthe actual costs to the economy of the existing R-P laws\nand their enforcement.\n6. Antitrust Immunities. The Administration's Antitrust\nImmunities Task Force has scheduled a meeting for\nOctober 9 to discuss positions on insurance reforms,\nchanges in the Capper-Volstead Act which now exempts\nfarm cooperatives, and other business. It was reported\nthat Secretary Morton plans some field hearings on\nregulatory reform later this fall. The Justice Depart-\nment is talking with the Kennedy School of Government at\nHarvard about a study of the effects of health and safety\nregulations. A Washington conference on milk cooperatives\nand their marketing orders is being organized by\nEleanor Haas for December 4 and 5.*\n7. Executive Departments and Agencies. At the Cabinet\nmeeting on October 8, the President reaffirmed his\ninterest in having all the Executive Agencies achieve\nsubstantial regulatory reforms. A meeting between DCRG\nmembers and HEW is scheduled for October 15. EPA and\nFEA meetings have yet to be set. There was a strong\nfeeling that the meetings should include a discussion of\nthe agencies' compliance with the inflation impact\nprocedures.\n8. Maritime Issues. The FMC has written to the President\nrequesting him to exercise his authority to stay or annul\nan ICC ruling which would subject all intermodal through\nrates to filing and supervision by the ICC. OMB will\nwork with the White House Counsel's Office to help prepare\nposition and response papers.\n9. Cable TV. DCRG members are scheduled to meet separately\nwith representatives of the Cable Operators, Broadcasters,\nand Motion Picture Producers to discuss the Administration's\nplans for cable TV legislation.\n*Ms. Haas, formerly with the Consumer Federation of\nAmerica, is now associated with the Community Nutrition\nInstitute in Washington.\nGERALD FORD LIBRARY\nSummary of Domestic Council Review Group Meeting\nWednesday, October 15, 1975\nThe Roosevelt Room\n1. Milk Co-ops. Bill Lilly reported on CWPS' review of the\neffect of regulation on milk prices. He mentioned some\nencouraging work by an economist now at FTC refuting\nprevious USDA studies. Since Justice, FTC and USDA are\nalso interested in this area CWPS will develop a plan\nto coordinate these efforts. They will also summarize\nthe work done to date. Due 10/29.\n2. Financial Institutions Act. Steve Gardner, Deputy\nSecretary of the Treasury, reported on the status of\ncongressional action on FIA. The Senate Banking, Housing\nand Urban Affairs Committee unanimously reported out a\nbill which contains many of the Administration's proposed\nreforms. Treasury expects floor action later this month.\nOn the House side, they expect Reuss to hold hearings\nin February and March and committee action on a bill in\nApril. There was brief discussion over some of the\nspecifics such as the proposed 1 1/2 year Treasury study\nregarding interest on demand deposits.\n3. Truck Bill. Stan Morris announced we are now shooting\nfor submission of the bill on October 28 or 29. He mentioned\nthat comments were being prepared by the Teamsters and\ntrucking firm executives who attended the recent White\nHouse briefings. In general, they oppose various parts\nof the bill but appear to accept the fact that the\nAdministration is committed to its submission.\n4. Fair Trade. The Senate Judiciary Committee has still\nnot considered the fair trade repeal legislation. It\nappears that other events continue to crowd it off their\ncalendar. However, Senator Hruska is urging its considera-\ntion as soon as possible.\n5. Robinson-Patman/Predatory Pricing. The Domestic Council\nhas agreed to sponsor a hearing and the Justice Department\nis compiling a proposed witness list. The remaining\nquestions are timing--either early December or in January--\nand who pays for the expenses incurred. A meeting will be\nscheduled with Paul MacAvoy and OMB later this week to agree\non final plans and identify the economic experts to be\nasked to prepare materials.\n&\nFORD\n220\nLIBRARY\n2\n6. McCarran-Ferguson. Justice is drafting legislation to\nremove antitrust immunity for the insurance industry and\napply the Sherman Act to private premium or commission\nrate fixing activities. It will not rule out maximum\nrate authority for the States. Once developed, the proposal\nwill be put through the normal legislative clearance\nprocess and scheduled for EPB discussion to determine\nwhether informal briefings should be held with industry\nrepresentatives. Draft due in two weeks.\n7. Cable T.V. A meeting with broadcast industry represen-\ntatives to discuss issues on cable legislation--pay cable\nand retransmission--is scheduled for Thursday, October 16,\n1:30 in the Roosevelt Room. A separate session with the\nmotion picture industry is set for Monday, October 20.\n8. Dependent Agencies. Paul Leach and Paul MacAvoy\nreported on the meeting with Secretary Mathews of HEW.\nStill to be scheduled are EPA and FEA.\n9. Speeches and Press. Margaret Earl handed out a list of\npossible speaking engagements and asked for volunteers.\nShe also mentioned that Domestic Councils' Fact Sheet\non regulatory reform had been printed and sent as an\nEditor's mailing along with the air bill materials. The\nPress Office plans a similar distribution to White House\nstaff and sub-cabinet officials.\n10. Other.\n-- Stan Morris mentioned that there is a good possibil-\nity that ACA legislation will be sent to the White\nHouse in November.\n-- Sid Jones reported Treasury's position on the S.E.C.\nRule 394 action-that this is \"not the time to\nchange 394\".\n2.\nFORD\nGERALD\nLIBRARY\nMEETING WITH DUNHAM AND LEACH\nON REGULATORY REVIEW GROUP\nTuesday, September 2, 1975\n3:30 p.m.\nMr. Cannon's Office\nFORD i LIBRARY GERALD\nRegulatory\nTHE WHITE HOUSE\nRefrid\nWASHINGTON\nACTION\nOctober 29, 1975\nMEMORANDUM FOR:\nJIM CANNON\nFROM:\nPAUL LEACH Parl\nSUBJECT:\nRegulatory Reform Letter\nto Coleman, Butz, Mathews,\nVrey Dunlop and Train\nAttached is a draft letter to the five key Executive\nDepartment and Agency heads.\nboto\ncobinet\nFORD is LIBRARY GERALD\nTO:\nWilliam T. Coleman, Secretary of Transportation\nF. David Mathews, Secretary of Health, Education\nand Welfare\nEarl L. Butz, Secretary of Agriculture\nJohn T. Dunlop, Secretary of Labor\nRussell E. Train, Administrator, Environmental\nProtection Agency\nDear\non out 8\nAs you know, I am seriously concerned with the growing\nproblems posed by regulation in our society. To emphasize\nthis concern, I met on July 10 with the Commissioners of the\nten Independent Regulatory Commissions. Subsequently at\nseveral cabinet meetings, I have indicated that I also\nexpect regulatory improvements within the Executive\nDepartments and Agencies.\nSo that my concern over regulatory reform will lead to\nspecific, continuing improvements in your Department\n(Agency), I asked several members of the Domestic Council\nReview Group on Regulatory Reform to meet with you to\ndiscuss the opportunities for reform within your Department\n(Agency). I understand that meetings have taken place\nand that you will be continuing to work with the Regulatory\nReform Review Group as your Department (Agency) pursues\nreform initiatives over the coming months.\n-2-\nNow that you have started a substantial reform effort,\nI would like you to provide me with a written report on\nyour reform goals and plans. Specifically, by December 1\nI would like to know what your Department (Agency) has\ndone and plans to do:\n-- To reduce regulatory delays;\n-- To improve the use of benefit/cost\nanalysis in regulatory decision making;\n-- To respond to valid consumer concerns; and\n-- To eliminate outdated or unwise regulation.\nNeedless to say, I am not asking you to dismantle necessary\nhealth and safety regulation, but rather to improve the\nsubstance and process of regulation. In this first\nand later reports, I will be most interested to learn of\nyour efforts to deal with this problem which is also of\nserious concern to the Congress and the American people.\nSincerely,\nGERALD R. FORD"
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