Ask the Scholar
Document scope · 1 page
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory.
For page-specific OCR and visual context, open one of the page chats.
Scholar Source Context
Document identity
localId
1562815
label
Antitrust - Mail from Businessmen: Edward Schmults File (1)
core
doc
dtoType
document
citationUrl
pageCount
1
Source metadata
id
1562815
sourceUrl
contentType
document
title
Antitrust - Mail from Businessmen: Edward Schmults File (1)
citationUrl
collections
John O. Marsh Files (Ford Administration)
John Marsh's General Subject Files
subjects
Antitrust law
Legislation
thumbnailUrl
largeImageUrl
imageCount
1
hasImages
yes
source
import
hasTranscription
no
Source extras
naId
1562815
coverageEndDate
logicalDate
1976-09-30
month
9
year
1976
coverageStartDate
logicalDate
1976-08-01
month
8
year
1976
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
mediaId
c96e0d9c04d21dc0
ocrText
The original documents are located in Box 3, folder "Antitrust - Mail from Businessmen:
Edward Schmults File (1)" of the John Marsh 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 R. 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States of America his copyrights in all of his unpublished writings in National Archives collections.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 3 of the John Marsh Files at the Gerald R. Ford Presidential Library
ECS
CLAIROL
345 PARK AVENUE
NEW YORK, N.Y. 10022
GARTH F. DIMON
VICE PRESIDENT
INDUSTRIAL RELATIONS
August 5, 1976
The President
The White House
Washington, D. C. 20500
Mr. President:
As an executive of a major consumer-goods company, and an active member
of the business community, I urge you to reject the parens patriae concept,
even as limited and modified in pending Congressional proposals (S. 1284,
H.R. 8532, et al).
The concept, in any of its versions, is essentially unrelated to protection
of consumer rights, either in terms of prevention of abuse or reparations for
losses, but it might have a chilling effect on competition, to the detriment
of consumers.
It would have no value as a deterrent since the actions proscribed are typically
subject only to ex post facto judgments in which courts frequently split nar-
rowly. The judgments at issue are not ones having to do with sharp practices,
deceit or intent to circumvene either the spirit or the letter of the law, but are
solely concerned with remote, problematical and minimal effects. The only
way companies can conduct themselves so as to reasonably assure that they
will not be sanctioned under parens patriae is to withdraw significantly from
the kinds of initiatives which foster competition and the interests of consumers.
It would also have no significant value as a means of compensating consumers
since, as the provisions regarding prior notification tacitly acknowledge, it
would be practically impossible to identify the vast majority of consumers
presumed to have been injured. The result would be that the damages would
revert to the State, and financial awards which are justified in the act as
being necessary to "make whole" injured parties would, in fact, be converted
to penalties where the nature of the proscribed activity was not such as to
warrant penalties.
FORD i QURALD LIBRARY
Page 2
The President
August 5, 1976
Clearly, then, the concept is lacking in equity. From the consumer-
standpoint it is a fraud, which appears to serve the consumer but in
reality can only work against the best interests of most consumers.
It's principal effect would be to license state attorneys general to
engage in grandstand harassment of legitimate businessmen.
Sincerely yours,
Serth 7 Divin
Garth F. Dimon
GFD/m
FORD & RERALD LIBRARY
August 11
THE WHITE HOUSE
WASHINGTON
TO:
ED SCHMULTS
FROM: JOHN 0 MAR
For Direct Reply
For Draft Response
XX
For Your Information
Please Advise
FORD & LIBRARY GERALD
THE WHITE HOUSE
WASHINGTON
August 11, 1976
Dear Mr. Dimon:
Many thanks for sending me a copy of your
recent letter to the President concerning
the parens patriae legislation.
I found your letter most interesting and
have taken the liberty of sharing it with
those individuals here at the White House
working on this matter. We appreciate your
bringing this to our attention.
Sincerely,
Jana John Counsellor O. Marsh, to the Jr. President
Mr. Garth F. Dimon
Vice President
Industrial Relations
Clairol
345 Park Avenue
New York, New York 10022
FORD i LIBRAR 07%
CLAIROL
345 PARK AVENUE
NEW YORK, N.Y. 10022
GARTH F. DIMON
VICE PRESIDENT
INDUSTRIAL RELATIONS
August 5, 1976
The President
The White House
Washington, D. C. 20500
Mr. President:
As an executive of a major consumer-goods company, and an active member
of the business community, I urge you to reject the parens patriae concept,
even as limited and modified in pending Congressional proposals (S. 1284,
H.R. 8532, et al).
The concept, in any of its versions, is essentially unrelated to protection
of consumer rights, either in terms of prevention of abuse or reparations for
losses, but it might have a chilling effect on competition, to the detriment
of consumers.
It would have no value as a deterrent since the actions proscribed are typically
subject only to ex post facto judgments in which courts frequently split nar-
rowly. The judgments at issue are not ones having to do with sharp practices,
deceit or intent to circumvene either the spirit or the letter of the law, but are
solely concerned with remote, problematical and minimal effects. The only
way companies can conduct themselves so as to reasonably assure that they
will not be sanctioned under parens patriae is to withdraw significantly from
the kinds of initiatives which foster competition and the interests of consumers.
It would also have no significant value as a means of compensating consumers
since, as the provisions regarding prior notification tacitly acknowledge, it
would be practically impossible to identify the vast majority of consumers
presumed to have been injured. The result would be that the damages would
revert to the State, and financial awards which are justified in the act as
being necessary to "make whole" injured parties would, in fact, be converted
to penalties where the nature of the proscribed activity was not such as to
warrant penalties.
&
FORD
RALD
LIBRAR
Page 2
The President
August 5, 1976
Clearly, then, the concept is lacking in equity. From the consumer
standpoint it is a fraud, which appears to serve the consumer but in
reality can only work against the best interests of most consumers.
It's principal effect would be to license state attorneys general to
engage in grandstand harassment of legitimate businessmen.
Sincerely yours,
Serth 7. Diam
Garth F. Dimon
GFD/m
UERALD R. FORD LIBRARY
&
Kraftco Corporation
ECS
John M. Richman
Senior Vice President-Administration
General Counsel
August 13, 1976
Hon. Philip W. Buchen, Esq.
Executive Office of the President
The White House
Washington, D. C. 20500
Dear Mr. Buchen:
Recent amendments to S.1284 and H.R. 8532, the
so-called parens patriae antitrust bills, were largely
cosmetic, and these bills continue to be serious threats
to companies such as ours. Authorization to state attorneys
general to bring antitrust damage suits in huge amounts
would not be useful as a deterrent to unlawful activity
and would result in damage awards totally out of proportion
to the minimal benefit which might be derived by the
public. Strong effort should be made to prevent the
enactment of this unwise legislation.
Very truly yours,
CC: Hon. Hugh Scott
United States Senate
Washington, D. C. 20510
Hon. John Rhodes
House of Representatives
Washington, D. C. 20515
FORD is LIBRARY OERALD
Kraftco Court, Glenview, Illinois 60025
AMERICAN CYANAMID COMPANY
1625 EYE STREET, N.W.
WASHINGTON, D. C. 20006
202 737-4800
DON A. GOODALL
WASHINGTON CORPORATE
REPRESENTATIVE
August 16, 1976
Mr. Edward C. Schmults
Deputy Counsel to the President
The White House
Washington, D. C. 20500
Dear Mr. Schmults:
It is my understanding that you are the
White House staff person responsible for tracking
antitrust legislation. If that is correct you
will probably have already received the original
of the enclosed copy of a letter to the President
from our Chief Executive Officer, Dr. James G.
Affleck.
In any event, I wanted to make sure it came
to your personal attention. We are very concerned
about this legislation, for the reasons outlined
in Dr. Affleck's letter. If further elaboration
of our views would be useful, please call me and
I will arrange for representatives of our legal
staff to discuss this with you, either in person
or by telephone, as you prefer.
We hope that you will be advising the Presi-
dent that this legislation is not what it appears
to be.
Sincerely,
DAG:pau
Don A. Goodall
enclosure
FORD & LIBRAR OTV
AMERICAN CYANAMID COMPANY
WAYNE, NEW JERSEY 07470
JAMES G. AFFLECK
CHAIRMAN AND PRESIDENT
August 12, 1976
The Honorable Gerald R. Ford
The President
The White House
Washington, D. C. 20500
Re: H.R. 8532, H.R. 13489 and H.R. 14580
Dear Mr. President:
The antitrust bills about which I wrote to you on
May 27 have been passed by the House and Senate and will soon
be considered by a Conference Committee.
Some proponents of the legislation may urge that
amendments in the bills have made the legislation less objec-
tionable. The fact is that even the amended versions would
become an instrument for serious and unjustified damage to
American industry.
For example, the proposed allowance of trebled
awards only in price fixing and patent fraud cases is claimed
to be justified because such violations are always intentional.
However, I am sure your antitrust advisors will tell you that
even in the areas of price fixing and patent fraud the broad
and general language of the Sherman Act permits findings of
antitrust violations regardless of the honest motives of the
defendant. The problem is particularly serious in the patent
field where the recent development is to declare unlawful
under present standards, conduct and activities which were
regarded as entirely proper and lawful when they occurred
many years ago.
Moreover, the attempt to justify the allowance of
confiscatory awards on the grounds that the violations are
intentional is, in effect, an admission that the purpose of
the Parens Patriae legislation is punitive and not compensatory.
Yet there has been no showing that the legislation you signed
late last year, authorizing prison terms of 3 years and fines
of $1,000,000, is inadequate for that purpose. If additional
penalties are deemed necessary, they should not be enacted in
the guise of treble damages and placed at the disposal of pri-
vate damage lawyers and 50 state attorneys general.
ALD FORD LIBRAR;
AMERICAN CYANAMID COMPANY
The Honorable Gerald R. Ford
Page Two
August 12, 1976
The pending legislation would also give the Department
of Justice new powers with regard to investigations and mergers.
Basically, it would allow government lawyers to compel testimony
from innocent third persons and to block mergers without having
to justify to a court that there is a reasonable probability of
involvement in a violation. Such arbitrary power, which may be
exercised without prior judicial approval, is unnecessary and
is offensive to our concepts of due process.
I sincerely hope that your administration will continue
to oppose the enactment of this legislation.
Very truly yours,
JGA:rb
FORD LIBRARY &
AMERICAN CYANAMID COMPANY
1625 EYE STREET, N.W.
WASHINGTON, D. C. 20006
202 737-4800
DON A. GOODALL
WASHINGTON CORPORATE
REPRESENTATIVE
August 16, 1976
Mr. Philip W. Buchen
Counsel to the President
The White House
Washington, D. C. 20500
Dear Mr. Buchen:
In the event that the attached letter does
not come to your attention, we are sending you
a copy so that you may be fully informed about
the concern of our Chief Executive Officer, Dr.
James G. Affleck, regarding pending antitrust
legislation.
Sincerely,
Dan Hoodall Don A. Goodall
DAG:dns
Enclosure
FORD LIBRARY is DTV
AMERICAN CYANAMID COMPANY
WAYNE, NEW JERSEY 07470
JAMES G. AFFLECK
CHAIRMAN AND PRESIDENT
August 12, 1976
The Honorable Gerald R. Ford
The President
The White House
Washington, D. C. 20500
Re: H.R. 8532, H.R. 13489 and H.R. 14580
Dear Mr. President:
The antitrust bills about which I wrote to you on
May 27 have been passed by the House and Senate and will soon
be considered by a Conference Committee.
Some proponents of the legislation may urge that
amendments in the bills have made the legislation less objec-
tionable. The fact is that even the amended versions would
become an instrument for serious and unjustified damage to
American industry.
For example, the proposed allowance of trebled
awards only in price fixing and patent fraud cases is claimed
to be justified because such violations are always intentional.
However, I am sure your antitrust advisors will tell you that
even in the areas of price fixing and patent fraud the broad
and general language of the Sherman Act permits findings of
antitrust violations regardless of the honest motives of the
defendant. The problem is particularly serious in the patent
field where the recent development is to declare unlawful
under present standards, conduct and activities which were
regarded as entirely proper and lawful when they occurred
many years ago.
Moreover, the attempt to justify the allowance of
confiscatory awards on the grounds that the violations are
intentional is, in effect, an admission that the purpose of
the Parens Patriae legislation is punitive and not compensatory.
Yet there has been no showing that the legislation you signed
late last year, authorizing prison terms of 3 years and fines
of $1,000,000, is inadequate for that purpose. If additional
penalties are deemed necessary, they should not be enacted in
the guise of treble damages and placed at the disposal of pri-
vate damage lawyers and 50 state attorneys general.
FORD & LIBRARY GERALD
AMERICAN CYANAMID COMPANY
The Honorable Gerald R. Ford
Page Two
August 12, 1976
The pending legislation would also give the Department
of Justice new powers with regard to investigations and mergers.
Basically, it would allow government lawyers to compel testimony
from innocent third persons and to block mergers without having
to justify to a court that there is a reasonable probability of
involvement in a violation. Such arbitrary power, which may be
exercised without prior judicial approval, is unnecessary and
is offensive to our concepts of due process.
I sincerely hope that your administration will continue
to oppose the enactment of this legislation.
Very truly yours,
JGA:rb
FORD ; LIBRARY BERALD
Peavey Company
Peavey Building
Peavey
730 Second Avenue So ith
E S
Minneapolis, Minnesota 55402
Fredric H. Corrigan
Chairman of the Board
Chief Executive Officer
August 16, 1976
The President
The White House
Washington, D.C. 20500
Dear President Ford:
It has come to my attention that new antitrust legislation
now ready for Executive action contains provisions for parens
patriae authority which, in my opinion, is extremely dangerous.
I respectfully urge your veto of this legislation.
I am not taking issue, although I could, with this entire
piece of legislation, but I fear the rash of suits and forced
settlements that might result from the parens patriae section.
Sincerely,
Fredri gritz H Corrigan
dh
cc: Philip W. Buchen, Counsel to the President
John O. Marsh, Jr., Counsellor to the President
John J. Rhodes, Minority Leader, U.S. House of Representatives
Hugh Scott, Minority Leader, U.S. Senate
LIBRARY CERALD R. FORD
SAVANNAH FOODS & INDUSTRIES, INC.
SAVANNAH, GEORGIA
WILLIAM W. SPRAGUE, JR.
August 17, 1976
PRESIDENT
The President
The White House
Washington, D. C. 20500
Dear Mr. President:
Permit me to join other business colleagues in expressing my opposition
to the comprehensive antitrust bill which is now in conference in the Congress.
One of its most dangerous titles, parens patriae, would authorize every State
Attorney General to bring treble damage suits against a company on behalf of all
state residents for alleged antitrust violations. This bill would further allow the
State Attorneys General to hire private lawyers to bring such suits.
Based on my experience as President of a Fortune 500 company and in
dealing with antitrust matters in the past, it is my opinion that the two above
provisions will encourage a flood of "blackmail" suits against business firms
that will benefit primarily the lawyers hired to bring suits while causing higher
prices for consumers, business failures and further clogging the already congested
Federal court system. Since a parens patriae suit could be brought whenever there
is a price change in a company's product and a similar price change in that of one
of the company's competitors, then such action could result in the allegation by
money-hungry plaintiffs and plaintiffs' attorneys that there was price fixing. Thus,
this provides a basis for such "blackmail" suits.
Therefore, speaking on behalf of the management and employees of our
company, I respectfully urge you to veto this bill, S. 1284, when it comes to
your desk for signature.
With best wishes, I am
Sincerely,
WW Snague/
cc: The Honorable Philip W. Buchen
The Honorable John O. Marsh, Jr.
FORD i LIBRARY CERALD
The Honorable John J. Rhodes
The Honorable Hugh Scott
Mr. George W. Koch
ENZO JEL COMPANY
QUALITY DESSERT PRODUCTS AND CONTRACT
Manufacturers of
PACKAGING OF ANY DRY MIX FOOD PRODUCT
502 SOUTH 9TH STREET
PHONE 457-7761
SHEBOYGAN, WISCONSIN 53081
August 17, 1976
President Ford
The White House
Washington, D.C. 20500
Dear President Ford:
I am writing you to ask you to please VETO any bill that comes to
your desk that has a PARENS PATRIAE section in it. I ask you this
as a concerned businessman, but more important than that, as a con-
cerned consumer, and with a family of eight I think I qualify as a
large consumer.
This type of bill will probably never directly effect me as a small
businessman, but it will effect the larger concerns I depend on for
my existence, and thereby indirectly effect me. It has been my ex-
perience that big business does an outstanding job in giving the best
possible price to people like me and, therefore, we can compete in
our economy. PARENS PATRIAE legislation could take the sharp edge
of competition and destroy it to a point where the small company could
no longer enjoy a piece of the action.
Our courts will become overrun with cases instigated by unscrupulous
and misinformed attorneys and 99% of these cases will be settled out
of court, which will amount to nothing more than a payoff.
In time, and history will back this up, the Government will have to
step in and create a bureau to control prices, which will result in
more taxes. The added cost to business in settlements and legal fees
will be added to the cost of products and ultimately the consumer
pays the whole bill.
This is why I ask for your veto as a consumer first, and a business-
man second.
Thank you for your time, Mr. President.
Sincerely,
83RALD ORD LIBRANI,
ENZO JEL COMPANY
Luald Houses
Gerald Hoerres:cb
President
PETER PAUL, INC.
NAUGATUCK, CONNECTICUT
Lloyd W. Elston
President
August 17, 1976
The President
The White House
Washington, D.C. 20500
Dear Mr. President:
I write this letter to express my grave concern
over the parens patriae section of new antitrust
legislation coming to you for signature.
I followed the progress of this legislation through
the Congress and am appalled as well as surprised
that it has progressed this far.
In my opinion, this legislation has terrible faults
with the possibility for great injustice, increased
costs, and an invasion of areas in which new anti-
trust legislation is not needed.
As I understand the legislation, it would permit
State Attorneys General to hire private attorneys
to file antitrust claims on behalf of all state
residents. The payment of these lawyers would cer-
tainly add to the attraction to file these suits, and
would undoubtedly add to the cost of any settlement.
Based on the experience in our country now with out-
sized awards for insurance claims, I am certain that
the corporation faced with a suit of this sort, would
rather settle, in a sense react to blackmail, than
undergo the cost to fight the suit in court.
Undoubtedly in the case of a nationally distributed
product such as ours, if one Attorney General files
a suit, we can be fairly certain that 49 other suits
would be filed in the remaining states.
FORD i LIBRARY GERALD
The President
August 17, 1976 - Page 2.
The ultimate cost of legislation will be borne by
the taxpayer on the one side and the consumer on the
other. I think that no one will be served by this
but the legal fraternity.
I hope that you will use your power to veto because
this is a bad bill.
Thank you.
Very respectfully yours,
Destin
Lloyd W. Elston
President
LWE/cr
CC: The Honorable
The Honorable
Philip W. Buchen
John O. Marsh, Jr.
Counsel to the President
Counsellor to the President
The White House
The White House
Washington, D.C. 20500
Washington, D.C. 20500
The Honorable
The Honorable
John J. Rhodes
Hugh Scott
Minority Leader
Minority Leader
U.S. House of
U. S. Senate
Representatives
Washington, D.C. 20510
Washington, D.C. 20515
FORD & LIBRAN FRALD
COPY
E.S.
TV
TV TIME FOODS, INC.
time
P.O. BOX 7306
CHICAGO. ILLINOIS 60680
EXECUTIVE OFFICES / 2277 HOWARD STREET
CHICAGO, ILLINOIS 60645 / TEL. 312/743-8600
August 17, 1976
The President of the United States
The Honorable Gerald Ford
The White House
Washington, D. C. 20500
Dear Mr. President:
I am taking this opportunity to advise you of my feelings regarding pending
legislation in the Congress. I understand that a parens patriae clause has
received approval in the legislature for inclusion in a current piece of
legislation. As I know you are aware, parens patriae is designed to es-
tablish the machinery for allowing individual State Attorney Generals the
authority to file suit against a company on behalf of the constituents of
the state for alleged anti trust violations. This bill would also allow
the State Attorney Generals to hire private lawyers to bring the suits.
I must voice my strongest opposition to this bill. It is my opinion that the
cure will be much more damaging than the cause.
Let me try an analogy. In the last few years the number of consumer suits
in the product liability field have increased markedly. In most instances
settlements have been awarded out of court for insurance companies who are
unwilling to risk a suit being awarded for the plaintiff and having to suffer
the consequences for tremendous penalty payments, so this form of settlement
has increased the cost of product liability insurance dramatically. The end
result being the consumer pays more for her goods. I see a similar trend
with this type of legislation. With the ability of a State Attorney General
to delegate a private attorney to file suit, I fear the tendency would be for
a substantial number of unwarranted law suits to be brought against industry.
Rather than allowing the case to come to trial, many "blackmail" settlements
would be arrived at. It would make the current climate for business almost
impossible.
I might add that Attorney General Levi in a statement made on June 16th has
a similar opinion. In addition, he foresees this as a basis for the eventual
development of a governmental pricing agency to authenticate the reasonable-
ness of prices that are charged by industry.
Having survived Phases 1, 2, 3 and 4 and having the ability now of hindsight
to evaluate the serious complications that arrived from the imposition of
price controls, I feel we don't need this additional imposition of govern-
ment regulations.
&
FORD
GERALD
LIBRAN,
PROCESSING AND PACKAGING PLANTS
BREMEN. INDIANA
August 17, 1976
Page Two
I know you have expressed yourself on many occasions of your objective to
decontrol the government's grip on business to allow for more freedom in
the market place. Industry is well aware of the consumer movement and I
feel that many changes have already been instigated on the basis of market
needs and I also feel that this trend will continue. Surely the consumer
is in a better position today than she was just a few years ago.
I truly hope that you will see fit to support my opinion and veto any
legislation that would be presented to you with a parens patriae inclusion.
Sincerely yours,
TV TIME FOODS, INC.
John P. Bishop
President
JPB :ns
FORD & LIBRARY
R
LAND
O
LAKES
LAND
LAKES
LAND O LAKES
Land O'Lakes, Inc., GENERAL OFFICES
614 McKINLEY PLACE MINNEAPOLIS, MINN. 55413 PHONE (612) 331-6330
MAILING ADDRESS, P.O. BOX 116, MINNEAPOLIS, MINN. 55440
FEICO®
QUALITY FOODS
AGRICULTURAL SERVICES
August 18, 1976
The President
The White House
Washington, D. C. 20500
Dear President Ford:
1. ,
Land O'Lakes, Inc. and its farmer members urge you to
veto any anti-trust bill which contains a parens patriae
section in it.
We do not think such a bill is in the interest of farmers,
consumers or the public.
Very truly yours,
Richard Magnusor
Vice President
General Counsel
br
FORD & LIBRARY UERALD
ES,
THE COCA-COLA BOTTLING COMPANY
OF NEW YORK, INC.
CONTINENTAL PLAZA NORTH
411 HACKENSACK AVENUE
CHARLES E.F. MILLARD
PRESIDENT
hackensack, N.J. 07601
(201) 487-8650
August 18, 1976
The President
The White House
Washington, D.C. 20500
Dear Mr. President:
The purpose of this letter is to respectfully request
that you veto any legislation which comes to your
desk with a parens patriae section in it.
Essentially, our position is similar to that of Attorney
General Levi as expressed by him on June 16th.
We view this as a totally inappropriate section of any
proposed anti-trust or other legislation, and one which
is contrary to your expressed position regarding over-
regulation.
Thank you for your consideration of this request.
Very truly yours,
/ Millard
CEFM/ff
cc:
The Honorable Philip W. Buchen
The Honorable John O. Marsh, Jr.
The Honorable John J. Rhodes
FORD is LIBRAR ALD
The Honorable Hugh Scott
Mr. William Baroody, Jr.
CASTLE & COOKE, INC.
August 18, 1976
C
The President
The White House
Washington, D.C. 20500
Dear President Ford:
I urge you to do everything in your power to keep the Parens
Patriae legislation as it may be enacted from becoming effec-
tive. Giving the 50 State Attorneys General and the private
legal counsel they may engage the right to proceed with purely
curious witch hunts would be a disaster. Wrongs obviously must
P
be corrected, but to give a legal counsel a hunting license
based on contingency fees and no financial liability to the
hunter would soon become costly indeed.
I thank you for considering these views.
Y
Sincerely,
ORIGINAL SIGNED BY
MALCOLM MacNAUGHTON
cc: (The Honorable Philip W. Buchen
The Honorable John 0. Marsh, Jr.
The Honorable John J. Rhodes
The Honorable Hugh Scott
bcc: Mr. George W. Koch (GMA)
ERALD q. FORD LIBRAR
CASTLE & COOKE, INC.
AUG19'76
DRAWER 2990, HONOLULU, HAWAII 96802
HAWA'I
13
The Honorable Philip W. Buchen
Counsel to the President
The White House
Washington, D.C. 20500
E
Thomas J. Lipton, Inc.
800 SYLVAN AVENUE
ENGLEWOOD CLIFFS, N.J. 07632
L. E. HICKS
ASSOCIATE GENERAL COUNSEL
August 19, 1976
The President
The White House
Washington, D. C. 20500
Dear Mr. President:
Recently enacted parens patriae legislation has been sent
to you for signature. I strongly urge that this potentially disasterous
legislation receive your veto.
Giving the fifty State Attorneys General the right to file multi-
million dollar antitrust claims for alleged price fixing overcharges, on
behalf of all state residents, is shocking. But that is what the House
and Senate have done. Even more appalling, the legislation would
permit state-retained private "plantiffs" lawyers to bring such suits.
There is no question that this authority in the hands of State
Attorneys General and private "plantiffs" lawyers will foment multi-
million antitrust suits against companies such as ours for the purpose
of gaining "blackmail" settlements. The potential danger was best
expressed by Attorney General Levi when he recently said concerning
this parens patriae authority:
the possible amount of damages can be
so terrific that for a large company the threat
of that kind of case is likely to be met with
a settlement.
FORD LIBRAR & 8768
The President
August 19, 1976
Page 2
Only your veto can prevent this legislation from being
enacted. Your consideration of the many sound reasons supporting
a veto is sincerely appreciated.
Very truly yours,
Lawrence E. Hicks
Associate General Counsel
bcc The Honorable
Philip W. Buchen
Counsel to the President
The White House
Washington, D.C. 20500
The Honorable
John O. Marsh, Jr.
Counsellor to the President
The White House
Washington, D.C. 20500
The Honorable
John J. Rhodes
Minority Leader
U. S. House of Representatives
Washington, D.C. 20515
The Honorable
FORD & LIBRARY WERALD
Hugh Scott
Minority Leader
U. S. Senate
Washington, D.C. 20510
THOMAS GEORGE EWING
7 RUE DEAUVILLE, NEWPORT BEACH, CALIFORNIA 92660 714-640-1841
August 19, 1976
The President
White House
Washington, D. C. 20500
Dear Mr. President:
This is to strongly urge your veto of any parens patriae
legislation which may be sent over from the Congress.
Legislation of this sort would amount to extortion on
the part of private attorneys of large companies such as
the one which I represent. We would, I'm afraid, be
subject to blackmail-type settlements, or face the pros-
pect of long drawn out suits for potentially enormous
damage claims, which could be brought by private plain-
tive lawyers appointed by State Attorney General to
bring parens patriae suits.
This is to strongly urge against any legislation of this
sort, and to seek your veto of any bill containing a
parens patriae clause.
Sincerely,
Van THOMAS G. EWING
TGE/jt
cc: The Honorable
The Honorable
Philip W. Buchen
John O. Marsh, Jr.
Counsel to the Pres.
Counsellor to the Pres.
The White House
The White House
Washington, D. C. 20500
Washington, D. C. 20500
The Honorable
The Honorable
John J. Rhodes
Hugh Scott
FORD is LIBRAN ERALD
Minority Leader
Minority Leader
U. S. House of Rep.
U. S. Senate
Washington, D. C. 20515
Washington, D. C. 20510
Mr. George W. Koch, President
Mr. Tom Costello
Grocery Manufacturers of Am. Inc.
NPFC/NCC
1425 K Street, N.W.
Washington, D.C. 20005
August 19, 1976
The Honorable Gerald R. Ford
The President
The White House
Washington, D. C. 20501
Dear Mr. President:
Please permit me to take this means of respectfully urging
that you carry out your stated intention of vetoing the new
antitrust legislation if Congress submits it to you in its
present form. The so-called "Parens Patrine" provision
represents a dangerous and unwarranted interference in
American business and could, as stated by Attorney Gen-
eral Edward Levi, force companies into "blackmail" set-
tlements and even lead to government price controls.
If these possibilities do materialize, it will be the consumer
who ultimately foots the huge bill that will come in the form
of higher prices, while the lawyers fomenting such litiga-
tion will reap huge legal fees. In view of this, any bill that
reaches your desk containing such objectionable provisions
as Parens Patrise should certainly not be signed into law.
Thank you very much for your understanding and your sup-
port of American business and your stated intention of de-
fending it against this type of repressive regulation.
Sincerely,
Andrall E. Pearson
bcc: The Honorable Philip W. Buchen
>
The Honorable John O. Marsh, Jr.
The Honorable John J. Rhodes
The Honorable Hugh Scott
FORD i LIBRARY GERALD
PUREX CORPORATION
CARSON, CALIFORNIA 90745
EXECUTIVE OFFICES
August 19, 1976
The President
The White House
Washington, D. C. 20500
My dear Mr. President:
I am greatly dismayed by the recent legislation passed by
Congress granting parens patriae authority. My concern is the
negative impact of this legislation on the free enterprise system.
Operating costs will undoubtedly rise, as well as consumer prices,
as unscrupulous lawyers take unjustified advantage of this legis-
lation.
I believe that our political freedoms are closely allied
with our economic system. Any legislation that seriously erodes
the basis of our free enterprise system ultimately erodes our per-
sonal liberties.
Your veto of this parens patriae legislation is the last
hope for maintenance of moderation in this important matter
Very respectfully yours,
Gurge Evans
George D. Evans
Vice President & General Manager
Grocery Products Group
GDE:Img
FORD & LIBRARI GERALD
Copy to:
The Honorable
Philip W. Buchen
Counsel to the President
The White House
Washington, D. C. 20500
The Honorable
John O. Marsh, Jr.
Counsellor to the President
The White House
Washington, D. C. 20500
The Honorable
John J. Rhodes
Minority Leader
U.S. House of Representatives
Washington, D.C. 20515
The Honorable
Hugh Scott
Minority Leader
U.S. Senate
Washington, D. C. 20510
FORD i LIBRARY BERALD
HILLS
BROS
COFFEE. INC.
P.O. BOX 3149, SAN FRANCISCO, CALIFORNIA 94119
AREA CODE 415 546-4600
WRITERS DIRECT DIAL NUMBER 415-546-4660
August 19, 1976
The President
The White House
Washington, D. C. 20500
Mr. President:
As a concerned member of the American Food Industry we urgently solicit your
opposition to and veto of any parens patriae legislation sent to you by Congress.
The far-reaching effects of parens patriae provisions could result in economic
chaos for every manufacturing company in the United States. It would be an
open invitation for opportunists - both lay and legal - to force business firms
into sizeable "blackmail" settlements. The consumer would ultimately foot the
bill in the form of higher prices while lawyers inciting such litigation would
reap large legal fees and further clog the already congested court system.
It behooves you, in the interest of your constituents, to resist all unnecessary
and detrimental legislation by precedent use of your veto priviledge.
Sincerely,
HILLS BROS. COFFEE, INC.
E.
EJS/ref
cc: Philip W. Buchen
FORD ; LIBRARY LRALD
John O. Marsh, Jr.
John J. Rhodes
Hugh Scott
HB
TASTY BAKING COMPANY
2801 HUNTING PARK AVENUE, PHILADELPHIA, PENNSYLVANIA 19129
AREA CODE 215-228-4200
CHAIRMAN OF THE BOARD
August 20, 1976
The President
The White House
Washington D. C. 20500
Dear Mr. President:
Any legislation containing a parens patriae provision
allowing the fifty State Attorneys General to file class
action antitrust claims would subject this company - and all
American business - to all sorts of nuisance suits which our
insurance could not possibly cover.
This, of course, could be very damaging to American busi-
ness.
May I respectfully urge you that veto any bill which comes
to you with a parens patriae section in it?
Sincerely,
Paul R. Kaiser
PRK/ks
FORD
CONSUMER PRODUCTS GROUP
PRINTING SUPPLIES GROUP
TASTYKAKE, INC.-Cakes, Pies & Cookies
PHILLIPS & JACOBS, INC.-Philadelphia, Allentown, Pittsburgh, Lancaster
BUCKEYE BISCUIT CO.-Biscuits & Cookies
BOWDEN GRAPHIC ARTS SUPPLY CO.-Baltimore
LARAMI CORP.-Toys & Novelties
DIXIEPLATE, INC.-Atlanta, Jacksonville, Orlando, Miami, Nashville,
New Orleans, Jackson, Birmingham
B & T GRINDING & SUPPLY CO.-Dallas, Fort Worth, Waco
Del Monte Corporation, One Market Plaza, Box 3575, San Francisco, CA 94119
Richard G. Landis
President
August 20, 1976
The Honorable Gerald R. Ford
The White House
Washington, D.C. 20500
Dear President Ford:
Pending anti-trust legislation containing provisions which will
enable private plaintiff lawyers to bring parens patriae suits poses
a serious threat to U.S. business. I respectfully urge you to veto
any legislation which contains the parens patriae proposal.
Such legislation, if enacted, would unleash massive litigation
attacks on business enterprises. Management of business firms --
both large and small -- would have their major attention diverted from
expanding business to defending against harassment. Access to capital,
currently a major problem for growth-minded business, would be made
more difficult when financial ratings become impaired by a prolifera-
tion of contingent liabilities arising from parens patriae suits.
Small size enterprises -- especially if they are made co-defendants
in industry-wide suits, brought by 50 state attorneys and/or a multitude
of private plaintiff attorneys filing class actions on a contingency fee
basis --- will have their existence imperiled trying to finance costly
legal defenses.
I am deeply concerned, and thus my urging that any legislation with
a parens patriae provision be vetoed.
Sincerely,
Dlandis R. G. Landis
RGL:mls
cc: Hon. Philip W. Buchen, Counsel to the President
Hon. John 0. Marsh, Jr., Counsellor to the President
Hon. John J. Rhodes, Minority Leader, U.S. House of Rep.
Hon. Hugh Scott, Minority Leader, U.S. Senate
SERALD FORD LIBRAS
A. ZEREGA'S SONS, INC.
20-01 BROADWAY
FAIR LAWN, N.J. 07410
August 20, 1976
The President
The White House
Washington, D. C. 20500
Dear Mr. President:
We are very much concerned with the implications of parens
patriae legislation which we understand is to come before
you for your consideration. We would like to go on record
as being strongly opposed to legislation of this type as it
may appear in any bill that may reach you. It is our feeling
that if legislation of this type is not vetoed by you, we will
have a repetition of the abuses noted in the past in connection
with automobile liability claims and malpractice suits directed
at the medical profession. After their success in mining these
two areas for lucrative fees, private attorneys would surely
recognize another golden opportunity for personal enrichment.
We believe that many Copporations would tend to "settle", giving
into pressure far in advance of a legal decision. While in a
single instance this could be a wise business decision, the long
range result, we feel, would be to only encourage the proliferation
of suits of this nature.
As always, it is the consumer who ultamately foots the bill and
we fear that the impact on the continuing inflationary spiral
would be significant.
We ask that you veto any legislation that may come for your
consideration carrying with it a parens patriae provision.
Yours very truly,
PAVermylen:sb
BERALD q. FORD LIBRAR
August 20, 1976
The Honorable Gerald R. Ford
President of the United States
The White House
Washington, D.C. 20500
Dear Mr. President:
The "parens patriae" legislation recently passed by the Senate, and which I
expect will reach your desk, contains provisions which have such dangerous
implications as to justify your veto.
We concur in Attorney General Levi's warning of June 16 against this legisla-
tion.
The provision for employment of private attorneys to pursue suits against
business on the grounds of alleged antitrust violation adds a new and parti-
cularly objectionable facet to this legislation. The antitrust area should
not become a happy hunting ground for fee-seeking attorneys.
Sincerely,
Henry Schacht
Vice President and Corporate Secretary
HS:ct
cc: The Honorable Philip W. Buchen
The Honorable John 0. Marsh, Jr.
The Honorable John J. Rhodes
The Honorable Hugh Scott
FORD i LIBRAR. SERALD
CALIFORNIA CANNERS and GROWERS
ccg
If
it wasn't in cane
Delight Diet
OF
SAN
AUG20'76
3100 Ferry Building, San Francisco, California 94106
111 13
fou'd steear 11 IT'S resh fruh
600586
VIA AIR MAIL
The Honorable Philip W. Buchen
Counsel to the President
The White House
Washington, D.C. 20500
mstar
CORPORATION
1251 AVENUE OF THE AMERICAS, NEW YORK, N.Y. 10020
(212) 489-9000
ROBERT T. QUITTMEYER
President
August 20, 1976
The President
The White House
Washington, D.C. 20500
Dear Mr. President:
The Senate and House have recently passed bills
giving the fifty State Attorneys General the right to
file parens patriae suits for alleged price fixing over-
charges and permitting the state to retain private plain-
tiffs' lawyers to bring such suits on behalf of the
Attorney General. I respectfully urge you to veto any
bill which comes to you from Congress with a parens
patriae provision.
I fully support the objectives of our federal
antitrust laws, and I subscribe to their vigorous enforce-
ment with effective and suitable sanctions. Present
federal law provides for severe and multiple sanctions
for violations of the antitrust laws, including fines,
prison terms and injunctions in actions brought by the
government, and treble damages in private actions which
can now be massive when brought on behalf of many mem-
bers of a class.
The potential mischief of the parens patriae
authority is great and arises from the real likelihood
that the right to bring the lawsuits will be abused by
the lawyers who presently specialize in filing multi-
million dollar class actions for the purpose of gaining
in terrorem settlements from defendant companies. There
are many examples of abuses under the existing law,
the lawyer bringing the suit is typically the largest
FORD & LIBRARY DERALD
-6-
single beneficiary of any settlement, receiving enormous
fees, while each individual "client" receives very little.
If such a parens patriae bill becomes law, the
filing of suits alleging massive damages against business
firms must necessarily result in those firms raising
their prices to cover the enormous expense of defending
the suits or disposing of them by settlement. Your veto
of any parens patriae bill is necessary to avoid the
abuses that will surely arise from such unfair legisla-
tion.
Respectfully yours,
R.T.Juity
CC: The Honorable Philip W. Buchen
Counsel to the President
The White House
Washington, D.C. 20500
The Honorable John O. Marsh, Jr.
Counsellor to the President
The White House
Washington, D.C. 20500
The Honorable John J. Rhodes
Minority Leader
U. S. House of Representatives
Washington, D.C. 20515
The Nonorable Hugh Scott
Minority Leader
U.S. Senate
Washington, D.C. 20510
LIBRARY GERALD P. FORD
August 23
THE WHITE HOUSE
WASHINGTON
TO:
ED SCHMULTS
FROM: JOHN O. MARSH,
For Direct Reply
For Draft Response June
XX
For Your Information
Please Advise
FORD LIBRARY & SERRAL
THE WHITE HOUSE
WASHINGTON
August 23, 1976
Dear Mr. Quittmeyer:
Just a short note to thank you for sending
me a copy of your recent letter to the
President concerning the antitrust legisla-
tion.
I have taken the liberty of sharing this
letter with those here at the White House
working on this issue.
Sincerely,
Julio Marsh, the Jr. President
Mr. Robert T. Quittmeyer
President
Amstar Corporation
1251 Avenue of the Americas
FORD i LIBRARY GERALD
New York, New York 10020
Amstar
CORPORATION
1251 AVENUE OF THE AMERICAS, NEW YORK, N.Y. 10020 . (212) 489-9000
ROBERT T. QUITTMEYER
President
August 20, 1976
The President
The White House
Washington, D.C. 20500
Dear Mr. President:
The Senate and House have recently passed bills
giving the fifty State Attorneys General the right to
file parens patrise suits for alleged price fixing over-
charges and permitting the state to retain private plain-
tiffs' lawyers to bring such suits on behalf of the
Attorney General. I respectfully urge you to veto any
bill which comes to you from Congress with a parens
patriae provision.
I fully support the objectives of our federal
antitrust laws, and I subscribe to their vigorous enforce-
ment with effective and suitable sanctions. Present
federal law provides for severe and multiple sanctions
for violations of the antitrust laws, including fines,
prison terms and injunctions in actions brought by the
government, and treble damages in private actions which
can now be massive when brought on behalf of many mem-
bers of a class.
The potential mischief of the parens patriae
authority is great and arises from the real likelihood
that the right to bring the lawsuits will be abused by
the lawyers who presently specialize in filing multi-
million dollar class actions for the purpose of gaining
in terrorem settlements from defendant companies. There
are many examples of abuses under the existing law, where
the lawyer bringing the suit is typically the largest
LIBRARY GERALD ? ORD
-2-
single beneficiary of any settlement, receiving enormous
fees, while each individual "client" receives very little.
If such a parens patriae bill becomes law, the
filing of suits alleging massive damages against business
firms must necessarily result in those firms raising
their prices to cover the enormous expense of defending
the suits or disposing of them by settlement. Your veto
of any parens patriae bill is necessary to avoid the
abuses that will surely arise from such unfair legisla-
tion.
Respectfully yours,
R.T. Juty
CC: The Honorable Philip W. Buchen
Counsel to the President
The White House
Washington, D.C. 20500
The Honorable John o. Marsh, Jr.
Counsellor to the President
The White House
Washington, D.C. 20500
The Monorable John J. Rhodes
Minority Leader
U. s. House of Representatives
Washington, D.C. 20515
The Nonorable Hugh Scott
Minority Leader
U. S. Senate
FORD i LIBRARY GERAL
Washington, D.C. 20510
Amstar
CORPORATION
Domino®
NEW
YORK
U.S POSTAGE
1251 AVENUE OF THE AMERICAS, NEW YORK, N.Y. 10020
Amstar A PRODUCT $
AUG20'76
≡ 13
CORPORATION
N.Y
(
The Honorable John O. Marsh, Jr.
Counsellor to the President
The White House
Washington, D.C. 20500
A.E. STALEY MANUFACTURING COMPANY 2200 ELDORADO STREET DECATUR, ILLINOIS 62525 TELEPHONE 217/423-4411
August 23, 1976
The President
The White House
Washington, D. C. 20500
Mr. President:
We strongly urge the veto of any bill coming before the
President which contains a parens patriae section authorizing
the parens patriae treble damage suits.
We definitely believe this legislation will work against the
best interest of the consumer public. This authority in the
hand of every State Attorney General and private lawyer of the
plaintiffs will promote millions of antitrust suits.
In the long run, the public does not benefit since cost of
settlement under this legislation must be figured into the
cost of doing business, which is eventually passed onto the
consumer. Certainly the experience in the state of California
for the increased cost of insurance due to the growth of mal-
practice suits has not provided either better or less costly
medical care.
This legislation deprives the business community of the right
to cross-examine those who claim to have been injured, thus
providing the basis for "blackmail" suits.
Attorney General Levi has warned this bill will bring suits
into an already clogged and overloaded court system all over
the country where, in fact, it will be extremely difficult to
determine there is any damage.
The largest single group to benefit from this bill will be the
private lawyer--not the public.
Respectfully yours,
L. L. Reashaw
L. L. Redshaw, Director
Government Relations
LLR: 1m
cc: The Honorable Philip W. Buchen
The Honorable John O. Marsh, Jr.
FORD & LIBRARI CERRAL
The Honorable John J. Rhodes
The Honorable Hugh Scott
copy for: The Honorable Philip W. Buchen
LEVER BROTHERS_COMPANY
(INCORPORATED)
390 PARK AVENUE, NEW YORK, NEW YORK 10022
THOMAS S. CARROLL
PRESIDENT
August 23, 1976
President Gerald R. Ford
The White House
Washington, D. C. 20500
RE: Parens Patriae Antitrust Legislation
Dear Mr. President:
This is to urge your veto of any antitrust
legislation enacted by the Congress which
would authorize state attorney generals to
institute treble damage lawsuits against a
company on behalf of state residents for
alleged antitrust violations.
Although in principle such parens patriae
legislation may sound laudable and is the
product of well-intentioned legislators,
I am deeply fearful of its practical
application, so much so that I am reminded
of Justice Brandeis' oft-quoted remark:
"The greatest dangers
lurk in
insidious encroachment by men of
zeal, well-meaning but without
understanding.
"
The proposed parens patriae legislation
would authorize the utilization of state
funds to hire lawyers in the private sector
to "vindicate" the interests of the state's
FORD is LIBRARY SERALD
- 2 -
citizens. Given the potential windfall
to all parties involved in bringing these
actions, such a statute gives rise to the
very real possibility that enormous
"damage" claims will be filed on the
flimsiest of grounds, the potential
magnitude of which, however, could easily
result in the extraction of "blackmail"
settlements from a company that cannot
afford to run a risk of placing its fate
in the hands of a fickle jury.
Moreover, at a time when the government
should be deemphasizing its role in the
affairs of corporations and private citizens,
I question whether federal legislation in
this area is the proper approach. Each
individual state has the ability after all
to amend its own antitrust laws to authorize
parens patriae suits in its own courts.
If a state legislature, acting for its
own citizens, is not convinced such
legislation is a sound concept, why should
the federal government by-pass the state
legislative process and provide state
attorney generals with access to the
federal courts?
In March of this year, you announced your
opposition to this form of legislation.
Mr. President, your judgment at that time
was, and still is, correct. I urge you
to have the courage of your convictions
on this issue and to veto any parens patriae
legislation.
TSC:RL
FORD & LIBRARI SERALD
August 23
THE WHITE HOUSE
WASHINGTON
TO:
ED SCHMULTS
FROM:
For JOHN Direct O. Jhon
For Draft Response
XX
For Your Information
Please Advise
GERALD R. FORD
August 23, 1976
Dear Mr. MacNaughton:
Just. a short note to thank you for sending
me a copy of your recent letter to the
President concerning the entitrust legisla-
tion.
I have taken the liberty of sharing this
letter with those here at the White House
working on this issue.
Sincerely,
John 0. Marsh, Jr.
Counsellor to the President
Mr. Malcola MacHaughton
Castle and Cooke, Inc.
Drawer 2990
Honolulu, Hawaii 96802
FORD & LIBRARY GERALD
cc: Ed Schmults
d1
CASTLE & COOKE, INC.
AUG 23 1976
August 18, 1976
C
The President
The White House
Washington, D.C. 20500
Dear President Ford:
I urge you to do everything in your power to keep the Parens
Patriae legislation as it may be enacted from becoming effec-
tive. Giving the 50 State Attorneys General and the private
legal counsel they may engage the right to proceed with purely
curious witch hunts would be a disaster. Wrongs obviously must
P
be corrected, but to give a legal counsel a hunting license
based on contingency fees and no financial liability to the
hunter would soon become costly indeed.
I thank you for considering these views.
Y
Sincerely,
ORIGINAL SIGNED BY
MALCOLM MacNAUGHTON
cc: The Honorable Philip W. Buchen
The Honorable John 0. Marsh, Jr.
The Honorable John J. Rhodes
The Honorable Hugh Scott
bcc: Mr. George W. Koch (GMA)
FORD i LIBRARY GERALD
MONOLULU
CASTLE & COOKE, INC.
AUG19'76
DRAWER 2990, HONOLULU, HAWAII 96802
111 13
HAWAII
************
METER
337549
The Honorable John 0. Marsh, Jr.
Counsellor to the President
The White House
Washington, D.C. 20500
PUREX
Keeps Growing Bigger to Serve You Better
PUREX CORPORATION
CARSON
CALIFORNIA 90749
August 23, 1976
The President
The White House
Washington, D.C. 20500
My dear Mr. President:
I am greatly dismayed by the recent legislation passed by Congress
granting parens patriae authority. My concern is the negative im-
pact of this legislation on the free enterprise system. Operating
costs will undoubtedly rise, as well as consumer prices, as unscru-
pulous lawyers take unjustified advantage of this legislation.
I believe that our political freedoms are closely allied with our
economic system. Any legislation that seriously erodes the basis
of our free enterprise system ultimately erodes our personal liber-
ties.
Your veto of this parens patriae legislation is the last hope for
maintenance of moderation in this important matter.
Very respectfully yours,
PUREX CORPORATION
Lynn Ranney
FORD & LIBRARY GERALD
Lynn R. Ranney
Vice President and Assistant General Manager,
GPG - Manufacturing and Private Label
LRR:cab
Copy to:
The Honorable
Philip W. Buchen
Counsel to the President
The White House
Washington, D.C. 20500
The Honorable John O. March, Jr.
Counsellor to the President
The White House
Washington, D.C. 20500
The Honorable
John J. Rhodes
Minority Leader
U.S. House of Representatives
Washington, D.C. 20515
The Honorable
Hugh Scott
Minority Leader
U.S. Senate
Washington, D.C. 20510
FORD LIBRARY & OF
LiggeTT
Liggett Group Inc.
4100 Roxboro Road, Durham, N.C. 27702
Dan Provost
Director of Corporate Communications
August 23, 1976
The President
The White House
Washington, D. C. 20500
Mr. President:
Your past record in vetoing inflationary, unproductive,
and/or inequitable legislative bills has been outstanding.
I urge you strongly to veto any bills containing parens
patriae features. Such legislation would be very counter-
productive and destructive -- another big rip-off for
special interest groups not entitled to special privileges.
Parens patriae is best characterized as immoral since
it would result in large "blackmail" litigation settlements
which could be severely damaging to important companies, and
very unfair to their shareowners.
Thank you for your consideration.
Respectfully yours,
Daniel E. Provost
DP/lr
CC: The Honorable Philip Buchen
The Honorable John Marsh, Jr.
The Honorable John Rhodes
The Honorable Hugh Scott
FORD
GIVE
LIBRARY
WILLIAM K. HOSKINS
5020 SPRING GROVE AVE.
CINCINNATI, OHIO 45232
August 23, 1976
The President
The White House
Washington, D. C. 20500
Dear Mr. President:
The parens patriae bill appears to be winding its
way to your desk. I strongly urge you to stand
by your earlier promise of vetoing the bill.
On June 16 Attorney General Levi stated as follows:
"The possible amount of damages can be so
terrific that for a large company the
threat of that kind of a case is likely
to be inevitably met with a settlement.
"One of my concerns is that you might have
to save antitrust from its friends. Now
what I had in mind is that if we start, and
I hope we don't, a mechanism which is going
to bring into being those kinds of cases
all over the country with enormous damage
awards where it is exceedingly hard to know
whether there was in fact that damage, then
I would assume that the next step would be
to have some sort of a government agency
authenticate the reasonableness of the
prices that are charged.
"That is the kind of history which the anti-
trust laws have always verged on getting
into and in my book it is the particular
special virtue of the kind of antitrust
law that we have that we haven't gotten into
it. I don't want to push the antitrust laws
so far in that direction that the reaction
will be 'Well, just to protect everyone
wouldn't it be better if there was some kind
of a price-fixing governmental board?'"
FORD & LIBRARY SERVID
Page 2
The President
August 23, 1976
I believe that your experience with history in
Michigan would indicate that the Attorney General's
office of the State has historically been the most
political of offices. The delivery of an extremely
strong blackmail club to the most political office
in a state makes no sense whatsoever.
Very truly yours,
Hashi
William K. Hoskins
WKH:bjl
The Honorable
Philip W. Buchen
Counsel to the President
The White House
Washington, D. C. 20500
FORD & LIBRARY RALD
August 23
THE WHITE HOUSE
WASHINGTON
B
TO:
ED
SCHMULTS
FROM: For JOHN Direct O. Jash
For Draft Response
XX
For Your Information
Please Advise
GERALD R. 317 FORD
THE WHITE HOUSE
WASHINGTON
August 23, 1976
Dear Mr. Schultz:
Just a short note to thank you for sending
me a copy of your recent letter to the
President concerning the antitrust legisla-
tion.
I have taken the liberty of sharing this
letter with those here at the White House
working on this issue.
Sincerely,
Counsellor John 0. Marsh, to the Jr. President
Mr. E. J. Schultz
Hills Bros. Coffee, Inc.
Post Office Box 3149
San Francisco, California 94119
FORD & LIBRARY
HILLS
BROS
COFFEE. INC.
P.O. BOX 3149, SAN FRANCISCO, CALIFORNIA 94119
AREA CODE 415 546-4600
WRITERS DIRECT DIAL NUMBER 415-546-4660
August 19, 1976
The President
The White House
Washington, D. C. 20500
Mr. President:
As a concerned member of the American Food Industry we urgently solicit your
opposition to and veto of any parens patriae legislation sent to you by Congress.
The far-reaching effects of parens patriae provisions could result in economic
chaos for every manufacturing company in the United States. It would be an
open invitation for opportunists - both lay and legal - to force business firms
into sizeable "blackmail" settlements. The consumer would ultimately foot the
bill in the form of higher prices while lawyers inciting such litigation would
reap large legal fees and further clog the already congested court system.
It behooves you, in the interest of your constituents, to resist all unnecessary
and detrimental legislation by precedent use of your veto priviledge.
Sincerely,
HILLS BROS. COFFEE, INC.
E. Schultz
EJS/ref
ALD FORD LIBRAST
cc: Philip W. Buchen
John 0. Marsh, Jr.
John J. Rhodes
Hugh Scott
FRA
SAN
US.POST
SA
AUG19 76
1
13
P.O. BOX 3149, SAN FRANCISCO, CALIFORNIA 94119
CALI
PA
METOR
HILLS
BROS
COFFEE. INC.
The Honorable
John 0. Marsh, Jr.
Counsellor to the President
The White House
Washington, D. C. 20500
August 23
THE WHITE HOUSE
WASHINGTON
TO:
ED SCHMULTS
FROM:
JOHN O. MARS
For Direct
Rewponse Jun
For Draft
XX
For Your Information
Please Advise
FORD LIBRAR
THE WHITE HOUSE
WASHINGTON
August 24, 1976
Dear Mr. Millard:
Just a short note to thank you for sending
me a copy of your recent letter to the
President concerning the antitrust legisla-
tion.
I have taken the liberty of sharing this
letter with those here at the White House
working on this issue.
Sincerely,
John D. Counsellor D. Marsh, to the March Jr. President
Mr. Charles E. F. Millard
President
The Coca-Cola Bottling Company
Continental Plaza North
411 Hackensack Avenue
FORD i LIBR
Hackensack, New Jersey 07601
THE COCA-COLA BOTTLING COMPANY
OF NEW YORK, INC.
CONTINENTAL PLAZA NORTH
CHARLES E.F. MILLARD
411 HACKENSACK AVENUE
PRESIDENT
HACKENSACK, N.J. 07601
(201) 487-8650
August 18, 1976
The President
The White House
Washington, D.C. 20500
Dear Mr. President:
The purpose of this letter is to respectfully request
that you veto any legislation which comes to your
desk with a parens patriae section in it.
Essentially, our position is similar to that of Attorney
General Levi as expressed by him on June 16th.
We view this as a totally inappropriate section of any
proposed anti-trust or other legislation, and one which
is contrary to your expressed position regarding over-
regulation.
Thank you for your consideration of this request.
Very truly yours,
Harlisk / Millerd
CEFM/ff
cc:
The Honorable Philip W. Buchen
FORD
The Honorable John O. Marsh, Jr.
off
The Honorable John J. Rhodes
The Honorable Hugh Scott
Mr. William Baroody, Jr.
THE COCA-COLA BOTTLING COMPANY
OF NEW YORK, INC.
HACKENSACK
CONTINESTAL PLAZA NORTH . 411 HACKENSACK AVENUE
LIFE
AUG19'76
LIBERTY
HACKENSACK, N.J.07601
PURSUIT OF
13
HAPPINESS
NJ
1.6359:4L
The Honorable
John O. Marsh, Jr.
Counsellor to the President
The White House
Washington, D.C. 20500