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
563878095
label
Sam Skinner: 1989 Alpha File N-R [1]
core
doc
dtoType
document
citationUrl
pageCount
1
Source metadata
id
563878095
contentType
document
title
Sam Skinner: 1989 Alpha File N-R [1]
citationUrl
identifierLocal
06121-011
collections
Records of the White House Office of the Chief of Staff to the President (George H. W. Bush Administration)
Samuel K. Skinner Files
imageCount
1
hasImages
yes
source
import
hasTranscription
no
Source extras
naId
563878095
coverageEndDate
logicalDate
1989-12-31
year
1989
coverageStartDate
logicalDate
1989-01-01
year
1989
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
mediaId
804ece55ec2c3915
ocrText
Originally Processed With FOIA(s):
FOIA Number:
2025-0466-S
2025-0466-S
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the George Bush Presidential
Library Staff.
Record Group/Collection: George H.W. Bush Presidential Records
Collection/Office of Origin: Chief of Staff, White House Office of
Series:
Skinner, Sam, Files
Subseries:
OA/ID Number:
06121
Folder ID Number:
06121-011
Folder Title:
Sam Skinner: 1989 Alpha File N-R [1]
Stack:
Row:
Section:
Shelf:
Position:
G
15
23
4
THE SECRETARY OF TRANSPORTATION
WASHINGTON, D.C. 20590
September 6, 1989
Dear President Posvar:
Newton Minow has provided me with a copy of
the recommendations from the Symposium held
last January at the University of Pittsburgh.
I had reviewed them earlier but was glad to
see them again and refresh myself with them.
You and the University are to be applauded for
sponsoring this effort, and I look forward to
working with you in the future.
Sincerely,
Samuel K. Skinner
Dr. Wesley W. Posvar
President
University of Pittsburgh
Pittsburgh, PA 15260
SIDLEY & AUSTIN
LAW OFFICES
SUITE 4800
ONE FIRST NATIONAL PLAZA
CHICAGO, ILLINOIS 60603
853-7555
From NEWTON N. MINOW
To: Mary Margaret Jacobs - 46
Attached is self-explanatory. Would you
please see to it that Sam gets this, etc.
All best,
hunt
Newt Minow
8-21-89
k
Attachment
IVRIVI
УНОЙ
88 vne SB VW10:02
U.S. DEPT OF
TRANSPORTATION
89 AUG 28 AM 10: 09
OFFICE OF SECRETARY
OF TRANSPORTATION
EXECUTIVE SECRETARIAT
August 22, 1989
President Wesley W. Posvar
University of Pittsburgh
Pittsburgh, Pennsylvania 15260
Dear Wes:
Thanks very much for sending me the Civil Aviation report. I
am going to give it to Sam Skinner with a request that he read it
personally. I know he will find it useful and helpful. You did a
first-class job, and you made a major contribution.
All best,
Newton N. Minow
NNM:kjs
Blind Copy to: Ms. Mary Margaret Jacobs
NNM
"P"
UNIVERSITY OF
University of Pittsburgh
PITISBURGH
PRESIDENT OF THE UNIVERSITY
August 17, 1989
Mr. Newton N. Minow
Partner
Sidley & Austin
One First National Plaza, Suite 4800
Chicago, Illinois 60603
Dear Newt:
I just spoke with Gus Shubert at RAND, who told me about seeing you
yesterday, and that you expressed interest in our recent civil aviation
initiative. Gus made specific reference to your access to the Secretary of
Transportation.
I am enclosing the report of a special symposium which I organized
and chaired last January on the subject of civil aviation, and in which Gus
Shubert himself played an important part. This was a remarkable gathering
of some fifty top leaders from the aviation industry, academe, government,
"think tanks," including four FAA Administrators.
Our principal theme, which is explained in the introduction, is
that civil aviation is a vast economic system, not yet perceived and
analyzed as a whole system, of enormous importance to the economy and
well-being of the United States. We call for strong initiatives in
developing sources of expert advice, including an external and independent
research unit dedicated solely to transportation and civil aviation
questions. The early prototype is Air Force Project RAND.
With the departure of Allan McArtor and the advent of the new
Administrative team, the thrust of this report has not yet been
appreciated. Informal overtures for several of us to brief the new
Secretary have not been fruitful. There has been created a new Advisory
Committee to the FAA on Research, Engineering, and Development, chaired by
Bob Everett, the retired head of MITRE, and I am a member. Worthy as it
is, this group is explicitly narrow in focus and aimed at mid-range
tactical R&D initiatives; as I have pointed out to the group, it does not
begin to address the goals of our January report.
When you have had a chance to look over our report, I hope you will
call me and indicate any way you might suggest to bring this effort to the
attention of Secretary Skinner.
With best wishes,
Sincerely,
Wes
Wesley W. Posvar
President
Enclosure
PITTSBURGH, PA 15260 (412) 624-4200
THE FUTURE OF
RECOMMENDATIONS FROM A
THE CIVIL
SYMPOSIUM OF NATIONAL
AVIATION LEADERS CONVENED
AVIATION SYSTEM
JANUARY 11-13, 1989 AT THE
UNIVERSITY OF PITTSBURGH
Pitt
1787
FOREWORD
c
ivil aviation has developed
essentially in the last half century,
and has altered the nature of world
travel and commerce in that short
period more than all other factors in
the prior millenium. It emerged in our
time through leaps in technology
driven by creative leadership that was
in large part American. It remains a
vitally important economic stake for
this nation.
Yet the civil aviation scene now is
troubling: air traffic is increasingly
congested, and there are incipient
anxieties about prospective air space
gridlock and safety; technologies of
avionics, airframes, and traffic control
seem to be moving ahead without
integrated planning of total projected
needs; airport capacity and connecting
ground networks have surpassed
saturation in some areas; commercial
airline markets are a shifting flux of
routes and prices; there is a growing
shortage of skilled crews and
technicians; labor relations are in
crisis.
These problems are manageable,
provided they are addressed vigorously
and coherently. Civil aviation is truly
a complete economic system of
interrelated elements and external
connections that is insufficiently
perceived and examined as a
system - one that is in need of and
amenable to a broad systems-
analytical approach, such as proven
successful in other large economic
sectors. Thus, much of the energy and
resources expended in developing the
capital assets of civil aviation are
focused on sub-optimal elements of
air traffic, aeronautical R&D, training
and education, airport design,
regulatory controls, and market
forces - but do not include a
system-wide perspective on reciprocal
relations among these elements.
Operationally, the civil aviation
system is a highly interdependent set
of dynamic functional elements that
must continually adapt to a random
variation of external factors, especially
weather and shifting demand patterns.
To sustain reasonable service at
reasonable cost, this extraordinarily
complex system must be robust
enough to accommodate change on
time scales far shorter than those
required to assemble the capital assets
that constitute the system.
All these elements of civil aviation
are under the limited oversight of the
Federal Aviation Administration
(FAA), which itself is a relatively
2
young organization staffed with
people who come from various
professional specialties and require
new skills of many kinds.
A case can be made that the FAA
and its leaders could benefit from
direct access to expert advice and
analysis. Further, airlines, aircraft and
component manufacturers, air crews,
managers, local political authorities
who build airports, and national
officials who make relevant rules and
laws could all benefit by better
information and perspective about the
scope and future of civil aviation. The
result would be greater safety and
efficiency, enhanced economic impact,
and a better-functioning competitive
market - without more regulatory
bureaucracy.
Wesley W. Posvar
Symposium Chairman
President
University of Pittsburgh
3
PARTICIPANTS
Elizabeth E. Bailey
Roger Fleming
Lawrence J. Korb
Dean
Senior Vice President
Director
Graduate School of Industrial
Technology Development and Planning
Center for Public Policy Education
Administration
Air Transport Association
The Brookings Institution
Carnegie Mellon University
James C. Fletcher
Donald S. Lopez
*Wayne Barlow
Director
Deputy Director
Executive Director for System
National Aeronautics and Space
National Air and Space Museum
Operations
Administration
Federal Aviation Administration
Virginia Lussier
Stephen George
Assistant Provost
*Joan Bauerlein
Director
Rutgers University
Assistant Administrator for
Airport Area Development
Government and Industry Affairs
Greater Pittsburgh International
David W. Lyon
Federal Aviation Administration
Vice President, Domestic Research
Airport
The RAND Corporation
Mark Bisnow
James C. Greene
Assistant to the President
Science Consultant
Michael Maccoby
Director
USAir
US House of Representatives
Subcommittee on Transportation,
Project on Technology, Work and
Milton F. Borkowski
Character
Aviation and Materials
Vice President and General Manager
*T. Allan McArtor
Westinghouse Electric Corporation
Jerry Grey
Administrator
Command & Control Division
Director, Science and Technology Policy
Federal Aviation Administration
American Institute of Aeronautics and
William Breckner
Astronautics
*Homer (Mac) C. McClure
NEF, Inc.
Director
Arthur T. Hadley
Duane H. Cassidy
Author
Mike Monroney Aeronautical Center
Commander-in-Chief
John McLucas
US Transportation Command and
Najeeb Halaby
Chairman
Commander-in-Chief
Chairman and Chief Executive Officer
Military Airlift Command
DartRAIL
QuesTech
Former Administrator, Federal Aviation
Former Administrator, Federal Aviation
*Joe Del Balzo
Administration
Administration
Executive Director for System
Former Secretary of the Air Force
Development
J. Lynn Helms
Federal Aviation Administration
Former Administrator
*Tex Melugin
Federal Aviation Administration
Executive Director for Regulatory
William J. Evans
Standards and Compliance
Vice President - Deputy Head
*Daniel P. Kaplan
Federal Aviation Administration
Defense and Space Systems Group
Principal Analyst
United Technologies
Congressional Budget Office
John D. Odegard
Director
John J. Fearnsides
Daniel Kasper
Center for Aerospace Science
Vice President
Consultant
University of North Dakota
The MITRE Corporation
Harbridge House
James Pappas
John Koehler
Vice Provost
Vice President
University of Oklahoma
Space and Communications
Hughes Aircraft Company
4
Wesley W. Posvar
Robert Warner
President
Director
University of Pittsburgh
National Association of State Aviation
Officials
J. Donald Reilly
Executive Director/Secretary General
W. P. West, Jr.
Airports Operators Council
Vice President for Government and
International
Public Affairs
National Business Aircraft Association
William Ris
Wexler, Reynolds, Harrison and Schule
*Robert Whittington
Gustave H. Shubert
Executive Director for Policy, Plans,
and Resource Management
Senior Vice President
Federal Aviation Administration
The RAND Corporation
Richard Witkin
Robert W. Simpson
Transportation Editor
Director
The New York Times
Flight Transportation Laboratory
Massachusetts Institute of Technology
Wayne A. Yeoman
Former Senior Vice President
Fred S. Singer
Eastern Airlines
Chief Scientist
Department of Transportation
EDITOR
William Y. Smith
John H. Funari
President
Special Assistant to the President
Institute for Defense Analysis
University of Pittsburgh
Former Deputy Commander-in-Chief,
European Command
STAFF
Edward Stimpson
*Abram Engelman
President
Consultant to the Administrator
General Aviation Manufacturers
Federal Aviation Administration
Association
Kevin P. Kearns
Kenneth L. Tallman
Assistant to the President
President
University of Pittsburgh
Embry-Riddle Aeronautical University
*Judy G. Nauman
Former Superintendent, US Air Force
Assistant to the Administrator
Academy
Federal Aviation Administration
George K. Tanham
William J. Wallisch
Vice President Emeritus
Consultant to the Administrator
The RAND Corporation
Federal Aviation Administration
David F. Traynham
Professional Staff Member
US House of Representatives
Committee on Public Works and
Transportation
*Participated in discussions but, because
of organizational affiliations, cannot
endorse recommendations.
5
6
WE
®
THE FUTURE OF THE
All of us are concerned with the fu-
CIVIL AVIATION SYSTEM
ture of this enormously important eco-
nomic resource; civil aviation in the
United States is a vital and growing in-
dustry that is still the developmental
prototype and the principal hub for
aviation commerce worldwide. We are
A
special national Symposium on
deeply aware of the challenges to civil
Civil Aviation was convened in
aviation in terms of personnel, air traf-
Pittsburgh, Pennsylvania, January 11-
fic control, technology, connecting
13, 1989, comprised of highly inter-
transportation networks, market mech-
ested and considerably experienced
anisms, and safety, and we perceive op-
persons representing key sectors of na-
portunities for improvement.
tional associations and airlines, gov-
There follow our observations and
ernment agencies, the Congress,
recommendations for action. These
aerospace industry, and research and
represent our consensus as participants
educational institutions.
in the symposium; this means general
agreement among us, but not necessar-
ily conformity by everyone on every
point.
The recommendations are directed at
policy, operations and professional
management of the civil aviation sys-
tem and conclude with proposals for
establishing two sources of expert ad-
vice: an Advisory Council reporting to
the Administrator of the FAA under
the Secretary of Transportation, and an
independent research organization
dedicated to analyzing transportation
problems.
7
The civil aviation system of Amer-
ica, while in clear need of remedial
action, is a functioning system of great
stamina and flexibility, serving as an
exemplar for the rest of the world.
However, the system could be improved
by a number of measures taken and
policies adopted.
1. There is urgent need for a national
aviation policy covering all aspects of
civil aviation. In the perspective of the
national aviation policy, the Adminis-
trator of the FAA, with the guidance of
the Secretary of Transportation, should
analyze in depth the civil aviation sys-
tem in regard to airport congestion,
airline competition, environmental
concerns, and the trade-off between
commercial and operational and the
larger public interests, in order to fore-
see emerging problems and develop the
necessary responses.
"There is urgent need for a national
8
aviation policy."
ECONOMIC ANALYSIS
try should continue efforts to find new
AND PLANNING
solutions to the contradictions between
environmental and esthetic concerns,
and efficiency and safety.
4. The entrance of other airlines, new
and existing, into competition with the
present large carriers is restricted and
The conferees identified different
difficult. Barriers to competition are
kinds of needs for economic planning
too high. For example, some agree-
and analysis for civil aviation. The list
ments between airport authorities and
is not complete but suggestive of the
airlines restrict entry of smaller com-
broad range of problems.
petitors. The Department of Justice is
responsible for anti-trust policy and en-
2. There should be an examination of
forcement. It should take the lead by
the requirements for further airport
maintaining a watching brief on the sit-
construction and the policy issues in-
uation, by analyzing the cases, and tak-
volved. This does not presume that
ing legal actions, if necessary, to ensure
there are inherent needs for airport
competition and entry to the market.
construction; rather, study would de-
We support the concept of deregula-
termine if there are objective require-
tion, but recognize that to be successful
ments and if so, how to meet them.
it requires competition and enforce-
Related to airport requirements are
ment of measures and legal actions to
the possibilities for joint use of military
sustain competition. Whatever prob-
and civilian air facilities. The Depart-
lems have arisen with deregulation, it is
ment of Transportation and the De-
an improvement.
partment of Defense should pursue and
implement joint use where feasible and
beneficial. However, there must be a
distinction between the use of air space
and the use of facilities, because of air
operational needs.
3. Environmental factors, especially
noise, are strong public concerns. The
interests of the traveling public and the
interests of the local population often
are in conflict. Government and indus-
9
5. We must find means to reduce the
8. There is a lack of clarity in inter-
gap between capacity and demand
governmental relations as they concern
when and where it occurs. The neglect
airports, ground transportation, and
of airports and the failure to automate
oversight of airline service. For exam-
air traffic sufficiently has produced a
ple, the federal government has no di-
crisis at some major airports at peak
rect responsibility for the construction
periods, and threatens to do so at other
of new airports, even though they are
airports. The trend for the future indi-
linchpins in the national network of in-
cates that matters will only worsen if
terstate commerce. Therefore, assess-
left unattended.
ments are needed by independent
6. In dealing with overcrowding of
experts, special conferences, or recog-
terminals, gates, runways and other fa-
nized organizations specializing in re-
cilities, "pricing" (whether through gate
search on intergovernmental relations.
fees, peak pricing or other such de-
Unwarranted federal interference in
vices) should be examined as a means
state and local areas of responsibility,
of relieving the overcrowding. If "pric-
and in private enterprise, should be
ing" is used to relieve overcrowding and
spread the loads, the funds collected
should be dedicated to measures and
construction that will relieve the over-
crowding responsible for these addi-
tional charges.
7. The civil aviation system must
provide for expanding facilities for
both commercial and general aviation.
Airports and the system must be able to
accommodate fast, heavy airplanes and
small, slower aircraft. Ground trans-
portation and ground facilities for both
"reliever" airports and major hub air-
ports are critically important and must
be addressed by governments and
industry.
"We must find means to reduce the gap
10
between capacity and demand."
avoided. Balance is needed in the pat-
HUMAN RESOURCES
terns and kinds of relations among and
between the governmental units con-
cerned, as well as with the private sec-
tor. For example, architecture and
design of airports should be left to the
10. Stronger ties and links should be
local authorities directly concerned
developed between the FAA and the na-
with the design and construction, in
tion's universities that have strength in
terms of local needs and conditions,
education, training, research and pro-
but in the perspective of national
grams in professional areas with rele-
requirements. The FAA should take the
vance to civil aviation. New separate
lead in involving all players, private
educational institutions such as the
and governmental, in working together
military academies should not be cre-
on the diverse problems of civil avia-
ated. Training for pilots and control-
tion scattered among different govern-
lers, for example, can be done at
ment components.
institutions already existing for that
9. The capability for long-range
purpose. Therefore, there should be a
planning should be improved. The
partnership between the federal govern-
process of long-range, systemic plan-
ment and academia to interest and edu-
ning should begin in the FAA itself, but
cate college students in aviation studies
it will have to include other agencies,
using the ROTC concept with FAA
departments, and the private sector.
oversight, including the possibility of a
The Department of State, for example,
representative on campus, careful selec-
must be involved in matters of inter-
tion of students, full scholarships, and
national civil aviation. The FAA
commitment to serve the agency on
should take the lead and coordinate all
graduation.
planning.
The FAA is largely an operational
agency; therefore its own planning
function requires discrete funding and
independent standing in the agency.
There should be a planning unit at the
level of the Administrator. A program
of partnership should be started with
"think-tanks," universities, and inde-
pendent research firms.
11
11. Where aviation programs are in
12. Civil aviation involves closely re-
autonomous or separate units of uni-
lated professions that have managerial
versities or educational institutions, an
and technological aspects; the chal-
important goal ought to be setting of
lenge of human resource development
standards, and accreditation as a
and planning is the integration of
means to that end. Support is needed
these, bringing the specialized profes-
from accrediting organizations and as-
sions into common understanding and
sociations, such as the Council on Avi-
mutual appreciation.
ation Accreditation, with approval of
13. To recruit, retrain, and develop
the Council on Postsecondary Accredi-
the human resources needed by the
tation.
FAA:
a. Congress must accept that there is a
compelling need to distinguish the
FAA within the total civil service
system that is supervised by the Of-
fice of Personnel Management;
b. Compensation levels should be
made competitive at both entry and
mid-level management, and for FAA
pilots, controllers and other special-
ized groups;
c. Training and education in the FAA
should be continually realigned with
changing roles and required skills,
and foster ongoing managerial and
professional development.
"Civil aviation involves closely related
professions that have managerial and
12
technological aspects."
MANAGEMENT
16. The Airport and Airway Trust
Fund should be moved "off-budget"
and made immune from the provisions
of the Gramm-Rudman-Hollings Act.
Further:
14. There is a prime need to achieve a
balance between autonomy and collab-
a. It must be dedicated exclusively to
oration in the relationship of the Fed-
aviation uses;
eral Aviation Administration to the
Department of Transportation. The
b. It may be used directly on aviation
significance of the civil aviation system
projects or as leverage for bonding
calls for markedly elevating the stature
to encourage additional funding
of the FAA Administrator within the
from local and state governments
senior levels of the federal government,
and perhaps from private firms.
including access to the President as
needed, and more independent budget
authority, such as for grants to univer-
sities and contracts with research firms
and institutes. Nonetheless, civil avia-
tion is part of the whole transportation
network under the purview of the Sec-
retary of Transportation. This calls for
closer collaboration, with a clear over-
sight role for the Secretary of Transpor-
tation, especially on issues related to
system-wide analysis and planning.
15. The FAA Administrator should
have increased flexibility in the exercise
of his responsibility, akin to the Ad-
ministrator of NASA and other senior
administrators in the federal govern-
ment. The length of the term of the Ad-
"The significance of the civil aviation
ministrator should be reviewed in order
system calls for markedly elevating the
to attain the goal of continuity and
stature of the FAA Administrator
long-range planning.
under the purview of the Secretary of
Transportation."
13
17. Procurement practices and proce-
dures of the FAA must be improved
and streamlined. This would not re-
quire new legislation. Furthermore, au-
thority for procurement should be
officially delegated from the Secretary
of Transportation to the Administrator
of FAA, including the delegation of ac-
countability. The goals of the Packard
Commission should be applied where
relevant. These specific measures
should be taken:
a. A time limit should be put on the
competitive process;
b. Only one "best, final" offer should
be allowed;
c. Only one review body is needed;
there is wasteful duplication when
both DOT and FAA review several
times;
d. Performance criteria should be em-
ployed; input specifications are not
needed except as general or primary
guidelines;
e. More flexibility is needed in the use
of sole source procurement;
f. Monitoring of contractors should be
improved through the reassignment
"We recommend an Advisory Council
of personnel and hiring additional
and an external, independent research
14
personnel if needed.
unit."
EXPERT ADVICE AND
19. We recommend the creation of an
RESEARCH
external, independent research unit
dedicated solely to transportation and
civil aviation questions. The fabric of
research in economics, technology, hu-
man resources, and policy formation
and implementation can be considera-
18. We recommend the creation of an
bly strengthened by a coordinated ef-
Advisory Council reporting to the
fort involving this new dedicated unit,
Administrator of the FAA under the
along with existing Federally Funded
Secretary of Transportation. The Advi-
Research and Development Corpora-
sory Council should be small and focus
tions (FFRDCs), universities, and the
its attention on the encouragement and
resources available in the private
utilization of policy and technological
sector.
research, with initial priority on civil
aviation within the transportation
matrix.
"MOLICAS NHOT
15
This symposium was made possible
through generous support from the
Lockheed Electronics Systems Group,
the Rockwell International Corpora-
tion, and the Westinghouse Electric
Corporation, with assistance from the
Federal Aviation Administration and
16
the University of Pittsburgh.
Published in cooperation with the Department of University Relations,
University of Pittsburgh. PR 7752-289
THE SECRETARY OF TRANSPORTATION
WASHINGTON, D.C. 20590
September 12, 1989
Dear Don:
I ran across your excellent comments in the
Chicago Tribune regarding global competition.
Your message is similar to the one I have been
making all over the country, and I am
delighted to see that the private sector is
just as involved.
See you soon.
Sincerely,
Samuel K. Skinner
Mr. Donald E. Petersen
Chairman and Chief Executive Officer
World Headquarters
Ford Motor Company
The American Road
Dearborn, MI 48121
Chicago Tribur
America must adopt new form of globa
By Donald E. Petersen
polici
indus
"America's diminishing role as the preeminent
Th
economic power" and "America's loss of influence in
these
world affairs" are increasingly common fare these days
the e
on editorial pages, in academic journals and in
them
business magazines. Some state that our fate already is
such
sealed. Others are less dire in their predictions, urging
only that we sound the alarm.
Th
My opinion falls sharply to the latter side of this
adju
spectrum. I don't believe our destiny has been
com
determined irrevocably. However, I would strongly
trad
caution that American preeminence in world affairs is
syste
not beyond challenge.
indu
Invariably, the same articles that point to relative
well
American decline with one hand point simultaneously
envi
to Asian ascension with the other. Indeed, it is the
co-e
Asian Era. The Japanese economic miracle truly has
ecol
been extraordinary, as has been the rapid growth of
to S
Korea and the emergence of Taiwan and Singapore.
I
To a substantial extent, these were expected results
the
of U.S.-led efforts after World War II to develop a new
con
world economic system and rebuild a ravaged planet.
pro
We not only anticipated that other nations would
of
strengthen and once again play prominent roles in
SOC
world economic and political affairs, but we also
cor
encouraged such an outcome.
Yet, I believe what we have witnessed in east Asia is
S
beyond anyone's expectations. Over the past 20 years,
COI
while the U.S. economy has grown by just two-thirds,
act
the Japanese economy has expanded by 165 percent;
tak
Taiwan's by 430 percent; and Korea's by 500 percent.
CO:
Industry after industry-from steel to autos to
electronics-has felt this wave of growth come
ca
crashing in, with substantial market share gains being
er
made around the world by Japanese and other east
tn
Asian competitors.
Ned Levine/© 1989, Newsday
m
This phenomenal growth is not wholly undesirable.
da
It helps fuel an increasingly interdependent global
discount recent history. The Pacific Century is upon
te
economy and promotes regional political stability.
us. America must adapt to a new form of global
fe
However, it also poses to the United States the
competition. We must meet the growing challenge,
BUSH LIBRARY PHOTOCOPY
greatest economic challenge since we assumed the
and we must begin by recognizing and accepting
mantle of world leadership more than 50 years ago.
th
certain realities of today's world.
This challenge cannot go unanswered. I believe that
S1
neither the United States nor the rest of the world can
The first reality is that some nations demonstrate
I'(
afford substantial erosion of our leadership role.
planned and methodical efforts to dominate markets-
V
America has the strongest economy on earth. We
both geographically and by industry. They compete
n
possess and make available to virtually all nations the
with ferocity and often are willing to sacrifice short-
C
single largest and richest consumer market. We are the
term profits and domestic needs in favor of long-term
foremost military power in the world and our system
and export-driven growth.
of government is a shining example for freedom-loving
The second reality is that not all nations of the
people and societies around the globe.
world play by the same rules as the United States.
If America is to remain a world leader, we can't
Many countries with the most spectacular growth
stories do not subscribe to Adam Smith's "invisible
Donald E. Petersen is chairman and chief executive
officer of Ford Motor Company.
hand of the market." Instead, there is the very evident
hand of government, directing and coordinating
O Tribune, Wednesday, August 16, 1989 Section 1
17
bal competition
policies to aid the competitiveness of domestic
industries.
The third and perhaps most important reality is that
these managed-economy policies are the very heart of
the economic philosophy in nations that make use of
them. Consequently, efforts on our part to change
such core values will end in disappointment.
These realities dictate that the United States consider
adjustments to its own philosophy and methods of
competing globally. I believe that mutually beneficial
trade is key to maintaining the world economic
system. However, few if any companies, or even total
industries, have the wherewithal to compete against the
well-organized resources of entire nations. In this
environment, we need something more. If we are to
co-exist with countries so dedicated to international
economic strength, then we must be just as committed
to strength.
I would offer three broad recommendations. First,
the United States needs to institutionalize global
competitiveness as a key objective in our policy
process. In other words, we need to consider the effect
of all policy decisions-whether domestic or foreign,
social or defense-on the ability of our industries to
compete internationally.
Second, while industry is primarily responsible for its
competitive ability, government needs to promote
actively the American productive sector. We should
take actions designed specifically to mobilize our
considerable resources.
Tax policy, incentives and regulation, as examples,
can have dramatic effect on the competitive
environment. The judicious use of such tools can be a
BUSH LIBRARY PHOTOCOPY
tremendous spur to economic activity, impacting
many areas where the United States lags
dangerously-advanced product development,
technology research and capital formation, to name a
few.
Third, because free trade is not the rule in much of
the world, the United States must develop a more
strategic approach to trade. This would include
recognizing that certain industries and technologies are
vital to our economic leadership and advancing our
nation's interests in those areas. We also must use our
considerable influence to lower trade barriers in other
nations, while discouraging adversarial trading
practices that affect our domestic market.
We need to fashion a national environment in which
global competitive ability is assigned strategic
importance. In all honesty, I don't believe we
Americans have fully accepted the extent of the
challenge to our economic leadership. It's time we did.
It's not too early, in my opinion, to sound the alarm.
THE SECRETARY OF TRANSPORTATION
WASHINGTON, D.C. 20590
August 7, 1989
Dear Roger:
What a great day! Thanks for everything.
I am enclosing the jacket that Kathy was so
kind to find for me. I know you think the
people in Washington are cruel, but I still
haven't been here long enough to take the coat
off somebody's back. I think she borrowed
this from Gene Haskett, so I am reluctantly
returning it to you -- but hopefully with my
reputation in tact.
Warmest personal regards.
Sincerely,
Samuel X Skinner
Mr. Roger Penske
Detroit Diesel
13400 Outer Drive, West
Detroit, Michigan 48239
THE SECRETARY OF TRANSPORTATION
Postage and Fees Paid
WASHINGTON, D.C. 20590
Department of
Transportation
DOT 518
&
U.S.MAIL
Mr. Bob Peck
Midway Airlines
5700 S. Cicero Avenue
Chicago, IL 60638
THE SECRETARY OF TRANSPORTATION
7-26-89
Boa
thanks for you help yesterdy
and today. It leally helped and
l appreciate it.
SenSkimer
THE SECRETARY OF TRANSPORTATION
7-20-89
Boe
Day d can't he with
you mondy right but
previous Committents got in Son thewg.
See you Sern
THE SECRETARY OF TRANSPORTATION
Postage and Fees Paid
Department of
WASHINGTON, D.C. 20590
Transportation
DOT 518
U.S.MAIL
The Honorable Bob Packwood
United States Senate
Washington, D.C. 20510
alphab.
THE SECRETARY OF TRANSPORTATION
WASHINGTON, D.C. 20590
August 25, 1989
Mr. Roger Penske
Detroit Diesel
13400 Outer Drive West
Detroit, Michigan 48239
Dear Roger:
Many thanks for the Penske carafe and the team
jacket.
It was thrilling to be a part of the Marlboro 500,
and the mementos will be a constant reminder of
this enjoyable event.
I hope we have the opportunity to get together
again soon.
With best regards,
Sincerely,
Samuel K. Skinner
Great Denny any 1-2 you
THE SECRETARY OF TRANSPORTATION
WASHINGTON, D.C. 20590
The Honorable Robert L. Pettit
Wiley, Rein & Fielding
1776 K Street, N. W.
Washington, D. C. 20006
Dear Bob:
Congratulations on your return to Wiley, Rein
& Fielding. That's good news.
Best wishes to you as you pick-up where you
left off. Your clients will surely benefit
from the expanded range of services and I'm
pleased to see that Mimi has become affiliated
with the firm.
Samuel & K. Skinner
Sincerely,
DEPARTMENT UNITED STATES OF TRANSPORTATION OF AMERICA
THE SECRETARY OF TRANSPORTATION
WASHINGTON, D.C. 20590
June 13, 1989
Dear Al:
Thank you very much for your letter. I was speaking from the heart
at the Productivity Conference, and am gratified that my message
struck a responsive chord. I especially enjoyed your comment about
Ross Perot's IBM pursuits, and find it interesting to note the
different paths that former "IBMers" have taken. Service and a
commitment to serve are what it's all about in business and in
government; those who work by that credo succeed.
I'm glad you wrote and wish you continued success.
Sincerely,
Samuel K. Skinner
Dr. A. J. Prendergast
Director
Office of Program Analysis and Review
Small Business Administration
Washington, D.C. 20416
SMALL
U.S. SMALL BUSINESS ADMINISTRATION
WASHINGTON, D.C. 20416
ATOMA
Seary
1953
JUN - 7 1989
Honorable Samuel K. Skinner
The Secretary of Transportation
Washington, DC 20590
Dear Mr. Secretary:
I was very impressed with your excellent keynote address
at the Second Annual Conference on Quality and
Productivity Improvement sponsored by the President's
Council on Management Improvement and the Office of
Management and Budget on May 31, 1989.
Your remarks concerning your association with the
International Business Machines Corporation struck a very
responsive chord and brought back a flood of pleasant
memories which very few can truly appreciate. I worked
for IBM for over six years, both as a Senior Systems
Analyst and as a Data Processing Sales Representative
during the turbulent years from 1955 through 1961. Ross
Perot and I were salesmen together in the Houston Office
of IBM. Ross was working on the Blue Cross Account and I
was working with Humble Oil Corporation. I was granted a
leave of absence from IBM in order to pursue a doctorate
at the University of Texas.
Although I have pursued a number of successful careers
since leaving IBM, I agree with you that the sense of
pride in service and dedication to excellence instilled by
this magnificent company has provided continuing
inspiration.
Presently, I am a member of the Senior Executive Service.
As Director of this office which received an award this
year for Management Excellence from the President's
Council on Management Improvement and as a recipient of
the Presidential Rank of Meritorious Executive, I believe
that the IBM values have contributed greatly to any
success I enjoy.
Please accept my personal best wishes for your continued
success in the many challenging tasks which lie ahead.
You have the support of this ex-IBMer.
Sincerely,
ae Prendergast
A. J. Prendergast, Ph.D.
Director
Office of Program Analysis & Review
Phone No. 653-6908
THE SECRETARY OF TRANSPORTATION
Ross
6-8-89
Congrabulations on the decision
g Cemerican to goto to alliance. Great
Win. See gow in Paris
Som
THE SECRETARY OF TRANSPORTATION
Postage and Fees Paid
Department of
WASHINGTON, D.C. 20590
Transportation
DOT 518
U.S.MAIL
Mr. H. Ross Perot, Jr.
The Perot Group
1700 Lakeside Square
12377 Merit Drive
Dallas, TX 75251
THE SECRETARY OF TRANSPORTATION
WASHINGTON, D.C. 20590
June 7, 1989
Dear Bill:
Great article about a great effort!
Congratulations.
I am proud to have lived across the street
from you.
Warmest personal regards.
Sincerely,
&
Mr. C. William Pollard
President
The ServiceMaster Company
2300 Warrenville Road
Downers Grove, IL 60515
COVER STORIES
STARS
OF THE
SERVICE 500
Strict attention to costs and a passion for satisfying the customer have
kept profits blazing at nine standout companies.
by Carol J. Loomis
ServiceMAST
C. WILLIAM POLLARD AND KENNETH T. WESSNER
SERVICEMASTER
When their core business of hospital housekeeping weakened, President Pollard, 51 (left), and Chair-
man Wessner, 67, converted ServiceMaster to a partnership, borrowed, diversified, and kept it Star No. 1.
54 FORTUNE JUNE 5, 1989
500
HE SERVICE sector of U.S.
T
there the company's first objective:
business displays bold para-
"To honor God in all we do." The
doxes. It is the engine power-
name ServiceMaster connotes "mas-
ing growth in the economy.
ter of service" as well as "service to
yet ofttimes it is a wheezer in deliver-
the Master."
ing profits. It is a world of ferocious
But the Lord helps those who help
rivalry in which competitive advan-
themselves. In the name of making
tages can disappear overnight. But it
money, ServiceMaster experienced a
is also a world in which innovative
stunning secular conversion between
and flexible companies can outshine
List 1 and List 2. Five years ago the
the field for years.
company was a garden-variety corpo-
FORTUNE here presents the
ration that garnered 80% of its reve-
brightest stars of the service sector.
nues from services, particularly
including that standout whose CEO
cleaning, that it provided to hospitals.
is on the cover, Marriott (see box.
The company had no debt and re-
page 56). The nine winners were
quired so little capital that it paid out
identified by a special FORTUNE
more than 70% of its earnings in divi-
study of sustained profitability in the
dends. But as Medicare shrank what
Service 500. The nine form, you
it would pay toward the bills of senior
might say, an all-star baseball team
citizens, hospitals retrenched and
made up of home-run sluggers and
ServiceMaster got squeezed.
line-drive dependables, and a few
ToM E. SMITH
So the company sallied forth and
slated to make the Cooperstown of
FOODLION
transformed itself. For one thing, it
investing. These are the boys not only
borrowed $340 million, mostly to buy
of a summer but of a decade. In their
By asking "How can we do the job better for
other service businesses that would
techniques and philosophies lie
less money?" President Smith, 47, has kept
fit its disciplined Midwestern ways.
broad lessons for business.
growth roaring at this supermarket chain.
Now it owns a pest and termite con-
We lined up this team by looking
trol specialist, a food service compa-
at return on equity-the ratio, that is, of af-
that end, they hold prices down by keeping
ny, and a maid service for homes. It is also
ter-tax profit to stockholders' equity-the
costs and systems under rigid control.
acquiring a company that guarantees the
ultimate measure of how well a manage-
There are, in fact, cost fanatics on the team.
buyer of a house that the appliances within
ment is using the owners' money. To be a
The shiningest star of the group is also
it will work.
star, a company had to average at least a
somewhat unorthodox. ServiceMaster, of
Second, ServiceMaster momentously re-
20% return on year-end equity over the
suburban Chicago, headed the 1984 list and
organized itself into a limited partnership,
1979-88 decade without once slipping be-
leads the 1989 version as well with an aver-
thereby escaping corporate income taxes
low 15%. Companies that met these stan-
age return on equity for the decade of-
and boosting earnings by about 80%. Si-
dards only through nonrecurring gains
wow!-63.7%. Back-to-back champion-
multaneously, as part of the reorganization,
made on sales of assets did not qualify.
ships may attest, in this case, to the power
it spent $38 million to buy back a big block
Each winner is a true business phenome-
of religion. The company selects a biblical
of its shares, a step that shrank its equity by
non. A company scoring 20% returns on
verse for each annual report and reiterates
more than half.
continued
equity year after year is offering an investor
an exotic 20% savings account. Part of the
investor's return is delivered to him
through dividends; the remainder stays in
NINE THAT LIGHT THE SKY
the company as retained earnings, there
again to earn 20%. As financial deals go,
COMPANY
RETURN ON EQUITY 1979-88
this one is hard to beat.
But such deals are also hard to find. Five
Average
BEST Year
WORST Year
years ago, when FORTUNE conducted a
1
SERVICEMASTER
63.7%
142.2% 1987
30.9% 1980
similar study for the decade 1974-83, we
2
PRICE
28.5%
43.2% 1981
19.3% 1987
turned up only a dozen winners. Of these,
3
UNITED PARCEL SERVICE
28.3%
37.3% 1981
16.1% 1979
just three repeated on this year's list of
4
TANDY
26.0%
40.0% 1979
15.1% 1986
stars. Four dropped off because they were
5
WAL-MART STORES
acquired or went private, and five couldn't
25.6%
27.8% 1988
22.4% 1981
6
FOOD LION
maintain the high batting average required.
24.2%
28.8% 1979
22.4% 1982
The new superachievers, three repeaters
7
BRUNO'S
22.4%
35.3% 1981
15.4% 1987
and six newcomers, share some ideas that
8
MARRIOTT
21.7%
32.7% 1988
17.2% 1979
may help explain their mutual success.
9
MELVILLE
20.9%
24.0% 1979
19.1% 1985
Most are imbued with the belief that profits
To join this galaxy, drawn from the Service 500 lists starting on page 351, a company had to
come from providing genuine value. To
have averaged at least a 20% return on equity the past ten years, never sinking below 15%.
PHOTOGRAPHS BY KATHERINE LAMBERT
JUNE 5, 1989
FORTUNE 55
CUVER STORIES
One bit of constancy: ServiceMaster's
tion, except in leveraged buyout country.
Compared with ServiceMaster, the other
payouts, now called distributions instead
Brooding over ServiceMaster and a pack
two survivors from the 1984 list, both re-
of dividends, have stayed high. But the
of other companies that decamped into
tailers, would appear to be relatively ho-
company's reduction in equity and in-
partnerships, the government rose up to
hum-except that is patently not the way
crease in profits are today producing
block this escape route from income taxes.
to describe one, Wal-Mart Stores. In base-
returns on equity that make even Service-
ServiceMaster, among others, was grand-
ball terms, Wal-Mart, whose $20 billion in
Master's cherished returns of the past-
fathered and will be spared taxes until
revenues make it the nation's third-largest
30% and up-look poor and miserable.
1998, at which point it will begin to pay
retailer, has been swinging for the fences
Last year, earning $64.6 million on $51.4
them and resume life in the slow lane. By
forever. Still a corporate kid with stores in
million in equity, the partnership showed
then, C. William Pollard, ServiceMaster's
only 26 states, Wal-Mart is likely to pass K
an eye-popping return of 126%. Of
chief executive, hopes to have paid down
mart in 1990 and in five years could over-
course, the partnership had debt of $280
debt, to have gained growth from his acqui-
take Sears.
million, more than five times equity.
sitions, and to be making high returns on
The other survivor is Melville, a specialty
That's not normal, God-fearing capitaliza-
equity the old-fashioned way.
retailer and a singles and doubles hitter that
HOW MASTER LODGER BILL MARRIOTT PROPHESIED
It may have sounded brash in 1980 when J. W. Marriott Jr.
widely today. In lodging it offers 121,000 rooms under the old
publicly proclaimed Marriott Corp.'s intention to make
name and new ones: Courtyard, Fairfield Inn, Residence Inn,
better than 20% on stockholders' equity in the decade ahead.
and soon for the elderly, Brighton Gardens. The company runs
The company had averaged only 11% in the Seventies. But even
and franchises 1,100 restaurants, among them the Roy Rogers,
as he spoke, Bill Marriott was stripping away the company's
Bob's Big Boy, Allie's, and Host chains. It supplies in-house food
need for capital. He sold hotels while keeping the rights to man-
to big employers and in-flight food to airlines.
age them, and used the proceeds and borrowings to repurchase a
third of Marriott's stock. In his head he had a picture of what is
T IS, IN FACT, gigantic in food, getting 70% of its revenues—
now chiseled in the record: an average ROE through 1988 of
when hotel sales are figured in-from eats and drinks. As a
well over 20%, with no year's return below 18%.
huge centralized buyer, it uses leverage expertly, keeping pay-
Marriott's stock has leapt since then from a market value of
ables high and gliding along with a negative working capital.
$700 million to $3.5 billion. That's a nice gain for the family,
Counting part-timers such as student/waiters, Marriott employs
with its 25% stake. Still, Bill Marriott's father, Willard, who
230,000, making it the nation's ninth-largest private employer.
raised this suburban Washington, D.C., company from root-beer
The man at the top-sometimes "the big M" in employee
stands and who was a hero to his son, originally fought the strat-
banter but routinely "Mr. Marriott" to his face-is serious, gen-
egy. In the Depression, he'd seen a stream of debt-laden hotels
tlemanly, and steeped in his business. In his dad's office he over-
go bankrupt. He liked real estate, conservatively financed, and
heard mysterious chatter about "food cost percentages" before
he didn't like the stock market. The thought of selling hotels and
he'd even seen percentages in school. While a University of Utah
borrowing to buy Marriott stock dismayed him.
undergrad, he toiled at a Marriott Hot Shoppe. Later he moved
But the father had done the unusual in his time also. A Mor-
into the lock-step pattern of a corporate heir and he recalls occa-
mon proscribed from drinking, he sold liquor in his hotels, be-
sionally pulling his rank: "I was rougher 25 years ago."
lieving it critical to success. His son was equally determined:
He has since won deep admiration in the company by know-
"We wore him down. He went along because the management
ing it so well. That does not make him a financial expert. The
and the board supported the plan. But he never believed in it."
company's restructuring was mainly the idea of two Marriott
The elder Marriott died in 1985, at age 84, and within weeks
alumni, Gary Wilson, now at Disney, and Alfred Checchi, an
the family suffered a second blow. Bill Marriott, then 53, was
investor currently trying to take over Northwest Airlines with
seriously burned. While he was trying to start a boat, the gas tank
Wilson's help. But Bill Marriott listened.
exploded. He survived by diving into the water, but the company
Pressed to describe what he does best as a manager, Marriott
shivered during his slow recovery. There is "magic," says a Mar-
says, "Maybe setting an example of hard work and concern for
riott resort manager in having a man of the name at the top.
both the customer and the employee, while also driving hard to
make money. People say you can't balance the two, but my fa-
H
E CAME BACK the same Bill Marriott: absorbed in work,
ther believed you could, and I do too."
family, and the Mormon church, in which he has been an
His style, and his eminence, were on view recently at the com-
active local leader. His compensation from Marriott is $1 mil-
pany's 410-room Albuquerque hotel, one of nine Marriott estab-
lion, his dividends the same, and he tithes as the religion com-
lishments he visited in a pell-mell two days. Learning late that
mands. Two sons and a son-in-law hold jobs in the company.
the boss was dropping in, the hotel's outgoing, energetic 38-year-
Are they as dedicated to it as he? He isn't sure: "They see how
old manager, Tom Chase, sped back from a trip-"I couldn't
hard I work and I think they ask themselves if it's worth it.
have Mr. Marriott on my property and not be here"-and all but
They've never said anything, but I wonder."
personally scoured the kitchen and polished the lobby floor.
The Marriott empire, nearing $8 billion in revenues, sweeps
Arriving, Marriott was hailed by 40 employees lined up to
56 FORTUNE JUNE 5, 1989
just keeps getting on base. The largest of its
Another, Price Co., a 13-year-old creative
not yet put Sam's clubs into Price cities.
13 divisions include Marshalls, an off-price
wonder, started the first U.S. warehouse
The same point does not apply to super-
merchandiser; CVS, a discount drug chain;
clubs, which are no-frills, cement floor op-
market chains Food Lion, based in North
Kay-Bee, which sells toys; and Meldisco,
erations that sell food, hard goods, and
Carolina, and Bruno's, headquartered in
the footwear licensee in K mart stores.
you-name-it to small businesses and dues-
Alabama. Both have been expanding furi-
From that vantage point, Meldisco is forced
paying folk. Years ago, Sam Walton of
ously-Food Lion ferociously-and
to watch Wal-Mart's smoke.
Wal-Mart, now 71, got a guided tour of a
though they have largely stayed out of
To these holdovers, add four newcomers
Price club from founder Sol Price, now 73,
each other's hunting grounds, some head-
that are also retailers. One, Tandy, owns
and his son, Robert, now 46 and chief ex-
to-head competition is newly visible. Of
the Radio Shack chain of stores, where it
ecutive. Walton went on to start imitations
the two, Food Lion is the most single-
sells computers from its own factories and,
called Sam's Warehouse Clubs. Last year,
minded, using cookie-cutter stores to offer
in the words of one security analyst, ex-
Sam's and the Price clubs both had reve-
low, low prices to get high, high volume.
ploits "a great, great franchise selling little
nues of about $4 billion. But out of cau-
Bruno's operates five chains (including
pieces of wire at an enormous markup."
tion or gratitude for the idea, Walton has
some stores under the venerable Piggly
PROFIT AND PROSPERED
shake his hand, wearing their best. On an hour's tour, he gri-
building of standard, full-service hotels, concentrating instead on
maced at the lack of glaze on the pastries-"They're due to get it
suite layouts and middle-market Courtyards and Residence Inns.
before they leave the kitchen," explained Chase-and noted the
He may add a few resort hotels to the 20 Marriott already has in
need for a catch-the-spills mat between kitchen and dining
such haunts as Barbados and Maui, and he wants to expand some-
room. He stopped to check the "Guest Service Index"-a ba-
what overseas, where the chain is relatively unfamiliar.
rometer of quality that had dipped, said Chase apologetically,
because the water supply had been cut off when a nearby main
M
ARRIOTT WANTS NO PART anywhere of what he calls
broke, and because a visiting hockey team had been rowdy.
"trophy hotels"-the one-of-a-kind, luxury establishments
A photographer back-pedaling before him, Marriott posed
that have recently been selling at enormous prices, often paid by
with employees, smiling as if born to politics. Speaking to a
foreigners. An industry rule of thumb says a hotel will fly econom-
handicapped kitchen worker named Sheila, he said, indeed, he
ically if its rooms command rates equal to one-thousandth of their
remembered a letter she'd sent him four years before. And when
cost. Buying the Beverly Hills recently, the multi-billionaire Sul-
the visit was over, Marriott told a reporter that the hotel looked
tan of Brunei paid $750,000 per room, which means he needs
very clean and in good shape and that Chase was an ideal sort for
$750 per night, about triple today's rate. The Sultan might
a manager: "He's friendly
not mind losing tankers of
and pumped up, and that's
money. Bill Marriott would
why he's got great occu-
J.W. MARRIOTT JR.
mind.
pancy rates."
MARRIOTT
Ironically, the fervor of
Overall, says Marriott,
foreigners for hotels has
the company's occupancy
Chairman and boss since 1972, Bill Marriott, 57, gets kudos for
made him reconsider his
is "at least ten points high-
knowing his businesses: lodging, restaurants, and food service.
strategy of selling off Mar-
er than the industry's,"
riott's. The stock market,
which is 63%. The compa-
he notes, never used to
ny perennially stars in cus-
recognize the real-estate
tomer surveys done by
value of hotels, but that's
Business Travel News. But
changing. Says Marriott,
the industry is overbuilt
"We need to figure out a
right now and rates are
way to hang on to our ho-
sticky. A decade ago, with
tels longer. We're working
rooms tight, Marriott ho-
on that."
tels scored with rate in-
His comment implies
creases that exceeded
that the company may
inflation rates by a couple
soon have a big need for
of percentage points.
capital. Yet recently it has
Could they do it again if
been buying its stock-
inflation flared? Consider-
again-and Marriott is still
ing the abundance of
predicting rich returns on
rooms, says Marriott, it
equity. They will stay north
would be hard.
of 20%, he promises. You
He plans now to slow the
better believe.
JUNE 5, 1989
FORTUNE 57
COVER STORIES
Wiggly name) with more varied pricing.
three years ago, mainly because earnings
ring gains that didn't count. Finally, the
Two generations of Waltons, Brunos,
have also stalled. Wal-Mart-who else?-
investor would have picked up two compa-
and Prices are represented in the manage-
led the seven with a rate of 46%, and the
nies that later took some knocks: Phibro-
ments of FORTUNE'S stars, and a fourth
Southeast sizzlers, Food Lion and Bruno's,
Salomon (now called just Salomon), a Wall
family-run business is Marriott, whose
were both at 36%.
Street stumbler; and a catalogue showroom
lodging and food businesses are now head-
No public market for UPS's stock exists.
retailer, Service Merchandise, whose diver-
ed by the founder's son, J. W. Marriott Jr.
Instead, the shares are entirely in the hands
sification into building supply warehouses
The remaining star in the galaxy, United
of the company's managers and supervi-
helped produce losses from which the com-
Parcel Service, is not technically family
sors, who earn them as compensation.
pany has since recovered. As a group these
run, but thinks of itself that way.
When a shareholder leaves, he must sell his
five had a median total return below that of
As investments, the stars have delivered
stock back to the company at the currently
the S&P.
celestial gains. Seven of the group were
prevailing price, set by UPS. Retiring, he
But at the end of 1988, the 12 boys of
publicly traded at the end of 1978, UPS and
unloads gradually, over ten years.
1984, taken as a group, would have given
Price being the exceptions. Over the next
Because UPS stock does not trade pub-
an investor a median total return, annual-
licly, FORTUNE'S list of transportation
ized, of 19.4%. That beats the S&P, at
companies does not present a total return
18.6%, by a relatively small but significant
for the company. But using price and divi-
margin. The moral: A few strikeouts won't
dend data UPS publishes every year, we
keep all-stars from scoring.
figured its ten-year annualized return to be
34%. Not bad for a conservative outfit that
HAT LESSONS can be di-
is the oldest of the nine on our list-it was
W
vined from this year's stars?
founded in 1907-and never lets its stock
For starters, ServiceMaster has
price get up to anything crazy like 12 times
signed up a phone number that
earnings. Price, the youngest of the nine,
fits the other eight companies as well:
has paid no dividend since it was founded
1-800-WE SERVE. In general, these com-
in 1976. But the rocketlike ascent of its
panies roam their territories looking for
stock reflects the company's inventiveness.
new and better ways to supply what the
Since the shares were first publicly traded
public wants. Says Stanley Goldstein,
in 1982, they have appreciated at a com-
chairman of Melville: "Whenever we think
pound annual rate of 42%.
about buying a new division, we ask our-
Of course, an investor could not tell
selves what value it will provide the cus-
years back just which companies would
tomer. The answer may be price; it may be
join our galaxy of stars. He could, however,
selection. But it's got to be something, or
have read FORTUNE'S 1984 article celebrat-
else forget it. The one thing we don't want
ing the 12 stars of that era and decided
to do is run after the God of Big Volume."
to buy, picking up Wal-Mart, Melville,
By not chasing volume, Melville got a
Bruno's
ServiceMaster, and the other nine.
bad start in a good race. The company
In this not-so-dirty dozen, he would
failed originally to spot the big potential in
have done superbly-on balance-with
athletic footwear stores like Woolworth's
RONALDAND
four companies that faded from public
Foot Locker. "A valid criticism," says
ANGELO BRUNO
view: Parsons, an engineering and con-
Goldstein. "We were myopic." Melville is
struction company that went private;
now trying to catch up in this footrace with
BRUNO's
Lucky Stores, a supermarket chain bought
a two-year-old chain it calls Fan Club.
out by another, American Stores; Electron-
In the hotel business, high occupancy
Birmingham-based father and son
ic Data Systems, bought by General Mo-
rates are plainly the key to success, and
Angelo, 65, and Ronald, 37, have
tors; and Allied Bancshares, a Houston
Marriott's are significantly above average.
been successful at holding prices
company that tottered and was taken over
What's the secret? Answers Bill Marriott:
down in several types of supermar-
by First Interstate. While the investor's
"It's friendly service and taking very special
kets, from warehouse to upscale.
losses on Allied would have been Texas-
care of every customer," which means ca-
size, his profits on the other three would
tering to many different needs. Some guests
decade the median total return for the sev-
have more than compensated.
want to stay in their rooms; some want to
en-that is, stock appreciation plus divi-
Among the other 1984 companies that
hang out in the cocktail lounge. Marriott
dends-was 30.2% a year, compounded.
would have landed in the investor's portfo-
points out that many business travelers are
That's a spectacular result compared with
lio are three that almost repeated in 1989:
well-paid and gregarious salesmen: "They
the 18.4% median registered by the entire
McDonald's, which had an average return
want to mix with people who are the same
on equity for the last decade of "only"
and don't want to meet someone across the
Service 500.
Each of the seven beat that median. Ser-
19.5%; Super Valu, a food wholesaler that
front desk who's stuffy."
viceMaster, ironically, did the worst,
slipped below 15% in one year; and Dun &
At UPS, service is a theology, based on
19.6%. Its stock has stagnated since the
Bradstreet, whose steady-Eddie returns of
the belief that what's good for the customer
company turned itself into a partnership
above 20% included too many nonrecur-
REPORTER ASSOCIATE William E. Sheeline
58 FORTUNE JUNE 5, 1989
THE SECRETARY OF TRANSPORTATION
Postage and Fees Paid
Department of
WASHINGTON, D.C. 20590
Transportation
DOT 518
U.S.MAIL
The Honorable H. Ross Perot, Jr.
The Perot Group
1700 Lakeside Square
12377 Merit Drive
Dallas, TX 75251
Attention Sheri Sitton
THE SECRETARY OF TRANSPORTATION
Ross
5-31-89
thankfor anongy everythy
while I wasin Biy D". I
also need another lesson.
you are day great things daw there
keep it up. Sam
H.R. PEROT, JR.
1700 LAKESIDE SQUARE
12377 MERIT DRIVE
DALLAS, TEXAS 75251
May 26, 1989
fio
The Honorable Samuel K. Skinner
Secretary of Transportation
U.S. Department of Transportation
400 7th St., S.W., Suite 10200
Washington, D.C. 20590
Dear Mr. Secretary:
Thank you for taking the time to tour Alliance
Airport and have dinner with my father and me. I
enjoyed getting to know you better.
Congratulations on the new airport in Denver. It is
a great model for other cities to follow.
I look forward to seeing you in Paris.
Sincerely,
D
H.R. Perot, Jr.
HRPjr/ss
silsss
THE SECRETARY OF TRANSPORTATION
WASHINGTON, D.C. 20590
May 30, 1989
Dear George:
I thoroughly enjoyed my recent visit to
Governors Island. The Coast Guard hospitality
was great, and I sincerely appreciated you
meeting me personally upon my late evening
arrival at Teterboro Airport.
I was impressed with the people and facilities
on Governors Island, and I hope to return soon
for a longer visit. Please convey my thanks
to all those who made my stay comfortable and
productive. I fully realize that it was a team
effort!
Sincerely,
Samuel You K. Skinner
Rear Admiral George Passmore
Commander (m)
MLC Atlantic
Building 400, K Section
Governors Island, NY 10004
THE SECRETARY OF TRANSPORTATION
Seth
5-20-89
thanks fan trawelly with
us to N.Y. also for your Support
to one team
San
THE SECRETARY OF TRANSPORTATION
Postage and Fees Paid
Department of
WASHINGTON, D.C. 20590
Transportation
DOT 518
U.S.MAIL
Mr. Seth Payne
Business Week
1120 Vermont Ave., N.W.
Suite 1200
Washington, D.C. 20005
For
Sam's Shammers
27.5 hits per during
THAT'S THELAW
SHP
Setto Payne
THE SECRETARY OF TRANSPORTATION
WASHINGTON, D.C. 20590
May 25, 1989
Mayor Federico Pena
Director of Aviation
City and County of Denver
Stapleton International Airport
Room 400 - Terminal Building
Denver, Colorado 80207
Dear Mayor Pena:
Many thanks for the impressive picture of Denver. It
certainly is a memorable city.
I appreciated the warm reception I received during my
visit, and I hope I have the opportunity to return to
Denver soon.
With my warmest regards,
Sincerely,
Samuel Jan K. Skinner
GrestDoe
U.S. Department of Transportation
The Secretary of Transportation
400 Seventh St., S.W.
U.S.MAIL
Washington, D.C. 20590
Postage and Fees Paid
Mayor Federico Pena
Department of Transportation
DOT 518
Director of Aviation
Official Business
Penalty for Private Use $300
City and County of Denver
Stapleton Internatioal Airport
Room 400 - Terminal Building
Denver, Colorado 80207
CITY AND COUNTY DENVER OF
CITY AND COUNTY OF DENVER
DEPARTMENT OF PUBLIC WORKS
DIRECTOR OF AVIATION
SEAL
CITY AND COUNTY OF DENVER
FEDERICO PENA
STAPLETON INTERNATIONAL AIRPORT
Mayor
ROOM 400 - TERMINAL BLDG.
DENVER. COLORADO 80207
(303) 270-1200
may 24, 1989
Dear Secretary Skinner,
cl brought you something
which will serve as a remembrance
of your visit to Denver.
Thanks for all your help
and for your leadership.
Jederico Perio
May 1989
U.S. Department of
The Secretary
Transportation
Office of the Secretary
of Transportation
Ross
For your info
at least Come
are listoniz.
San
OnMay 16th,
Denver voted to close
America's 5th busiest airport.
BEST KEAD
COSE
Winner,
NEWSPAPER
RETURN
For Rack Service
Problems. Call
820-1222
Gorbachev vowi
funcing operation busted
Asian troop cuts
belign 89 stolen goods second of Cherkan home
the
-
Suns whip Warriors 118-104
despite
Colorado apple growers
Rocky Mountain News
N.Y. tops Buils 121-114
promises
shun Alan use -
WEDNESDAY
II
2000
THE DENVER POST
I
IT'S YES
Denver says yes to new airport
Voters back
Voters give
project by
thumbs up
-
2-1 margin
to airport
Creation of with
we
deciding factor/8
D.C. lobbying
to take 01/22
29.128
Person sparts
soal
other
23
-
XXX
OTHER ELECTION NEWS
I
-
214-788-3075
Cerot, Ross Jr.
12377 merit Dr.
Swite 1700
Dallas, TX 75251
THE SECRETARY OF TRANSPORTATION
Postage and Fees Paid
Department of
WASHINGTON, D.C. 20590
Transportation
DOT 518
U.S.MAIL
The Honorable H. Ross Perot, Sr.
The Perot Group
1700 Lakeside Square
12377 Merit Drive
Dallas, TX 75251
Attn Barbara Connolly
THE SECRETARY OF TRANSPORTATION
Ross
5-31-89
thank you for dinner
the other mjht. It wres a
wonderful evening with a grocians
Host.
Sam
alphabetical
June 7
THE SECRETARY OF TRANSPORTATION
WASHINGTON, D.C. 20590
Mr. Edmund T. Pratt, Jr.
Chairman
The Business Roundtable
200 Park Avenue
New York, New York 10166
Dear Ed:
It was an honor to be invited to The Business
Roundtable dinner this past week at the
J. W. Marriott. Thank you for your thought-
fulness in inviting me.
The evening was a tremendous success and I
enjoyed mingling with such distinguished
guests.
I hope we have the opportunity to get together
again soon.
With my best regards,
Sincerely
Sanuel Jose K. Skinner
The Business Roundtable
New York
200 Park Avenue
New York, New York 10166
(212) 682-6370
Edmund T. Pratt, Jr.
William L. Lurie
Chairman
President
John F. Akers
Cochairman
Richard W. Anthony
Executive Director-Public Information
James T. Lynn
Richard F. Kibben
Cochairman
Executive Director-Construction
James D. Robinson III
April 28, 1989
Cochairman
Washington
1615 L Street, N.W.
Washington, D.C. 20036
(202) 872-1260
The Honorable Samuel Skinner
Samuel L. Maury
Secretary of Transportation
Executive Director
Department of Transportation
Washington, DC 20590
Dear Mr. Secretary:
On behalf of the 200 chief executive officers of American
corporations who are the members of The Business Roundtable, I am
pleased to invite you to attend the reception and dinner, to be
held in conjunction with our Annual Meeting, beginning at 6:00
p.m. in the Grand Ballroom of the J.W. Marriott Hotel in
Washington, D.C. on June 5, 1989. We are pleased that President
George Bush has agreed to be our dinner speaker.
The Roundtable is an organization of chief executive
officers dedicated to working together on issues and problems
that impact the economic and social well-being of the nation.
Membership is diversified, with representation from all major
geographic regions and in all fields of business and industry.
I hope you will mark your calendar for the evening of June 5
to join with us for what, I am sure, will be a pleasant and
productive evening. You will be receiving a formal invitation
shortly.
Sincerely,
Ed
Edmund T. Pratt, Jr.
Chairman, Pfizer Inc.
Chairman, The Business Roundtable
Policy Committee: Edmund T. Pratt, Jr., Chairman
John F. Akers, Cochairman
James T. Lynn, Cochairman
James D. Robinson III, Cochairman
Edward L. Addison
Howard P. Allen
Robert E. Allen
Rand V. Araskog
H. Brewster Atwater, Jr.
Norman R. Augustine
Stephen D. Bechtel, Jr.
William W. Boeschenstein
Edward A. Brennan
James E. Burke
D. Wayne Calloway
Colby H. Chandler
John L. Clendenin
John J. Creedon
Robert F. Daniell
Richard L. Gelb
John A. Georges
T. Marshall Hahn, Jr.
Robert
A.
Hanson
Philip M. Hawley
Richard E.
Heckert
William R. Howell
Jerry R. Junkins
David T. Kearns
Robert D. Kilpatrick
Drew Lewis
Richard J. Mahoney
Robert H. Malott
Hamish Maxwell
John F. McGillicuddy
Ruben F. Mettler
Richard M. Morrow
Allen E. Murray
Paul H. O'Neill
John D. Ong
Donald E. Petersen
Lewis T. Preston
Lawrence G. Rawl
John S. Reed
David M. Roderick
Vincent A. Sarni
George A. Schaefer
Frank A. Shrontz
John G. Smale
Roger B. Smith
P. Roy Vagelos
William L. Weiss
John F. Welch Jr
Henry Wendt
Walter F. Williams
Robert C. Winters
John A. Young
On the occasion
of its
Annual Meeting
The Business Roundtable
requests the pleasure of your company
at a reception and dinner
on Monday, the fifth of June
at
The gw Marriott Hotel
1331 Pennsylvania Avenue, NW
Washington, D.C.
Please reply
6:00 p.m. Reception
by enclosed card
7:00 p.m. Dinner
Non Transferable
Informal
COMMENT UNITED STATES OF TRANSPORTATION OF AMERICA
THE SECRETARY OF TRANSPORTATION
WASHINGTON, D.C. 20590
May 10, 1989
MEMORANDUM FOR: Chief Dave Proper
Ken Watson
Jesse Hill
Dave Williams
Polly Keywood
Many thanks for the fine job you did in preparing for my Lake
Forest group last Friday.
The table was set up perfectly, the food
as usual
was
outstanding, and the fruitbowl centerpiece was an especially
nice touch. All in all, you helped create a very "homey"
atmosphere for the occasion.
It meant a great deal to me to see such a tremendous effort on
behalf of my friends from home. You should all be proud of the
fine work you do every day.
With my warmest regards,
Sincerely,
Samuel K. Skinner
PAGE MEDIA, Inc.
World Trade Center
Suite 400
Boston, MA 02210
Robert E. Page
Chairman
August 11, 1989
The Honorable Samuel K. Skinner
Secretary of Transportation
Department of Transportation
Washington, D.C. 20590
Dear Sam:
Your pal, Rentschler, is at it again. He says you're "crafty, brazen
and hard as nails"! Take it as a compliment.
If you ever have a night free for dinner somewhere in this great land
of ours, I'd like to spend an evening with you catching up.
Honey gave us the good news. Congratulations. She's a very smart
choice and you're a lucky man.
And, since we can't get you to Cape Cod for a weekend, let's find a
night on your calendar for dinner, so that I would be able to tap in
once again to your agile mind on a number of acquisitions I'm trying
to put together.
Best regards,
Robert E. Page
REP/lbr
/
(508) 896-9350
(617) 439-5924
Fax (508) 896-4812
U.S. DEPT OF
TRANSPORTATION
89 AUG 16 PM 2:00
OFFICE OF SECRETARY
OF TRANSPORTATION
E EXECUTIVE SECRETARIAT
SENT BY:Mgt Advisoru Sus
; 8-10-89 12:20PM ;
43486094
5088964812;# 1
RCO
26301
SENT BY:CORPORATE OFFICE
; 5-21-89 12:26PM ;
WANTED
RENTSCHLER, War. H.
SECT. 8 - SCAM - SCUM
World hill n. 'used car' from this man
again
SENT BY:Mgt Advisoru Sus
; 8-10-89 12:22PM ;
4348609+
5088964812:# 3
229679
SENT BY :CORPORATE OFFICE
; 5-21-89 12:25PM ;
North Shore FREEDOM COMMITTEE
Box 532 Lake Forest, IL. 60045
(312) 662 - 6200
= the right of the people to keep and bear arms shall not be Infringed!"
PROSTITUTES OF TIE PRESS SCIEN1 AT an ENTROISE OF FIRST NEGRAT RIGITS!
The idea that "Freedom of the Press" is only for those that OWN one is no
better shown than by convicted criminal Bill Rentschler, owner/publisher
of the far-left NEWS-VOICE, and his lackeys. Chiaf-honcho and gun-banning ed-
Freedom Committee's perfectly legal and completely othical call for a boyoott
itor Jerry Kramer is up in arms, if you'll forgive the expression, at the
of not only the scruffy little News-Voice, but of their advertisers as well,
It seems the first amendment only applies to ex-cone and left-wing allowed
news publications, and not to ordinary citizens. Criminal Rentschler is ECT- and
murderers"! He have committed "slander", "threate", "advertising boycotts"
eaming like a stuck pig! Our boycott is "blackmail", and we are "zealots
and "other despicable acts"! Apparently our "despicable acts" consist of
reminding Line community that will Rentechler is a convinued swindler we
stole many families' life savings, and served hard time in A federal renits
entiary for it. And we've told the community that this thief and hypocrite
is now trying to steal much more from the community free choice, The
American Communist Party fielded a plank in their national platform calling
right to choose whether or not YOU may or may not own a given. In 1928 the
total confiecation of all privately owned firearms from ALL American
for citizens. a Rentschler and his gang of thugs follows that line campletely. It's
still to this day a part of the communist agenda, as it is of their dupes and
followers. so criminal Rentschler & CO. may be ACCURATELY and PRICISELY des-
cribed as COMMUNIST SYMPATHIZERS-Or worse! And according to this group of
no-goodniks, we are "billies and totalitarians", like "Stalin, Nitler and
the bloody Deng in China today"! What Rentschler & Kramer fail to tell you
is that those three aforementioned gentlemen also imposed "gun-control" on
their citizens prior to the sleughter! The North shore Freedom Committee
be extremely wary of the politicians and government officials
minals who who just barnen to own newspapers and radio stations who support those
suggests DON'T you TRUST THE AMERICAN CITIZENS WITH GUNSI And also of convicted cri-
efforts to disarm the public! In fact, the News-Voice has ceased to be a 'news
paper', and become a propeganda organ for the far-left. It no longer 'reports biased
the news', but now tries to make news: influence opinion by alanted and
editorial, cartoon and "news" stories. That's another reason we again call for
a complete BOYCOTT OF ALL NEWS-VOICE ADVERTISERS, they are supplying the fund-
ing for gangeter Rentachler and his scruffy lackeys to continue his attack of us. on
the U.S. Constitution. This group of elitiats know what's best for all
They that wrap doesn't apply to anyone who disagrees with them. TO them he're our
themselves in the flag of the First Amendment when their CIX is "black- gored,
mailers, but murderers, bullies". of course WB don't have a printing press.
work is done an & typewriter and printed on an office copier. W: have neither
the big bucks not the staff to match the REAL BULLIES in this altuation, Ren- in
techler and crew. Sort of a David and Gollath scenario. Rentschler lives
Most of our members week for a living and live under alightly less pretentious
what is best described as & mansion at 450 W. Deerpath Road in Lake Forest,
circumstances. News-Voice advertisers have been fully advised as to our in-
vertisers wiso are fully and completely supporting convict-Rentschler and his
tentions and reasons for this boycott. The accompanying list is of those ad-
far-left causes, and deserve our complete contempt, If YOU, a supposedly well
informed citizen, are willing and naive enough to buy the bill of goods this
of journalistic thugs and left-wing creeps is trying to shove down your be
gang throats, this "gun-ban" garbage, well, you'll eventually and ultimately
SENT BY:Mgt Advisoru Sus
: 8-10-89 12:21PM :
4348609-
5088964812:H 2
RLV
SENT BY:CORPORATE OFFICE
: 5-21-89 12:26PM ;
CHAIRMAN BILL'S LITTLE RED BOOK OF SUPPORTERS OF THE COMMUNIST PARTY, U.S.A.
These are legislation by advertising in the Highland would
the businesses that support the American Communist Party's Park plat-
form of gun-confiscation owned by convicted swindler, Bill Rentachler. We appreciate citizens.
News-Voice, of these businesses by all patriotic and sensible the U.S. con-
This is our the exercise of which Rentschler and his jounalistic to this
a complete boyeott constitutional right under the first amendment of bullies
have labeled us of his falony conviction and subsequent to
stitution, for 'zealote' and 'blacknailers'. Help us send a message imprisorment
gangster in & federal who, penitentiary, because can't legally own a gunl But he's trying take curs!
Deerfiald Federal Savings & Loan
745 Deerfield Rd.
Deerfield
866 Fair Oaks Ave.
Deerfield
Birgett Construction
184 S. Weukegan Rd.
Dearfield
Tire America
1020 Waukegen Rd.
Glenview
Dominick's
2503 Haukegan Rd.
Bannockburn
Deminick's
1822 Willow Rd.
Northfield
Dominick's
550 W. Dundee Rd.
Wheeling
Deminick's
2748 Greenbay Rd.
Evanston
Dominick's
llawthorne village
Varnon Hills
Daminick's
1001 Chicago Ave.
Evanston
Mauro Volkawagen
757 Deerfield Rd.
Dearfield
Patricia Wagner, AEA & EAI
4125 Dundee Rd.
Northbrook
Dominick's
490 Skokie Valley Rd. Highland Park
Gregory Dodge
1510 Old Dearfield Rd. Highland Park
Cover-Rite
1855 Dearfield Rd.
Highland Park
Flagship Audio & Video
223 Skokie Valley Rd. Highland Park
Helix Camera & Video
Northbrook shopping Ctr. Northbrook
Sunset Foods
825 S. Waukegan Rd.
Lake Forest
Sunset Foods
1812 Greenbay Rd.
Highland Park
Sunset foods
431 Temple Ave.
Highland Park
The Cabinet shop
484 Central
Highland Park
Body Potential Unitd.
1510 old Deerfield Rd. Highland Park
Mr. Crack Bent. Waterproofing
40 Skokie Vallay Rd.
Highland Park
Covers & Interiors
473 Roger Williams
Highland Park
Snuggle Down
1374 old Skokie Rd.
Highland Park
North Shore Bedding
445 Sheridan Rd.
Highwood
Guy Viti Insurance
Little Italy Restaurant
47 Highwood AV.
Highwood
424 N. Sharidan Rd.
Highwood
Bacio Inc.
2100 Half-Day Rd.
Bannockburn
Lake Forest/Bannokbrui, Pre-School
950 N. Western Av.
Lake Forest
Lake Forest Antique Consigrment
240 E. Dearpath Rd.
Lake Forest
Robertson's Tailor Shop
580 N. Westarn Ave.
Lake Forest
Paul T. Price & Son
211 S. Milwaukee
Libertyville
Libertyville Toyota
Prime Minister Restaurant
3355 N. Milwaukee
Narthbrook
3000 Dundee
Northlxook
Clear Reflections
820 Skokie Blvd.
Northbrook
Bruno's Upholatery
430 N. Milwaukee Ave.
Lincolnshire
Photo one
654 Milwaukee Ave,
Prospect Heights
The Cabinet People
9925 Gross Point Rd.
Skokie
Tower Garden Restaurant
9933 Lawler AV.
Skokie
B'Nai with Members Insurance
1120 Central AV.
Wilmette
House Doctor Remodeling Inc.
1141 Greenleaf AV.
Wilmette
Jeanette's
1116 Central Av.
wilmette
Caring Hands Massage Center
896 Greenbay Rd.
Winnetka
Caring Hands Massage Center
Bess Hardware & Sports Equipment
1875 Willow Rd.
Northfield
alphab.
THE SECRETARY OF TRANSPORTATION
WASHINGTON, D.C. 20590
December 13, 1989
His Excellency
Zhu Qizhen
Ambassador of the People's Republic of China
2300 Connecticut Avenue, N.W.
Washington, D.C. 20008
Dear Mr. Ambassador:
Many thanks for sending me the handsome calendar
of scenes from China.
I appreciate your thoughtfulness, and extend to
you my wishes for a happy holiday season.
With best regards,
Samuel Sincerely, K Skinner
Julie: Thank you nots for
ZHU QIZHEN beautifed calendar
( Chu Chi-chen ) of scenes china from
Ambassador Extraordinary & Plenipotentiary
of the People's Republic of China
to the United States of America
2300 Connecticut Avenue, N.W.
Tel: (202)328-2505
Washington, D.C. 20008
the of the Ambassador Julie: Avenue, United People's (Chu N.W. ZHU States Extraordinary of Thank & Republic Chi-chen of you QIZHEN
2300 Washington.D.C. Connecticut the 20008 America & Plenipa Chi
Tel: (202)328-
THE SECRETARY OF TRANSPORTATION
nayle
rilgn
11-25-89
of
to
D.C.
ustread Fridy Past Octeile
I only have 3 questions
1) do your sister available for Heytal +
2) where Oo you smeak off too?
3) what is you Reaction, l known thout it
who
THE SECRETARY OF TRANSPORTATION
Postage and Fees Paid
Department of
WASHINGTON, D.C. 20590
Transportation
DOT 518
U.S.MAIL
Mrs. J. Danforth Quayle
The White House
Washington, D.C. 20500
PERSONAL
THE SECRETARY OF TRANSPORTATION
Roger
11-9-89
What about Stene Seiler
ton St. Lonis. or Bill Ries?
you Doon Sen
THE SECRETARY OF TRANSPORTATION
Postage and Fees Paid
Department of
WASHINGTON, D.C. 20590
Transportation
DOT 518
U.S.MAIL
Mr. Roger A. Quick
Vice President
Korn/Ferry International
120 South Riverside Plaza
Chicago, IL 60606
KORN/FERRY INTERNATIONAL
Roger A. Quick
120 South Riverside Plaza
Vice President
Chicago, Illinois 60606
October 30, 1989
Honorable Samuel K. Skinner
Secretary of Transportation
Department of Transportation
400 7th Street, S.W.
Room 10-200
Washington, D.C. 20590
Sam:
I'm doing the search for the President/CEO of
Jewish Hospital in St. Louis. Great job ($250-300K
plus). The person does not have to be Jewish.
Any good names? Ideas? Have Susan call them
into me - or if you're not at a hurricane or
earthquake site, I always like talking to you. Many
days I wish you were still at Sidley -- and Char
could track you down for me in a couple of hours.
I miss that.
See you.
RAQ:kg
Rog
Enclosure
TRANSPORTATION OF
U.S.
89 NOV -3 AM 9:52
EXECUTIVE TRANSPORTATION 0
KORN/FERRY INTERNATIONAL
EXECUTIVE SEARCH
POSITION SPECIFICATION
TITLE:
President/Chief Executive Officer
COMPANY:
Jewish Hospital of St. Louis
LOCATION:
St. Louis, Missouri
ORGANIZATION:
The Jewish Hospital of St Louis is an
acute care, university affiliated, 500
bed (licensed for 628 beds) teaching
hospital located in the Central West End
of St. Louis City. The Hospital is
among the 10 largest acute care hospi-
tals in the State of Missouri. It
provides inpatient, outpatient, emer-
gency, home care and hospice services.
It is part of an academic health center
which includes Washington University
School of Medicine with which it is
affiliated, plus Barnes and St. Louis
Children's Hospitals.
The Hospital was founded in 1900, opened
its doors in 1902 and relocated to the
Washington University Medical Center
campus in 1927. It was reorganized in
1951 through a pro-forma decree of
merger involving four institutions. It
presently has voluntary, not-for-profit
status with an IRS 501 (c) 3 classifica-
tion. It has four subordinate corpora-
tions:
Jewish Hospital Care Corporation,
501 (c) 3 (d/b/a Vital Cardiac Labs)
Jewish Hospital Services
Corporation, for profit.
Jewish Hospital Health Plus,
501 (c) 3 (d/b/a/ ExtraCare)
KORN/FERRY INTERNATIONAL
Jewish Hospital
Position Specification
Page 2
Park-Med, 501 (c) 2
(D/B/A Jewish Hospital Medical
Offices)
Physician Services Ltd., for
profit.
The Hospital holds membership in the
Washington University Medical Center,
the Washington University Medical Center
Redevelopment Corporation and has close
working relationships with the Jewish
Hospital Auxiliary, the Associates in
Medicine of the Jewish Hospital and the
Jewish Hospital Medical Staff Associa-
tion.
Board of Directors
The Hospital is governed by a Board of
Directors consisting of 33 regular, 6
ex-officio, 8 life and 6 honorary
members. Officers of the Board include
a chairman, vice chairmen, secretary,
treasurer, and assistant secretaries and
assistant treasurers as may be needed.
Management
The management team includes a president
and 8 vice presidents. This group
includes an executive vice president who
oversees 3 operating vice presidents;
there are vice presidents for finance,
planning/marketing and nursing who
report to the president. Also reporting
to the president is In-house Legal
Counsel.
Patient Services
The Hospital's 500 operational beds are
distributed over the following inpatient
clinical services -- medicine, surgery,
obstetrics, rehabilitation medicine and
KORN/FERRY INTERNATIONAL
Jewish Hospital
Position Specification
Page 3
psychiatry. The medical and surgical
services offer all subspecialties except
for medical pediatrics and neurosurgery.
The Hospital had 18,200 inpatient
admissions in 1988 plus 2,142 newborn
infants and operated at 75% occupancy.
Increasingly, the Hospital has moved to
ambulatory care activities. The emer-
gency room in 1988 had approximately
26,000 visits; the indigent outpatient
clinic received 30,000 patient visits.
In addition, there were 70,000 private
outpatient visits of which 4,600 were
ambulatory surgery cases. Thus, during
1988, there were 126,000 patient en-
counters on an ambulatory basis.
The Hospital's Home Care and Hospice
Program, the oldest such established
program in St. Louis, had over 26,000
visits to patients' homes in 1988.
Professional Organization
The clinical departments are headed by
full-time physicians with academic
appointments at the Washington Univer-
sity School of Medicine. Professional
policy is coordinated through a medical
executive committee which consists of
the chiefs-of-staff and the president
and president-elect of the medical staff
association, president of the Hospital
and the vice president of nursing.
Medical Staff
The medical staff consists of 850
physicians, 120 of whom are full-time
faculty members based at and paid for by
the Jewish Hospital. The remaining 730
physicians are distributed among the
variety of staff categories including
attending, adjunct, consulting and
KORN/FERRY INTERNATIONAL
Jewish Hospital
Position Specification
Page 4
emeritus staffs. Approximately 200
medical staff members are responsible
for 95% of admissions, while 50
physicians are responsible for 50% of
all admissions. 78% of admissions are
made by physicians who are in the
private practice of medicine while 12%
are derived from full-time faculty; the
balance are admitted by the house staff
as service patients.
In addition to the medical staff, there
are another 170 physicians associated
with the Hospital in house officer
capacity including interns, residents
and fellows. Many of the residency
training programs have been merged with
the Washington University programs which
include Barnes and Children's Hospitals.
The free-standing residency programs at
Jewish Hospital include medicine,
surgery, physical medicine and rehabili-
tation and dentistry.
Human Resources
In addition to the medical staff there
are 3,250 Jewish Hospital employees
representing 2,750 full-time equivalent
positions. The Hospital is on of the 26
largest employers in St. Louis. Of the
employee group, 44% are health care
professionals, 6% are in management and
the balance are in clerical, service and
craft categories. Nearly one-half of
employees are between the ages of 21 and
30. Nearly 40% live within 5 miles of
the Hospital, 73% of employees are
female and 38% are minorities. The
Hospital has favorable fringe benefits
and assistance programs for employees,
has turnover of about 1.5% per month and
has active in-house educational programs
for both general education as well as
for in-service training. Payroll
constitutes 50% of the Hospital's
KORN/FERRY INTERNATIONAL
Jewish Hospital
Position Specification
Page 5
budget. Pay policies and practices are
aimed at keeping employees at the 75%
percentile of the St. Louis metropolitan
area. There are no labor unions.
Physical Plant
The Hospital consists of 14 buildings
located on 19 acres of land at 4 dif-
ferent sites within the Washington
University Medical Center location.
There is a parking garage at the
Hospital site for 1,000 cars (449,000
square feet). There are two remote
sites which contain another 1,000
vehicles. The Hospital has recently
completed an ambulatory care building
containing just over 100,000 square
feet.
The Hospital buildings are vertically
expansible by up to an additional one
million square feet.
Beds
The Hospital is licensed for 628 beds
but is presently operating 500 beds. A
renovation program is underway aimed at
creating more one bed rooms and adding
shower facilities to as many rooms as
possible. Crowded two bed rooms are
being changed to single bed rooms on a
planned basis.
Purchasers of Care
Traditionally, patients were referred to
Jewish Hospital entirely by its medical
staff. Patients paid for their care
through Medicare (54%), Blue Cross
(18%), private insurance companies
(18%), and self pay (10%) Within the
past 3 years, much of this has changed
with the entrance of health maintenance
KORN/FERRY INTERNATIONAL
Jewish Hospital
Position Specification
Page 6
organizations (HMOs) and preferred
provider organizations (PPOs) on the
health care scene.
The Jewish Hospital is a participant in
some of these programs including: Blue
Cross Alliance Program, Healthcare
Network, Sanus, MetElect, Ravelers,
Admar, Cigna, New York Life, Partners
and PHP. These organizations now pay
for about 40% of non-Medicare patient
care delivery at Jewish Hospital. The
programs are growing rapidly.
Finance
The Hospital has gross revenues of
nearly $140 million per year with
deductions from revenue for various
contractual allowances, bad debt and
charity care of about $13 million per
year for a net revenue of $127 million
per year, resulting in bottom line
expectations of $5 million per year or a
4% margin of income over expense.
The Hospital's general fund assets are
$200 million. In addition, there are
special purpose and endowment funds
totalling $35 million with endowment
fund receivables totalling another $20
million.
Research
Jewish Hospital is somewhat unique in
having an independent research program.
Most teaching hospitals are clinical
centers with investigators falling under
the purview of the medical school.
The Hospital presently has 65,000 square
feet of wet laboratory space including
animal facilities. There are more than
250 employees in the research enter-
prise. The research budget now is about
KORN/FERRY INTERNATIONAL
Jewish Hospital
Position Specification
Page 7
$15 million with about $1.5 million of
this figure derived from hospital
endowments; the balance is from govern-
ment and foundation grants.
REPORTING
RELATIONSHIP:
The President/CEO shall be responsible
to the Board of Directors through its
chairman and shall be given the neces-
sary authority and responsibility to
operate the Hospital and all its
activities and departments subject only
to such policies as my be issued by the
Board of Directors. He/she shall act as
the duly authorized representative of
the Board of Directors and all matters
in which the Board has not formally
designated some other person to so act.
A variety of line and staff management
positions report directly to the
President/CEO.
POSITION
SUMMARY:
The President/CEO of the Jewish Hospital
is responsible for the provision of
leadership necessary to implement the
Directors policies and programs of the
Hospital Board. Additionally, by
his/her leadership the President/CEO
will help the Jewish Hospital maintain
its independence and identity within the
Washington University Medical Center
while recognizing the inter-dependence
of teaching, research, and patient care
programs. Furthermore the President/CEO
will serve as representative of the
Jewish Hospital within the Medical
Center and externally with other publics
and organizations.
SPECIFIC
KORN/FERRY INTERNATIONAL
Jewish Hospital
Position Specification
Page 8
RESPONSIBILITIES:
The specific responsibilities of the
President/CEO will include but not be
limited to the following:
Implements the Mandate and Direction of
the Hospital Board.
1. Implements the mission, objectives,
policies, standards and plans
established by the Hospital Board.
2. Reports progress and problems to
the Board.
3. Ensures that the Hospital strategic
plan is reviewed and recommended
changes are conveyed to the
Hospital Board for approval, that
resources are allocated in a manner
to implement an approved plan, and
that the plan is periodically
reviewed and modified as needed.
4. The Hospital Board is updating the
mission statement for the Hospital.
The new statement will emphasize
clinical care while maintaining a
strong commitment to research and
education. The Hospital should
annually review this mission
statement and reaffirm its commit-
ment to the specific goals
expressed.
5. Develop long and short range
policies, programs, and financial
plans for consideration by the
Board.
6. Communication of Board approved
programs and policies to employees,
medical staff and the community.
7. Serves as an ex-officio member of
the Board of Directors and its
committees and the provision of
KORN/FERRY INTERNATIONAL
Jewish Hospital
Position Specification
Page 9
administrative staff assistance to
work on committees.
8.
Put preparation and submission of
regular reports to the Board and
its committees reflecting the
performance of the Hospital.
Maintenance of Effective Relations
Within the Washington University Medical
Center.
1.
Represents the Jewish Hospital in
relationship to the CEOs of the
other institutions within the
Washington University Medical
Center.
2. Maintains liaison with the dean of
the School of Medicine with regard
to teaching programs at the Jewish
Hospital and within the Medical
Center.
3.
Maintains liaison with the CEOs of
the Barnes and Children's Hospitals
to ensure smooth working relation-
ships.
4.
Delegates to other senior staff
liaison relationship responsibility
within the Medical Center represen-
tation on standing or ad hoc
committees.
Effective Maintenance of Relations With
External Groups Which Includes the
Recommendation of Advocacy Positions on
Issues Important to the Jewish Hospital.
1. Church agencies and individuals.
2. Civic communities served by the
Jewish Hospital.
KORN/FERRY INTERNATIONAL
Jewish Hospital
Position Specification
Page 10
3. Local, state and national govern-
ment agencies.
4. Regulatory and accreditation
agencies.
5.
Professional organizations.
PROFILE:
Personal Attributes
1.
Must have a personal identity with
the mission and values of the
Jewish Hospital. Must be comfort-
able in working with and in relat-
ing to a religiously sponsored
hospital on a daily basis.
2. Must possess maturity, judgment,
intellect, sense of humor, and
unquestionable integrity.
3. Must have a style which conveys
confidence, encourages collegiality
and communication, is open, un-
assuming, direct and noncontrol-
ling.
4. Must possess social and political
skills in representing the Hospital
to the public and within the
Washington University Medical
Center.
5.
Must be a person of high intel-
ligence and high energy level.
6. Must possess business management
skills and thrive in a high pres-
sure environment.
Knowledge
1.
Broad knowledge of the health care
industry, its trends and contem-
KORN/FERRY INTERNATIONAL
Jewish Hospital
Position Specification
Page 11
porary issues, at the local, state
and national levels.
2.
General knowledge and acceptance of
Jewish health care, its mission,
structure, style and subtleties of
operation would be helpful.
3. A graduate degree in an appropriate
area of study is recommended.
Skills
1.
Demonstrated skills in managing an
organization with multiple con-
stituencies, where collaboration is
vital and process is important.
2. Demonstrated skills in organiza-
tional development, recruiting,
motivating and rewarding employees.
Encouraging an environment that
encompasses freedom, innovation,
flexibility, initiative and compas-
sion.
3. Demonstrated business skills to be
able to lead a large complex
organization. Must be able to deal
with the patient care, research,
and teaching goals of the Hospital
and the sometimes conflicting
requirements of maintaining a
healthy financial condition.
4. Demonstrated skills in consensus
building in an environment of
diverse opinions.
Experience
1. Experience in the health care
industry is important. Specific
experience in hospitals or related
organizations would be an asset but
not essential.
KORN/FERRY INTERNATIONAL
Jewish Hospital
Position Specification
Page 12
2. Experience in leading a diverse
organization operating in complex
markets characterized by competi-
tion and managed care based on a
well developed strategic plan will
be essential.
3.
Experience in a large teaching or
university hospital would be
desirable and knowledge of inter-
relationships within a university
medical center will be essential.
4. Experience in corporate development
related to growth of the organiza-
tion through affiliations, mergers,
etc. would be desirable.
5. Experience in communicating at all
levels to small and large groups
both formerly and informerly will
be important.
6.
Experience in dealing with social
and political leaders will be
essential.
COMPENSATION:
A compensation package including base
salary, incentive awards and benefits
will be developed.
PROCEDURE FOR
CANDIDACY:
Send resumes or nominations as soon as
possible to:
Roger A. Quick
Vice President/Partner
Health Care Division
Korn/Ferry International
120 South Riverside, Suite 918
Chicago, Illinois 60606
(312) 726-1841
KORN/FERRY INTERNATIONAL
alphab.
THE SECRETARY OF TRANSPORTATION
Mr. Vice President 10-12-89
faird le picture where you
6000 P.R. on finaly l
the togh and I am Dmily far
(kincl of-)
THE SECRETARY OF TRANSPORTATION
Postage and Fees Paid
Department of
WASHINGTON, D.C. 20590
Transportation
DOT 518
U.S.MAIL
The Vice President
United States Senate
Washington, D.C.
20510
Quick stop for Quayle
Times photo by MICHAEL DINNEEN
Vice President Quayle, left, discusses the oil spill in Anchorage Monday as Transportation Secretary Samuel Skinner looks on.
Quayle says spill will be cleaned
By DANIEL R. SADDLER
shorter than his first Alaska trip, when he
vice president on the status of the cleanup
Times Writer
spent a day talking with governmental offi-
in meetings at Elmendorf's Alaska Com-
Vice President Dan Quayle Monday said
cials and picking his way over an oiled
mand headquarters building.
Exxon will return next spring to continue
beach at Prince William Sound's Smith Is-
Later, the mayors of Valdez, Cordova,
cleaning up the Exxon Valdez oil spill, or
land May 4.
Kodiak and the Kenai Peninsula Borough
the federal government will do it and send
He said he was not surprised to learn
met with Qualye at the base airport VIP
Exxon the bill.
that the beach was still oiled despite four
lounge, in his third meeting to date with the
"The oil spill has not been cleaned up,"
months of effort by Exxon, but expressed
"oiled mayors."
he said. "We are committed to making
confidence the company would resume
"There's no better conduit for informa-
sure that the oil spill be cleaned up
We
cleanup next spring.
tion on the grass-roots situation than the
are here to see that the job is completed,
"Exxon has said that it will come back,
mayors," said Kodiak Mayor Robert Bro-
and the job is not completed."
and we take Exxon at its word," he said.
die, who said the local leaders told Quayle
The vice president made a two-hour re-
"They'll be there. If they're not, then we'll
of the human impact of the spill.
fueling stop at Elmendorf Air Force Base,
do it for them and send them the bill."
Though some fishermen are banking
on his way to begin a 10-day trade visit to
Federal officials including Secretary of
huge profits from working the cleanup, oth-
South Korea, Japan, the Philippines and
Transportation Samuel Skinner, Coast
ers made much less by sticking to their
Malaysia.
Guard Commandant Paul Yost and Coast
nets, Brodie said.
Quayle's visit to Anchorage was even
Guard Adm. Clyde Robbins briefed the
See Quayle, page A-8
Quayle:
Oil spill
Continued from page A-1
'Exxon has said that
"It's comforting to know that
it will come back,
the vice president knows the oil
spill cleanup isn't finished," said
and we take Exxon
Cordova Mayor Erling Johansen.
He hopes federal or state grants
at its word. They'll
will provide mental health aid to
be here. If they're
ease tensions among Cordovans,
and bolster neglected city ser-
not, then we'll do it
vices.
Quayle also met with repre-
for them and send
sentatives from the fishermen's
them the bill.'
cooperatives and from the sea-
food industry, who told him of
-Vice President
their reaction to the spill and its
cleanup and of their opposition to
Dan Quayle
high seas drift netting.
At the first stop of his trip, in
South Korea, Quayle will encour-
the start of typically foul winter
age the government there to sign
weather.
the recently negotiated treaty to
Quayle couldn't say if Bush
monitor and regulate that na-
would make good on his inten-
tion's squid drift-net fishing fleet,
tions to visit the spill sites later,
he said. Japan and Taiwan have
but said the president was inter-
already signed such agreements.
ested, involved and committed to
Sens. Frank Murkowski and
maintaining a federal presence
Ted Stevens have called for total
until the cleanup was completed.
bans on use of the nets, which
Quayle will relay his findings to
are criticized for their alleged
Bush on his return from Asia.
use in high seas salmon poaching
On that trip, Quayle will push
and for their indiscriminate har-
Japan and South Korea for less
vest of marine mammals and
protectionist trade policies. He
birds.
also will encourage Japan to in-
The fishermen and processors
crease its economic aid to under-
repeated that call in their meet-
developed democracies in Asia,
ings with the vice president.
said Dave Beckwith, Quayle's
While Quayle said he would con-
press secretary.
centrate on getting Korea to sign
the current agreement first, he
In South Korea, where Presi-
didn't reject the idea of a total
dent Roe Tae Woo is cracking
ban.
down on dissent, opposition
"This is a good first step for-
leader Kim Dae Jung is under in-
ward to getting regulation of the
dictment for alleged national se-
drift-net fishing," he said.
curity violations. Quayle will
"There may be a need to go
meet with Woo and members of
beyond it (the treaty), but let us
his cabinet, and with four opposi-
get on with getting transponders
tion leaders, to talk about human
on the ships so we have a better
rights.
understanding of what's going
"It's a common theme of the
on."
vice president when he travels
President George Bush in Au-
throughout the world to try to
gust scratched plans to visit
make sure democracy and
Alaska in September, as Exxon
human rights are pushed for-
wound down its summer cleanup
ward on the agenda," Beckwith
of the seas and beaches before
said.
THE SECRETARY OF TRANSPORTATION
Marilyn
10-18-89
"News" night out 0 Time
l Knew it first on the
way to alodka. Looking Good
San
BY PAMELA LANSDEN
Police Action: Sting, below,
has two roles in The Threepen-
ny Opera the musical revival
now playing at Washington's
Kennedy Center before mov-
ing to Broadway Oct. 19. He's
CAN WE SHOP?
acting Mack the Knife onstage,
What's a smart shopper to
but offstage he is one of the
do when she makes the cov-
show's Actors' Equity depu-
RALPH DOMINGUEZ/GLOBE PHOTOS
er of a Bloomingdale's mail-
ties. He makes sure hours and
er but is provided with
working conditions meet union
rules.
clothes for her new syndi-
cated TV talk show by an-
other store, Barneys? That's
the dilemma facing Joan
Rivers, whose eponymous
new show has been airing
on 137 stations. Joan not
only is on the front of Bloo-
mie's "B'way" catalog but
inside she advises: "Rules
SMEAL/GALELLA LTD.
one to five, get yourself
a great plastic surgeon.
Rule six, take good care of
©NANCY / ELLISON/ONYX
what he does to you." Bar-
ney's, which donates Ri-
John F. Kennedy Jr. is Mr. Popular, keeping com-
vers's wardrobe for a show
Un-Common: A New York
pany with Daryl Hannah, top, and Madonna.
credit, shrugs off Joan's
judge ruled that William Hurt
two-timing. "She comes
and Sandra Jennings never
had a common-law marriage,
WHATEVER MADONNA WANTS
York loft. Madonna wanted
meaning Jennings can't sue the
...
actor for spousal support.
Twenty-seven years ago,
to interest dealers and col-
Marilyn Monroe sang to
lectors in 28-year-old Chris-
Blind Ambition: Victoria
President John F. Kennedy,
topher's paintings. Just like
and now Marilyn's look-
his sister's videos, Christo-
imagery, including repre-
DONALD SANDERS/GLOBE PHOTOS
Principal has gone that extra
mile in playing a blind woman
alike, Madonna, seems to be
pher's oils depict religious
in ABC's TV movie, Blind Rage,
due later this season. "I didn't
following suit, cooing into
want to play this part looking
the ear of that handsome
sentations of the Bible's Ma-
like someone pretending to be
young assistant district at-
donna. Onlookers say Ma-
blind," she says. So she went
torney, John Jr. On Sept. 30,
donna spent most of the
to the optometrist and got con-
Madonna brought JFK Jr.
party cozying up to John,
with Spike [her dog] almost
tact lenses that make her legal-
as her date to a party she
but that he left alone after-
weekly and shops with us.
ly blind for the shoot. "If
threw for art world types at
ward to dine with Daryl
We don't have an exclusive
someone is standing at arm's
length, I can tell there's a mass
younger brother Christopher
Hannah, with whom he has
deal with her," says a Bar-
in front of me, but I can't tell
Ciccone's downtown New
been seen before.
neys rep.
whether it's a man or woman
until they speak," she says.
READ MY FLIPS
wonderful,' says spokes-
Second Lady Marilyn
woman Denise Balzano. Bal-
Quayle's seemingly inde-
zano won't reveal the hair-
structible hairstyle has been
dresser who has worked this
undergoing a quiet melt-
magic, but she admits that
down since the inaugura-
Quayle's curls are not natu-
tion. A kinder and gentler
HARRY POST
ral. "She's got beautiful,
"do," right, has replaced
thick hair, but it's a perm."
Marilyn's antiquated flip, a
And what does Vice Presi-
style that enjoyed its heyday
just thought it was a good
dent Dan Quayle think of his
in the mid-'60s. Her new
time to try something new.
wife's curls? "He always
hairdo is long, with soft
Everybody who's seen her
thinks she looks wonder-
CAPITAL CITIES/ABC
curls framing her face. "She
says, 'Boy, she just looks
ful," says Balzano.
35
THE SECRETARY OF TRANSPORTATION
WASHINGTON, D.C. 20590
August 7, 1989
Dear Mr. Vice President:
The golf on Friday was great. Many thanks for
including Warren Dean and me in a terrific
afternoon. Enclosed is my check to reimburse
you.
Thanks again.
Sincerely,
Samuel K. Skinner
The Vice President
The White House
Washington, D.C. 20500
5259
SAMUEL K. SKINNER
ONE FIRST NATIONAL PLAZA
CHICAGO, ILL. 60603
7 August 1989
2-340/710
PAY TO THE
ORDER OF
J. Danforth Quayle
$ 115.00
WALLET
DELUXE
One Hundred Fifteen and 00/100
DOLLARS
Amalgamated
Savings Trust & Bank
CHICAGO, ILLINOIS 60603
MEMO Guest/cart fee
Samul K Skinna
⑆071003405⑆ ⑈519719100⑈ 5259
alphabetical
THE SECRETARY OF TRANSPORTATION
Rojer
8-16-89
Congralulations on your new
Dah you will do great
and love it 60 well. of l
can help, let me Knew. San
THE SECRETARY OF TRANSPORTATION
Postage and Fees Paid
Department of
WASHINGTON, D.C. 20590
Transportation
DOT 518
U.S.MAIL
Mr. Roger A. Quick
25 Princeton Rd.
Hindsdale, IL 60521
Roger A. Quick
PERSONAL & CONFIDENTIAL
August 7, 1989
Sam Skinner
Secretary
Department of Transportation
Washington, D. C.
Dear Sam:
The trip to California went OK.
I'd really appreciate your looking
over this. I know you're very busy,
but I'd feel better if you had seen it.
For me, this is a big, and difficult,
decision.
The only thing that we haven't agreed
upon so far is a second year guaranteed
bonus. I want some protection after the
first year. To tell you the truth, I
think they are going to agree; if they
don't, it's probably a "deal-breaker" for
me.
I feel terrible asking you to look at
this, but I've always said if I ever got
in trouble, you'd be the first guy I'd call.
Is there someone at Sidley (or somewhere
else) that I should have look at this care-
fully? It's pretty standard from their view-
point.
Thanks.
Sincerely,
Roge
KORN/FERRY INTERNATIONAL
COPY
August 3, 1989
CONFIDENTIAL
Mr. Roger A. Quick
25 Princeton Road
Hindsdale, Illinois 60521
Dear Mr. Quick:
We are delighted to extend to you this offer of
employment with Korn/Ferry International as a Vice President,
effective September 5, 1989.
As a Vice President of the firm, specializing in the
health care industry, you will be located in our Chicago office
reporting to me in my role as Managing Director of the Central
Region. You will also work closely with Jim Heuerman, who serves
as the National Practice Leader for the Health Care Specialty
Practice. You will have business development responsibility as
well as executive search execution duties. It is our plan to have
you focus your business development efforts throughout the Central
Region to leverage your expertise in the health care industry and
your relationship with key decision makers. Working with Jim, Joe
and me, we believe that you can make a substantive contribution to
the future growth of our health care practice.
Compensation
Your entry compensation program will be comprised of a
monthly base salary of $10,000.00, payable in semi-monthly
increments. In addition, you will be eligible for an annual
incentive bonus based primarily on your performance in the areas
of meeting placement standards, individual business development,
engagement management, quality of performance, and the overall
profitability of the firm. Professional bonuses are payable at
the end of the firm's fiscal year on April 30 and are contingent
on your active employment as of that date. Please review
Korn/Ferry's current bonus award ranges and criteria set forth in
the plan description and administrative guide attached to this
letter.
1800 Century Park East Los Angeles. California 90067 (213) 879-1834 telex 691388 FAX (213)553-6452
WASHINGTON DC
NEW YORK
LOS ANGELES
ATLANTA
BOSTON
CHICAGO
CLEVELAND
DALLAS
DENVER
HOUSTON
MINNEAPOLIS
NEWPORT BEACH
PALO ALTO
SAN FRANCISCO
SEATTLE
STAMFORD
AMSTERDAM
BRUSSELS
CARACAS
FRANKFURT
GENEVA
GUADALAJARA
HONG KONG
KUALA LUMPUR
LONDON
MADRID
MEXICO CITY
MELBOURNE
MONTERREY
PARIS
RIO DEJANEIRO
SÃO PAULO
SINGAPORE
SYDNEY
TOKYO
TORONTO
ZURICH
Mr. Roger A. Quick
August 3, 1989
Page 2
The firm has agreed to pay you a guaranteed bonus of
$30,000.00 for your first twelve (12) months of employment with
the firm. This bonus will be paid to you in semi-monthly
increments of $1,250.00. These payments will be contingent upon
your continued active employment. You will, of course, also be
considered for additional bonus compensation beyond this
guarantee, should your performance so warrant consistant with the
firm's bonus program.
Employee Benefits
As a Vice President, you will be entitled to nine
holidays per year, fifteen days vacation, and fifteen days sick
leave. You will also be enrolled in the firm's group insurance
program, which includes life, accidental death and dismemberment,
and health benefits. Life insurance coverage will be three times
your base salary up to a maximum of $150,000. You may also enroll
for supplemental, employee- paid life insurance coverage for two
times your base salary to a maximum of $100,000. If you elect
this coverage, you will pay the premium cost through payroll
deductions. Your enrollment for life insurance benefits will take
effect 60 days after your first day of employment.
You will also participate in the firm's health benefits
plan. The cost of this coverage for you is fully paid by the
firm. If you choose to also cover your dependents, the cost is
partially paid by the firm and the remainder (currently $60.00 -
$100.00 per month, based on the number of dependents covered) is
paid by you through payroll deduction. Your enrollment for
medical benefits will take effect 60 days after your first day of
employment; enrollment for dental benefits will take effect 90
days following your first day of employment.
In addition, you may enroll in the firm's group
long-term disability insurance program which provides disability
benefits of 60 percent of your monthly base salary to a maximum of
$10,000.00 per month. The monthly premiums for this benefit are
based on your salary. If you elect this benefit, the firm will
pay 75 percent of the premium and you will pay the remaining 25
percent through a payroll deduction. Your enrollment for
long-term disability benefits would take effect 60 days after your
first day of employment.
As a Vice President, the firm will also provide you
$250,000 in travel accident insurance. You may also enroll in the
firm's family travel accident insurance program which provides
24-hour coverage to your dependents for travel accidents. If you
elect this benefit, you will pay the premium cost through a
payroll deduction.
Mr. Roger A. Quick
August 3, 1989
Page 3
Once your employment tenure has satisfied the one year
eligibility requirement, you may participate in the following
retirement programs. You will be enrolled in the Korn/Ferry
International Retirement Plan which is a qualified profit sharing
plan, funded through employer contributions. You may also enroll
in the Korn/Ferry Employee Tax Deferred Savings Plan. This is a
qualified 401 (k) plan, which allows tax-deferred employee
contributions and employer matching contributions.
You will receive a complete benefits package with
enrollment forms and plan descriptions upon your acceptance of
this offer of employment.
Partner Benefits
In December, you may be given an opportunity to enroll
in the Executive Benefit and Wealth Accumulation Plan. This
partner benefit is a deferred compensation plan that provides
retirement, survivor, and disability benefits.
After completing one year of employment, you may also
participate in the College Tuition Program. This partner benefit
provides $1,000 per year up to a maximum of $4,000 for each
dependent child enrolled as an undergraduate in an accredited
college or university.
As a Vice President, you will also receive $350 per
month as an automobile allowance. The firm will also reimburse
you for your monthly dues as a member of the Mid-America Club of
Chicago.
Professional Requirements
As a part of our standard employment practices for Vice
Presidents, you may now or at a later date be asked to sign an
employment agreement with Korn/Ferry. A copy of the firm's
standard Partner Employment Agreement is attached for your review.
By accepting this offer, you are affirming that you will execute
this employment agreement without modification upon the firm's
request.
As a part of your employment by Korn/Ferry, we also ask
that you provide a detailed description of your job history and
educational background. A form for this purpose is attached. The
information you provide concerning past employment and educational
history will be verified by the firm. Your employment is
contingent on the accuracy of the information you provide.
Mr. Roger A. Quick
August 3, 1989
Page 4
Further, all Korn/Ferry professional employees are
required to review and acknowledge the firm's Code of Business
Conduct, which governs all aspects of our professional practice.
A copy of the Code is attached. Your employment is contingent on
your abiding by the provisions of this Code. Please review it
carefully and return the signed acknowledgement form with your
acceptance of this offer. Please keep the Code itself for your
personal files.
Business Information and Non-Competition
Please review the following clauses with care. In
accepting this offer of employment with Korn/Ferry, you are making
a personal commitment to adhere to the provisions set forth below.
In consideration of your employment by Korn/Ferry
International, you agree that during the term of your employment,
except as necessary to carry on the business of the Corporation,
and after the expiration of your employment, you shall not,
directly or indirectly, use or disclose to any person, firm, or
corporation, any candidate list, personal histories or resumes,
employment information, business information, customer lists,
business secrets or any other information not generally known in
the industry concerning business or policies of the firm,
including, but not limited to the firm's list of clients or
placement candidates.
You further agree that during the term of your
employment, and for the two year period immediately subsequent to
the expiration of your employment, you will not directly or
indirectly (as owner, principal, agent, partner, officer,
employee, independent contractor, consultant, stockholder or
otherwise) (1) solicit or accept any executive search assignment
from, or otherwise attempt to provide services then provided by
the firm to, any existing client of the firm or its subsidiaries
or affiliates or any person who has been a client of the firm or
its subsidiaries or affiliates during the preceding two years, (2)
solicit for employment or otherwise attempt to engage the services
of any employee of the firm or its subsidiaries or affiliates.
The term "client" as used in this clause shall mean only clients
as to which you, at any time during the three years preceding
termination of employment, contacted or engaged in activities on
behalf of the firm.
Mr. Roger A. Quick
August 3, 1989
Page 5
Acceptance of Employment
Upon your acceptance of this offer of employment, please
acknowledge your agreement with the terms set forth in this letter
by signing in the designated space below. A copy of this letter
is enclosed for your records.
Please also complete and sign the enclosed documents and
return them to me with your signed letter:
- Job History & Education Form
- Code of Business Conduct: Acknowledgement Form
- Personnel Information Form: Professional (Section A)
- W-4 form
- Employee Authorization for Automatic Deposits Form
- I-9 form
I look forward to your joining us and to your success
with Korn/Ferry International. If you have any questions, please
don't hesitate to call me.
Sincerely,
Gary Silverman
Senior Officer
ACCEPTED:
Signature
Date:
CC: R. Slater
J. Heuerman
COPY
KORN/FERRY EMPLOYMENT CONTRACT
AGREEMENT dated SAMPLE , by and between
KORN/FERRY INTERNATIONAL, a California corporation,
(hereinafter called the "Corporation") and
SAMPLE
(hereinafter called the
"Executive").
WITNESSETH:
In consideration of the mutual covenants contained
herein, the parties agree as follows:
FIRST:
The Corporation agrees to employ the
Executive and the Executive agrees to serve the Corporation,
and any subsidiary SAMPLE or affiliate of the Corporation, in the
capacity of
,
for the term of this
agreement.
SECOND: The initial term of the Executive's
employment under this agreement shall be for the period
commencing on
, and expiring on
,
(unless sooner terminated as
provided in this agreement) and thereafter Executive's
employment hereunder shall automatically continue year to year
for further successive terms of one year each (each ending on
1
the next April 30th, each such year being referred to as an
"extended year"), unless at least thirty (30) days prior to the
end of the initial term or the theh current extended year, as
the case may be, either party does not wish the employment of
Executive under this agreement to be continued beyond the end
of the initial term or then current extended year, as the case
may be, in which event Executive's employment shall terminate
at the end of such initial term or then current extended year.
THIRD:
(A) The Executive shall devote his full
time and efforts to the business and affairs of the
Corporation, its subsidiaries and affiliates and shall use his
best efforts to promote the interests thereof. During the term
of this agreement, the Executive shall not engage in any other
business or business activity whether or not such business
activity is pursued for gain, profit or other pecuniary
advantage; provided, however, that the Executive shall not be
prevented from investing his assets in such form or manner as
will not require any substantial amount of time or services on
the part of the Executive in the operation of the affairs of
the enterprises in which such investments are made.
(B) The Executive agrees to hold such
offices in the Corporation and/or any subsidiary or affiliate
of the Corporation to which, from time to time, he may be
elected or appointed, without additional compensation. The
Executive shall render such services to the Corporation and/or
to any and all subsidiaries and affiliates of the Corporation
at such times and at such places as shall from time to time be
2
designated by the Board of Directors and/or the President of
the Corporation.
(C) It is contemplated that the Executive
shall perform his duties in such places as may be required.
The Executive may be obliged, from time to time, and for
reasonable periods of time, to travel in the performance of his
duties. In such cases, the Corporation shall pay or reimburse
the Executive for all reasonable travel and other expenses
incurred by him in connection with the performance of his
services under this agreement, upon presentation of expense
statements or vouchers and such other supporting information as
it may from time to time request; provided, however, that the
amount available for such travel and other expenses may be
fixed in advance by the President.
FOURTH: (A) The Corporation shall compensate the
Executive for the services to be rendered by the Executive
hereunder, including all services, if any, to be rendered as an
officer and/or Director of the Corporation and/or any
subsidiary or affiliate of the Corporation. During the initial
term of the Executive's employment hereunder, such compensation
shall be at the rate of $
SAMPLE
per annum;
during an extended year of the Executive's employment
hereunder, such compensation shall be at the same rate per
annum as was in effect during the prior extended year (or
during the initial term in the case of the first such extended
year). Corporation may, in its sole discretion, but shall not
be obligated to increase Executive's rate of compensation in
3
the course of Corporation's annual compensation review or
otherwise by written agreement with Executive. The applicable
compensation for the initial term and for each extended year
(if any) shall be paid in equal (semi-) monthly installments.
(B) The Executive shall, in addition to
his salary, be eligible to receive an annual bonus as may be
approved by the Board of Directors, less income tax withholding
and other customary employee deductions. In the event of
termination of the Executive's employment under this Agreement,
he shall be entitled only to such payment of the bonus as was
approved by or pursuant to authority from the Board of
Directors as of the date of termination.
(C) The Executive shall be eligible to
participate in any group insurance, deferred compensation or
other plan or program adopted by the Corporation for the
benefit of its executive employees of similar stature of the
Executive in accordance with the provisions of the respective
plan or plans.
(D) The Executive shall be entitled to
SAMPLE
(
) days annual vacation, exclusive of
sick leave and holidays recognized by the Corporation, which
may be taken at such times as are consistent with good business
practices.
FIFTH:
(A) The Executive acknowledges that (i) he
holds a senior management position with the Corporation, (ii)
in such capacity he is responsible for carrying out procedures
and methods by which the Corporation develops and conducts its
4
business, (iii) he has access to the Corporation's clients,
channels for developing clients and recruiting executives for
employment, and other confidential information of the
Corporation, (iv) he has direct substantial responsibility to
maintain the Corporation's business relationship with clients
of the Corporation whose affairs he handles, (v) it would be
unfair to the Corporation if the Executive were to appropriate
to himself or others the benefits of the Corporation's many
years of developing such business relationships, especially
when the Executive enjoys a relationship with a client of the
Corporation as a result of his being introduced to the client's
personnel as the representative of the Corporation, (vi) it
would be unfair to the Corporation if the Executive were to
appropriate to himself or others the benefits of the business,
personnel and other confidential information which the
Corporation has developed in the conduct of its business and
(vii) it is therefore fair that reasonable restrictions should
be placed on certain activities of the Executive after his
employment with the Corporation terminates.
(B) The Executive agrees during his term
of employment, except as necessary to carry on the business of
the Corporation, and after the expiration of his employment,
that he shall not, directly or indirectly, use or disclose to
any person, firm or corporation, any candidate list, personal
histories or resumes, employment information, business
information, customer lists, business secrets, or any other
information not generally known in the industry concerning the
5
business or policies of the Corporation, including, but not
limited to, the Corporation's list of clients or placement
candidates.
(C) The Executive agrees that during the
term of his employment hereunder, and for the two year period
immediately subsequent to the expiration of his employment, he
will not directly or indirectly (as owner, principal, agent,
partner, officer, employee, independent contractor, consultant,
stockholder or otherwise), (i) solicit or accept any executive
search or placement assignment from, or otherwise attempt to
provide services then provided by the Corporation to, any
existing client of the Corporation or its subsidiaries or
affiliates or any person who has been a client of the
Corporation or its subsidiaries or affiliates during the
preceding two years, (ii) solicit for employment or otherwise
attempt to engage the services of any employee of the
Corporation or its subsidiaries or affiliates. The term
"client" as used in clause (C) (i) hereof shall mean only
clients as to which the Executive, at any time during the three
years preceding his termination of employment, contacted or
engaged in activities on behalf of the Corporation.
(D) Nothing herein shall be deemed to
prevent the Executive after termination of his employment, from
engaging in business competitive to that of the Corporation
provided the Executive does SO without violating the above
provisions which, among other matters, prohibit the Executive's
utilizing the Corporation's confidential records, soliciting
6
the Corporation's employees and soliciting the Corporation's
clients as defined in clause (C) (i) hereof.
(E) The Executive recognizes and
acknowledges that any breach of the foregoing subparagraphs
FIFTH (B) and (C) would result in immeasurable and irreparable
harm to the Corporation, and accordingly, agrees that in
addition to, and not in lieu of, all other remedies available
to the Corporation by reason of such breach, the Corporation
shall be entitled to temporary and permanent injunctive relief
to prevent the occurrence or continuation thereof.
SIXTH:
(A) The Executive's employment under this
agreement shall terminate upon the first to happen or occur of
any of the following events or conditions:
(1)
the death of the Executive;
(2)
the permanent disability of the Executive; or
(3)
the Corporation's election to terminate the
employment of the Executive upon notice to him if:
(a)
the Executive shall by reason
of illness, physical or mental
disability or other incapacity, fail to
render the services provided for by
this agreement for a period of sixty
(60) consecutive days or for
nonconsecutive periods aggregating more
than one hundred twenty (120) days
within any six month period, exclusive
of Saturdays, Sundays, holidays or days
7
on which the Executive was on vacation,
provided, however, that the Corporation
shall have given the Executive such
notice during his absence; or
(b)
in the opinion of the Board of
Directors of the Corporation, or a
committee thereof, the Executive has
breached any statutory or common law
duty of loyalty to the Corporation, or
has neglected those duties in such a
manner as to meet reasonable standards
of performance established by the Board
of Directors or a committee thereof.
(B) SAMPLE shall cease to accrue
upon termination of the Executive's employment.
(C) The Executive's employment hereunder
may be terminated with cause by the Corporation in the event
the Executive shall commit any act of fraud against the
Corporation, or any criminal act. Any such act shall be deemed
to be a breach of this agreement by the Executive.
SEVENTH:
In the event that the Executive is
unable, for any reason to perform the duties required of him
under this agreement for a period of thirty (30) consecutive
days, the Corporation shall have the right at its option to
suspend payment of all forms of compensation provided for in
paragraph FOURTH hereof from and after the expiration of such
thirty (30) day period. Any such suspension shall not extend
8
the term of employment hereunder nor shall the Executive be
entitled to retroactive compensation for the period of such
suspension.
EIGHTH:
All notices, requests, demands and
other communications provided for by this agreement shall be in
writing and shall be deemed to have been given at the time when
mailed at any general or branch United States Post Office, by
first class postage prepaid, certified or registered mail,
return receipt requested, and addressed to the address of the
respective party stated below or to such changed address as
such party may have fixed by like notice similarly given:
To the Corporation:
Korn/Ferry International
Executive Offices
237 Park Avenue
New York, New York 10017
To the Executive:
SAMPLE
provided, however, that any notice of change of address shall
be deemed to have been given only upon receipt, or first
attempted delivery by the post office.
NINTH:
This agreement shall inure to the
benefit of and be binding upon the Corporation, its successors
and assigns, and the Executive, his heirs, executors,
administrators and legal representatives, except that this
agreement shall terminate upon the death of the Executive.
9
TENTH:
This agreement sets forth the entire
agreement and understanding between the parties as to the
subject matter hereof and merges and supersedes all prior
discussions, agreements and understandings of any kind and
every nature between them.
ELEVENTH:
This agreement shall not be changed,
modified or amended except by a writing signed by the parties
hereto.
TWELFTH:
This agreement shall be governed by the
laws of the State of New York.
THIRTEENTH: In the event that any provision of this
agreement, or the application of any provision hereof, is
declared to be illegal, invalid or otherwise unenforceable by a
court of competent jurisdiction, the remainder of this
agreement shall not be affected except to the extent necessary
to delete such illegal, invalid or unenforceable provision,
unless the provision held invalid shall substantially impair
the benefit of the remaining portion of this agreement.
FOURTEENTH: This agreement may be executed in
counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same
instrument.
10
IN WITNESS WHEREOF, this agreement has been executed by the
parties in New York on the day and in the year first above
written.
KORN/FERRY INTERNATIONAL
By:
EXECUTIVE
SAMPLE
11
R-
March 15, 1989
Dear Tom:
Thank you very much for your kind note and your thoughtfulness.
You are right. I do have the urge to play golf on more than one
occasion, and I will give Mr. McCorkindale a call in the near
future.
Warmest personal regards.
Sincerely,
Samuel K. Skinner
Mr. Thomas A. Reynolds, Jr.
Suite 5000
One First National Plaza
Chicago, IL 60603
THE SECRETARY OF TRANSPORTATION
Postage and Fees Paid
WASHINGTON, D.C. 20590
Department of
Transportation
DOT 518
U.S.MAIL
Mr. Thomas F. Ryan:
Sidley & Austin
One First National Plaza
Chicago, IL 60603
THE SECRETARY OF TRANSPORTATION
Dear Tom
11-25-89
Come seelles Door,
Thanks for you note
Sub
SIDLEY & AUSTIN
LAW OFFICES
ONE FIRST NATIONAL PLAZA
CHICAGO, ILLINOIS 60603
853-7497 AREA CODE 312
From THOMAS F. RYAN
Wear Sam
Jim Cozad is a fine
man and deserves this new
position See the lash
paragraph 1 the article, for
your own interest
you're doing great in
all Irenas and your old
colleagnes are they proud
Jom
THE SECRETARY OF TRANSPORTATION
WASHINGTON, D.C. 20590
Postage and Fees Paid
Department of
Transportation
DOT 518
U.S.MAIL
Mr. Ira H. Raphaelson
Assistant United States Attorney
Northern District of Illinois
U. S. Courthouse
Chicago, IL : 60604
THE SECRETARY OF TRANSPORTATION
dra
12-5-89
thank for you nate. you have
ce my by responsibility now. Exercial
it with a tough but fair
and you will accepiet yoused
Weel for the period you same
W hether Actig or Presidenting
appointed, Being United
is one of the highest Hanao a tonger
will ever received
bood heck San
U.S. Department of Justice
United States Attorney
Northern District of Illinois
United States Courthouse
Chicago, Illinois 60604
November 29, 1989
Hon. Samuel K. Skinner
Secretary of Transportation
Department of Transportation
400 7th Street S.W.
Washington, D.C. 20590
Dear Secretary Skinner:
Tony Valukas told me of your support for my appointment
as Interim U.S. Attorney. As you may recall, I had the privilege
of serving you as a law school intern when you held the position
of United States Attorney. That experience convinced me that
there could be no higher calling than the service of our community
and no more enjoyable way to do it than to be an Assistant United
States Attorney in Chicago. I have been honored to serve as
an Assistant U.S. Attorney under Tom Sullivan, Dan Webb and
most recently Tony Valukas.
Like their predecessors, the Hon. William Bauer, Governor
Thompson, and you, all the U.S. Attorneys I have served as an
AUSA, have been hardworking men of integrity who have counseled
and lived the advice "to the right thing." When Tony was recently
honored by the Chicago Area Boy Scouts, he told me that you
and I were the only Eagle Scouts he knew. Therefore, you will
understand my pledge "on my honor to do my best" to maintain
the standards you all have set in the office you built until
the new U.S. Attorney can assume office. Thank you for the
support, the honor and the opportunity.
Very truly yours,
IRA H. RAPHAELSON
Assistant United States Attorney
TRANSPORTATION OF
89 DEC-4 AM 10:20
ARY
EXECUTIVESECHEIARIAT ATION 0
1988
nugsq two USA
07 as of require
Officer
GV,
THE SECRETARY OF TRANSPORTATION
Postage and Fees Paid
Department of
WASHINGTON, D.C. 20590
Transportation
DOT 518
U.S.MAIL
Mr. John Rockcastle
NAS Glenview Flying Club
200 Tomahawk Lane
Barrington, IL : 60010
THE SECRETARY OF TRANSPORTATION
Dear Dork
11-8-89
Congratulalus of you Selector
as 1989 General Quatin
Flight Instructor of the year. aardis
well decemed
SemSkimee
U.S. Department
of Transportation
Federal Aviation
Administration
11/32/89
DWIGHT DEAN LAW - Winner of the 1989
General Aviation Maintenance Technician
of the Year National Award:
Address: Lakeside Aviation, Inc.
Post Office Box 81
McHenry, Maryland 21541
Phone:
301-387-4100
JOHN "ROCK" ROCKCASTLE - Winner of the
1989 General Aviation Flight Instructor
of the Year National Award:
Address: NAS Glenview Flying Club
200 Tomahawk Lane
Barrington, Illinois 60010
Phone:
312-526-5676
alphab.
THE SECRETARY OF TRANSPORTATION
Postage and Fees Paid
WASHINGTON, D.C. 20590
Department of
Transportation
DOT 518
U.S.MAIL
Mr. James H. Russell
Winston & Strawn
35 West Wacker Drive
Chicago, IL 60601
THE SECRETARY OF TRANSPORTATION
Dear Jim
10-20-89
thank for your note.
it is interesty to ogthe
least. Keep the wheels down
especial on landy. Son
WINSTON & STRAWN
FREDERICK H. WINSTON (1853-1886)
35 WEST WACKER DRIVE
PHOENIX OFFICE
SILAS H. STRAWN (1891-1946)
CHICAGO, ILLINOIS 60601
2300 GREAT AMERICAN TOWER
3200 NORTH CENTRAL AVENUE
PHOENIX, ARIZONA 85012
(312) 558-5600
(602) 279-8500
FACSIMILE (312) 558-5700
WASHINGTON, D.C. OFFICE
2550 M STREET, N.W.
JAMES H. RUSSELL
WASHINGTON, D.C. 20037
(312) 558-6084
(202) 828-8400
WINSTON & STRAWN, COLE & DEITZ
October 10, 1989
175 WATER STREET
NEW YORK, NY 10038-4981
(212) 269-2500
Mr. Samuel K. Skinner
Secretary of Transportation
Department of Transportation
400 7th Street, S.W.
Washington, D.C. 20590
Dear Sam:
I disagree with this editorial. Your action has been
needed for a long time -- and not just in the airline industry.
I do agree with the first sentence
of the last paragraph.
Best wishes.
Sincerely,
JHR:cil
Jim James H. Russell
Enclosure
U.S DEPT OF
TRANSPORTATION
89 OCT 17 AM 9:47
utt SECRI TARY
OF TRANSPORTATION
EXECUTIVE SECRETARIAT
Alphal
Republican
National
Committee
September 15, 1989
Dear Delegate or Alternate Delegate:
The Official Proceedings of the 1988 Republican National
Convention will be ready soon for distribution. I am happy to
report that we are ahead of schedule, and should have it available
by the end of the year.
In an effort to distribute the book in the most efficient
manner, I am writing to ask for your help. Would you please
complete the form below with your correct mailing address, and
return it to this office, if you would like to receive a copy
of the Official Proceedings.
We would like to have the forms back in this office by
October 15, 1989, so we can prepare the list to mail before the
close of the year.
Please return your form to me at:
Convention and Meetings
Republican National Committee
310 First Street, SE
Washington, D.C. 20003
Thank you for your assistance.
Sincerely,
Pat Saidina
Pat Giardina
Director
Convention and Meetings
X Yes, I would like to receive a copy of the 1988 Official
Proceedings.
NAME The Honorable Samuel K. Skinner
ADDRESS Department of Transportation
400 7th Street, SW Suite 10200
Washington, D.C. 20590
Dwight D. Eisenhower Republican Center: 310 First Street Southeast, Washington, D.C. 20003. (202) 863-8500. Telex: 701144
©
Republican
National
Committee
September 15, 1989
Dear Delegate or Alternate Delegate:
The Official Proceedings of the 1988 Republican National
Convention will be ready soon for distribution. I am happy to
report that we are ahead of schedule, and should have it available
by the end of the year.
In an effort to distribute the book in the most efficient
manner, I am writing to ask for your help. Would you please
complete the form below with your correct mailing address, and
return it to this office, if you would like to receive a copy
of the Official Proceedings.
We would like to have the forms back in this office by
October 15, 1989, so we can prepare the list to mail before the
close of the year.
Please return your form to me at:
Convention and Meetings
Republican National Committee
310 First Street, SE
Washington, D.C. 20003
Thank you for your assistance.
Sincerely,
Gat Suaidina
Pat Giardina
Director
Convention and Meetings
THE SECRETARY OF TRANSPORTATION
WASHINGTON, D.C. 20590
September 20, 1989
Dear Mike:
Many thanks for dinner last week. It was
great seeing you.
I've talked with Alan Dixon, and he is very
supportive.
With warmest regards,
Jan Samuel K. Skinner
Sincerely,
Mr. Michael P. Galvin
Room 3886-C
Department of Commerce
Washington, D.C. 20230
P.S. I spoke to al Dixor
He Mill help.
alphal.
THE SECRETARY OF TRANSPORTATION
Postage and Fees Paid
WASHINGTON, D.C. 20590
Department of
Transportation
DOT 518
U.S.MAIL
Mr. John H. Riley
3411 Cypress Drive
Falls Church, VA 22042
THE SECRETARY OF TRANSPORTATION
9-7-89
Joan
Thank
for you note.
Please Keep me in mind of
loan help in cy ug.
San
John H. Riley
3411 Cypress Drive
Falls Church, Virginia 22042
August 17, 1989
The Honorable Samuel K. Skinner
Secretary of Transportation
Department of Transportation
400 7th Street, S.W.
Washington, DC
Dear Secretar Saskin
Skinner:
Thanks for being there when I needed you.
I've learned over the past few months that there is a strong
psychological element to healing. Patients who confront illness
confidently, as an obstacle to be vanquished, simply do better.
Those who don't take a fighting attitude seem to have more
problems, and they add psychological pain to the physical pain
they have already endured.
What lifted me through those first hours after the surprise
discovery of the hemorrhage and tumor was you, and the literally
hundreds of others who wrote, called or sent flowers. I don't
think I can find words to convey what a critical role that played
in my recovery. The caring and love shown by so many people
created a well of energy that reached across the miles and lifted
my spirits through those critical early hours after the surgery.
I realized that if I didn't fight this thing and win, I'd not only
let myself down, I'd let you down. Your caring made a big
difference for me, and Karen and I will be grateful for the rest
of our lives.
I'm only disappointed that it took so long to get back to you.
But for someone who is now a private citizen with no secretarial
resources, the challenge of responding to the hundreds of friends
who called or wrote has been a daunting (though very satisfying)
experience.
Page Two
August 17, 1989
The good news is that I've made a complete recovery from the
surgery, and I'm now returning to my personal and professional
pursuits with renewed vigor. While there are clearly challenges
ahead, including completion of an outpatient treatment program
over the next several months, I'm on my way back, and feel very
lucky to have discovered the problem early when it can be treated.
I expect to resume an essentially normal personal and professional
schedule this week.
I doubt that you'll ever know how much your support meant to
me. But I know, and Karen and I will always be grateful.
Yours Very truly,
John H. Riley
THE SECRETARY OF TRANSPORTATION
8-3-89
Dear Congresmon Robinson
Welcome about Hope to
Dee you Doon.
SonStemer
THE SECRETARY OF TRANSPORTATION
Postage and Fees Paid
Department of
WASHINGTON, D.C. 20590
Transportation
DOT 518
U.S.MAIL
The Honorable Tommy F. Robinson
House of Representatives
Washington, D.C. 20515
THE SECRETARY OF TRANSPORTATION
WASHINGTON, D.C. 20590
July 11, 1989
Dear Lee Ann:
I wanted to thank you and your colleagues for
coming in to see me yesterday on the cellular
phone. The session was very enlightening, and
I especially appreciated your understanding.
With best wishes,
Sincerely,
Samnel K. Skinner
Ms. Lee Ann Riesett
Regional Sales Manager
Cellular One
Suite 100
7855 Walker Drive
Greenbelt, MD 20770
Say to lee Do togh Salespaco.
on ce great &
THE SECRETARY OF TRANSPORTATION
WASHINGTON, D.C. 20590
June 22, 1989
Dear Tom:
Thanks for spending time with me yesterday.
I enjoyed it. Let's do it again soon.
Sincerely,
Samuel K. Skinner
The Honorable Tom Railsback
Graham and James
Suite 700
2000 M Street, N.W.
Washington, D.C. 20036
ALEAVS
8025 |00⑆69⑇675⑇ ⑆50950010
MEMO
SammekSkines
21 JUN 89 GREEN FEES
CHICAGO, ILLINOIS 60603
Trust & Savings Bank
Amalgamated
DOLLARS
THIRTY-FIVE AND 00/100
35.00 $
ORDER OF
PAY TO THE THOMAS RAILSBACK
2-3407710
686L
21 JUN
CHICAGO, ILL. 60603
ONE FIRST NATIONAL PLAZA
SAMUEL K. SKINNER
5208
Alphantial
THE SECRETARY OF TRANSPORTATION
WASHINGTON, D.C. 20590
Mr. Bruce Ressler
Senior Electronics Engineer (DTS-56)
Transportation Systems Center
U. S. Department of Transportation
Kendall Square
Cambridge, Massachusetts 02142
Dear Bruce:
Many thanks for your assistance in the setup
and check out of the Aircraft Situation
Display terminal in my office. I am extremely
impressed by its capabilities and use the
system often.
Everyone involved did a first-rate job and I
just wanted to express to you my appreciation
for your dedication to the task.
Sincerely,
Samue K. Skinner
alphabetical
THE SECRETARY OF TRANSPORTATION
WASHINGTON, D.C. 20590
OFFICIAL BUSINESS
U.S.MAIL
Postage and Fees Paid
Department of Transportation
DOT 518
Mr. Martin F. Robison
Sidley & Austin
One First National Plaza
Chicago, IL 60603
THE SECRETARY OF TRANSPORTATION
Mats.
6-7-89
thank for
your noto. l will
Dee what I
can do. Stop in next
time you are
in D.C.
Say Hello to Eugone San
8
THE SECRETARY OF TRANSPORTATION
UMIED STATES OF AMERICA
February 23, 1989
Dear Al:
I greatly appreciate House Resolution 2019.
How thoughtful of you to remember me in such
a nice way.
Come to see me when you are next in Washington --
but not with a client.
Warmest regards, Son
THE SECRETARY OF TRANSPORTATION
Postage and Fees Paid
WASHINGTON, D.C. 20590
Department of
Transportation
DOT 518
OFFICIAL BUSINESS
U.S.MAIL
The Honorable Alfred G. Ronal
State Representative - 12th District
Illinois House of Representatives
2113 Stratton Building
Springfield, Illinois 62706
alphabetica
THE SECRETARY OF TRANSPORTATION
WASHINGTON, D.C. 20590
June 6, 1989
Lieutenant Mark Rose
Commanding Officer (C-1)
U.S.C.G. Support Center
Governors Island, N.Y. 10004
Dear Lieutenant Rose:
Thanks for all your logistics support during my recent
visit to Governors Island and New York City. You helped
me make the most of the short time I had available on this
trip to Governors Island. I especially applaude your efforts
in coordinating the breakfast meeting in the dining facility.
I look forward to seeing you on my next trip to "The Rock."
Sincerely,
Samuel K. Skinner
DEPARTMENT UNITED STATES OF TRANSPORTATION OF AMERICA
THE SECRETARY OF TRANSPORTATION
WASHINGTON, D.C. 20590
June 5, 1989
Dear Dan:
I appreciated very much having dinner with you last week.
Your good company was a pleasure and your wise counsel most
welcome. I'm looking forward to working with you.
With warmest personal regards,
Sincerely,
Samuel 1. Skinner
The Honorable Dan Rostenkowski
Chairman
Committee on Ways and Means
2111 Rayburn House Office Building
Washington, D.C. 20515
alpha
THE SECRETARY OF TRANSPORTATION
Dear chief
7-27-89
thanks for the "nide"
what a sight. the
Secretary of DOT all wet.
SamSkima
THE SECRETARY OF TRANSPORTATION
Postage and Fees Paid
Department of
WASHINGTON, D.C. 20590
Transportation
DOT 518
U.S.MAIL
Chief Rowan
United States Coast Guard
Group Monterey
100 Lighthouse Ave.
Monterey, CA 93940-1497