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This file contains deals particularly with William G. Whyte and the United States Steel Corporation.

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4520835
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President - Personal Prior Travel Records
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id
4520835
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document
title
President - Personal Prior Travel Records
description
This file contains deals particularly with William G. Whyte and the United States Steel Corporation.
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Philip W. Buchen Files
Philip Buchen's General Subject Files
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Voyages and travels
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Political affairs
Governmental investigations
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1976-11-01
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1976
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1976-09-01
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9
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1976
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The original documents are located in Box 50, folder "President - Personal Prior Travel Records" of the Philip Buchen Files at the Gerald R. Ford Presidential Library. Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections. Works prepared by U.S. Government employees as part of their official duties are in the public domain. The copyrights to materials written by other individuals or organizations are presumed to remain with them. If you think any of the information displayed in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library. R W Digitized from Box 50 of the Philip Buchen Files at the Gerald R. Ford Presidential Library AM-VACATIONS 9-29 BY RICHARD LERNER WASHINGTON (UPI) -- PRESIDENT FORD HAS ORDERED A SEARCH FOR RECORDS THAT MIGHT SHOW WHICH CORPORATE OFFICIALS TOOK HIM GOLFING WHEN HE WAS IN CONGRESS, AND WHEN, A WHITE HOUSE SPOKESMAN SAID WEDNESDAY. PRESS SECRETARY RON NESSEN SAID, HOWEVER, THERE IS NO ASSURANCE ANY SUCH RECORDS EXIST IN FORD'S STAFF FILES, OR HOW MUCH INFORMATION THEY MIGHT HOLD, OR HOW LONG IT WILL TAKE TO FIND THEM. "WE ARE TRYING TO LOCATE THE RECORDS ... WHATEVER RECORDS THERE ARE," NESSEN TOLD REPORTERS. WE WANT TO FIND OUT IF WE HAVE ANY RECORDS." HE DISCLOSED TUESDAY THAT FORD GOLFED AS THE GUEST OF EXECUTIVES FROM AT LEAST FOUR CORPORATIONS -- U.S. STEEL, BETHLEHEM STEEL, ALUMINUM CORPORATION OF AMERICA AND FIRESTONE RUBBER -- WHEN HE WAS IN CONGRESS. BUT HE HAD NO DETAILS ON HOW OFTEN, WHEN, PRECISELY WITH WHOM OR WHAT EXPENSES MAY HAVE BEEN PAID BY HIS HOSTS. WITH JIMMY CARTER STARTING TO MAKE A CAMPAIGN ISSUE OF FORD'S ASSOCIATIONS WITH LOBBYISTS, REPORTERS PRESSED THE WHITE HOUSE FOR SUCH DETAILS AND NESSEN SAID FORD ORDERED THE SEARCH TUESDAY "AFTER I TOLD HIM OF YOUR INTEREST." HE SAID IT WOULD FOCUS AT FIRST ON FORD'S LAST EIGHT YEARS IN CONGRESS, THROUGH 1973, AND WOULD COVER ONLY OUT-OF-TOWN GOLF DATES RECORDED IN FORD'S OWN STAFF RECORDS -- NOT THOSE OF THE HOST CORPORATIONS. IT SEEMED UNLIKELY THE DESK-CALENDAR AND SECRETARIAL NOTATIONS WOULD DIVULGE MUCH MORE THAN DATES AND NAMES OF HOSTS AT BEST -- AS OPPOSED TO EXPENSES PAID AND WHETHER BUSINESS WAS DISCUSSED, THE ITEMS AT THE HEART OF THE CONTROVERSY. SPOKESMEN FOR THREE OF THE FIRMS MENTIONED BY NESSEN HAD THESE COMMENTS WEDNESDAY: -- A BETHLEHEM STEEL SPOKESMAN SAID CHAIRMAN STEWART CORT HOSTED FORD ON A ONE-DAY GOLF OUTING AT SAUCON VALLEY COUNTRY CLUB NEAR BETHLEHEN, PA., IN JULY, 1971, WITH NO OVERNIGHT LODGINGS INVOLVED. HE COULD NOT RECALL WHO PAID FORD'S TRAVEL EXPENSES OR GOLFING FEES. -- A FIRESTONE SPOKESMAN SAID VICE PRESIDENT JOHN FLOBERG HOSTED FORD "ABOUT EIGHT YEARS AGO" AT THE FIRESTONE COUNTRY CLUB IN AKRON, OHIO. HE SAID FLOBERG PROBABLY PAID FORD'S GREENS FEES OF $5 OR $6, THERE WERE NO OVERNIGHT LODGING COSTS AND "WE DON'T RECALL HOW HE GOT UP HERE." -- A SPOKESMAN FOR ALCOA SAID "NOBODY HERE HAS ANY RECOLLECTION" OF FORD VISITS AT COMPANY EXPENSE. BUT SOURCES ASSOCIATED WITH THE ALUMINUM INDUSTRY SAID FORD VISITED THE COMPANY'S LODGE NEAR THE TENNESSEE-NORTH CAROLINA BORDER MORE THAN ONCE. THE CONTROVERSY AROSE LAST WEEK WHEN WILLIAM WHYTE, U.S. STEEL'S CHIEF WASHINGTON LOBBYIST, TOLD UPI HIS COMPANY HAD TREATED FORD TO AT LEAST THREE GOLF OUTINGS AND TWO VISITS TO DISNEY WORLD WHEN HE WAS IN CONGRESS. AT THE WHITE HOUSE BRIEFING, A REPORTER TOLD NESSEN THE CONTROVERSY RAISES THE SUGGESTION FORD LET OTHERS PAY FOR HIS VACATIONS AS PART OF HIS LIFESTYLE, AND THE PRESIDENT SHOULD "COME OUT HERE AND SAY, 'HELL, NO." "I CAN SAY 'HELL NO' FOR HIM RIGHT NOW," NESSEN REPLIED NOBODY HAS SAID THAT HE DID." UPI 09-29 03:41 PED a249 r a byluivqyv AM-Political Rdp, Bjt, 2 takes, 490-960 By DICK BARNES Associated Press Writer Questions about President Ford's old campaign money and golf outings and about Jimmy Carter's foreign travel expenses swirled through the presidential election chase Wednesday. In a flurry of developments that broke the campaign pattern of statistical gunfire on the issues: -Democratic nominee Jimmy Carter said President Ford should go before the news media to discuss reports that the Watergate special prosecutor is investigating what happened to contributions made by two unions to Ford's past congressional campaigning. -Ford's press secretary said "hell. no" it isn't the President's lifestyle to let lobbyists pay for his vacations and golf games. But he promised to release at an unspecified date the results of a records search aimed at finding out who paid when Ford played golf from 1965 to 1973. -Carter acknowledged that foreign governments had picked up some of the costs of trips he took abroad as Georgia governor when he was trying to drum up trade for the state. Carter said the trips were strictly business, and he distinguished them from acceptance of free golfing vacations. -Two large companies said Ford had played each of their courses once as the guest of a company official between four and eight years ago. Carter offered his suggestion of a Ford news conference during his own first formal news conference in almost two weeks as he wound up a two-day rest stop at his Plains, Ga. home. Carter said the best way for Ford to clear up the matter about the Watergate special prosecutor is for him to have a frank discussion with the American people through the news media, which so far he has failed to do." The former Georgia governor said be did not want to be interpreted as having assumed that there's any substance to the allegations. I have no way to know that." Carter said speciál prosecutor Charles Ruff should make public a full report on the investigation when it is finished, regardless of whether that is before or after the Nov. 2 election. Ruff has repeatedly declined comment on the probe, which reportedly centers around whether Ford converted campaign funds to his own use through a local Republican party organization in Michigan while he was in the House. The separate matter of golf games came up recently when William Whyte a lobbyist for U.S. Steel Corp., said Ford, a longtime personal friend, had taken three golfing trips at company expense in New Jersey and stayed twice in a company-owned house near Disney World in Florida while he was a congressman. White House Press Secretary Ron Nessen said Tuesday that Ford had played on courses owned by three other companies before he became vice president. Nessen said Wednesday the President has ordered his records searched to see what can be learned about golf games he played during bis last eight years as a congressman and House Republican leader. MORE 1654pED 09-29 FORD is LIBRARY 076831 APRE 20 C THE NEW YORK TIMES, THURSDAY Carter, as Governor, Got Free Rides On Planes of Lockheed and Coca-Cola By NICHOLAS M. HORROCK had not constituted a conflict investigation in the United Special to The New York Times of interest. States and abroad on charges ATLANTA, March 31-Jim- "He [Mr. Carter] (never did of bribing Government officials my Carter took free rides on a favor for either companY," as part of its aircraft sales the executive jets of Lockheed Mr. Powell said in a telephone technique. Company. Mr. Granum, howev- Aircraft Corporation and the interview. "I'm sure he felt Used for Demonstrations er, disputed specific trips raised Coca-Cola Company while Gov- no obligation to these compa- in questions by a reporter as ternor of Georgia even though nies." Lee Rogers, a spokesman for a result of interviews with oth- the state provides aircraft and Mr. Powell suggested that Lockheed, said the Aircraft er state officials. In checking travel funds for the Governor's using the corporate jets might company carries such passen- three trips, he said, he had use, according to businessmen have "saved the taxpayers' gers only when it is making found Mr. Carter had used com- and former state officials. money" by reducing the cost a demonstration trip-one de- mercial travel on two of, them of the Governor's transporta- signed to demonstrate the air- The longest trip, according and in another case had used 40 interviews and records, was tion. craft for sales purposes. a state plane. But Mr. Granum three-week sweep through Mr. Powell and Rex Granum, Carl E: Sanders who was acknowledged that there which America that Mr. Carter a Carter campaign spokesman Governor of Georgia in 1963-67, Mr. Carter had used Coca-Cola linok aboard a Lockheed Corpo- based in Atlanta, said that and S. Ernest Vandiver Jr., aircraft for state business in Ition Jetstar executive plane either the Lockheed not the 1959-63, are among several re- some instances. In April 1972 Coca-Cola trips had been taken cent Governors who have used Mr. Davis, Coca-Cola vice Governor Carter also used on what Mr. Granum called Coca-Cola aircraft for trips on president in charge of govern- Colo "private business or personal state business, according to mental affairs, said that the to attend several National state officials. affairs" but had been for state soft drink company is one of and Southern Governors Con- business. A Coca-Cola vice president, several companies that provide forences and may have ridden Mr. Granum said the cam- Ovid Davis, said that the public products or services for the 150 flights to Washington, and paign staff did not have a service of free flights had been National Governors Confer- other places, according to for- list of all such Coca-Cola extended to Georgia Governors ence, and it flies a corporate mer state officials and a Coca- flights, their purpose or the throughout his 39 years as a aircraft to these and to South- Cola Company official. company official. destination but the staff was ern Governors Conferences Both companies have major Mr. Rogers said that under attempting to prepare one. each year. He said he was installations in Georgia. Mr. He and Mr. Powell acknow- Federal Aviation Agency rules confident that Mr. Carter had Carter, queried at a news con- ledged, however, that the state Lockheed was not a passenger been invited to both conferen- Verence in Appleton. Wis., to- carrier and could not bill a ces during the four years he Double-routing 'strictly legal' Funds for Ford By SETH KANTOR News Washington Barese / WASHINGTON President Ford him- self acknowledged as far back as 1973 that, as a congressman, he personally fun- neled political contributions earmarked 'diverted' for Ford reelection committees into the campaigns of other politicians. And the White House today contends and voting which almost never hap- pens. It is not unusual for House leaders, such as Mr. Fond was, to receive a strong cam- that the double-routing of the Ford cam- paign money was strictly legal, despite a paign cash flow from special-interest groups. Normally, a House leader is from federal probe under way into funds con- a "sala" congressional district, which tributed by the Seafarers International reelects him without his having to Union (SIU) and the Marine Engineers Benelicial Association (MEBA). Concluded on Page 6A Watergate special prosecutor Charles Ruff has subpenaed records of Republican political committees in Grand Rapids, and the FBI has been interviewing former cont officials of those committees in the Presi- NEWS. dent's longtime congressional district. A source close to SIU activities in the late 1960's has told The Detroit News that P/A the union regularly provided from $10,000 to $20,000 a year for Ford congressional campaign committee accounts. 9-28-76 This same source said that former long- time Brooklyn (N.Y.) Democratic Con- gressman Emanuel Celler was another Sinator named regular recipient, and that the political contributions were in exchange for "a guarantee that gave us 100 votes without any trouble on each side of the aisle" on in maritime legislation. A guarantee of 200 GOP and Demo- cratic votes would be enough to lock up a House majority on almost any issue, since article it takes only 218 votes for absolute control of an issue if every member is present FORD is LIBRARY 0705 Points of View Rumors Couldn't Be Ignored Ford Investigation: A Test For the Special Prosecutor FREE PRESS BY JIM SQUIRES the haste in which the House went about Chicago Tribune investigating its own minority leader. And 9/29/ 76 Ruff didn't. WASHINGTON - Thei current investi- gation into some of President Ford's old By Issuing subpenas for the campaign re- campaign contributions clearly illustrates cords in Kent County, Ruff removed the P.9A both the need for and danger of having a allegations from the "rumor" category and special prosecutor independent of the virtually assured that they would be se- White House and Justice Department. ported in the news media. Ever since Gerald Ford was tapped by His Involvement may well have played a Richard Nixon to succeed Spiro Agnew. role in the disclosures by President Ford's nimase have shounded that AAmA of Road's old friend William Whyle of U.S. Strel United States Senate OFFICE OF THE ASSISTANT MINORITY LEADER WASHINGTON, D.C. 20510 formy Sinferi U.S.S. OFFICIAL BUSINESS Mr. Phillip Buchen The White House 9/30/76 /. L.Cutler: Howard Willins 872-6137 1974 Hawaian trip - Betty probably flew 8,700 at Mona KUID commercis, with Whyte suite of adjoining bedroom -billed GRFonly for bedroom 375 -hotol records show GRF billed Grsuite: 865 for 3 days -Whyte picked up all miscellaneous charges -all expensed to Corp. (Comp. financed Whyte's Boy Scouts activities) - -Ford am yed mly late of leftearly Perkins Cuttiboars Maguire's house In New U.S. Steel plant in Freeport (Corg. plane) 2 H.Willins: 3. H.Tyler: Recess app'ts - I should call him next week. 4. HaWillins: Pine Valley Lodge -spring 1964 with Goldwater week-end FORD LIBRARY Corp. plane - Sopt. 19.21, 1949 by Corp. plant-SonAllott - June 1973 by Complane Goldwater with 9/30/76 (cont.) Bay Hill facility in Florida Aug 25-27, 1972 Fords + 3 children, with MarGregors of Markleys -commercial flight March or April, 1973 in connection withU.S. Chamber -commercial flight Caribern Trips (4): -EH Eluthers - mid 1960's (chork) to Rome home ot Perkins Maguire who was there -trip by commercial flightdon -corp Plane on side-trip to Freeport -over night- of back to Wash. - Elithera in 1969 -Whytes, Fords + MaGregors to Maguire's home -corp.plane used - Tryall Golf Club in Jamaica, Nov. 1970 - Fords, Whytes & Markleys -- traveled com merceal & splitexponses -Tryall Golf Club in Nov. 70 (0/50 Cong Jorman) Bill recollacts Commercial Bolling Rock Club in P3. - Aug 1970 but doubtful -Fords Whytes for 4 or 5 days Markley - individual 24 tomobiles & split records lodging (Whytopidformeals) show plit Howard in May 1974 expenses FORD & BERALD LIBRARY 1968 Feb.14-18 Jamaica with Bill Whyte Jan. 4-7 P.R. FORD & LIBRARI 07087 1967 March J8-31 Polm Springs July June 30-July 8 G.B. Aug 18-19 Bar Horbor GERALD AUVURIT ? FORD MEMORANDUM THE WHITE HOUSE WASHINGTON Mr. President The following trip was not included in information I sent you yesterday because it was prior to the date the law was passed in April of 1968. February 13th to February 20th. Palm Beach Feb. 13th for Lincoln Day speech Montego Bay Feb. 14th to 18th NAM meeting (ladies) Feb. 19th Boca Raton NAM Board meeting - Feb. 20th Boca Raton You left National on National #105 at 2:55 p.m. on Feb. 13th, Mrs. Ford left National via NE #85 at 6:30 p.m. and met you in Miami because she didn't intend to be at the Lincoln Day dinner at which you had to speak. On Feb. 14th you and Mrs. Ford left Miami via Pan Am #437 for Montego Bay. The GOP Committee paid for airline Washington to Miami. You paid fare from Miami to Montego Bay. Record also shows that you made a prior deposit for accommodations at Tryall and paid balance when you left. On Feb. 18th you left Montego Bay in U. S. Steel plane for Boca Raton for the NAM meetings on Feb. 19th and 20th. You were guest of NAM at Boca Raton Hotel. On Feb. 20th you returned to Washington, leaving at 3:00 p.m. from Boca Raton in U. S. Steel plane. ITEMS FROM PERSONAL CALENDAR OF ENGAGEMENTS WHICH ARE NOT REFLECTED IN MATERIAL PREPARED BY MILDRED LEONARD 1969 April 6-13 (Easter) "El" May 3 "Kty Derby" August 1 "Akron" September 11-12 (Elpaso) (Leon Parma) September 20-21 (Whytes - Pine Valley) 1970 April 27 - Vail April 28-31 P/S August 16-21 R.R.C. 1971 January 1-5 - Vail January 6 - San Clemente April 9-11 - Westlands April 12-16 - P/S 1972 January 28 - Tuson, Arizona and January 29 -"Carbons" December 26-29 - Brown's 1973 April 23-27 P/S Fund MEMORANDUM THE WHITE HOUSE (1968) September 29, 1976 WASHINGTON Mr. President: Here are golf trips in 1968 June 28, 1968 - Gum Dip Open Tournament at Akron, Ohio You left at 10:00 a.m. and returned the same evening at 10:30 p.m. (Firestone supplied Lockheed JetStar for you and other Members of Congress) Mrs. Ford did not go. November 9th to 16th - Puerto Vallarta, Jalisco, Mexico (This was fishing rather than golfing) Teledyne Ryan furnished plane from Page at National for you and Mrs. Ford and Cong. and Mrs. Wilson to Puerto Vallarta and return to Palm Beach. You paid Mrs. Ford's and your air fare back to Washington from Los Angeles. You also paid your share of the villa that was rented by the five couples (Wilsons, Jamesons, Parmas, Kleins, and you). Air fare back was $279.30. Villa was $271.40. FORD (TRRAG) MEMORANDUM THE WHITE HOUSE 1969 WASHINGTON September 29, 1976 Trips in 1969 September 22, 1969 You left at 8:00 a.m. from Dulles in Bethlehem plane and went to Grand Rapids for ROSPATCH meeting. Then left Grand Rapids in same plane to Bethlehem, Penn. Plawed golf and had dinner at Saucon Valley Country Club and returned to National at 10:00 p.m. the same day. This is all I can find for 1969 - Gum Dip Open was scheduled for August 14, 1969 but you cancelled. THE WHITE HOUSE WASHINGTON (1970) September 29, 1976 There is only one golf trip in 1970 - November 8th to 15th, 1970 Tryall - Montego Bay, Jamaica You and Mrs. Ford left Friendship on Eastern #995 at 10:55 a.m. on Nov. 8th and returned on Eastern #994 from Montego Bay on Nov. 15th, arriving Friendship at 8:12 p.m. You paid round-trip fare of $348.00 You also paid your share of the Tryall expenses which was divided between you, the Markleys, the Whytes, and the Burkes. Your share was $394.37 MEMORANDUM THE WHITE HOUSE 97' WASHINGTON September 29, 1976 Golf trips for 1971 June 8th and 9th, 1971 Kemper Open Tournament You left National via private plane at 4:30 p.m. on June 8th and arrived at 5:30 p.m. in Charlotte. You stayed over night at Holiday Inn and returned on June 9th at 11:00 p.m. by private plane. You were the personal guest of James Kemper who also invited other Members of Congress. This is all I can find in 1971 MEMORANDUM THE WHITE HOUSE September 29, 1976 WASHINGTON 11972 Golf dates in 1972 March 31st, 1972 - Palm Desert, Calif. (You were scheduled to speak for two or three GOP functions in Southern California, but you and Mrs. Ford went out a few days early to play golf at Palm Desert with Leon Parma and some others. GOP Committee paid your plane expense for your return trip from Washington to San Diego. Leon Parma arranged flight from San Diego to Palm Desert and back for speaking commitments. You left San Diego via Western 603 on April 7th for Denver where you spoke for Cong. McKevitt. You stayed overnight in Denver and returned to Washington via United #166 at 2:45 p.m. on April 8th. File doesn't show where you stayed in Palm Desert because that was apparently worked out verbally between you and Leon Parma. May 30th to June 1st, 1972 - Kemper Open Tournament. Kemper Insurance Co. chartered a Peidmont plane to take you and other Members of Congress to Charlotte, North Carolina. You stayed at Holiday Inn South in Charlotte until June 1st at 8:00 a.m. when you returned to Washington in the same chartered Piedmont plane. You and other Members were guests of James Kemper. August 25, 1972 - The day after the GOP Convention in Miami you and some others along with the Whytes went to Bay Hill, Florida. I understand you were all' Bill Whyte's guests, but I don't have the details. You stayed until Sunday; August 27th when you had to leave for a GOP event in Milwaukee, Wisc. for Cong. Davis. You drove from Disney World to Orlando where you took Delta #132 to Chicago and North Central #205 to Milwaukee. GOP Committee paid for this transportation and also your flight to Grand Rapids from Milwaukee on North Central#984. November 9th to 19th - Montego Bay, Jamaica. Nothing came back in this file to me. But Bill Whyte's office says it was at their expense. (notcorrect) (Actually you spoke at a Boy Scout Luncheon here in Washington on at the International Club on November 20th - so he may have considered the above trip a sort of honorarium) THE WHITE HOUSE 1973 WASHINGTON 1973 March 29- You and Mrs. Ford left from National Airport 7:25 PM for Orlando, Florida. Met at airport by Bill Whyte and taken to Polynesian Village at Disney World. You were the luncheon speaker on the final day of three-day meeting of the Public Affairs Committee of the U.S. Chamber of Commerce. You left Orlando on April 1 at 2:50 PM. May 29 - You left from Piedmont at National airport via chartered plane for Charlotte, N.C. and the Kemper Pro Am. Your accommodations were at the Holiday Inn South, and the tournament at the Quail Hollow Country Club. Letter of invitation says you were the personal guest of James S. Kemper Jr. You returned to National Airport on May 30 at 8:45 PM via Piedmont. Ticket was purchased by check. June 22- Departed Washington early evening for Clementon, New Jersey, Pine Valley Laurel Ridge Lodge for weekend with the Bill Whytes, returning on Sunday, June 24. My book does not show means of transportation, and I seem to recall your driving there and back. ITEMS FROM PERSONAL CALENDAR OF ENGAGEMENTS WHICH ARE NOT REFLECTED IN MATERIAL PREPARED BY MILDRED LEONARD 1969 April 6-13 (Easter) "El" May 3 "Kty Derby" August 1 "Akron" September 11-12 (Elpaso) (Leon Parma) September 20-21 (Whytes - Pine Valley) 1970 April 27 - Vail April 28-31 P/S August 16-21 R.R.C. 1971 January 1-5 - Vail January 6 - San Clemente April 9-11 - Westlands April 12-16 - P/S 1972 January 28 - Tuson, Arizona and January 29 - -"Carbons" December 26-29 - Brown's 1973 April 23-27 P/S MEMORANDUM THE WHITE HOUSE September 29, 1976 WASHINGTON Mr. President: Here are golf trips in 1968 June 28, 1968 - Gum Dip Open Tournament at Akron, Ohio You left at 10:00 a.m. and returned the same evening at 10:30 p.m. (Firestone supplied Lockheed JetStar for you and other Members of Congress) Mrs. Ford did not go. November 9th to 16th - Puerto Vallarta, Jalisco, Mexico (This was fishing rather than golfing) Teledyne Ryan furnished plane from Page at National for you and Mrs. Ford and Cong. and Mrs. Wilson to Puerto Vallarta and return to Palm Beach. You paid Mrs. Ford's and your air fare back to Washington from Los Angeles. You also paid your share of the villa that was rented by the five couples (Wilsons, Jamesons, Parmas, Kleins, and you). Air fare back was $279.30. Villa was $271.40. MEMORANDUM THE WHITE HOUSE 1969 WASHINGTON September 29, 1976 Trips in 1969 September 22, 1969 You left at 8:00 a.m. from Dulles in Bethlehem plane and went to Grand Rapids for ROSPATCH meeting. Then left Grand Rapids in same plane to Bethlehem, Penn. Plawed golf and had dinner at Saucon Valley Country Club and returned to National at 10:00 p.m. the same day. This is all I can find for 1969 - Gum Dip Open was scheduled for August 14, 1969 but you cancelled. MEMORANDUM THE WHITE HOUSE 1970 WASHINGTON September 29, 1976 There is only one golf trip in 1970 - November 8th to 15th, 1970 Tryall - Montego Bay, Jamaica You and Mrs. Ford left Friendship on Eastern #995 at 10:55 a.m. on Nov. 8th and returned on Eastern #994 from Montego Bay on Nov. 15th, arriving Friendship at 8:12 p.m. You paid round-trip fare of $348.00 You also paid your share of the Tryall expenses which was divided between you, the Markleys, the Whytes, and the Burkes. Your share was $394.37 MEMORANDUM THE WHITE HOUSE 971 WASHINGTON September 29, 1976 Golf trips for 1971 June 8th and 9th, 1971 Kemper Open Tournament You left National via private plane at 4:30 p.m. on June 8th and arrived at 5:30 p.m. in Charlotte. You stayed over night at Holiday Inn and returned on June 9th at 11:00 p.m. by private plane. You were the personal guest of James Kemper who also invited other Members of Congress. This is all I can find in 1971 MEMORANDUM THE WHITE HOUSE September 29, 1976 WASHINGTON 1972 Golf dates in 1972 March 31st, 1972 - Palm Desert, Calif. (You were scheduled to speak for two or three GOP functions in Southern California, but you and Mrs. Ford went out a few days early to play golf at Palm Desert with Leon Parma and some others. GOP Committee paid your plane expense for your return trip from Washington to San Diego. Leon Parma arranged flight from San Diego to Palm Desert and back for speaking commitments. You left San Diego via Western 603 on April 7th for Denver where you spoke for Cong. McKevitt. You stayed overnight in Denver and returned to Washington via United #166 at 2:45 p.m. on April 8th. File doesn't show where you stayed in Palm Desert because that was apparently worked out verbally between you and Leon Parma. May 30th to June 1st, 1972 - Kemper Open Tournament. Kemper Insurance Co. chartered a Peidmont plane to take you and other Members of Congress to Charlotte, North Carolina. You stayed at Holiday Inn South in Charlotte until June 1st at 8:00 a.m. when you returned to Washington in the same chartered Piedmont plane. You and other Members were guests of James Kemper. August 25, 1972 - The day after the GOP Convention in Miami you and some others along with the Whytes went to Bay Hill, Florida. I understand you were all' Bill Whyte's guests, but I don't have the details. You stayed until Sunday, August 27th when you had to leave for a GOP event in Milwaukee, Wisc. for Cong. Davis. You drove from Disney World to Orlando where you took Delta #132 to Chicago and North Central #205 to Milwaukee. GOP Committee paid for this transportation and also your flight to Grand Rapids from Milwaukee on North Central#984. November 9th to 19th - Montego Bay, Jamaica. Nothing came back in this file to me. But Bill Whyte's office says it was at their expense. (notcomect) (Actually you spoke at a Boy Scout Luncheon here in Washington on at the International Club on November 20th - so he may have considered the above trip a sort of honorarium) THE WHITE HOUSE WASHINGTON 1973 1973 March 29- You and Mrs. Ford left from National Airport 7:25 PM for Orlando, Florida. Met at airport by Bill Whyte and taken to Polynesian Village at Disney World. You were the luncheon speaker on the final day of three-day meeting of the Public Affairs Committee of the U.S. Chamber of Commerce. You left Orlando on April 1 at 2:50 PM. May 29 - You left from Piedmont at National airport via chartered plane for Charlotte, N.C. and the Kemper Pro Am. Your accommodations were at the Holiday Inn South, and the tournament at the Quail Hollow Country Club. Letter of invitation says you were the personal guest of James S. Kemper Jr. You returned to National Airport on May 30 at 8:45 PM via Piedmont. Ticket was purchased by check. June 22- Departed Washington early evening for Clementon, New Jersey, Pine Valley Laurel Ridge Lodge for weekend with the Bill Whytes, returning on Sunday, June 24. My book does not show means of transportation, and I seem to recall your driving there and back. House Calendar No. 203 90th Congress, 2d Session - - - - - House Report No. 1176 REPORT OF THE COMMITTEE ON STANDARDS OF OFFICIAL CONDUCT OF THE HOUSE OF REPRESENTATIVES NINETIETH CONGRESS SECOND SESSION UNDER THE AUTHORITY OF H. RES. 418 MARCH 14, 1968.-Referred to the House Calendar and ordered to be printed U.S. GOVERNMENT PRINTING OFFICE 91-318 0 WASHINGTON : 1968 LETTER OF SUBMITTAL MARCH 14, 1968. COMMITTEE ON STANDARDS OF OFFICIAL CONDUCT Hon. JOHN W. McCormack, (Pursuant to H. Res. 418, 90th Cong., first sess.) Speaker of the House, MELVIN PRICE, Illinois, Chairman House of Representatives, OLIN E. TEAGUE, Texas CHARLES A. HALLECK, Indiana Washington, D.C. JOE L. EVINS, Tennessee LESLIE C. ARENDS, Illinois DEAR MR. SPEAKER: I have the honor of submitting herewith the WATKINS M. ABBITT, Virginia JACKSON E. BETTS, Ohio WAYNE N. ASPINALL, Colorado ROBERT T. STAFFORD, Vermont report of the Committee on Standards of Official Conduct in response EDNA F. KELLY, New York JAMES H. QUILLEN, Tennessee to House Resolution 418, adopted April 13, 1967. LAWRENCE G. WILLIAMS, Pennsylvania This resolution established this bipartisan committee with a direc- JOHN M. SWANNER, Staff Director tive to "recommend as soon as practicable to the House of Repre- BENNETT WOLFE, Assistant Staff Director sentatives such changes in laws, rules, and regulations as the committee Hon. BROOKS HAYS, Special Consultant deems necessary to establish and enforce standards of official conduct (II) for Members, officers, and employees of the House." Pursuant thereto, the committee transmits its report, with recom- mendations. With highest regards, Sincerely, Melvin Price M.C. MELVIN PRICE, Chairman. (III) CONTENTS Part I: Page 1. Introduction 1 2. Background 1 3. Assessing the task 2 Part II: The recommendations 7 Part III: Comment on the recommendations 12 Part IV: Conclusion 28 Appendix 29 1. House Resolution 418, 90th Congress, first session 29 2. House Resolution - to implement the recommendations of this report 30 3. Short history of rules of conduct enforcement in the House of Repre- sentatives 34 4. Constitutional and statutory provisions and Rules of the House governing the conduct and activities of Members of Congress 36 5. Task organization chart 44 (V) HIGHLIGHTS OF RECOMMENDATIONS REPORT OF THE COMMITTEE ON STANDARDS OF OFFICIAL Establishment of the present Committee on Standards of Official CONDUCT OF THE HOUSE OF REPRESENTATIVES, 90TH Conduct as a permanent standing committee of the House with powers CONGRESS, SECOND SESSION to enforce standards of conduct hereinafter proposed. Public disclosure of certain assets, income, gifts, and SO forth; PART I private filing of more detailed information which could be made public in event of an investigation. INTRODUCTION Modernization of the Federal Corrupt Practices Act to bring about stricter management of political finances. The House created this committee on April 13, 1967, with instruc- Clearer guidelines for use of so-called counterpart funds and report- tions "to recommend as soon as practicable to the House of Repre- ing of expenditures thereof. sentatives such changes in laws, rules, and regulations as the committee Adoption of the following Code of Official Conduct (the language deems necessary to establish and enforce standards of official conduct in this presentation is condensed for the sake of brevity): for Members, officers, and employees of the House." Members, officers, and employees of the House of Representatives The authorizing resolution provided for a bipartisan committee of shall- 12 members, and on May 1, 1967, six members of the Democratic 1. Conduct themselves at all times in a manner which shall majority and six from the Republican minority were chosen to con- reflect creditably on the House. stitute the committee, thus signifying that the assignment would be 2. Adhere to the spirit and the letter of the Rules of the House carried out without partisanship. and to the rules of duly constituted committees thereof. In this spirit and mindful of the fact that matters of ethical conduct 3. Receive no compensation nor permit any to accrue to their are not subject to the justifiable differences of opinion that characterize beneficial interest, the receipt of which would occur by virtue public policy questions, the committee undertook its task. of influence improperly exerted from their positions in the The committee believes that its performance has been responsive Congress. to both the letter and the spirit of its assignment and respectfully 4. Accept no gifts of substantial value from any person, orga- submits this report with the recommendation that the House take nization, or corporation having a direct interest in legislation appropriate action to implement the proposals contained therein. before the Congress. 5. Accept no honorarium for a speech, writing for publication, BACKGROUND or other similar activity, from any person, organization, or corporation in excess of the usual and customary value for For much of the history of this country the question of restraints such services. that might properly be placed on the legislative role has occupied 6. Keep campaign funds separate from personal funds. No scholars of self-government systems. In the most ideal sense any campaign funds shall be converted to personal use in excess of limitation on the representative role is unthinkable for it is at the same reimbursement for legitimate and verifiable prior campaign time a limitation on the constituent. But the private citizen also expenditures. evidences that he recognizes his representation as not absolute and 7. Treat as campaign contributions all proceeds from testi- requires in the interest of orderly processes in his Government that monial or other fundraising events if the sponsors of such affairs certain standards be met by his representative in Congress. These do not give clear notice in advance to the donors or participants requirements find expression in the Constitution, the statutes and that the proceeds are intended for other purposes. rules of legislative bodies, and, as in other human institutions, they 8. Retain no one from their clerk-hire allowance who does not need revision with changing conditions. perform duties commensurate with the compensation he receives. But revision in the rules of institutions of such proven durability as the House of Representatives properly should take place only in (VI) response to clearly demonstrated need and genuine public concern. Although there is some history of this need and concern even prior to that indicated in the following figures, the tabulation reflects the growing demand for congressional action in this area and offers ample evidence of the appropriateness of this committee's assignment. (1) 2 3 The tabulation shows the number of proposals relating to standards of official conduct which have been introduced in recent Congresses: As may be seen from the organizational chart in the appendix, various sources were called upon. The committee issued a large number of invitations seeking testi- Congress House Senate Total mony or submission of statements for its consideration. These were directed to major national organizations in the fields of industry, labor, 85th 12 8 20 86th 10 7 17 the professions, politics, and the news media, as well as to prominent 87th 10 4 14 88th 63 5 68 figures in law and political science, special groups working on similar 89th 72 9 81 or identical projects, and through the press to the general public. The 90th (1st sess.) 169 10 179 contributions from those who responded were invaluable to the com- Total 336 43 379 mittee. But the great majority of the invitations was declined or ignored. In the last 3 years several events of national interest involving Simultaneously the committee issued invitations, through a speech Members and employees of the Congress have focused much attention in the House by the chairman and through individually addressed on the question of congressional ethics. This is not to say there was letters to all Members of the House. In response, 30 Members testified not already a formal code of ethics, as well as the rules of both bodies before the committee and 24 others submitted statements. The com- and certain statutes applicable to the conduct of the Members of mittee held seven public hearings, the printed record of which is the Congress; but the absence of a well-organized framework providing available. some cohesiveness around these proscriptions made it difficult to view Additionally, studies were made of standards of conduct in force the sum of them in perspective. in other nations, States of the Union and U.S. cities; the work of the The Senate on July 24, 1964, adopted a resolution (S. Res. 338, prior Select Committee on Standards and Conduct was reviewed; and 88th Cong.) creating a Select Committee on Standards and Conduct, prior legislation introduced on the topic was studied, to provide broadly empowering it to "receive complaints and investigate allegations of based source material. improper conduct which may reflect upon the Senate, violations of After having received the testimony and assessing other material, it law, and violations of rules and regulations of the Senate, relating to became clear the committee had to accept several premises. the conduct of individuals in the performance of their duties as One was that the committee could not permit itself to think of Members of the Senate, or as officers or employees of the Senate, standards of conduct for the legislative branch in precise comparison and to make appropriate findings of fact and conclusions with respect with standards for other governmental entities. The primary difference thereto. * * The Senate select committee was instructed also to was noted numerous times in the testimony received by the commit- make recommendations for establishment of a code of ethics for tee-namely, that the legislative branch regularly submits itself to dealing with related matters. the electorate. The House on October 19, 1966, established a select committee Another premise was the far more profound political reality that the (H. Res. 1013, 89th Cong.) of 12 Members with a directive to make Representative in Congress is the extended voice of the constituent, recommendations for additional rules and regulations * necessary and, therefore, any undue restriction placed upon him is repugnant to or desirable to insure proper standards of conduct by Members of the elemental self-government. It is only in the sense that the Represent- House and by officers or employees of the House, in the performance ative is an element within a singularly operating body, and as such of their duties and the discharge of their responsibilities * * " The contributes or fails to contribute to its performance, that he should be select committee, existing as it did for only a few months at the end subjected to any proscriptions for the greater benefit of the functioning of the 89th Congress, submitted a report (No. 2338, 89th Cong.) of House. The recommendations set forth here are aimed toward avoid- considerable merit, but obviously, in such a short time, the report ance of any semblance of restraint on the proper role of the Repre- could not reach to great depth in all the questions that seemed to sentative as the alter ego of the people he represents. demand attention. The committee noted, too, that the framers of the Constitution, After the opening of the 90th Congress, a number of resolutions while displaying great insight in all the areas with which they dealt, aimed at the same general objectives were introduced. More than 100 made no provision for an institutionalized means of enforcing the such resolutions were referred to the Committee on Rules which, after limitations which they imposed on members of the legislative branch. hearings and extensive consideration, reported out House Resolution The presumption must be, not that the Founding Fathers carelessly 418. overlooked making any such provision, but rather that some factors The resolution was adopted 400 to 0 by the House on April 13, 1967. are now present that were not present when the Constitution was adopted. ASSESSING THE TASK Perhaps one such factor is the dramatic increase in the apportion- ment of population per Member, particularly since 1910 when the The committee's first step was to organize and more precisely define House was increased to its present total of 435 Members. This its assignment. The importance of certain sources of input into the development is noted, not because of any direct bearing on congres- committee's deliberations was apparent from the outset and, equally sional ethics, but simply to help bring into perspective the problems important, the committee felt, was that all viewpoints should be heard. of a Member in communicating effectively with ever increasing numbers of constituents. 91-318 0-68-2 4 5 As the committee work progressed and it began deliberations on specific questions of conduct, other considerations were indicated. 200' There are, of course, some questions of ethical conduct which do not yield to categorical judgments, and the committee does not insist 1999 that this report contains the last word of conscience or wisdom. It might even be said that one clear value of the study and of House 1989 consideration of the committee's proposals is the sparking of a dialog across the country on the basic questions of conduct, not only of 1979 Representatives in Congress but of all who occupy places of responsi- bility in government service. 1969 Men, equally conscientious, sometimes take opposite views of particular questions of conduct. Nevertheless, the committee is 1959 unanimous in the conviction that some questions do not yield to individual opinions-they are rigid and immutable. The language of Apportionment Population 1949 an ancient proponent of rectitude in the public service, Cicero, states Per Representative the point in eloquent terms: 1939 True law is right reason in agreement with nature *** unchanging and everlasting * We cannot be freed 1929 from its obligations by senate or people, and we need not look outside ourselves for an expounder or interpreter of it. And there will not be different laws at Rome and at Athens, or different laws now and in the future, but one eternal and 1909 unchangeable law will be valid for all nations and all times * The committee does not regard its recommendations, hereinafter set forth, as completing its task. While the concise code, as recom- 1889 mended, is based upon abstract principles of public morality and will doubtless be little affected by changed conditions, even that Members 1879 enumeration of principles may in time be improved upon. It is the conviction of your committee that the record of the Con- 1869 gress, over a period of almost two centuries, is by and large an excellent one and that, in spite of the rare departures from rectitude, the main- APPORTIONMENT OF MEMBERSHIP 1859 tenance of ideals of political and personal integrity has been a matter IN HOUSE OF REPRESENTATIVES of genuine concern to the overwhelming majority of our national 1849 legislators. In the few months of its existence, the committee has made a determined effort to proceed with all practicable speed in the per- 1789 TO 2009 (Projected) formance of its difficult and delicate assignment. But the committee felt the thoroughness of its studies and the soundness of its recom- mendations should not be impaired by any effort to rush its report to the House. 1819 The committee emphasizes that it regards its proposals not as the full answer to the maintenance of ethical standards of conduct but as a meaningful beginning. The committee contemplates that the proposed code of standards, if adopted, will be subject to revision and 1799 refinement as experience and developments indicate. The provisions recommended herein for the disclosure of certain financial details Members 1789 may prove in practice not as workable as they do in the hypothetical. Apportionment Per Representative 450 (Thousands) 400 400 350 350 300 250 200 150 100 50 0 These, too, may need modification as experience dictates. 750 700 650 600 550 500 450 300 250 200 150 100 50 0 The committee acknowledges with appreciation the help offered by other Members of the House and the outside witnesses who accepted invitations to testify. And a special vote of thanks is due, the com- 6 mittee feels, to a predecessor committee, the Select Committee on Standards and Conduct, of which Representative Charles E. Bennett, of Florida, served as chairman, for the spadework it did during its short-lived tenure in the second session of the 89th Congress. PART II SUMMARY OF RECOMMENDATIONS The following is a summary of the recommendations contained in this report. The rationale leading up to each specific recommenda- tion is discussed in the third part. RECOMMENDATION NO. I-PERMANENT COMMITTEE Amendment of the Rules of the House to incorporate this com- mittee as a permanent standing committee of the House of Representatives. RECOMMENDATION NO. II.-POWERS AND LIMITATIONS OF THE COMMITTEE Investment of the following powers in the committee: 1. To have referred to it measures relating to the code of official conduct and measures relating to financial disclosure for Members, officers, and employees of the House of Representatives. 2. To recommend to the House of Representatives, from time to time, such legislative or administrative actions as the com- mittee may deem appropriate to establish or enforce standards of official conduct for Members, officers, and employees of the House of Representatives. 3. To investigate, subject to limitations, any alleged violation, by a Member, officer, or employee of the House of Representa- tives, of the code of official conduct or of any law, rule, regula- tion, or other standard of conduct applicable to the conduct of such Member, officer, or employee in the performance of his duties or the discharge of his responsibilities and, after notice and a hearing, the committee shall recommend to the House of Representatives, by resolution or otherwise, such action as the committee may deem appropriate in the circumstances. 4. To report, to the appropriate Federal or State authorities, with the approval of the House of Representatives, any sub- stantial evidence of a violation, by a Member, officer, or employee of the House of Representatives, of any law applicable to the performance of his duties or the discharge of his responsibilities which may have been disclosed in a committee investigation. 5. To give consideration to the request of a Member, officer, or employee of the House of Representatives for an advisory opinion with respect to the general propriety of any current or proposed conduct of such Member, officer, or employee and, with appropriate deletions to assure the privacy of the individual con- cerned, to publish such opinion for the guidance of other Mem- bers, officers, and employees. (7) 8 9 Establishment of the following limitations on the committee's 5. A Member, officer, or employee of the House of Represent- authority: atives shall accept no honorarium for a speech, writing for pub- 1. No resolution, report, recommendation, or advisory opinion lication, or other similar activity, from any person, organization relating to the official conduct of a Member, officer, or employee or corporation in excess of the usual and customary value for such of the House of Representatives shall be made, and no investiga- services. tion of such conduct shall be undertaken, unless approved by the 6. A Member of the House of Representatives shall keep his affirmative vote of not less than seven members of the committee. campaign funds separate from his personal funds: He shall con- 2. Except in the case of an investigation undertaken by the vert no campaign funds to personal use in excess of reimburse- committee on its own initiative, the committee may undertake ment for legitimate and verifiable prior campaign expenditures. He an investigation relating to the official conduct of an individual shall expend no funds from his campaign account not attributable Member, officer, or employee of the House of Representatives to bona fide campaign purposes. only (A) upon receipt of a complaint, in writing and under oath, 7. A Member of the House of Representatives shall treat as made by or submitted to a Member of the House of Representa- campaign contributions all proceeds from testimonial dinners or tives and transmitted to the committee by such Member, or (B) other fund-raising events if the sponsors of such affairs do not give upon receipt of a complaint, in writing and under oath, directly clear notice in advance to the donors or participants that the from an individual not a Member of the House of Representa- proceeds are intended for other purposes. tives if the committee finds that such complaint has been sub- 8. A Member of the House of Representatives shall retain no mitted by such individual to not less than three Members of the one from his clerk hire allowance who does not perform duties House of Representatives who have refused, in writing, to trans- commensurate with the compensation he receives. mit such complaint to the committee. 3. No investigation shall be undertaken of any alleged violation RECOMMENDATION IV.-FINANCIAL DISCLOSURE of a law, rule, regulation, or standard of conduct not in effect at the time of the alleged violation. Amendment of the rules of the House to require that Members, 4. A member of the committee shall be ineligible to participate, officers, principal assistants to Members and officers, and professional as a member of the committee, in any committee proceeding staff members of committees shall, not later than April 30, 1969, and relating to his official conduct. In any case in which a member by April 30 of each year thereafter, file with the Committee on Stand- of the committee is ineligible to act as a member of the com- ards of Official Conduct a report disclosing certain financial interests, mittee under the preceding sentence, the Speaker of the House as described below. The interest of a spouse or any other party, if of Representatives shall designate a Member of the House of constructively controlled by the person reporting, shall be considered to Representatives from the same political party as the ineligible be the same as the interest of the person reporting. The report shall be member of the committee to act as a member of the committee in two parts, hereinafter designated part A and part B. in any committee proceeding relating to the official conduct of such ineligible member. Part A RECOMMENDATION NO. III.-CODE OF OFFICIAL CONDUCT (1) List the name, instrument of ownership, and any position of management held in any business entity doing a substantial Amendment of the Rules of the House to establish this code of business with the Federal Government or subject to Federal official conduct for Members, officers, and employees of the House of regulatory agencies, in which the ownership is in excess of $5,000 Representatives: fair market value as of the date of filing or from which income of 1. A Member, officer, or employee of the House of Represent- $1,000 or more was derived during the preceding calendar year. atives shall conduct himself at all times in a manner which Do not list any time or demand. deposit in a financial institution, shall reflect creditably on the House of Representatives. or any debt instrument having a fixed yield unless it is convertible 2. A Member, officer, or employee of the House of Represent- to an equity instrument. atives shall adhere to the spirit and the letter of the Rules of (2) List the name, address, and type of practice of any profes- the House and to the rules of duly constituted committees sional organization in which the person reporting, or his spouse, is thereof. an officer, director, or partner, or serves in any advisory capacity, 3. A Member, officer, or employee of the House of Represent- from which income of $1,000 or more was derived during the atives shall receive no compensation nor shall he permit any preceding calendar year. compensation to accrue to his beneficial interest from any source, (3) List the source of each of the following items received the receipt of which would occur by virtue of influence improperly during the preceding calendar year: exerted from his position in the Congress. (a) Any income for services rendered (other than from the 4. A Member, officer, or employee of the House of Represent- U.S. Government) exceeding $5,000. atives shall accept no gift of substantial value, directly or in- (b) Any capital gain from a single source exceeding $5,000, directly, from any person, organization or corporation having a other than from the sale of a residence occupied by the direct interest in legislation before the Congress. person reporting. 10 11 (c) Reimbursement for expenditures (other than from the RECOMMENDATION NO. VII.-CORRUPT PRACTICES U.S. Government) exceeding $1,000 in each instance. Campaign receipts shall not be included in this report. That the House take prompt action to review the entire body of Information filed under part A shall be maintained by the Com- of law in areas covered by the Federal Corrupt Practices Act and mittee on Standards of Official Conduct and made available at enact measures realistically applicable to present day situations. reasonable hours to responsible public inquiry, subject to such regula- tions as the committee may prescribe including, but not limited to, regulations requiring identification by name, occupation, address, and telephone number of each person examining information filed under part A and regulations requiring the committee promptly to notify each Member of the House of Representatives of each instance of an examination of information filed under part A by such Member. Part B (1) List the fair market value (as of the date of filing) of each item listed under paragraph 1 of part A and the income derived therefrom during the preceding calendar year. (2) List the amount of income derived from each item listed under paragraphs 2 and 3 of part A. The information filed under part B shall be sealed by the person filing and shall remain sealed unless the Committee on Standards of Official Conduct, pursuant to its investigative authority, determines by a vote of not less than seven members of the committee that the ex- amination of such information is essential in an official investigation by the committee and promptly notifies the Member concerned of any such determination. The committee may, by a vote of not less than seven members of the committee, make public any portion of the information unsealed by the committee under the preceding sentence and which the committee deems to be in the public interest. Any person required to file a report who has no interests covered by any of the above provisions shall file a report SO stating. In any case in which a person required to file a sealed report under this part B is no longer required to file such a report, the committee shall return to such person, or his legal representative, all sealed reports filed by such person under part B and remaining in the possession of the committee. RECOMMENDATION NO. V.-APPLICATION TO CANDIDATES That the chairmen of national political committees, in turn, recom- mend to candidates seeking nomination or election to the House of Representatives, under the sponsorship of the respective parties, that such candidates comply with all provisions of the code of official conduct insofar as they are applicable. RECOMMENDATION NO. VI.-COUNTERPART FUNDS That the Committee on House Administration recommend revisions in law and regulations to provide for standardizing the controls over the use by committees of counterpart funds for travel outside the United States and full reporting and adequate review of such reports in the House of Representatives. 91-318 0-68-3 13 in restraint by both legislative and practical influences, will not only be able to cope with situations before they bring discredit to the Congress, but, more importantly, will deter most such situations from developing. Some instrumentality, preferably the continuing committee, must PART III necessarily serve as the determinant of the subjective terms necessary in spelling out the Code of Official Conduct. An essential difference COMMENT ON THE RECOMMENDATIONS between a statute and a standard is that the former usually is capable of precise definition and therefore may be objectively tested, whereas RECOMMENDATION NO. I.-PERMANENT COMMITTEE the latter can only be stated in subjective language and must rely on That the Rules of the House of Representatives be ap- the facts as determined in each situation. If it should be necessary to propriately amended to incorporate this Committee as a measure an allegation against a standard, that measurement will be permanent standing committee of the House. as meaningful as the depth to which the measuring body draws out the facts and nuances. Clearly this can be done better by a body Pivotal to the remaining portion of this report is the recommenda- smaller and more flexible than the entire House, and one that is more tion that the Rules of the House be amended to make this com- acquainted with the history and development of the standards and mittee a permanent standing committee of the House, not just of enforcement procedures, than special committees created to deal only this 90th Congress. The reasons for this are several. with individual cases as they arise. On April 9, 1963, Chairman Omar Burleson of the Committee on House Administration, during hearings before his committee, stated: RECOMMENDATION NO. II.-POWERS AND LIMITATIONS Incidentally, the record should show at this point that OF THE COMMITTEE this committee is not charged by law or under the Rules of Powers the House of Representatives with making this type investi- Investment of the following powers in the committee: gation. It is not charged with the responsibility or the author- ity of overseeing the conduct of Members of Congress. (1) to have referred to it measures relating to the Code of Official Conduct and measures relating to financial dis- Nor is any other committee SO charged. Although there have been closure for Members, officers and employees of the House rules and constitutional provisions relating to the official conduct of of Representatives. Members from the First Congress, there never has existed an in- stitutionalized body or means expressly directed toward monitoring The changing conditions over the years that have made desirable them. Historically, infractions usually have been dealt with when the the statement of these canons and establishment of means for verifying severity or exposure of them took on such public weight as to demand their observance must be expected to continue. Thus changes in both that the House appoint a special committee to deal with a problem substance and method will be required as the need is demonstrated. ad hoc. There have been instances when standing committees pursuing These will come from the less than perfect work, which this committee other avenues of investigation chanced upon apparent misconduct concedes is present in this report, and also from new situations which on the part of a Member and sought permission of the House by are not now predictable. The committee feels that placement of this resolution to extend the scope of their investigation to deal with the authority with it is the most suitable means of providing for the discovered infraction. But both of these approaches are slow of orderly treatment of changes which may become necessary in the implementation and tend to become effective only after unsavory future- practices have proliferated into abuse. (2) to recommend to the House of Representatives, from In the extreme, one can envision a permanent standing committee time to time, such legislative or administrative actions as as a vehicle of continuing inquisition, if the powers sought here were the Committee may deem appropriate to establish or enforce carelessly placed or injudiciously handled once placed. That this standards of official conduct for Members, officers, and would not be the case, now or in the future, should be assured by the employees of the House. fact that the members of the committee are also Members of the House This provision would merely continue the recommendatory juris- who are elected as are other committee members and are subject to diction contained in the original resolution. Under (1) as stated above, the same rules and procedures which they will administer. Beyond referral jurisdiction would apply only to the Code of Official Conduct this, of course, is the fact that the committee can only recommend and measures relating to financial disclosure. Under (2) the com- definitive action to the full House. Even greater insurance is provided mittee would have the broader authority to continue to recommend by the spelling out in the authorizing resolution, in more precise and measures aimed at maintaining highest standards of conduct. detailed language than usual, the functions of the committee, thus It is readily conceivable that information can come to the committee, leaving less latitude to the internal rules of the committee. through an investigation or a variety of other means, which would This committee is convinced that a more streamlined procedure for suggest remedies to existing or impending situations. Such remedies the handling of allegations of infractions, provided that procedure is held might be recommendations for House action as a whole or proposals (12) 14 15 directed at a particular committee, or possibly even recommendations employee and, with appropriate deletions to assure the for new statutes or amendments to existing ones. Recommendations privacy of the individual concerned, to publish such opinion in the latter category, with or without the accompaniment of imple- for the guidance of other Members, officers, and employees. menting legislation, would insure referral to the committee in which The committee feels that as a continuing body this perhaps could the appropriate jurisdiction resides, and from which could be expected be its most valuable function; certainly it can be an extremely im- greater expertise. Of prime importance, however, is the existence of portant protective service. a continuing authority to take the initiative to address the House on From the outset of its work, the committee has proceeded on the practices which, if ignored, could bring irreparable harm. premise that enforcement is a poor substitute for prevention or de- (3) to investigate, subject to limitations, any alleged viola- terrence. While the committee necessarily requires power to recom- tion, by a Member, officer, or employee of the House of mend disciplinary action, it sincerely believes there will be little need Representatives, of the Code of Official Conduct, of any for using such authority if it can build precedents through published law, rule, regulation, or other standard of conduct applicable decisions showing how it regards specific acts in their fullest context. to the conduct of such Member, officer, or employee in the In the committee's hearings, it was pointed out on numerous occa- performance of his duties or the discharge of his responsi- sions that there simply has not existed any means of examining an act bilities and, after notice and a hearing, the Committee shall before the fact, especially in the cases of Members with relatively recommend to the House of Representatives, by resolution little seniority. But even among the more senior Members, it was or otherwise, such action as the Committee may deem appro- apparent that their understanding of the permitted and the taboo priate in the circumstances. was often more intuitive than guided by specific authority, and was Recent history offers vivid evidence of the need for enforcement by no means consistent. machinery to accompany any code of conduct. A mere statement of It is felt that the Code of Official Conduct recommended herewith guidelines serves neither as a deterrent to improper conduct nor as a should do considerable toward removing any question of doubt but, yardstick for punitive action, in the absence of means that demand to the extent to which it fails, the early warning device provided by respect for the guidelines. Enforcement is the substance that makes this recommendation should be invaluable. standards meaningful. It would arm the House with the weapon Limitations needed to defend itself, and, in truth, make it the judge of its own At several places in this report, limits on the powers of the com- membership. mittee are recommended. They are- It must be stressed, however, that the powers contained in this pro- vision, like any authority under constitutional self-government, need (1) No resolution, report, recommendation, or advisory restraints and, as pointed out elsewhere in this section, such restraints opinion relating to the official conduct of a Member, officer, are built into the authorizing resolution, and above all, it must be or employee of the House of Representatives shall be made, emphasized that in the practical reality any final authority to punish and no investigation of such conduct shall be undertaken, is vested only in the House as a whole. unless approved by the affirmative vote of not less than seven members of the committee. (4) to report to the appropriate Federal or State au- thorities, with the approval of the House of Representatives, Rule XI, clause 26(e), provides, "No measure or recommendation any substantial evidence of a violation, by a Member, shall be reported from any committee unless a majority of the com- officer or employee of the House of Representatives, of any mittee were actually present," and clause 26(h) specifies, "Each law applicable to the performance of his duties or the dis- committee may fix the number of its members to constitute a quorum charge of his responsibilities, which may have been dis- for taking testimony and receiving evidence, which shall not be less closed in a committee investigation. than two." Additionally, this committee felt it was important, par- ticularly since it also would render advisory opinions, which are not This provision, while generally self-explanatory, differs from many technically covered by the provisions above referred to, that the similar ones found in prior bills and resolutions. The difference is that House be assured that no recommendations could come to it from the committee may report only violations of laws applicable to the the committee unless they represented the views of a majority of performance of duties or the discharge of responsibilities, whereas the committee's authorized membership. And, no investigation could the language of most of such bills and resolutions grants general be undertaken except under the same conditions. authority to Congress to report violations to enforcement agencies. The difference may suggest that the committee is laboring a point (2) Except in the case of an investigation undertaken by unworthily, but it is noted simply to reflect the committee's sensi- the committee on its own initiative, the committee may tivity to remaining strictly within established boundaries. undertake an investigation relating to the official conduct of an individual Member, officer, or employee of the House of (5) to give consideration to the request of a Member, Representatives only (A) upon receipt of a complaint, in officer or employee of the House of Representatives, for an writing and under oath, made by or submitted to a Member advisory opinion with respect to the general propriety of of the House of Representatives and transmitted to the any current or proposed conduct of such Member, officer, or committee by such Member, or (B) upon receipt of a com- 16 17 plaint, in writing and under oath, directly from an individual RECOMMENDATION NO. III.-ADOPTION OF THIS CODE OF OFFICIAL not a Member of the House of Representatives if the com- CONDUCT FOR THE HOUSE OF REPRESENTATIVES mittee finds that such complaint has been submitted by such individual to not less than three Members of the House of (1) A Member, officer, or employee of the House of Representatives who have refused, in writing, to transmit Representatives shall conduct himself at all times in a such complaint to the committee. manner which shall reflect creditably on the House of The committee is fully aware that persons with unworthy motives Representatives. might seek to lodge irresponsible allegations against Members. This Since the Constitution quite clearly makes the House the judge of provision would bar the committee from serving such ulterior purposes. its own membership, it seems appropriate to summarize in a single In addition, the several thresholds built into the committee's investiga- standard a tentative description of conduct, by which the House, tive technique (see chart in appendix, page 44) would insure that only through referral from this committee, can treat promptly with a those allegations which meet successive tests of legitimacy would ever given act or an accumulation of acts of a Member which it determines surface. to have reflected discredit on the Congress. It is conceivable, of course, that someone lodging an allegation It is possible that a flagrant violation of law reflecting on the against a Member might find it impossible to have another Member Congress as a whole could go unpunished if the virtually unlimited transmit it to the committee. Upon the written refusal of any three power of law enforcement officials to prosecute were not exercised. Members to transmit the allegation, the committee would accept it In such circumstances, the legislative branch would find it difficult under all other specified terms and conditions. This provision should to assert the right to be the judge of its own membership. quieten any notion that a legitimate complaint may be technically A contrary situation might well find an investigation by this com- avoided. mittee establishing that there exists no "probable grounds" for a (3) No investigation shall be undertaken of any alleged particular complaint. Under such conditions, this finding would have violation of a law, rule, regulation, or standard of conduct not some appearance to enforcement officials of invocation of the "judge in effect at the time of the alleged violation. of its own membership" doctrine. While conceding that this standard probably would remain untested, the committee feels it should be a This limitation insures that the committee can function in its part of a code of standards in the interest of, and as a safeguard for, investigative capacity only from the date the authorizing resolution the House as a whole. becomes effective. It prohibits the committee from reaching to a prior point in time unless the act or practice was existing before the effective (2) A Member, officer, or employee of the House of Repre- date of the applicable standard and continued thereafter. sentatives shall adhere to the spirit and the letter of Rules The committee also considered limiting the initiation or continuance of the House and to the rules of duly constituted com- of any investigation of any Member for a period immediately prior to mittees thereof. any primary or general election in which the subject Member may be It is also unlikely that the above standard ever will have to meet a candidate. While the general objectives of such a restraint are desir- the tests of enforcement. Its purpose in the code is to restate and able, the practical effect could be one that would introduce more reemphasize the importance of the precedents of decorum and con- hazards than it would eliminate. The other general powers and limi- sideration that have evolved in the House over the years. These tations, plus the bipartisan character of the committee, should be precedents are more than mere politeness; they are the essence of the adequate to prevent abuses that might arise from "timed" allegations. order of the House. (4) A member of the Committee shall be ineligible to par- The committee heard recommendations that it draw standards to ticipate, as a member of the committee, in any committee reduce the number of time-consuming quorum calls, govern attend- proceeding relating to his official conduct. In any case in ance on the floor and in committee meetings, and deal with seemingly which a member of the committee is ineligible to act as a unfair and dilatory legislative tactics. Such proposals were considered, member of the committee under the preceding sentence, the but proposed drafts illustrated the greater impracticality of this ap- Speaker of the House of Representatives shall designate a proach in comparison with a more general admonition to observe the Member of the House of Representatives from the same spirit of existing and adequate rules and practices. political party as the ineligible member of the committee to From the apportionment chart shown on page 4 of this report, it act as a member of the committee in any committee pro- is clear that the business of the House has multiplied rapidly during ceeding relating to the official conduct of such ineligible our national life. But, as the chart shows, the projected growth for member. the future is even more startling. Many fields of legislation are pres- ent today that were unheard of even a short time ago, and forecasts This provision assures that, in the event a member of the committee for the future appear to offer no hope for reduction in the workload should become the subject of an investigation, he shall be entitled to precisely the same treatment as any Member of the House who is of the House. And although this report is not primarily directed toward legislative efficiency, it is clear that ethical observance of the not a member of the committee. spirit and the letter of the rules of the House and rules of its com- mittees will work toward that objective. 18 19 (3) A Member, officer, or employee of the House of Repre- point toys with the essence of the representative function and is po- sentatives shall receive no compensation nor shall he permit tentially dangerous. For if a Member makes use of the only remedy any compensation to accrue to his beneficial interest from any now available for prevention of conflicts of interest-disqualification source, the receipt of which would occur by virtue of influence of himself from acting in any situation in which he has a private or improperly exerted from his position in the Congress. pecuniary interest-he risks disqualification also of the voice of his The attention of the committee to the general topic of conflicts of constituents. It should be noted, too, that use of the remedy is left interest was in direct proportion to the emphasis that virtually every largely to the option of the individual Member. The remedy, as it now witness put on the subject. There was this emphasis despite: exists, is prescribed in Jefferson's Manual and in rule VIII of the rules of the House. Of the practice of influencing a Congressman's action on Much has been written on the venality of conflicts of interest, real legislation through outright bribery, there were no publicly or seeming, but the dearth of substantive recommendations either to proven instances from 1945 through 1964, although it is or from the committee for absolute means of preventing conflicts is in possible that some bribes were offered or received secretly. all likelihood due to the essential paradox that the concept evokes in There were no publicly known cases of a Congressman selling self-government systems. Whether the motive behind a single act is his vote for an outright cash payment. There was no case in ultimate avarice, genuine unselfishness or a point somewhere between which there was any evidence that a speaker's fee paid to a these poles, what it truly is, is known only in the heart of one man, and Congressman ostensibly for making a speech before an organi- in such cases he must be judged by others humbly. zation (a widespread and perfectly legal practice) had as its real purpose to buy the Congressman's vote, which would (4) A Member, officer, or employee of the House of Repre- have been a crime. There were no publicly known cases of sentatives shall accept no gift of substantial value, directly or a Congressman selling his vote on a bill for the secret promise indirectly, from any person, organization, or corporation of a future job or for some inside information on the stock having a direct interest in legislation before the Congress. market, land values, the commodity market, etc. There Under most circumstances the giving and receiving of gifts is an were no publicly known cases in which it was proven that a expression of genuine unselfishness, and is evidence of the civilization Congressman had been offered or accepted a campaign which man has achieved. The same act, however, can be a badge of the contribution made for the express purpose of buying his depths to which he sometimes sinks-meaning bribery. vote on a particular issue.¹ The extreme cases present no problems in any attempt to define Nevertheless the committee sought to define and approach the sub- proper conduct. It is in the middle area that the problems arise. This ject in such a way that a standard seeking to prevent conflicts of in- is the area of the intended quid for the quo, the potlatch, and contains terest would be reasonably meaningful and to some degree enforceable. the even further complication of timing factors which might be de- The generally understood notion is that conflicts of interest occur scribed as casting bread upon the waters. when one's governmental responsibilities are to any degree affected, The ill-motivated giving or receiving of gifts certainly has no place or appear to be affected, by his or her personal economic interests. in government, but to make a flat prohibition against this most This definition is adequate until an attempt is made to prove what human expression would be artificial and unenforceable. fits the definition and where a legislator's community of interest with The committee fully realizes the considerable subjectivity of this his constituents ceases and conflict of interest commences. standard, but believes that, given the facts to test the standard, the A substantial body of law already exists covering certain types of subjectivity can be resolved, and that, otherwise, the potential overt duality, but that law is weak in that it, too, is incapable of problem of extraordinary gifts may be beyond definition. penetrating the indivisibility of the human and human motivations. (5) A Member, officer, or employee of the House of Rep- In every lawmaker, there is also some living-maker, and the instincts resentatives shall accept no honorarium for a speech, which compel him to provide are essentially competitive. These writing for publication, or other similar activity, from any instincts are fundamental. Yet they must be suppressed in the role person, organization, or corporation in excess of the usual of the lawmaker except when the action in question is simultaneously and customary value for such services. and, to no greater degree, beneficial to all the constituents for whom the representative is serving in a brokerage function. It could be The acceptance of an honorarium by any person, a Member of Congress or otherwise, for a speech or presence is a durable and honor- argued that even this condition could be further tempered if a greater able practice, provided, of course, that it is just that and no more. public benefit might stem from voting a position contrary to the When the fee offered a Member of the Congress is in excess of what constituent but in the interest of the Member. another person of equal public importance could command, the Clearly all these possibilities are totally incapable of examination except in the subjective sense and, therefore, this standard is so stated. Member is presented a serious ethical problem. In such circumstance, To imagine the test, one must first know all the facts and then apply the excess is either a gift or a campaign contribution, and properly should be treated separately and appropriately reported. an equally ideal unselfish judgment. To attempt to define beyond this The committee recognizes that political practices in the 435 con- 1 Legislators and the Lobbyists," (p. 3) a publication of Congressional Quarterly Service. gressional districts vary widely, and that the honorarium has been 91-235 0-68-1 20 21 more usual in some than in others. The committee wants to emphasize When the purpose is not stated in adequate, advance notice, the its belief that receipt of a proper honorarium constitutes no abuse, contributions must be considered as meant for campaign purposes but to warn that it is something else if a so-called honorarium is a and treated just as if notice to that effect had been stated. subterfuge for the gift of money intended for other purposes. It is that (8) A Member of the House of Representatives shall kind of abuse to which the above code provision is directed. retain no one from his clerk hire allowance who does not (6) A Member of the House of Representatives shall keep perform duties commensurate with the compensation he his campaign funds separate from his personal funds. receives. He shall convert no campaign funds to personal use in excess A subject widely commented upon to the committee was the prac- of reimbursement for legitimate and verifiable prior cam- tice of hiring relatives from the clerk hire allowance. Recommenda- paign expenditures. He shall expend no funds from his cam- tions for dealing with the subject ranged from complete prohibition paign account not attributable to bona fide campaign to approval. The question was preempted with the passage of the purposes. Postal Revenue and Federal Salary Act of 1967, which, in effect, The committee recognizes the political process as essentially an ad- prohibits the hiring of any relatives by Government officials. versary one. Aspirants to seats in the House of Representatives are, to Within the same general area, however, the subject of reasonable some degree, planning and campaigning to unseat the incumbent at performance of duties by employees, regardless of relationship, was all times. The incumbent counters these efforts if he is to remain the raised. The need for conscientious performance was stated in the incumbent. The degree of subtlety, whether called tactics by the one 1958 Code of Ethics. It commands all persons in Government service or exposure by the other, lessens as an election approaches, but it to "Give a full day's labor for a full day's pay; giving to the per- must be understood that campaigning is a continuing process, not one formance of his duties his earnest effort and best thought. This that commences with the sound of a bell and ends with the wave of a principle must be kept in mind by the Member making an appoint- flag. ment and by the person appointed. The costs of this process are the subject of existing law and proposed legislation. The committee recognizes the importance of realistic cor- RECOMMENDATION NO. IV-FINANCIAL DISCLOSURE rupt practices legislation in the total context of standards of official conduct. But, within the scope of this code of official conduct, it is Amendment of the rules of the House to require that Members, the meaningful separation and proper application of campaign funds officers, principal assistants to Members and officers, and professional versus personal funds that is important. Otherwise, there is grave staff members of committees shall, not later than April 30, 1969, and danger of the presence of potential sources of conflicts of interest. by April 30 of each year thereafter, file with the Committee on should be noted that the reimbursement for prior expenditures Standards of Official Conduct a report disclosing certain financial provided for in the standard is not an exception to the general proposi- interests, as described below. The interest of a spouse or any other tion. Its purpose is to take notice of the continuing and overlapping party, if constructively controlled by the person reporting, shall be nature of campaign expenditures by providing a degree of flexibility considered to be the same as the interest of the person reporting. The in the financing of them without any sacrifice of the principal objective report shall be in two parts, hereinafter designated "part A" and of the standard. "part B." Part A (7) A Member of the House of Representatives shall treat as campaign contributions all proceeds from testimonial (1) List the name, instrument of ownership, and any position dinners or other fund-raising events if the sponsors of such of management held in any business entity doing a substantial affairs do not give clear notice in advance to the donors or business with the Federal Government or subject to Federal participants that the proceeds are intended for other purposes. regulatory agencies, in which the ownership is in excess of $5,000 Political fundraising practices vary widely across the country, but fair market value as of the date of filing or from which income of one in fairly general use is the testimonial dinner. Like many other $1,000 or more was derived during the preceding calendar year. topics mentioned in this report, the practice is capable of a high Do not list any time or demand deposit in a financial institution, purpose or of abuse. In this instance, the motive behind the act is or any debt instrument having a fixed yeild unless it is convertible not as important as the assurance that all participants in the event to an equity instrument. are fully aware of what their role is. If an event is for raising campaign (2) List the name, address, and type of practice of any pro- funds, and that purpose is clearly stated (for example, in imprinting fessional organization in which the person reporting, or his spouse, on the tickets), not only is the donor aware of the purposes to which is an officer, director, or partner, or serves in any advisory his contribution will be put, but, equally important, the Member is capacity, from which income of $1,000 or more was derived during in no doubt as to the uses to which he is permitted to put the funds the preceding calendar year. and as to the reporting he is required to make under law. If, on the (3) List the source of each of the following items received during other hand, the testimonial is intended to provide a gift for the the preceding calendar year: unlimited use of the Member, that fact should be equally clear and (a) Any income for services rendered (other than from the the political implications open for full observance. U.S. Government) exceeding $5,000. 22 23 (b) Any capital gain from a single source exceeding $5,000, Proponents of the broadest disclosure seemed to take axiomatically other than from the sale of a residence occupied by the that under this scrutiny, conflicts of interest would be eliminated. person reporting. Opponents held with the same conviction that compelling disclosure (c) Reimbursement for expenditures (other than from the of one's personal finances would deter and eventually eliminate U.S. Government) exceeding $1,000 in each instance. qualified persons from public office. Campaign receipts shall not be included in this report. The committee feels that a true position falls between these extremes Information filed under part A shall be maintained by the Committee and that there is a totally justifiable point at which some financial on Standards of Official Conduct and made available at reasonable disclosure is necessary to equip the voters with enough information to hours to responsible public inquiry, subject to such regulations as the make a proper judgment at the polls, but that disclosure beyond that committee may prescribe including, but not limited to, regulations point is unnecessary and, in truth, is an invasion of one's privacy. requiring identification by name, occupation, address, and telephone The purposeful and premeditated conflict of interest is not, and number of each person examining information filed under part A and cannot be, the target of a financial disclosure technique. As was noted regulations requiring the committee promptly to notify each Member earlier, these situations are rare, and common sense suggests that, if of the House of Representatives of each instance of an examination an outright bargaining of one's legislative influence could be contem- of information filed under part A by such Member. plated, the same person would not hesitate to falsify any type of filing imposed upon him. To unearth and punish a violation of the code or Part B applicable statutes in this area would present no greater problem than to treat a misfiling, SO it must be concluded that the code and the (1) List the fair market value (as of the date of filing) of each statutes are adequate to deal with flagrant abuses of legislative item listed under paragraph 1 of part A and the income derived authority. therefrom during the preceding calendar year. The remaining area of what is commonly referred to as conflict of (2) List the amount of income derived from each item listed interest refuses to yield to such easy definition. In fact, if rule VIII 2 under paragraphs 2 and 3 of part A. were literally applied, any legislation requiring appropriations could The information filed under part B shall be sealed by the person be construed to contain a "direct personal or pecuniary interest" filing and shall remain sealed unless the Committee on Standards of since it theoretically affects taxes, the quality of investments' and Official Conduct, pursuant to its investigative authority, determines perhaps other extremely remote interests. by a vote of not less than seven members of the committee that the While precedent has provided the solution to this technicality, it examination of such information is essential in an official investiga- illustrates that conflict of interest is a matter of proximity or degree of tion by the committee and promptly notifies the member concerned personal or pecuniary interest rather than an absolute state. Therefore, of such determination. The committee may, by a vote of not less in the absence of any precise definition, it is the judgment and in- than seven members of the committee, make public any portion of stincts of the member voting that provide the first test of whether the the information unsealed by the committee under the preceding representative function is being compromised for personal gain. As a sentence and which the committee deems to be in the public interest. practical matter, it is the governing criterion. Any person required to file a report who has no interests covered In the totally ideal legislative circumstance, the judgment of the by any of the above provisions shall file a report SO stating. Member blends into that of his constituency and expresses itself In any case in which a person required to file a sealed report under unequivocally. To the extent then that any vote is less than ideal is this part B is no longer required to file such a report, the committee the failure of this synthesis, and systems that will improve the com- shall return to such person, or his legal representative, all sealed munication and understanding toward this objective are justifiable. reports filed by such person under part B and remaining in the posses- It is toward this goal that financial disclosure is worthy. It works sion of the committee. to keep the person reporting ever mindful of where the accumulation Financial disclosure brought the most positive opinions of any of his estate has occurred and keeps before him the fact that his first subject that came before the committee. The overwhelming majority obligation-his legislative duty-may not be even subconsciously of the testimony favored application of some form of disclosure to subverted to his own interests. It further works to keep before those Members, officers and certain employees of the House. But while he represents the areas where his personal financial interests lie so there were passionate demands for exposure of every minute detail that they may judge whether his interests are contrary to their own, of fiscal involvement, the committee also heard the completely oppo- and, if so, whether to a sufficient degree that he fails to adequately site view that such disclosure would be an unwarranted invasion of represent them. privacy. The majority of the recommendations supporting disclosure No apology need be made for the fact that the proper role of the stressed and defended the principle of disclosure but only a few placed legislator is to express the very direct interests of his constituency. emphasis on the objectives the technique was intended to serve. If his own be the same or different interests and he votes either posi- A matter of such sensitivity, having generated such extremes of tion, there is no proof that he acted from conflict of interest. Whether, opinion, needs the most careful scrutiny. The one thing strikingly in fact, it was or was not is known but to himself. absent from the arguments was any evidence that the results claimed 2 Rule VIII. Every Member shall be present within the Hall of the House during its sittings, unless would in fact obtain, and that the conclusions were not largely excused or necessarily prevented; and shall vote on each question put, unless he has a direct personal or speculative. pecuniary interest in the event of such question. 24 25 The legitimate objectives of financial disclosure, then, are to serve It can be argued with considerable merit that point 3 of the "Code as a deterrent reminder to the person filing and to acquaint the voters of Official Conduct," along with the means for enforcement recom- with the areas in which it is possible for a conflict of interest to occur. mended in this report, is sufficient to monitor conflicts of interest, thus It must follow that only such information as serves those objectives obviating any need for financial disclosure. The committee did not can be validly required. overlook this alternative. It concluded that even if both approaches The method of financial disclosure recommended in this report seeks became duplicative in effect rather than complementary, the better to accomplish these objectives. The means would require a two-part judgment was to err on the side of duplication. type of disclosure. One part, aimed primarily at the deterrent objec- The committee was told that "not only Congress, but the churches, tive, would be sealed and not made public except under unusual con- the professional societies, the universities, the research organizations, ditions. This portion would contain specific items of valuation and the corporations, in fact all organizations and all of us are being pro- income-information which is not essential to the public judgment pelled, willy-nilly, into an era in which ethics must become a dominant objective. concern if we are to survive" (Dr. Franklin Kilpatrick; hearings, The other part, which would be made public, would identify certain August-September 1967, p. 23). The committee is mindful of the fact assets, business, or professional affiliations and the sources of outside that Members of the House of Representatives are as entitled to pri- income, any of which might be persuasive of the judgment of the Member in his legislative role. The committee made a careful analysis vacy as any other citizen. But because they are the closest link between other citizens and their Government, it is appropriate that they take of factors capable of doing this, and strongly feels that only this much this extra measure of ethical concern. information is essential to the objectives earlier stated. For instance, ownership in business entities having no essential RECOMMENDATION NO. V.--APPLICATION TO CANDIDATES dealings with the Federal Government, or even minimal holdings of this type, do not present an opportunity for conflict of interest. The That the Chairman of National Political Committees, in committee appreciates the difficulty that might arise in some instances turn, recommend to candidates seeking nomination or elec- of determining whether a holding meets the criteria stated in para- tion to the House of Representatives, under the sponsorship graph (1) of part A above; namely, that the entity in question does of the respective parties, that such candidates comply with a substantial business with the Federal Government or is subject to all provisions of the Code of Official Conduct insofar as they Federal regulation. One such example would be a diversified mutual are applicable. fund having changing components. In such uncertain cases, where honest differences of opinion can be expected, to err on either side is The committee saw the equity of requiring aspirants to seats in the unlikely to do harm to the objectives of the reporting requirement. House of Representatives to abide by the same rules, especially with Assets such as financial deposits, Government bonds, or even cor- respect to financial disclosure, as apply to incumbents. Technically porate bonds lacking any provision for conversion to equity instru- it was stopped from doing so if the Code of Official Conduct was placed ments similarly are incapable of enhancement by improper legislative in the rules of the House rather than being made statutory, a step influence. Thus, such interests do not serve the objectives of disclosure which would require Senate approval. It seems reasonable that and therefore present no reason to be revealed. These exclusions also candidates would be willing to meet any requirements which might would prevent any person from calculating the net worth position of later apply to them as Members. the reporting individual, information which the committee feels most The committee feels that the most reasonable means of communi- strongly is unnecessary to any goals of financial disclosure. cating this suggestion is through the machinery of the national political The committee notes the limitations on this or any form of financial parties. disclosure for the objectives mentioned. The principal limitation is If experience shows abuse of this recommendation by candidates to that it never reveals the present situation but rather the past, which the detriment of incumbents, legislation to correct the abuses can be may bear no relevancy to the purposes of disclosure. The technique considered later. as a rule of the House is difficult, if not impossible, to impose on a nonincumbent candidate. Also, it is not meaningful with respect to RECOMMENDATION NO. VI.-COUNTERPART FUNDS a first-year report since it would cover a period prior to the service of the person reporting and conversely the final year of service of any That the Committee on House Administration recom- person covered would not be reported. Likewise, transactions wholly mend revisions in law and regulations to provide for stand- contained in a calendar year and not existing at the time of filing ardizing the controls over the use by committees of counter- would escape report unless they led to gains or income which would part funds for travel outside the United States and full be reported. While these defects limit the effectiveness of the effort, reporting and adequate review of such reports in the House the committee feels that on balance they do not outweigh the possible of Representatives. benefit. Any Members or employees of committees of Congress traveling in a Again it is emphasized that nothing in this section pertains to the foreign country on official business of the U.S. Government are re- disclosure of moneys received for campaign purposes. That subject quired by law to use U.S. funds on deposit in that country's currency is treated elsewhere in this report. if such funds exist. These balances for the most part arose from lend- lease, foreign aid, or some similar arrangement. Recovery of them by 26 27 the U.S. Treasury is for all practical purposes limited to their use in about a Member that is needed to reach a judgment as to whether the country of origin. proximity to any of the sources disclosed is sufficient to create a The law further spells out per diem limits of these funds available to potential conflict of interest. official travelers but that law has been revised a number of times with The absence of greater detail in this recommendation is due to the the result that it now is often confusing as to authorized uses and committee's decision that the specific steps to accomplish its general accountability. aims should be recommended by the appropriate legislative com- Without question this confusion has led to some actual abuse and mittee. This committee notes that considerable legislation aimed at certainly to some appearance of abuse in the utilization and reporting the general objectives has been introduced in recent years. It reiterates of these disbursements. That the amounts involved in actual abuses that it feels no preference for any specific bill. But it feels strongly have been relatively miniscule is no justification for less than meticulous that stricter management and reporting of campaign finances are stewardship over these like any other public moneys. needed to complement the recommendations it is making in the areas The committee feels that recommendations from the appropriate assigned to it by the House. legislative source to clarify all aspects of this law will be a step toward eliminating any uncertainty from this area and removing both error and suspicion. RECOMMENDATION NO. VII.-CORRUPT PRACTICES ACT That the House take prompt action to review the entire body of law in areas covered by the Federal Corrupt Prac- tices Act and enact measures realistically applicable to present day situations. No report, responsive to the committee's assignment, could omit consideration of the entire scope of campaign fund practices. Any consideration of standards of conduct for legislators must include the question of whether the sources of campaign money requirements are capable of either overtly or subconsciously compromising the legisla- tive independence of the recipient. No system can be foreseen which will obviate the raising of such funds, SO the only remedy appears to be strict management of them. This must be done if the public's con- cern over conflicts of interest is to be lessened. Testimony received by the committee in this area was largely general in scope. However, two specific areas were singled out: (1) elimination of unrealistic limits on campaign spending, and (2) more extensive and realistic disclosure of campaign contributions and expenditures than is required under present law. It should be made clear that disclosure of political campaign finances is entirely separate and apart from the committee's recommendation, elsewhere in this report, for a method of financial disclosure as a means of enabling the public to monitor possible conflicts of interest. Campaign funds in the hands of a candidate for Congress are in a unique category. Although he has possession of them and may elect how they shall be spent, their status is transitional until they have in fact been spent. If they are expended for legitimate purposes either in a current or any future campaign for public office, they effectively pass through his hands without any trace of ownership or title re- maining, and the accountability for them, in and out, is covered by the Federal corrupt practices law. If on the other hand some of these funds are expended for personal use, not related to his campaign, that portion becomes personal income, reportable for Internal Revenue purposes and possibly subject to disclosure under recommendations contained elsewhere in this report. Together, these two disclosure requirements would provide the fullest exposure of financial details APPENDIX 90TH CONGRESS IST SESSION H. RES. 418 PART IV IN THE HOUSE OF REPRESENTATIVES CONCLUSION APRIL 6, 1967 Mr. COLMER, from the Committee on Rules, reported the following resolution; The observations and recommendations contained in this report which was referred to the House Calendar and ordered to be printed by no means cover all the subjects debated in the committee. Many additional areas were discussed, but failed of a position in the report APRIL 13, 1967 because, in the judgment of the committee, they either were of minimal Considered and agreed to importance or were in a category for which no appropriate recommen- dations were immediately apparent. This is not to say that the com- RESOLUTION mittee feels there are great remaining areas demanding of attention. Rather, it is to say that, in the judgment of the committee, a con- Resolved, That there is hereby established a standing committee tinuing committee can deal with remaining areas more deliberately of the House of Representatives to be known as the Committee on and effectively, and with minimal risk that the cure may be worse Standards of Official Conduct (hereafter referred to as the "commit- than the disease. In the interim, none of these areas impresses the tee"). The committee shall be composed of twelve Members of the committee as of sufficient weight to do conceivable harm if action on House of Representatives. Six members of the committee shall be them is deferred. members of the majority party and six shall be members of the It is regrettable that this report does not lend itself to the same minority party. precision as reports on some other subjects. Concepts and ideas simply SEC. 2. The jurisdiction of the committee shall be to recommend will not permit themselves to be as neatly arranged as measurable as soon as practicable to the House of Representatives such changes facts. in laws, rules and regulations as the committee deems necessary to This committee boasts of no superior wisdom or special insight, but establish and enforce standards of official conduct for Members, it does assure the House of Representatives that it has, with some officers, and employees of the House. experience, sincere humility, genuine reverence for the institution SEC. 3. The committee may hold such hearings and take such itself, and, above all, true respect for each individual Member, con- testimony as may be necessary to carry out the purposes of this sidered the contents of this report and deems adoption of its recom- resolution. mendations in the best interest of all. (29) (28) 31 " '(4) to give consideration to the request of a Member, officer, or employee of the House of Representatives, for an advisory opinion with respect to the general propriety of any current or proposed conduct of such Member, officer, or employee and, with appropriate deletions to assure the privacy of the 90TH CONGRESS, 2D SESSION individual concerned, to publish such opinion for the guidance RESOLUTION of other Members, officers, and employees of the House of Representatives. Amending House Resolution 418, Ninetieth Congress, to continue the Committee " '(d) (1) No resolution, report, recommendation, or advisory on Standards of Official Conduct as a permanent standing committee of the opinion relating to the official conduct of a Member, officer, or House of Representatives, and for other purposes. employee of the House of Representatives shall be made, and no Resolved, That House Resolution 418, Ninetieth Congress, is investigation of such conduct shall be undertaken, unless approved amended to read as follows: by the affirmative vote of not less than seven members of the committee. "That clause 1 of Rule X of the Rules of the House of Represent- atives is amended— " '(2) Except in the case of an investigation undertaken by the "(1) by redesignating paragraphs (r), (s), and (t) as paragraphs committee on its own initiative, the committee may undertake an (s), (t), and (u), respectively; and investigation relating to the official conduct of an individual Member, "(2) by inserting immediately after paragraph (q) the following officer, or employee of the House of Representatives only (A) upon new paragraph: receipt of a complaint, in writing and under oath, made by or sub- "(r) Committee on Standards of Official Conduct, to consist of mitted to a Member of the House of Representatives and transmitted twelve Members as follows: six members of the majority party and to the committee by such Member, or (B) upon receipt of a complaint, six members of the minority party.' in writing and under oath, directly from an individual not a Member "SEC. 2. Rule XI of the Rules of the House of Representatives of the House of Representatives if the committee finds that such is amended— complaint has been submitted by such individual to not less than "(1) by redesignating clauses 18 through 30 as clauses 19 three Members of the House of Representatives who have refused, through 31, respectively; in writing, to transmit such complaint to the committee. " "(2) by inserting immediately after clause 17 the following '(3) No investigation shall be undertaken of any alleged violation new clause: of a law, rule, regulation, or standard of conduct not in effect at the " '18. Committee on Standards of Official Conduct. time of the alleged violation. " '(a) Measures relating to the Code of Official Conduct. " '(4) A member of the committee shall be ineligible to participate, " '(b) Measures relating to financial disclosure by Members, as a member of the committee, in any committee proceeding relating officers, and employees of the House of Representatives. to his official conduct. In any case in which a member of the committee " '(c) The committee is authorized- is ineligible to act as a member of the committee under the preceding '(1) to recommend to the House of Representatives, from sentence, the Speaker of the House of Representatives shall designate time to time, such legislative or administrative actions as the a Member of the House of Representatives from the same political committee may deem appropriate to establish or enforce stand- party as the ineligible member of the committee to act as a member of ards of official conduct for Members, officers, and employees of the committee in any committee proceeding relating to the official the House of Representatives; conduct of such ineligible member. "(2) to investigate, subject to paragraph (d) of this clause, " '(e) For the purpose of carrying out the foregoing provisions of any alleged violation, by a Member, officer, or employee of the this clause, the committee, or any subcommittee thereof, is author- House of Representatives, of the Code of Official Conduct or of ized to sit and act at such times and places within the United States, any law, rule, regulation, or other standard of conduct applicable whether the House is in session, has recessed, or has adjourned, to to the conduct of such Member, officer, or employee in the per- hold such hearings, and to require, by subpena or otherwise, the formance of his duties or the discharge of his responsibilities and, attendance and testimony of such witnesses and the production of after notice and a hearing, shall recommend to the House of such books, records, correspondence, memorandums, papers, and docu- Representatives, by resolution or otherwise, such action as the ments, as it deems necessary. Subpenas may be issued under the signa- committee may deem appropriate in the circumstances; ture of the chairman of the committee or any member of the committee '(3) to report to the appropriate Federal or State authorities, designated by him, and may be served by any person designated by with approval of the House of Representatives, any substantial such chairman or member.'; evidence of a violation, by a Member, officer, or employee of the "(3) by inserting immediately before 'the Committee on Vet- House of Representatives, of any law applicable to the perform- erans' Affairs' where it appears in clause 22, as SO redesignated ance of his duties or the discharge of his responsibilities, which by paragraph (1) of this section, the following: 'the Committee may have been disclosed in a Committee investigation; and on Standards of Official Conduct-on resolutions recommending action by the House of Representatives with respect to an indi- (30) 32 33 vidual Member, officer, or employee of the House of Representa- " '8. A Member of the House of Representatives shall retain no one tives as a result of any investigation by the committee relating from his clerk hire allowance who does not perform duties commen- to the official conduct of such Member, officer, or employee of surate with the compensation he receives. the House of Representatives;'; "As used in this Code of Official Conduct of the House of Rep- "(4) by striking out 'paragraph 26' in clause 27 (j), as SO re- resentatives— designated by paragraph (1) of this section, and inserting in lieu "(a) the terms "Member" and "Member of the House of thereof 'clause 27'; and Representatives" include the Resident Commissioner from "(5) by inserting immediately after 'Rules,' where it appears Puerto Rico; and in clause 31, as SO redesignated by paragraph (1) of this section, '(b) the term "officer or employee of the House of Represen- the following: 'on Standards of Official Conduct,'. tatives" means any individual whose compensation is disbursed "SEC. 3. Clause 2 of Rule XIII of the Rules of the House of Rep- by the Clerk of the House of Representatives. resentatives is amended by striking out 'clause 21' and inserting in lieu thereof 'clause 22'. "RULE XLIV "SEC. 4. (a) The Rules of the House of Representatives are amended "Financial Disclosure by adding at the end thereof the following new rules: "Members, officers, principal assistants to Members and officers, "RULE XLIII and professional staff members of committees shall, not later than April 30, 1969, and by April 30 of each year thereafter, file with the "Code of Official Conduct Committee on Standards of Official Conduct a report disclosing certain financial interests as provided in this Rule. The interest of a ""There is hereby established by and for the House of Repre- spouse or any other party, if constructively controlled by the person sentatives the following code of conduct, to be known as the "Code of reporting, shall be considered to be the same as the interest of the Official Conduct": person reporting. The report shall be in two parts as follows: is '1. A Member, officer, or employee of the House of Representa- tives shall conduct himself at all times in a manner which shall reflect "PART A creditably on the House of Representatives. " 2. A Member, officer, or employee of the House of Representa- "1. List the name, instrument of ownership, and any position of tives shall adhere to the spirit and the letter of the Rules of the House management held in any business entity doing a substantial business of Representatives and to the Rules of duly constituted committees with the Federal Government or subject to Federal regulatory thereof. agencies, in which the ownership is in excess of $5,000 fair market " '3. A Member, officer, or employee of the House of Representa- value as of the date of filing or from which income of $1,000 or more tives shall receive no compensation nor shall he permit any compensa- was derived during the preceding calendar year. Do not list any time tion to accrue to his beneficial interest from any source, the receipt or demand deposit in a financial institution, or any debt instrument of which would occur by virtue of influence improperly exerted from having a fixed yield unless it is convertible to an equity instrument. his position in the Congress. "2. List the name, address, and type of practice of any professional " '4. A Member, officer, or employee of the House of Representa- organization in which the person reporting, or his spouse, is an officer, tives shall accept no gift of substantial value, directly or indirectly, director, or partner, or serves in any advisory capacity, from which from any person, organization, or corporation having a direct interest income of $1,000 or more was derived during the preceding calendar in legislation before the Congress. year. '5. A Member, officer, or employee of the House of Representa- '3. List the source of each of the following items received during tives shall accept no honorarium for a speech, writing for publication, the preceding calendar year: or other similar activity, from any person, organization, or corpora- '(a) Any income for services rendered (other than from the tion in excess of the usual and customary value for such services. United States Government) exceeding $5,000. " '6. A Member of the House of Representatives shall keep his " '(b) Any capital gain from a single source exceeding $5,000, campaign funds separate from his personal funds. He shall convert no other than from the sale of a residence occupied by the person campaign funds to personal use in excess of reimbursement for legiti- reporting. mate and verifiable prior campaign expenditures. He shall expend no '(c) Reimbursement for expenditures (other than from the funds from his campaign account not attributable to bona fide cam- United States Government) exceeding $1,000 in each instance. paign purposes. Campaign receipts shall not be included in this report. 7. A Member of the House of Representatives shall treat as Information filed under Part A shall be maintained by the Com- campaign contributions all proceeds from testimonial dinners or other mittee on Standards of Official Conduct and made available at reason- fund-raising events if the sponsors of such affairs do not give clear able hours to responsible public inquiry, subject to such regulations as notice in advance to the donors or participants that the proceeds are the Committee may prescribe including, but not limited to, regulations intended for other purposes. requiring identification by name, occupation, address, and telephone 34 35 number of each person examining information filed under Part A and Congress. Today, that condition still obtains in the House of Repre- regulations requiring the committee promptly to notify each Member sentatives. of the House of Representatives of each instance of an examination of Cases of breaches of ethics by Members of the House thus far, if information filed under Part A by such Member. they appeared to warrant official attention, have been considered pursuant to resolutions of censure or expulsion in accordance with the " 'PART B constitutional power of each House to prescribe rules for the conduct of its Members (art. I, sec. 5). These have been handled through '1. List the fair market value (as of the date of filing) of each item resolutions offered on the floor or through the creation of select listed under paragraph 1 of Part A and the income derived therefrom investigating committees. during the preceding calendar year. There have been only three instances of expulsion from the House. '2. List the amount of income derived from each item listed under All three occurred during the 37th Congress in the Civil War year of paragraphs 2 and 3 of Part A. 1861. Resolutions to expel have been submitted on various occasions, "The information filed under this Part B shall be sealed by the per- but, except for the three instances, they either failed to receive the son filing and shall remain sealed unless the Committee on Standards necessary two-thirds vote or else a resolution of censure was of Official Conduct, pursuant to its investigative authority, determines substituted. by a vote of not less than seven members of the Committee that the There have been 16 instances of censure by the House, the last examination of such information is essential in an official investigation one occurring in 1921. The House has imposed censure against a by the Committee and promptly notifies the Member concerned of any Member for (1) unparliamentary language during House proceedings such determination. The Committee may, by a vote of not less than against a fellow Member or against the Speaker, or other disorderly seven members of the Committee, make public any portion of the conduct; (2) physical assault against another Member for words information unsealed by the Committee under the preceding sentence spoken in debate; (3) treasonable words uttered in the course of and which the Committee deems to be in the public interest. proceedings; (4) presentation of a resolution construed as insulting to 'Any person required to file a report under this Rule who has no the House; (5) corrupt acts, that is, sale of appointments to service interests covered by any of the provisions of this Rule shall file a academies; distribution of credit mobilier stock to Members below report so stating. value in order to influence their actions; (6) abuse of the privilege of 'In any case in which a person required to file a sealed report under inserting material in the Congressional Record, in this case obscene Part B of this Rule is no longer required to file such a report, the Com- material, and (7) presentation of resolutions of an incendiary nature mittee shall return to such person, or his legal representative, all sealed purportedly approving "mutiny and murder" in a section of the reports filed by such person under Part B and remaining in the pos- country then a subject of negotiation between the United States and session of the Committee. Great Britain. 'As used in this Rule- There has not been a consistent procedure for the examination of '(1) the term "Members" includes the Resident Commissioner allegations and charges leading to expulsion or censure. from Puerto Rico; and Other situations have involved resolutions declaring a Member's " '(2) the term "committees" includes any committee or sub- seat forfeited because of his acceptance of another Federal office in committee of the House of Representatives and any joint com- contravention of article I, section 6, clause 2, of the Constitution. mittee of Congress, the expenses of which are paid from the The House has refused, also, to readmit a Member whom it would contingent fund of the House of Representatives.' have expelled for commission of an infamous crime but for his resig- "(b) Paragraph (a) of clause 16 of Rule XI of the Rules of the House nation (Hinds' "Precedents of the House of Representatives," vol. I, of Representatives is amended by striking out 'rules, joint rules' and sec. 464). It is the custom of the House, however, to defer such final inserting in lieu thereof 'rules and joint rules (other than rules or joint action as expulsion of Members under criminal charges pending rules relating to the Code of Official Conduct or relating to financial disposition of the cases in the court of last resort (Cannon's "Precedents disclosure by a Member, officer, or employee of the House of Repre- of the House of Representatives," vol. VI, sec. 238). Neither will the sentatives)'. House consider expulsion proceedings for offenses committed by Members in preceding Congresses (Hinds', supra, vol. II, secs. SHORT HISTORY OF RULES OF CONDUCT ENFORCEMENT IN THE HOUSE 1284-1285). OF REPRESENTATIVES Officers of the House have been removed or suspended by vote of the House in acting on reports by standing or select committees, or on (From Legislative Reference Service, Library of Congress) resolutions offered from the floor (Hinds', supra, vol. I, sec. 287). Prior to July 24, 1965, when, for the first time in the history of the On one occasion, the House requested Executive authority to prosecute its clerk for embezzlement of public funds (Hinds', supra, vol. I, sec. Congress, the Senate adopted a substitute proposal for Senate Resolu- 287). tion 388 creating its Select Committee on Standards and Conduct On another occasion, the House, by resolution, instructed one of its (110 Congressional Record 16939), no institutionalized means of standing committees to make an investigation of the conduct of enforcing standards of conduct had existed in either body of the certain officers of the House while they were officers of the preceding House (Hinds', supra, vol. III, sec. 2617). 36 37 As respects employees of the House, of its committees, and of Members, certain statutory provisions relate to aspects of their created, or the emoluments whereof shall have been in- dismissal. Employees of Members are subject to removal at any time creased during such time; *** by the Member, with or without cause (2 U.S.C. 92). The services of (4) Article I, section 9, clause 8- professional members of committee staffs may be terminated by ma- No title of nobility shall be granted by the United States; jority vote of the committee (2 U.S.C. 72a(a)). (Note: Clerks are and no Person holding any Office of Profit or Trust under usually appointed and dismissed by the chairman with the approval them, shall, without the consent of the Congress, accept of of the committee.) (Hinds', supra, vol. IV, sec. 4533; Cannon's, supra, any present, Emolument, Office, or Title, of any kind what- vol. VIII, secs. 2206, 2207). Employees of the Clerk, Sergeant at Arms, ever, from any King, Prince, or foreign State. Doorkeeper, and Postmaster are subject to removal for violation of any of the provisions of 2 U.S.C. 85-89 (2 U.S.C. 90). The Committee (5) Article VI, clause 3- on House Administration is charged with the duty of inquiring into The Senators and Representatives before mentioned, and the enforcement or violation of sections 85-89 (2 U.S.C. 91). the Members of the several State Legislatures, and all Aside from acting under such statutory provisions, the House has executive and judicial Officers, both of the United States declined to interfere, for instance, with the Clerk's power of removing and of the several States, shall be bound by Oath or Affirma- his subordinates (Hinds', supra, vol. I, sec. 249). tion, to support this Constitution; *** In addition, Members of Congress, officers, and employees of the House are subject to various statutes, provisions, and rules relating B. STATUTES to ethical conduct listed below, and to the Code of Ethics for Gov- ernment Service (72 Stat., pt. 2, 812, July 1958). (1) CODE OF ETHICS (72 Stat., pt. 2, B 12, July 11, 1958).- In summary, on the whole, there has been no consistent procedure Resolved by the House of Representatives (the Senate con- for examining alleged infractions, for recommending changes in or curring), That it is the sense of the Congress that the follow- additions to the House rules or regulations respecting ethics, or for ing Code of Ethics should be adhered to by all Government initiating enforcement thereof. In some instances, as in regard to the employees, including officeholders: enforcement of the Code of Ethics adopted in 1958, no formal pro- cedure for enforcement has been created. CODE OF ETHICS FOR GOVERNMENT SERVICE CONSTITUTIONAL AND STATUTORY PROVISIONS AND RULES OF THE Any person in Government service should: HOUSE GOVERNING THE CONDUCT AND ACTIVITIES OF MEMBERS OF CONGRESS 1. Put loyalty to the highest moral principles and to country above loyalty to persons, party, or Government (Compiled by the Library of Congress, Legislative Reference Service, department. Robert L. Tienken, Legislative Attorney, American Law Division) 2. Uphold the Constitution, laws, and legal regula- tions of the United States and of all governments therein and never be a party to their evasion. A. CONSTITUTION 3. Give a full day's labor for a full day's pay; giving (1) Article I, section 5, clause 2- to the performance of his duties his earnest effort and Each House may determine the Rules of its Proceedings, best thought. punish its Members for disorderly Behavior, and, with the 4. Seek to find and employ more efficient and economi- Concurrence of two-thirds, expel a member. cal ways of getting tasks accomplished. 5. Never discriminate unfairly by the dispensing of (2) Article I, section 6, clause 1-- special favors or privileges to anyone, whether for re- They shall in all cases, except Treason, Felony and Breach muneration, or not; and never accept, for himself, or his of the Peace, be privileged from arrest during their Attend- family, favors or benefits under circumstances which ance at the Session of their respective Houses, and in going might be construed by reasonable persons as influencing to and returning from the same; and for any Speech or De- the performance of his governmental duties. Place. bate in either House, they shall not be questioned in any other 6. Make no private promises of any kind binding on the duties of office, since a Government employee has no private word which can be binding on public duty. (3) Article I, section 6, clause 2- 7. Engage in no business with the Government, either No Senator or Representative shall, during the Time for directly or indirectly, which is inconsistent with the which he was elected, be appointed to any civil office under conscientious performance of his governmental duties. the Authority of the United States, which shall have been 8. Never use any information coming to him confi- dentially in the performance of governmental duties as a means of making private profit. 38 39 9. Expose corruption wherever discovered. (10) Federal Crop Insurance Act [7 U.S.C. 1514(f)].-Provides 10. Uphold these principles, ever conscious that a that section 22 of title 41 shall not apply to any crop insurance public office is a public trust. agreements made under chapter 36 of title 7, United States Code (2) Bribery [18 U.S.C. 201(c)].-Soliciting or receiving a bribe for (insurance by Federal Crop Insurance Corporation against loss of being influenced: (1) in the performance of any official act, or (2) crops planted for harvest in 1948 and thereafter). for the violation of an official duty, or (3) respecting fraud, on the (11) Commodity Credit Corporation: Interest of Members of Congress United States; penalty, $20,000 fine or three times the monetary (15 U.S.C. 714 I).-Provides that section 22 of title 41 shall apply to equivalent of the thing of value, whichever is greater, or imprison- all contracts or agreements by the Commodity Credit Corporation ment for not more than 15 years, or both, plus possible disqualification except contracts or agreements of a kind which the corporation may from holding office. enter into with farmers participating in a program of the corporation. (3) 18 U.S.C. 201(g).-Soliciting or receiving anything of value for (12) U.S. information and educational exchange programs [22 U.S.C. himself or because of any official act performed or to be performed by 1472 (b)].-Exempts from the provisions of section 22 of title 41, him; penalty, $10,000 fine, or imprisonment for not more than 2 years, contracts (including contracts with governmental agencies and inter- or both. governmental organizations of which the United States is a member) (4) Outside compensation for particular services (18 U.S.C. 203 (a)).- for the carrying out of its functions. Soliciting or receiving any compensation for services in relation to (13) Contracts for flood control (33 U.S.C. 702m).-Provides that any proceeding, contract, claim, controversy, etc., in which the United contracts with the United States for the acquisition of land by private States is a party or has a direct or substantial interest, before any sale or condemnation for flood control purposes as set forth in the department, agency, court martial, officer or civil or military commis- statute shall contain a clause as required by 41 U.S.C. 22. sion; penalty, $10,000 fine and imprisonment for not more than 2 (14) Indian Claims Commission (25 U.S.C. 700).-Prohibits a years, or both, plus disqualification from holding office. Senator, Member, or Delegate to Congress from practicing before the (5) Practice in Court of Claims (18 U.S.C. 204).-Such practice Commission during his term in office. forbidden; penalty, $10,000 fine or imprisonment for not more than 2 (15) Specific representation for claims [46 U.S.C. 1223(e)].-Makes years, or both, plus disqualification from holding office. it unlawful for any contractor or charterer who holds any contract (6) Acceptance or solicitation to obtain appointive public office (18 made under the authority of the Merchant Marine Act to employ any U.S.C. 211).-Receiving as a political contribution or otherwise, any- Member of Congress as an attorney either with or without compensa- thing of value for promising use of or using influence to obtain for any tion. person an appointive office or place under the United States; penalty, (16) Use of name by persons practicing before Government departments $1,000 fine, or imprisonment for not more than 1 year, or both. or agencies (5 U.S.C. 101).-Prohibits any person or firm practicing (7) Contracts (18 U.S.C. 431).-Prohibits contracts with Govern- before a Government department or agency from using the name of ment by Members of Congress; penalty, $3,000 fine, and voidance of any Member. such contracts. 18 U.S.C. 433 exempts from the provisions of section (17) Accounting of foreign local currencies [22 U.S.C. 1754(b)].- 431 contracts by the United States with corporations for the general Requires committee members and employees to make to the chairman benefit of the corporation, and contracts entered into under the RFC of such committee an itemized report showing the amounts and dollar Act, the Agricultural Adjustment Act, the Federal Farm Loan Act, equivalents of each foreign currency expended and the amounts of the Emergency Farm Mortgage Act of 1933, the Farm Credit Act of dollar expenditures made from appropriated funds in connection with 1933, the Home Owners Loan Act of 1933, the Farmers' Home Admin- travel outside the United States, together with the purposes of the istration Act of 1946, the Bankhead-Jones Farm Tenant Act. expenditures including lodging, meals, transportation, and other (8) Interest of Members of Congress in contracts (41 U.S.C. 22).- purposes. Committee chairmen prepare consolidated reports of such Provides that in every contract entered into with the United States, total expenditures within 60 days of the beginning of each session for there shall be inserted a provision that no Member shall be admitted forwarding to the Committee on Appropriations in the Senate, or, to any share or part of such contract or any benefit to arise thereupon. respectively, the House Committee on Administration. Exempted are contracts entered into under the statutes listed in 18 (18) Reports of expenditures as members of American delegations to U.S.C. 433. certain international conferences (22 U.S.C. 276c-1).-Requires reports (9) Commodity Credit Corporation: Insurance of Cotton [7 U.S.C. of expenditures by Members who are delegates to: the Interparlia- 1383(a), 1386].-Section 1383(a) authorizes the Commodity Credit mentary Union, the NATO Parliamentarian's Conference, the Canada- Corporation to place insurance of every nature taken out by it on United States Interparliamentary Group, the Mexico-United States cotton, with insurance agents who are bona fide residents of and Interparliamentary Group, or any similar interparliamentary group doing business in the State where the cotton is warehoused. Section of which the United States is a member. Such reports to be filed with 1386 provides that section 22 of title 41, and sections 431 and 433 the chairman of the Senate Foreign Relations and House Foreign of title 18 shall be applicable to loans or payments made under Affairs Committee, respectively. Such chairmen report respective con- section 1383(a). solidated statements within 60 days of the beginning of each session. 40 41 The Senate report is filed with the Senate Appropriations Committee, (28) Soliciting or receiving political contributions in a Federal the House report with the House Administration Committee. building (18 U.S.C. 603).-Prohibited by persons mentioned in 18 (19) Deductions of pay for absence from Congress (2 U.S.C. 39).- U.S.C. 602; penalty, fine of not more than $5,000 or imprisonment Provides for deductions from the monthly salaries of Members for for not more than 3 years, or both. each day of absence from the Senate or House unless the reason (29) Solicitation of political contributions from persons on relief (18 assigned is illness of the Member or his family. U.S.C. 604).-Solicitation or receipt of assessments, contributions, (20) Deductions for delinquent indebtedness (2 U.S.C. 40a).-Pro- etc., for political purposes from persons known by solicitor to be vides for deductions from any salary, mileage, or expense money due receiving benefits or compensation provided by a Federal act appro- any Member for any delinquent indebtedness owed by a Member to priating funds for work relief, or relief purposes, is punishable by fine the Senate or House. of not more than $1,000, or imprisonment of not more than 1 year, (21) Employment by Members of clerks in Washington, D.C., or or both. in home district, Only (H. Res. 294, 88th Cong., 110 Cong. Rec. 19710- (30) Solicitation of political contributions from corporations or labor 19711; H. Res. 7, 89th Cong., 111 Cong. Rec. 21; made permanent law, unions (18 U.S.C. 610).-Prohibits solicitation or receipt from na- 79 Stat. 281, P.L. 89-90, July 27, 1965).-Provides that no person tional banks, corporations, and labor unions, of political contributions employed by a Member shall be paid from any clerk hire allowance for use in any primary, convention, caucus, or general election in- if such person does not perform the services for which he receives volving Federal office. Penalty for such conduct-fine of not more such compensation in the offices of such Member in Washington, than $1,000, or imprisonment of not more than 1 year, or both; and D.C., or in the State or the district which such Member represents. if violation is willful, fine of not more than $10,000 or imprisonment (22) Franking privilege.-Each Member may send under frank, of not more than 2 years, or both. official business mail (39 U.S.C. 4161), public documents (39 U.S.C. (31) Soliciting political contributions from persons or firms having 4162), the Congressional Record (39 U.S.C. 4163), and seeds and contracts with the United States (18 U.S.C. 1).-Penalty for such reports from the Department of Agriculture (39 U.S.C. 4164), only. conduct, fine of not more than $5,000, or imprisonment for not more (23) Academy appointments.-Each Member of the House is than 5 years, or both. limited to Academy appointments from his own congressional district (32) Paying either for registration or voting in Federal primaries and (10 U.S.C. 4342, Military Academy) (10 U.S.C. 6958, Naval Academy) elections [Voting Rights Act, 1965, 79 Stat. 443, sec. 11(c)].-Prohibits (10 U S.C. 9342, Air Force Academy). paying or offering to paymeither for registration or voting in Federal (24) Filing of accounts under Corrupt Practices Act (2 U.S.C. 246).- primaries and elections. Penalty is fine of not more than $10,000, or Requires filing by each candidate for Senate and House, a list of imprisonment of not more than 5 years, or both. contributions received by him, a list of campaign expenditures, with designated exceptions, a statement of every promise made by him or C. RULES any person for him relative to appointment of persons to any public or (a) House of Representatives private employment, for the purpose of securing support in- his (1) Applicability of "Jefferson's Manual"-House Rule XIII.- candidacy. (25) Limitations on campaign expenditures (2 U.S.C. 248).-Limits Provides that rules of parliamentary practice comprised in "Jefferson's campaign expenditures to amounts prescribed by State laws and by Manual" shall govern the House in all cases to which they are appli- cable, and in which they are not inconsistent with the standing rules Corrupt Practices Act. Sets forth exceptions regarding items of and orders of the House. expenditure. (2) Disqualification in voting-Rule VI I, section 1.-Provides that (26) Promises or pledges by candidate (2 U.S.C. 249).-Prohibits a Member shall not vote on a question where he has a direct personal candidates for election to Congress from promising or pledging directly or pecuniary interest. See also "Jefferson's Manual" ("House Rules or indirectly, the appointment or use of his influence or support for Manual", par. 376). the appointment of any person to any public or private employment, (3) Speaker shall preserve order and decorum-Rule I, section 2. for the purpose of procuring support in his candidacy; penalties, (4) Decorum and debate-Rule XIV.- 2 U.S.C. 252-provides fine of not more than $1,000 or imprisonment for not more than 1 year, or both, for violations of the above provisions, Section 1: Obtaining the floor and method of address ("confine and a fine of not more than $10,000 and imprisonment for not more himself to the question under debate, avoiding personality"). than 2 years for willful violations. See also 18 U.S.C. 599 as to Section 4: Call to order of a Member on his transgressing the penalty for promises of appointment by a candidate. rules during sessions. (27) Solicitation or receipt of political contributions by a Member or Section 5: Words taken down if a Member is called to order. a candidate from Federal employees (18 U.S.C. 602).-Such solicitation Section 7: Prohibition on exiting while Speaker is putting the or receipt is punishable by a fine of not more than $5,000, or by question; prohibition on passing between a Member who has the imprisonment for not more than 3 years, or both. floor and the Chair while the Member is speaking; prohibition against wearing a hat or smoking while on the floor (as respects 42 43 movement while the House is telling, see "Jefferson's Manual" Section 3: No offensive reference to any State. ["House Manual", par. 506]). Sections 4 and 5: Procedure for calling a Senator to order if he Section 8: Prohibition against introducing to the House or transgresses the rules of the Senate. calling attention of the House, during a session, to people in the Section 7: Prohibition against introducing people in the galleries galleries. or calling attention to them. (5) Prohibition against speaking impertinently, or beside the ques- (3) Procedure for conducting executive sessions.-Rule XXXVI.- tion, superfluously or tediously-("Jefferson's Manual," see "House Section 3: Secrecy of communications from the President. Manual," par. 359). Section 4: Expulsion for disclosure of secret proceedings. (6) Prohibition against use of indecent language against the pro- ceedings of the House; no reflections on prior determinations, unless a motion to rescind is intended ("Jefferson's Manual," see "House Manual," par. 360). (7) Prohibition against mentioning Member by name, or reviling, nipping or using unmannerly words against him ("Jefferson's Manual," see "House Manual," par. 361). (8) No arraigning the motives of those proposing a measure ("Jeffer- son's Manual,' par. 361). (9) No disturbing another Member in his speech by hissing, cough- ing, spitting, speaking or whispering to another, etc. ("Jefferson's Manual," see "House Manual," par. 364). (10) Requiring a Member to withdraw where he has persisted despite repeated calls to order ("Jefferson's Manual," see "House Manual," par. 366). (11) No criticism of the Senate ("Jefferson's Manual," see "House Manual;" par. 371), nor personal abuse, innuendo or ridicule of the President ("Jefferson's Manual," see "House Manual," par. 370). (12) No Member to be present when a bill or any business concerning himself is debating, although he may be heard in certain instances ("Jefferson's Manual," see "House Manual," par. 375). (13) Proceedinge against a Member by the House, not by a com- mittee ("Jefferson's Manual," see "House Manual," par. 321). (14) Rule on questions of privilege-House Rule IX. (15) Absence of privilege for speeches made outside the House ("Jefferson's Manual," see "House Manual," par. 302). (16) Punishment by House of a Member for things of which the House has cognizance ("Jefferson's Manual," see "House Manual," par. 303-307). (NoTE.-On January 31, 1963, the House restricted travel by members of the House Committee on Agriculture, Banking and Cur- rency, Education and Labor, and Judiciary, to the United States, but the Rules Committee has permitted specific requests for members of such committees to attend specific functions abroad; see Congres- sional Quarterly, week of April 19, 1963, No. 16, p. 631.) (b) Senate (1) Self-disqualification in Voting-Rule XII, section 2.-Requires statement of reasons for declining to vote. Provides for Senate per- mission to excuse a Senator from voting. (2) Debates and decorum.-Rule XIX.- Section 1: Form of address and rule on interruption. Section 2: No imputation of unworthy motive or conduct to another Senator. COMMITTEE ON STANDARDS OF OFFICIAL CONDUCT OUTSIDE MEMBERS STUDY OF PRIOR WORK COORDINATE PRIOR AND WITNESS TESTIMONY STATES AND BY SELECT WITH SENATE PENDING TESTIMONY OTHER CODES COMMITTEE COMMITTEE LEGISLATION SOURCE MATERIALS COMMITTEE DELIBERATES AND DRAFTS REPORTS. H. RES. 418 DIRECTS RECOMMENDING "SUCH CHANGES IN LAWS, RULES AND REGULATIONS AS NECESSARY TO..." ENFORCE ESTABLISH STANDARDS OF OFFICIAL CONDUCT RECOMMEND INVESTIGATIVE JURISDICTION RECOMMEND LEGISLATIVE JURISDICTION, OR OTHERWISE DEFINE STANDARDS AS THE 304 OF ALL LINS. THIS MUST BE CONSIDERED IN TWO ASPECTS: RULES, REGULATIONS, AND CODE OF ETHICS THAT AFFECT MEMBERS OF THE HDJSE. INCLUDING BUT NOT LIMITED TO... INVESTIGATIVE JURISDICTION ONLY STATUTORY PROVISIONS EXISTING PROPOSED CONSTITUTIONAL PROVISIONS: Code of Ethics (T2 Stat. PL. 2. 812, 7/11/58) ARTICLE L. SECTION 5. CLAUSE 2 Bribery and Other Conflicts (18 U.S.C. 201, 203, 204, 211, SECTION 6, CLAUSES AND 2 431, 433, 602. 603, 604, 610. 611) SECTION 9, CLATSE 8 Contracts Interest (4) U.S.C. 22: 22 U.S.C. 1472(b); ARTICLE VI CLAUSE 3 33 U.S.C. 702m) TOGETHER Franking Privilege (39 U.S.C. 4161-4164) THESE CONSTITUTE Employment of Clerks (P.L. 89-90. 7/27/65) EXISTING Deductions--Abxence and Debt (2 U.S.C. 39 40a) RULES OF THE HOUSE: Counterpart--Forelyn Accounting [22 U.S.C. 1754(b), "STANDARDS 22 U.S.C. 276(n)-1) RULE XIII; RULE VIII SECT. 1; RULE I SMCT. 2, RULE AIV SECTS. 4, Corrupt Practices, etc. (2 D.S.C. 246, 248 249) PARAGRAPHS 302, 303-307, 321, 359-361, 363, 362, OF OFFICIAL 366, 370, yn, 375 Paying for Registration or Voting [79 Stat. 443, 111(e)] RULE IX CONDUCT Agency Connections [CCC-T D.S.C. 1383(a): 1306]--[FCIA- 7 U.S.C. 15)4(f) 05 U.S.C. 7140) Indian Claims Commission-125 U.S.C. 70o) Representation Claims [46 U.S.C. 1223(e) PROPOSED RULE CHANGES Use of Name (5 U.S.C. 101) INVESTIGATION CHARGES OF VIOLATIONS OF ETHICS, CHARGES OF SPECIFIC VIOLATIONS OF LAW HOUSE RULES, AND CONSTITUTIONAL PROVISIONS COMMITTEE EVALUATES AND MOVES TO DISMISS, INVESTIGATE OR SEPARATE ALLEGATION INTO COMPONENTS AND REFER APPROPRIATE PORTIONS SUBCOMMITTEE OF CHAIRMAN AND VICE CHALIMAN, NEET WITH SUSJECT, OTHERWISE ASSESS THE ALLEGATION AND RECOMMEND TO FULL COMMITTES ACTION TO BE TAKEN 45 MEMBER MAY COMMITTEE MAY PROCESSING OF ALLEGATION AND ALSO REQUEST MAKE INQUIRY FORMAL MOTION COMMITTEE TO ADVISORY OPINIONS ON ITS OWN EVALUATE THE ALLEGATION ON "ETHICS" IMIATIVE MATTERS PASS RESOLUTION: PASS RESOLUTION: 1. RECOMMENDING DISMISSAL OF CHARGES RECOMMENDING DISMISSAL OF CHARGES 2. RECOMMENDING FORWARDING OF INFORMATION RECOMMENDING REPRIMAND DEVELOPED TO APPROPRIATE ENFORCEMENT 3. RECOMMENDING CENSURE BRANCH RECOMMENDING EXPELSION FINDINGS FORMAL MEANS AND FINDINGS CONDITIONS ACCEPTANCE OF ALLEGATIONS ENFORCEMENT PROCEDURE COMMENCES HERE 22 R U PM-VACATIONS SKED S-29 BY RICHARD E. LERNER WASHINGTON (UPI) -- PRESIDENT FORD GOLFED AS THE GUEST OF AT LEAST FOUR CORPORATIONS WHEN HE WAS A CONGRESSMAN, ACCORDING TO THE WHITE FORD HOUSE, BUT HE QUIT ACCEPTING SUCH HOSPITALITY WHEN HE BECAME VICE PRESIDENT IN 1973. PRESS SECRETARY RON NESSEN, IN ANSWER TO QUESTIONS FROM REPORTERS LIBRARY TUESDAY, SAID FORD ATTENDED GOLF OUTINGS WHILE A MICHIGAN CONGRESSIMN AS THE GUEST OF CORPORATE OFFICIALS OF BETHLEHEM STEEL CO., THE ALUMINUM CORPORATION OF AMERICA, FIRESTONE RUBBER CORP., AND U.S. STEEL CORP. NESSEN SAID FORD WOULD NOT HAVE ACCEPTED THE GOLFING INVITATIONS "IF HE THOUGHT THERE WAS ANYTHING WRONG WITH IT" AND BELIEVES HE HAS "LIVED UP TO THE SPIRIT" OF THE 1968 CONGRESSIONAL ETHICS CODE BANNING ACCEPTANCE OF GIFTS OF SUBSTANTIAL VALUE. "THE PRESIDENT DOES NOT CONSIDER A GOLF GAME TO BE A GIFT OF SUBSTANTIAL VALUE," NESSEN SAID, THE CONTROVERSY AROSE LAST WEEK WHEN WILLIAM WHYTE. U.S. STEEL'S CHIEF WASHINGTON LOBBYIST, DISCLOSED HIS COMPANY TREATED FORD TO EXPENSE-PAID TRIPS TO ITS LODGE AT PINE VALLEY GOLF CLUB IN NEW JERSEY IN 1964, 1969 AND 1973. THE WHITE HOUSE SAID FORD WAS WHYTE'S GUEST FOR WEEKENDS IN 1964 AND 1971. WHYTE ALSO SAID U.S. STEEL PAID FOR TWO FORD STAYS AT ITS LODGINGS NEAR DISNEY WORLD IN FLORIDA IN 1972 AND 1974. THE WHITE HOUSE DECLINED COMMENT ON THAT. WHYTE, A LONGTIME FRIEND OF FORD'S, IS A REGULAR MEMBER OF THE PRESIDENT'S GOLFING FOURSOME AT THE BURNING TREE CLUB AT SUBURBAN BETHESDA, MD. NESSEN SAID FORD STOPPED ACCEPTING SUCH HOSPITALITY WHEN HE BECAME VICE PRESIDENT IN 1973. "AS AN AVID GOLFER, THE PRESIDENT OVER THE YEARS HAS ACCEPTED INVITATIONS TO PLAY WITH FRIENDS AT DIFFERENT CLUBS AROUND THE COUNTRY AND HAS INVITED FRIENDS TO PLAY AT HIS CLUB," NESSEN SAID. NESSEN WAS ASKED WHERE FORD HAD PLAYED. "I KNOW, FOR INSTANCE, THE FIRESTONE GOLF COURSE, WHICH IS OWNED BY THE FIRESTONE EMPLOYES. HE HAS PLAYED ON THAT COURSE. I DON'T KNOW THE CIRCUMSTANCES OF THAT. I KNOW HE PLAYED ON A COURSE OWNED BY THE EMPLOYES OF ALCOA, I BELIEVE, AND ANOTHER COURSE, I BELIEVE, IS A BETHLEHEN STEEL COURSE SOMEUHERE. THESE ARE THREE I KNOW ABOUT." NESSEN WAS ASKED WHETHER THE COMPANIES PAID LODGING AND FOOD_COSTS AS IN THE U.S. STEEL CASE. HE SAID: "I DON'T KNOW THAT THERE WAS ANY LODGING OR FOOD COSTS, OR JUST AN AFTERNOON OF GOLF." HE WAS ASKED IF FORD HAD PAID HIS TRAVEL EXPENSES TO ANY OF THE COURSES. "HE DOESN'T RECALL," NESSEN SAID. "SOME HE PAID FOR, SOME HE WAS GUEST AND, AS I SAY, SOMETIMES HE WAS THE HOST." WITHOUT NAMING FORD, CARTER TOOK AN OBVIOUS JAB AT HIM MONDAY IN A CAMPAIGN SPEECH ATTACKING WASHINGTON POLITICIANS WHO GET "FINANCIAL SUPPORT FROM LOBBYISTS." "THEY BELONG TO THE SAME CLUBS, THEY PLAY GOLF ON THE SAME GOLF COURSES, THEY COMMUNICATE WITH ONE ANOTHER, THEY SUPPORT ONE ANOTHER," HE SAID. NESSEN SAID THAT HE HAD READ IN THE NEWSPAPERS THAT CARTER, WHILE GOVERNOR OF GEORGIA, HAD ACCEPTED FREE RIDES ON A PLANE OWNED BY THER LOCKHEED AIRCRAFT CORP. OR THE COCA-COLA CO. RULES OF THE HOUSE OF REPRESENTATIVES RULES OF THE HOUSE OF REPRESENTATIVES $ 939. Rule XLIII. Rule XLIII. $ 939. in force since the Forty-third Congress. Discussion of the importance of Jefferson's Manual as an authority in congressional procedure (VII, Enization, or corporation having a direct interest in 1020, 1049; VIII, 2501, 2517, 2518, 3330). legislation before the Congress. 5. A Member, officer, or employee of the House RULE XLIII. 3 Cynil '68 of Representatives shall accept no honorarium for CODE OF OFFICIAL CONDUCT. a speech, writing for publication, or other similar activity, from any person, organization, or corpora- There is hereby established by and for the House tion in excess of the usuaband customary value for of Representatives the following code of conduct, to such services. be known as the 'Code of Official Conduct": 6. A Member of the House of Representatives 8 939. Official con- 1. A Member, officer, or employee shall keep his campaign funds separate from his duct of Members, officers, or of the House of Representatives shall personal funds. Unless specifically provided by law, employees of the conduct himself at all times in a man- he shall convert no campaign funds to personal use House. ner which shall reflect creditably on in excess of reimbursement for legitimate and veri- the House of Representatives: fiable prior campaign expenditures and he shall 2. A Member, officer, or employee of the House of expend no funds from his campaign account not Representatives shall adhere to the spirit and the attributable to bona fide campaign purposes. letter of the Rules of the House of Representatives 7. A Member of the House of Representatives and to the rules of duly constituted committees shall treat as campaign contributions all proceeds thereof. from testimonial dinners or other fund raising 3. A Member, officer, or employee of the House events if the sponsors of such affairs do not give of Representatives shall receive no compensation clear notice in advance to the donors or participants nor shall he permit any compensation to accrue to that the proceeds are intended for other purposes. his beneficial interest from any source, the receipt 8. A Member of the House of Representatives of which would occur by virtue of influence improp- shall retain no' one from his clerk hire allowance erly exerted from his position in the Congress. who does not perform duties commensurate with 4. A-Member, officer, or employee of the House of the compensation he receives. Representatives shall accept no gift of substantial 9.A Member, officer or employee of the House of value, directly or indirectly, fromany person, orga- Representatives shall not discharge or refuse to hire any individual, or otherwise discriminate [644] [645] RULES OF THE HOUSE OF REPRESENTATIVES R # 940. Rule XLIV. against any individual with respect to compensa- 10. A ] tion, terms, conditions, or privileges of employ- who has ] ment, because of such individual's race, color, commissi religion, sex, or national origin. or more As used in this Code of Official Conduct of the should 1'0 House of Representatives-(a) the terms "Mem- of each ( ber" and "Member of the House of Representa- should re tives" include the Resident Commissioner from meeting < Puerto Rico and each Delegate to the House; and Whole H (b) the term "officer or employee of the House of proceedir Representatives" means any individual whose sumption compensation is disbursed by the Clerk of the to the H House of Representatives. This rule was adopted on April 3, 1968 (H. Res. 1099, 90th Cong.). The jurisdiction of the Committee on Standards of Official Conduct was also redefined by this resolution. The rule was amended in the 92d Congress to bring the Delegates from the District of Columbia, Guam and the Virgin Islands within the definition of "Member" (H. Res. 5, Jan. 22, 1972, p. 144; H. Res. 1153, Oct. 13, 1972, p. 36021-23). The rule was further amended in the 94th Congress by adding in clause (6) the words "Unless specifically provided by law" and by adding clause (0) (H. Res. 5, Jan. 14, 1975, p. -). Clause (10) was adopted by the House on April 16, 1975 (H. Res. 46, 94th Cong.). RULE XLIV FINANCIAL DISCLOSURE. Members, officers, principal assistants to Mem- § 940. Financial re- bers and officers, and professional port disclosing cer- tain financial staff members of.committees shall, not interests. later than April 30, 1969, and by April 30 of each year thereafter, file with the Com- [040] FORD LIBRARY 074800 22 R W PM-VACATIONS SKED 9-29 BY RICHARD E. LERNER WASHINGTON (UPI) -- PRESIDENT FORD GOLFED AS THE GUEST OF AT LEAST FOUR CORPORATIONS WHEN HE WAS A CONGRESSMAN, ACCORDING TO THE WHITE HOUSE, BUT HE QUIT ACCEPTING SUCH HOSPITALITY WHEN HE BECAME VICE PRESIDENT IN 1973. PRESS SECRETARY RON NESSEN, IN ANSWER TO QUESTIONS FROM REPORTERS TUESDAY, SAID FORD ATTENDED GOLF OUTINGS WHILE A MICHIGAN CONGRESSMAN AS THE GUEST OF CORPORATE OFFICIALS OF BETHLEHEM STEEL CO., THE ALUMINUM CORPORATION OF AMERICA, FIRESTONE RUBBER CORP., AND U.S. STEEL CORP. NESSEN SAID FORD WOULD NOT HAVE ACCEPTED THE GOLFING INVITATIONS "IF HE THOUGHT THERE WAS ANYTHING WRONG WITH IT" AND BELIEVES HE HAS "LIVED UP TO THE SPIRIT" OF THE 1968 CONGRESSIONAL ETHICS CODE BANNING ACCEPTANCE OF GIFTS OF SUBSTANTIAL VALUE. "THE PRESIDENT DOES NOT CONSIDER A GOLF GAME TO BE A GIFT OF SUBSTANTIAL VALUE," NESSEN SAID. THE CONTROVERSY AROSE LAST WEEK WHEN WILLIAM WHYTE. U.S. STEEL'S CHIEF WASHINGTON LOBBYIST, DISCLOSED HIS COMPANY TREATED FORD TO EXPENSE-PAID TRIPS TO ITS LODGE AT PINE VALLEY GOLF CLUB IN NEW JERSEY IN 1964, 1969 AND 1973. THE WHITE HOUSE SAID FORD WAS WHYTE'S GUEST FOR WEEKENDS IN 1964 AND 1971. WHYTE ALSO SAID U.S. STEEL PAID FOR TWO FORD STAYS AT ITS LODGINGS NEAR DISNEY WORLD IN FLORIDA IN 1972 AND 1974. THE WHITE HOUSE DECLINED COMMENT ON THAT. WHYTE, A LONGTIME FRIEND OF FORD'S, IS A REGULAR MEMBER OF THE PRESIDENT'S GOLFING FOURSOME AT THE BURNING TREE CLUB AT SUBURBAN BETHESDA, MD. NESSEN SAID FORD STOPPED ACCEPTING SUCH HOSPITALITY WHEN HE BECAME VICE PRESIDENT IN 1973. "AS AN AVID GOLFER, THE PRESIDENT OVER THE YEARS HAS ACCEPTED INVITATIONS TO PLAY WITH FRIENDS AT DIFFERENT CLUBS AROUND THE COUNTRY AND HAS INVITED FRIENDS TO PLAY AT HIS CLUB," NESSEN SAID. NESSEN WAS ASKED WHERE FORD HAD PLAYED. "I KNOW, FOR INSTANCE, THE FIRESTONE GOLF COURSE, WHICH IS OWNED BY THE FIRESTONE EMPLOYES. HE HAS PLAYED ON THAT COURSE. I DON'T KNOW THE CIRCUMSTANCES OF THAT. I KNOW HE PLAYED ON A COURSE OWNED BY THE EMPLOYES OF ALCOA, I BELIEVE, AND ANOTHER COURSE, I BELIEVE, IS A BETHLEHEM STEEL COURSE SOMEWHERE. THESE ARE THREE I KNOW ABOUT. NESSEN WAS ASKED WHETHER THE COMPANIES PAID LODGING AND FOOD. COSTS AS IN THE U.S. STEEL CASE. HE SAID: "I DON'T KNOW THAT THERE WAS ANY LODGING OR FOOD COSTS, OR JUST AN AFTERNOON OF GOLF. HE WAS ASKED IF FORD HAD PAID HIS TRAVEL EXPENSES TO ANY OF THE COURSES. "HE DOESN'T RECALL," NESSEN SAID. "SOME HE PAID FOR, SOME HE WAS GUEST AND, AS I SAY, SOMETIMES HE WAS THE HOST." WITHOUT NAMING FORD, CARTER TOOK AN OBVIOUS JAB AT HIM MONDAY IN A CAMPAIGN SPEECH ATTACKING WASHINGTON POLITICIANS WHO GET "FINANCIAL SUPPORT FROM LOBBYISTS." "THEY BELONG TO THE SAME CLUBS, THEY PLAY GOLF ON THE SAME GOLF COURSES, THEY COMMUNICATE WITH ONE ANOTHER, THEY SUPPORT ONE ANOTHER," HE SAID. NESSEN SAID THAT HE HAD READ IN THE NEWSPAPERS THAT CARTER, WHILE GOVERNOR OF GEORGIA, HAD ACCEPTED FREE RIDES ON A PLANE OWNED BY ITHER LOCKHEED AIRCRAFT CORP. OR THE COCA-COLA CO. MEMORANDUM 68) THE WHITE HOUSE September 29, 1976 WASHINGTON Mr. President: Here are golf trips in 1968 June 28, 1968 - Gum Dip Open Tournament at Akron, Ohio You left at 10:00 a.m. and returned the same evening at 10:30 p.m. (Firestone supplied Lockheed JetStar for you and other Members of Congress) Mrs. Ford did not go. November 9th to 16th - Puerto Vallarta, Jalisco, Mexico (This was fishing rather than golfing) Teledyne Ryan furnished plane from Page at National for you and Mrs. Ford and Cong. and Mrs. Wilson to Puerto Vallarta and return to Palm Beach. You paid Mrs. Ford's and your air fare back to Washington from Los Angeles. You also paid your share of the villa that was rented by the five couples (Wilsons, Jamesons, Parmas, Kleins, and you). Air fare back was $279.30. Villa was $271.40. VORD LIBIT MEMORANDUM THE WHITE HOUSE 1969 WASHINGTON September 29, 1976 Trips in 1969 September 22, 1969 You left at 8:00 a.m. from Dulles in Bethlehem plane and went to Grand Rapids for ROSPATCH meeting. Then left Grand Rapids in same plane to Bethlehem, Penn. Played golf and had dinner at Saucon Valley Country Club and returned to National at 10:00 p.m. the same day. This is all I can find for 1969 - Gum Dip Open was scheduled for August 14, 1969 but you cancelled. FORD MEMORANDUM THE WHITE HOUSE 1970 WASHINGTON September 29, 1976 There is only one golf trip in 1970 - November 8th to 15th, 1970 Tryall - Montego Bay, Jamaica You and Mrs. Ford left Friendship on Eastern #995 at 10:55 a.m. on Nov. 8th and returned on Eastern #994 from Montego Bay on Nov. 15th, arriving Friendship at 8:12 p.m. You paid round-trip fare of $348.00 You also paid your share of the Tryall expenses which was divided between you, the Markleys, the Whytes, and the Burkes. Your share was $394.37 FORD LIBRARY MEMORANDUM THE WHITE HOUSE 971 WASHINGTON September 29, 1976 Golf trips for 1971 June 8th and 9th, 1971 Kemper Open Tournament You left National via private plane at 4:30 p.m. on June 8th and arrived at 5:30 p.m. in Charlotte. You stayed over night at Holiday Inn and returned on June 9th at 11:00 p.m. by private plane. You were the personal guest of James Kemper who also invited other Members of Congress. This is all I can find in 1971 is FORD MEMORANDUM THE WHITE HOUSE September 29, 1976 WASHINGTON 1972 Golf dates in 1972 March 31st, 1972 - Palm Desert, Calif. (You were scheduled to speak for two or three GOP functions in Southern California, but you and Mrs. Ford went out a few days early to play golf at Palm Desert with Leon Parma and some others. GOP Committee paid your plane expense for your return trip from Washington to San Diego. Leon Parma arranged flight from San Diego to Palm Desert and back for speaking commitments. You left San Diego via Western 603 on April 7th for Denver where you spoke for Cong. McKevitt. You stayed overnight in Denver and returned to Washington via United #166 at 2:45 p.m. on April 8th. File doesn't show where you stayed in Palm Desert because that was apparently worked out verbally between you and Leon Parma. May 30th to June 1st, 1972 - Kemper Open Tournament. Kemper Insurance Co. chartered a Peidmont plane to take you and other Members of Congress to Charlotte, North Carolina. You stayed at Holiday Inn South in Charlotte until June 1st at 8:00 a.m. when you returned to Washington in the same chartered Piedmont plane. You and other Members were guests of James Kemper. August 25, 1972 - The day after the GOP Convention in Miami you and some others along with the Whytes went to Bay Hill, Florida. I understand you were all' Bill Whyte's guests, but I don't have the details. You stayed until Sunday, August 27th when you had to leave for a GOP event in Milwaukee, Wisc. for Cong. Davis. You drove from Disney World to Orlando where you took Delta #132 to Chicago and North Central #205 to Milwaukee. GOP Committee paid for this transportation and also your flight to Grand Rapids from Milwaukee on North Centra1#984. November 9th to 19th - Montego Bay, Jamaica. Nothing came back in this file to me. But Bill Whyte's office says it was at their expense. (Actually you spoke at a Boy Scout Luncheon here in Washington on at the International Club on November 20th - so he may have considered the above trip a sort of honorarium) FORD THE WHITE HOUSE WASHINGTON 1973 1973 March 29- You and Mrs. Ford left from National Airport 7:25 PM for Orlando, Florida. Met at airport by Bill Whyte and taken to Polynesian Village at Disney World. You were the luncheon speaker on the final day of three-day meeting of the Public Affairs Committee of the U.S. Chamber of Commerce. You left Orlando on April 1 at 2:50 PM. May 29 - You left from Piedmont at National airport via chartered plane for Charlotte, N.C. and the Kemper Pro Am. Your accommodations were at the Holiday Inn South, and the tournament at the Quail Hollow Country Club. Letter of invitation says you were the personal guest of James S. Kemper Jr. You returned to National Airport on May 30 at 8:45 PM via Piedmont. Ticket was purchased by check. June 22- Departed Washington early evening for Clementon, New Jersey, Pine Valley Laurel Ridge Lodge for weekend with the Bill Whytes, returning on Sunday, June 24. My book does not show means of transportation, and I seem to recall your driving there and back. it. FORD MEMORANDUM THE WHITE HOUSE WASHINGTON Mr. President The following trip was not included in information I sent you yesterday because it was prior to the date the law was passed in April of 1968. February 13th to February 20th. Palm Beach Feb. 13th for Lincoln Day speech Montego Bay Feb. 14th to 18th NAM meeting (ladies) Feb. 19th Boca Raton NAM Board meeting - Feb. 20th Boca Raton You left National on National #105 at 2:55 p.m. on Feb. 13th, Mrs. Ford left National via NE #85 at 6:30 p.m. and met you in Miami because she didn't intend to be at the Lincoln Day dinner at which you had to speak. On Feb. 14th you and Mrs. Ford left Miami via Pan Am #437 for Montego Bay. The GOP Committee paid for airline Washington to Miami. You paid fare from Miami to Montego Bay. Record also shows that you made a prior deposit for accommodations at Tryall and paid balance when you left. On Feb. 18th you left Montego Bay in U. S. Steel plane for Boca Raton for the NAM meetings on Feb. 19th and 20th. You were guest of NAM at Boca Raton Hotel. On Feb. 20th you returned to Washington, leaving at 3:00 p.m. from Boca Raton in U. S. Steel plane. FORD AND EXCENSE COMMISSION SECURITIES AND EXCHANGE COMMISSION MCMXXXIV WASHINGTON, D.C. 20549 OFFICE OF THE GENERAL COUNSEL October 27, 1976 BY HAND Philip W. Buchen, Esq. Counsel to the President The White House Washington, D.C. 20500 Dear Mr. Buchen: During the course of our telephone conversation on October 18, 1976, I inquired whether President Ford main- tained any records or possessed any information relating to United States Steel Corporation or William G. Whyte and any payments or other consideration they may have expended on behalf of the President. During the course of the conver- sation, I indicated that, if any such information existed, we would appreciate having access to it to assist the Commission in connection with its on-going inquiry of United States Steel. During the October 18 conversation, we also discussed an October 6, 1976, statement prepared by Mr. Whyte. You indicated that it would be useful to you if the Commission would provide you with a copy of the statement for the pur- pose of determining whether the President has any pertinent information. At that time, I indicated that it would be necessary to seek the express approval of the Commission prior to sending Mr. Whyte's statement to you. The Commission has considered this matter and authorized me to make available to you Whyte's statement. Accordingly, I am enclosing herewith a copy of the statement. I have deleted from the enclosed copy those portions of the statement which discuss unrelated matters. I appreciate your cooperation in this matter. If you have any questions, please do not hestitate to contact me. Sincerly yours, Harvey L. Pott Hs. Harvey Pitt General Counsel Enclosure FORD LIBR. STATEMENT OF WILLIAM G. WHYTE Before the Securities and Exchange Commission October 6, 1976 On Wednesday, September 22, 1976, I appeared before you voluntarily with Mr. Richard M. Hays, Senior General Attorney of the Company, to give testimony relating to your inquiry concerning my employer, United States Steel Corporation. At that time, we produced documents that you had requested of the Company. As you know, we appeared and produced the documents on little more than a day's notice. We did so because I believed at the time, and I still believe, that the Company and I should make every effort to cooperate with the Commission so that this inquiry can be concluded as promptly as possible on the basis of all relevant facts. It is in that spirit that I appear here again today on a voluntary basis. BERALE 1. FORD - 9 - Now, let me turn to other areas of my previous testimony. The first of these concerns weekends and longer vacations with President and Mrs. Ford (all before his Presidency), both at U. S. Steel facilities and elsewhere. While I touched on most of these trips in my testimony, I have recalled other trips as well as addi- tional facts about the trips I did discuss. To avoid piecemeal disclosure, and the embarrassment to the President that such partial disclosure might cause, I have decided to summarize all of the facts that bear on these trips, even at the risk of repetition. Pine Valley As I testified, I recall three visits to the Laurel Ridge Lodge at the Pine Valley Golf Club in Clementon, New Jersey. The first occurred in 1964;- I cannot fix the date any more specifically. In addition to Congressman and Mrs. Ford, the guests were Senator and Mrs. Barry Goldwater and General and Mrs Nathan Twining; I also recall that another U. S. Steel executive, Mr. Ben Chapple, and his wife were also present. The second trip to Pine Valley with the Fords occurred on the weekend of September 19-21, 1969. In 7 addition to Congressman and Mrs. Ford, the guests include ded Senator and Mrs. Gordon Allott and Mr. Rod Markley, LIBRARY - 10 - Vice President of the Ford Motor Company, and Mrs. Markley. Also present were Mr. Heath Larry, Vice Chairman of U. S. Steel, and his wife. Our third and last trip to Pine Valley with Congressman Ford occurred on June 22 through 24, 1973. My recollection is that Mrs. Ford decided not to come at the last minute. Also present were Senator Goldwater and Lt. Gen. (Ret.) and Mrs. Quinn. On each visit to Pine Valley, the party flew between Philadelphia and Washington by corporate aircraft, although on the last visit Congressman Ford may have flown up on a commercial flight (without, I believe, reimburse- ment by U. S. Steel). With this exception, travel between Philadelphia and Washington was by corporate aircraft, and not by automobile (as I indicated in my testimony). All expenses were assumed by U. S. Steel, with the possible exception, as I noted in my earlier testimony, of caddie fees. ORD - 11 - Bay Hill As I wrote you following my testimony, I now recall two visits by Congressman and Mrs. Ford to the Bay Hill facility formerly owned by U. S. Steel, and sold in 1975. With respect to the 1972 Bay Hill visit, I now recall that, following the Miami Beach Republican conven- tion in late August, the Fords drove up from Miami and stayed for two nights. Also present were three Ford children, Mr. and Mrs. Clark MacGregor, Mr. and Mrs. Markley, and our son. I remember that the entire party attended Disney World with me on the Saturday of that weekend. A VIP tour of Disney World was arranged by Disney people down there and we all assumed at the time FO that our tour was free of charge. A month later, however, - 12 - I received a bill from Disney World. This bill, and all other expenses except perhaps caddie fees, were paid by U. S. Steel. It is my recollection that the party returned to Washington on Sunday by commercial aircraft, and that my transportation was reimbursed by the Company. With respect to the second Ford visit to Bay Hill, it is my present recollection that this occurred in 1973 over the weekend from March 31 through April 2, and not in 1970 as my letter erroneously stated. The visit was in connection with a meeting at Disney World of the United States Chamber of Commerce. I was Chairman of the Public Affairs Committee and Congressman Ford spoke to that Committee. Expenses at Bay Hill were paid for by U. S. Steel. The Fords flew down and back on commercial flights, but U. S. Steel paid the cost of their transportation on behalf of the Chamber of Commerce. Rolling Rock I further recall a trip with then-Congressman and Mrs. Ford to the Rolling Rock Club in Ligonier, Pennsylvania. This is not a facility owned by or operated by. U. S. Steel. My recollection is that this trip occurred from August 15 to August 21, 1970. We used guest cards for the club furnished by Buckley Bycrs of Washington, D.C. I believe that each couple drove up in their own - 13 - car. I further recall that each couple paid for its own room at the club, and that golfing expenses were divided among us. I may have purchased a few lunches and dinners for the Fords and was reimbursed by the corporation for these expenses, and for the cost of my own room and golf. Caribbean Trips In my testimony, I referred to four trips to the Caribbean with the Fords in the 1960's. I now recall six Caribbean trips, over a span from 1965 to 1972. Let me summarize the facts of each, as best as I can recon- struct them. The first Caribbean trip was to Eleuthera in 1965, from April 18 to April 25. The Whytes, the Fords and some 29 other couples in a charter-type group stayed in beach cottages at the Cotton Bay Club. My recollec- tion is that Mrs. Whyte and I flew down by commercial aircraft. We shared a cottage with the Fords, and each couple paid for its fair share of the lodging expenses. I do not believe that I was reimbursed for my own expenses by the Company. Both the Fords and we returned to Washington on a plane owned by another company. The second trip, also to Eleuthera, occurred in April 1966. The Fords and the Whytes were joined by STATES FORD - 14 - the Perkins McGuires, and we stayed at the McGuires' home on the island. Virtually all of the meal expenses were assumed by the McGuires. I might have paid for some of Mr. Ford's golf, but find no record of this or of reimbursement for such expenses. I am sure that Mr. Ford paid for some of his expenses. We flew down commer- cially, but we flew back on a U. S. Steel corporate air- craft. I had wanted to stop over in Freeport to see a new cement plant constructed by U. S. Steel, and I invited Mr. Ford to join me. Consequently, a corporate plane took us from Eleuthera to Freeport for this purpose. We spent the night in Freeport (where the cost of Mr. Ford's hotel was probably assumed by U. S. Steel), toured the plant and returned to Washington on the next day by corporate plane. The third Caribbean trip was to Jamaica in February 1968. Mrs. Whyte and I had gone down to the Tryall Golf Club, around February 4 or 5. The Fords joined us from February 13 through February 18. I recall that the cost of accommodations, meals and golf was shared between us. I do not believe that I was reimbursed for any of my expenses. I further recall that both couples flew down commercially. On the trip back, we stopped off in Boca Raton, Florida for a meeting of FORD - 15 - the Board of Directors of the National Association of Manufacturers; Mr. Ford was to address the group. For this reason we flew from Jamaica to Boca Raton on a U. S. Steel corporate aircraft, and flew back to Washington the same way. I referred to the Boca Raton trip on page 76 of my testimony. The fourth Caribbean trip was to Eleuthera in April 1969, again to the home of the McGuires. This time, the Fords and Whytes were joined by the MacGregors. We had no lodging expense. Some incidental expenses for golf, food and drinks were paid for by me, with reimburse- ment by the corporation. I am also sure that Mr. Ford paid for some of his expenses. I believe that travel to and from Eleuthera on this trip was by corporate aircraft. Our last two trips with the Fords to the Caribbean occurred in November of 1970 and 1972, following the elections in each year. On each occasion we were joined by the Markleys. In 1972, we were also joined by Congressman and Mrs. John Jarman. On each occasion, we stayed at the Tryall Golf Club. I have seen memoranda from Mr. Markley which make clear that all expenses of the two trips were shared equally. I do not believe that I received reimbursement from U. S. Steel for my - 16 - expenses. I further recall that commercial transportation was used by all of us both to and from the island. Hawaii In May 1974, then Vice-President Ford and Mrs. Ford joined Mrs. Whyte and me for golf at the Mauna Kea Beach Hotel in Hawaii, following an official visit to Hawaii by the Vice-President during which he spoke at the national Boy Scout convention, an organization in which I have long been active. The Fords flew out and back on Air Force 2. Although I initially paid the hotel bill for both families (Mr. Ford returned to Washington before I did), Mr. Ford shortly thereafter paid me an amount to cover his room and board and certain incidental expenses. The remaining portion of the bill was reimbursed by U. S. Steel. Let me make three further observations about the trips with the Fords that I have just discussed. First, as you can perhaps gather, I have spent - considerable time attempting to reconstruct the facts that relate to these trips. In doing so, I have confined myself to overnight trips and have excluded one-day excursions with the Fords of which there have probably been many over the course of a more-than-20 year friendship. - 17 - Second, while I have done my best to recall all trips with the Fords of longer than one day, I cannot, under oath, exclude the possibility that I may have forgotten one or more. Finally, you should not take away the impression that my relationship with Mr. Ford is confined to these trips. In addition to fairly frequent golf here in Washington, the Fords and the Whytes have entertained each other frequently and on a reciprocal basis -- in our homes and elsewhere. Let me turn finally to my testimony in response to questions concerning payments, loans, property, benefits, or other things of value made or given by U. S. Steel or U. S. Steel executives to Mr. Ford, his campaigns, candidates at his behest, or other governmental officials. In any event, I believe that amplification of my previous testimony would be appropriate: -- concerning testimony on pages 29 and 32 I am aware that the Company maintains hotel suites, principally for employees, but occasionally for guests. I am specifically aware of one such suite - 19 - -- on page 86, to the extent small gifts to Mr. Ford, Mrs. Ford and their children are "other things of value," I did on occasion give such gifts. These gifts, including birthday and Christmas gifts and a wedding gift, were modest in amount and were reciprocated. On some but not all occasions, I sought reimburse- ment from U. S. Steel for the cost of such gifts. THE WHITE HOUSE WASHINGTON November 16, 1976 Dear Mr. Pitt: You have asked by telephone and letter about possible information or records of the President while he was a member of Congress related to the subject of those portions of a statement by William G. Whyte of the United States Steel Corporation which appear in the parts of a transcript furnished with your letter of October 27, 1976. Mr. Whyte's statements reflect the occasions when he and the President were together on outings or trips away from the Washington area, but the President has no records or information of payments from corporate funds, if any, for expenses incurred by Mr. Whyte on those occasions. The relationship between the Ford family and the Whyte family was that of a close personal friendship, and their social and recreational activities together and exchanges of presents were regarded by the Ford family as incidents of that relationship, with no awareness on the part of the Fords that corporate expenditures may have been involved. Exceptions are the reported official activities, namely, speaking engagements by the then Republican Leader of the House of Representa- tives before the Board of Directors of the National Association of Manufacturers in 1968, and before the Public Affairs Committee of the United States Chamber of Commerce in 1970, and the time when he was asked to accompany Mr. Whyte on a visit to a new facility of U. S. Steel Corporation; and these are instances when Congressman Ford would have expected to have his expenses paid or reimbursed by the sponsoring organization, but he has no records of the amounts involved. - 2 - Beyond this, there is no information available here to explain or amplify on the matters reported to you by Mr. Whyte. Sincerely, Philyie Buchen Buchen Counsel to the President Mr. Harvey L. Pitt General Counsel Securities and Exchange Commission Washington, D. C. 20549