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Hudson River Tolls
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1515853
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Hudson River Tolls
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James M. Cannon Files (Ford Administration)
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The original documents are located in Box 18, folder "Hudson River Tolls" of the James M.
Cannon Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 18 of the James M. Cannon Files at the Gerald R. Ford Presidential Library
THE WHITE HOUSE
WASHINGTON
April 13, 1976
MEMORANDUM FOR:
JIM CANNON
FROM:
JUDITH RICHARDS HOPE
Increase in Hudson River JRU Bridge
SUBJECT:
and Tunnel Tolls
is
BACKGROUND
Several months ago, the New York Port Authority implemented
the approximate 50 percent increase in tolls for bridges and
tunnels crossing the Hudson River to New York City, in order
to increase revenues and reduce the vehicular traffic into
Manhattan.
FEDERAL HIGHWAY ADMINISTRATION REVIEW
Under the 1906 General Bridge Act, the Corps of Engineers
was given the responsibility for supervision of all bridges
over navigable waters. When the Department of Transporta-
tion was created in 1967, this bridge authority was trans-
ferred to DOT. Secretary Coleman, in turn, has delegated
this to the Federal Highway Administration, which must
review all tolls on such bridges (and tunnels) for reasonableness
and justness. Further, if there are complaints about tolls,
there must be an investigation, and if the investigation
raises material issues of fact, those issues must be resolved
at a formal hearing.
There were 22 official complaints about the increased tolls
on the Hudson from, among others: the AAA's of New Jersey
and New York, certain members of the New York City Council,
New York Assemblyman Byron Baer, New York Congressmen Gilman,
Murphy and Peyser, a number of members of the New Jersey
State Legislature and assorted trucking companies from New
York and New Jersey. Complaints ranged from environmental
concerns to assertions that the additional revenues were not
for highway purposes, but for everything from paying for the
World Trade Center to sending the Philadelphia orchestra to
Germany!
2
Last week a hearing judge from the National Transportation
Safety Board, John Faulk, was appointed hearing examiner for
these hearings. He has scheduled a hearing for June 7, with
a pre-hearing set for May 4. The hearing is expected to
last four to five days, and the decision may take two to
three months thereafter.
Faulk will make his findings and recommendations to the
Federal Highway Administrator (Tiemann) who will make the
final decision.
Indications are that, given the complex record (over 3 feet
high now, and growing) there may be no decision until fall.
To expedite decision will require at the least a conversation
with Tiemann explaining the reasons behind the need for a
quick decision upon conclusion of the June hearing.
I can do this, if you like, and if you will fill me in on
the background.
Jam- ) this - why at not your with discuss
FORD LIEVARY i 077838
art Quenn and me?
THE WHITE HOUSE
WASHINGTON
April 13, 1976
MEMORANDUM FOR:
ART QUERN
FROM:
JUDY HOPE
SUBJECT:
Attached Memo
As you will see from the attached, I am
sending Jim Cannon the requested material
on the Hudson River tolls issue.
I am sending it through you for your
review and prior approval.
Thanks.
FORDO is GERALD LIBRARY
Transp.
Waterways
THE WHITE HOUSE
WASHINGTON
INFORMATION Talls
May 14, 1976
MEMORANDUM FOR:
JIM CANNON
FROM:
JUDITH RICHARDS HOPE
SUBJECT:
Hudson River Toll Hearings
Lowan
The Hudson River Toll hearings have been postponed by the
Administrative Law Judge by request of the 8 parties
involved (unanimous). They are as follows:
Congressman Pizer PEYSOR
couph
Congressman Murphy
Mrs. Albert Lamm
Mr. Sol Weil
National Council of Salesman's organizations
of
Citizens for Clean Air
New Jersey Motor Truck Association
Auto Clubs of New York and New Jersey
bays
The hearings are now scheduled for August 9.
of
Again, this is now out of the hands of the Federal Highway
Administrator by virtue of the Administrative Procedure
Act, requiring that the Administrative Law Judge act
independently. When he makes a decision, it will go to
Tiemann for review. (accept or reject)
A possible time frame could be: (optimistic)
Hearings
approx. 10 days from 8/9
Final decision of Ad. Law Judge
late September
Final decision of Administrator
perhaps November
We may wish to inform Bill Ronan.
Yes
No
Cannon call
Hope call
FORD is LIBRARY SERVID
THE WHITE HOUSE
WASHINGTON
Date 4/27/76
MEMORANDUM
FROM
Jan FOR: JUDITH & RICHA Cannon HOPE
The bottom line
on the N.Y.C. Port
authority tolls:
a hearing is
independent hearing
set for June an
examiner has been
named.
The hearing cannot
be dropped at this
point.
THE WHITE HOUSE
WASHINGTON
April 13, 1976
MEMORANDUM FOR:
JIM CANNON
FROM:
JUDITH RICHARDS HOPE JRU
SUBJECT:
Increase in Hudson River Bridge
and Tunnel Tolls
BACKGROUND
Several months ago, the New York Port Authority implemented
the approximate 50 percent increase in tolls for bridges and
tunnels crossing the Hudson River to New York City, in order
to increase revenues and reduce the vehicular traffic into
Manhattan.
FEDERAL HIGHWAY ADMINISTRATION REVIEW
Under the 1906 General Bridge Act, the Corps of Engineers
was given the responsibility for supervision of all bridges
over navigable waters. When the Department of Transporta-
tion was created in 1967, this bridge authority was trans-
ferred to DOT. Secretary Coleman, in turn, has delegated
this to the Federal Highway Administration, which must
review all tolls on such bridges (and tunnels) for reasonableness
and justness. Further, if there are complaints about tolls,
there must be an investigation, and if the investigation
raises material issues of fact, those issues must be resolved
at a formal hearing.
There were 22 official complaints about the increased tolls
on the Hudson from, among others: the AAA's of New Jersey
and New York, certain members of the New York City Council,
New York Assemblyman Byron Baer, New York Congressmen Gilman,
Murphy and Peyser, a number of members of the New Jersey
State Legislature and assorted trucking companies from New
York and New Jersey. Complaints ranged from environmental
concerns to assertions that the additional revenues were not
for highway purposes, but for everything from paying for the
World Trade Center to sending the Philadelphia orchestra to
Germany!
FORD
2
Last week a hearing judge from the National Transportation
Safety Board, John Faulk, was appointed hearing examiner for
these hearings. He has scheduled a hearing for June 7, with
a pre-hearing set for May 4. The hearing is expected to
last four to five days, and the decision may take two to
three months thereafter.
Faulk will make his findings and recommendations to the
Federal Highway Administrator (Tiemann) who will make the
final decision.
Indications are that, given the complex record (over 3 feet
high now, and growing) there may be no decision until fall.
To expedite decision will require at the least a conversation
with Tiemann explaining the reasons behind the need for a
quick decision upon conclusion of the June hearing.
I can do this, if you like, and if you will fill me in on
the background.
LIBRARY
DRAFT
THE WHITE HOUSE
WASHINGTON
Dear Bill,
Just a short note to thank you for your thoughts on the
Municipal Bankruptcy Legislation, HR 10624. As you
probably know, the President did sign this legislation
on April 8.
Some of your suggestions were developed in the analysis
and decision making program here at the White House. While
the President did not feel the Bill contained all that the
Administration was looking for, it was his judgement that
the Bill was at this time one which he should sign.
I look forward to getting together with you and the Vice
President in the near future.
Best personal regards.
Sincerely,
James M. Cannon
Assistant to the President
for Domestic Affairs
Mr. William J. Ronan
Chairman
The Port Authority of NY & NJ
One World Trade Center
New York, New York 10048
THE PORT AUTHORITYOFNYGNJ
One World Trade Center
New York, N.Y. 10048
Commissioners
William J. Ronan, Chairman
W. Paul Stillman, Vice Chairman
Andrew C. Axtell
George F. Berlinger
Robert R. Douglass
Milton A. Gilbert
James G. Hellmuth
James C. Kellogg, III
Gustave L. Levy
Matthew Nimetz
Alan Sagner
Victor R. Yanitelli, S.J.
April 2, 1976
Office of the Chairman
Dear Jim:
I feel I must express my profound concern that the Municipal
Bankruptcy Legislation (H.R. 10624) which has been passed by
the Congress may well result in a major municipal bankruptcy
between now and the end of the year which could debilitate
the entire municipal bond market for years to come. It should
be vetoed by the President.
As a result of this bill, the risk of municipal default will
be enhanced markedly because the bill makes bankruptcy an eas-
ier choice for elected municipal officials than the tough belt
tightening which the administration has heretofore espoused.
If we are right in this appraisal, an immediate result will be
higher interest rates on State and local borrowing all over the
country causing millions and millions of dollars of added taxes
and expenditures.
Further, the bill is not in the form which the President had
originally requested since it is not limited to major cities
as he had proposed. A whole restudy of Federal bankruptcy
legislation is scheduled by the House Judiciary Committee. We
suggest that after veto, municipal bankruptcy can and should be
part of that study.
The major change made by this legislation is the virtual elimina-
tion of the requirement of consent of fifty-one percent of the
creditors to a plan of adjustment prior to the filing of a
petition for relief under the present bankruptcy law. That pro-
vision in the current law has effectively prevented the bank-
ruptcy of the City of New York. Under the new bill, a munici-
pality may invoke bankruptcy law protection if it is difficult
to achieve such consent. If that 51% requirement had not exist-
ed during the recent fiscal turmoil, it is probable that New
York would be in bankruptcy at the present time.
Although the enactment of this bankruptcy legislation at some
time in the future may be reasonable, at the present time it will
cast a cloud over the fiscal integrity of cities and other local
GERALD
THE PORT AUTHORITY FNY&NJ
- 2 -
government entities throughout the United States.
It is also clear that a major municipal bankruptcy would mean
that many obligations will not be fulfilled. Contracts that
have been entered into with suppliers of goods and services all
over the United States will not be paid at the time such credi-
tors have a right to be paid. Holders of financial obligations,
bonds and notes, will not be paid when they, under the present
circumstances, have a right to be paid. There will be a crisis
in confidence affecting not only the City of New York but other
major and smaller municipalities throughout the country. The
fragile economic recovery which is now taking place across the
country could therefore be placed in jeopardy.
I realize the difficulty which the President would have in veto-
ing this legislation and I would not advocate that course but for
the fact that I believe this to be a most serious matter.
Sincerely,
William J. Ronan
Chairman
Mr. James A. Cannon
Assistant for Domestic Affairs
GERALS FORD
The Executive Office of the President
The White House Office
Washington, D.C. 20500