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1975/03/19 - President and Frank Fitzsimmons
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1534455
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1975/03/19 - President and Frank Fitzsimmons
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James M. Cannon Files (Ford Administration)
James Cannon's Meetings Files
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1975
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The original documents are located in Box 43, folder "1975/03/19 - President and Frank
Fitzsimmons" 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States of America his copyrights in all of his unpublished writings in National Archives collections.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 43 of the James M. Cannon Files at the Gerald R. Ford Presidential Library
Meeting with President
and Frank Fitzsimmons
Wednesday, March 19. 1975
Its - happly
Rn:
Lt: get
THE WHITE HOUSE
Rod staw RR.
WASHINGTON
mt trant
March 18, 1975
in
MEETING WITH 30 FRANKIN TZSIMMONS
sorge
Wednesday, March 19, 1975
regulation
11:00 A.M. (20 minutes)
waper
The Oval Office
From: Phil Buchen
Ant
PURPOSE
7 consult
You requested this meeting as one of a series Intu with labor
leaders.
II. BACKGROUND, PARTICIPANTS AND PRESS PLAN
A. Background: You last met with Frank Fitzeimmons on
2t
December 18, 1974.
To int
reav
The following are specific subjects he might wish
to
discuss with you:
Colevan
Economic Condition of Trucking Industry. Generally,
ago. truck Construction freight is down and about related 20% materials compared DO hosting down
from 13 to 20%, carriage of motor vehicles is down
me
30% and grain and farm products are down approxi-
mately 20%. There has been a small increase in
with Vauspura
coal and metals; otherwise, everything else is
down. Despite an 8% rate increase in Januar
the total revenues for the trucking industr
don't
down 22% in February and 17% in March. There is
beginning to be a seasonal pickup in the carriage
stars
of food but the situation still have appears to
fairly grim.
Department of Transportat: on Regulations There
are three regulatory actions which have recently
been taken by DOT that concern the Teamsters: First,
the new regulations implementing the change in the
1974 Highway Act, which you signed in January, per-
mitting an increase in the size and weights of trucks,
have been promulgated by DOT but are somewhat restric-
tive. DOT took this position primarily because of
Prem from meat
FORD LIBRARY
2
strong opposition from such lobbyists as the
American Automobile Association and others, along
with a move in Congress (lead by Edward Koch, D-NY,
and 33 co-sponsors) to repeal the increase in its
entirety. The Teamsters do support a safety-related
amendment to the size and weight provision, limiting
the amount of increased weight on the front axles to
10,000 pounds. However, if Congress does pass an
amendment to the Highway Act, it likely will repeal
the weight and size increase to the detriment of the
trucking industry. Thus, our position of no amend-
ments is probably the safest.
Second, the Teamsters are generally against strict
enforcement of the 55 mph speed limit which DOT is
implementing at your instruction.
Third, the Department has "hours of service" regula-
tions, issued for safety reasons, which only permit
ten hours of consecutive work in any fifteen-hour
period. The Teamsters want to increase this to
eleven or twelve hours and DOT does have it under
review, but we understand they are likely to decide
against the Teamsters.
Deregulation. The DOT/OMB proposal to deregulate
the motor carrier industry is currently being cir-
culated among Federal agencies. No doubt word has
leaked out on this and the Teamsters are indicating
some opposition because they view it as resulting in
a reduction in industry profits.
B. Participants.
Frank Fitzsimmons, President of the
Teamsters Union
John Dunlop, Secretary of Labor
Staff: Mike Duval
C. Press Plan:
White House Photo only.
III. TALKING POINTS
I recognize that the two major points in my State of
the Union Address impact directly on your activities:
First, the trucking industry has been severely impacted
by rising prices and general economic conditions.
FORD LIBRARY
-3-
The inventory liquidation now going on is especially
hard on the industry. We are expecting an upturn
in the economy during the summer, and the trucking
industry should be among the first to benefit.
Second, your industry has been greatly affected by
the increase in the price of diesel fuel. The only
way we can gain control over the price we have to pay
for our oil, is through aggressive implementation of
the energy plan I have proposed to Congress. As you
know, I am considering tilting some of the impact of
my proposal into gasoline and away from other petroleum
products, including the diesel which you use in many
of your trucks.
A key component of my plan is strict enforcement of
the 55 mph speed limit. One of the ways I've tried
to offset the reduced productivity this means to the
trucking industry is by an increase in the size and
weights of trucks. That is why I supported that pro-
vision of the 1974 Highway Act.
GERALD AMERICA R FORD
THE WHITE HOUSE
WASHINGTON
March 19, 1975
TO:
JIM CANNON
FROM: MIKE DUVAL
For your information
X
Comments:
I prepared this for the briefing
paper for the President's meeting
with Secretary Coleman.
GERALD FORD LIBRARY
I
OFFICE OF THE VICE PRESIDENT
WASHINGTON, D.C.
JMC
REMINDER
You wanted to see Jerry Jones
and Jim Connor.
FORD : LIBRARY 07V835
TALKING POINTS - MEETING WITH SECRETARY COLEMAN
DOT Regulatory and Administrative Philosophy. The Depart-
ment exercises tremendous power over State and sub-State
governments, as well as the private sector.
EXAMPLE: EPA's catalytic converter
Many of DOT's regulations impose tremendous costs on con-
sumers and can have major impacts on the profitability of
businesses.
EXAMPLE: DOT's truck anti-skid brake regulations will
raise the cost of trucks and trailers 5-7%. (This is
under review in coordination with the Council on Wage
and Price Stability, but the rule was adopted on
January 1. The Domestic Council staff is monitoring
the review.)
I have attempted to do something about this problem,
government-wide, by requiring an Inflation Impact State-
ment be prepared before any Federal regulation is issued.
I am quite serious about this, and I want the analysis to
be honest and done in time so that we can make a decision
not to go forward if the economic costs outweigh the benefits.
Another area in which your Department directly affects the
lives of countless people concerns the decisions which you
are required by statute to make concerning whether to go
forward with various public works projects. This ranges
from approval of highways and bridge replacement to the
building of airports and transit systems.
I believe that we need to strike a far better balance
between various national objectives, including developing
energy facilities and other job-producing activities, versus
our desire to protect the environment. Although many of the
environmental laws which passed in the early '70s contain
goals and objectives which I strongly endorse, I think the
deck has become stacked against the forces for progress
and development. It is far easier to stop a project than
to build it.
COMMENT: We recommend that you do not specifically
refer to I-66 in your discussion of the growth/no-
growth issue.
Bankruptcies. One of the major problems that your Depart-
ment faces is the bankruptcy and pending bankruptcy of
several major transportation companies. I understand you
are reviewing the progress of the United States Railway
Association and its Preliminary System Plan to provide
2
rail service in the 17 States of the Northeast and
Midwest. The saga of the Penn Central bankruptcy is
providing an excellent example of what happens when
government neglect and over-regulation forces a major
industry out of business. There is no doubt that the
Federal taxpayer is going to pay a heavy price.
We have received, here at the White House, over 300
calls requesting financial assistance for the Rock Island
Railroad, which I understand has just filed for bankruptcy.
I support your position of declining to support direct
Federal financial help but offering to work with the
ICC and others to continue to provide rail service and
do everything else possible to aid the employees of the
company.
That same kind of sensitivity will be needed as we con-
tinue to work on the problems of Pan American and other
airlines that are in trouble. I want to be certain that
we show sympathy and compassion for the owners and employees
of these companies in financial difficulty, but at the same
time, do everything possible to limit Federal financial
exposure except in the most extreme cases.
Legislation. On Monday, I transmitted to the Congress the
aviation legislation, which is a good package. I appreciate
your memo on this subject and the compromises you were able
to work out with the Congress.
I understand that the Rail Transportation Improvement Act
will be ready for transmission, probably by Friday of this
week. This is the first piece of my overall program to
seek fundamental reform of the regulatory practices which
govern the economics of the entire transportation industry.
I hope you will move quickly on other legislative proposals
concerning motor carriers and aviation.
The Highway bill is also nearly ready for submission.
The Governors I have recently conferred with are anxious
to support our proposal of allowing the States to pick up
1¢ of the gas tax. However, the proposal to extend the
Trust Fund only for the Interstate System will be very
controversial. You will need to work closely with Bob
Jones and Bill Harsha on the House Public Works Committee
and Jennings Randolph and Howard Baker in the Senate.
Concerning mass transit, I know that there will be pressure
for new legislation, especially in light of the energy prob-
lem. I worked very hard in the closing days of the 93rd
Congress to get the Mass Transit Act passed. That Act will
provide $11.8 billion over the next six years for mass
3
transit, and this represents a major increase in Federal
funding. I do not believe we need more funds but, rather,
that Act must be administered vigorously, but carefully,
by your Department. We must not get into another situa-
tion like the Washington Metro system which results in
massive overruns and a commitment of more taxpayer
dollars to one city than we possibly can afford.
EXAMPLE: Metro was originally expected to cost
$2.3 billion and the current estimate is $4.5
billion to complete the entire system.
[March 1975]
12
that without it, farm prices will rise as farmers withhold
production. But opponents argue that the legislation will
cause prices to rise "astronomically." Farm-state representa-
tives would do a service to their constituents by assenting
to a more modest increase in price-support levels.
Midwest Papers
Robert J. Wagman and Sheldon Engelmayer, North American
Newspaper Alliance, San Diego: A $300,000 home in California
is being built for Teamsters President Frank Fitzsimmons by a
land company that has received more than $50 million in Teamsters'
pension fund loans. Fitzsimmons is a fiduciary, or trustee, of
the Teamsters pension fund, which could make the building of
the home a violation of the new Employee Retirement Income
Security Act, which became effective January 1.
###