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Memos – Office of Public Liaison [1981-1983 (Dole, Elizabeth)] (3)
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Memos – Office of Public Liaison [1981-1983 (Dole, Elizabeth)] (3)
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Records of the Office of the Chief of Staff (Reagan Administration)
James Cicconi's Memorandums
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THE WHITE HOUSE
WASHINGTON
January 6, 1982
MEMORANDUM FOR JAMES A. BAKER, III
FROM:
ELIZABETH H. DOLE
SUBJECT:
"Big" Versus "Little": The Need for a
Small Business Strategy
Small business has provided Ronald Reagan with bedrock support
during his campaigns for both the Governorship and the Presidency.
In terms of enthusiasm, only the Conservative groups have been
more supportive; in terms of size, small business is unmatched.
Over 14 million individuals own or operate small businesses,
employing virtually half the U.S. work force and creating 85%
of our new jobs. Few groups, if any, are as important to the
future of the Reagan coalition.
Of late, strains and cracks have appeared within our small busi-
ness constituency. High interest rates disproportionately impact
upon the "smalls" (small business) as opposed to the "bigs"
(corporate America), and become more aggravated with time. Time
is giving us the image of an Administration which favors big over
small, whether the subject is the President's tax bill, antitrust
policy/mergers, LIFO reform, slow payment by the federal govern-
ment, federal procurement policy, or even the President's choice
of friends.
This growing perception may well be the Democrat's best weapon
against us in the Fall campaign, enabling them to claim we cham-
pion the big at the expense of the little. This cry may ulti-
mately be more damaging than any lingering effects of a recently-
ended recession. Specifically, opposition is already attempting
to convince the public that our merger and antitrust policy is
one of "anything goes." They point out that corporations set
aside multi-billion dollar lines of credit for acquisitions,
while small business and others starve for credit crumbs. A
number of our small business allies report this approach is
proving very successful.
The attached weekend article in the Washington Post tellingly
reveals the level of erosion in small business support. I strongly
urge adoption of an Administration-wide strategy to get in front
of the small business issue before we are too much on the defen-
sive. Some suggested actions are as follows:
- 2 -
1.
A January 20 Presidential meeting with the SBA National
back Report in
Advisory Committee to announce establishment of an ongoing
dialogue between the White House and small business leaders.
This will coincide with the President's January 20 Report
to the Congress on Small Business, which is currently in
90 days-
preparation and required by public law.
2.
Desigation of Secretary Baldrige, in his capacity as head
of the Cabinet Council on Commerce and Trade, to serve as
overall Administration coordinator of small and minority
business efforts. In this regard, each department and
agency head would be asked to designate a PAS-level individ-
ual to assist Secretary Baldrige as the department contact
for small business.
3.
Announcement of Cabinet Council Sub-Committee on Small
Business.
4.
Reestablishment of the Treasury Department Small Business
Council.
5.
An early February speech by the VP on the work of his Small
Business Regulatory Relief Task Force. The Associated
Builders and Contractors National Convention in Las Vegas
(2/1-4/82) would be ideal.
6.
A mid-February Presidential Signing Ceremony for the National
Small Business Week Proclamation. This would also be coupled
with FY 1983 budget briefings.
7.
Issuance of Presidential Minority Business Development state-
ment in early March to coincide with a meeting with and
budget briefing for minority business community leaders.
8.
A March Presidential speech before a small business forum.
9.
A Vice Presidential follow-up meeting in April with the SBA
National Advisory Committee, joined by the newly-appointed
members of the Treasury Small Business Council. The Vice
President might wish to host a reception at his Residence.
10. Presidential Rose Garden Ceremony and Reception for the
Small Businessman of the Year Award to kick-off National
Small Business Week.
11. A Presidential visit to a small business or minority-owned
manufacturing plant.
WASHINGTON POST
January 2, 1982
Small Business Gives
Small Business,
Administration
Reaganomics a 'C'
Data Contrast
REAGANOMICS, From E8
By Marsha Taylor
the opposite extreme. Middle-of-
Newhouse News Service
the-roaders who term the policies
Reagan supportive of the en-
The first year of Reaganomics
average increased only slightly, to
trepreneurship needed to make a
rates little better than a gentle-
18 percent from 16 percent, but 35
small business successful !! to 60
man's C in several key areas, ac-
percent now say the administra-
percent from 71 percent.
cording to a survey of small busi-
tion's policies on small business
Executives convinced that they
ness executives by the Chicago-
are not supportive, compared with
will get adequate help from the
based Heller Institute for Small
25 percent last summer.
1981 Economic Recovery Tax Act
Business.
The views of small business ex-
dropped to 55 percent from 67
Reagan's report card from small
ecutives on representation in
percent. In fact, 56 percent think
business-which contrasts sharply
Washington have experienced a
the administration was less than
with "The Reagan Presidency: A
similar shift. Almost as many ex-
honest in its budget forecasts in
Review of the First Year," the
ecutives now feel poorly repre-
order to gain passage of the tax
glowing evaluation of 1981 re-
sented in Washington (42 percent)
act, but 82 percent quickly add
leased this week by the White
as feel well-represented (44 per-
that preceding administrations did
House-updates a midyear assess-
cent). The July-August figures
the same thing.
ment from the same executives.
were 30 percent and 47 percent,
On the positive side of the re-
Participating during July and
respectively. The number of mid-
port card, Reagan gets a reason-
August in six discussion groups
dle-of-the-roaders has dropped to
ably good grade in the fight
around the country, the executives
14 percent from 23 percent in the
against inflation. The number of
rated Reagan administration eco-
summer.
small business executives who say
nomic policies above average in
Other Reagan initiatives also
they see a positive effect from
most areas.
lost support. The number of ex-
dropping prices on their day-to-
Now, however, 47 percent of the
ecutives believing that the benefits
day costs has risen to 51 percent
executives feel that Reagan's pol-
of deregulation are filtering down
from 46 percent. Forty percent say
icies are supportive of small busi-
to small business held steady at 51
they see no positive effect, down
ness, compared with last summer's
percent, but those believing the
from 49 percent.
59 percent.
contrary increased to 36 percent
The Reagan administration also
Those executives who have
from 29 percent. Those who find
rates high on its deregulatory
changed their views tend to go to
Sce REAGANOMICS. E9, Col. 3
stand that eases protection of the
environment. Asked if environ-
mental standards are becoming to
lax, 74 percent of small business
executives answer no, up from 66
percent in the summer.
OPL mames
THE WHITE HOUSE
Responses att'd
WASHINGTON
at back
April 5, 1982
MEMORANDUM FOR EDWIN MEESE III
JAMES A. BAKER, III
MICHAEL DEAVER
A
FROM:
ELIZABETH H. DOLE
SUBJECT:
Partners With People
THE PRESIDENT AND PEOPLE
To answer unfounded claims of a number of pundits that the
President does not care about the consequences of his policies
on people, I suggest we focus on the constraints of encumbency
on Ronald Reagan and consider an additional approach aimed at
increasing the opportunities for interaction between the Presi-
dent and average citizens in an "average" environment.
If we look at the past 15 months and use relative comparisons
rather than absolutes, the level of Presidential involvement with
people is significantly lower than before, which can subconsciously
reinforce claims he doesn't care. For as long as the President has
actively pursued public office, he has always been portrayed as a
populist and, while powerful in staged television appearances, his
campaigns have always been marked by a great deal of interaction
on a personal basis. The focus of his appeal and his approach has
rested on a "we" versus "them" -- "we" being the people and "them"
being faceless government. In order to score his smashing legisla-
tive victories and midwife the Reagan revolution, the President has
been forced to spend an inordinate amount of his time in Washing-
ton, D.C., the least populist town in America. In short, a man
whose very strength and appeal has flowed from a grassroots populist
heritage has been forced to abdicate his base. Have we succumbed
to the age-old trap that a President must be omnipresent in Wash-
ington if he is to govern effectively?
WHAT TO DO ABOUT IT
Simply bringing a greater number of citizens into the Oval Office/
White House complex and/or adding a few more "color events" to the
Presidential travel schedule is not enough. A strategic plan,
2
whose objective is to return the President to his populist roots,
is needed. For example, it's easier for the President to visit
with disadvantaged young workers in the White House, but the impact
of his concern on the individuals is significantly less than were
he to make an actual on-site visit.
I propose we initiate a program whose sole design is to move the
President among people on a much more regular basis in the months
and years ahead. Rather than rely on more traditional fixed forums
(joint-sessions, fundraisers or conventions) for public appearances,
I suggest we create a mechanism which will provide us with size-
able "ad hoc" audiences under secure conditions. Audiences can be
configured to enable the President to provide both a formal address
or the more informal question and answer format. This concept can
be packaged to ensure successful introduction into any medium or
large-sized city, although its effectiveness is greater in environ-
ments where a Presidential visit is unique. In other words, cities
like Memphis, Jacksonville, San Antonio or Spokane might be chosen
over New York, Chicago, Los Angeles or Philadelphia. Additionally,
this proposed concept will enable us to obtain an audience which
reflects the demographics of the area.
While not totally new, the concept reflects a more comprehensive
variation on the basic thrust of Ford's White House Conferences
and Carter's Town Hall Meetings.
PARTNERS WITH PEOPLE
The concept theme Partners With People contains the essence of the
Ronald Reagan message and serves as an "umbrella" for a number of
the Administration's current initiatives: New Federalism, Enterprise
Zones, Private Sector Initiatives, etc. The objective of the program
is to increase the interaction between President Reagan and people
to help each gain increased insight without the filtration effects
of the media, large organizational structures or impersonal communi-
cation.
The core of this program involves President Reagan out of Washington,
D.C. The President and his key policymakers (Cabinet/Agency heads
and White House Staff), who have the greatest impact on the specific
community interests, participate in a day-long session, which would
be tailored to suit the needs of the community. While the Partners
With People program would encompass an entire day, Presidential
participation would involve only one appearance before the assembled
audience, leaving the remainder of the day for travel and, more
importantly, the opportunity for Presidential involvement on a one-
for-one basis with key elements of the community. For example, were
a Partners With People conference held in Kansas, in addition to his
audience address, the President might choose to visit and lunch with
a working farm family, as well as visit a PSI demonstration project
or a small business firm employing the disadvantaged. This latter
3
group of events will enable the President to visually demonstrate
his empathy with and interest in people in an environment in which
the community can readily identify.
Complementing the travel portion of the program would be a Partners
With People in-town program for Washington, D.C. Looking to my pro-
jected OPL meetings for 1982, it is anticipated that they would be
geared a great deal more towards grassroots participation, since
the leadership components were serviced in 1981. Grassroots people
would be brought to the White House for a series of meetings and
briefings to include some time with the President. They would be
invited by community, including press, and receive a "Day with
the Administration" treatment.
A better understanding of the overall Partners With People concept
may be gained by an overview of a typical conference conducted out-
side Washington as follows:
The Planning Stage
Convenience of an Air Force One landing site is the only criteria
governing site selection. The choice of a city can be made on pure
geographics, on an issue concern or on a political rationale as a
result of the flexibility of the format. It should also be noted
that, although a host city is selected, the impact and the reach
of the program should be no less than statewide or regional.
Once a city is selected, a meeting is to be held in Washington with
a member of the Office of Public Liaison and representatives of
key national organizations who have local chapters in the host city.
This meeting develops national headquarters encouragement for local
chapter participation in the Host Committee, the ad hoc sponsorship
group in the community that will stage and fund the event. This
meeting occurs between four to six weeks prior to the visit date.
Shortly following this meeting, an Office of Public Liaison staff
member would visit the selected city and work with the community
leaders to develop the bipartisan Host Committee. The committee
would consist of as many leadership organizations in the community
as practical, i.e., Chamber of Commerce, Farm Bureau, union locals,
Jaycees, Lions Club, Soroptomist. The benefit to the community
and involved organizations is obvious -- increased national exposure
and added civic enthusiasm. In return for their willingness to
underwrite the actual on-site costs of the visit, the Host Committee
member organizations would receive the full allocation of tickets
for the daily sessions.
Under this approach, the White House is removed from the actual
process of deciding which citizens will attend and which will not.
The Host Committee shoulders that decision through the allocation
of its tickets. It must be remembered that this will not guarantee
4
a 100% supportive audience, rather a cross section of the member-
ship profiles from the organizations that comprise the Host Committee.
By concentrating travel into areas where Presidential visits are
uncommon, the supportive and respectful component of the audience
is increased markedly.
This approach also provides a much broader base of public participa-
tion than by having just one local host; it provides grassroots
flavor while maintaining a measure more control than a first-come,
first-served general public basis.
A broader-based audience could be invited to the luncheon by expand-
ing the seats for the meal and providing additional ticket sales to
the general public.
Following the establishment of the Host Committee and a detailing
of their areas of issue interest, White House requests are then
forwarded to appropriate Cabinet/Agency heads and Administration
issue specialists, citing appropriate time of participation and
format (speech with questions and answers, panel, working breakfast,
reception, etc.).
The Pre-Event Stage
In the three weeks immediately preceding the event, several tele-
phone interviews are arranged between Administration spokesmen and
local radio and newspaper journalists. This information flow enables
us to begin to articulate Administration policy, particularly from
those areas which may not be specifically represented at the
Partners With People conference. It also helps create a greater
local awareness and puts additional focus on the upcoming event.
Approximately one week prior to the conference, an Administration
official would visit the area and provide an in-depth interview for
the local newspaper's Sunday edition immediately preceding the visit.
Other local anchormen interviews, talk show call-ins, cable tele-
vision appearances and the like can be scheduled.
I would make myself available on the local scene, as appropriate,
to assist in the final stages of implementation for the visit.
Event Format (Sample)
8:00 - 8:45 a.m.
Editorial Board Breakfast with key Administration
participants.
9:00 - 11:30 a.m.
A.M. General Session to include speech by Adminis-
tration participants, each to be followed by an
audience question and answer portion.
12:00 - 1:30 p.m.
Luncheon to include expanded audience, if possible,
and keynoted by senior Administration representa-
tive in attendance (not an A.M. participant).
5
2:00 - 4:00 p.m.
P.M. General Session to include panel discussion
by Administration participants, and possibly others
on topical issues of local interest. Also to in-
clude audience question and answer portion.
4:15 - 5:00 p.m.
Host Committee Reception and Local Press Avail-
ability.
NOTE: The President could speak at virtually anytime during the
morning or afternoon session. This, coupled with local "color"
event or two, would require approximately a half-day of the
President's time, exclusive of Air Force One flying time.
Additionally, the same format could be utilized with the Vice
President instead of the President. This would enable us to
have a broader reach for the Partners With People program, as
well as appeal to some of the smaller, more inaccessible cities
which could be reached with the DC-9 and not Air Force One.
Post-Event Impact
This saturation exposure will ensure coverage for at least 48 hours
following the event and is particularly true for newspaper coverage,
which will gradually display follow-up stories and local citizen's
involvement and recollections even beyond 48 hours.
A detailed follow-up plan for the President and all participants
is key. Prompt thank you's, gift acknowledgements, and issue follow-
up garner good additional exposure as well as help provide an even
more favorable after-glow of an Administration that cares about the
little person in our society.
As important as the actual participation is a responsiveness to the
concerns of the community. It will be very important to ensure that
the policy input obtained from each conference is channeled to the
proper Administration office for appropriate action and consideration.
A transcript of the entire conference will be very helpful in recap-
turing specifics of issue discussions.
IMPLEMENTATION
If this plan were to be implemented, it should be done as soon as
possible in order to put the maximum time distance between the
announcement and the fall elections. This will help soften any
partisan criticism that this is an electioneering ploy, although
we should recognize that it might be difficult to justify this
approach during the time period between Labor Day and the election.
To be successful, the program will require a great deal of inter-
governmental cooperation and, therefore, would need to be a priority
issue for the Administration. To do less, risks falling short and
6
inviting criticism that this is a gimmick and not a meaningful
effort to help people better understand the issue alternatives
faced by the Federal Government and themselves.
I consider a program of this general nature to be critical to the
success of the President's initiatives and would welcome the
opportunity to pursue the matter further with you.
THE WHITE HOUSE
WASHINGTON
May 10, 1982
MEMORANDUM FOR ELIZABETH DOLE
FROM:
James A. Baker, III JABU
SUBJECT:
"Partners With People" Proposal
I have carefully reviewed the "Partners With People" proposal in
your memo of April 5, 1982, and have also discussed it with Ed
Meese and Mike Deaver. We agree that the concept you outline--
showing the President as both caring and in touch with the concerns
of average citizens--is precisely the direction in which we need to
go. The decisions taken along such lines in the past month have
been influenced by the arguments made in your memo.
At the same time, I feel it is important for us to retain flexi-
bility by not becoming tied to a specific program or format. I am
concerned that the efforts we are making to put the President into
direct contact with citizens not be viewed as part of any concerted
public relations campaign; instead, our efforts should retain the
type of spontaneity that refutes such notions.
Thus, I feel we should continue to build on the ideas in your memo
without necessarily implementing a formal program. I hope you will
continue to discuss any ideas you have for specific events with Mike
Deaver or Dave Gergen SO that we can keep this ball rolling.
I have also asked Mike and Dave to discuss your very good idea of
having the President meet from time to time, in different parts of
the country, with groups of citizens to discuss their concerns. We
agree that such sessions, particularly if they were televised,
could have a significant impact.
CC: Edwin Meese
Michael Deaver
David Gergen
THE WHITE HOUSE Sunish
WASHINGTON
April 14, 1982
TO: JAB III
RE: Partners with People Memo
I think the concept outlined is
sound. A couple points, though:
1. Suggest we need to move fast on
this if we're going to move at all.
If we wait, it will look like a polit-
ical gambit.
2. This is an excellent way for the
President to camapign without really
campaigning for the November elections.
3. From what I've seen, the President
is very good in this type of setting.
4. I would stay away from the name
"Partners with People" it's hokey
and makes the effort sound like a
PR gimmick. Suggest we not call it
4/15/20:
anything, thus making it seem more a
spontaneous decision by the President.
you
WHERE FROM HERE-- Suggest Gergen review
and give you his thoughts asap; then
D.G.
viview
breakfast discussion. Blair House group
should then examine details and fine-
ORT tune them.
m BRFAST ACENDA pruding D.G. Now JC (you
plean wh D.G. to dinum w/
me after he has -nviewed .)
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
May 6, 1982
TO:
JIM BAKER
FROM:
DAVE GERGEN Dayde
SUBJECT: "Partners with People"
Elizabeth Dole's very thoughtful memo on "Partners With
People" is based upon a notion that is absolutely on target
the need for the President to show that he cares about people
out across the country and is in touch with them.
I have serious reservations, however, about launching a formal
campaign such as "Partners With People":
-- It locks us into a format for his travels; I would
prefer great flexibility.
-- It looks staged and smacks too much of Carter.
-- It has overtones of that effort during the late 1970s
when the RNC made films saying very explicitly: Republicans
care about people, too. That drew an adverse reaction, as I recall.
In my view, we have made some very significant forward strides
in recent days with some of the events that Mike has arranged --
e.g., visit to the Butlers, the school visit in Chicago, the
flood visit in the Middle West. The press has really started
to pick up on these themes that we are building in this "outreach"
effort -- and it is partly because the events themselves have so much
originiality and human interest. Mike is now working on some
other ideas that are equally promising. I would keep working
that vein very hard.
In addition, I would suggest that we build upon one of the key
ideas in Elizabeth's memo and, from time to time, have a small
group of citizens meet with RR privately and talk about their
concerns, their problems, their dreams, etc. -- and do that out
around the country. He could very profitably do some of these on
local television -- smaller, more intimate than the "Meet George
Bush" shows, less formal and staged than Nixon's "Man in the
Arena" in 1968. This would be something to which Ronald Reagan
would be uniquely capable of giving intimacy and feeling, an
appeal that I think could have substantial impact.
P.S. We are trying to get our first out-of-town regional press
briefing on the board this Monday in Chicago.
for mos
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
DATE:
April 6, 1982
TO:
Jim Baker
Mike Deaver
Jay Moorhead
T: Form Jim In Ciconni I Thould derous have for give MKD zaha the to
FROM:
Wendy Borcherdt
N.B.
w/ he
SUBJECT:
Volunteer Now America! Telethon
Attached is a list of criteria to identify the twenty to
twenty five major media markets for the National Telethon on
Voluntarism. I feel assured that these criteria will provide
a successful endeavor.
The TELECORP Board of Directors will be filled with people
from the major national volunteer organizations as well as
members from the philanthropic community. The specific
individuals have not been selected as yet, and the suggested
board will be sent to you prior to their selection for your
approval and input, if you wish.
I hope that approval for the Telethon can be given by April
9th. We wish to have the ACTION Advisory Council on Volun-
tarism begin to organize their active participation in the
Telethon, and they meet on April 15th.
Thank you!
AGENCY
THE
ACTION
FOR
ACTION Memorandum
VOLUNTEER SERVICE
WASHINGTON, D.C. 20525
TO
:
Wendy Borcherdt, Special
DATE:
Assistant to the President
FROM
:
Thomas W. Pauken fom Parkner
Director
SUBJECT: VOLUNTEER NOW, AMERICA! TELETHON
As we discussed yesterday in your office, ACTION proposes
to spearhead the telethon effort in 20 - 25 major media
markets around the country, those markets selected on
the basis of the following criteria:
-- a strong statewide support for voluntarism, as evidenced
in the activities of a State Office of Voluntary
Citizen Participation, a strong gubernatorial
interest in voluntarism, an active community
government support for voluntarism
-- a strong volunteer clearinghouse activity already established,
such activity identified by major national
organizations as United Way, the Red Cross,
VOLUNTEER, Volunteer Action Bureaus, etc.
-- a strong local organization of any of the major national
volunteer organizations including the religious
community
-- support for the telethon the presence of successful and
creative federal personnel available to advise
the telethon effort, as identified by HHS, ACTION,
VA, Department of Agriculture, etc.
support for the telethon concept at the local level, including
by the local elected officials, statewide re-
presentatives
-- availability of support for the telethon effort in the local
business community.
Specific criteria will be formalized in the next several days,
using lists of proposed communities from volunteer organizations,
federal agencies and elected officials. Once the initial markets
have been selected, other communities which meet the criteria
and wish to participate may be included.
PEACE CORPS
VISTA
UNIVERSITY YEAR FOR ACTION
NATIONAL CENTER FOR SERVICE LEARNING
FOSTER GRANDPARENT PROGRAM RETIRED SENIOR VOLUNTEER PROGRAM SENIOR COMPANION PROGRAM
-2-
TELECORP, the nonprofit organization, will have a Board of
Directors composed primarily of representatives from major
national volunteer and charitable organizations as well as
members from the philanthropic community. We suggest for
chairman of this Board, Jeremiah Milbank, Jr., President,
J. M. Foundation.
JAB
-
THE WHITE HOUSE
Jay got the agencies to agree
WASHINGTON
on his suggested changes.
He now wants Deaver's OK,
April 6, 1982
and will talk to him.
This is really in Mike's area
MEMORANDUM FOR MICHAEL K. DEAVER
(Communic Group) and i'd
JAY MOORHEAD to Marlea
suggest you can probably
FROM:
pull out of it if you want.
?
SUBJECT: ACTION Agency Telethon
gc
Mike:
As we discussed yesterday here is a copy of
the ACTION proposal.
The thrust of the effort as described here has
been altered in two ways.
1. Instead of the program being launched in
50 states, it will run this year as a pilot
in 20 states in the top 25 media markets
within those states.
2. The Private Sector Volunteer groups (United
Way, Red Cross, VOLUNTEER, etc.) will play
the lead role in setting this program, not
call ACTIONT
the ACTION Agency as indicated on the
proposal.
M and
ACTION wants to announce this program during
real concerno, to 1
coord
National Volunteer Week (April 18-23) so it is
important that you sign off before you go to Europe.
I am now comfortable with the program provided the
changes are adopted.
needreso
CC: Wendy Borcherdt
Jay has gotten agencies
to agree w/ his changes
-he'll talk w/ MD to get his
agreement
f OPL men
THE WHITE HOUSE
WASHINGTON
Toiconi-EVI
May 5, 1982
5/6
MEMORANDUM FOR EDWIN MEESE III
JAMES A. BAKER, III
MICHAEL DEAVER
END
FROM:
ELIZABETH H. DOLE
SUBJECT:
Potential Closing of EEOC Field Offices
Although approximately one week remains before the issue of
closing EEOC field offices comes up for discussion, I thought
it important to share some observations with you.
Certain changes in the EEOC field structure may be desirable
from a management standpoint. However, I doubt that the Admin-
istration will have the opportunity to make its case and
rationally justify the closing of field offices.
We have already received much negative publicity regarding our
handling of previous EEOC matters, such as the nomination of
William Bell and the recent reassignment of EEOC attorneys
(Tab A).
From a strictly political standpoint, it should be noted that
15 of the proposed 19 offices to be closed are in states or
districts where we have incumbent GOP Senators, Governors
and/or Congressmen up for reelection (Tab B). Each of these
areas has high Black or Hispanic populations. Closing these
field offices so close to election would give the Democrats a
campaign issue to use against us to gain minority votes.
NOTE
Conveyed to CF that JAB feels
these offices should not be closed.
9-5-10-82
A
EEOC Senior
UNITED.
Attorneys Get
SECURITIES
MCMXXXIV
Transfer Order
XCHANGE
Comptroller
STATE
Beats Fed to
R
REV
STATE
Futures Punch
By Deborah Graham
and Kim Masters
OMMISSION
By Tim Pryor
Legal Times Staff
Legal Times Staff
While the Federal Reserve Board
In a move that has sent shock waves
deliberates whether it should allow
through the Equal Employment Op-
portunity Commission, EEOC Gener-
THENT
OF
bank holding companies to establish
subsidiaries that engage in commodity
al Counsel Michael J. Connolly last
futures trading activities, the Office of
week reassigned nine of the agency's
senior attorneys to new cities effective
SEQUITUR
the Comptroller of the Currency has
made it clear that it will grant national
April 19. EEOC staff are particularly
banks those powers.
concerned about the reshuffling be-
PRO
DOMINA
JUSTITIA
On April 7, the OCC granted pre-
cause six of those attorneys are black.
liminary approval to a proposal by
No explanation of the personnel
North Carolina National Bank of
shifts (two of which are temporary de-
Charlotte to establish a subsidiary that
tails) was given to most EEOC em-
ployees, including at least three of the
Reagan Enforcement Report:
will act as a commodities commission
merchant. The approval will be made
reassigned attorneys. Who besides
Connolly decided upon the reorganiza-
Early Figures Show Decline
final if the bank meets four conditions
regarding the internal operating proce-
tion was as much a source of mystery
dures of the new organization.
(and rampant speculation) within the
By Steve Nelson
Times. The requests called for statis-
The NCNB plan parallels a proposal
agency as questions about the reassign-
Legal Times Staff
tics covering calendar years; however,
to the Fed by J.P. Morgan & Co. of
ments' purpose. Outraged and aston-
in many instances agencies only com-
New York to éstablish Morgan Futures
ished EEOC staffers and outside civil
The pace of enforcement activity at
pile their enforcement statístics on a
Corp. That subsidiary would deal in
rights attorneys said that the changes
federal agencies slowed during the first
fiscal year basis. In these instances, Le-
bullion, foreign exchange, government
could be ascribed to a racial bias, or
year of the Reagan administration, ac-
gal Times collected additional figures
securities, and commodities and other
insensitivity, that is at odds with the
cording to a recent study of agency en-
covering the six-month period begin-
futures. The Fed instituted a rulemak-
commission's mandate.
forcement conducted by Legal Times.
ning Oct. 1, 1981, and ending March
ing proceeding on the J.P. Morgan pe-
Connolly vigorously denied any ra-
The biggest drops, in terms of cases
31, 1982.
tition. The proceeding will determine
cial motivation. "The top four people
brought or processed, occurred at two
Nowhere are the statistics more re-
whether the activity is permissible for
in the trial division are going to be a
agencies that were particular targets of
vealing than at EPA. In calendar year
bank holding companies under
female, a Hispanic, and two blacks. Is
Reagan regulatory reform efforts: the
1981, for example, EPA referred 79
§ 4(c)(8) of the Bank Holding Com-
that racist? There's not a shanty Irish-
Environmental Protection Agency and
cases to the Justice Department, com-
pany Act. The OCC's move is certain
man in the bunch," he said.
the Federal Trade Commission. Sig-
pared to 252 the year before. Similarly,
to draw fire from those segments of the
James N. Finney, the trial division's
nificant reductions in enforcement ac-
cases referred to the central office by
commodities industry that have al-
associate general counsel, and Earl
tion also occurred in civil cases brought
the regions (for further development)
ready made their opposition to such
Harper Jr., assistant general counsel
by the Justice Department's Antitrust
fell from 313 in 1980 to 66 in 1981. (In
bank operations known in the Fed's
for litigation services, are the two high-
Division and the Occupational Safety
each category, referrals had topped
rulemaking proceedings. It is, at the
est-ranking blacks who have been
and Health Administration.
250 in both 1978 and 1979.) The num-
same time, consistent with an increas-
Statistics were provided by various
ingly aggressive stand by the OCC in
Continued on page 2
federal agencies at the request of Legal
Continued on page 8
promoting the competitive posture of
the banking
Personnel Transfers Raise Eyebrows at EEOC
While one of the reassigned attor-
help reduce backlogs, Connolly said he
Continued from page 1
neys suggested that the changes were
hopes that, as a result of the personnel
made "to create the type of turmoil
shifts, the agency will have no backlog
transferred. Finney, who refused a
that will affect our ability to do the
within one year.
120-day detail as district director of the
job," others hypothesized that the
Connolly acknowledged that he
Chicago office, has been offerred a 90-
overhaul was intended to get regional
wanted "to reshape the entire trial di-
day detail in New York. According to
attorneys to resign so that Connolly
vision" by transferring to D.C. "peo-
Connolly, Finney has not yet accepted.
and Acting EEOC Chairman Cathie
ple that have demonstrated a philos-
Temporarily replacing Finney is
A. Shattuck could fill the jobs with
ophy that is akin to mine." Hc empha-
Gretchen Houston, who was acting re-
their own people. (Denver and Detroit
sized that some changes were dictated
gional attorney in St. Louis. Houston,
are Shattuck's and Connolly's respec-
by "humanitarian" considerations.
who is white, is on a 120-day detail in
tive hometowns.)
Connolly specifically cited Jones' reas-
the associate general counsel job.
All of the attorneys except for Rowe
signment to the Denver office. Jones is
Harper has been named regional at-
and Finney have accepted their reas-
currently hospitalized in Denver.
torney in Baltimore; and Ivan Rivera,
signments, but several have done so
Connolly said he apprised Shattuck
a Hispanic who was acting regional at-
reluctantly. While no formal challenge
of the changes before they were made,
torney in Dallas, is now one of two
to the new appointments has been
but did not consult with Clarence
assistant general counsels in the trial
made, one of the regional attorneys
Thomas, who is expected to become
division in Washington, D.C. Connol-
said the action might be open to con-
chairman of the commission within the
ly acknowledged that he recently had a
test under Title VII of the 1964 Civil
next few weeks, or with the two other
policy disagreement with Harper, but
Rights Act. Another attorney outside
commissioners. Stressing that the
he said that Harper's transfer had
the agency acknowledged that man-
changes "involve the general counsel's
nothing to do with the argument.
agement has broad discretion to make
office, not the policy-making arm of
With the exception of Chicago re-
personnel changes, but said the reas-
the agency," Connolly indicated that
gional attorney John P. Rowe (who re-
signment might violate the Civil Serv-
he believed any authorization from
ceived a reprieve from his transfer to
ice Reform Act because, he said, there
Thomas was unnecessary. "I hoped I
New Orleans after complaining of per-
is no apparent reason for them.
made a management decision that
sonal hardship), the reassigned region-
Adding to the confusion was the fact
would inure to the benefit of the agen-
al attorneys are black. St. Louis re-
that Connolly left Washington to at-
cy," said Connolly, who later added,
gional attorney James R. Neely Jr.,
tend an EEO conference in Las Vegas
"I don't think I owe anybody an expla-
who was on detail in New York since
while the reassignments were still be-
nation.
The people that are moving
last June, is now New Orleans regional
ing announced.
got an explanation-the people that
attorney. George Darden is now the
Reached in Las Vegas, Connolly
are griping don't know who's coming
11
regional attorney in Detroit rather
said the reassignments were the result
in or what's happening."
than Denver. Joseph Mitchell of Dc-
of an internal audit that he and Acting
Reps. Patricia Schroeder (D-Colo.)
)
troit is the new Dallas regional attor-
Executive Director Edgar Morgan
and Augustus F. Hawkins (D-Calif.)
ncy. Regional attorney Robert M.
conducted in order to make the agency
sent letters to Shattuck asking for ex-
)
Jones has been sent from Dallas to
more cost-effective and efficient. A bc-
planations of the changes and their
Denver.
liever in the ability of "new blood" to
aides said a hearing may be set.
B
EEOC'S PROPOSED FIELD OFFICE CLOSINGS
Location
Political Races
Newark, New Jersey
Buffalo, New York
Pittsburg, Pennsylvania
Senate and Governor
Washington, D.C.
Norfolk, Virginia
Senate
Greensboro, North Carolina
Incumbent Congressman
Greenville, South Carolina
Incumbent Congressman
Dayton, Ohio
Governor
Cincinatti, Ohio
Governor
Louisville, Kentucky
Senate and Governor
Nashiville, Tennessee
Senate and Governor
Minneapolis, Minnesota
Senator, Governor, and incumbent
Congressman
Olkahoma City, Oklahoma
Governor and incumbent Congressman
El Paso, Texas
Governor
Alburquerque, New Mexico
Senate and incumbent Congressman
San Diego, California
Senate, Governor and incumbent
Congressman
Fresno, California
Senate, Governor and incumbent
Congressman
San Jose, California
Senate, Governor
Oakland, California
Senate, Governor
& 08L nomes
THE WHITE HOUSE
WASHINGTON
April 20, 1982
MEMORANDUM FOR JAMES A. BAKER, III
A
FROM:
ELIZABETH H. DOLE
SUBJECT:
Cabinet Council on Economic Affairs -- April 20
Noon Meeting
The Cabinet Council recommendation for Roman Numeral II
"Controlling Outlays Within a Given Fiscal Year, " will
be unacceptable to the conservatives and limited tax
groups as well as business groups that favor the amend-
ment. They feel it should be left unchanged with any
deficit amendment requiring a 3/5th vote of both Houses.
4130
JC
JC-NS
oplames
THE WHITE HOUSE
WASHINGTON
April 23, 1982
MEMORANDUM FOR EDWIN MEESE III
JAMES A. BAKER, III
MICHAEL DEAVER
FROM:
ELIZABETH H. DOLE
A
SUBJECT:
OPL Activity Report (April 1-15)
I. ISSUE UPDATES
Insurance Industry: Industry united behind concept of compromise
tax bill. Proposal presented for $1 billion in industry tax
increases to Administration.
Construction Industry: Possible major battle to be waged by
small contractors re completed contract method of accounting,
which they fear will be too restrictive.
Clean Air: Business grassroots activity continues; offset by
numerous disappointments in both houses re congressional sup-
port and disenchantment re lack of administration commitment.
Product Liability: Ad hoc working group to be set up under
Secretary Baldrige; major large and small business push for
federal product liability standards.
Budget Compromise: Many business organizations urging the
President to agree on compromise FY '83 budget; continued
impasse has created an activity vacuum among business coali-
tion. Almost all feel a compromise is needed before interest
rates will fall.
Labor: Cool reception to President's address before Building
and Trades and hostile reception to Chairman Richards' speech
(RNC), indicates seriousness of blue collar dissatisfaction
with the administration's economic recovery program.
HHS Union Consultant: Issue continues to heat up.
Tuition Tax Credit: Reaction to President's NCEA speech very
positive, and has considerably helped our position with the
Catholic community. Grassroots mobilization effort underway
for expected battle on Hill.
Jewish Community: Howard Squadron, Chairman, President's
Conference of Major American Jewish Organizations, gave inter-
views to various journalists calling participants at the President's
meeting "Court Jews", however, was viewed as positive by community,
which appreciated discussion prior to Sinai return.
2
Religious Community: Overwhelmingly favorable response from
participants at the April 13 meeting of PSI Task Force with
religious leaders. This event is the first in recent memory that
a president sat down with leadership from nearly every denomina-
tion.
Voting Rights Act: Jesse Jackson is in the process of organizing
a march in Washington in support of the Voting Rights Act in early
to mid May.
Clean Water: Business unlikely to support Administration bill
unless it includes a case-by-case provision for waiver. This
provision is not currently in the Administration bill.
Ground Zero Week: Anti-nuclear activities in D.C. received good
press; small crowds.
Special Assistant for Minority Affairs: Conflicting reports in
The Washington Post and The New York Times fueling speculation in
minority community. Backlash from Hispanic community underway.
II. KEY ACTIVITIES
4/1 National Rifle Association; Elizabeth Dole speech before
Annual Dinner in Philadelphia.
4/1 Task Force on Voluntarism; meeting with the President.
4/1 National Federation of Industrial Unions; New Federalism
briefing.
4/1 Savings & Loan Association; meeting with the President and
briefing.
4/1 American Society for Quality Control; speech by Virginia
Knauer.
4/1 Harvard University; briefing.
4/2 National Conference for Quality; briefing.
4/2 National Conference on Long-Term Care Issues; speech by
Virginia Knauer.
4/2 Fort Worth (Texas) Mexican American Chamber of Commerce;
speech by Henry Zuniga.
3
4/3 National Council of Career Women; speech by Wendy Borcherdt.
4/3 National Council on Aging; speech by Elizabeth Dole
4/5 Building and Construction Trades, AFL-CIO; speech by
President.
4/6 Zonta; speech by Mary Elizabeth Quint.
4/7 Better Business Bureau; film interview of Virginia Knauer.
4/12 Selected Jewish Leaders; meeting with the President and
NSC briefing.
4/12 Links, Inc.; Remarks to Baltimore Chapter Annual Banquet
by Thelma Duggin.
4/13 National Food Processors Association; Virginia Knauer
speech on consumer complaint handling.
4/14 National Automobile Dealers Association; Virginia Knauer
remarks on consumer issues.
4/14 National Advisory Council on Rural Development; briefing.
4/14 S.E. Conference of Women Business Owners; speech by Thelma
Duggin.
4/15 "Teacher of the Year" presentation ceremony by First Lady.
4
III. ATTACHMENTS
TAB A:
Near East Report reports favorably on President Reagan's
speech before the National Conference of Christian and
Jews.
TAB B:
Positive local press follow-up by participant in President's
meeting with religious leaders on April 13.
TAB C:
"No Time to be Timid", support for President's program
from Theodore A. Burtis, Chairman and CEO, Sun Company.
This fine article has been sent to 46,000 employees and
to all members of Congress.
TAB D:
Commentary by President of Association of Wall and Ceiling
Industries in Construction Dimensions urging support of
President's program by construction industry.
TAB E:
Positive twist in Realtor News of President's March 29
speech at Realtors National Conference.
TAB F:
National Association of Wholesaler-Distributors newsletter
Channels highlighted the issuance of the President's first
state of Small Business Report to Congress.
TAB G:
NAM Press Release urging business leaders to urge
members of Congress to work with President Reagan
to develop a FY '83 budget compromise.
TAB H:
Excellent political comment by John Baize on "Ronald
Reagan - The Man Who Sets The Agenda".
TAB I:
Hispanic Times of Texas, regular column by Henry Zuniga
on Presidential initiatives for Hispanics.
TAB J:
Mandatory Retirement -- nice New York Times photo of
Older Americans Month proclamation signing and statement
by President.
TAB A
APR
NEAR
Washington Weekly on
Heard in
U.N.
American Policy in
Washington
Resolution
the Middle East
EAST
In a move that indicated the depth of
April 2, 1982
Congressional concern over recent
anti-Israel actions in the U.N., the Sen-
REPORT
ate Foreign Relations Committee
Volume XXVI, No. 14
unanimously adopted a resolution
calling for the United States to with-
draw support for the U.N. General As-
Editorial
Democracy and Violence
sembly if Israel is expelled or sus-
pended. Sen. LARRY PRESSLER (R-S.D.)
The outline and objective of the Israel government's policy on the West Bank
amended the resolution to include
and Gaza emerged clearly last week in the press conference statements (see
other U.N. agencies in addition to the
page 64) by Professor Menachem Milson, the civil governor of those areas. The
General Assembly. Sen. DANIEL P.
policy is, simply, to break the power of the PLO, by thwarting its allies and
MOYNIHAN (D-N.Y.), an author of the leg-
instruments who foment violent riots, with Jordan's support, and by encouraging
islation, warned that failure to men-
and rewarding Palestinian Arabs who accept Israel's rightful legitimacy.
tion Israel by name in the resolution as
That policy is predicated on the belief that only thereby can peaceful coexis-
some Senators proposed, falls into the
tence be attained between Israeli Jews and the Palestinian Arabs, and the
trap first laid out by those who seek to
foundation laid for an authentic evolution toward Arab autonomy.
delegitimize Israel by referring to it as
Whether this is, in fact, the best way to eradicate PLO power and influence is
the "Zionist entity." Sen. PAUL TSONGAS
the subject of intense debate within Israel itself, and no doubt here as well.
(D-Mass.) spoke out in support of the
Certainly there is no disposition there or here to feel anything but regret and
resolution charging that for too long
chagrin over the killings and woundings on both sides. But on one thing there
third world leaders have used the
can be little doubt: There is in Israel an overwhelming consensus that the PLO
United Nations to "vent their spleen"
stranglehold on public life in the territories must somehow be eliminated.
and this resolution tells them to act
American libertarians and democrats, concerned over the use of force and
responsibly and maturely. Sen. PAUL
violations of political rights, should carefully consider the fundamental princi-
SARBANES (D-Md.) underscored the im-
ple that must actuate a democracy in a time of war:
portance of a direct and explicit reso-
A democratic society has no moral obligation-and therefore no philosophi-
lution.
cal, legal or political duty-to provide freedom of action for α group which is
A substitute amendment which did
avowedly dedicated to that society's physical extirpation, and which acts sys-
not specifically mention Israel by
tematically to execute its mandate by violence and terror.
name and which called only for "the
This principle applies particularly to a vulnerable democracy like Israel. For it
most serious consequences for con-
has been beleaguered since its inception by a host of Arab regimes engaged in
tinued U.S. support," was defeated by
total war against it, and whose intention to destroy it has been even more
α vote of 3-7. Sens. Paul Sarbanes,
unabashedly explicit than Hitler's in Mein Kampf-and whose chosen instru-
Paul Tsongas, JESSE HELMS (R-N.C.),
ment in that war is the PLO.
RICHARD LUGAR (R-Ind.), NANCY KASSE-
These are regimes, it should be noted, which are for the most part usurpers
BAUM (R-Kan.), RUDY BOSCHWITZ (R-
whose legitimacy is open to doubt-regimes which American and West Euro-
Minn.) and Larry Pressler supported
pean liberals would not for α moment tolerate in, say, El Salvador or Guatemala
the stronger version.
or Chile.
The Committee resolution gained
The PLO is not a legitimate political force. Like all totalitarian ideologies and
adherents during the week. They in-
movements of both right and left, it debases and exploits the language of
cluded: MAX BAUCUS (D-Mont.). JOHN DAN-
democracy, socialism and liberation. But that subversion of ideas and language,
FORTH (R-Mo.), PAULA HAWKINS (R-Fla.), HEN-
accompanied by calculated violence, only reinforces its role as an authentic
RY JACKSON (D-Wash.), BoB KASTEN (R-Wis.).
terrorist group against which democracy must defend itself.
EDWARD KENNEDY (D-Mass.), JOHN MELCHER
(D-Mont.), HOWARD METZENBAUM (D-Ohio),
Reagan on the Right of Advocacy
GEORGE MITCHELL (D-Maine), DON NICKLES
"Every American, every citizen from every walk of life-rich or poor, black,
(R-Okla.), BoB PACKWOOD (R-Ore.). DAN
brown or white, Jew, Christian or Muslim, northerner or southerner-has a full
QUAYLE (R-Ind.), DON RIEGLE (D-Mich.), JIM
right and obligation to participate" in shaping American government policies
SASSER (D-Tenn.), ARLEN SPECTER (R-Pa.).
and programs. "Every citizen and every citizen's group is guaranteed the right to
Additional signers of the similar
speak out-and must be encouraged to do so without fear of reprisal or defama-
House resolution include: JOSEPH ADDAB-
tion. No group should be bullied into silence by racial or ethnic slurs, or the fear
BO (D-N.Y.). SKIP BAFALIS (R-Fla.), DOUG BAR-
of them. The language of hate-the obscenity of anti-Semitism and racism-
NARD (D-Ga.), CLEVE BENEDICT (R.-W.Va.).
must have no part in our national dialogue."
CARROLL CAMPBELL (R-S.C.), JAMES COLLINS
With those words, before the National Conference of Christians and Jews,
(R-Texas), JIM COYNE (R-Pa.), JOHN DUNCAN
President Reagan has honorably repudiated the ugly anti-Semitism that sur-
(R-Tenn.), JIM DUNN (R-Mich.) JOSEPH EARLY
faced during the AWACS battle last year. In doing so, he has justly reiterated the
(D-Mass.), MICKEY EDWARDS (R-Okla.), DAVID
fundamental right of each individual and every group to advocate, to dissent, to
EMERY (R-Maine), BILLY LEE EVANS (D-Ga.),
protest, for or against official policy.
(continued on page 64)
61
TAB B
KENNETH V. KETTLEWELL
(313) 833-3211
Prepared. Minister for Execution
of Detion Presbytey
SEMPER
FIDELIS
who are alarmed
by cut backs)
First Presbyterian Church
2930 Moodward Avenue at Fomund Place
Betroit, Michigan 48201
the White House Luncheon theme, April 13, 1982
The Private Sector Initiative Committee is headed by the President of Armco Steel,
Middletown, Ohio. Its purpose is to encourage groups, churches, industry, organizations
to work together in communities to meet the needs in the community.
The President made these points:
1. Federal government exists to make sure that the rights of all citizens in
all the states are preserved and that the needs of all citizens in all the states
are met. Federal government does not exist to meet all those needs, but to see that
those needs are met. The trend of recent decades has been for the federal government
to take more and more responsibility to meet the needs. The present philosophy is to
reverse the process and to get us back to where we were with local government
and federal government each carrying on the responsibility it has to perform.
2. Industry is being challenged, as a part of the private sector, to double
its contributions in the next three years (financial contributions) to the community.
3. We are always wondering why God doesn't do something about certain situations
or human problems. "I think God is wondering why we don't do something."
My opinion:
We can find all the fault we want to with President Reagan and shoot all the
bullets at the White House we can manufacture. This is futile. Mr. Reagan is not
the problem. We are now living in a new decade with a changed emphasis upon the
role of federal government. It is not the 1960s and will not be ever again.
Bomb the White House off the planet today, and we still would not be returning to
the social programs we previously enjoyed. Neither political party will be able
to manufacture the money any longer to do what we were doing before. We must
find new ways, and the Private Sector Iniative is one attempt to meet the need and
the problem. The sooner we buckle down and get to work and cooperate to solve
problems, the better off we will be. We need to quit crying and get to work.
I think the Church has been creatively engaged in community life a long while.
This is not a new thrust for the church.
KVK 4-15-82
2A
DETROIT FREE PRESS/TUESOAY, APRIL 13, 1982
Clergyman learns about volunteerism
By RICK RATLIFF
ONE RESULT was that eight mothers
said. "Only when we become personally
Free Press Staff Writer
who helped form a new Parents Club ended
involved do we really care."
Although the Rev. Kenneth Kettlewell
up joining the 500-member congregation as
admits concern about federal budget cuts for
well. Mr. Kettlewell said he has long had
MR. KETTLEWELL said his luncheon
FIRST PROSBYTERIAL CHORCH-
social programs, he says his Detroit church
trouble getting neighborhood parents to join
invitation came after he sent the president
offers a "tiny example" of how such cut-
the church.
an account of what happened at his church
backs can have positive effects.
"These people, once they became in-
in January. Reagan sent a personal reply.
When Mr. Kettlewell, pastor of First
volved in the program, have joined the
But Mr. Kettlewell sad he does not
Presbyterian Church in Detroit, learned last
church," he said. "We call that a break-
support wholesale slashing of federal bud-
fall that his church would get just $14,000 in
through."
gets for social program
federal money this year for a neighborhood
So, It seems, does President Reagan, who
"I'm as concerned as everyone 0 :? is," he
child care program that received $34,000 in
has invited Mr. Kettlewell to be one of about
said. "This positive ( vample which
1981, he realized changes were necessary.
100 clergymen attending a White House
support and think is beautiful It's just one
Mr. Kettlewell, 57, decided to use volun-
luncheon today to discuss the virtues of
positive step."
teers instend of paid staffers for some of the
private initiative.
Christine Young. a mother with a seven-
social, athletic and educational programs the
"People start taking care of situations
year-old son in the program, said she joine
Free Press Photo by PATRICIA BECK
church at 2930 Woodward has for four-to-
and meeting needs and opportunities instead
the church after joining the Parents Club
Rev. Kanneth Ketilewell: "Only when we become personally involved do we really care."
16-year-olds.
of depending on the federal government, the
Doctar se the akes Mr. Keitlewell's sermons
TAB C
No Time
To Be Timid
by Theodore A. Burtis
Chairman and Chief Executive Officer,
Sun Company
Reprinted from the Spring 1982 Issue of Sun Magazine
No Time
To Be Timid
by Theodore A. Burtis
Spring 1982
because the medicine has barely had
As for the aging. in 1978 the
time to start to work.
federal outlay for Social Security.
What the critics overlook as each
Medicare and other benefits for the
"
new wave of statistics comes in on
elderly amounted to just over $100
budget deficits and revenue projec-
billion. By 1983. under Reagan. that
tions is that nothing has really
amount will be over $200 billion and
changed in the worth of the presi-
by 1987, nearly $300 billion. No
We are already
dent's program that was so widely
apparent abandonment there.
into the difficult times
praised a year ago. The value is
What the president has said is
still there.
the president said
let's get back to the virtues of self-
Bringing government spending
reliance, to local responsibility, to
would be a part
down, strengthening national
the attitude of "can do." Let's return
of this turnaround.
defense, easing the individual tax bur-
to the traditional strengths that built
den, emphasizing trade over aid,
America.
eliminating excessive government regu-
Certainly, there is a period of
"
lations, returning to individual enter-
adjustment facing the nation. We
prise and community cooperation
are already into the difficult times
- all of these principles received
the president said would be a part of
enthusiastic applause when announced
this turnaround. Our determination
Some people seem to be at it again,
as the goals of the Reagan program.
to manage our way through these
engaging in that popular pastime of
He made it clear that the recovery
days will be the key to achieving the
rushing to judgment. This time, the
would take time - most of the
goals we have agreed upon.
target is President Reagan's eco-
decade - and he said it would be
We at Sun have not lost con-
nomic recovery program.
accompanied by some pain. Revers-
fidence in our strategy of commit-
The daily newspaper columns and
ing a half-century trend of growing
ment to energy resource develop-
evening newscasts are crowded with
dependence on central government
ment. We have no intention of
commentators denouncing and doubt-
and curtailing the ever-expanding
changing it, even though some indi-
ing. Despite the fact that the presi-
governmental share of the nation's
vidual programs within it may have
dent has been in office for little more
Gross National Product - these
to be adjusted. We are still com-
than a year, and his economic pro-
actions were going to take both time
mitted to a tripling of our contri-
gram has been in effect for less than
and a change of habits.
butions budget to lend a helping hand
half that time, critics, not seeing
Now, the eagerness of so many to
to some of the human service insti-
instant miracles, are quick to brand
prematurely condemn the program
tutions who will need more private
the program a failure.
without giving it a fair try indicates
support. And through our employee-
What we're hearing is not just the
that they either do not understand
citizenship efforts and our loaned-
familiar chant of political foes who
the goals or do not accept the
executive program, we will do our best
have opposed the president's initia-
timetable. Among their complaints
to foster the spirit of volunteering
tive from the start. but we are also
is that the Reagan approach seeks to
- Americans helping each other
discovering symptoms of cold feet
succeed by abandoning help for the
over the rough spots.
among friendly public officials, for-
poor and the aging.
The president has courageously
merly supportive citizens and even
That contention won't stand up
given us what has been aptly
members of the business community
well under a simple examination of
described as "a radical program in
who should be vocal in welcoming
his budget proposals. The 1980 food
pursuit of traditional values." I
the Reagan efforts to restore the
stamp program was budgeted at
believe he needs the time to make it
free-market system. The early strong
nearly $9 billion. The 1983 Reagan
work. And I believe it's time some of
endorsements have been watered
budget provides $10 billion for food
us started saying so.
down lately, and that's a shame
stamps. In 1977 the housing assis-
tance from the U.S. government
was $3 billion. By 1983 it will be
nearly $9 billion. Such numbers
do not add up to abandonment of
the poor.
TAB D
PRESIDENT'S COMMENTS
more important
than ever
From a businessman's viewpoint, President Ronald
his business decision. I don't refer to "running
Reagan poses a great problem-and a great danger.
scared"-but a little bit of fear never harmed any sen-
Most businessmen tend to see the Reagan administra-
sible contractor. With regulators working on one side
tion as making a bold and determined effort to curtail
to increase the cost of doing business and other regula-
government regulation and produce an economic envi-
tors trying to take profits away on the other end, a wary
ronment where business interests can flourish again.
eye is appropriate.
The current recession is viewed as a temporary condi-
At the same time, there are companies out there who
tion that will end soon and allow President Reagan to
would like to break into the big construction market
get on with the programs for which he was elected
with a new product and they'd dearly love to have the
or at least allow his efforts to go on with less difficulty.
contractor share the liability for this so-called progress.
Once this recession exhausts itself we may fully ex-
Yet the contractor-sharing liability or not-must re-
pect to see Reaganomics and the withering away of ex-
mind himself that there is precious little testing available
cessive bureaucratic regulations begin in earnest. That's
for him to apply judgment. A contractor simply has to
the reasoning as I sometimes see it.
be careful.
And that's the problem and the danger. The idea that
More than ever, I believe, a contractor should get into
we can sit back and allow President Reagan to carry
an association where we can all help each other. There's
the burden is totally and unequivocally false. Indeed,
much to be done in the next few years
MUCH
now is the time-and it's more important than ever-
and we had just as well get on with it together.
to push, to exert effort, to get behind the President and
If you honestly don't agree that something has to be
work.
done and the present administration stands the best
The regulators certainly haven't given up. A Reagan
chance of doing it, perhaps you can come up with a
Administration hasn't deterred them one bit. Nor is
better answer to Reagan's own query:
there any guarantee that everything this business-orient-
"If not NOW-When?"
ed administration comes up with will be in the best inter-
"If not US-Who?"
ests of contractors. Should there be any doubt about
this, I would remind you of the recent flap over the IRS'
latest attempt to put all contractors on the completed
Vernon
L.
Caymen
contract form of business accounting.
To me, these are trying times and they are times when
Vernon L. Raymer
every contractor should be more cautious than ever of
AWCI President
Construction Dimensions/April 1982
5
/
TAB E
R
REALTOR NEWS
Volume 3, Number 12 April 5, 1982
The Advocate Newspaper for Private Property Rights
Reagan acts to 'restore health to housing'
WASHINGTON Declaring that
relatives. to assist young people for the
"Housing is one of our highest social
down payment."
priorities," President Reagan announced
The housing industry also will receive a
several actions designed to provide short-
financial boost from pension fund invest-
term relief to the beleaguered industry:
ment when barriers placed by the Em-
These actions include changes in the
ployee Retirement Income Security Act
mortgage revenue bond program, union
of 1974 are removed. The change in the
and private pension fund regulations and
act, which regulates union and private
FHA mortgage guidelines in order to help
pension plans, will be made by the Labor
"restore health to our ailing housing
Department in 30 to 60 days, Reagan an-
industry."
nounced.
"Private home ownership has been the
Other action will, be said, "speed the
bedrock of our social system," be told
processing of mortgages to encourage the
more than 3,000 enthusiastic Realtors at
private sector to take over the basic
the Washington Conference general ses-
processing of loan applications.'
sion here last week. "But today, too many
American families can no longer afford
'Working group®
the price of an average home. We will not
Reagan also announced creation of a
look the other way as the rock on which
working group of the Cabinet Council for
we have built this society continues to
Economic Affairs, chaired by HUD
crumble."
Secretary Samuel Pierce, to "bridge our
short-term measures and the structural
Other plans to follow
reform proposals of our housing commis-
Reagan said the "early actions" he was
sion. Formation of the working group now
announcing would be followed by other
will ensure prompt action to rejuvenate-
plans. Further, he vowed "preservation of
housing."
the homeowner mortgage tax deduction
Echoing the philosophy of the National
and maintenance of the important roles of
Association of Realtors, Reagan said his
FHA and GNMA."
policies for the housing industry are
Reagan also reaffirmed his dedication
"based on the essential right to private
to a balanced budget.
property and in private property,
"I have no intention of giving up on
President Reagan accepts congratulations from NAR officers Harley W. Snyder (left), president-
nothing is more important than home
balancing the budget," be declared.
elect, and Julio S. Laguarta; Association president, after his headline speech Monday, March
ownership."
"Government deficits are a plague on our
29, at the Realtors Washington Conference.
And be praised the National Associa-
economy. I am open to any and all sugges:
tion for the types of housing aid programs
tions to reduce the size of the federal
gram has already begun to work." But in-
related programs, Reagan said his ad-
it has suggested. "You are not asking the
deficit in a way that does not endanger
terest rates, Reagan stressed, still are too
ministration will "move quickly" to
federal government for multimillion-
our freedom."
high.
loosen the arbitrage restriction and
(Continued on page 7)
The continuing decline in the rate of in-
In a point-by-point outline of the
broaden definitions of distressed areas
flation is proof, be said, that "our pro-
changes he was initiating in housing-
under the mortgage revenue bond pro-
gram, enabling 50,000 more homebuyers
This Issue
to obtain mortgages at lower cost.
Mortgage bond programs
contains special
Guidelines to be eased
Further, existing FHA guidelines will
coverage of
need improving: Laguarta
be eased to expand the number of poten-
the Realtors
tial homebuyers qualifying for FHA mort-
gages, he explained. action," be
1982 Washington
said, "will be of particular benefit to those
Conference
WASHINGTON Administrative and
The proposal is limited to first-time
purchasing their first homes - such as
legislative improvements in state and
homebuyers, 90 percent of whom cannot
lower-cost condominiums and will allow
municipal housing bond programs should
now qualify for a median-priced home,
provide as much as $10-13 billion for
and will include new as well as existing
mortgages, equivalent to help for 300,000-
homes, he said.
100,000 families, said Julio S. Laguarta,
"Existing-home sales,' Laguarta
Congress supports aid plans
president of the National Association of
pointed out, "stimulate as many jobs for
Realtors. "This can be done without in-
Americans as are created by new homes.
creasing the administration's proposed
Laguarta also recommended that & tax
to revitalize housing industry
deficit," he added.
credit be made available for first-time
Testifying last week before the House
homebuyers, and he said use of existing
Ways and Means Committee on the impact
funds from those estimated for the All-
WASHINGTON-Tax-free savings ac-
have so far stymied use of mortgage
counts, interest rate subsidies and tax
of federal tax and budget policies on the
Savers certificate could allow 250,000
revenue bonds, an issue President Reagan
overall economy and housing, Laguarta
credits for first-time homebuyers, and
more families to own homes. Or, he said,
also addressed in his speech to the ses-
said, "The mortgage bond amendments
the tax credit could be made to the lender
loosened regulations for mortgage
sion.: "The [George] Mitchell-Jim] Sesser
could be implemented in the upcoming
who would pass along the credit to buyers
revenue bonds were among some of the
bill will give real relief to a vital
House-Senate Conference on H.R. 4717,
in the form of lower interest rates.
housing-aid programs supported by con-
industry." Byrd explained, "and. that's
the Miscellaneous Revenue Act of 1981.
Laguarta rejected the administration's
gressmen last week at the Realtors
what's needed now!
He said this will be the most immediate
Washington Conference general session.
proposal that would force corporations to
Representatives from both parties also
way to provide relief for the housing in-
"The housing industry needs help
amortize over 10 years any interest and
expressed support for efforts to ease the
iustry, which is in the worst housing
now," declared Sen, Robert C. Byrd
taxes paid or incurred during the con-
bond program's regulations. Rep. Thomas
depression since the 1930s, adding that
(D-W.Ya). "The entire housing industry
struction period of a nonresidential
J. Downey (D-N.Y.) explained his bill
he program will not add to the deficit
building.
is in a virtual depression. Nothing has
that would reduce the first-time buyer re-
estimates.
more long-term implications than the
(Continued on page 7)
quirement from 100 to 80 percent as well
housing crisis."
as increase the arbitrage the difference
Byrd pushed a Democrat-backed plan
between the interest rate paid on-the
National Association of Realtors
Second-class postage paid
to buy down the interest rate for a fixed
bonds and the rate charged on mortgages
430 N. Michigan Ave.
at Chicago, Illinois and
period for homebuyers that is broader
financed by the bonds.
EALTOR'
Chicago, III. 60611
additional mailing points.
than the proposal introduced by Sen.
"We need to make mortgage revenue
Richard G. Lugar (R-Ind.). "Unlike the
bonds more realistic in today's market,"
Lugar bill, it would not benefit just new-
agreed Rep. Thomas B. Evans Jr. (R-Del).
home buyers." he said. "Thirty percent of
"Mortgage revenue bonds are a way to
the projected aid would go to buyers of ex-
help housing that doesn't aggravate an
isting homes."
already bloated federal budget."
Byrd also voiced support for legislation
Rep. Chalmers P. Wylie (R-Ohio) called
that will broaden the regulations that
(Continued on page 7)
2 REALTOR NEWS®
April 5, 1982
Realtors Washington Conference
Congressmen reported
responsive on housing
WASHINGTON - Congressmen con-
and Nebraska.
tacted by Realtors about housing and
Little or no reservations were expressed
other issues of concern to NAR were very
about the mortgage revenue bond pro-
responsive to the Association's emergency
gram proposal, which would free as much
housing legislative proposals, according to
as $15 billion by year-end.
reports by the regional vice presidents.
"Twenty-two of the 23 congressmen we
Proposals to free the existing mortgage
visited responded affirmatively to the
revenue bond program and to provide tax
revenue bond proposal," said Stuart A.
credits to first-time homebuyers or
Davis, regional vice president for Kansas,
lenders received support from most
Missouri, Oklahoma and Arkansas, and a
senators and representatives. However,
member of the President's Commission on
some were apprehensive about the tax-
Housing.
credit proposal because of fears of losses
James R. Ingham Jr., regional vice
in federal revenues.
president of Maryland, Delaware, West
"A high percentage were in favor of the
Virginia and Washington, D.C., said that
tax credit," said Benny McMahon, re-
"All of the people we polled were in favor
gional vice president for Texas and Loui-
of it," and McMahon said that although
siana, "but many felt we were wasting
four or five congressmen were not totally
our time because of the temperament of
familiar with the program, "Only one said
Congress."
he was totally opposed to our proposal."
"There was concern about the tax-
Responses to questions about whether
credit proposal, but they could see it as
congressmen would vote to defer tax
being of great benefit," reported Dean A.
relief or to slow the growth in entitlement
Pearson, regional vice president for the
programs, defense programs or other
Realtor Don Blevins (left) of Lexington talks housing issues with Rep. Hal Rogers (R-Ky.) during
northern Midwest states of North
spending programs to reduce the federal
Capitol HIII visitations.
Dakota, South Dakota, Minnesota, Iowa
(Continued on page 7)
Laguarta concludes conference in meeting with press
WASHINGTON - Following is a
pect of renewed inflation would be re-
and senators who will improve housing
that funds that have already been auth-
statement by Julio S. Laguarta, president
duced and, in addition, real interest rates.
and economic policy will survive.
orized should be diverted to more effec-
of the National Association of Realtors.
could be cut by three percentage points.
Currently, the president and Congress
tive programs for housing
The statement was delivered March 31 at
This would allow at least 2 million
have failed to live up to their com-
In addition to the president's commit-
a press conference at the conclusion of the
families and households to purchase their
mitments on budget this year. They have
ment to improve the mortgage revenue
NAR Washington Conference.
own home each year, and would protect
overrun their budget commitments by
bond program, our Association proposes
Nearly 3,000 Realtor leaders from every
the value of all homes.
double the rate that has occurred with
that the funds estimated to be used by the
state traveled to Washington to meet
The Realtors agreed that elected
presidents and congresses during the past
All-Savers certificate program should be
with President Reagan and members of
leaders who display a lack of initiative to
10 years.
used to initiate a tax credit for first-time
Congress. They represented nearly
do what must be done run the risk of be-
We stress the need for a healthy hous-
homebuyers.
700,000 Realtors and presented a bal-
ing rejected by their suffering constit-
ing industry to pull the rest of the
Housing, if allowed to, will help pull this
anced program that will affect 150 million
uents; on the other hand, congressmen
economy out of the recession. We propose
country out of recession.
American homeowners and 75 million
would-be homeowners.
The president of the United States per-
sonally met with the leadership of the
Reporters ask about mortgage subsidies, RPAC
Association in the Oval Office and later
addressed a general session of Realtors,
In the question-and-answer portion of
He said he expects legislation to be in-
where he outlined a first step toward im-
the press conference, NAR President
troduced as early as this week on the tax-
proving the health of housing.
Julio Laguarta was asked about support
credit proposal, and that during visits to
The Association commended the presi-
for legislation introduced by Sen. Richard
Capitol Hill by Association members
dent for his program and identified other
Lugar (R-Ind.) that would provide a sub-
there appeared to be a great deal of sup-
steps that must be taken to improve the
sidy to buy down interest rates on mort-
port for the proposal.
health of housing and. the overall
gages. Laguarta indicated that although
The mortgage revenue bond program
economy. Later, reports were presented
the Association is not actively opposing
changes requested by the Association
on our members' visits to nearly every
it, the bill is inconsistent with NAR policy
have already been proposed by President
House and Senate office. The reports
that there be no new spending programs
Reagan.
described a paralysis of leadership that
that would further affect the deficit.
When asked specifically about the
exists in Washington now.
He noted too that the Lugar bill is
Realtors Political Action Committee
The president and Republicans and
limited to new housing, apparently due to
(RPAC) plans for the 1982 elections,
Democrats in Congress are all practicing
the belief that new-home sales and con-
Laguarta noted that RPAC would be ex-
the ancient art of avoiding being the
struction will create more employment op-
tremely active and indicated that
scapegoat for current bad economic
portunity than existing-home sales.
available funds could exceed $4.3 million.
policies. No one is willing to take the lead
He also declared that a new program,
to correct bad housing and economic
"The fact of the matter is," Laguarta
Realtors Active in Politics (RAP), would
policies. In the meantime, in most com-
said, "that existing-home sales will create
result in more than 140,000 members con-
munities, people are suffering a needless
just as many job opportunities as new-
tributing a minimum of 24 hours of their
housing depression and an overall
home construction and sales. The mix
time to political activity, equivalent to
economic recession.
may be different, in terms of where the
$20 million in manpower value.
Realtors petitioned their government to
jobs are, but the number of actual jobs
Hewas asked, too, if RPAC intended to
lower the deficit now and do it by cutting
created is the same."
follow the same pattern as BUILD-PAC,
spending in all program areas - defense,
Hè added that proposals made by the
the National Association of Home
entitlement and others. Only if Congress
National Association of Realtors,
Builders PAC, which has announced that
cannot or, will not act on spending should
specifically mortgage revenue bond pro-
it will not support any incumbent or
income tax relief be deferred in 1983 and
grams and the tax credit for either buyers
challenger who does not demonstrate
1985.
or lenders, are more feasible alternatives.
strong support for emergency housing
We argued that the federal deficit must
"Neither of these proposals would place
assistance.
be reduced by at least one-third of the cur-
pressure on the already high federal
"We intend to examine each candidate
rent estimates in 1983 and 1984, with a
deficit,' be said, "and both are short-term
very closely and determine his or her com-
balanced budget planned for 1985 and
programs that would help stimulate the
mitment to sound economic policies and
1986. If that can be achieved, the pros-
housing industry."
housing." Laguarta said.
Julio Laguarta
April,5, 1982
REALTOR NEWS®
3
Realtors Washington Conference
Reagan proposes 5-point housing program
The following are excerpts from President Reagan's
est rates have put today's housing industry in transition
remarks to the National Association of Realtors' Wash-
and crisis. Consumers can't buy, sellers. can't sell, and
ington Conference.
builders can't build. Interest rates have come down from
A year ago when members of your executive committee
their dizzying heights, but they have not come down
met with me at the White House, we shared our hopes for
enough. Recent gains in controlling inflation, in the sav-
reducing the growth of government spending. Your 2%
ings rate, in tax incentives and in budget reductions will
Solution proposal was considered carefully in the design
continue to push them downward, but the only hope for
of our program, and with your help, we were able to con-
long-term improvement in interest rates is for the Con-
-vince the Congress to make that program the law of the
gress to join me in a bipartisan effort to cut spending.
land. I thank you for your hard work and ask for even
We must reduce these intolerable budget deficits that
more as we continue our struggle to reduce the size and
have haunted us for so many years.
appetite of the federal government.
Attempts to saddlè this administration with the blame
But the dream of ownership - home ownership that is
for economic problems long in the making only sink our
your stock in trade - has turned into a nightmare; not
economy deeper in the quagmire of partisan debate, and
suddenly, not overnight, but after a decade or more of
they don't fool anyone either. The American people
economic- abuse. After years of fiscal blundering in
don't believe it and never will. This administration holds
Washington - after the big-spending, big-government
no patent on recession. We didn't invent sky-high inter-
policies of the past brought our national economy to the
est rates and inflation or the tragedy of unemployment.
brink of disaster - home ownership has become an im-
Those problems were in place long before we took office.
possible dream for too many of our people.
They were the result of something that was called the
On my direction, Secretary Pierce and a Cabinet-level
new economics - about twenty years age they called it
task force have developed a plan for short-term relief of
that.
the housing industry. I'm pleased to announce à series of
1980 alone no fewer than three different national
several early actions that we will take in response to
economic policies were tried. Our economy was jerked in
their findings.
one direction after another in a vain effort to trim sails to
First, changes will be undertaken regarding the mort-
each change in the political breeze. Well, I believe that
gage revenue bond program to loosen the arbitrage re-
we have in place a solid program for economic recovery,
striction and broaden our definitions of distressed areas.
and it is going to do the job. With your help and with a
Since the basic program is already in place, we can move
bipartisan coalition in Congress we have cut the people's
quickly. These changes will make it possible for state
taxes, held down government spending, cut the growth
agencies to provide mortgage funds for $50,000 more
of regulations and urged the Federal Reserve to main-
homebuyers at lower costs.
tain a slow and steady growth in our money supply. Our
Second. further action is being taken under the Em-
Fifth, we're also taking action to speed the processing
programs will encourage saving and investment and pro-
ployee Retirement Income Security Act of 1974, the Act
of mortgages to encourage the private sector to take
vide incentive for our people to work harder, produce
which regulates pension plans. Within 30 to 60 days, the
over the basic processing of loan applications. And while
more, and expand our economy.
Department of Labor will have completed action to
we're taking these short-term actions, we're looking at
Some of our leaders seem to have forgotten where
remove barriers. within the limits of fiduciary respon-
the long term as well.
prosperity comes from. America's abundance was not a
sibility, to free a flow of critically needed funds for hous-
Let me state categorically that for this administration,
gift from government or anyone else. Free enterprise,
ing from pension funds.
housing is one of our highest social priorities. Our
not government, is the source from which our blessings
Third, we're easing existing guidelines to expand the
policies, for this industry, are based on the essential
flow and we in this administration intend to restore it.
number of potential homebuyers qualifying for FHA
right to private property. And in private property, noth-
Our program has already begun to work. After unprec-
mortgage loans. And this action will be of particular
ing is more important than home ownership. I also want
edented years of double-digit inflation, we ended 1981
benefit to those purchasing their first homes - such as
to state my firm personal commitment to preservation
with inflation measured for that past year at 8.9 percent.
lower-cost condominiums - and will allow relatives to
of the homeowner mortgage tax deduction and mainte-
But in the last five months, it has been down to 4.5 per-
assist young people in the down payment.
nance of the important roles of FHA and Ginnie Mae.
cent. We have begun to tame the inflation monster.
Fourth, we re taking action to remove restrictions on
You have my pledge that this administration will take
Join us in our effort to renew our way of life. Stay with
"controlled business." Today, real estate brokers,
no precipitous action. Our actions will be measured
us, as I'm sure you will, as we pass through this dark
among others, are limited in ways that they can provide
against the private sector to bear more responsibility in
corner in time. In your,communities and tomorrow in the
services to homebuyers. As a result of our actions, real
home financing.
Congress, spread the word that you have faith in these
estate firms will be free to establish subsidiaries to pro-
Home ownership creates incentives for people to save
programs, that together we can sustain the courage and
vide additional services, like title insurance, which are
and invest - a unique stabilizing force in our democratic
the patience of our people, and together we can restore
necessary to complete the purchase of a home.
system. Unfortunately, years of inflation and high inter-
the health of our nation. Thank you and God bless you.
Details of President Reagan's
recommended plan for housing
In his speech last week at the Realtors
FACE TO FACE
sets in 1983.
Washington Conference, President Reagan
Due to technical restrictions, some
outlined five new actions recommended
states have not been able to use their ex-
Personalized Real Estate Newsletters
by Housing and Urban Development Sec-
isting authority.
retary Samuel Pierce and a Cabinet-level
These restrictions will be liberalized
Your #1
Task Force to provide modest short-term
within the existing legislation to allow the
Next Best
relief for the housing industry.
mortgage revenue bond program to
Monthly
Thing to
The changes will:
achieve its full potential
Listing Tool.
Being There.
ease regulation of mortgage revenue
Prepayment of principal will be
Meet hundreds of
Increase listings
bonds;
treated as being received at the end of
prospects face-to-
and sales for as little
permit expanded housing investment
each semiannual debt service period in-
face each month
as $15 per month
by pension funds;
stead of monthly. This has the same effect
Get the competitive
(plus shipping).
extend FHA loan eligibility to more
as an increase in allowable arbitrage of be
edge plus market
Each newsletter
first-time homebuyers;
tween 20 and 40 basis points
penetration with
contains valuable
ease regulation on the real estate in-
Areas of economic distress would be
personalized,
TODAY'S PRICES
consumer, home
dustry to allow more competition and re-
expanded beyond the current maximum of
4-page, 3-color
WILL SEEM LOV
and money saving
newsletters from
IN THE FUTURE
duce settlement costs to buyers; and
tips, real estate ad-
20 percent of a state's population as long
ECM. We II put your
RUBIK'S CUBE
vice columns, rea-
reduce processing time for FHA loans.
as other statutory requirements are met.
name, photo and
sons to buy now
Each of these five recommended actions
These changes may provide for as
company in the.
and more. Ask us
is outlined in greater detail below.
many as 50,000 additional housing units.
front page headlines.
about the 7 ways to
increase business
Mortgage revenue bonds
Employee Retirement Income
Ask about special-
Mortgage revenue bonds are issued
Security Act (ERISA)
Ized or franchise
Call or write for the
newsletters.
by states and localities to finance home
ERISA is intended to protect the fu-
inside story.
mortgages at more affordable rates.
ture retirement payments of $500 billion
ECM NEWSLETTERS
The Mortgage Subsidy Bond Act sets
of pension funds by regulating allowable
a maximum volume of mortgages that can
investments.
P.O. Box 92085, Houston, Texas 77206 (800) 231-0440 (713) 691-1192 (in Texas)
be issued by each state, and the act sun-
(Continued on page
4 REALTOR NEWS
April 5, 1982
Realtors Washington Conference
Nearly 3,000 Realtors from across the country blitzed Capitol Hill last week
during the annual Washington Conference. This year's conference, March
Realtors
28-31, was headlined by President Reagan, who outlined a five-point program
for short-term housing relief.
The conference also examined critical issues facing housing and the
economy, especially the current number one legislative concern: the federal
Washington
budget. Reagan, in his address, indicated that there would be no "budget-
busting bailouts" for housing, which he said would only aggravate the In-
dustry's underlying problem - Interest rates. Instead, he announced a series
Conference
of "early actions" designed to "restore health to our ailing housing industry"
(see story on page 1 and excerpts from the speech on page 3).
Other highlights of the conference included the Realtors Political Dinner
featuring Lyn Nofziger and Charles Manatt and the annual Congressional
Reception on March 30.
REALTOR
After meeting in state caucuses, photo a
right, delegations of Realtors visited Cap:
tol Hill to discuss Important housing Issue
with their senators and representatives
Above, Democratic Rep: Buddy Roeme
(left) meets with Realtors from Louisiana
With Roemer are James Fulllove (center
and Daz HIII, both from Shreveport, La.
Robert Streuse (left), former chairman of the Democratic
National Committee, was introduced to the March 29
General Session by NAR President-elect Harley Snyder.
President Reagan, photo at right, was the main speaker of
the Realtors Washington Conference. The president an-
nounced five new housing initiatives in his remarks.
PRESIDENT THE OF THE UNITED
April 5, 1982
REALTOR NEWS 5
Realtors Washington Conference
(IF
Featured speakers at the Conference Included
APAC
Sen. Robert C. Byrd (D-W. Va.), top photo; Sen.
Robert Dole (R-Kan.), photo above; and Rep. For-
FMMER
nand St Germain (D-R.I.), photo below. Pictured at
right are NAR President Julio Laguarta and Presi-
Democratic National Committee Chairman Charles
dent-elect Harley Snyder.
Manatt, photo at left, and Lyn Nofziger, former assistant
to President Reagan, photo above, engaged in a lively
exchange at the Annual Political Dinner.
REALTOR
MS
ROY FAIR
6 REALTOR NEWS®
April 5, 1982
New housing actions
Expand the proposed class exemption
These programs have operated at no
service industries.
to cover some second mortgages.
cost to the taxpayer and have accumu-
In particular, "controlled business"
Provide for the class exemption to
lated reserves of about $3 billion.
prohibitions prevent real estate brokerage
cover whole mortgage loans or mortgage
FHA will liberalize a number of these
firms from establishing subsidiaries to
(Continued from page 3)
participations.
regulations to allow more households to
provide services like title insurance.
This has had the unintended effect of
Revise. existing class exemption for
qualify for loans.
Removal of this regulation will allow
limiting the ability of pension funds to in
mortgage pools.
This will be particularly beneficial to
more competition and reduce consumer
vest in mortgages.
When these changes are completed in
the young, first-time homebuyer purchas-
costs of purchasing a home.
In November the president announced
30-60 days they will have the potential to
ing a starter house/condominium.
a class exemption to make mortgage in-
open up a new area of financing to the
FHA: Expedited processing
vestments by pension funds easier.
mortgage markets and to broaden the
Real Estate Settlement Procedures
FHA loans are currently processed by
Today's action broadens substantially
base of mortgage credit.
Act (RESPA)
HUD, sometimes resulting in long and
the mortgage investments included, based
RESPA was Intended to prevent con-
costly delays.
on comments received from 90 affected
Federal Housing Administration
sumer abuse in the settlement services
HUD is currently revising procedures.
groups by the Department of Labor.
(FHA) underwriting
industry.
to delegate this processing to the private
These actions will:
The FHA insures mortgage loans for
It has been interpreted in an unneces-
sector, both for multifamily and single-
Remove burdensome restrictions on
low- and middle-income families under a
sarily restrictive way that prevents the
family homes, new construction and exist-
government-backed mortgage securities.
variety of programs.
logical development of private settlement
ing housing.
PROPERTIES
REAL ESTATE SERVICES
REAL ESTATE SERVICES
WORD OF MOUTH
I I I 5
RAISED RELIEF TOPOGRAPHIC MAPS
Prime, commercial frontage zoned for 5
show a lot more. of the terrain of the
Your newsletters will generate Estings
story office building. Approx. 3.28 ace.
asstem/western region of the U.S.
and referrals. Collect (714)496-8425 or
230' frontage on E. Sahara Ave. Ap-
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CLASSIFIED ADVERTISING
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Vegas Board of REALTORS*, 1250 Burn-
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package call Irens Vogel, E.O.,
BROKERS MANAGERS
REACH BUYING PROSPECTS
702-382-4527,
Develop a successful and engoing
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Wanted: Land acreage or subdivisions
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everywhere. We handle sales, financ-
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ing, developing, engineering, auc-
ried aboard the aircraft and/or is in the
44212.
tionsering and purchase for our own
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sent to thousands of wealthy sub-
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better! Write Bloch Bros., P.O. Box 67,
stands. The cost is low, there's' no
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A Listing Test
bother (we write the copy and all); you
4-page, 3-color personalized newsletter
just respond to the deluge of inquiries!
with your name, company and picture
For a free copy and advertising rates
FLORIDA BULF BEACH-ST. PETE
ask us about other top producers
call (800) 243-4006; in Connecticut call
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661-7422; OF write:
BROKERAGE SERVICES
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BUSINESS OPPORTUNITIES
who have used this concept as their
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Newsletters, P.O. Box 92085, Houston,
Salt Lake City, Utah
RESTAURANT Fully operational
ment on. second, Bode occupied by
Greenwich, CT 06830
ПАВА
77080 1-809-231-0440. in Texas
20% referral. ERA Swallow Realty.
restored Victorian home near MSU cam-
REALTOR* Owner. 1St fir. used R.E.
Josephine Helm (801)261-2682.
call (713)691-1192. Free samples See
pus. Listed on national register of
office. Could be Travel Agency-stores-
HUB INSURED/HUD HELD/STATE OR
DUE ad on page 3.
historic places. Immediate sale needed.
restaurant-Lawyer-Doctor-R.E.-Ac1:
LOCAL MENCY UNDERWRITTEN/WELD
BROKERS-SALESMEN
etc. office with owners living above:
TRANSFERS OF PHYSICAL
No reasonable offer refused. Reply to
Develop a profitable referral third party
Box 1306, Starkville, MS 39759.
OWNER. FINANCE 12% 30 yrs. Fix
ASSETS/PARTHERSHIP INTERESTS
International real estate marketing net-
and corporate business. its easy with
(601)324-1414.
$250,000. RICHMAR REALTY INC.
Listing brochure 'How to Get Top $ for
Both the Economic Recovery Tax Act of
work under new ownership is now en-
our system. Send $10 for our list of third
20045 Guif Blvd., Indian Shore, Ft.
Your House." Great for getting listings.
1981 and current restraints upon multi-
larging. Applications for membership in
party companies, sample letters and
33535 (813)596-8383.
Ideal for call-backs. Professional, visual
family building make these transactions
select areas are now being accepted.
formal to: National Realty Consultants,
Joint Venture
presentation. Complete detailed In-
extremely attractive. Secondary secur-
No franchising. No percentage of gross.
P.O. Box 580, Brunswick, OH 44212.
Financing needed to cover brokerage
structions. 1-5, $12 6a. 8 or more, $10
ity instruments permitted up to lesser of
expenses to sell large tract of rural land
REAL ESTATE SERVICES
No monthly fees. For information call
83. Send check or money order to: Ed
certified appraisal or 75% of replace-
in foreign country. Price 20% below
Herskowitz, Inc., Realtors®, P.O. Box
ment cost. Due to directive of Federal
1-800-831-2055.
Constal Rhade Island, Newpert to Weich
per. Commission 15% plus expenses.
13394, B Paso, TX 79912.
Housing Commissioner as of 10-6-81
HILL Sales and rentals. 25% sales referral.
BRD Corp., Houston, TX (713)
PERSONALIZED NEWSLETTER
all such transfers require Washington
H.D. Randall, REALTORS*, Box 422.
REFERRALS TO MEMPHIS, TN.
643-8958.
Free sample. Specify residential or in-
approval.
Charlestown, RI 02813. (401)364-3388.
vestor. Send stamped self-addressed
1% OF SALES PRICE - JIM PERDUE
#10 envelope, MONEYTALK, Box
This firm can expedite and effectuate
GIVE PROSPECTS MORE THAN A
PERDUE REALTY, INC. (981)767-5216.
MORTGAGE MONEY
3205-RM, Walnut Creek, CA 94598.
Treasury and HUD aspects of these
Thorsen R.E. & Construction Co.,
BUSINESS CARD. Full-color, 8-page
transactions. Also, national and
Northern Virginia, referral fee 25%.
brochure. Save with the spring special.
regional network of HUD eligible buyers
Call 703/836-3035.
Free samples. Century Publishing Co.,
SANTA FE, NEW MEXICO
SIDELINE OPPORTUNITY! Combine the
and/or sellers can facilitate deal-
P.O. Box 730, Cosur Alene, ID
Clients moving to the sun belt? Referrals
"FAST CASH" Dd you take back 8
magic of multi-level with the glamour of
malding,
83814. (208)765-6300.
to HER will receive finest professional
mortgage. to help finance the sale of a
home computers. 888-453-0630.
Contact the Washington offices of the
services for primary or second homes,
REFERRAL system
home, commercial property anywhere
below mentioned former HUD Coused
condos, land, investments. 20% to you.
AEAL ESTATE-US.A.
in the U.S.? Or are you planning to?
for further information.
HALE EQUITIES in REALTY, Marianne
Share your listings: is other brokers
We'll arrange to buy ALL OF PART ot
NATIONALIDE
ER
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Hale, Broker; 505-988-2579, 435 Gue-
send buyers to you! National Brokers
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Free information. Century Data-List,
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broker/members in the following cities
unevellable, you may find CROSS
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P.O. Bax 730, Cosur d'Alane, ID
33505,
to handle incoming referrals and send
COUNTRY RELOCATION SERVICE is
3355 Lenox Rd. NE #750 30326
20% referral. Guardian Realty
83814
Pat Glihooly (303)593-8900.
same: Alberry, Jacksonville, West Paim
your - Applications for member-
(404)231-3827
Beach, Schaumburg, Davenport, R.
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Wayne, Shreveport, Charleston: Eris,
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- Only quality: independent real
Call or write for details and samples:
panies will be selected. For information
NAWAII, GAHU 4 bed/2 be home,
estate companies are invited to inquire
CLIENT FOLLOW-UP COMPANY, 5540
Buy our Germs below wholesale. Enjoy
REFERMAL PROGRAM
call 800-528-6177, ext. 50.
jacuzzi. Gold, Tennis, Security. Equity,
about membership. For information,
W. Lawrence, Chicago, IC 60630.
them or trade for real estate. Jeweis by
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To place a Classified Adb
VAIL/BEAVER CREEK AREA The
REALTOR NEWS® is published Mon-
ing single family detached homes,
Value with lower "constant" monthly
1x 4x 12x 24x 42x
Call 312-440-8276 in Chicago Monday-
days, 42 times a year. Closing for space
villas, garden apartments and
mig payments. ACCRUE THE DIFFER-
Woods Townhouse Condominiums on
Friday, 6:30 a.m. till 5:00 p.m. (Cost
towntromes priced from $58,000 to
ENCE (from market) in cheaper dollars.
Goll Course with Private Athietic Club
and copy is 5 pm, Friday, in Chicage,
$9.00 $7.45 $8.55 $5.75 $4.90
tral Standard Time).
$168,000. For Information on
Ideal for locked-in leases now under
located between Vall & Beaver Creek.
ten days prior to publication date.
per line per Insertion
REALTOR* REFERRAL PLAN paying
market or for future cap gains recovery.
4% of sales price to co-op brokers. You
CATEBORIES
Solid Set Classified: 3-Une minimum.
Send all materials or inquiries to:
3% of sales prices, contact Dick
WE ALSO BUY. Call Don (215)822-9557
need only send purchaser to us. For
Properties, Business Opportunities,
Classified Display: 1 column by 18-Ene
REALTOR NEWS
Wilson, Sales Adm. Taylor Woodrow
afternoons (E.S.T.) or send S.A.S.E. for
color brochure call L Joersz,
Brokerage Services, Office Equipment
minimum. Count 35 letters and spaces
430 N. Michigan Ave.
Homes Limited, REALTOR 1901
details to 1st FINANCIAL - 962 Upper
303-949-4360 or write Warner Proper-
and Supplies, Real Estate Services,
to a line.
Chicago, IL 60611
Longmeadow, Sarasota: R. 33580.
State Rd., Challont, PA 18914 (Brokers
ties, PO Drawer B-100, Avon, CO
Mertgage Money
Attn: Classified Advertising
Phone 813-371-8000
protected).
81620.
April 5, 1982
REALTOR NEWS®
7
Realtors Washington Conference
Bond programs
Dole: need more federal spending cuts
(Continued from page 1)
WASHINGTON - Further cuts in fed-
14, 13, or even 12 percent," Sen. Robert
sonal tax cut and 1984 tax indexing pro-
"We would urge instead that current
eral spending will touch off a "housing
Dole (R-Kan.) told the Realtors Washing-
gram should not be deferred.
expensing of construction-period interest
boom" as interest rates "tumble down to
ton Conference general session here.
"We could raise $40 billion by deferring
and taxes should be allowed for both in-
Interest rates would drop, he argued,
the 1983 tax cut and the 1984 tax index
dividuals and corporations," he said.
because additional budget cuts would
ing, but that would send a signal to Con-
Laguarta also said the Association
Tapes of Reagan
send a "big signal to financial markets."
gress that we. really don't have to cut
would support a reasonable, alternative
Dole, along with Sen. Robert C. Byrd
spending - let's not take the easy way
minimum-tax proposal to help ensure that
speech available
(D-W. Va.), who also spoke at the session,
out, he said.
corporations and individuals. pay their
stressed the importance of further federal
Referring to the Realtors' recommenda-
fair share of taxes.
Dr. Richard W. Rahn, vice president
The president's speech and the
spending cuts in pulling housing out of its.
tion that a federal tax credit be given to
overall quality of the speakers at
current recession. Only the issue of
first-time buyers or to lenders who supply
and chief economist of the U.S. Chamber
the Washington Conference have
whether defense spending should be con-
mortgages to these buyers, Dole said he
of Commerce, who was testifying at the
trolled divided them.
prompted hundreds of Realtors to
would not support such measures because
same hearing, was opposed to any in-
ask for tapes of the proceedings.
"Your members of Congress should be
"We can't afford them."
crease in taxes to reduce the federal
The Association has audio cas-
encouraged, regardless of party, to work
Byrd, however, expressed support for
deficit, including those proposed by Presi-
sette tapes available of President
on a compromise budget that will reduce
an NAR-backed Senate bill which would
dent Reagan.
Reagan's speech for $7. Tapes of
the federal deficit by cutting spending
give a $5,400 tax credit to first-time
"A minimum tax is counterproductive
other speakers are available for $5.
growth and, if necessary, increasing reve-
buyers as well as make changes in the
and hypocritical because it subjects to
taxation certain business deductions
They include Sen. Robert Dole
nues, so that we can bring interest rates
mortgage revenue bond program so that
(R-Kan.). chairman, Senate Finance
down.". Dole said.
more homebuyers could be served.
properly taken from income as a result of
Committee; Senator Robert Byrd
The housing industry and the rest of
The bill Byrd referred to, spensored by
congressional desire to create incentives
(D-W.Va.), minority leader, U.S.
the economy can't wait another 45 or 60
Sens:- George Mitchell (D-Maine) and
for certain types of economic behavior,"
Senate; and the Honorable Robert
days for a responsible budget compromise
James Sasser (D-Tenn.) "would give real
Rahn said.
Strauss, former chairman,
to be worked out, he said. It is-crucial that
relief to a vital industry, which is what
Paul Huard, vice president for tax and
Democratic National Committee.
Congress and the administration under-
housing is," he said.
fiscal policy for the National Association
Video cassettes of the president in
stand that the federal deficit is "too high
The importance of a bipartisan budget
of Manufacturers, also opposed "any in-
VHS or BETA I and II are available
right now and must be reduced before
was also stressed by Robert S. Strauss,
creases in taxes on either businesses or in-
at $45 each, while a 1/4" cassette is
houses can be sold again," he added.
former chairman of the Democratic Na-
dividuals at this time."
$50.
Although the growth in federal spend-
tional Committee, who also addressed the
During the testimony, several con-
Mail orders with check to NAR
ing has been cut by $36 billion in the last
Realtors. But because it will entail some
gressmen both Democrats and Republi-
Merchandise Sales Department, 430
14 months, there are many other places
unpopular efforts, he said, President
cans - commended the Association for
N. Michigan Ave., Chicago, Illinois
where spending could be cut, Dole said.
Reagan will have to take the lead during
offering reasonable recommendations for
60611.
He warned, however, that the 1983 per-
this election year.
improving housing and the general
economy. This was in sharp contrast to
congressional reaction to both the
Chamber of Commerce and the AFL-CIO
testimony. Comments were made that the
Association had correctly identified the
Lawmakers receptive on issues
Join our Package Tour to:
proper housing and economic policies.
In particular, Rep. Bill Archer
(Continued from page 1)
send letters to the Federal Home Loan
NATIONAL ASSOCATION OF
(R-Texas) commended the Association's
budget deficit often were divided along
Bank Board opposing its proposed regula-
REALTORS CONVENTION
appreciation of the problems that Con-
partisan lines, especially on the matter of
tions that would allow savings and loan
San Francisco, Nov. 12-18, 1982
gress is facing in trying to reduce the
deferring tax relief in 1983 and 1984.
service corporations to enter the real
budget deficit.
"Some still feel entitlement programs
estate business directly.
are untouchable." commented Clark
"Many said they were sympathetic to
HYATT ON UNION SQUARE
Wallace, regional president for
our position but wanted to see more
Twin & Single Rooms & Suites Aveilable
Support aid plans
California, Hawaii and Guam.
details," reported Wallace. But McMahon
However, most state delegations
We Guarantee Lowebt Legal Airfare
said that many Texas and Louisiana con-
(Continued from page 1)
reported that a majority of the con-
gressmen already had sent letters to the
Call or write for colorful brochure:
for a tax credit for first-time homebuyers,
gressmen they saw favored these various
Bank Board expressing their opposition
as well as a broadening of the revenue
steps' as ways of reducing the federal
to the proposed regulatory changes.
hennessy
bond program's regulations. Stressing
budget deficit.
Generally, congressmen expressed sup-
support for the revenue bond program, he
"Some of our very liberal congressmen
urged, "Let's unite in that effort."
agreed for the first time that something
port for House and Senate resolutions
Travel
directing the sale of excess federally
service
Rep. John J. Duncan (R-Tenn.), who
has to be done with entitlement pro-
owned property in order to reduce budget
P.O. Box H, Excelsior; MN 55331
also supported easing mortgage revenue
grams,' observed Vincent T. Aveni,
deficits.
Call Toll Free 1-800-328-3544
bond regulations, promoted his bill, H.R.
regional vice president for Michigan and
3853, that would exempt from taxes the
Ohio.
Lawrence B. Caldwell, regional vice
Tour Package Only sold in connection with
purchase of Reund Trip Airfere:
interest on old low-rate mortgages sold off
Responses were less clear on the
president for New York, New Jersey and
by ailing savings institutions.
Association's request that congressmen
Pennsylvania, said that "For the most
part, congressmen were supportive of
what we are trying to accomplish."
Oklahoma City-the
REALTOR NEWS® (ISSN 0279-6309) is published weekly (42 times year) except for holiday weaks and when Con
grass is not in session by the NATIONAL ASSOCIATION OF REALTORS®, 430 Michigan Ave, Chicago, III.
60811. President, Julio S. Laguarts: President-elect, Harley W. Skyder: First Vice President, Donald H. Treadwell:
Restore health
heart of Oklahoma!
Treasurer, Budd Kronse: Sender Visa Presidents, Albert Abrabame, William D. North, Ray Ropers Vice President-
Communications, John W. Dickinson Jr.: Vice Procident-Legal Affairs John Linton: Chaleman, Publications Comm
mitten, Tom M. Wheeler.
to housing industry
Editor-in-Chisf, Jack Carlson: Editer, David L. Murray: Managing Editor, Carol Wagner; Assistant Managing
Editor, Carl Ueta: Copy Editor, Diemn Leaby: Washington News Director, Bill BHingsworth: Senier Washington Car
(Continued from page 1)
EDMOND
respondent, Elizabeth B. Binlan: Advertising Coordinator, Kathryn H. Dicksson: Publications Coordinator, Connie
dollar bailout schemes," Reagan stressed.
YUNON
McCorthy: Editorial Services, Public Communications Inc.
"You recognize, as do I, that budget-
OKLAHOMA CITY
National Advertising Representatives: Chicago - W.G. Holdsworth & Associates, 1000 K Northwest Hwy., ML
busting bailouts will only aggravate the
Prospect, III. 60056, (312) 394-2022; New York C. Lynn Coy & Associates, 55 Forest St., Stamford, Comm: 06902,
(203) 327-4626; West Coast W.G. Holdsworth Jr., n Cape Cod, Irvine, Calif. 92714; (714) 581-1348; Wayne c
interest rate problem, the underlying
Carter, 5208 Bela Dr., Sex Jose, Calif. 95129, (408) 725-8713.
problem in the housing industry." The
Copyright©1982 by the NATIONAL ASSOCIATION OF REALTORS*. All rights reserved.
president also referred to NAR's "10%
With the exception of articles and materials from other publications reprinted in REALTOR NEWS. state
Solution," saying it had been considered
NORMA HARRIS
associations and local boards of REALTORS are hereby authorized to reproduce articles appearing in this
carefully when designing his own program.
newspaper, provided each such reproduction is accompanied by the above copyright notice.
The only hope for ending a situation in
REALTOR NEWS® is mailed to all broker offices of the NATIONAL ASSOCIATION OF REALTORS* for $6
which "consumers can't buy [homes],
MARRIS
a year Individual-annual subscriptions are available for $12. Views, opinions and advertising expressed in
REALTOR NEWS are not necessarily endorsed by the NATIONAL ASSOCIATION OF REALTORS®
sellers can't sell and builders can't build"
REALTOR. REALTORS*, and REALTOR-ASSOCIATE are registered collective membership marks which
rests with a "bipartisan effort to cut
REALTY COMPANY
identify, and may be used only by, real estate professionale who are members of the NATIONAL ASSOCIATION
spending," Reagan declared. "We must
PAT Relocation Department
OF REALTORS® and subscribe to its strict Code of Ethica.
reduce our intolerable budget deficits.
2912 W. Hefner Rd. OKC, OK 73120
POSTMASTER: Please and change of address notices to REALTOR NBWS°, 430 N. Michigan Ave, Chicago,
And our solution must be fair and com-
405/755-0123 Toll Free 800/654-9179
III. 60611. Second class postage paid at Chicago, III, and additional entry offices.
passionate.'
REALTOR NEWS®
April 5, 1982
Solar energy
Surge in residential solar systems foreseen
Use of solar energy in housing is ex-
amples a solar water heater and a full
and $10,000, depending on the type of
pected to boom in the next four years, as
solar heating system:
equipment and style of installation, and
the number of solar-equipped homes will
whether it is direct heating or includes a
increase by 100 percent, or 500,000 addi-
Some comparisons
heat pump.
tional homes, during the period.
"A solar water heater installed in a new
Retrofitting for existing homes varies
That estimate was made by Nicholas
home would cost between $3,200 and
greatly, depending on the original equip-
Loope, president of the Solar Energy In-
$3,800, including necessary ductwork and
ment and what has to be redone for solar
dustries Association, during an interview
other related installations." Loope said.
heating. "Minimum costs, with a heat
with REALTOR NEWS. "Changes in
"That's about eight or nine times as ex-
pump, probably would be about $15,000,"
federal and state tax laws regarding solar
pensive as traditional water heaters."
Loope said.
equipment will begin in 1986 and will
The solar water heater on a new home
Thus, for solar heating, the tax-credit
greatly reduce present incentives for that
can be amortized over the length of the
saving on. a new home would range be-
installation," he said.
mortgage, thus adding only a few dollars
tween $2,000 (federal credit alone) on a
"Those who have an interest in solar
per month to the payment for principal
$5,000 installation and $7,000 (federal
energy will tend to move in the direction
and interest, he said. For existing homes,
and state tax credits totaling 70 percent
of this alternative before 1986 to benefit
retrofitting the water heater will cost
for some states) on a $10,000 installation.
from thousands of dollars in federal and
more, but home-improvement loans of at
But the tax credit involved is only one
state tax credits scheduled to be
least five years' duration can be obtained,
area of consideration in the choice be-
eliminated by then," he added.
he added.
tween solar and traditional sources of
He emphasized that he was speaking of
Meanwhile, the federal tax credit on a
energy. "The primary consideration is
tax credits and not deductions. "The
water heater that cost $3,800 would be
whether solar energy will provide a
federal government will allow credits
$1,520. And most states that offer tax
satisfactory return on the investment,"
through 1985 equal to 40 percent of the
credits above the federal government's 40
he said.
cost of equipment, up to a maximum
percent level would allow a state credit
The comparison of solar energy with
$10,000 credit, and 38 states offer credits
equal to the difference between the two.
electricity is the most favorable. If elec-
ranging from 40 to 70 percent."
Thus, in some cases that would be an
tricity is the alternate source for heating,
Of the 12 remaining states, several have
additional 20 or 30 percent, or $760 to
solar heating in many areas will pay for
tax-credit bills pending and others offer
$1,140 more. Overall, then, the tax-credit
itself in monthly savings within seven
property tax abatement for home im-
saving would range between $1,520 and
years or less - possibly in as little as five
provements due to solar energy equip-
$2,660 on a $3,800 water heater, Loope
years. A saving of more than $5,000
ment installation, he said.
said.
within seven years is Loope's projection.
What do these tax credits amount to for
As for solar heating being included in
The current outlook for heating with oil
typical-installations? Here are two ex-
new homes, the cost ranges between $5,000
is "quite a bit more uncertain, with prices
likely to remain fairly stable unless there
are political difficulties in the Mideast,"
Loope said.
Workman puts finishing touches on Installa-
"For that reason, the best estimate for a
tion of solar pansis, standard equipment on
return on investment from solar energy
new homes at Indian Springs development,
compared to oil heating would be eight to
Jacksonville, Fla.
nine years." he said. "But it could be
much less, if the price of oil should rise
return to normal in overall construction,"
sharply due to an embargo or a war in the
he said.
Mideast.'
"Regardless, between now and the end
Uncertain comparison
of 1985 there will be 20-25 percent more
A comparison with natural gas for cost
solar homes built each year, he added.
savings is even more uncertain. "A prom-
The only reason it has taken since 1976
ise by the Reagan administration that
to get the first 500,000 solar homes on the
there would be more rapid decontrol of
market has been the overall added cost on
prices to boost exploration of new gas
the home and the length of time required
deposits could bring about a great change
for a return on the investment, Loope
in the status quo," he said.
noted.
"Currently, the comparison with
"Builders, particularly in the past few
natural gas means a return on solar
years, were reluctant to add about
energy investment within 10 to 12 years,
$10,000 to the price of a home, especially
but decontrol of gas prices could send
when prices already had been rising at an
them zooming and make that payback at
annual rate of 12-15 percent," be said.
least as rapid as for oil," Loope added.
President Reagan last week announced
"Now, with the tax credits likely to run
Both active and passive solar energy power this three-bedroom Boulder, Colo., home, one of 10
energy-saving homes sponsored by the National Association of Home Builders and the No-
that he would not seek legislation this
out by the end of 1985, and the period of
tional Council of the Housing Industry.
year asking for decontrol of natural gas
time for a return on investment better
prices. He suggested, however, that such
than ever, builders are beginning to
legislation might be sought in 1983.
recognize solar-equipped homes as having
Apartment rehabbers tapping
Loope predicted that homebuilders this
a decided advantage over conventionally
year will construct at least 100,000 homes
heated homes.
with some form of solar energy from
"They see that these homes, from now
into solar energy sources, too
heated swimming pools and water-heaters
on, will have a sales advantage over the
to complete heating systems.
others. Even in resale, although there are
KANSAS CITY Solar energy, in-
of the existing 12-inch brick wall on the
"The only qualification I have on that
no solid statistics. currently available,
creasingly, tapped for new single-family
rear of the building. A. double-glazed
number is based on the extent to which
some comparisons have indicated an ad-
homes, is new being used in the rehabilita-
acrylice skin was added on the exterior
the entire homebuilding industry will
vantage for the solar home," he concluded.
tion of existing rental housing.
(omitting the windows), with an air-space
A prime illustration is a three-story
sandwiched between the glazing and the
apartment building here, one of 10 struc-
brick. The Trombe wall stores heat from
the sun during the day and releases it
Aluminum
tures being renovated within the seven-
slowly when temperatures drop.
KRATZ
now the
block Benton Square area.
Steel
A "solar penthouse" was added atop
The 12-unit building has been outfitted
the building for indirect solar gain and for
same price
with a passive solar. system under a
$40,000 design and construction grant by
sale
Fiberglass
housing 26 water tanks that will serve all
the apartments. This solar space fur-
the department of Housing and Urban
nishes additional light to the third-floor
plus DURON hardboard. our
Development (HUD). The system is in-
699-4452
north-facing apartments through interior
tended to supply more than half of the
most popular and
skylights, as well as heat through unin-
SOLD
US
building's heating and hot water needs. A
sulated ceilings.
economical sign
conventional gas system serves as
Essential to the passive solar design are
backup
the energy-conservation features of the
Call us DEE SIGN CO.
Solar energy is collected directly
apartments, including insulation, weather-
through south-facing windows and also
lock entries, insulating windows, thermal
DEE
SIGN
CO
2501 NORWOOD AVENUE
CINCINNATI OHIO 45212
(513)631 2222
through & Trombe wall, which makes use
shades, and energy-efficient furnace.
TAB F
hannels
Serving the $1.2 trillion-a-year wholesale distribution industry
naw
NATIONAL ASSOCIATION OF WHOLESALER-DISTRIBUTORS
April 1982
NAW Board at White House as President
Signs Small Business Message
NAW's Board of Directors and
senior staff government relations
officials represented the wholesale
distribution industry last month at
the White House as the President
signed his first report to Congress
on the State of Small Business. The
report describes how the
Administration is establishing an
economic environment conducive
to small business formation and
growth.
Commented NAW Chairman
of the Board Tom Addison after the
meeting: "The fact that the
President sought input from
Photo courtesy of Karl H. Schumacher, the White House.
members of the small business
community, including we in the
wholesale distribution industry, is
apparent from the content of the
report. A central theme of the
report is that the success of the
American economy is critically
dependent upon preservation of
real opportunity for small
In signing his first State of Small Business report for delivery to Congress, the
President reaffirmed his intent to stay with the Economic Recovery Program
business. As a result, in his
enacted last year, and to put the nation back on the road to prosperity and stable
presentation, the President
growth.
reaffirmed his intent to stay with
the Economic Recovery program
State of Small Business: A Report
significant part of the small
enacted last year, and to put the
of the President is the first one.
business sector (see page 17).
nation back on the road to
prosperity and stable growth."
Highlights
The fundamental tenets of the
Administration's small business
The Small Business Economic
Small business (defined as
policy, according to the President,
Policy Act of 1980 mandated that
having 500 employees or less)
are: (1) the government should
the President submit to Congress
numbers 15 million or 99% of total
promote a strong, vibrant, free
each year a report on small
American business. Wholesaler-
market economy; (2) economic
business and competition. The
distributors, of course, form a
(Continued on page 14)
(Continued from page 1)
NAW Board at White House
growth and full employment must
be restored while reducing
inflation and interest rates; (3)
federal impediments to free and
efficient use of resources must be
reduced or eliminated.
Role of Small Business
In the Economy
Small business produces
almost half of the goods and
services in the economy, and is a
more prolific source of innovation
than medium or large business.
Also, between 1969 and 1976, more
than 86% of all new jobs were
provided by firms employing fewer
than 500; 75% of these jobs were
attributable to companies that
were less than five years old. Over
half of the current labor force is
Board of Directors meets at NAW headquarters prior to attending White House
employed by small business.
signing ceremony; endorses need to maintain last year's ERTA victories.
The Economic Recovery Tax
agencies to accelerate from ten to
Small Business and
Act (ERTA) seeks to provide
five years the time for completion
U.S. Economic Problems
incentives to increase asset
of their review of the effect on small
purchases as well as to encourage
The basic problem of the U.S.
employment growth for small
economy, states the President's
"Small business
business through:
report, is that it is not growing fast
Reduced individual tax rates
(defined as having 500
enough. Since 1973, the economy
An accelerated cost recovery
has grown at a real rate of less than
employees or less)
2.4% per year, which is two thirds
program
Revised rules for the expensing
numbers 15 million or
of the real growth rate experienced
of depreciable assets
from 1950-1973. Sources of growth
99% of total American
Increased investment tax credits
have been obstructed by past
Lower corporate tax rates for
business."
federal policy errors involving the
small businesses
tax code and its interaction with
Increased allowances for
inflation as well as excessive
business of existing regulations.
accumulated earnings
appropriation and distortions in
The Administration is also
Higher allowances for Keogh
the use of resources by the federal
committed to antitrust enforce-
Plans and Individual Retirement
government. These past errors
ment; research and development,
Accounts
have contributed to the four major
and innovation stimulation;
Liberalized estate and gift tax
economic problems faced by small
general federal procurement
laws
business: cyclical sensitivity,
improvements for small businesses;
Simplified LIFO inventory
inflation, interest rates and access
export promotion; and, the
accounting
to capital.
development and encouragement
Liberalized Subchapter S
of minority and women-owned
Economic Recovery Program
provisions
businesses.
Regulatory relief, said the
Concluded Addision: "It's
President Reagan stressed in
President to the assembled
been a long time since we've had
his message that the Economic
business leaders, has been actively
an Administration so attentive to
Recovery program is beginning to
pursued in every regulatory
the needs of our industry and small
show results: (1) a substantial
agency and the number of new
business in general. We are very
decline in inflation; (2) a start
regulations issued has been
pleased with this first small
toward long-term decline in
significantly reduced. The
business report to Congress and
interest rates; (3) an increase in
President revealed that he has
will continue to do our part to
savings to expand the supply of
asked all federal agencies and
restore health to the national
capital.
several independent financial
economy."
ЛАШ
-14-
Channels
April 1982
TAB G
lews
1776 F Street, NW
National
Washington, DC 20006
Association of
(202) 626-3700
Manufacturers
32-44
NEWS CONTACTS:
HOLD FOR RELEASE:
STEVE JOHNSON (202) 626-3884
12:00 NOON (E.S.T.)
SARA ROSS
(202) 626-3821
MONDAY, APRIL 5, 1982
VALERIE RENNER (202) 626-3730
NAM PRESIDENT URGES COMPROMISE AGREEMENT ON FISCAL 1983 BUDGET
DETROIT, April 5, 1982 - The president of the National Association of
Manufacturers today urged business leaders across the country to contact their
senators and congressmen during the Easter Recess and urge them to work with
President Reagan in putting together a federal budget for fiscal 1983.
Alexander B. Trowbridge told the Economic Club of Detroit that the nation's
economy will continue to suffer until interest rates begin to decline - and that this de-
cline can be accelerated by prompt action to reduce the federal deficit.
But Trowbridge said Congress and the Administration must work together to
avoid a stalemate on the fiscal 1983 budget.
"A fiscal 1983 budget which reduces spending and deficits through bipartisan and
courageous burden-sharing is essential," Trowbridge said. "The compromise package
SO badly needed can only come through cooperative and comprehensive reviews of all
federal spending, including the so-called 'uncontrollable entitlement' programs
which are indexed to increases in the cost of living."
Trowbridge said the rate of growth in federal spending must be dealt with
quickly. "While revenues shouldn't be immune from examination, tax increases which could
delay economic recovery should be approached with extreme caution," Trowbridge said.
-MORE-
-2-
Trowbridge said the various budgetary options which have been proposed
to reduce the federal deficit below the levels indicated in the Reagan Administration's
budget have not yet produced a bipartisan consensus. Republican leaders in both
the House and the Senate are working with their Democratic colleagues to develop a
bipartisan budget proposal which would be acceptable to President Reagan.
President Reagan sent his proposed fiscal 1983 budget to Congress on Feb. 8
of this year. Congress is required by law to adopt a first budget resolution
by May 15. But, according to Trowbridge, little progress has been made to date,
and there are indications a stalemate may be developing.
"A stalemate is unacceptable," Trowbridge said. "Without a resolution of
the fiscal 1983 budget, there will be no further reductions in federal spending
and deficits, and the resulting economic uncertainty would be likely to have
a negative impact on interest rates and the prospects for sustained economic
recovery."
Trowbridge urged business leaders to emphasize four points in their
conversations with members of Congress during the Easter Recess:
"That the adoption of a federal budget for fiscal 1983 is essential
and that Congress should act on schedule as prescribed by law;
"That a budget stalemate is unacceptable because of the economic
uncertainty it would produce;
"That the most urgent need for fiscal 1983 and beyond is to reduce
spending and deficits with no one group or industry carrying more
than its fair share of the burden; and
"That a cooperative, bipartisan effort by Congress and the Administration,
similar to the effort which produced last year's historic tax and
spending legislation, is essential to economic recovery."
- NAM -
/
H RAB
Washington Perspective
A Political Comment by John Baize
Washington Program Manager
"Ronald Reagan - The Man Who Sets The Agenda"
With the recession worsening, unemployment rising and the likelihood of
record deficits in 1983, President Reagan is coming under increasing attack
in the media, from the Democrats and from his own party. We are increasingly
hearing statements that Ronald Reagan is the rich man's president, an enemy
of the poor, or recently that he may be suffering from senility. Don't
believe a word of it
they are the voices of political frustration.
Not since Franklin Roosevelt has a president so controlled the national
policy agenda. I can think of no recent president except FDR who so well
understood how to use the political power constitutionally granted the
Presidency as does Ronald Reagan. Instead of reacting to the actions of the
Congress as did Jimmy Carter and Gerald Ford, Ronald Reagan has the Congress
reacting to him. He sets the agenda that the Congress acts upon, not vice
versa. There are many examples.
First, Ronald Reagan has had to exercise his veto power only three times
since taking office. The first time when he vetoed a budget-bursting con-
tinuing budget resolution, the Congress didn't even try to override his
veto. Recently, when the President vetoed emergency energy legislation his
veto was easily sustained in the Senate.
Since Ronald Reagan assumed the Presidency, what new regulatory pro-
grams has the Congress passed and sent to the White House? Not a one! In
fact, I know of no new spending programs which have been signed by the
President that were not expressly requested by him. He is in control of the
national agenda.
Take the FY 1983 budget debate as an example of Ronald Reagan's use of
power. In 1981, he was successful in getting the Congress to approve a 3--
year, 25-percent reduction in taxes along with sizable reductions in the
growth of federal spending. By doing so he greatly restricted the alterna-
tives available to the Congress in dealing with his FY 1983 budget proposals.
The Democrats have already said they cannot tolerate a $100 billion deficit.
Yet they do not want to be the party to suggest a tax increase, especially
during a recession. If the Democrats can't live with a $100 billion deficit
and they can't raise personal income taxes, their only alternative is to cut
spending. A spending cut, of course, is what Ronald Reagan wants. In the
end I expect the President to offer up a $20 billion cut in defense in return
for the Congress making similar cuts in spending in other programs. If so,
Ronald Reagan will get what he wanted all along, a more restricted federal
government.
One does not have to agree with the policies of Ronald Reagan to admire
his perception and use of power. Millions of Americans disagreed with
Franklin Roosevelt, yet he is still considered one of our greatest Presidents.
His legacy is all around us.
No one knows if the future will be kind to the programs of Ronald Reagan.
However, I am confident his presidency will be remembered for the fact that
he single-handedly established the national agenda and forever changed the
policy direction of America and the world. Considering the complexities of
our society, that's one hell of an accomplishment for one man. It is surely
not a characteristic of senility.
ACTION ALERT!!
On March 22, President Reagan made a major address on
the issue of American agriculture with special reference to
agricultural trade. In the statement President Reagan
strongly criticized the 1980 Soviet embargo as ineffective,
damaging to American agriculture and damaging to the U.S.
reputation as a reliable supplier of agricultural commodi-
ties. The President established three policies his admin-
istration intends to follow with respect to agricultural
trade:
1)
No restrictions will be imposed on the exportation of
farm products because of rising domestic prices.
2)
Farm exports will not be used as an instrument of foreign
policy except in extreme situations and as part of a
broader embargo. (In other parts of the speech Reagan
also intimated he would use an embargo only if we had the
cooperation of other exporters and only if he was confident
it would be effective.)
3)
The Administration will continue to aggressively pursue
the elimination of foreign trade barriers and unfair
trade practices that interfere with the export of U.S.
agricultural commodities.
Unfortunately, mail to the White House has been largely
negative on the President's speech. Officials there say little
mail has been received from farmers expressing support for the
President's statement and that the lack of response on agricul-
ture's part may jeopardize future actions favorable to agriculture
on the part of the Administration.
ASA urges you to write the President expressing your support
for his statement on March 22. Your action is needed now to
assure future favorable treatment of American agriculture by the
President.
Write to the President as follows:
President Ronald Reagan
The White House
Washington, DC 20500
I TAB
Washington
HISPANIC TIMES
April, 1982
Progress
Report
By HENRY ZUNIGA
withing 2Y
NEW FEDERALISM-One of Presi-
lobbying groups and the ethnic popula-
dent Reagan's most important and con-
tion growing, it is not the case.
troversial initiatives in his "New
I believe that an Hispanic from San An-
Federalism." The President simply wants
tonio would feel more comfortable lobby-
to return government back to those
ing with the Texas legislature there in the
governed, to you the people.
Austin Capitol and with his own county
He wants the people to have more con-
and city government than he would with
trol over their own programs so thay can
the far-off bureaucracy in Washington.
not only have direct input, but also to
President Reagan sincerely feels that
monitor the execution of these programs
his "New Federalism" will benefit all
and thus achieve the expected results.
Americans at all income levels. Yes, many
His idea of local control should be em-
members of Congress disagree with him,
braced by everyone, but this is not hap-
so it is up to each one of us to reassure our
pening. Opponents argue that the states
congressional delegations that we are
and the local governments do not have the
capable of governing ourselves and that
financial means to administer these pro-
states lacking experienced administrators
grams and they further argue that these
can train or even import the so-called
entities will not be as responsive or fair to
Washington-based expertise.
the people.
Tell them that you, the people, can and
Claims of an inadequate budget to pro-
will learn to develop, to administer and
vide for the local administration of these
monitor your own programs at the local
programs are difficult to justify. All the
level so that we can have better control
money spent now by the Federal govern-
over the use of our own tax money.
ment comes from the very taxes being col-
President Reagan has offered these two
lected from the individual taxpayers and
other initiatives which I will briefly cover:
corporations residing in the 50 states.
The Caribbean Basin Initiative is
There is no such thing as a Federal
primarily an economic development pro-
citizen or a special group that feeds taxes
gram for Central America and the Carib-
directly into the Federal budget and who
bean Islands.
is not also a resident of one of our 50
The President, at a speech to the
states.
Organization of American States, stated
There are no taxes going to the Federal
that, through a partnership with Mexico,
government that does not come from a
Canada and Venezuela, the U.S. is com-
taxpayer who resides in a state.
mitted to look at all the people of North
All money spent by the Federal govern-
and South America as Americans, as our
ment benefitting Texas and all Texans
neighbors.
comes from the very taxes paid by Tex-
Reagan's program will encourage in-
ans.
vestments and industry in the developing
Why should the Texan's tax money
countries of this area by offering to U.S.
have to go to Washington, D.C., and then
businesses certain tariff and tax advan-
be allocated back to Texas to finance pro-
tages for goods produced within those
grams in Texas-and at the discretion of a
countries. It will stimulate industrial
Federal bureaucrat?
development and job creation in the
The second argument against the "New
region's developing countries.
Federalism" we hear is that the disadvan-
The President also emphasized that the
taged, the poor, and the minorities do not
U.S. would not tolerate any further Soviet
have a voice in either state or local
or Cuban expansion or intervention in
government, that local officials who
Central America or the Caribbean.
would be in charge of the appropriations,
The Enterprise Zone Initiative is an ex-
are insensitive to deserving recipients and
perimental program based on a Federal
do not know their needs.
partnership with state and local govern.
This argument presupposes that
ments which creates a free market en-
Hispanics, Blacks, and any other "disad-
vironment for the economic development
vantaged" group have Little or no political
of the economically-depressed areas
clout at the local level. This may have
tghrough tax initiatives, regulatory relief.
been the case 20 years ago. Today. with
and other government measures. The
all the civic organizations, increasing
President sent an Enterprise Zone bill to
numbers of registered voters, numerous
Congress in the latter part of March.
THE NEW YORK TIMES, SATURDAY, APRIL 3, 1982
Foes Tour U.S.
that
drew
Miss Strikwerda also spoke at Colum-
Amsterdam
last
bia Seminary, the Georgia Institute of
Technology and Agnes Scott College.
Coretta Scott
Mr. Deile also spoke at St. Luke's Epis-
Martin Luther
copal Church.
Nonviolent Social
Other disarmament rallies were held
here,
about
Thursday in Des Moines, where the
brehouse College,
Iowa House of Representatives passed
Dr. King at-
a resolution Tuesday calling for a nu-
his civil rights
clear arms freeze, and in Portland,
Ore., Holland, Mich., and Burlington,
dience that Euro-
Vt. The turnout in those cities was de-
scribed as moderate.
to plans by the
Organization
to
Largest Rally in Philadelphia
Pershing missiles
The largest turnout for the peace tour
dollars was
so far was in Philadelphia last Satur-
conventional
day, when 15,000 to 20,000 people braved
Deile said. "It
subfreezing temperatures to partici-
Child, but some
pate in a candlelight procession ending
Yet we put
ina rally on Independence Mall.
pons than toward
At the rally, disarmament speeches
were given by Msgr. Bruce Kent of Eng-
Students
land, general secretary of the Cam-
same audience,
paign for Nuclear Disarmament; Toni
students should
Liversage, a member of Denmark's No
threat of nuclear
to Nuclear Weapons organization, and
acation is impor-
John Cardinal Krol, the Roman Catho-
world in which to
lic Archbishop of Philadelphia.
then why both-
The U.S. European Peace Tour began
effort to counter
in New York City with speeches and
The New York Times/Teress Zabala
and
despair."
rallies March 21 and 22 at 10 locations in
REAGAN OPPOSES MANDATORY RETIREMENT:
Miss Strik-
the Rose Garden, he chatted with, from left: Lennle-
New York City, including Riverside
udents that Euro-
President Reagan said he was "making the world safer
Marie Tollver, Commissioner on Aging for the Adminis-
Church and the Council on Foreign
notion of a "lim-
Relations. It will end Tuesday after two
for people like us" after signing a proclamation making
tration on Aging; Margaret Arnold, vice president of
that would be
days of activities in Washington, includ-
May "Older Americans Month" and endorsing the
National Retired Teachers Association; Betty Brake,
ing meetings with the staffs of the
elimination of mandatory retirement based on age. In
executive director of White House Conference on Aging.
in Europe, but
House and Senate and representatives
would be blown
of the State Departments's European
and family decks and - rublic