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Energy - Oil Decontrol: General (1)
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Energy - Oil Decontrol: General (1)
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The original documents are located in Box 16, folder "Energy - Oil Decontrol: General (4)"
of the John Marsh Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
JIM COLLINS, CAPITAL ENERGY LETTER/ZAUSNER Q's & A's
August 25, 1975
Q. Mr. Zarb, do you think immediate oil price decontrol
Sept. 1 will have a "catastrophic" effect on the economy,
as Congressman Dingell has said it will?
A. No, I do not. Immediate decontrol coupled with removal
of the supplemental fees on petroleum imports, a wind-
fall profits tax and consumer rebates will have no
significant economic impact -- for the simple reason
that petroleum price increases will be moderate and
the consumer rebates will assure that there will be
no loss of consumer purchasing power.
Q. Mr. Dingell predicted that gasoline prices, under
decontrol, would rise quickly to 75¢ a gallon and might
go as high as 90¢ a gallon by year-end. How do you
answer those assertions?
A. I do not believe that gasoline prices will rise to 90¢
or even 75¢. Our analysis indicates that immediate
decontrol alone will increase product prices by about
6¢ a gallon at most. However, the President has an-
nounced his intentions to remove all supplemental fees
on petroleum imports if his veto of the extension of
the allocation act is sustained. This would reduce
the net impact by approximately 3¢ per gallon. Higher
prices than this could only occur if the market could
justify it and, as we have seen, demand today is slightly
below 1974 levels, making an additional 10¢ to 30¢
increase highly unlikely.
Q. Mobil Oil Co. is now advocating phased decontrol of oil
prices, instead of immediate decontrol, warning that
immediate decontrol would "stimulate higher prices,
higher wages, and an inflationary spiral". How do you
respond to those fears?
A. All I can say is that the Federal Energy Administration
does not recommend policy on the basis of what the major
oil companies prefer. I have seen Mr. Warner's letter
to Members of Congress and frankly, I just don't see
immediate decontrol stimulating prices to the extent
he indicates. Most important, however, is that we have
proposed phased decontrol and the Congress has twice
rejected our proposals. Consequently, the choice we
face now is another six months of delay or immediate
decontrol.
Digitized from Box 16 of the John Marsh Files at the Gerald R. Ford Presidential Library
-2-
Q.
Mobil makes the point that a windfall tax and tax rebates
to consumers would, in themselves, stimulate higher prices,
wages and spur inflation. How do you answer that?
A. Immediate decontrol without a windfall profits tax will
mean unwarranted windfall profits for the oil industry.
A windfall profits tax would allow the Federal Government
to recoup these profits and recycle them back to energy
consumers. Higher prices will result but this assures
that purchasing power is maintained and adverse economic
impact minimized. If the tax is properly structured, it
will not be a disincentive to increasing domestic production.
Q. The Administration has failed to spell out its proposals
for a "windfall profits tax" and a tax credit for "plowback"
into eligible domestic investments. What do you believe
should be the base for the tax on old oil, how fast should
the base rise, how long should it last, and what percentage
of the tax should be permitted as a credit for plowback?
A. As you know, Senator Long has proposed a windfall profits
tax, which, with minor modifications, would probably be
acceptable to the Administration. I hope that we will
be able to work with him, other members of the Senate
Finance Committee and the House Ways and Means Committee
to come up with an acceptable windfall profits tax and
consumer rebate proposal. And I hope we can do it quickly.
Q. Mobil recommends a phased decontrol of oil prices over a
period of "several years", without a windfall tax and
without tax rebates to consumers--with 50% of the phase-
out occurring in the first year. What is wrong with that,
in your opinion?
A. Mobil's suggestion resembles the Administration's phased
decontrol proposal sent to Congress in July. However,
the Congress turned down this proposal.
-3-
Q. You have said that crude oil prices will rise close to
the price for foreign oil, but that removal of the $2
fee on oil imports will substantially mitigate the effect
of higher oil prices. Do you have any idea how rapidly
domestic old oil prices would rise--and to what level
domestic old oil prices might rise?
A. As I've stated before, the net effect of decontrol, with
removal of the supplemental fees, in our estimate will
cause a price increase of about 3¢ a gallon. With re-
gard to old oil prices, I think we might well see the
$5.25 price of old oil rise relatively rapidly to slightly
below world prices, or equivalent to new oil prices. At
the same time, we might also see new oil prices being
somewhat depressed, depending on market conditions and
consumer response to higher prices. This overall adjust-
ment process will probably occur in a matter of months.
Q. Do you see any indication at all that the Administration
is now willing to again seek a phased decontrol of oil
prices over several years, and to accept a temporaty
extension of the Emergency Petroleum Allocation Act to
accomplish that?
A. As you know, the President has indicated that he will
veto the extension of the EPAA bill. Obviously, therefore,
he is not willing to accept a six month extension of
current controls. With respect to further compromise,
I am not very encouraged, given the House actions just
prior to recess -- disapproval of the President's very
gradual phase out plan and the price roll back provision
which was added to H.R. 7014 on the House floor.
Q. Do you have any more hope now than a month ago that
Congress would adopt a phased decontrol program, with
a windfall tax and tax rebates to consumers?
A. I continue to hope that Congress will adopt a windfall
profits tax and rebate the proceeds to American consumers.
I do have some hope that this will occur more rapidly
than I had imagined a month ago since Senator Long has
reported such a bill out of the Finance Committee. With
regard to phased decontrol, the President twice offered
decontrol compromises to the Congress and was twice re-
jected. We think the final decontrol plan went more
than halfway toward meeting the concerns raised by the
Congress. And even more gradual plan just wouldn't come
close to meeting the conservation goals the President
wants to achieve over the next few years.
-4-
Q. Assuming oil price controls are not re-imposed within
the next few months, and that OPEC should raise prices
by $2 a barrel, raising the domestic uncontrolled crude
oil price to about $14 a barrel after removal of the $2
import fee-what then would be the effect on gasoline
prices, heating oil prices, residual fuel oil prices,
natural gas prices, coal prices?
A.
We are in the middle of assessing that possibility
right now and should have some definite answers within
a few weeks. One thing to keep in mind is that any
OPEC price increase would have quite significant effects
on domestic energy prices whether controls were in place
or not. A rough estimate is that without any controls,
every dollar of OPEC price increase would translate into
about 2.5 cents of increased petroleum product cost.
Q. But, isn't it true that about half of the residual fuel
oil consumed in the U.S. is refined domestically and
that about 60% of that comes from $5.25 old oil? With
old oil rising to $12 or $14 a barrel, would it not be
inevitable that residual prices would rise?
A. While we do produce significant residual fuel oil
domestically, on the East Coast where coal and residual
oil compete, the market price is set by the world import
price. Therefore, even though domestic refiner's crude
oil costs will increase, they would not be able to pass
on these cost increases to residual oil users. Because
residual oil prices won't rise, I don't expect any increase
in coal prices.
Q. Assuming a $14 per barrel domestic oil price, how much
would that increase domestic oil prices, over a year,
in billions of dollars at the wellhead?
A. If price controls were to continue in their present
form and the price of uncontrolled domestic oil were
$14 per barrel, domestic crude oil costs would be about
$28.8 billion in 1976. Removing price controls on old
oil would increase 1976 domestic crude oil costs by $14.4
billion to $43.2 billion.
(continued on next page)
-5-
A. (continued) - However, the President has announced his
intention to remove the supplemental fees on imported
crude and petroleum products, which would result in
domestic oil being about $12.00 per barrel. This would
reduce the price of domestic uncontrolled oil and im-
ported crude by $2.00 per barrel and imported products
by 60 cents per barrel. Under these conditions, FEA
estimates that the total net increase in annual pe-
troleum and NGL costs would be $5.3 billion.
Q. How could independent refiners and marketers, forced to
buy and market oil and oil products costing $14 a barrel,
compete with the major companies who have most of the old,
low-cost oil, which they would run in their own refineries,
or sell at a large profit?
A. FEA does not expect crude-rich refiners to impose a profit
squeeze on other refiners. With decontrol and a winfall
profits tax, all domestic oil will sell at about the same
price and major oil companies will not have exorbitant
profits from crude production with which to subsidize
refinery operations, even if such subsidization were
advantageous to refiners.
Q: Do you believe some type of special relief, with or without
new legislation, should be considered to help the independents
during the transition period to free markets? If so, what
form could this take?
A. Obviously, we are very concerned with the health of the
independent sector of the petroleum industry and we are
currently monitoring and assessing their situation to see
what, if any, forms of relief would be appropriate.
Q. If oil price controls are not renewed, do you believe that
the Administration might favor imposing a price ceiling of
say, $11.50, on domestic oil, permitting the price of old
oil to gradually escalate over the next couple of years up
to the ceiling and recommend such a program to Congress?
A. If price controls are not renewed, the Administration would
not have the authority to impose a cap on domestic oil
prices. I might add, however, that such a cap and gradual
decontrol was included as part of the 39 month plan which
was rejected by the Congress.
-6-
Q.
The Administration has argued forcefully that lacking
adequate domestic supplies of oil, the only practical
method to spur conservation of petroleum is to permit
prices to rise and the President imposed the $2 in oil
import fees for this reason--in order to hold down oil
imports. What do you believe imports would average in
1976 and in 1977 if oil prices do rise to free market
levels after Sept. 1 and controls are not renewed? And
how would these levels compare with present import levels?
A.
The answer to this question depends on whether the current
supplemental import fees are retained or not. If they are
removed and decontrol occurs imports will be approximately
150,000 barrels per day less in 1975 and about 200,000 less
per day by 1977 than without any program. If the Congress
acts on Elk Hill, coal conversion and the insulation tax
credit, savings would reach 1.5 million by 1977. These
figures can be compared with current imports of about 6.0
million B/D in 1975 and an expected 7.5-8.0 million by 1977.
Q. If oil price controls are not renewed by Sept. 1, but a
windfall tax is imposed and, say, a 50% credit for plowback
is allowed, what effect would that have on domestic oil
supply? Would you expect oil supply to increase? How much?
By when? Why?
A. The effect of a windfall profits tax on oil production will
depend largely upon the specific provisions of the tax.
In general, however, it is my belief that whatever tax is
enacted it should contain some automatic phase out provision,
and it should provide an ultimate realization to producers
sufficient to stimulate new exploration, production and
investment in more sophisticated enhanced recovery techniques.
Of almost equal importance is the overwhelming necessity
for the government to provide an environment of relative
certainty so that investments may be contemplated in a
rational business fashion. If these objectives are met
I would expect a few hundred thousand barrels per day extra
supply within the first few years and an increase of as
much as 1.4 million barrels per day or more by 1985.
-7-
Q. What impact on GNP, unemployment and the CPI would you
expect from free market prices for crude oil and petroleum
products, assuming crude oil average about $12 a barrel
after price controls end?
A. Our macroeconomic simulations indicate that decontrolling
oil and removing the supplemental import fees will not
hinder our economic recovery. Relative to the the case
where controls and the import fees are retained we expect
the Consumer Price Index to rise by about one-half of a
percent by 1977; real output, GNP, falls by about 2 to 3
billion dollars on an annual basis for 1976 and 1977; and
the unemployment rate increases insignificantly during the
same period. These effects are well within the forecasting
error of our models and most importantly, are small compared
to the economic consequences if our vulnerability continues
to grow due to inaction and we experience another embargo.
Q. Cities Service Co. announced last week that it intends to
cut the price it now pays for uncontrolled oil by about $2
a barrel and raise its price posting for old oil by about
$5 a barrel. Do you think Cities Service will be able to
maintain its crude purchases at such a price level if other
purchasers do not follow Cities Service and do the same
thing?
A. The President has announced that he will remove the $2 per
barrel import fee if the Congress sustains his veto of the
bill extending price controls. Consequently, the price of
uncontrolled domestic oil will drop by as much as $2. At
the same time, old oil will tend to rise to parity with the
other domestic crudes. The total extent of that increase
will depend upon the quality of the oil, location and other
factors which normally influence the price of goods and
services. If Cities Service undertakes even further drops
in new oil prices, they will be subject to normal market
forces. To the extent that others may bid a higher price
for the decontrolled oil, CITCO must make a decision of
whether or not to meet the new price or lose the supply.
-8-
Q. What special problems do you believe might arise with price
decontrol and the end of allocations? Do they involve
propane, heating oil, other products? What is the Ad-
ministration considering to deal with those problems?
A. In general, no shortages of any petroleum products will
occur as a result of price decontrol and the end of allo-
cations. However, we are expecting a natural gas shortage
this winter which could create unexpected demands for
substitute fuels, such as propane. We are now developing
options for the President to deal with the overall natural
gas problem including special petroleum problems associated
with a natural gas shortage.
Q.
Some 14 states will have more or less severe shortages of
natural gas next winter for industrial consumers. What is
the Administration considering to deal with that problem?
Might it be necessary to allocate intrastate gas to inter-
state markets?
A. The Administration is considering legislation and administra-
tive actions to deal with the expected increase in natural
gas shortages. With respect to specific recommendations,
the President has made no final decisions, although I might
add that in general we do not believe allocation can solve
our natural gas problems and that ultimately deregulation
of natural gas prices is the only way to increase supply
and bring the situation back into balance.
MGMWSHI MSA.
8-038786C237002 08/25/75
TWX MOBIL OIL NYK
western union
Mailgram
UNITED
SERVICE
us
061 NEW YORK NEW YORK AUG 25
ZIP 20500
RON call
MR, JOHN VICKERMAN
EXECUTIVE OFFICE OF THE PRESIDENT
give after me you've a read
If
THE WHITE HOUSE
WASHINGTON, D.C, 20500
This BILL Baroody
YU5770
IN CONNECTION WITH THE RECENT NEW YORK TIMES ARTICLE COMMENTING
ON MR, RAWLEIGH WARNER, JR. 'S LETTER TO CONGRESS ON DECONTROL,
THE FOLLOWING LETTER, SIGNED BY MR. HERMAN J. SCHMIDT, VICE
CHAIRMAN OF THE BOARD OF MOBIL OIL CORPORATION, HAS THIS DATE
BEEN HAND DELIVERED TO MR. 1, M. ROSENTHAL, MANAGING EDITOR
OF THE NEW YORK TIMES:
: MR. A. M. ROSENTHAL
MANAGING EDITOR
NEW YORK TIMES
229 WEST 43 STREET
NEW YORK, NEW YORK
GERALD FORD LIBRAST
DEAR MR. ROSENTHAL:
IN TODAY'S NEW YORK TIMES FRONT-PAGE STORY, MR. MAIDENBERG
EDITORIALIZAED JUST ENOUGH TO DISTORT MOBIL'S POSITION ON THE
DECONTROL OF OIL PRICING. THIS OCCURS IN THE SECOND PARAGRAPH
OF THE STORY WHERE HE SAID THAT RAWLEIGH WARNER, JR., 'URGED
CONGRESS, IN EFFECT, TO OVERRIDE THE PRESIDENT'S PROPOSED
VETO OF A CONGRESSIONAL BILL THAT WOULD EXTEND SUCH CONTROLS
BEYOND AUGUST 31',
STATES POSTA
PAGE 2
11
westem union
Mailgram
UNITED *
SERVICE
U.S.MAIL
THIS WAS NEVER SAID IN OUR LETTER TO CONGRESS OR IN OUR NEWS
RELEASE, NOR WAS IT INTENDED IN ANY WAY. MR. MAIDENBERG'S
INTERPRETATION WAS WHOLLY HIS OWN, WE DO NOT BELIEVE THAT A
FURTHER SIX- MONTH DELAY IN FACING THE ISSUE OF DECONTROL IS
IN THE NATIONAL INTEREST, AND THIS IS WHAT WOULD RESULT FROM
AN OVERRIDE,
THE SOLE INTENT OF OUR LETTER TO CONGRESS WAS TO URGE IMMEDIATE
ACTION TO ESTABLISH A PROGRAM OF GRADUAL DECONTROL OF OIL PRICES
-- A PROGRAM WHICH WE STRONGLY BELIEVE WOULD BE IN THE BEST
INTEREST OF THE ECONOMY. IF SUSTAINING THE PRESIDENT'S VETO
WOULD ACHIEVE THAT GOAL, WE WOULD FAVOR CONGRESS TAKING SUCH
ACTION, RATHER THAN OVERRIDING THE VETO A.S YOUR REPORTER
SUGGESTED.
SINCERELY,
HERMAN J. SCHMIDT''
SIGNED: EDMUND P, HENNELLY
GENERAL MANAGER, GOVERNMENT RELATIONS
18:14 EST
MGMWSHT HSA
FORD
GERALD
LIBRARY
Thes,
THE WHITE HOUSE
WASHINGTON
August 29, 1975
MEMORANDUM FOR:
JACK MARSH
MAX FRIEDERSDORF
FROM:
PATRICK O'DONNELL
SUBJECT:
Senators Cotton, Hatfield, and Packwood
Walter Mote's statement on Hatfield and Packwood is incorrect.
I double-checked ; both are firmly with us and as a matter of
fact, Senator Packwood is willing to work targets and make
speeches in support of the President.
Senator Cotton said he had no intention of making a statement
on voting to override the veto. That rumor obviously is also
incorrect. He is aware that he would be the only member from
New England to vote to sustain but is not frightened by the
prospect. He wants to help the President, but must be armed
to take the heat. I told him that Frank Zarb would go up to
see him on Tuesday or Wednesday.
cc: Frank Zarb
FORDO i LIBRARY 07V820
AUG 30 1975
THE WHITE HOUSE
WASHINGTON
August 29, 1975
MEMORANDUM FOR:
JACK MARSH and MAX FRIEDERSDORF
FROM:
PATRICK O'DONNELL
SUBJECT:
S. 1849 -- override attempt
Contact with selected Senators on S. 1849 override attempt:
TAFT
"Want to re-examine issue. Have Zarb
meet with me after my return on September
3. Will meet with the President on
Wednesday, September 3, with the
Wednesday Group -- will no doubt discuss
at that time. "
BUCKLEY
"Will vote to sustain, notwithstanding
Mobil Oil. "
HATFIELD
"I voted against S1849 and will vote
to sustain the veto. 11
LONG
Out of the country.
STEVENS
Will be with the President. Not back
until around September 9.
GRAVEL
Will work Bentsen for us and coordinate
with Fannin. Involved in meetings at
the U.N. until September 15 but will
be back for vote and debate.
-2-
SCOTT (Penna.)
Send back promptly -- put burden on
Democrats for any politically motivated
delay.
FANNIN
"Am working on selected targets and
am inclined to recommend that the
President send the veto back to the
Hill quickly. 11 Sees no advantages
in delay and some political opportunities
by taking advantage of any attempt by
the Democrats to delay. Also confirmed
Johnston's statement that he will vote
to sustain.
JOHNSTON
In Tokyo but he told POD and Senator
Fannin on separate occasions that he
would vote to sustain the veto.
COTTON
When he met with the President recently
he told the President he did not see any
way a New England member could vote
to sustain the veto of S. 1849. The
President told him there would be special
steps taken to alleviate the New England
situation and that he would see to it that
Cotton was fully educated on matter.
He stands available to be persuaded. I'll
arrange a Zarb briefing.
YOUNG
Will vote to sustain but strongly urges
a reiteration in the veto message of
the President's desire for phased-in
decontrol. He also suggests some
statement on how the President will
handle the allocation problems facing
the mid-West.
GOLDWATER
"Don't worry about me; I'll be there
whenever needed. Tell the President
-3-
to use some muscle on this one in the
fashion of Harry Truman and Lyndon
Johnson. "
Speaking of muscle, the Senator
ruptured a calf muscle in late July.
It hemorrhaged and he spent a week
or so in Bethesda Hospital. He's
now on crutches but very much on the
mend.
HRUSKA
Will support the President. Took
a few targets to call before returning
to Washington. He will focus on Dole
whom we understand is wavering in
his support.
GARN
Will support the President.
SCOTT (Va.)
"Will support the President. 11 Was
pleased that we called (interrupted
a meeting with constituents).
BELLMON
"Don't worry about me. 11
CURTIS
Will support. Preparing speech
highlighting proposal that we must
face higher oil prices as a fact of
life.
THURMOND
Due to pressures he received in South
Carolina during the recess, the Senator
feels he cannot commit to supporting
the President at this point.
I feel it might take a Presidential
call to bring him around and so
recommend. He will be at 803/
236-7311 during the Labor Day
weekend.
-4- -
BROCK
Will support the President
FONG
"I'm with the President. What about
my candidate for the Postal Rates
Commission Board of Governors (? ). "
PACKWOOD
Will support the President.
GRIFFIN
Will support the President and is
anxious to compare notes.
DOMENICI
Not in favor of immediate decontrol
but recognizes the limited options
available to the President. Will
vote to sustain the veto but still
encourages a compromise if possible.
UNABLE TO REACH THE FOLLOWING SENATORS:
JOHNSTON
As stated earlier, he is in Tokyo
and will return to Washington
Tuesday.
DOLE
En route from Kansas to Washington
by automobile -- will probably
arrive late Friday, August 29.
BAKER
Expected to be available approximately
11:00 p.m. Friday, August 29.
SPARKMAN
Not reachable by telephone.
DIRECT CONTACT BY OTHERS:
BARTLETT
Will support the President
HANSEN
Will support the President
- -5-
HELMS
Will support the President
McCLURE
Will support the President
PEARSON
Will support the President
THE WHITE HOUSE
WASHINGTON
August 29, 1975
Handy
The Honorable Mike Mansfield
The Honorable Carl Albert
Minority Leader
Speaker of the House
United States Senate
House of Representatives
Washington, D. C.
Washington, D. C.
Dear Senator Mansfield and Speaker Albert:
SUBJECT: Summary of our discussions with the President earlier
today concerning oil decontrol
The following, I believe, represents a fair summary of our discussion
with the President:
1)
The President has indicated that he will veto the six-month
extension, but withhold the actual veto message until Thurs-
day, September 4, 1975.
2) The President would not veto a 30-day extension of the
Emergency Petroleum Allocation Acct (Messrs. Mansfield
and Albert suggested 45 days) if the Congress will move to-
ward the approval of a phase-out decontrol program.
3) The details of the compromise phase-out program would be as
follows:
a. Decontrol would take place over a 39-month period, at
a monthly rate of; 1 1/2 percent first year, 2 1/2 percent
second year, 3 1/2 percent last fifteen months. This pro-
gram would not increase prices during the first year.
b.
A ceiling of $11. 50 will be placed on new and released oil
escalating at the rate of 5 ¢ per barrel per month during
the 39-month period.
c.
Price control and allocation authorities required to
support this program would be enacted for the 39-month
period. An appropriate windfall tax program with plow back
and consumer rebate provisions would also be enacted.
Senator Mansfield
-2-
August 29, 1975
and Speaker Albert
d. The 60 ¢ per barrel fee on imported products would
be withdrawn by the President.
4) It was agreed that this compromise does not affect the Presi-
dent's authority to retain the existing $2 per barrel import
fee on crude oil.
It is clear that it would be in the best interest to clarify whether or
not this compromise will be accepted by the Congress at the earliest
possible date.
Sincerely,
Frank G. Zarb
FGZ:cb
THE WHITE HOUSE
WASHINGTON
M
August 29, 1975
The Honorable Mike Mansfield
The Honorable Carl Albert
Minority Leader
Speaker of the House
United States Senate
Hous e of Representatives
Washington, D. C.
Washington, D. C.
Dear Senator Mansfield and Speaker Albert:
SUBJECT: Summary of our discussions with the President earlier
today concerning oil decontrol
The following, I believe, represents a fair summary of our discussion
with the President:
1)
The President would not veto a 30-day extension of the
Emergency Petroleum Allocation Act (Messrs. Mansfield
and Albert suggested 45 days) if he is confident that the
Congress will act favorably on a "phase-out" decontrol
program.
2) The details of the compromise phase-out program would
be as follows:
a. Decontrol would take place over a 39-month period,
at a monthly rate of; 11/2 percent first year, 2 1/2
percent second year, 3 1/2 percent last fifteen months.
This program would not increase prices during the
first year.
b. A ceiling of $11. 50 will be placed on new and released
oil escalating at the rate of 5¢ per barrel per month
during the 39-month period.
C. Price control and allocation authorities required to
support this program would be enacted for the 39-month
period. An appropriate windfall tax program with plow
back and consumer rebate provisions would also be enacted.
Senator Mansfield
-2-
August 29, 1975
and Speaker Albert
d. The 60¢ per barrel fee on imported products would
be withdrawn by the President.
3) It was agreed that this compromise does not affect the
President's authority to retain the existing $2 per barrel
import fee on crude oil.
4) The President has indicated that he will veto the six-month
extension, but withhold the actual veto message until after
Thursday, September 4, 1975.
It is clear that it would be in the best interest to clarify whether or
not this compromise will be accepted by the Congress at the earliest
possible date.
Sincerely,
Juh Jal Frank G. Zarb Administrator
Federal Energ Administration
FGZ:cb
FOR IMMEDIATE RELEASE
August 29, 1975
Office of the White House Press Secretary
THE WHITE HOUSE
M
STATEMENT BY THE PRESS SECRETARY
The President met for one hour with Senate Majority Leader Mansfield
and House Speaker Albert. Also attending were Frank Zarb, Alan Greenspan,
Rogers C.B. Morton, Max Friedersdorf, and Jack Marsh.
The President expressed his appreciation for the constructive way in
which Senator Mansfield and Speaker Albert are seeking to resolve this
difficult national energy problem.
It was understood that the President will veto the six-month extension
of oil price controls because he strongly believes the economic
health and security of the United States permit no further delay in
beginning a program to achieve independence from unreliable foreign
energy sources which can set our oil prices at will.
However, the President agreed to delay vetoing the bill until Senator
Mansfield has discussed his compromise decontrol plan with Senate
Democrats. Speaker Albert also will review the compromise plan with
a number of House Democratic leaders.
The President told Senator Mansfield and Speaker Albert that he would
not veto a short extension of oil price controls if he is reasonably
confident that Congress will act favorably within a matter of weeks on
the phased decontrol plan offered by Senator Mansfield.
#
#
#
Some items in this folder were not digitized because it contains copyrighted
materials. Please contact the Gerald R. Ford Presidential Library for access to
these materials.
AUG 30 1975
THE WHITE HOUSE
WASHINGTON
August 29, 1975
MEMORANDUM FOR:
JACK MARSH
FROM:
MARGITA WHITE maw
SUBJECT:
Oil Decontrol Editorials
Attached are editorials on oil decontrol compiled from the
newspapers the White House subscribes to, FEA's clip files
and other sources. They are in order by date and all support
the President's position and/or urge compromise action. Some
of the more recent editorials appear to deal with the Appeals
Court decision on the oil fee but have been included if they also
involve the President's policy.
I apologize for the poor quality of the xerox copies, but the FEA
files xeroxes only and not the originals.
CC: Alan Greenspan
Ron Nessen
Don Rumsfeld
Frank Zarb
YORD
Fled 7/28/75
Compromise on oil pricing Wash. star
President Ford and Congress both have more
cost of search and drilling, domestic crude
to gain than to lose, politically, by meeting mid-
should be held to the neighborhood of $7.50 a
way on the issue of domestic crude oil pricing.
barrel, lest the oil cartel and OPEC drain the
Finding that meeting point, somewhere between
proceeds of higher prices out of our pockets.
"free market" pricing and arbitrary legislated
It shouldn't be beyond the wit of man - even
ceilings, has not been easy.
of Congress - to combine incentive to increase
Detroit Dree Dress
JUL 29
ANINDEPENDENT NEWSPAPER
12-A
TUESDAY, JULY 29, 1975
As We See It
Compromise in Congress
Urgent on Oil Prices
AS CONGRESS moves toward its expected
had no energy policy at all. Almost every
recess at the end of this week, the need for
congressional effort at a conservation policy
compromise to end the stalemate over energy
has come to grief, and there has been almost
policy is urgent
no attention given to the need for stimulating
the search for and production of domestic oil
The alternative to compromise is to have
the controls on the price of oil expire outright
Therefore, what we have had has been stale-
at the end of August. which would produce a
mate, with the president thus far unwilling to
strong inflationary joit to the economy. Thus,
is
to
give up on the idea- of moving toward the
Dallas Morning
The News, olders business institution in Texas, was established in 1842
while Texas - 0 Republic
Editorial Page
Dick West, Editorial Director
TUESDAY, JULY 29. 1975
VJ
Energy:
Ford's Loaded Proposal
PRESIDENT FORD has re-
of "new" all, that produced in
shaped an energy plan following
1973 and after, and selling on the
dongressional refusal of his origi-
open market at about $12.50 per
Bal model. and has sent It back
barrel. would be rolled back 10
is" Capitol Hill for what he hopes
$11.50 per barrel and allowed to
rise slowly over the next three
will be quick approval.
years.
This latest version comes
Details of the consumer rebate
equipped with Just about all of
and windfall profit tax aspects of
the accessories that are politically
the proposal have not been spelled
attractive to Congressmen, such
out yes.
JU
D
THE CHRISTIAN SCIENCE MONITOR
For action on oil
pg 20
The time has come for Congress to bite the
price hike). Thereafter they should rise
political bullet on energy. It can demonstrate
modestly and have a tolerable impact on the
this week that it is capable of responsible,
economy. According to Data Resources, Inc.,
bipartisan action by adopting President
a leading nonpartisan research firm, the rise
ord S brogram to decontrol oil prices.
in prices on domestically produced "old" oil
Mr. Ford has walked another mile to make
and resulting increases in other fuel costs
bis second decontrol package more palatable
would boost the rate of inflation by only 0.3
to the Democrats. This plan would stretch the
percent in 1975 and by 0.3 percent in 1977. The
Wednesday, July 30, 1975 The Seattle Times A II
The Times' opinion and comment:
Break the oil stalemate
The monthe - sministratio be-
the nation's dependence on im-
and
ported oil. The congressional
Congress over energy policy has
majority talks n great deal about
reached the showdown stage
the economic and strategic per.
President Ford has offered Con-
ils of continued dependence on
gress a compromise that now
the international oil cartel-but
looks like the best way to break
lacks the political fortitude to
the impasse.
take any of the hard measures
The President and the con-
needed to reduce that depen-
gressional majority established
dence.
who
Ann leng the nation has
THE DALMS TIMES HEIMLD
EDITORIALS
2-B Fri., Ack. 1, 1875
DALLAS, TX
People the losers W
THE ISSUE: The impasse
much as 12 cents per gallon. Fur-
reached by the President and Con-
ther, the increased costs of other
gress on decontrol of oil prices.
petroleum products will have an
inflationary impact throughout the
CONGRESS AND the President
economy.
have reached a critical point in the
Congress, and particularly the
formulation of a national oil pric-
Democratic membership, is bank-
ing program, still at irreconcilable
ing on President Ford's taking the
loggerheads. And the losers sooner
blame of the public for the in-
THE PLAIN DEALER
OHIO'S LARGEST NEWSPAPER
THOMAS VAIL
Publisher and Editor
ROY O. KOPP
THOMAS R. GUTHRIE
Business Manager
Executive Editor
Net paid circulation for the year ended March 31, 1975
DAILY 395,826 SUNDAY 487,110
26
As filed with the Audit Bureau of Circulations, subject to audit
Page 4-B
Cleveland, Chio
Friday, August 1, 1975
Congress bungles oil prices
Congress has defeated itself as well as
remodeling his decontrol proposal ever
the American consumer by botching the
since January and Congress has not shown
oil price control system. It tried to hold
the slightest give. If there is instant decon-
the lid on domestic oil prices. Instead. the
trol, Congress will be to blame for the
lid almost certainly is going to blow off on
unhappy consequences of its ill-advised po-
Chicago Tribune
FOUNDED June 10. 1347
STANTON R. Cook. Cusirman and Publisher
ROBERT M. HUNT. President and General Manager
CLAYTON KIBEPATRICK. Editor
JOHN MCCUTCHEON. Editorial Page Editor
MAXWELL McCROHON, Managing Editor
WILLIAM H. JONES, Managing Editor News
00 12
Section 1
V
Friday, August 1,1975
THE NEWSPAPER is an institution developed by modern civilization to
present the news of the day, to foster commerce and industry,
to inform and lead public opinion. and to turnish that check upon
government. which no constitution has ever been able to provide.
-THE TRIBUNE CREDO
If oil price controls end
In an astonishing display of obtuse- countries, which provide us. with some
ness: or partisan brinkmanship or both, 30 per cent of our domestic oil require-
the House has rejected President ments, from raising prices. The govern-
Fled memphis Commercial appear 8/1/75
Oil Veto Is In Order
PRESIDENT FORD should veto pro-
while on vacation, and controls run out
posed legislation to extend current price
Aug. 31, oil prices would be free to begin
controls on domestic oil for six months. A
rising Sept. 1. Energy chief Frank Zarb
price bill passed yesterday by the House
predicted gasoline would be selling for 70
and by the Senate July 15 would continue
cents a gallon by winter without any
to leave the United States without an
controls.
energy policy and, as Ford warned recent-
If Ford allowed an extension bill to
ly, would cause the nation to "drift into
become law, Congress would be less likely
greater energy dependence."
to try to put together some kind of energy
package when it returns from vacation
Crass politics appears to have swayed
next month. Perhaps a sudden surge in
THE KANSAS CITY TIMES)
Vol. 107
Saturday, August 2. 1975
No. 282
Energy Deadlock Could Bring
A Day of Reckoning
Congress went into the final hours
So long as the incipient energy crisis
before its month-long August recess
remains, in Frans Zarb's words, in-
mired in an incredible mishmash of
visible, then Congress can afford polit-
conflicting energy legislation. Twice
ically the luxury oi rejecting President
in as many weeks the House killed
Ford's plans for dealing with it while
President Ford's proposal to phase out
offering no effective counter proposals
oil price controls gradually. his third
of its own. But some ominous and inex-
offer lengthening the period from 30 to
orable trends are at work: As our old
39 months.
domestic oil fields play out, without
adequate price incentive to stimulate
Meanwhile Congress has been strug-
sufficient new exploration and produc-
gling with a bill to extend price control
tion. this country's reliance on im-
to so-called new (post-1972) oil and on
perted oil will increase. And that oil
Thursday it sent Mr. Ford a measure
promises to become increasingly
0- the purhority for controis
dnt future Aven
scandal of inaction
We have struggled and struggled," Rep. B.,
another attempt to shift blame for the approach-
F. Sisk told the House of Representatives. as it
ing sudden lapse of price controls on "old" oil to
went on running in circles on the oil-pricing
Mr Ford - an extension of these controls that
issue, "and haven't even brought forth a
the President has all but sworn to veto
mouse
We do not contend that so-called "market
It isn't necessary to sharpen this self indict-
forces" are an ideal instrument of control of
ment by one of the House's own. After all, Con-
crude oil prices; but if the either-or choice has
gress from the outset of its curious treatment of
to be made because of congressional inaction
the energy issue has conceded that President
market regulation may be preferable to legislat-
Ford is right in principle i. e.; that the Ameri
ed ceilings that are manifestly too low. In the oil
can dependency on imported crude oil is danger-
market, whose mysteries certainly baffle us,
ous, that the search for larger domestic produc-
there are too many ways in which prices can be
NY. Times 8/3/75
Congress Triumphant?
Congress has quit for its traditional August recess on
a note of institutional triumph, having successfully re-
buffed President Ford on several foreign and domestic
issues; but its sense of satisfaction is unjustified.
After months. of public posturing and private nego
tiating, Congress and - the President reached a critical
showdown on oil policy last week, and Mri Ford lost.
His final compromise plan for phasing out oil price
controls gradualiv- over 39 months was reiscted in the
8/4/75
THE WALL STREET JOURNAL
8
REVIEW & OUTLOOK
Nabbing the Pink Panther
Like Inspector Clouseau, who but only $5.25 during August, there
fumbles his way to solution of a is bound to be a brief and over-
crime, the Democratic Congress whelming incentive to hold back do-
and Republican President have been
mestic production. Before the Fed-
bungling and stumbling on energy
eral Energy Administration bureau-
legislation for months, yet in the and crais knew-what hit them, there
the perfect solution-oil-price decon- would be a
Doubts on Deregulation
A Harris Survey in this newspaper sion bill voted by Congress before it
yesterday recorded a stunning vote of recessed.
confidence in two of the Ford Adminis- But there is more. Many poll respon-
tration's energy policies The returns is dents agreed that "deregulation will
were decisive, certainly, but it seems bring in more production at home and
more than likely that many who took eventually will bring prices down. More
part in the balloting may later demand production Perhaps, especially from
a recount-or express themselves dif-
wells that have been left idle while their
ferently in coming elections.
operators lobbied for decontrol. But
The poll recorded thumping 54 to 22
lower prices? That is a dangerously
ner cent majorities in favor of decontrol-
speculative proposition. Oil, an increas-
OTIS CHANDLER, Publisher
flos Angeles Times
ROBERT D. NELSON
Executive Vice President and General Manager
HARRISON GRAY OTIS, 1882-1917
WILLIAM F. THOMAS
Executive Vice President and Editor
HARRY CHANDLER, 1917-1944
NORMAN CHANDLER, 1944-1960
CHARLES C. CHASE, Vice President-Production
ROBERT L FLANNES, Vice President and Assistant to the Publisher
ROBERT C. LOBDELL, Vice President and General Counsel
VANCE L STICKELL, Vice President-Saies
JAMES BASSETT, Associate Editor
ANTHONY DAY, Editor of the Editorial Pages
ROBERT J. DONOVAN, Associate Editor
FRANK P. HAVEN, Managing Editor
JEAN SHARLEY TAYLOR, Associate Editor
4-Part II
TUESDAY MORNING, AUGUST 5, 1975
Easing the Jolt at_the Pump
Members of Congress found time to vote them-
But critics in Congress and elsewhere rightly point-
selves a pay raise last week before taking off for a
ed out that the jolt to an already-depressed econo-
vacation lasting until after Labor Day: But they
my would be too dangerous. The President ulti-
wouldn't stay in town long enough to work out a
mately came in with a
compromise with the Administration on
tensing, MicH.
Tuesday, August 5, 1975 The STATE Journal-Register Page &
Democrats pay politics
with energy problem B.
A BRIEF REVIEW of recent
price of all oil. Democrats in Con-
history is in order for these
gress, unsure whether they could
Americans who wish to put the
male a veto of the President's
present dramatic showdown be-
act stick, compromised by freez-
tween Congress and the adminis-
ing oil prices for 90 days -- prom-
tration into focus.
ising that they would have a com-
The elements of the draina
prehensive energy program in
make very good headlines. Con-
that time. Since then the Presi-
gress has vetoed a President's
dent has reminded them of their
energy program in a period when
promise by adding another $1 per
many are assessing the relative
barrel import tax on June 1.
strengths of the presidency and
the Congress. The legislative
Coincidentally; the 90-day Res-
branch in turn voted only to CX-
lation period for the Democratic
Ford THE Should DENVER Veto oft Oil Lid
President Ford should veto the congressional
As Congressman Wirth pointed 8/6/75 out last Week-
price freeze on petroleum prices. The freeze was
end nothing much is likely to happen to oil prices
only a time-saving device by the Democratic
Aug. 31 even if the President does exercise his
leadership. And as Colorado Rep. Tim Wirth, a
veto. Wirth predicted the oil companies will exer-
Democrat. has pointed out there is not likely to be
cise restraint on prices to insure a good climate
any price impact resulting from the veto.
for renewal of legislative negotiations on the
During the crisis over oil prices two years ago
subject in September.
Congress enacted a price freeze on "old" oil in
While Wirth disagrees with the position held
the United States. This is oil presently being
presently by Ford S negotiators he does. under-
produced. This emergency control is to expire
stand the necessity of having enough production
Aug. 31.
to keep the economy healthy. He has, thus, been
Congress and the Ford energy experts have
prominent among those congressmen working
been working hard on a replacement legislative
with the administration to try to find common
package for price control. They've made some
ground for a national oil policy. Such a policy
progress. But when the chips were down last
would protect the consumer but also recognize
week-just before congressional adjournment-
that such protection must not be allowed to de-
the process stalled. Since Congress isn't coming
stroy the incentive to explore and keep on pro-
back until Sept. 3 the leadership hastily passed a
ducing petroleum products for a healthy econ-
e.v. month erdencion of the mene
Indianapolis Star
8/8/75
cyure new tactics by boaru
A tax that's done its job
President Ford is thinking of remov-
control will raise the price of a gallon of
ing his 32-a-barrel duty on imported oil,
gasoline by about 7 cents at the most-
now that the remaining domestic price
and probably not all at, once.
controls are about to expire. He should
In view of this projected increase and
do so. The purpose of the duty, as he
the dampening effect it could have on
said himself when he imposed it-the
the economy, there is no point continu-
first $1 in February and the second in
ing the import fee, which has raised the
June-was to raise the price of oil and
price of gasoline by perhaps 3 cents a
thereby discourage consumption. He
gallon. Removing this would reduce the
The idlnn/Reporter-Celeguam
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Rights of publication of all other matters herein also reserved.
JAMES N. ALLISON (1902-1975)
JIM ALLISON JR.
PUBLISHER
ADVERTISING RATES: Display advertising and legal notice rates on application.
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and in no case does the publisher hold himself liable for damages further than the
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EDITORIALS
Special Session
(?)
Two Republicans - a senator
were rejected by Congress.
and a representative-have urged
Existing controls expire Aug.
President Ford to call Congress
31, at which time the price of oil
back from its month-long recess to
could advance to world levels. The
deal with energy legislation.
The President. it is understood
free market actually
A tax that's done its job
President Ford is thinking of remov-
control will raise the price of a gallon of
ing his $2-a-barrel duty on imported oil,
gasoline by about 7 cents at the most-
now that the remaining domestic price
and probably not all at once.
controls are about to expire. He should
In view of this projected increase and
do so. The purpose of the duty, as he
the dampening effect it could have on
said himself when he imposed it-the
the economy, there is no point continu-
first $1 in February and the second in
ing the import fee, which has raised the
June-was to raise the price of oil and
price of. gasoline by perhaps 3 cents a
thereby discourage consumption, He
gallon. Removing this would reduce
A PAGE OF OPINION
COLUMBUS
The Dispatch
AN INDEPENDENT NEWSPAPER FOUNDED JULY 1, 1871 - EVENING AND SUNDAY
8/10/75
Energy Supply Hit
By Brinkmanship
W
HITE HOUSE assurance oil
ing fact congressional leaders have
price controls will expire
yet to deal with such essentials as
Aug. 31 means the American
writing windfall profits legislation
consumer's pocketbook may be in
which will insure continued explo-
for another jolt all because of
ration as well as direct or indirect
congressional brinkmanship in the
relief to the consumer.
field of energy supply.
Nor is there any assurance this
The White House not only said
nation is ready to embark on a
President Ford would veto the six-
necessary program to procure the
S
Tuesday, August 12, 1975
THE MILWAUKEE JOURNAL
LUCIUS W. NIEMAN, FOUNDER: 1882
HARRY J. GRANT. 1915-1963
IRWIN MAIER Chairman of the Board
DONALD B. ABERT. Publisher
RICHARD H. LEONARD. Edicor
JOHN N. REDDIN, Editorial Page Editor - JOSEPH W. SHOQUIST. Managing Editor
Published by Newspapers, Inc, a Division of The Journal Company.
Milwaukee, Wis. 53201
Phone 224-2000
Court Curbs President on Energy
Once again it is shown that
The Wall Street Journal, on the
President Ford lacks sufficient
other hand, surveyed a wide vari-
authority to lead the nation out of
ety of sources- inside and out of
its mounting energy problems un-
less Congress co-operates. The
the energy industry. It found gen-
A
ming
that
erally that they expected fuel
Bangor Daily News
12 Friday, August 15, 1975
F/Ed
IN OUR OPINION
Going cold turkey
on energy addiction
Energy IS a lot like heroin. It's addicting.
Many experts are saying that unless the
Its use leads to irrational behavior. And every
United States changes the way it uses energy, it
fix is more expensive than the last.
is likely to become a second or third rate nation
Unfortunately, most of the energy addicts
by the end of this century.
in the United States are also voters or powerful
corporations. So not many politicians are
The indications
Energy
Consumption
willing to advocate a course of "cold turkey" to
are all around us:
Per Person
solve our energy problems.
inefficient use of
Expressed AS guilons of oil
That's why so many congressmen and
materials and resour-
governors (including Sen. Edmund S. Muskie
ces, lowest produc-
2,520
.
Fled,
THE ATLANTA- CONSTITUTION
For 107 Years the South's Standard Newspaper
James M. Cox, Chairman 1950-1957-James M. Cox Jr., Chairman 1957-1974
DEPARTMENT STANDARD KW
JACK TARVER, Publisher
REG MURPHY, Editor
PAGE 4-A, MONDAY, AUGUST 17, 1975
Still No Program
President Ford and Congress are
to allow the controls to expire over a
butting heads again about oil-price
period of time were rejected by Con-
policies. Meanwhile, the nation contin-
gress. It chose to pass an extension of
ues with no energy program because
the current controls for six months.
Congress has refused to make the
But Ford is vetoing it because ap-
tough decisions and compromises.
proving it would "mean only more
necessary.
months of delay without the critically
Because Congress has failed to
needed incentives to promote conser-
and
sour
new
domestic
oil
The Piitsburgh Press
(A Scripps-Howard Newspaper)
Established June 23, 1884-Published Daily and Sunday
JOHN TROAN
BARNEY G. CAMERON
Editor
Business Manager
LEO KOEBERLEIN, Executive Editor
Offices. 34 Boulevard of the Allies, Pittsburgh, Pa. 15230
P.O. Box $66-Telephone 263-1100; Want Ads 263-1201
SCRIPPS HOW ARD
Give Light and the Prople Will Find Their Own Way
PAGE 2 SECTION B
SUNDAY, AUGUST 17, 1975
Ford's Oil Plans
FlEd
President Ford has made Congress an offer
promote conservation, and higher prices do
it should not refuse.
produce increased efficiency in the use of
His offer is to lift price controls from the
petroleum products.
oil industry and find out if a free market can
"Cheap energy encourages waste and pre-
lead to more domestic oil production and con-
serves inefficient energy technology. When the
servation-and less dependence on the foreign
price of energy reflects its value to societv.
oil cartel.
28
THE COMMERCIAL APPEAL
A
Scripps-Howard Newspaper
GORDON HANNA, Editor
Published by The Memphis Publishing Co., 495 Union, Memphis, Tenn. 38101
JOSEPH R. WILLIAMS, Business Manager
The Memphis Commercial
Established 1889
Consolidated July 1, 1894
The Appeal
Extablished 1840
The Avalanche
Establishes 1807
Page 6
Monday, August 18, 1975
Ford On Oil
The present law Pled in addition
PRESIDENT FORD now has made it
official. He will veto the six-month exten-
trolling prices on old oil - that fr
sion of petroleum price controls which are
wells which had been in operation prior )
to expire at the end of this month. And if
1973 - also gave the Federal Ener
Congress upholds his veto he will remove
Administration the power to allocate the
the $2 per barrel import fee on crude oil.
supply of crude and oil products.
His program for action was outlined
If a price scramble should occur a a
again in his speech Friday to the Vail
result of decontrol, the major producer
32-Rocky Mountain News
Mon., Aug. 18, 1975, Denver, Colo.
Ford's oil plans
PRESIDENT FORD has made Congress
Ford's first step will be to veto the six-"
an offer we hope it can't refuse.
month extension of controls past Aug. 31,
His offer is to lift price controls from the
which Congress passed hurriedly before
oil industry and find out if a free market
going on vacation.
can lead to more domestic oil production
and conservation. - and less dependence
Then, if Congress upholds the veto, Ford
on the foreign oil cartel.
will remove his $2-a-barrel tariff on im-
The President, his advisers and free-
ported oil. That move, according to admin-
enterprise economists are convinced the
istration energy experts, should limit the
test will work out well. We think Ford's
rise in gasoline prices caused by decontrol
plan is worth a try, especially since Con-
to three cents a gallon over the next few.'
gress couldn't come up with an oil policy
months
in months of flailing about.
)
We would have preferred a gradual end-
ing of controls over a 39-month period to
sudden decontrol. But that Ford proposal
was a bullet Congress proved incapable of
A-6
Monday, August 18, 1975
THE ARIZONA REPUBLIC
Editorials
After decontrol, what?
Democratic congressmen are
nation independent of OPEC
making dire forecasts of how much
the price of gasoline and fuel oil
Decontrol also should encourage
will rise if President Ford vetoes
what oil experts call secondary
an extension of price controls on
recovery. This means getting the
domestic oil and his veto is sus-
oil still left in the ground after the
tained.
use of conventional techniques.
Some have predicted an immedi-
Decontrol also should encourage
The Philadelphia Inquires
AUG 19 1975
The oil veto: no choice
President Ford has now made it of- domestic oil prices which are con-
ficial: "To help reduce dependence on
trolled and, for the first time, a ceiling
imports and stem the outflow of Amer-
on those which were not.
ican dollars and jobs; I will veto the
Even that proved unacceptable on
six-month extension of price controls
Capitol Hill, where any sense of ur-
P/Goled
THE DENVER POST Wed., Aug. 20, 1975
Congress: Uphold Oil Veto
cate such industries to return to the burning of
President Ford's economic advisers expect an
Increase of about three cents a gallon in gasoline
coal. We cannot avoid scarcities in domestic crude
prices over the next few months if price controls
are killed. This is a small price to pay in return for
production. We already have them-this country
produces only about 65 per cent of its present
getting increased domestic production.
While a price freeze made sense following the
supply. But the shortfall will be a lot worse if
Arab oil boycott two years ago-as a means of
Congress unwisely tries to keep prices unrealis-
stabilizing the U.S. economy-federal action to
tically low.
Congress, therefore, should go along with
keep prices unrealistically low is bad long-term
President Ford's veto of the extension of price
in Laty
Editorials a Charleston Gas: W.Va. 8/20/75
New Economic Policy
Nation's Only Salvation
As an integral part of his energy pro-
fair of Tristan and Isolde resemble a child-
gram. President Ford will remove price
hood romance. is forced to fuel the light
controls on domestic oil.
of his life with the lion's share of a twenty
Congressional Democratic leaders are
dollar bill. Mr. Ford's election bid next
upset and predict that gasoline prices will
year could be in terrible trouble. no mat-
climb to 90 cents and higher a gallon. (Of
ter how much bloodietting occurs among
course. Democrats in Congress have had
Democrats.
seven months to develop an energy pro-
The economy isn't bounding back Infla-
gram. but vacations keep
THE COLRIER-JOURNAL, WEDNESDAY, ALGUST 27, 1975
I
AUG 29
Opinion
U
Oil veto would force Congress to act
AS ECONOMICALLY RISKY and misunder-
stood as it may be, President Ford should veto
the congressional bill extending oil-price con-
trols for another six months. Those controls,
on two-thirds of the nation's domestic oil pro-
duction, are now due to expire at midnight
Sunday.
To recommend that Mr. Ford veto extension
August 30, 1975
MEMORANDUM FOR:
MAX FRIEDERSDORF
FRANK ZARB
FROM:
JACK MARSH
I believe we should pull together as quickly as possible some
information that will be helpful for our use and those who
support the President's position on the Hill to discuss and
explain the present situation, particularly the facts to support
sustaining the President's vete. I realize there may be some
changes on how the issue might develop because of the Mans-
field/Albert meeting, but nevertheless I think it would serve
a two-fold purpose. First, to be ready to sustain the veto if
the proposal suggested by Mike goes sour. Secondly, to have
the information available to support the decontrol plan that
might be offered pursuant to the Mansfield offer.
I would envision an information package that would consist of
four separate parts:
Part One --
background which would be both a history
and chronology of the energy and the
President's effort to address it.
Part Two --
talking points which would be key, hard-
sell, information bullets that support our
position.
Part Three --
questions about decontrol you wanted to
know but were afraid to ask. This would
be a Q&A section of the 25 questions that
nearly always reoccur.
Part Four --
collection of editorial comments on a nation-
wide basis which supports the President's
energy program. Margita White has pulled
this material together.
JOM/dl
FORD & LIBRARY GRAVID
decontrol
August 30, 1975
MEMORANDUM FOR:
MAX FRIEDERSDORF
FROM:
JACK MARSH
Early on Tuesday I think it would be most helpful if Kendall
and O'Donnell could firm up those question mark Senators
we had such 88 Brock, Taft, Dole, Demenici, Thurmond,
Baker, etc.
JOM/dl
FORD & LIBRARY
decontrol
August 30, 1975
MEMORANDUM FOR:
MAX FRIEDERSDORF
FRANK ZARB
FROM:
JACK MARSH
I believe we should pull together as quickly as possible some
information that will be helpful for our use and those who
support the President's position on the Hill to discuss and
explain the present situation, particularly the facts to support
sustaining the President's vete. 1 realize there may be some
changes on how the issue might develop because of the Mans-
field/Albert meeting, but nevertheless 1 think it would serve
a two-fold purpose. First, to be ready to sustain the veto if
the proposal suggested by Mike goes sour. Secondly, to have
the information available to support the decontrol plan that
might be offered pursuant to the Mansfield effer.
1 would envision an information package that would consist of
four separate parts:
Part One --
background which would be both a history
and chronology of the energy and the
President's effort to address it.
Part Two --
talking points which would be key, hard-
sell, information bullets that support our
position.
Part Three --
questions about decontrol you wanted to
know but were afraid to ask. This would
be a Q&A section of the 25 questions that
nearly always reoccur.
Part Four --
collection of editorial comments on a nation-
wide basis which supports the President's
energy program. Margita White has pulled
this material together.
JOM/dl
GERALD R. LIBBARY FORD
August 30, 1975
MEMORANDUM FOR:
MAX FRIEDERSDORF
FROM:
JACK MARSH
In reference to the decontrol matter, I think it's very important
that the President personally talk by phone with Russell Long.
I think we can wait a day or so on his calling McClellan or East-
land or other Democrats because they will want to wait to see
what comes out of the meating Mike Mansfield is going to have
Thursday.
However, I think we should discuss with the President the
possibility of having a meeting with John Rhodes and Hugh
Scott in order to counter-part the meeting he had with
Mansfield and Albert. You might feel it would be helpful to
enlarge that meeting to include Griffin, Michel and perhaps
one or two other Republicans.
I think we should chat about that.
JOM/dl
FORD is LIBRARY 9.17839
Rowland Evans and Robert Novak
WASH POST 8/31/25
Overriding an Oil Veto
President Ford's unexpected delay
asked Republican state chairman Rich-
of his oil price control veto must be
"Senators were inundated by constituent
ard Richards of Utah to suggest a
read against the background of a
state fundraiser, he replied that his
grass roots debacle for him during the
August congressional recess: key sen-
complaints-particularly among farmers-about
conservative state was not Ford coun-
try in the wake of the First Lady's re-
ators defecting on oil price decontrol
after talking to angry, inflation-con-
any new gasoline price hikes."
marks.
scious constituents.
Needless discourtesy by Gov. Ed-
Calls from congressional head-
conservative Republican Sen, Norris
Ford's CBS interview Aug. 13 is re-
mund G. Brown Jr. of California
counters at the White House and the
Cotton, who came out of retirement to
flected in tabulated results of Albert
toward a fellow governor may have
Federal Energy Administration placed
temporarily fill the vacancy created by
Sindlinger's authoritative nationwide
decided last Wednesday's 11 to 9 vote