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    "title": "Peterson Commission Report on Executive Salaries, December 12-31, 1976",
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    "ocrText": "The original documents are located in Box 6, folder \"Peterson Commission Report on\nExecutive Salaries, December 12-31, 1976\" of the White House Special Files Unit Files at\nthe Gerald R. Ford Presidential Library.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. Gerald Ford donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nDigitized from Box 6 of the White House Special Files Unit Files at the Gerald R. Ford Presidential Library\nTHE PRESIDENT HAS SEEN\nDecember 13, 1976\n2:40 pm\nJTL\nTelephone message from Peter Peterson\nMr. Lipschutz just phoned Mr. Peterson. He told him that Governor\nCarter, Mondale, Lance and Lipschutz met last night for an extended\nperiod on the Quadcom recommendations. Their recommendations\nare as follows:\n(1) With major efforts on their part to hold the line on wages and\nprices, they think it is extemely important that Carter in his new\nrole engage in a mammoth effort to hold the line.\n(2) Consistent with that, they believe that Quadcom recommendation\nshould be cut in half. Happy New Year!\n(3) It is not that they don't think that what Quadcom is recommen-\nding is completely justified, they think the climate that needs to\nbe set at the government level should be an example for the rest of\nthe country.\n(4) On the code of public conduct the Governor is all with us on that\nand will want to have his own code released reasonably soon for\nthe Executive Branch to set an example. While they believe that\nit should be tied together, i.e., reform and salaries, Mondale\nhopes we don't need to be too specific on details at this time.\nE. G., Mondale says that the House people don't earn many\nhonorariums and about half of the Senate is wealthier and they\ncount more on investment income. (I told Lipschutz that I don't\nagree with the concept that investment income -- particularly\nwith public disclosure and tougher conflict of interest rules -- is\nthe same as honoraria which is often made in the hope of getting\nlegislative support\n)\n(5) Lance will be in touch w/JTL to review this, which I strongly\nencourage. I am dying to have them get it as precise as possible.\n-2-\n(6) I told Lipschutz that I would have to think over my own reactions\nto this but that we much appreciated their cooperation.\nReminder -- When PGP established contact, he indicated Lipschutz\nwas to be the official channel so he (PGP) thinks this is as precise\nas we will get, particularly ;if it confirmed by Lance.\nPGP anxious to talk w/you.\nG\nTHE WHITE HOUSE\nEYES ONLY - FOR THE PRESIDENT\nFROM JIM LYNN\n1/15\nTrudy:\nNell said they had been\nholding this material\non the Exec. Salaries\nin case the P. needed\nit. I've logged out\nand held for you.\nS.\nTHE\nPAIN\nSEEN\n...\nTHE WHITE HOUSE\nWASHINGTON\nDecember 13, 1976\nMEMORANDUM FOR:\nTHE PRESIDENT\nFROM:\nMIKE DUVAL Mille\nSUBJECT:\nFollow-up on Peterson Commission\nReport.\nAttached is a letter from Pete Peterson presenting his\nfurther thoughts on his Commission's recommendations (Tab A).\nMax Friedersdorf's office has provided a copy of the House\nand Senate rules of Conduct (Tab B).\nPhil Buchen's office has summarized the rules of conduct\napplicable to the Executive Branch (Tab C). We are still\nwaiting for a copy of the rules governing the Judiciary.\nOnce it is in hand, I will prepare a summary chart for all\nthree branches.\nAttachments\nTAB A\nLehman Brothers\nIncorporated\nOne William Street\nNew-York,N.,N.1001\nPETER G. PETERSON\nCHAIRMAN OF THE BOARD\nDecember 10, 1976\nThe President\nThe White House\nWashington, D.C. 20500\nDear Mr. President:\nAs you have requested, I have given additional thought to\nthe manner in which the measures recommended for a Code of\nPublic Conduct by the Commission on Executive, Legislative and\nJudicial Salaries can be made most effective.\nMost Americans can be persuaded, I believe, to have their\npublic servants compensated for full-time work where they need\nnot depend on outside sources of income. That is essential if\nGovernment is not to be limited to the rich, or to the young and\nuntried, or to those willing to compromise themselves with polit-\nical money. Certainly, the sordid events of the past several\nyears render the time ripe for an initiative such as the one you\nare contemplating.\nYou know far better than I, however, that if the Congress\nis to support this initiative and embody it in legislation, we\nmust be sensitive to the independence of the other branches --\nthe Legislative branch, in particular -- and their anxiety to\npreserve their own prerogatives. Because of your long experi-\nence, I hesitate to suggest the tactics that might help assure\nCongressional support. But, for what it is worth, you might give\nthought to the following scenario:\n1. As an obvious first step, you would probably wish to\nmeet soon with the Congressional leaders. In the course of that\nmeeting, you could review the report of the Commission and solicit\ntheir advice as to how its recommendations could best be carried\nout. You might also consult with them as to the best means to\nassure the support of the Carter Administration both for the re-\nforms and the pay adjustments the report recommends.\n- 2 -\nMr. President\nDecember 10, 1976\nAs one way to get a visible, tangible Congressional\ncommitment to a timetable for specific action and to invite\nmaximum public discussion, you might encourage the Congressional\nleadership to have the appropriate committees of the Congress\ncomplete public hearings on these questions as soon as possible.\nSince it is clearly essential that Congress feel pub-\nlicly committed to what should be perceived as a joint initiative,\nyou might also wish to invite the leaders to express their views\nto the press at the conclusion of the meeting. In this same\nspirit, you may want to acknowledge recent statements -- for ex-\nample by Speaker O'Neill -- urging the need for a new and more\nrigorous Code of Ethics.\nI guess I am saying that a generous, bi-partisan even\nBicentennial spirit may also turn out to be the most pragmatic\napproach.\n2. Following the meeting with the Congressional leader-\nship, you might hold a separate meeting with the Chief Justice\nand other representatives of the Judiciary. Similar public com-\nmitments by the Chief Justice at a press briefing immediately\nfollowing such a meeting would be helpful.\n3. In your State of the Union message and even in the\nBudget message, you might make a strong statement of the need\nto modernize federal compensation schedules for all three\nbranches of the government, making clear that your proposals for\nadjusting those schedules are based on the assumption that\nCongress will also enact the reform measures required, considering\nthe commitments you will already have received. As to the\nnature of the \"linkage\" of reform to pay increases, we under-\nstand it may be difficult to link the reform explicitly to the\npay increase and still preserve the 30-day-option tied to your\nBudget message. However, you might make it clear that your\nsupport of the recommended pay increases is dependent on their\nenacting those reform measures and that, if the Congress does\nnot see fit to do so, you cannot regard such pay increases as\njustified. Put another way, if they do not feel they can make\na timely and comprehensive commitment to reform, you would\ncertainly understand why they would not want to permit the pay\nincreases to go through.\n- 3 -\nMr. President\nDecember 10, 1976\n4. In your conversations with the Congress, you should\nmake clear that the Commission we have recommended to develop\nappropriate codes of conduct will have only powers to recommend,\nand that the leaders of the three coordinate branches must make\nthe final decisions.\nWe would presume that the Constitutional requirements\nfor separateness of the three branches may require separate \"ap-\npropriate authorities\" to administer the new Codes of Public\nConduct for the different branches. However, I would still ad-\nvise an outside Commission of outstanding private citizens --\nsuch as our Caplin Task Force on Public Conduct -- to recommend\nprecise guidelines for a new Code. My reasons include: (1) the\nneed to maintain continuing public pressure to get first-rate\nCodes implemented on a timely and agreed schedule; (2) such a\nCommission could help insure that the overall standards of the\nCodes were kept uniformly high for each of the three branches\nand that the general principles were essentially the same -- even\nthough the Codes might differ in the specific detail for the\nthree branches.\n5. Our proposals for reform are limited, of course, to\nthose related to questions of compensation. It would be pre-\nsumptuous of us to suggest the many other areas -- such as addi-\ntional reform in campaign financing, or mandatory age, or\nseniority retirement provisions -- which might be encompassed\nin a larger program of reform that you might want to recommend.\n6. To me, it would seem wise for you to defer judgment\nfor now on public meetings to symbolize the commitment of the\nthree branches to a timely implementation of new Codes of Public\nConduct.\n7. As a body of private citizens, we realize that our\nresponsibilities include playing a continuing role of public\neducation. Over the next few weeks, I trust you will be pleased\nto see a growing number of editorials, articles, media appearances\nand perhaps even an open letter addressed to you, President-elect\nCarter, the Congress and the Judiciary urging support of the broad\nrecommendations of the report.\nWe see the Commission's proposals as forming the basis for\na major initiative on your part that could be long remembered\nwith the approval of the whole American people. History might\n- 4 -\nMr. President\nDecember 10, 1976\nrecord no finer monument to your administration than the rejuve-\nnation of public trust and confidence in our political system\nand the people who administer it.\nAll of us stand prepared to assist you in any way possible.\nWith best wishes.\nRespectfully,\nPours.\nPeter G. Peterson\nTAB B\n22\nRULES OF THE\none additional representative of each\nto transmit to the officer in charge with\n2. A Member, officer, or employee of\npress association.\nthe settlement thereof the papers on file\nthe House of Representatives shall ad-\n3. Such portion of the gallery of the\nin his office relating to such claim, or\nhere to the spirit and the letter of the\nHouse of Representatives as may be nec-\nmay loan temporarily to an officer or\nRules of the House of Representatives\nessary to accommodate reporters of news\nbureau of the executive departments any\nand to the rules of duly constituted com-\nto be disseminated by radio, television,\npapers on file in his office relating to any\nmittees thereof.\nand similar means of transmission, wish-\nmatter pending before such officer or\n3. A Member, officer, or employee of\ning to report debates and proceedings,\nbureau, taking proper receipt therefor.\nthe House of Representatives shall re-\nshall be set aside for their use, and rep-\nceive no compensation nor shall he per-\nRULE XXXVIII\nutable reporters thus engaged shall be\nmit any compensation to accrue to his\nadmitted thereto under such regulations\nBALLOT\nbeneficial interest from any source, the\nas the Speaker may from time to time\nIn all cases of ballot a majority of the\nreceipt of which would occur by virtue\nprescribe; and the supervision of such\nvotes given shall be necessary to an elec-\nor influence improperly exerted from his\ngallery, including the designation of its\ntion, and where there shall not be such\nposition in the Congress.\nemployees, shall be vested in the Execu-\na majority on the first ballot the ballots\n4. A Member, officer, or employee of\ntive Committee of the Radio and Tele-\nshall be repeated until a majority be ob-\nthe House of Representatives shall ac-\nvision Correspondents' Galleries, subject\ntained; and in all balloting blanks shall\ncept no gift of substantial value, directly\nto the direction and control of the\nbe rejected and not taken into the count\nor indirectly, from any person, organiza-\nSpeaker; and the Speaker may admit to\nin enumeration of votes or reported by\ntion, or corporation having a direct in-\nthe floor, under such regulations as he\nthe tellers.\nterest in legislation before the Congress.\nmay prescribe, one representative of the\nRULE XXXIX\n5. A Member, officer, or employee of\nNational Broadcasting Company, one\nMESSAGES\nthe House of Representatives shall ac-\nof the Columbia Broadcasting System,\nMessages received from the Senate and\ncept no honorarium for a speech, writing\none of the Mutual Broadcasting System,\nthe President of the United States, giv-\nfor publication, or other similar activity,\nand one of the American Broadcasting\ning notice of bills passed or approved,\nfrom any person, organization, or cor-\nCompany.\nshall be entered in the Journal and pub-\nporation in excess of the usual and cus-\nRULE XXXV\nlished in the Record of that day's pro-\ntomary value for such services.\nPAY OF WITNESSES\nceedings.\n6. A Member of the House of Repre-\nThe rule for paying witnesses sub-\nRULE XL\nentatives shall keep his campaign funds\nseparate from his personal funds. Unless\npenaed to appear before the House or\nEXECUTIVE COMMUNICATIONS\nspecifically provided by law, he shall\nany of its committees shall be as fol-\nEstimates, or appropriations and all\nconvert no campaign funds to personal\nlows: For each day a witness shall at-\nother communications from the execu-\nuse in excess of reimbursement for legit-\ntend, the sum of twenty dollars; and\ntive departments, intended for the con-\nimate and verifiable prior campaign ex-\nactual expenses of travel in coming to or\nsideration of any committees of the\npenditures and he shall expend no funds\ngoing from the place of examination,\nHouse, shall be addressed to the Speaker,\nfrom his campaign account not attribut-\nnot to exceed twelve cents per mile; but\nand by him referred as provided by clause\nable to bona fide campaign purposes.\nnothing shall be paid for travel when\n2 of Rule XXIV.\nthe witness has been summoned at the\n7. A Member of the House of Repre-\nplace of examination.\nRULE XLI\nsentatives shall treat as campaign con-\ntributions all proceeds from testimonial\nRULE XXXVI\nQUALIFICATIONS OF OFFICERS AND\ndinners or other fund raising events if\nEMPLOYEES\nPAPERS\nthe sponsors of such affairs do not give\nNo person shall be an officer of the\nclear notice in advance to the donors or\n1. The clerks of the several commit-\ntees of the House shall, within three\nHouse, or continue in its employment,\nparticipants that the proceeds are in-\ndays after the final adjournment of a\nwho shall be an agent for the prosecution\ntended for other purposes.\nCongress, deliver to the Clerk of the\nof any claim against the Government, or\n8. A Member of the House of Repre-\nHouse all bills, joint resolutions, peti-\nbe interested in such claim otherwise\nsentatives shall retain no one from his\ntions, and other papers referred to the\nthan as an original claimant; and it shall\nclerk hire allowance who does not per-\ncommittee, together with all evidence\nbe the duty of the Committee on House\nform duties commensurate with the\ntaken by such committee under the order\nAdministration to inquire into and report\ncompensation he receives.\nof the House during the said Congress\nto the House any violation of this rule.\nAs used in this Code of Official Con-\nand not reported to the House; and in\nRULE XLII\nduct of the House of Representatives-\nthe event of the failure or neglect of any\n(a) the terms \"Member\" and \"Member\nclerk of a committee to comply with this\nGENERAL PROVISIONS\nof the House of Representatives\" in-\nrule the Clerk of the House shall, within\nThe rules of parliamentary practice\nclude the Resident Commissioner from\nthree days thereafter, take into his keep-\ncomprised in Jefferson's Manual and the\nPuerto Rico and each Delegate to the\ning all such papers and testimony.\nprovisions of the Legislative Reorganiza-\nHouse and (b) the term \"officer or em-\n2. At the close of each Congress the\ntion Act of 1946, as amended, shall gov-\nployee of the House of Representatives\"\nClerk of the House shall obtain all non-\nern the House in all cases to which they\nmeans any individual whose compensa-\ncurrent records of the House and each\nare applicable, and in which they are\ntion is disbursed by the Clerk of the\ncommittee thereof and transfer them to\nnot inconsistent with the standing rules\nHouse of Representatives.\nthe General Services Administration for\nand orders of the House and joint rules\n9. A Member, officer or employee of\npreservation subject to the order of the\nof the Senate and House of Representa-\nthe House of Representatives shall not\nHouse. In making the transfer, the Clerk\ntives.\ndischarge or refuse to hire any individ-\nmay act jointly with the Secretary of the\nRULE XLIII\nual or otherwise discriminate against\nSenate.\nCODE OF OFFICIAL CONDUCT\nany individual with respect to compen-\nRULE XXXVII\nThere is hereby established by and for\nsation, terms, conditions, or privileges\nWITHDRAWAL OF PAPERS\nthe House of Representatives the fol-\nof employment. because of such individ-\nNo memorial or other paper presented\nlowing code of conduct, to be known as\nual's race, color, religion, sex, or national\nto the House shall be withdrawn from\nthe \"Code of Official Conduct\";\norigin. see para. #10 attached\nits files without its leave, and if with-\nRULE XLIV\n1. A Member, officer, or employee of\ndrawn therefrom certified copies thereof\nthe House of Representatives shall con-\nFINANCIAL DISCLOSURE\nshall be left in the office of the Clerk;\nduct himself at all times in a manner\nMembers. officers, principal assistants\nbut when an act may pass for the settle-\nwhich shall reflect creditably on the\nto Members and officers, and professional\nment of a claim, the Clerk is authorized\nHouse of Representatives.\nstaff members of committees shall not\nRule XLIII Paragraph 10 added in 94th Congress\n10. A Member of the House of Representatives who has been\nconvicted by a Court of Record. for the commission of a crime\nfor which a sentence of two or more years imprisonment may\nbe imposed should refrain from participation in the business\nof each committee of which he is a member and should refrain\nfrom voting on any question at a meeting of the House, or\nof the Committee of the Whole House unless or until judicial\nor executive proceedings result in the reinstatement of the\npresumption of his innocence or until he is re-elected to\nthe House after the date of such conviction.\nHOUSE OF REPRESENTATIVES\nR 23\nlater than April 30, 1969, and by April 30\nment) exceeding $1,000 in each instance.\n2 and 3 of part A, and the amount of\nof each year thereafter, file with the\n(d) Honorariums from a single source\nindebtedness owed to each creditor listed\nCommittee on Standards of Official Con-\naggregating $300 or more.\nunder paragraph 4 of part A.\nduct a report disclosing certain financial\n4. List each creditor to whom the per-\nThe information filed under this part\ninterests as provided in this rule. The\nson reporting was indebted for a period\nB shall be sealed by the person filing and\ninterest of a spouse or any other party,\nof ninety consecutive days or more dur-\nshall remain sealed unless the Commit-\nif constructively controlled by the person\ning the preceding calendar year in an\ntee on Standards of Official Conduct,\nreporting, shall be considered to be the\naggregate amount in excess of $10,000,\npursuant to its investigative authority,\nsame as the interest of the person report-\nexcluding any indebtedness specifically\ndetermines by a vote of not less than\ning. The report shall be in two parts as\nsecured by the pledge of assets of the\nseven members of the committee that the\nfollows:\nperson reporting of appropriate value.\nexamination of such information is es-\nPART A\nCampaign receipts shall not be in-\nsential in an official investigation by the\n1. List the name, instrument of owner-\ncluded in this report.\ncommittee and promptly notifies the\nship, and any position of management\nInformation filed under part A shall\nMembers concerned of any such determi-\nheld in any business entity doing a sub-\nbe maintained by the committee on\nnation. The committee may, by a vote\nstantial business with the Federal Gov-\nStandards of Official Conduct and made\nof not less than seven members of the\nernment or subject to Federal regulatory\navailable at reasonable hours to respon-\ncommittee, make public any portion of\nagencies, in which the ownership is in\nsible public inquiry, subject to such reg-\nthe information unsealed by the commit-\nexcess of $5,000 fair market value as of\nulations as the committee may prescribe\ntee under the preceding sentence and\nthe date of filing or from which income\nincluding, but not limited to, regulations\nwhich the committee deems to be in the\nor $1,000 or more was derived during the\nrequiring identification by name, occu-\npublic interest.\npreceding calendar year. Do not list any\npation, address, and telephone number\nAny person required to file a report\ntime or demand deposit in a financial in-\nof each person examining information\nunder this rule who has no interests\nstitution, or any debt instrument having\nfiled under part A, and the reason for\ncovered by any of the provisions of this\na fixed yield unless it is convertible to an\neach such inquiry.\nrule shall file a report, under part A only\nequity instrument.\nThe committee shall promptly notify\nof this rule, as stating.\n2. List the name, address, and type of\neach person required to file a report un-\nIn any case in which a person required\npractice of any professional organization\nder this rule of each instance of an ex-\nto file a sealed report under part B of\nin which the person reporting, or his\namination of his report. The committee\nthis rule is no longer required to file such\nspouse, is an officer, director, or partner,\nshall also promptly notify a Member of\na report, the committee shall return to\nor serves in any advisory capacity, from\neach examination of the reports filed by\nsuch person, or his legal representative,\nwhich income of $1,000 or more was de-\nhis principal assistants and of each ex-\nall sealed reports filed by such person\nrived during the preceding calendar year.\namination of the reports of professional\nunder part B and remaining in the pos-\n3. List the source of each of the fol-\nstaff members of committees who are\nsession of the committee.\nlowing items received during the preced-\nresponsible to such Member.\nAs used in this rule-(1) the term\ning calendar year: (a) Any income for\n\"Members\" includes the Resident Com-\nPART B\nservices rendered (other than from the\nmissioner from Puerto Rico and each\nUnited States Government) exceeding\n1. List the fair market value (as of the\nDelegate to the House; and (2) the\n$5,000. (b) Any capital gain from a\ndate of filing) of each item listed under\nterm \"committees\" includes any com-\nsingle source exceeding $5,000, other\nparagraph 1 of part A and the income\nmittee or subcommittee of the House\nthan from the sale of a residence oc-\nderived therefrom during the preceding\nof Representatives and any joint com-\ncupied by the person reporting. (c)\ncalendar year.\nmittee of Congress, the expenses of\nReimbursement for expenditures (other\n2. List the amount of income derived\nwhich are paid from the contingent fund\nthan from the United States Govern-\nfrom each item listed under paragraphs\nof the House of Representatives.\nSTANDING ORDERS OF THE SENATE\n[79.5]\nhe\nof the contingent fund of the Senate for the expenses of the\nen,\nCommission the sum of $15,000 each fiscal year, to be dis-\nen-\nbursed by the Secretary of the Senate on vouchers signed\nies\nby the Chairman or Vice Chairman of the Commission:\nthe\nProvided, That no payment shall be made from such appro-\ngs,\npriation as salary.\n(S. Jour. 836, 90-2, Oct. 1, 1968.\nthe\nCOMMISSION ON ART AND ANTIQUITIES OF THE UNITED STATES [79.5]\nSENATE-ADDITIONAL AUTHORITY\nthe\nand\nResolved, That (a) the Commission on Art and Antiquities\nion\nof the United States Senate, in addition to any authority\nber-\nconferred upon it by Senate Resolution 382, Ninetieth\nical\nCongress, agreed to October 1, 1968, is authorized to ac-\nbe-\nquire any work of art, historical object, document or ma-\n1 as\nterial relating to historical matters, or exhibit for placement\nion,\nor exhibition in the Senate wing of the Capitol, the Senate\nbitol\nOffice Buildings, or in rooms, spaces, or corridors thereof.\n(b) This resolution shall be effective as of March 1, 1971.\nthe\n[S. Jour. 232-233, 92-1, Apr. 1, 1971.\nr on\nSTANDARDS OF CONDUCT FOR MEMBERS OF THE SENATE AND [79.6]\nofar\nOFFICERS AND EMPLOYEES OF THE SENATE\npitol\nResolved, It is declared to be the policy of the Senate\nthat-\nit at\n(a) The ideal concept of public office, expressed by the\nent a\nwords, \"A public office is a public trust\", signifies that the\ncur-\nofficer has been entrusted with public power by the people;\nenate\nthat the officer holds this power in trust to be used only for\ntion,\ntheir benefit and never for the benefit of himself or of a few;\nstory.\nand that the officer must never conduct his own affairs so as\nd out\nto infringe on the public interest. All official conduct of\n121\n37-195 O 75 9\n[79.7]\nSTANDING ORDERS OF THE SENATE\nMembers of the Senate should be guided by this paramount\nAr\nconcept of public office.\nthe\n(b) These rules, as the written expression of certain\nstandards of conduct, complement the body of unwritten\nbut generally accepted standards that continue to apply to\nthe Senate.\nSEC. 2. The Standing Rules of the Senate are amended\nby adding at the end thereof the following new rules:\n*\n(1)\n*\n*\n*\n[S. Jour. 247, 90-2, Mar. 22, 1968.\nDE\n[79.7] APPOINTMENT FOR THE SENATE OF PAGES, ELEVATOR OPERA-\n:\nTORS, POST OFFICE EMPLOYEES, OR CAPITOL POLICEMEN\n1\nWITHOUT DISCRIMINATION ON ACCOUNT OF SEX\nI\nResolved, That no individual shall be denied appointment\n1\nas a Senate page, elevator operator, or post office employee,\nor as a Capitol policeman whose compensation is disbursed\nby the Secretary of the Senate, solely on the basis of sex.\nIn the case of Senate pages, however, until such time as the\nfireproof building containing dormitory and classroom\nfacilities, as authorized by section 492 of the Legislative\nReorganization Act of 1970, is constructed and the pages\nare living under appropriate supervision in such building,\nthe Sergeant at Arms of the Senate shall promulgate and\nhave in effect regulations for the appointment of pages of\nthe Senate requiring that no female page shall be appointed\nby a Senator until the Senator files with the Sergeant at\n1 This resolution added four new rules to the Standing Rules of the Senate, which are\nS\nnumbered XLI, XLII, XLIII, and XLIV and are found as Senate Manual sections [41],\n[42], [43], and [44]. respectively.\nSen\nto i\n122\nSTANDING RULES OF THE SENATE\n[40]\nduring the\nexcept original treaties transmitted to the Senate by the\nd upon at\nPresident of the United States, and finally acted upon by\nde to the\nthe Senate, shall be delivered from the office of the Secretary\nadjourn or\nwithout an order of the Senate for that purpose.\nominations\nRULE XL\n[40]\nof taking\nthe Secre-\nSUSPENSION AND AMENDMENT OF THE RULES\nconsidered\nNo motion to suspend, modify, or amend any rule, or\nte by the\nany part thereof, shall be in order, except on one day's\nnotice in writing, specifying precisely the rule or part pro-\nposed to be suspended, modified, or amended, and the\nthe printer\npurpose thereof. Any rule may be suspended without\nthe proceed-\nons recalled,\nnotice by the unanimous consent of the Senate, except as\n1885.)\notherwise provided in clause 1, Rule XII.\nRULE XLI 1\n[41]\nrters with a\nay on which\nOUTSIDE BUSINESS OR PROFESSIONAL ACTIVITY OR EMPLOY-\nd rejections.\nMENT BY OFFICERS OR EMPLOYEES\n1. No officer or employee whose salary is paid by the [41.1]\nto the public\nd on the day\nSenate may engage in any business or professional activity\n3 ordered by\nor employment for compensation unless-\n, 2, 1894.)\n(a) the activity or employment is not inconsistent\nnor in conflict with the conscientious performance of his\nofficial duties; and\nECORDS OF\n(b) he has reported in writing when this rule takes\neffect or when his office or employment starts and on\nm time to\nthe 15th day of May in each year thereafter the nature\nript of the\nof any personal service activity or employment to his\ner extract\nsupervisor. The supervisor shall then, in the discharge\nthe Secre-\n1 S. Jour. 247, 90-2, Mar. 22, 1968.\nno paper,\n65\n[41.2]\nSTANDING RULES OF THE SENATE\nof his duties, take such action as he considers necessary\nMajori\nfor the avoidance of conflict of interest or interference\nand\nwith duties to the Senate.\n(i) tl\n[41.2]\n2. For the purpose of this rule-\nSecreta\n(a) a Senator or the Vice President is the supervisor\nMinori\nof his administrative, clerical, or other assistants;\n3. This ri\n(b) a Senator who is the chairman of a committee\nis the supervisor of the professional, clerical, or other\nassistants to the committee except that minority staff\nmembers shall be under the supervision of the ranking\n1. A Sen\nminority Senator on the committee;\nmade know\n(c) a Senator who is a chairman of a subcommittee\nor who has\nwhich has its own staff and financial authorization is the\ntion, or on\nsupervisor of the professional, clerical, or other assistants\nor petition\nto the subcommittee except that minority staff members\ndirectly or\nshall be under the supervision of the ranking minority\nnomination\nSenator on the subcommittee;\nof United S\n(d) the President pro tempore is the supervisor of the\n(a) a\nSecretary of the Senate, Sergeant at Arms and Door-\nin his }\nkeeper, the Chaplain, and the employees of the Office of\nthe Legislative Counsel;\nfui\n(e) the Secretary of the Senate is the supervisor of\nwe\nthe employees of his office;\n(f) the Sergeant at Arms and Doorkeeper is the\ning\nsupervisor of the employees of his office;\nfur\n(g) the Majority and Minority Leaders and the Ma-\n(b) :\njority and Minority Whips are the supervisors of the\nSenato\nresearch, clerical, or other assistants assigned to their\nthe so\nrespective offices;\nreceive\n(h) the Majority Leader is the supervisor of the\n1 8. Jour. 247, 90\nSecretary for the Majority. The Secretary for the\n66\nSTANDING RULES OF THE SENATE\n[41.3]\nlecessary\nMajority is the supervisor of the employees of his office;\nerference\nand\n(i) the Minority Leader is the supervisor of the\nSecretary for the Minority. The Secretary for the\nipervisor\nMinority is the supervisor of the employees of his office.\n3. This rule shall take effect ninety days after adoption.\n[41.3]\nmmittee\nRULE XLII 1\n[42]\nor\nother\nstaff\nCONTRIBUTIONS\nranking\n1. A Senator or person who has declared or otherwise [42.1]\nmade known his intention to seek nomination or election,\nommittee\nor who has filed papers or petitions for nomination or elec-\nis\nthe\ntion, or on whose behalf a declaration or nominating paper\nassistants\nor petition has been made or filed, or who has otherwise,\nmembers\ndirectly or indirectly, manifested his intention to seek\nminority\nnomination or election, pursuant to State law, to the office\nof United States Senator, may accept a contribution from-\nof\nthe\n(a) a fundraising event organized and held primarily\nDoor-\nin his behalf, provided-\nOffice\nof\n(1) he has expressly given his approval of the\nfundraising event to the sponsors before any funds\nervisor\nof\nwere raised; and\n(2) he receives a complete and accurate account-\nis\nthe\ning of the source, amounts, and disposition of the\nfunds raised; or\nthe\nMa-\n(b) an individual or an organization, provided the\nof\nthe\nSenator makes a complete and accurate accounting of\nto\ntheir\nthe source, amount, and disposition of the funds\nreceived; or\nof\nthe\n1 S. Jour. 247, 90-2, Mar. 22, 1968.\nfor\nthe\n67\n[42.2]\nSTANDING RULES OF THE SENATE\n(c) his political party when such contributions were\nfrom a fundraising event sponsored by his party,\nPOLI\nwithout giving his express approval for such fund-\n1. I\nraising event when such fundraising event is for the\nSenate\npurpose of providing contributions for candidates of\nany ft\nhis party and such contributions are reported by the\ntion f\nSenator or candidate for Senator as provided in\nMemt\nparagraph (b).\nprohit\n[42.2]\n2. The Senator may use the contribution only to influence\nwho h\nhis nomination for election, or his election, and shall not use,\nthe fu\ndirectly or indirectly, any part of any contribution for any\nand w\nother purpose, except as otherwise provided herein.\nannun\n[42.3]\n3. Nothing in this rule shall preclude the use of contri-\nfiled \"\nbutions to defray expenses for travel to and from each\nSenate\nSenator's home State; for printing and other expenses in\ninspec\nconnection with the mailing of speeches, newsletters, and\n2. J\nreports to a Senator's constituents; for expenses of radio,\ntelevision, and news media methods of reporting to a\nSenator's constituents; for telephone, telegraph, postage, and\nstationery expenses in excess of allowance; and for newspaper\nsubscriptions from his home State.\n1. E\n[42.4]\n4. All gifts in the aggregate amount or value of $50 or\nmade\nmore received by a Senator from any single source during a\nwho h\nyear, except a gift from his spouse, child, or parent, and\nor on\nexcept a contribution under sections 1 and 2, shall be reported\npetitic\nunder rule XLIV.\nor ind\n5. This rule shall take effect ninety days after adoption.\nor ele\n[42.5]\nStates\nwho i:\n'8. Jou\n68\nSTANDING RULES OF THE SENATE\n[43]\nwere\nRULE XLIII 1\n[43]\nparty,\nPOLITICAL FUND ACTIVITY BY OFFICERS AND EMPLOYEES\nfund-\n1. No officer or employee whose salary is paid by the [43.1]\nor\nthe\nSenate may receive, solicit, be the custodian of, or distribute\nof\nany funds in connection with any campaign for the nomina-\nby\nthe\ntion for election, or the election of any individual to be a\nin\nMember of the Senate or to any other Federal office. This\nprohibition does not apply to any assistant to a Senator\nfluence\nwho has been designated by that Senator to perform any of\nuse,\nthe functions described in the first sentence of this paragraph\nfor\nany\nand who is compensated at a rate in excess of $10,000 per\nannum if such designation has been made in writing and\ncontri-\nfiled with the Secretary of the Senate. The Secretary of the\neach\nSenate shall make the designation available for public\nin\ninspection.\nand\n2. This rule shall take effect sixty days after adoption.\n[43.2]\nradio,\nto\na\nRULE XLIV 1\n[44]\nand\nDISCLOSURE OF FINANCIAL INTERESTS\nvspaper\n1. Each Senator or person who has declared or otherwise [44.1]\n$50\nor\nmade known his intention to seek nomination or election, or\nuring\na\nwho has filed papers or petitions for nomination or election,\nand\nor on whose behalf a declaration or nominating paper or\neported\npetition has been made or filed, or who has otherwise, directly\nor indirectly, manifested his intention to seek nomination\nption.\nor election, pursuant to State law, to the office of United\nStates Senator, and each officer or employee of the Senate\nwho is compensated at a rate in excess of $15,000 a year,\n18. Jour. 247, 90-2, Mar. 22, 1968.\n69\n[44.1]\nSTANDING RULES OF THE SENATE\nshall file with the Comptroller General of the United States,\nin a sealed envelope marked \"Confidential Personal Financial\nDisclosure of\n(Name)\n\", before the\n15th day of May in each year, the following reports of his\npersonal financial interests:\n(a) a copy of the returns of taxes, declarations, state-\nments, or other documents which he, or he and his spouse\njointly, made for the preceding year in compliance with\nthe income tax provisions of the Internal Revenue Code;\n(b) the amount or value and source of each fee or com-\npensation of $1,000 or more received by him during the\nfil\npreceding year from a client;\ntr\n(c) the name and address of each business or profes-\nke\nsional corporation, firm, or enterprise in which he was\nSe\nan officer, director, partner, proprietor, or employee who\nre\nreceived compensation during the preceding year and\ntr\nthe amount of such compensation;\nan\n(d) the identity of each interest in real or personal\nG\nproperty having a value of $10,000 or more which he\nta\nowned at any time during the preceding year;\nre\n(e) the identity of each trust or other fiduciary rela-\nbe\ntion in which he held a beneficial interest having a value\nad\nof $10,000 or more, and the identity if known of each\nan\ninterest of the trust or other fiduciary relation in real or\nby\npersonal property in which the Senator, officer, or\nco\nemployee held a beneficial interest having a value of\nCO\n$10,000 or more, at any time during the preceding year.\nth\nco\n70\nSTANDING RULES OF THE SENATE\n[44.2]\ntates,\nIf he cannot obtain the identity of the fiduciary interests,\nancial\nthe Senator, officer, or employee shall request the\nfiduciary to report that information to the Comptroller\nthe\nGeneral in the same manner that reports are filed under\nhis\nthis rule;\nof\n(f) the identity of each liability of $5,000 or more\nowed by him, or by him and his spouse jointly, at any\nstate-\ntime during the preceding year; and\npouse\n(g) the source and value of all gifts in the aggregate\nwith\namount or value of $50 or more from any single source\nCode;\nreceived by him during the preceding year.\ncom-\n2. Except as otherwise provided by this section, all papers [44.2]\nthe\nfiled under section 1 of this rule shall be kept by the Comp-\ntroller General for not less than seven years, and while SO\nprofes-\nkept shall remain sealed. Upon receipt of a resolution of the\nwas\nSelect Committee on Standards and Conduct, adopted by a\nwho\nrecorded majority vote of the full committee, requesting the\nand\ntransmission to the committee of any of the reports filed by\nany individual under section 1 of this rule, the Comptroller\nersonal\nGeneral shall transmit to the committee the envelopes con-\nhe\ntaining such reports. Within a reasonable time after such\nrecorded vote has been taken, the individual concerned shall\nrela-\nbe informed of the vote to examine and audit, and shall be\nvalue\nadvised of the nature and scope of such examination. When\nof\neach\nany sealed envelope containing any such report is received\nreal\nor\nby the committee, such envelope may be opened and the\nor\ncontents thereof may be examined only by members of the\nof\ncommittee in executive session. If, upon such examination,\nyear.\nthe committee determines that further consideration by the\ncommittee is warranted and is within the jurisdiction of the\n71\n[44.3]\nSTANDING RULES OF THE SENATE\ncommittee, it may make the contents of any such envelope\navailable for any use by any member of the committee, or\nany member of the staff of the committee, which is required\nfor the discharge of his official duties. The committee may\nreceive the papers as evidence, after giving to the individual\nconcerned due notice and opportunity for hearing in a closed\nsession. The Comptroller General shall report to the Select\nCommittee on Standards and Conduct not later than the\n1st day of June in each year the names of Senators, officers,\nand employees who have filed a report. Any paper which\nhas been filed with the Comptroller General for longer than\nseven years, in accordance with the provisions of this section,\nshall be returned to the individual concerned or his legal\nrepresentative. In the event of the death or termination of\nservice of a Member of the Senate, an officer or employee,\nsuch papers shall be returned unopened to such individual,\nor to the surviving spouse or legal representative of such\nindividual within one year of such death or termination\nof service.\n[44.3]\n3. Each Senator or person who has declared or other-\nwise made known his intention to seek nomination or elec-\ntion, or who has filed papers or petitions for nomination or\nelection, or on whose behalf a declaration or nominating paper\nor petition has been made or filed, or who has otherwise, di-\nrectly or indirectly, manifested his intention to seek nomina-\ntion or election, pursuant to State law, to the office of United\nStates Senator, and each officer or employee of the Senate who\nis compensated at a rate in excess of $15,000 a year, shall file\nwith the Secretary of the Senate, before the 15th day of May\nin each year, the following reports of his personal financial\ninterests:\n72\nSTANDING RULES OF THE SENATE\n[44.4]\n(a) the accounting required by rule XLII for all\ncontributions received by him during the preceding year,\nexcept that contributions in the aggregate amount or\nvalue of less than $50 received from any single source\nduring the reporting period may be totaled without\nfurther itemization; and\n(b) the amount or value and source of each hono-\nthe\nrarium of $300 or more received by him during the pre-\nceding year.\n4. All papers filed under section 3 of this rule shall be kept [44.4]\nby the Secretary of the Senate for not less than three years\nand shall be made available promptly for public inspection\nand copying.\nof\n5. This rule shall take effect on July 1, 1968. No reports [44.5]\nyee,\nshall be filed for any period before office or employment was\nlual,\nheld with the Senate, or during a period of office or employ-\nsuch\nment with the Senate of less than ninety days in a year;\nexcept that the Senator, or officer or employee of the Senate,\nmay file a copy of the return of taxes for the year 1968, or\nther-\na report of substantially equivalent information for only the\nelec-\neffective part of the year 1968.\nor\npaper\ndi-\nmina-\nUnited\nwho\nfile\nMay\nnancial\n73\n37-195 O 75 5\nTAB C\nSTANDARDS OF CONDUCT APPLICABLE\nTO THE EXECUTIVE BRANCH\nCertain legal requirements governing the standards\nof conduct and potential conflicts of interest are\napplicable to each member of the Executive Branch.\nAdditionally, all employees paid at a level equivalent\nto GS 13 and above, including consultants, are required\nto complete and file certain forms calling for\nemployment and financial information.\n(a) Authorities. Each officer and employee of\nthe Executive Branch is subject to regulations\npromulgated by his agency under the authority\nof Executive Order 11222 (May 8, 1965)\ngoverning his or her conduct. Additionally,\ncertain types of conduct are proscribed by\nthe federal conflict of interest statute\n(18 U.S.C. 201 et seq.).\n(b) Conflicts in General. A \"conflict of\ninterest\" refers to any situation in which\na government official has an actual or\napparent personal interest in the outcome\nof a matter which he or she is in a position\nto influence through decision, recommendation,\nadvice or other formal or informal action.\nA violation of law does not require an\nintent to favor one's personal interest,\nand cannot be overcome by a showing of the\nabsence of such an intent. Participation,\nby itself, in a matter in which one has\nan interest is unlawful.\n(c) Other Constraints. Set forth below are a\nnumber of illustrations of prohibitive\nconduct:\nRegulatory Agencies. Executive Branch\npersonnel are generally prohibited\nfrom making contacts with regulatory\nagencies regarding matters under\nadjudication or within the rule-\nmaking process. Moreover, any\ncontact with such agencies normally\nrequires clearance by an official\nat the policy-making level.\n-2-\nLobbying. If carried on with appropriated\nfunds, lobbying is expressly prohibited\nby law.\nPolitical Activity. Political activity\nby Executive Branch personnel is subject\nto numerous criminal and civil restrictions.\nMisuse of Information. Disclosure of\nclassified or other confidential information\nis, of course, prohibited. Additionally,\nExecutive Branch personnel must avoid\nthe fact or appearance of using information\nobtained in the course of one's official\nduties for private gain.\nGifts. Receipt of gifts, payment of\ntravel, lodging, entertainment and other\nexpenses, or receipt of speaking\nhonoraria are generally prohibited.\nAppearance of Impropriety. Executive\nBranch personnel are directed to be\never sensitive to avoid the appearance\nof acting on behalf of some private\ninterest or of a conflict or other\nimpropriety which can be fully as\ndamaging as the real thing.\n(d) Objectives. As a general statement, it might\nbe said that the statutes and regulations which\nare applicable to personnel within the Executive\nBranch are directed to insure the achievement\nof the following objectives:\nThe fair, impartial and equal treatment\nof those dealing with the government;\nThe assurance that government decisions\nwill not be influenced by an employee's\nprivate interests;\nThe maintenance of public confidence in\nthe integrity of government operations;\nThe prevention of use of public office\nfor private gain; and\nThe prevention of any impediment to the\nefficiency and economy of government\nbusiness.\nTHE WHITE HOUSE\nWASHINGTON\nDecember 13, 1976\nMEMORANDUM FOR:\nTHE PRESIDENT\nFROM:\nMIKE DUVAL Wille\nSUBJECT:\nFollow-up on Peterson Commission\nReport.\nAttached is a letter from Pete Peterson presenting his\nfurther thoughts on his Commission's recommendations (Tab A).\nMax Friedersdorf's office has provided a copy of the House\nand Senate rules of Conduct (Tab B).\nPhil Buchen's office has summarized the rules of conduct\napplicable to the Executive Branch (Tab C). We are still\nwaiting for a copy of the rules governing the Judiciary.\nOnce it is in hand, I will prepare a summary chart for all\nthree branches.\nAttachments\nLehmanBrothers\nIncorporated\nOne Milliam Street\nNew-York,N.,N.1001\nPETER G. PETERSON\nCHAIRMAN OF THE BOARD\nDecember 10, 1976\nThe President\nThe White House\nWashington, D.C. 20500\nDear Mr. President:\nAs you have requested, I have given additional thought to\nthe manner in which the measures recommended for a Code of\nPublic Conduct by the Commission on Executive, Legislative and\nJudicial Salaries can be made most effective.\nMost Americans can be persuaded, I believe, to have their\npublic servants compensated for full-time work where they need\nnot depend on outside sources of income. That is essential if\nGovernment is not to be limited to the rich, or to the young and\nuntried, or to those willing to compromise themselves with polit-\nical money. Certainly, the sordid events of the past several\nyears render the time ripe for an initiative such as the one you\nare contemplating.\nYou know far better than I, however, that if the Congress\nis to support this initiative and embody it in legislation, we\nmust be sensitive to the independence of the other branches --\nthe Legislative branch, in particular -- and their anxiety to\npreserve their own prerogatives. Because of your long experi-\nence, I hesitate to suggest the tactics that might help assure\nCongressional support. But, for what it is worth, you might give\nthought to the following scenario:\n1. As an obvious first step, you would probably wish to\nmeet soon with the Congressional leaders. In the course of that\nmeeting, you could review the report of the Commission and solicit\ntheir advice as to how its recommendations could best be carried\nout. You might also consult with them as to the best means to\nassure the support of the Carter Administration both for the re-\nforms and the pay adjustments the report recommends.\nTHE WHITE HOUSE\nWASHINGTON\nDecember 13, 1976\nMEMORANDUM FOR:\nTHE PRESIDENT\nFROM:\nMIKE DUVAL Wille\nSUBJECT:\nFollow-up on Peterson Commission\nReport.\nAttached is a letter from Pete Peterson presenting his\nfurther thoughts on his Commission's recommendations (Tab A).\nMax Friedersdorf's office has provided a copy of the House\nand Senate rules of Conduct (Tab B).\nPhil Buchen's office has summarized the rules of conduct\napplicable to the Executive Branch (Tab C). We are still\nwaiting for a copy of the rules governing the Judiciary.\nOnce it is in hand, I will prepare a summary chart for all\nthree branches.\nAttachments\nLehman Brothers\nIncorporated\nOne Milliam Street\nNew-York.,N.10001\nPETER G. PETERSON\nCHAIRMAN OF THE BOARD\nDecember 10, 1976\nThe President\nThe White House\nWashington, D.C. 20500\nDear Mr. President:\nAs you have requested, I have given additional thought to\nthe manner in which the measures recommended for a Code of\nPublic Conduct by the Commission on Executive, Legislative and\nJudicial Salaries can be made most effective.\nMost Americans can be persuaded, I believe, to have their\npublic servants compensated for full-time work where they need\nnot depend on outside sources of income. That is essential if\nGovernment is not to be limited to the rich, or to the young and\nuntried, or to those willing to compromise themselves with polit-\nical money. Certainly, the sordid events of the past several\nyears render the time ripe for an initiative such as the one you\nare contemplating.\nYou know far better than I, however, that if the Congress\nis to support this initiative and embody it in legislation, we\nmust be sensitive to the independence of the other branches --\nthe Legislative branch, in particular -- and their anxiety to\npreserve their own prerogatives. Because of your long experi-\nence, I hesitate to suggest the tactics that might help assure\nCongressional support. But, for what it is worth, you might give\nthought to the following scenario:\n1. As an obvious first step, you would probably wish to\nmeet soon with the Congressional leaders. In the course of that\nmeeting, you could review the report of the Commission and solicit\ntheir advice as to how its recommendations could best be carried\nout. You might also consult with them as to the best means to\nassure the support of the Carter Administration both for the re-\nforms and the pay adjustments the report recommends.\n- 2 -\nMr. President\nDecember 10, 1976\nAs one way to get a visible, tangible Congressional\ncommitment to a timetable for specific action and to invite\nmaximum public discussion, you might encourage the Congressional\nleadership to have the appropriate committees of the Congress\ncomplete public hearings on these questions as soon as possible.\nSince it is clearly essential that Congress feel pub-\nlicly committed to what should be perceived as a joint initiative,\nyou might also wish to invite the leaders to express their views\nto the press at the conclusion of the meeting. In this same\nspirit, you may want to acknowledge recent statements -- for ex-\nample by Speaker O'Neill -- urging the need for a new and more\nrigorous Code of Ethics.\nI guess I am saying that a generous, bi-partisan even\nBicentennial spirit may also turn out to be the most pragmatic\napproach.\n2. Following the meeting with the Congressional leader-\nship, you might hold a separate meeting with the Chief Justice\nand other representatives of the Judiciary. Similar public com-\nmitments by the Chief Justice at a press briefing immediately\nfollowing such a meeting would be helpful.\n3. In your State of the Union message and even in the\nBudget message, you might make a strong statement of the need\nto modernize federal compensation schedules for all three\nbranches of the government, making clear that your proposals for\nadjusting those schedules are based on the assumption that\nCongress will also enact the reform measures required, considering\nthe commitments you will already have received. As to the\nnature of the \"linkage\" of reform to pay increases, we under-\nstand it may be difficult to link the reform explicitly to the\npay increase and still preserve the 30-day-option tied to your\nBudget message. However, you might make it clear that your\nsupport of the recommended pay increases is dependent on their\nenacting those reform measures and that, if the Congress does\nnot see fit to do so, you cannot regard such pay increases as\njustified. Put another way, if they do not feel they can make\na timely and comprehensive commitment to reform, you would\ncertainly understand why they would not want to permit the pay\nincreases to go through.\n- 3 -\nMr. President\nDecember 10, 1976\n4. In your conversations with the Congress, you should\nmake clear that the Commission we have recommended to develop\nappropriate codes of conduct will have only powers to recommend,\nand that the leaders of the three coordinate branches must make\nthe final decisions.\nWe would presume that the Constitutional requirements\nfor separateness of the three branches may require separate \"ap-\npropriate authorities\" to administer the new Codes of Public\nConduct for the different branches. However, I would still ad-\nvise an outside Commission of outstanding private citizens --\nsuch as our Caplin Task Force on Public Conduct -- to recommend\nprecise guidelines for a new Code. My reasons include: (1) the\nneed to maintain continuing public pressure to get first-rate\nCodes implemented on a timely and agreed schedule; (2) such a\nCommission could help insure that the overall standards of the\nCodes were kept uniformly high for each of the three branches\nand that the general principles were essentially the same -- even\nthough the Codes might differ in the specific detail for the\nthree branches.\n5. Our proposals for reform are limited, of course, to\nthose related to questions of compensation. It would be pre-\nsumptuous of us to suggest the many other areas -- such as addi-\ntional reform in campaign financing, or mandatory age, or\nseniority retirement provisions -- which might be encompassed\nin a larger program of reform that you might want to recommend.\n6. To me, it would seem wise for you to defer judgment\nfor now on public meetings to symbolize the commitment of the\nthree branches to a timely implementation of new Codes of Public\nConduct.\n7. As a body of private citizens, we realize that our\nresponsibilities include playing a continuing role of public\neducation. Over the next few weeks, I trust you will be pleased\nto see a growing number of editorials, articles, media appearances\nand perhaps even an open letter addressed to you, President-elect\nCarter, the Congress and the Judiciary urging support of the broad\nrecommendations of the report.\nWe see the Commission's proposals as forming the basis for\na major initiative on your part that could be long remembered\nwith the approval of the whole American people. History might\n- 4 -\nMr. President\nDecember 10, 1976\nrecord no finer monument to your administration than the rejuve-\nnation of public trust and confidence in our political system\nand the people who administer it.\nAll of us stand prepared to assist you in any way possible.\nWith best wishes.\nRespectfully,\nPer Paun\nPeter G. Peterson\n22\nRULES OF THE\none additional representative of each\nto transmit to the officer in charge with\n2. A Member, officer, or employee of\npress association.\nthe settlement thereof the papers on file\nthe House of Representatives shall ad-\n3. Such portion of the gallery of the\nin his office relating to such claim, or\nhere to the spirit and the letter of the\nHouse of Representatives as may be nec-\nmay loan temporarily to an officer or\nRules of the House of Representatives\nessary to accommodate reporters of news\nbureau of the executive departments any\nand to the rules of duly constituted com-\nto be disseminated by radio, television,\npapers on file in his office relating to any\nmittees thereof.\nand similar means of transmission, wish-\nmatter pending before such officer or\n3. A Member, officer, or employee of\ning to report debates and proceedings,\nbureau, taking proper receipt therefor.\nthe House of Representatives shall re-\nshall be set aside for their use, and rep-\nceive no compensation nor shall he per-\nRULE XXXVIII\nutable reporters thus engaged shall be\nmit any compensation to accrue to his\nadmitted thereto under such regulations\nBALLOT\nbeneficial interest from any source, the\nas the Speaker may from time to time\nIn all cases of ballot a majority of the\nreceipt of which would occur by virtue\nprescribe: and the supervision of such\nvotes given shall be necessary to an elec-\nor influence improperly exerted from his\ngallery. including the designation of its\ntion, and where there shall not be such\nposition in the Congress.\nemployees, shall be vested in the Execu-\na majority on the first ballot the ballots\n4. A Member, officer, or employee of\ntive Committee of the Radio and Tele-\nshall be repeated until a majority be ob-\nthe House of Representatives shall ac-\nvision Correspondents' Galleries, subject\ntained; and in all balloting blanks shall\ncept no gift of substantial value, directly\nto the direction and control of the\nbe rejected and not taken into the count\nor indirectly, from any person, organiza-\nSpeaker: and the Speaker may admit to\nin enumeration of votes or reported by\ntion, or corporation having a direct in-\nthe floor, under such regulations as he\nthe tellers.\nterest in legislation before the Congress.\nmay prescribe, one representative of the\nRULE XXXIX\n5. A Member, officer, or employee of\nNational Broadcasting Company, one\nMESSAGES\nthe House of Representatives shall ac-\nof the Columbia Broadcasting System.\nMessages received from the Senate and\ncept no honorarium for a speech, writing\none of the Mutual Broadcasting System.\nthe President of the United States, giv-\nfor publication, or other similar activity,\nand one of the American Broadcasting\ning notice of bills passed or approved,\nfrom any person, organization, or cor-\nCompany.\nshall be entered in the Journal and pub-\nporation in excess of the usual and cus-\nRULE XXXV\nlished in the Record of that day's pro-\ntomary value for such services.\nceedings.\n6. A Member of the House of Repre-\nPAY OF WITNESSES\nThe rule for paying witnesses sub-\nRULE XL\nentatives shall keep his campaign funds\nseparate from his personal funds. Unless\npenaed to appear before the House or\nEXECUTIVE COMMUNICATIONS\nspecifically provided by law. he shall\nany of its committees shall be as fol-\nEstimates, or appropriations and all\nconvert no campaign funds to personal\nlows: For each day a witness shall at-\nother communications from the execu-\nuse in excess of reimbursement for legit-\ntend, the sum of twenty dollars; and\ntive departments, intended for the con-\nimate and verifiable prior campaign ex-\nactual expenses of travel in coming to or\nsideration of any committees of the\npenditures and he shall expend no funds\ngoing from the place of examination,\nHouse, shall be addressed to the Speaker,\nfrom his campaign account not attribut-\nnot to exceed twelve cents per mile; but\nand by him referred as provided by clause\nable to bona fide campaign purposes.\nnothing shall be paid for travel when\n2 of Rule XXIV.\n7. A Member of the House of Repre-\nthe witness has been summoned at the\nplace of examination.\nRULE XLI\nsentatives shall treat as campaign con-\ntributions all proceeds from testimonial\nRULE XXXVI\nQUALIFICATIONS OF OFFICERS AND\ndinners or other fund raising events if\nEMPLOYEES\nPAPERS\nthe sponsors of such affairs do not give\nNo person shall be an officer of the\nclear notice in advance to the donors or\n1. The clerks of the several commit-\ntees of the House shall, within three\nHouse, or continue in its employment,\nparticipants that the proceeds are in-\ndays after the final adjournment of a\nwho shall be an agent for the prosecution\ntended for other purposes.\nCongress, deliver to the Clerk of the\nof any claim against the Government, or\n8. A Member of the House of Repre-\nHouse all bills, joint resolutions, peti-\nbe interested in such claim otherwise\nsentatives shall retain no one from his\ntions, and other papers referred to the\nthan as an original claimant; and it shall\nclerk hire allowance who does not per-\ncommittee, together with all evidence\nbe the duty of the Committee on House\nform duties commensurate with the\ntaken by such committee under the order\nAdministration to inquire into and report\ncompensation he receives.\nof the House during the said Congress\nto the House any violation of this rule.\nAs used in this Code of Official Con-\nand not reported to the House; and in\nRULE XLII\nduct of the House of Representatives-\nthe event of the failure or neglect of any\n(a) the terms \"Member\" and \"Member\nclerk of a committee to comply with this\nGENERAL PROVISIONS\nof the House of Representatives\" in-\nrule the Clerk of the House shall. within\nThe rules of parliamentary practice\nclude the Resident Commissioner from\nthree days thereafter. take into his keep-\ncomprised in Jefferson's Manual and the\nPuerto Rico and each Delegate to the\ning all such papers and testimony.\nprovisions of the Legislative Reorganiza-\nHouse and (b) the term \"officer or em-\n2. At the close of each Congress the\ntion Act of 1946. as amended. shall gov-\nployee of the House of Representatives\"\nClerk of the House shall obtain all non-\nern the House in all cases to which they\nmeans any individual whose compensa-\ncurrent records of the House and each\nare applicable, and in which they are\ntion is disbursed by the Clerk of the\ncommittee thereof and transfer them to\nnot inconsistent with the standing rules\nHouse of Representatives.\nthe General Services Administration for\nand orders of the House and joint rules\n9. A Member, officer or employee of\npreservation subject to the order of the\nof the Senate and House of Representa-\nthe House of Representatives shall not\nHouse. In making the transfer. the Clerk\ntives.\ndischarge or refuse to hire any individ-\nmay act jointly with the Secretary of the\nRULE XLIII\nual or otherwise discriminate against\nSenate.\nCODE OF OFFICIAL CONDUCT\nany individual with respect to compen-\nRULE XXXVII\nThere is hereby established by and for\nsation, terms. conditions. or privileges\nWITHDRAWAL OF PAPERS\nthe House of Representatives the foi-\nof employment. because of such individ-\nNo memorial or other paper presented\nual's race. color. religion, sex, or national\nlowing code of conduct. to be known as\nto the House shall be withdrawn from\norigin. see para. #10 attached\nthe \"Code of Official Conduct\";\nits files without its leave, and if with-\nRULE XLIV\n1. A Member. officer. or employee of\ndrawn therefrom certified copies thereof\nthe House of Representatives shall con-\nFINANCIAL DISCLOSURE\nshall be left in the office of the Clerk;\nduct hiniself at all times in a manner\nMembers. officers. principal assistants\nbut when an act may pass for the settle-\nwhich shall reflect creditably on the\nto Members and officers. and professional\nment of a claim, the Clerk is authorized\nHouse of Representatives.\nstaff members of committees shall not\nHOUSE OF REPRESENTATIVES\nR 23\nlater than April 30, 1069. and by April 30\nment) exceeding $1,000 in each instance.\n2 and 3 of part A. and the amount of\nof each year thereafter, file with the\n(d) Honorariums from a single source\nindebtedness owed to each creditor listed\nCommittee on Standards of Official Con-\naggregating $300 or more.\nunder paragraph 4 of part A.\nduct a report disclosing certain financial\n4. List each creditor to whom the per-\nThe information filed under this part\ninterests as provided in this rule. The\nson reporting was indebted for a period\nE shall be sealed by the person filing and\ninterest of a spouse or any other party,\nof ninety consecutive days or more dur-\nshall remain sealed unless the Commit-\nif constructively controlled by the person\ning the preceding calendar year in an\ntee on Standards of Official Conduct.\nreporting. shall be considered to be the\naggregate amount in excess of $10,000,\npursuant to its investigative authority,\nsame as the interest of the person report-\nexcluding any indebtedness specifically\ndetermines by a vote of not less than\ning. The report shall be in two parts as\nsecured by the pledge of assets of the\nseven members of the committee that the\nfollows:\nperson reporting of appropriate value.\nexamination of such information is es-\nPART A\nCampaign receipts shall not be in-\nsential in an official investigation by the\n1. List the name, instrument of owner-\ncluded in this report.\ncommittee and promptly notifies the\nship, and any position of management\nInformation filed under part A shall\nMembers concerned of any such determi-\nheld in any business entity doing a sub-\nbe maintained by the committee on\nnation. The committee may, by a vote\nstantial business with the Federal Gov-\nStandards of Official Conduct and made\nof not less than seven members of the\nernment or subject to Federal regulatory\navailable at reasonable hours to respon-\ncommittee, make public any portion of\nagencies. in which the ownership is in\nsible public inquiry, subject to such reg-\nthe information unsealed by the commit-\nexcess of $5,000 fair market value as of\nulations as the committee may prescribe\ntee under the preceding sentence and\nthe date of filing or from which income\nincluding, but not limited to, regulations\nwhich the committee deems to be in the\nor $1,000 or more was derived during the\nrequiring identification by name, occu-\npublic interest.\npreceding calendar year. Do not list any\npation, address, and telephone number\nAny person required to file a report\ntime or demand deposit in a financial in-\nof each person examining information\nunder this rule who has no interests\nstitution. or any debt instrument having\nfiled under part A, and the reason for\ncovered by any of the provisions of this\na fixed yield unless it is convertible to an\neach such inquiry.\nrule shall file a report, under part A only\nequity instrument.\nThe committee shall promptly notify\nof this rule, as stating.\n2. List the name. address, and type of\neach person required to file a report un-\nIn any case in which a person required\npractice of any professional organization\nder this rule of each instance of an ex-\nto file a sealed report under part B of\nin which the person reporting, or his\namination of his report. The committee\nthis rule is no longer required to file such\nspouse. is an officer, director, or partner,\nshall also promptly notify a Member of\na report, the committee shall return to\nor serves in any advisory capacity, from\neach examination of the reports filed by\nsuch person, or his legal representative,\nwhich income of $1,000 or more was de-\nhis principal assistants and of each ex-\nall sealed reports filed by such person\nrived during the preceding calendar year.\namination of the reports of professional\nunder part B and remaining in the pos-\n3. List the source of each of the fol-\nstaff members of committees who are\nsession of the committee.\nlowing items received during the preced-\nresponsible to such Member.\nAs used in this rule-(1) the term\ning calendar year: (a) Any income for\n\"Members\" includes the Resident Com-\nPART B\nservices rendered (other than from the\nmissioner from Puerto Rico and each\nUnited States Government) exceeding\n1. List thefair market value (as of the\nDelegate to the House; and (2) the\n$5,000. (b) Any capital gain from a\ndate of filing) of each item listed under\nterm \"committees\" includes any com-\nsingle source exceeding $5,000, other\nparagraph 1 of part A and the income\nmittee or subcommittee of the House\nthan from the sale of a residence OC-\nderived therefrom during the preceding\nof Representatives and any joint com-\ncupied by the person reporting. (c)\ncalendar year.\nmittee of Congress, the expenses of\nReimbursement for expenditures (other\n2. List the amount of income derived\nwhich are paid from the contingent fund\nthan from the United States Govern-\nfrom each item listed under paragraphs\nof the House of Representatives.\nRule XLIII Paragraph 10 added in 94th Congress\n10. A Member of the House of Representatives who has been\nconvicted by a Court of Record for the commission of a crime\nfor which a sentence of two or more years imprisonment may\nbe imposed should refrain from participation in the business\nof each committee of which he is a member and should refrain\nfrom voting on any question at a meeting of the House, or\nof the Committee of the Whole House unless or until judicial\nor executive proceedings result in the reinstatement of the\npresumption of his innocence or until he is re-elected to\nthe House after the date of such conviction.\nSTANDING ORDERS OF THE SENATE\n[79.5]\nof the contingent fund of the Senate for the expenses of the\nCommission the sum of $15,000 each fiscal year, to be dis-\nbursed by the Secretary of the Senate on vouchers signed\nby the Chairman or Vice Chairman of the Commission:\nProvided, That no payment shall be made from such appro-\npriation as salary.\n[8. Jour. 836, 90-2, Oct. 1. 1968.\nCOMMISSION ON ART AND ANTIQUITIES OF THE UNITED STATES [79.5]\nSENATE-ADDITIONAL AUTHORITY\nResolved, That (a) the Commission on Art and Antiquities\nof the United States Senate, in addition to any authority\nconferred upon it by Senate Resolution 382, Ninetieth\nCongress, agreed to October 1, 1968, is authorized to ac-\nquire any work of art, historical object, document or ma-\nIS\nterial relating to historical matters, or exhibit for placement\nor exhibition in the Senate wing the Capitol, the Senate\nol\nOffice Buildings, or in rooms, spaces, or corridors thereof.\n(b) This resolution shall be effective as of March 1, 1971.\nne\n(S. Jour. 232-233, 92-1, Apr. 1, 1971.\nSTANDARDS OF CONDUCT FOR MEMBERS OF THE SENATE AND [79.6]\nOFFICERS AND EMPLOYEES OF THE SENATE\nResolved, It is declared to be the policy of the Senate\nthat-\n(a) The ideal concept of public office, expressed by the\na\nwords, \"A public office is a public trust\", signifies that the\nofficer has been entrusted with public power by the people;\nate\nthat the officer holds this power in trust to be used only for\non,\ntheir benefit and never for the benefit of himself or of a few;\nry.\nand that the officer must never conduct his own affairs so as\nout\nto infringe on the public interest. All official conduct of\n121\n37-195 0-78-9\n[79.7]\nSTANDING ORDERS OF THE SENATE\nMembers of the Senate should be guided by this paramount\nconcept of public office.\n(b) These rules, as the written expression of certain\nstandards of conduct, complement the body of unwritten\nbut generally accepted standards that continue to apply to\nthe Senate.\nSEC. 2. The Standing Rules of the Senate are amended\nby adding at the end thereof the following new rules:\n(1)\n[S. Jour. 247, 90-2, Mar. 22, 1968.\n[79.7] APPOINTMENT FOR THE SENATE OF PAGES, ELEVATOR OPERA-\nTORS, POST OFFICE EMPLOYEES, OR CAPITOL POLICEMEN\nWITHOUT DISCRIMINATION ON ACCOUNT OF SEX\nResolved, That no individual shall be denied appointment\nas a Senate page, elevator operator, or post office employee,\nor as a Capitol policeman whose compensation is disbursed\nby the Secretary of the Senate, solely on the basis of sex.\nIn the case of Senate pages, however, until such time as the\nfireproof building containing dormitory and classroom\nfacilities, as authorized by section 492 of the Legislative\nReorganization Act of 1970, is constructed and the pages\nare living under appropriate supervision in such building,\nthe Sergeant at Arms of the Senate shall promulgate and\nhave in effect regulations for the appointment of pages of\nthe Senate requiring that no female page shall be appointed\nby a Senator until the Senator files with the Sergeant at\n1 This resolution added four new rules to the Standing Rules of the Senate, which are\nnumbered XLI, XLII, XLIII, and XLIV and are found as Senate Manual sections [41],\n[42], [43], and [44]. respectively.\n122\nSTANDING RULES OF THE SENATE\n[40]\nthe\nexcept original treaties transmitted to the Senate by the\nat\nPresident of the United States, and finally acted upon by\nto\nthe\nthe Senate, shall be delivered from the office of the Secretary\nor\nwithout an order of the Senate for that purpose.\nnations\nRULE XL\n[40]\ntaking\nSecre-\nSUSPENSION AND AMENDMENT OF THE RULES\nsidered\nNo motion to suspend, modify, or amend any rule, or\nby\nthe\nany part thereof, shall be in order, except on one day's\nnotice in writing, specifying precisely the rule or part pro-\nposed to be suspended, modified, or amended, and the\nprinter\npurpose thereof. Any rule may be suspended without\nproceed-\nnotice by the unanimous consent of the Senate, except as\nrecalled,\notherwise provided in clause 1, Rule XII.\nRULE XLI 1\n[41]\nwith\na\non\nwhich\nOUTSIDE BUSINESS OR PROFESSIONAL ACTIVITY OR EMPLOY-\nejections.\nMENT BY OFFICERS OR EMPLOYEES\n1. No officer or employee whose salary is paid by the [41.1]\nthe\npublic\nSenate may engage in any business or professional activity\nthe\nday\nrdered\nby\nor employment for compensation unless-\n1894.)\n(a) the activity or employment is not inconsistent\nnor in conflict with the conscientious performance of his\nofficial duties; and\nORDS\nOF\n(b) he has reported in writing when this rule takes\neffect or when his office or employment starts and on\ntime\nto\nthe 15th day of May in each year thereafter the nature\nof\nthe\nof any personal service activity or employment to his\nextract\nsupervisor. The supervisor shall then, in the discharge\nhe\nSecre-\n1 8. Jour. 247, 90-2, Mar. 22, 1963.\npaper,\n65\n[41.2]\nSTANDING RULES OF THE SENATE\nof his duties, take such action as he considers necessary\nM.\nfor the avoidance of conflict of interest or interference\nand\nwith duties to the Senate.\n[41.2]\n2. For the purpose of this rule-\nSeen\n(a) a Senator or the Vice President is the supervisor\nMi:\nof his administrative, clerical, or other assistants;\n3. The\n(b) a Senator who is the chairman of a committee\nis the supervisor of the professional, clerical, or other\nassistants to the committee except that minority staff\nmembers shall be under the supervision of the ranking\n1. A\nminority Senator on the committee;\nmade\n(c) a Senator who is a chairman of a subcommittee\nor who\nwhich has its own staff and financial authorization is the\ntion, or\nsupervisor of the professional, clerical, or other assistants\nor petit\nto the subcommittee except that minority staff members\ndirectly\nshall be under the supervision of the ranking minority\nnomine\nSenator on the subcommittee;\nof Unite\n(d) the President pro tempore is the supervisor of the\nSecretary of the Senate, Sergeant at Arms and Door-\nin his\nkeeper, the Chaplain, and the employees of the Office of\nthe Legislative Counsel;\n(e) the Secretary of the Senate is the supervisor of\nthe employees of his office;\n(f) the Sergeant at Arms and Doorkeeper is the\nsupervisor of the employees of his office;\n(g) the Majority and Minority Leaders and the Ma-\n(b)\njority and Minority Whips are the supervisors of the\nSend\nresearch, clerical, or other assistants assigned to their\nthe\nrespective offices;\nreceiv\n(h) the Majority Leader is the supervisor of the\na B. Jour. 247,\nSecretary for the Majority. The Secretary for the\n66\n&\nGERALD\nSTANDING RULES OF THE SENATE\n[41.3]\nMajority is the supervisor of the employees of his office;\nand\n(i) the Minority Leader is the supervisor of the\nSecretary for the Minority. The Secretary for the\nMinority is the supervisor of the employees of his office.\n3. This rule shall take effect ninety days.after adoption. [41.3]\nRULE XLII'\n[42]\nCONTRIBUTIONS\n1. A Senator or person who has declared or otherwise [42.1]\nmade known his intention to seek nomination or election,\nor who has filed papers or petitions for nomination or elec-\nthe\ntion, or on whose behalf a declaration or nominating paper\nor petition has been made or filed, or who has otherwise,\ndirectly or indirectly, manifested his intention to seek\nnomination or election, pursuant to State law, to the office\nof United States Senator, may accept a contribution from-\nthe\n(a) a fundraising event organized and held primarily\noor-\nin his behalf, provided—\nof\n(1) he has expressly given his approval of the\nfundraising event to the sponsors before any funds\nof\nwere raised; and\n(2) he receives a complete and accurate account-\nthe\ning of the source, amounts, and disposition of the\nfunds raised; or\nMa-\n(b) an individual or an organization, provided the\nthe\nSenator makes a complete and accurate accounting of\nheir\nthe source, amount, and disposition of the funds\nreceived; or\nthe\n8 8. Jour. 247, 90-2, Mar. 22, 1968.\nthe\n67\n[42.2]\nSTANDING RULES OF THE SENATE\n(c) his political party when such contributions were\nfrom a fundraising event sponsored by his party,\nwithout giving his express approval for such fund-\nraising event when such fundraising event is for the\npurpose of providing contributions for candidates of\nhis party and such contributions are reported by the\nSenator or candidate for Senator as provided in\nparagraph (b).\n[42.2]\n2. The Senator may use the contribution only to influence\nhis nomination for election, or his election, and shall not use,\ndirectly or indirectly, any part of any contribution for any\nother purpose, except as otherwise provided herein.\n[42.3]\n3. Nothing in this rule shall preclude the use of contri-\nbutions to defray expenses for travel to and from each\nSenator's home State; for printing and other expenses in\nconnection with the mailing of speeches, newsletters, and\nreports to a Senator's constituents; for expenses of radio,\ntelevision and news media methods of reporting to a\nSenator's constituents; for telephone, telegraph, postage, and\nstationery expenses in excess of allowance; and for newspaper\nsubscriptions from his home State.\n[42.4]\n4. All gifts in the aggregate amount or value of $50 or\nmore received by a Senator from any single source during a\nyear, except a gift from his spouse, child, or parent, and\nor\nexcept a contribution under sections 1 and 2, shall be reported\nunder rule XLIV.\nor\n[42.5]\n5. This rule shall take effect ninety days after adoption.\nor\nStat\nwho\n68\nSTANDING RULES OF THE SENATE\n[43]\nRULE XLIII 1\n[43]\nPOLITICAL FUND ACTIVITY BY OFFICERS AND EMPLOYEES\nand-\n1. No officer or employee whose salary is paid by the [43.1]\nthe\nSenate may receive, solicit, be the custodian of, or distribute\nof\nany funds in connection with any campaign for the nomina-\nthe\ntion for election, or the election of any individual to be a\nin\nMember of the Senate or to any other Federal office. This\nprohibition does not apply to any assistant to a Senator\nwho has been designated by that Senator to perform any of\nuse,\nthe functions described in the first sentence of this paragraph\nany\nand who is compensated at a rate in excess of $10,000 per\nannum if such designation has been made in writing and\nntri-\nfiled with the Secretary of the Senate. The Secretary of the\neach\nSenate shall make the designation available for public\nin\ninspection.\nand\n2. This rule shall take effect sixty days after adoption.\n[43.2]\nto\na\nRULE XLIV 1\n[44]\nand\nDISCLOSURE OF FINANCIAL INTERESTS\npaper\n1. Each Senator or person who has declared or otherwise [44.1]\nor\nmade known his intention to seek nomination or election, or\na\nwho has filed papers or petitions for nomination or election,\nand\nor on whose behalf a declaration or nominating paper or\norted\npetition has been made or filed, or who has otherwise, directly\nor indirectly, manifested his intention to seek nomination\nor election, pursuant to State law, to the office of United\nStates Senator, and each officer or employee of the Senate\nwho is compensated at a rate in excess of $15,000 a year,\n18. Jour. 247, 90-2, Mar. 22, 1968.\n69\n[44.1]\nSTANDING RULES OF THE SENATE\nshall file with the Comptroller General of the United States,\nin a sealed envelope marked \"Confidential Personal Financial\nDisclosure of\n(Name)\n\" , before the\n15th day of May in each year, the following reports of his\npersonal financial interests:\n(a) a copy of the returns of taxes, declarations, state-\nments, or other documents which he, or he and his spouse\njointly, made for the preceding year in compliance with\nthe income tax provisions of the Internal Revenue Code;\n(b) the amount or value and source of each fee or com-\npensation of $1,000 or more received by him during the\npreceding year from a client;\n(c) the name and address of each business or profes-\nsional corporation, firm, or enterprise in which he was\nan officer, director, partner, proprietor, or employee who\nreceived compensation during the preceding year and\nthe amount of such compensation;\n(d) the identity of each interest in real or personal\nproperty having a value of $10,000 or more which he\nowned at any time during the preceding year;\n(e) the identity of each trust or other fiduciary rela-\ntion in which he held a beneficial interest having a value\nof $10,000 or more, and the identity if known of each\ninterest of the trust or other fiduciary relation in real or\npersonal property in which the Senator, officer, or\nemployee held a beneficial interest having a value of\n$10,000 or more, at any time during the preceding year.\n70\nSTANDING RULES OF THE SENATE\n[44.2]\nIf he cannot obtain the identity of the fiduciary interests,\nthe Senator, officer, or employee shall request the\nfiduciary to report that information to the Comptroller\nthe\nGeneral in the same manner that reports are filed under\nhis\nthis rule;\n(f) the identity of each liability of $5,000 or more\nowed by him, or by him and his spouse jointly, at any\ntate-\ntime during the preceding year; and\n(g) the source and value of all gifts in the aggregate\nwith\namount or value of $50 or more from any single source\node;\nreceived by him during the preceding year.\ncom-\n2. Except as otherwise provided by this section, all papers [44.2]\nthe\nfiled under section 1 of this rule shall be kept by the Comp-\ntroller General for not less than seven years, and while so\nofes-\nkept shall remain sealed. Upon receipt of a resolution of the\nwas\nSelect Committee on Standard and Conduct, adopted by a\nwho\nrecorded majority vote of the full committee, requesting the\nand\ntransmission to the committee of any of the reports filed by\nany individual under section 1 of this rule, the Comptroller\nGeneral shall transmit to the committee the envelopes con-\nhe\ntaining such reports. Within a reasonable time after such\nrecorded vote has been taken, the individual concerned shall\nrela-\nbe informed of the vote to examine and audit, and shall be\nvalue\nadvised of the nature and scope of such examination. When\neach\nany sealed envelope containing any such report is received\nor\nby the committee, such envelope may be opened and the\nor\ncontents thereof may be examined only by members of the\nof\ncommittee in executive session. If, upon such examination,\nyear.\nthe committee determines that further consideration by the\ncommittee is warranted and is within the jurisdiction of the\n71\n[44.3]\nSTANDING RULES OF THE SENATE\ncommittee, it may make the contents of any such envelope\navailable for any use by any member of the committee, or\nany member of the staff of the committee, which is required\nfor the discharge of his official duties. The committee may\nreceive the papers as evidence, after giving to the individual\nconcerned due notice and opportunity for hearing in a closed\nsession. The Comptroller General shall report to the Select\nCommittee on Standards and Conduct not later than the\n1st day of June in each year the names of Senators, officers,\nand employees who have filed a report. Any paper which\nhas been filed with the Comptroller General for longer than\nseven years, in accordance with the provisions of this section,\nshall be returned to the individual concerned or his legal\nrepresentative. In the event of the death or termination of\nservice of a Member of the Senate, an officer or employee,\nsuch papers shall be returned unopened to such individual,\nor to the surviving spouse or legal representative of such\nindividual within one year of such death or termination\nof service.\n[44.3]\n3. Each Senator or person who has declared or other-\nwise made known his intention to seek nomination or elec-\ntion, or who has filed papers or petitions for nomination or\nelection, or on whose behalf a declaration or nominating paper\nor petition has been made or filed, or who has otherwise, di-\nrectly or indirectly, manifested his intention to seek nomina-\ntion or election, pursuant to State law, to the office of United\nStates Senator, and each officer or employee of the Senate who\nis compensated at a rate in excess of $15,000 a year, shall file\nwith the Secretary of the Senate, before the 15th day of May\nin each year, the following reports of his personal financial\ninterests:\n72\nSTANDING RULES OF THE SENATE\n[44.4]\n(a) the accounting required by rule XLII for all\ncontributions received by him during the preceding year,\nexcept that contributions in the aggregate amount or\nvalue of less than $50 received from any single source\nduring the reporting period may be totaled without\nfurther itemization; and\n(b) the amount or value and source of each hono-\nrarium of $300 or more received by him during the pre-\nceding year.\n4. All papers filed under section 3 of this rule shall be kept [44.4]\nby the Secretary of the Senate for not less than three years\nand shall be made available promptly for public inspection\nand copying.\nof\n5. This rule shall take effect on July 1, 1968. No reports [44.5]\nshall be filed for any period before office or employment was\nheld with the Senate, or during a period of office or employ-\nment with the Senate of less than ninety days in a year;\nexcept that the Senator, or officer or employee of the Senate,\nmay file a copy of the return of taxes for the year 1968, or\na report of substantially equivalent information for only the\neffective part of the year 1968.\nor\ndi-\nwho\nfile\nMay\n73\n37-195 0-75-8\nSTANDARDS OF CONDUCT APPLICABLE\nTO THE EXECUTIVE BRANCH\nCertain legal requirements governing the standards\nof conduct and potential conflicts of interest are\napplicable to each member of the Executive Branch.\nAdditionally, all employees paid at a level equivalent\nto GS 13 and above, including consultants, are required\nto complete and file certain forms calling for\nemployment and financial information.\n(a) Authorities. Each officer and employee of\nthe Executive Branch is subject to regulations\npromulgated by his agency under the authority\nof Executive Order 11222 (May 8, 1965)\ngoverning his or her conduct. Additionally,\ncertain types of conduct are proscribed by\nthe federal conflict of interest statute\n(18 U.S.C. 201 et seq.).\n(b) Conflicts in General. A \"conflict of\ninterest\" refers to any situation in which\na government ficial has an actual or\napparent personal interest in the outcome\nof a matter which he or she is in a position\nto influence through decision, recommendation,\nadvice or other formal or informal action.\nA violation of law does not require an\nintent to favor one's personal interest,\nand cannot be overcome by a showing of the\nabsence of such an intent. Participation,\nby itself, in a matter in which one has\nan interest is unlawful.\n(c) Other Constraints. Set forth below are a\nnumber of illustrations of prohibitive\nconduct:\nRegulatory Agencies. Executive Branch\npersonnel are generally prohibited\nfrom making contacts with regulatory\nagencies regarding matters under\nadjudication or within the rule-\nmaking process. Moreover, any\ncontact with such agencies normally\nrequires clearance by an official\nGERALD\nat the policy-making level.\n-2-\nLobbying. If carried on with appropriated\nfunds, lobbying is expressly prohibited\nby law.\nPolitical Activity. Political activity\nby Executive Branch personnel is subject\nto numerous criminal and civil restrictions.\nMisuse of Information. Disclosure of\nclassified or other confidential information\nis, of course, prohibited. Additionally,\nExecutive Branch personnel must avoid\nthe fact or appearance of using information\nobtained in the course of one's official\nduties for private gain.\nGifts. Receipt of gifts, payment of\ntravel, lodging, entertainment and other\nexpenses, or receipt of speaking\nhonoraria are generally prohibited.\nAppearance of Impropriety. Executive\nBranch personnel are directed to be\never sensitive to avoid the appearance\nof acting on behalf of some private\ninterest or of a conflict or other\nimpropriety which can be fully as\ndamaging as the real thing.\n(d) Objectives. As a general statement, it might\nbe said that the statutes and regulations which\nare applicable to personnel within the Executive\nBranch are directed to insure the achievement\nof the following objectives:\nThe fair, impartial and equal treatment\nof those dealing with the government;\nThe assurance that government decisions\nwill not be influenced by an employee's\nprivate interests;\nThe maintenance of public confidence in\nthe integrity of government operations;\nThe prevention of use of public office\nfor private gain; and\nThe prevention of any impediment to the\nefficiency and economy of government\nbusiness.\nTHE WHITE HOUSE\nWASHINGTON\nDecember 14, 1976\nMEETING WITH LEGISLATIVE LEADERS\n(TWO SEPARATE GROUPS)\nON THE REPORT ON EXECUTIVE, LEGISLATIVE, AND\nJUDICIAL SALARIES (PETERSON COMMISSION)\nTuesday, December 14, 1976\nRepublicans - 8:00 a.m. (1 hour)\nDemocrats - 10:00 a.m. (1 hour)\nCabinet Room\nFrom: Mike Duval Mike\nI.\nPURPOSE\nTo solicit the opinions and recommendations of Congressional\nleaders on the Peterson Commission report.\nII.\nBACKGROUND, PARTICIPANTS & PRESS PLAN\nA. Background: The report of the Peterson Commission\nrecommended that you meet with Congressional and\nJudicial leaders prior to making your decisions on\ntheir recommendations. You are scheduled to meet\nwith the Chief Justice on Wednesday.\nB. Participants: See Tab A.\nC. Press Plan: Announced, no press photo.\nIII. AGENDA\nSee Tab B.\nGERALD\nTAB A\nPARTICIPANTS\nPARTICIPANTS\n(8:00 a.m. Meeting)\nThe President\nHOUSE\nSENATE\nBob Michel\nHugh Scott\nJack Edwards\nBob Griffin\nBarber Conable\nCarl Curtis\nGuy Vander Jagt\nMark Hatfield\nDel Clawson\nSTAFF\nJack Marsh\nDick Cheney\nPhil Buchen\nMax Friedersdorf\nJim Cannon\nJim Lynn\nMike Duval\nEd Schmults\nJim Cavanaugh\nREGRETS\nHOUSE\nSENATE\nJohn Rhodes\nJohn Tower\nJohn Anderson\nBob Stafford\nSam Devine\nTed Stevens\nLou Frey\nHiram Fong\nJimmy Quillen\nBill Frenzel\nEd Derwinski\nFloyd Spence\nPARTICIPANTS\n(10:00 a.m. Meeting)\nThe President\nHOUSE\nSENATE\nJack McFall\nMike Mansfield\nJim Wright\nGale McGee\nMo Udall\nSTAFF\nJack Marsh\nDick Cheney\nPhil Buchen\nMax Friedersdorf\nJim Cannon\nJim Lynn\nMike Duval\nEd Schmults\nJim Cavanaugh\nREGRETS\nHOUSE\nSENATE\nCarl Albert\nHoward Cannon\nTip O'Neill\nQuentin Burdick\nJohn Brademas\nRobert Byrd\nJohn Flynt\nTAB B\nAGENDA\nAGENDA AND TALKING POINTS\nThe Commission on Executive, Legislative, and Judicial\nSalaries, chaired by Peter Peterson, issued its report\nwhich contains two key recommendations:\n1. That there should be substantial pay increases\nfor high-ranking governmental officials amounting\nto approximately 29% for the Legislative Branch,\n32% for the Executive Branch, and 44% for the\nJudicial Branch.\n2. These salary increases should be coupled with the\nimposition of a new code of conduct on all three\nbranches.\nThe Commission's report raises serious issues dealing with\nthe amount of public confidence in the Federal Government\nand the quality of people which serve in it.\nThe report suggests that I solicit the opinions of Legislative\nand Judicial Branch leaders prior to making my decisions on\nthe report's recommendations.\nSome of the issues which I hope we can discuss today are:\nShould there be a substantial increase in the\ncompensation of Members of Congress, Justices\nof the Supreme Court, and Judges, and Presidential\nappointees in the Executive Branch?\nIf substantial increases are justified, should\nthey be tied to a new code of conduct?\nShould such a code of conduct apply to all three\nBranches and how should it be developed?\nIf a substantial increase is required, how should\nwe deal with the issues of: linkage between the\nvarious jobs within each branch, the correct salary\nlevels, special allowances for relocation and the\nsecond residence of Members of Congress and a\nmechanism for dealing with cost of living increases?\nI'd like to hear your views and recommendations on these\nand any other related issues.\n[Congressional leaders present their views]\nI'll be meeting tomorrow with the Chief Justice to discuss\nthe Commission's recommendations as they relate to the\nJudicial Branch. As you know, I'm required by statute to\nreflect my decisions on the Commission's report in the Budget\nmessage which I will send to Congress this January. I\nappreciate very much your giving me your views and recommendations.\n193 PRESIDEN. BAS SEE\nTHE WHITE HOUSE\nWASHINGTON\nMEETING WITH CHIEF JUSTICE BERGER\nWednesday, December 15, 1976\n5:30 p.m. (30 minutes)\nThe Oval Office\nFrom: Mike Duval Mike\nI. PURPOSE\nThe Chief Justice has requested this opportunity to\ndiscuss with you the recommendations of the Commission\non Executive, Legislative and Judicial Salaries to the\nextent the report relates to salary levels of members\nof the Judicial Branch. This meeting was set up at\nyour invitation for you to solicit the Chief Justice's\nviews concerning the Peterson Report.\nII. BACKGROUND, PARTICIPANTS AND PRESS PLAN\nA. Background: The Chief Justice supports the\nincreases in judicial salaries recommended by\nthe Peterson Commission. He has also provided\na substantial compilation of materials relating\nto the Standards of Conduct already applicable to\nthe Judiciary [see attached summary provided by Phil\nBuchen's office at TAB A].\nB. Participants:\nThe President\nThe Chief Justice\nPhil Buchen\nDick Cheney\nMike Duval\nJim Lynn\nC. Press Plan: Announced, no press photo.\nIII. AGENDA\n1. Appropriate salary levels for Members of the\nJudiciary and their relationship to appropriate salary\nlevels for Members of Congress.\n2. The need, if any, for a new Code of Conduct binding\nupon the Judicial Branch and any potential Separation\nof Powers problems posed by such a Code.\nTAB A\nSTANDARDS OF CONDUCT\nAPPLICABLE TO JUDICIARY\nAlmost 50 years ago, the American Bar Association\nformulated the original Canons of Judicial Ethics.\nThose Canons, occasionally amended, have been adopted\nin most states. In 1969, the Association determined\nthat current needs and problems required revision of\nthe Canons. The revision process resulted in the Code\nof Judicial Conduct which was approved by the ABA House\nof Delegates in 1972 and thereafter adopted for federal\njudges by the Judicial Conference of the United States\nin 1973. Additionally, P.L. 93-512, which was signed\ninto law on December 5, 1974, provides a statutory\nfooting for many of the constraints imposed by the Code.\nThe Code of Judicial Conduct may be outlined as\nfollows:\no\nCanon 1. A judge should uphold the integrity\nand independence of the judiciary.\nCanon 2. A judge should avoid impropriety\nor the appearance of impropriety in all\nhis activities.\no Canon 3. A judge should perform the duties\nof his office impartially and diligently.\nThe Standards which have been drafted\npursuant to Canon 3 provide for the dis-\nqualification of any justice, judge,\nmagistrate or referee in bankruptcy of\nthe United States in those cases which\npresent, in fact or in appearance, a question\nof judicial bias, prejudice, or conflict\nof interest. The standards governing\npotential financial conflicts are much\nmore stringent than comparable provisions\ngoverning the Executive and Legislative\nBranches. For example, a \"financial\ninterest\" is defined to reach any legal\nor equitable interest, however small,\nwith no de minimis exclusion.\no Canon 4. A judge may engage in activities\nto improve the law, the legal system\nand the administration of justice. The\nstandards carrying forward Canon 4\ngenerally prohibit any outside employment\nby a judge apart from writing assignments.\n-2-\nO\nCanon 5. A judge should regulate his extra-\njudicial activities to minimize the risks\nof conflict with his judicial duties. The\nstandards here substantially restrict the\ninvestment options of a judge.\nO Canon 6. A judge should regularly file\nreports of compensation received for quasi-\njudicial and extra-judicial activities.\nAlthough a judge does not have to file any\nstatement of assets and liabilities, he is\nrequired to report outside compensation\nallowed under the Canons.\nCanon 7. A judge should refrain from\npolitical activity inappropriate to his\njudicial office. Generally, a judge is\nprohibited from engaging in political conduct.\nThe Advisory Committee on Judicial Conduct performs\nthe duty of issuing advisory opinions on matters of\njudicial ethics and judicial conduct requested by judges.\nIn addition to the foregoing there are, of course,\nmany other statutory restrictions on judicial activities.\nUnder Section 454 of Title 28, for example, it is made\nunlawful for any justice or judge to engage in the practice\nof law. There are various laws relating to nepotism. For\nexample, the son, daughter, nephew or niece of a judge\ncannot be employed as a law clerk. (This was enacted at\nthe request of judges.)\nFinally, new controls have been placed on the\nacceptance of fees and honoraria by judges through the\nFederal Elections Campaign Act as recently amended, 2 U.S.C\n[1976 supp. ] $441i. This new legislation applies in terms\nto justices and judges. (The power of Congress to\nlegislate on these matters as to the Judicial Branch has\nnot been judicially determined but the Judicial Conference\nhas accepted the binding effect of these statutes, since\nthey are largely declaratory of earlier action taken by\nthe Judicial Conference.) These judicial officers are\nlimited to honoraria in an individual amount no greater\nthan $2,000, excluding expenses, for any one lecture\nor speech. Judges are also subject to the annual limit\nof $25,000, in common with Members of Congress.\nTHE PRESIDENT HAS SEEN\nTHE WHITE HOUSE\nWASHINGTON\nDecember 15, 1976\nMEMORANDUM FOR:\nTHE PRESIDENT\nFROM:\nMIKE DUVAL\nMike\nSUBJECT:\nPeterson Commission Report\nAttached at Tab A are staff recommendations concerning the pay\nincreases recommended by the Peterson Commission. Jim Lynn will\nhave his recommendations completed shortly.\nAs you know, Alan Greenspan and Bob Hartmann recommend against an\nincrease.\nSpecific staff comments are attached at Tab B.\nAttachments\nTAB A\nPETERSON\nCOMMISSION\nPHIL BUCHEN\nJIM CANNON\nJIM LYNN\nJACK MARSH\nBRENT SCOWCROFT\nBILL SEIDMAN\nRECOMMENDATION\nRECOMMENDATION\nRECOMMENDATION\nRECOMMENDATION\nRECOMMENDATION\nRECOMMENDATION\nRECOMMENDATION\n*\nVICE PRESIDENT\n$ 80,000\n$ 74,200\n$ 80,000\n$\n$ 75,000\n$ 70,000\n$ 80,000\nCHIEF JUSTICE\n80,000\n74,200\n80,000\n75,000\n70,000\n80,000\nSPEAKER\n80,000\n74,200\n80,000\n75,000\n70,000\n80,000\nASSOCIATE JUSTICE\n77,500\n71,700\n77,500\n70,000\n67,500\n75,500\nEXECUTIVE LEVEL I\n67,500\n65,700\n67,500\n70,000\n65,000\n67,500\nPRESIDENT PRO-TEM,\n65,000\n59,800\n65,000\n65,000\n60,000\n65,000\nMAJORITY & MINORITY LEADER\nCOURT OF APPEALS JUDGE\n65,000\n56,800\n59,500\n65,000\n53,000\n65,000\nDISTRICT COURT JUDGE\n62,000\n54,000\n57,000\n48,000\n51,500\n62,000\nEXECUTIVE LEVEL II\n60,000\n53,800\n59,500\n49,000\n52,500\n60,000\nSENATORS AND REPRESENTATIVES\n57,500\n56,800\n59,500\n50,000\n50,000\n65,000\nEXECUTIVE LEVEL III\n57,000\n51,000\n55,000\n47,000\n49,500\n57,000\nEXECUTIVE LEVEL IV\n53,000\n47,700\n50,000\n43,000\n47,500\n53,000\nEXECUTIVE LEVEL V\n49,000\n44,500\n46,500\n45,000\n49,000\n* Gen. Scowcroft does not recommend\nany increases. However, if an\nincrease is to be proposed he\nrecommends above figures in three\nyearly tranches with top cailing $70,000.\nTAB B\nTHE WHITE HOUSE\nWASHINGTON\nDecember 14, 1976\nMEMORANDUM TO:\nMIKE DUVAL\nFROM:\nROBERT T. HARTMANN RAV\nSUBJECT:\nPeterson Commission Report\nI am opposed to all these huge increases (maybe\nFederal judges deserve a little more, but not up\nto what the Chief Justice makes now!) -- why do\nwe help Democrats get richer? Let them eat peanuts\nor pass their own raises without our connivance.\nThe public is going to be outraged. I do think,\nhowever, that regular cost of living increases for\nFederal employees should apply to the upper levels\nas well, despite Congress' election year spirit\nof sacrifice.\nTHE WHITE HOUSE\nWASHINGTON\nDecember 14, 1976\nMEMORANDUM FOR THE PRESIDENT\nFROM:\nPHILIP W. BUCHEN\nSUBJECT:\nRecommendation on Salary Levels for\nPositions Covered by Peterson\nCommission Report\nThe attached recommendations by dollar amount are\narrived at as follows:\n1. The Peterson Commission recommenda-\ntion of $57,500 for Senators and\nRepresentatives is adjusted to\n$65,000 so as to be in line with\nthe Court of Appeals Judges.\n2. Then, after this adjustment is made,\nall recommendations of the Commission\nare adjusted to achieve 60% approxi-\nmately of Commission-recommended\nincreases.\nThis method has the virtue of not materially\ndisturbing the relations between the Commission-\nrecommended increases for the different positions,\nwhile at the same time reducing the total dollar\namount of each increase. Alternatively, the\nfigure in item 2 of the calculation method could\nbe 50% instead of 60%.\nAttachment\nEXHIBIT II\nPETERSON COMMISSION\nRECOMMENDATION\nBY:\nVICE PRESIDENT\n$ 80,000\n$74,200\nCHIEF JUSTICE\n80,000\n74,200\nSPEAKER\n80,000\n74,200\nASSOCIATE JUSTICE\n77,500\n71,700\nEXECUTIVE LEVEL I\n67,500\n65,700\nPRESIDENT PRO-TEM, MAJORITY\n65,000\nAND MINORITY LEADER\n59,800\nCOURT OF APPEALS JUDGE\n65,000\n56,800\nDISTRICT COURT JUDGE\n62,000\n54,000\nEXECUTIVE LEVEL II\n60,000\n53,800\nSENATORS AND REPRESENTATIVES\n57,500\n56,800\nEXECUTIVE LEVEL III\nGERALD\n57,000\n51,000\nEXECUTIVE LEVEL IV\n53,000\n47,700\nEXECUTIVE LEVEL V\n49,000\n44,500\nTHE CHAIRMAN OF THE\nCOUNCIL OF ECONOMIC ADVISERS\nWASHINGTON\nDecember 14, 1976\nMEMORANDUM FOR MIKE DUVAL\nFROM: ALAN GREENSPAN\nA\nThis is in response to your request for my comments on\nthe salary schedule proposed in the Peterson Commission report\non executive, legislative and judicial salaries. I do not\nfeel that the CEA has sufficient expertise to comment on the\nstructure of the salary scale, that is, on the relative salary\nrankings for the various positions listed in your memo.\nHowever, as I indicated in detail in my memo of\nDecember 8 to Jim Connor (copy attached), I believe that the\nsalary increases recommended by the Peterson Report are far\ntoo large and should not be approved by the President.\nThe Peterson report did not offer adequate evidence that\nlarge salary increases are warranted at this time. There\nis no clear evidence that the current salary schedule fails\nto attract and retain high quality persons. On the basis of\nempirical studies, it appears that the salary compression\nmay be due to civil service salaries for the super-grades\nthat are too high, rather than executive salaries that are\ntoo low. Given the continued high level of unemployment,\nour efforts to discourage high wage increases in the private\nsector, and our objective of limiting the growth in the\nFederal sector, I believe it would be inappropriate, as\nwell as embarrassing, to endorse salary increases of 22 percent\nto 47 percent as recommended by the Commission.\nREVOLUTION\nAMERICAN\nBICENTENNIAL\n1776-1976\nTHE CHAIRMAN OF THE\nCOUNCIL OF ECONOMIC ADVISERS\nWASHINGTON\nDecember 8, 1976\nMEMORANDUM FOR JIM CONNOR\nFROM:\nALAN GREENSPAN\nSUBJECT: Report of Commission on Executive, Legislative\nand Judicial Salaries\nThe report does not offer convincing evidence that\nthe current pay schedule for high-level government officials,\ncivil service or appointed, is inefficient for satisfying the\ngovernment's requirements for executives. I have no\nobjections to the overall structure of the report. However,\nthe report does not adequately establish the case for the\nproposed salary structure. It would be difficult to defend a\nsudden increase of 20 to 47 percent for high-level govern-\nment officials given that they did not experience unemployment\nin the last few years. Gradual increases would be viewed\nas more reasonable. Since the proposed wage increases are\narbitrary, the Administration is best off endorsing the\nprinciple of gradual increases, without endorsing the\nparticular magnitudes. The standards of conduct (item 8\nbelow) should be sufficiently broad as to avoid particular\nproblems that specific standards might entail. The report\ncould be released in the interest of promoting full public\ndiscussion of these issues, with a Presidential endorsement\nof relaxation of salary caps and stronger conflict of interest\nprovisions, but without endorsing the specifics of the Com-\nmission report. Some more detailed comments follow.\n(1) The report indicates that nongovernmental executives\ntend to view a government job as a form of investment in\ntraining. The sacrifice of earnings to take the job\n(23 percent on average) is more than compensated for by the\nrise in earning opportunities after leaving government\n(on average an 84 percent rise in salary over the govern-\nment level when return to private sector.) Apparently,\nthe government employment broadens their experiences and\nmakes them more valuable in the private sector. The report\ndoes not present evidence that these persons are less\nREVOLUTION\nAMERICAN\nBICENTENNIAL\n1776-1976\n-2-\neffective in the government job than others who prefer\nnot to undertake this form of investment.\n(2) The report indicates that among career civil\nservants in the super-grades the cap on salaries makes\ngovernment jobs less attractive than private sector jobs.\nThis ignores many attractive benefits of government employ-\nment including the relatively high pension with early\nretirement provisions and the stability of employment.\nIn part, middle-level private sector executives receive\nhigh salaries because of the uncertainty of employment\nand problems of reemployment if they lose their job. The\nattractive alternative for super-grades appears to be\nretirement with the government pension, rather than leaving\ngovernment for another executive position prior to retire-\nment age. This raises the question as to whether the\npension is too generous for the super-grades. In addition,\nthe report ignores the problem of grade-inflation in the\nlast few years.\n(3) The report does hot address the issue of the\nbeneficial effects of turnover among executives through\nretirements when civil service restrictions make replace-\nment difficult if not impossible. Raising salaries relative\nto pensions would decrease retirements, but would require\nmore aggressive policies to replace high-level civil servants\nwho are no longer as productive as their salary and position\nwould require.\n(4) There is a serious problem of salary compression,\nwhere GS-15 (higher steps) to GS-18 earn the same salary,\nwhich now exceeds that of Executive Level V. Studies of\nthe earnings of Federal Government and private sector workers\nof the same measurable characteristics (e.g., age, schooling,\nwork experience, area, etc.) suggest that Federal civil\nservice earnings exceed those of the private sector. (The\npopular view of low government salaries is supported by\nstudies of state and local government workers.) In addition,\nthe fringe benefits (health insurance, pensions, and stability\nof employment) are generally superior in the Federal sector.\nThe compression appears to be the result of salaries that\nare \"too high\" for the lower grades near the compression\n(G6-14-16) rather than too low at the upper end (GS-17-18,\nExecutive Level V). Unfortunately, the report does not\nconsider this problem when mentioning the problem of salary\ncompression.\n-3-\n(5) The report correctly points out that there is\nno necessary link between the salaries in the three branches\nof government. Separate salary schedules would be more\nappropriate.\n(6) Since most persons in Executive Level I-V positions\nare in government temporarily, and withdraw their contribu-\ntions to the pension fund upon.departure, the recommendation\nthat they be permitted to defer contributions to the pension\nplan until the fifth year seems warranted. In the jargon\nof the report, this would ease their cash flow problem.\n(7) The recommendation of a $5,000 per year housing\nallowance for members of Congress with two residences seems\nunwarranted. We should move away from categorical, non-\ntaxable supplements to income to a system in which compensa-\ntion is in the form of salaries subject to taxation. This\nfacilitates the public's awareness of the income of members\nof Congress and promotes greater equity between members of\nCongress with different levels of other income.\n(8) With regard to conflict of interest, the Commission\nrecommends:\na. periodic disclosure of financial affairs --\nincome, by source and amount, gifts, debts\nand personal holdings.\nb. Rigorous restrictions on outside incomes.\nC. Strict conflict of interest provisions with\nregard to investments (blind trusts).\nd. More consistent and explicit rules on post-\nservice employment. Implicit call for ending\nthe \"revolving door\" between government and\nindustry, but no time frame indicated.\n(9) The Commission report calls for a permanent\nQuadrennial Commission, consisting of private citizens,\nto review salary levels and pension provisions.\nTHE WHITE HOUSE\nWASHINGTON\nDecember 14, 1976\nMEMORANDUM FOR:\nTHE PRESIDENT\nFROM:\nJACK MARSH July\nBelow follow my recommendations salary levels:\nVice President\n$75,000\nChief Justice\nSpeaker of the House\nAssociate Justice\n$70,000\nExecutive Level I\nPresident Pro-Tem\n$65,000\nMajority Leaders\nMinority Leaders\nJudges--Circuit Court of Appeals\nSenators\n$50,000\nRepresentatives\nResident Commissioner of Puerto Rico\nJudges--Court of Claims\n$48,000\nJudges--Court of Military Appeals\nJudges--Court of Customs & Patent\nAppeals\nJudges- U. S. District Court\nJudges--Customs Court\n$45,000\nJudges--Tax Court\nExecutive Level II\n$49,000\nComptroller General\n$49,000\nExecutive Level III\n$47,000\nAssistant Comptroller General\n$45,000\nDir., Administrative Office--\nU.S. Courts\n$45,000\nExecutive Level IV\n$43,000\n-2-\nI have not gone below the pay chart for Executive\nLevel IV. However, I would recommend raises that\nare commensurate with the increases shown above.\nI do, however, think a 20% increase for Bankruptcy\nJudges is sufficient.\nTABLE 2\nCOMMISSION ON EXECUTIVE, LEGISLATIVE AND JUDICIAL SALARIES\nTHE PRESIDENT SAB SEEL\nRECOMMENDED SALARY LEVELS\nPRESENT\nRECOMMENDED\nPERCENT INCREASE\nVice President\n$65,600\n$80,000\n22.0%\nChief Justice\n65,600\n80,000\n22.0%\nSpeaker of the House\n65,600\n80,000\n22.0%\nAssociate Justice\n63,000\n77,500\n23.0%\nExecutive Level I\n63,000\n67,500\n7.1%\nPresident Pro-Tem, Majority and Minority Leaders\n52,000\n65,000\n25.0%\nJudges - Circuit Courts of Appeals\n44,600\n65,000\n45.7%\nJudges - Court of Claims\n44,600\n65,000\n45.7%\nJudges - Court of Military Appeals\n44,600\n65,000\n45.7%\nJudges - Court of Customs and Patent Appeals\n44,600\n65,000\n45.7%\nJudges - U.S. District Courts\n42,000\n62,000\n47.6%\nJudges - Customs Court\n42,000\n62,000\n47.6%\nJudges - Tax Court\n42,000\n62,000\n47.6%\nExecutive Level II\n44,600\n60,000\n34.5%\nComptroller General\n44,600\n60,000\n34.5%\nSenators, Representatives, Resident Commissioner of Puerto Rico\n44,600\n57,500\n28.9%\nExecutive Level III\n42,000\n57,000\n35.7%\nAssistant Comptroller Geheral\n42,000\n57,000\n35.7%\nDirector - Administrative Office - U.S. Courts\n42,000\n57,000\n35.7%\nExecutive Level IV\n39,900\n53,000\n32.8%\nGeneral Counsel - GAO\n39,900\n53,000\n32.8%\nLibrarian of Congress\n39,900\n53,000\n32.8%\nPublic Printer\n39,900\n53,000\n32.8%\nArchitect of the Capitol\n39,900\n53,000\n32.8%\nCommissioners - Court of Claims\n37,800\n53,000\n40.2%\nDeputy Director - Administrative Office - U.S. Courts\n37,800\n53,000\n40.2%\nBankruptcy Judges (full time)\n37,800\n53,000\n40.2%\nExecutive Level V\n37,800\n49,000\n29.6%\nDeputy Librarian of Congress\n37,800\n49,000\n29.6%\nDeputy Public Printer\n37,800\n49,000\n29.6%\nAssistant Architect of the Capitol\n37,800\n49,000\n29.6%\nBankruptcy Judges (part time)\n18,900\n26,500\n40.2%\nBoard of Governors, U.S. Postal Service\n10,000\n10,000\n0%\nPETERSON\nPHIL BUCHEN\nJIM CANNON\nJIM LYNN\nJACK MARSH\nBRENT SCOWCROFT\nBILL SEIDMAN\nCOMMISSION\nRECOMMENDATION\nRECOMMENDATION\nRECOMMENDATION\nRECOMMENDATION\nRECOMMENDATION\nRECOMMENDATION\nRECOMMENDATION\n*\nVICE PRESIDENT\n$ 30,000\n$ 74,200\n$ 80,000\n$\n?h\n$ 75,000\n$ 70,000\n$ 80,000\nCHIEF JUSTICE\n80,000\n74,200\n80,000\n75\n75,000\n70,000\n80,000\nSPEAKER\n80,000\n74,200\n80,000\n75\n75,000\n70,000\n80,000\nASSOCIATE JUSTICE\n77,500\n71,700\n77,500\n79.5\n70,000\n67,500\n75,500\nEXECUTIVE LEVEL I\n67,500\n65,700\n67,500\n65\n70,000\n65,000\n67,500\nPRESIDENT PRO-TEM,\n65,000\nMAJORITY & MINORITY LEADER\n55,000\n59,800\n25\n65,000\n60,000\n65,000\nCOURT OF APPEALS JUDGE\n65,000\n56,800\n59,500\n65\n65,000\n53,000\n65,000\nDISTRICT COURT JUDGE\n62,000\n54;000\n57,000\n55\n48,000\n51,500\n62,000\nEXECUTIVE LEVEL II\n60,000\n53,800\n59,500\n52.5\n49,000\n52,500\n60,000\nSENATORS AND REPRESENTATIVES\n57,500\n56,800\n59,500\n55\n50,000\n50,000\n65,000\nEXECUTIVE LEVEL III\n57,000\n51,000\n55,000\n50\n47,000\n49,500\n57,000\nEXECUTIVE LEVEL IV\n53,000\n47,700\n50,000\n43,000\n47,500\n53,000\nEXECUTIVE LEVEL V\n49,000\n44,500\n46,500\n+\n45,000\n49,000\n*\nGen. Scowcroft does not recommend\nany increases, However, if an\nincrease is to be proposed he\nrecommends above figures in three\nvearly with coiling $70\nTHE WHITE HOUSE\nWASHINGTON\nDecember 15, 1976\nMEMORANDUM FOR:\nTHE PRESIDENT\nFROM:\nMIKE DUVAL\nwhe\nSUBJECT:\nPeterson Commission Report\nAttached at Tab A are staff recommendations concerning the pay\nincreases recommended by the Peterson Commission. Jim Lynn will\nhave his recommendations completed shortly.\nAs you know, Alan Greenspan and Bob Hartmann recommend against an\nincrease.\nSpecific staff comments are attached at Tab B.\nAttachments\nPETERSON\nPHIL BUCHEN\nJIM CANNON\nJIM LYNN\nJACK MARSH\nBRENT SCOWCROFT\nBILL SEIDMAN\nCOMMISSION\nRECOMMENDATION\nRECOMMENDATION\nRECOMMENDATION\nRECOMMENDATION\nRECOMMENDATION\nRECOMMENDATION\nRECOMMENDATION\n*\nVICE PRESIDENT\n$ 80,000\n$ 74,200\n$ 80,000\n$\n$ 75,000\n$ 70,000\n$ 80,000\nCHIEF JUSTICE\n80,000\n74,200\n80,000\n75,000\n70,000\n80,000\nSPEAKER\n80,000\n74,200\n80,000\n75,000\n70,000\n80,000\nASSOCIATE JUSTICE\n77,500\n71,700\n77,500\n70,000\n67,500\n75,500\nEXECUTIVE LEVEL I\n67,500\n65,700\n67,500\n70,000\n65,000\n67,500\nPRESIDENT PRO-TEM,\n65,000\n59,800\n65,000\n65,000\n60,000\n65,000\nMAJORITY & MINORITY LEADER\nCOURT OF APPEALS JUDGE\n65,000\n56,800\n59,500\n65,000\n53,000\n65,000\nDISTRICT COURT JUDGE\n62,000\n54;000\n57,000\n48,000\n51,500\n62,000\nEXECUTIVE LEVEL II\n60,000\n53,800\n59,500\n49,000\n52,500\n60,000\nSENATORS AND REPRESENTATIVES\n57,500\n56,800\n59,500\n50,000\n50,000\n65,000\nEXECUTIVE LEVEL III\n57,000\n51,000\n55,000\n47,000\n49,500\n57,000\nEXECUTIVE LEVEL IV\n53,000\n47,700\n50,000\n43,000\n47,500\n53,000\nEXECUTIVE LEVEL V\n49,000\n44,500\n46,500\n45,000\n49,000\n* Gen. Scowcroft does not recommend\nany increases. However, if an\nincrease is to be proposed he\nrecommends above figures in three\nyearly tranches with top cdiling $70.000\nTHE WHITE HOUSE\nWASHINGTON\nDecember 14, 1976\nMEMORANDUM TO:\nMIKE DUVAL\nFROM:\nROBERT T. HARTMANN AA\nSUBJECT:\nPeterson Commission Report\nI am opposed to all these huge increases (maybe\nFederal judges deserve a little more, but not up\nto what the Chief Justice makes now!) -- why do\nwe help Democrats get richer? Let them eat peanuts\nor pass their own raises without our connivance.\nThe public is going to be outraged. I do think,\nhowever, that regular cost of living increases for\nFederal employees should apply to the upper levels\nas well, despite Congress' election year spirit\nof sacrifice.\nTHE WHITE HOUSE\nWASHINGTON\nDecember 14, 1976\nMEMORANDUM FOR THE PRESIDENT\nFROM:\nPHILIP W. BUCHEN\nSUBJECT:\nRecommendation on Salary Levels for\nPositions Covered by Peterson\nCommission Report\nThe attached recommendations by dollar amount are\narrived at as follows:\n1. The Peterson Commission recommenda-\ntion of $57,500 for Senators and\nRepresentatives is adjusted to\n$65,000 so as to be in line with\nthe Court of Appeals Judges.\n2. Then, after this adjustment is made,\nall recommendations of the Commission\nare adjusted to achieve 60% approxi-\nmately of Commission-recommended\nincreases.\nThis method has the virtue of not materially\ndisturbing the relations between the Commission-\nrecommended increases for the different positions,\nwhile at the same time reducing the total dollar\namount of each increase. Alternatively, the\nfigure in item 2 of the calculation method could\nbe 50% instead of 60%.\nAttachment\nEXHIBIT II\nPETERSON COMMISSION\nRECOMMENDATION\nRECOMMENDATION\nBY: T.W.B.\nVICE PRESIDENT\n$ 80,000\n$74,200\nCHIEF JUSTICE\n80,000\n74,200\nSPEAKER\n80,000\n74,200\nASSOCIATE JUSTICE\n77,500\n71,700\nEXECUTIVE LEVEL I\n67,500\n65,700\nPRESIDENT PRO-TEM, MAJORITY\n65,000\nAND MINORITY LEADER\n59,800\nCOURT OF APPEALS JUDGE\n65,000\n56,800\nDISTRICT COURT JUDGE\n62,000\n54,000\nEXECUTIVE LEVEL II\n60,000\n53,800\nSENATORS AND REPRESENTATIVES\n57,500\n56,800\nEXECUTIVE LEVEL III\n57,000\n51,000\nEXECUTIVE LEVEL IV\n53,000\n47,700\nEXECUTIVE LEVEL V\n49,000\n44.500\nTHE CHAIRMAN OF THE\nCOUNCIL OF ECONOMIC ADVISERS\nWASHINGTON\nDecember 14, 1976\nMEMORANDUM FOR MIKE DUVAL\nFROM: ALAN GREENSPAN\nA\nThis is in response to your request for my comments on\nthe salary schedule proposed in the Peterson Commission report\non executive, legislative and judicial salaries. I do not\nfeel that the CEA has sufficient expertise to comment on the\nstructure of the salary scale, that is, on the relative salary\nrankings for the various positions listed in your memo.\nHowever, as I indicated in detail in my memo of\nDecember 8 to Jim Connor (copy attached), I believe that the\nsalary increases recommended by the Peterson Report are far\ntoo large and should not be approved by the President.\nThe Peterson report did not offer adequate evidence that\nlarge salary increases are warranted at this time. There\nis no clear evidence that the current salary schedule fails\nto attract and retain high quality persons. On the basis of\nempirical studies, it appears that the salary compression\nmay be due to civil service salaries for the super-grades\nthat are too high, rather than executive salaries that are\ntoo low. Given the continued high level of unemployment,\nour efforts to discourage high wage increases in the private\nsector, and our objective of limiting the growth in the\nFederal sector, I believe it would be inappropriate, as\nwell as embarrassing, to endorse salary increases of 22 percent\nto 47 percent as recommended by the Commission.\nPAEERICAN REVOLUTION INDENTENNIAL\n1776-1976\nTHE CHAIRMAN OF THE\nCOUNCIL OF ECONOMIC ADVISERS\nWASHINGTON\nDecember 8, 1976\nMEMORANDUM FOR JIM CONNOR\nFROM:\nALAN GREENSPAN\nSUBJECT: Report of Commission on Executive, Legislative\nand Judicial Salaries\nThe report does not offer convincing evidence that\nthe current pay schedule for high-level government officials,\ncivil service or appointed, is inefficient for satisfying the\ngovernment's requirements for executives. I have no\nobjections to the overall structure of the report. However,\nthe report does not adequately establish the case for the\nproposed salary structure. It would be difficult to defend a\nsudden increase of 20 to 47 percent for high-level govern-\nment officials given that they did not experience unemployment\nin the last few years. Gradual increases would be viewed\nas more reasonable. Since the proposed wage increases are\narbitrary, the Administration is best off endorsing the\nprinciple of gradual increases, without endorsing the\nparticular magnitudes. The standards of conduct (item 8\nbelow) should be sufficiently broad as to avoid particular\nproblems that specific standards might entail. The report\ncould be released in the interest of promoting full public\ndiscussion of these issues, with a Presidential endorsement\nof relaxation of salary caps and stronger conflict of interest\nprovisions, but without endorsing the specifics of the Com-\nmission report. Some more detailed comments follow.\n(1) The report indicates that nongovernmental executives\ntend to view a government job as a form of investment in\ntraining. The sacrifice of earnings to take the job\n(23 percent on average) is more than compensated for by the\nrise in earning opportunities after leaving government\n(on average an 84 percent rise in salary over the govern-\nment level when return to private sector.) Apparently,\nthe government employment broadens their experiences and\nmakes them more valuable in the private sector. The report\ndoes not present evidence that these persons are less\nREVOLUTION\nAMERICAN\nBICENTENNIAL\n1776-1976\n-2-\neffective in the government job than others who prefer\nnot to undertake this form of investment.\n(2) The report indicates that among career civil\nservants in the super-grades the cap on salaries makes\ngovernment jobs less attractive than private sector jobs.\nThis ignores many attractive benefits of government employ-\nment including the relatively high pension with early\nretirement provisions and the stability of employment.\nIn part, middle-level private sector executives receive\nhigh salaries because of the uncertainty of employment\nand problems of reemployment if they lose their job. The\nattractive alternative for super-grades appears to be\nretirement with the government pension, rather than leaving\ngovernment for another executive position prior to retire-\nment age. This raises the question as to whether the\npension is too generous for the super-grades. In addition,\nthe report ignores the problem of grade-inflation in the\nlast few years.\n(3) The report does hot address the issue of the\nbeneficial effects of turnover among executives through\nretirements when civil service restrictions make replace-\nment difficult if not impossible. Raising salaries relative\nto pensions would decrease retirements, but would require\nmore aggressive policies to replace high-level civil servants\nwho are no longer as productive as their salary and position\nwould require.\n(4) There is a serious problem of salary compression,\nwhere GS-15 (higher steps) to GS-18 earn the same salary,\nwhich now exceeds that of Executive Level V. Studies of\nthe earnings of Federal Government and private sector workers\nof the same measurable characteristics (e.g., age, schooling,\nwork experience, area, etc.) suggest that Federal civil\nservice earnings exceed those of the private sector. (The\npopular view of low government salaries is supported by\nstudies of state and local government workers.) In addition,\nthe fringe benefits (health insurance, pensions, and stability\nof employment) are generally superior in the Federal sector.\nThe compression appears to be the result of salaries that\nare \"too high\" for the lower grades near the compression\n(G6-14-16) rather than too low at the upper end (GS-17-18,\nExecutive Level V). Unfortunately, the report does not\nconsider this problem when mentioning the problem of salary\ncompression.\n-3-\n(5) The report correctly points out that there is\nno necessary link between the salaries in the three branches\nof government. Separate salary schedules would be more\nappropriate.\n(6) Since most persons in Executive Level I-V positions\nare in government temporarily, and withdraw their contribu-\ntions to the pension fund upon departure, the recommendation\nthat they be permitted to defer contributions to the pension\nplan until the fifth year seems warranted. In the jargon\nof the report, this would ease their cash flow problem.\n(7) The recommendation of a $5,000 per year housing\nallowance for members of Congress with two residences seems\nunwarranted. We should move away from categorical, non-\ntaxable supplements to income to a system in which compensa-\ntion is in the form of salaries subject to taxation. This\nfacilitates the public's awareness of the income of members\nof Congress and promotes greater equity between members of\nCongress with different levels of other income.\n(8) With regard to conflict of interest, the Commission\nrecommends:\na. periodic disclosure of financial affairs --\nincome, by source and amount, gifts, debts\nand personal holdings.\nb. Rigorous restrictions on outside incomes.\nC. Strict conflict of interest provisions with\nregard to investments (blind trusts).\nd. More consistent and explicit rules on post-\nservice employment. Implicit call for ending\nthe \"revolving door\" between government and\nindustry, but no time frame indicated.\n(9) The Commission report calls for a permanent\nQuadrennial Commission, consisting of private citizens,\nto review salary levels and pension provisions.\nTHE WHITE HOUSE\nWASHINGTON\nDecember 14, 1976\nMEMORANDUM FOR:\nTHE PRESIDENT\nFROM:\nJACK MARSH July\nBelow follow my recommendation salary levels:\nVice President\n$75,000\nChief Justice\nSpeaker of the House\nAssociate Justice\n$70,000\nExecutive Level I\nPresident Pro-Tem\n$65,000\nMajority Leaders\nMinority Leaders\nJudges--Circuit Court of Appeals\nSenators\n$50,000\nRepresentatives\nResident Commissioner of Puerto Rico\nJudges--Court of Claims\n$48,000\nJudges--Court of Military Appeals\nJudges--Court of Customs & Patent\nAppeals\nJudges--U. S. District Court\nJudges--Customs Court\n$45,000\nJudges--Tax Court\nExecutive Level II\n$49,000\nComptroller General\n$49,000\nExecutive Level III\n$47,000\nAssistant Comptroller General\n$45,000\nDir., Administrative Office--\nU.S. Courts\n$45,000\nExecutive Level IV\n$43,000\n-2-\nI have not gone below the pay chart for Executive\nLevel IV. However, I would recommend raises that\nare commensurate with the increases shown above.\nI do, however, think a 20% increase for Bankruptcy\nJudges is sufficient.\nIMM.\n(ONTRANDIA)\nPRECEDENCE\nCLASSIFICATION\nDEX\nFROM: Jim Carnon\nDAC 224\nGPS\nLDX\nPAGES /\nTO: Dick Cheney for\nTTY\nCITE\nFire President\nINPO:\nDTG:\n1976 DEC 31 19 59\nRELEASED BY: WE\nTOR: 31 2007=\nSPECIAL INSTRUCTIONS:\nMR7\nCONFIDENTIAL\n1\nWHCA FORM 8, 22 FEB 74\nCONFIDENTIAL\nCONF IDENTIAL\nFOR IMMEDIATE DELIVERY\nTHE WHITE HOUSE\nDACOM\nWASHINGTON\nDecember 31, 1976\nJul\nDENT\nMEMORANDUM TO THE PRESIDENT\nFROM:\nJIM CANNON\nSUBJECT:\nComments by Jim Wright\nRepresentative Jim Wright mentioned, after I notified\nhim today of your Puerto Rico announcement, that he\nwould like to convey this message to you:\nI.\nHe talked with Governor Carter on Wednesday night\nabout the Peterson Commission Report on pay increases.\nCarter said he believed that some increase was appro-\npriate but he had not studied the report in detail.\nIn addition, Carter said that he felt that any\nincrease of more than 40 percent would be perceived\nby the public as excessive and would make it difficult\nfor the new administration to hold the line against\ninflationary increases in government and the private\nsector.\nII. Governor Carter also said that he was not going\nto say or do anything to \"sandbag President Ford\"\non his proposals. Wright quoted Carter as saying:\n\"The President has been too nice to me for me to\ndo anything like that.\"\nIII. Representative David Obey and Lee Hamilton have\npromised Wright that they will have substantive\nrecommendations to reform and strengthen Congressional\nethical standards by February 10.\nIV. Wright has talked with his colleagues in the House\nand concluded that if the pay issue does come to\na vote on the floor of the House, it would be\nrejected.\nDetermined to be an administrative marking\nCancelled per E.O. 12356, Sec. 1.3 and\nArchivist's memo of March 16, 1983\nCO INDENTIAL\nBy\nDAD NARS date 3/1/84\nFOR COMMCENTER USE ONLY\nIMM.\nConfidential CL SIFICATION\nPRECEDENCE\nDEX\nFROM: Jim Carnon\nDAC 224\nGPS\nLDX\nPAGES /\nTO: Dick Cherey for\nTTY\nCITE\nthe President\nINFO:\nDTG:\n1976 DEC 31 19 59\nRELEASED BY: WE\nTOR: 312004Z\nSPECIAL INSTRUCTIONS:\nWHITE HOUSE\nONROOM\n'76 DEC 31 PM 20 3:20\n4\nWHCA FORM 8, 22 FEB 74\nS1\nCONFIDENTIAL\nFOR IMMEDIATE DELIVERY\nDACOM\nArchivist's Permo be an of NARS marking\nTHE WHITE HOUSE\nWASHINGTON\nDecember 31, 1976\nJul\nDRP\nBY\nMEMORANDUM TO THE PRESIDENT\nFROM:\nJIM CANNON\nSUBJECT:\nComments by Jim Wright\nRepresentative Jim Wright mentioned, after I notified\nhim today of your Puerto Rico announcement, that he\nwould like to convey this message to you:\nI.\nHe talked with Governor Carter on Wednesday night\nabout the Peterson Commission Report on pay increases.\nCarter said he believed that some increase was appro-\npriate but he had not studied the report in detail.\nIn addition, Carter said that he felt that .any\nincrease of more than 40 percent would be perceived\nby the public as excessive and would make it difficult\nfor the new administration to hold the line against\ninflationary increases in government and the private\nsector.\nII. Governor Carter also said that he was not going\nto say or do anything to \"sandbag President Ford\"\non his proposals. Wright quoted Carter as saying:\n\"The President has been too nice to me for me to\ndo anything like that\n\"\nIII. Representative David Obey and Lee Hamilton have\npromised Wright that they will have substantive\nrecommendations to reform and strengthen Congressional\nethical standards by February 10.\nIV. Wright has talked with his colleagues in the House\nand concluded that if the pay issue does come to\na vote on the floor of the House, it would be\nrejected."
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