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Ronald Reagan Presidential Library
Digital Library Collections
This is a PDF of a folder from our textual
collections.
Collection: Deaver, Michael
Folder Title: ["Buy American" (Steel
Corporation of America)] (1)
Box: 35
To see more digitized collections
visit: https://reaganlibrary.gov/archives/digital-library
To see all Ronald Reagan Presidential Library inventories
visit: https://reaganlibrary.gov/document-collection
Contact a reference archivist at: [email protected]
Citation Guidelines: https://reaganlibrary.gov/citing
National Archives
Catalogue: https://catalog.archives.gov/
THE WHITE HOUSE
WASHINGTON
TO:
Jim Cayne
FROM:
MICHAEL K. DEAVER
Assistant to the President
Deputy Chief of Staff
Information
Action
*********
-BUY AMERICAN-
Prepared for
Michael Deaver
ПОП
STEEL CORPORATION OF AMERICA
October 26, 1983
Mr. Michael K. Deaver
Deputy Chief of Staff and Assistant to the President
The White House Office
1600 Pennsylvania Avenue NW.
Washington, D.C. 20500
Dear Mr. Deaver:
This booklet contains the documentation of an interesting
effort in Americanism.
People often wonder if the letters they write to their
government officials have an impact. Here is one example,
the "Buy American Steel" effort, which proves that your
voice, your vote, can and does make a difference.
If time constraints interfere with the reading of this
entire booklet, I strongly urge that you, at the very least,
read the Commentary, the letter to the Governor, (in Section
1) and the Epilogue (Section 6).
Sincerely yours,
STEEL CORPORATION OF AMERICA
Dr. Ken Lipke
Chairman
STEEL CORPORATION OF AMERICA
P.O. BOX 220
BUFFALO, NEW YORK 14225
COMMENTARY
Comments by Dr. Ken Lipke, Chairman, Steel Corporation of America
Re New York Times article by Ari L. Goldman, Tuesday, August 30, 1983
The "surprise" resignation of Richard Ravitch, Chairman of the
MTA following an unpublicized meeting with Governor Cuomo climaxes
a controversy that has focused national attention on the steel
industry and a national issue of major magnitude: "Buy American".
What prompted the Governor's and Ravitch's action is not fully
known. However, while the activity documented in this booklet
may not have been the only factor involved, it certainly helped
to focus attention upon the overall situation.
The same letter that was sent to Governor Cuomo on July 18, 1983
was sent to 398 others including all State Senators and Assemblymen.
It set into motion numerous direct and indirect actions as described
in the documents attached. More are coming in daily.
The intent of the effort was not to harm the man, Richard Ravitch,
who from all indications is a fine person. It however was directed
at the "symbol" he had allowed himself to become. The "Symbol
of flagrant defiance." Defiance of the wishes of the people as
expressed by the elected representatives of the people.
The actions of the Governor, various Senators, Assemblymen and
many others; citizens, press, TV
resulted in this resignation.
There was a dangerous precedent that could have been established
had not this resignation occurred.
Contrastingly the resignation seems to prove once again that the
"Voice of the People" can be heard and that we the people "can
fight City Hall".
STEEL CORPORATION OF AMERICA
July 18, 1983
The Honorable Mario M. Cuomo
Governor of New York State
State Capitol
Albany, NY 12224
Dear Governor Cuomo:
Your efforts to establish an effective "Buy American Steel"
policy for New York State are to be commended, however such
efforts become nothing more than an academic gyration when
a state-related entity such as the Metropolitan Transportation
Authority decides to purchase $53,000,000 worth of Korean
steel for the Throgs Neck Bridge (see attached article).
On Thursday, July 14, 1983 you signed legislation which
extended the state's "Buy American Steel" policy to include
contracts undertaken by public authorities. The ink had barely
dried on that signing when Richard Ravitch, Chairman of the
Metropolitan Transportation Authority, recommended to his
board that the Authority purchase Korean steel for their
bridge renewal project. Apparently Mr. Ravitch has adopted
neither the spirit nor the intent, of the state's "Buy American
Steel" policy, nor has he considered all the ramifications
that his actions will have on the State of New York. It
is short-sighted thinking such as this which has contributed
immensely to the deterioration of one of our most vital
industries. How much will Mr. Ravitch save by buying foreign
steel in the future when Korea, or any other government-owned
or subsidized steel producer, is no longer challenged by
viable domestic competition here in the United States. At
that point Mr. Ravitch will no doubt be compelled to pay
a substantial premium for his steel requirements, if in fact
the steel is available on a timely basis.
Page 1 of 2
STEEL CORPORATION OF AMERICA
P.O. BOX 220
BUFFALO, NEW YORK 14225
Page 2 of 2
Even if we set aside long-range considerations, the State
of New York has much to lose on a short-range basis each
time large steel purchases are directed to foreign sources,
including, (1) lost tax revenues, (2) increased expenditures
for unemployment and re-training allowances, as well as,
(3) job creation costs for attracting new industries and
jobs to replace those lost to subsidized foreign producers.
With respect to the Throgs Neck Bridge project, the savings
on the purchase price of the steel would have to be in excess
of 28%, or $15,000,000, in order to compensate for the loss
in revenue and additional expenses to the State of New York.
Mr. Ravitch, and all heads of state agencies and authorities,
must realize that you can't have your cake and eat it too.
You can't buy cheap subsidized foreign steel and still have
a strong domestic steel industry and a healthy state economy.
And any agency head or authority chairman, including Mr.
Ravitch, who has not learned this most fundamental lesson
by now should be replaced by people who have. To do anything
less would be to have a "Buy American Steel" policy which
is nothing but a charade.
Because of the extreme importance of this matter, I am seeking
your support, and the support of all elected officials, in
demanding the resignation of Mr. Ravitch as Chairman of the
Metropolitan Transportation Authority. If he were to continue
in his present position, a most unfortunate precedent would
be established which would make any "Buy American Steel"
policy totally ineffective.
I am most anxious to hear your thoughts on this very important
issue.
Sincerely,
STEEL CORPORATION OF AMERICA
Dr. Ken Lipke
Chairman
Smw
The Buffalo News/Friday, July 15, 1983
Buy American-Steel,
Public Authorities Told
United Press International
bills that:
ALBANY - New York State's
Farm Values-Require local
"Buy-American-Steel" policy
assessors to notify, on Jan. 1, 1984,
applies now to purchases made by
farmers applying for special
public authorities as well as to
property tax exemptions of the
products bought by state agencies.
values placed on the "agricultural"
Gov. Cuomo signed the measure
and "non-agricultural" portions of
into law Thursday, saying, "Enact-
the farm property by Jan. 1, 1984.
ment of this legislation will empha-
Dock Permits-Eliminate the
size the state's efforts to assist the
need to get a Department of Envi-
domestic steel industry." It was
ronmental Conservation permit to
sponsored by Assemblyman Vincent
build or repair permanent timber
Graber, D-West Seneca.
docks of more than 200 square feet.
The law is of special significance
Owners of seasonal lake docks were
in the wake of an announcement by
not affected by the previous permit
Bethlehem Steel Corp. that it would
requirement.
shut down steelmaking at its
Family Court-Clarify the ar-
Lackawanna plant later this year,
raignment option for defendants in
putting nearly 7,500 people out of
Family Court. Under existing law,
work.
a battered spouse has the option of
In May, Gov. Cuomo made
having the assault treated in Fami-
permanent a law first passed in
ly Court while prosecuted as a
1981 that establishes a preference
criminal act.
for American-made steel in any
The new law emphasizes the
construction contracts undertaken
alternatives available when a re-
by state agencies. Thursday's sign-
peat incident occurs after an order
ing extended that policy to con-
of protection has been issued, based
tracts undertaken by public author-
on the nature of the incident and
ities, which contract for millions of
the relationship of the individuals
dollars in construction yearly.
involved.
Both laws stipulate that domes-
State Sen. Jess J. Present, R-
tic steel should be used on con-
-Jamestown, and Assemblyman
tracts valued at $100,000 or more,
James Wesley, R-Geneseo, explain-
unless agency or authority officials
ed that people arrested for family
deem the preference would result in
offenses when Family Court is not
unreasonable costs, or not be in the
in session are often taken before
general public interest.
magistrates unfamiliar with the
Gov. Cuomo also signed into law
Family Court Act.
The Buffalo News/Sunday, July 17, 1983
Korean Steel for Bridge OK'd
NEW YORK (AP) - The board
ard Ravitch, who noted that public
of the Metropolitan Transportation
authorities are exempt from "buy-
Authority has voted to buy $53 mil-
American" legislation when it
lion worth of Korean steel for
would result in unreasonable costs.
renewing the deck that supports the
Mr. Ravitch said the authority
roadway on the Throgs Neck
will save $3.5 million by awarding
Bridge.
the steel contract to a South Korean
The weekend action followed the
firm. The left-over money will be
recommendation of chairman Rich-
used for other capital projects.
TABLE OF CONTENTS
SECTION 1 BACKGROUND
SECTION 2
NYS SENATORS' RESPONSES
SECTION 3
ASSEMBLYMEMBERS' RESPONSES
SECTION 4
GOVERNMENT OFFICIALS' RESPONSES
SECTION 5 EPILOGUE
-------------------
SECTION 1
BACKGROUND
JUNE 1983
S.1368-A/A.1589-A
Bethlehem Steel Corporation
FACTS ABOUT "BUY AMERICAN" AND JOBS IN NEW YORK STATE
An important Buy American proposal is being considered
by the New York State Legislature. If enacted into law,
this bill could provide 108,000 man-hours of work for
steelworkers at Bethlehem Steel's Lackawanna operations,
and support 216,000 man-hours of work in the Niagara
Frontier area. A total of 324,000 man-hours of work.
In addition, this legislation would, in general, enhance
the viability of Bethlehem's Lackawanna facilities.
More Than 300,000 Tons
State public authorities in New York State use a lot of steel. Their capital
projects alone will consume 315,000 tons of steel (including 45,000 tons of galvanized)
in fiscal year 1983-84 that will be subject to domestic preference if .1368-A/A.1589-A
becomes law.
Imports A Big Factor
Imported steel can and does enter New York State through several Great Lakes-Canadian
Border and Atlantic Coast ports. This high degree of exposure makes the Empire State
vulnerable to an import-penetration rate well above the national average. It has been
estimated that while imports will account for about 20% of steel consumption in the
United States this year, the figure for New York State will be half again as great at
30%. It is estimated that without the enactment of this Buy American proposal
(S.1368-A/A.1589-A), foreign steel will account for 30% of the 315,000 tons of steel that
will be used in the capital projects of State public authorities.
Jobs At Lackawanna
As a result of their location in New York State, Bethlehem's Lackawanna operations
would have a reasonable chance to replace all of the foreign galvanized steel tonnage
displaced through the enactment of this Buy American proposal. This means that enactment
of S.1368-A/A.1589-A could provide Bethlehem's Lackawanna facilities with a much-needed
opportunity: to produce 13,500 tons (30% of 45,000 tons) of galvanized sheet and
galvanized products that otherwise would come from foreign suppliers.
If the Lackawanna facilities were to produce an additional 13,500 tons of galvanized
sheet and products, this would provide 108,000 man-hours of work. Through the beneficial
impact on the facilities' local suppliers and the economic activity flowing from the
spending of steelworker wages, an additional 216,000 man-hours of work would be supported
in the Niagara Frontier area. That's a total of 324,000 man-hours of work that could be
sustained by enactment of S.1368-A/A.1589-A. Beyond that, this legislation would enhance
the general viability of Bethlehem's Lackawanna operations.
The Throgs Neck Bridge: A Case in Point
The Triborough Bridge and Tunnel Authority is having the decking of the Throgs Neck
Bridge replaced. This project will utilize approximately 15,000 tons of steel,* including
4,028 tons of "orthotropic rib sections." "
Bethlehem's Lackawanna operations can produce orthotropic rib sections. And if the
contractor for the redecking project were to purchase the 4,028 tons of orthotropic rib
sections from Bethlehem, that order would provide 12,500 man-hours of work at the
Lackawanna facilities. This, in turn, would support an additional 25,000 man-hours of
work in the Niagara Frontier area, for a total of 37,500 man-hours of work.
June 1983
THE
THE AMERICANS THE AMERICANS HARE BACK BACK BACK BACK ARE BACK BACK BACK BACK I
THE AMERICANS THE AMERICANS AMERICANS
R.I.S.E.
REVIVAL IN STEEL EMPLOYMENT
In a spectacular ad in the Buffalo News of
May 19, a national union called
Advisory Board
attention to the fact that U.S. Steel was
Sponsored by
proposing to import 30 million tons of
concerned citizens to continue
British steel rather than updating their
steelmaking in Western New York
basic steelmaking facilities. R.I.S.E.
Honorary Chairman:
JOINS WITH ALL STEEL
AND OTHER UNIONS IN
RON JAWORSKI
opposing this policy and would
Chairman: GEORGE MORRISON
like to make the following
HERBERT FREY
statement to the citizens of
FR. SR. MATTHEW J. KUBIK
JOE CARDINALE
Western New York.
MATTHEW W. PELCZYNSKI
GENEVIEVE M. (Jane) STAROSCIAK
DR. ROBERT S. MARSHALL
REV. DARREL MITCHELL
ANDREW L. CIOLEK
A TIME TO HONOR
We believe that these facilities should be locally managed with employee
FRANK DENI
participation in the ownership. The interests of management must be
JOHN R. SHEARER
As we come next week to the day we honor those who have given their lives
centered in the community where the facility is located and we believe that
RICHARD B. SOLECKI
GEORGE A. VOSSLER
in the defense of America, we the citizens of this great industrial area also
labor should rightfully share in the profits of a successful community-based
ALICE M. POSLUSZNY
honor those men who have manned the great steelmaking facilities, and
steel plant.
ALFRED A. WEBER
produced the steel that was the basic material that won two great world
CLARA G. WEBER
wars.
Steel industry data indicates that the cost of making steel locally must be
DOROTHEA STERNE
VINCENT GRABER
reduced substantially in order to be competitive. Along with other necessary
EUGENE WOODARD
A TIME TO REFLECT
cost-reduction measures, knowledgeable industry personnel indicate that a
RON CARDINALE
base labor rate of $16,000 per year would make it possible to achieve a
GARY CARDINALE
profitable status at local steelmaking facilities. If that level of compensation,
GLEN ECHEVERRIA
As we talk about stockpiling atomic weapons and rebuilding our nation's
combined with a share of the plant's profits, interests you, complete the
BILL JAWORSKI
JACK WHEELER
defense systems, in order to keep America strong, and thus avert another
employment data form below.
KEN CYBULSKI
war. we as a concerned citizens' committee seriously question the adequacy
FRANCIS FLIS
of our defense system if we at the same time close our basic steelmaking
A TIME FOR ACTION
ROBERT BROSTKO
facilities. These facilities have been the backbone of our national strength.
FRED DYCHA
DAVID KLUBEK
We cannot and will not be strong with only expendable weapons systems,
MIKE ANTECKI
without our major strength--basic steelmaking and heavy industry.
In order to accomplish our mutual goals we will need to join educational,
FRANCIS CHARNEY
Without these we will be vulnerable to any external enemy.
labor, management, government, financial institutions and together make
JOHN FLIS
this goal a reality.
LARRY ZAWADSKI
RONAL WILKE
We commend those forces in Western New York in their attempts to save
GARY SZANY
our steel plants. Whether those forces are labor, management,
This committee would like to take your responses to our government
LOUIS KLUBEK
government,education, or business people, they are worthy of the support
officials, to financial institutions, and to any forces interested in the revival
AL PULINSKI
RICHARD WEGRYN
of this entire community for their tireless efforts.
of basic steelmaking in western New York. We must become a team. United
MARK KAUFFMAN
we stand, but divided we and our steel plants will fall.
NASSAR AFFIFF
We believe the cause is not lost, and that steelmaking can be saved in
EMIL BROSTKO
Western New York.
We join with the steelworkers of America to fight proposals which would not
JOHN CRUMPET
maintain or modernize steelmaking facilities. We invite all citizens of Western
JOE DE ROUSSEAU
LAWRENCE WEGRYN
A TIME TO JOIN FORCES
New York to join together to revive our community and strengthen our
KEVIN KIND
nation and keep it strong.
RONALD SZEMATOWICZ
We believe this would be possible if this community would rise up and be
RICHARD FLIS
counted. We need thousands of people who will fight to keep these plants,
If you are seeking employment, this committee will be willing to submit your
DON PALCZEWSKI
RAY THOMAS
thousands who will join together to write letter, to march on Albany, and on
name to any person or coalition desiring to revive steelmaking in western
RICHARD HEFFERLY
Washington, and to let this nation know that we are serious about saving our
New York. We will request that those who respond and support our proposal
JOHN RISTAU
steelmaking facilities and our jobs.
be considered first for any possible employment opportunities which may
EDWARD GEMZA
result from this effort.
ELMER DOHERTY
DALE LOCKWOOD
BOB HASBIN
MARK DUBIK
PHIL FURGALA
Join us in writing your elected officials listed below
JOHN TROYAN
WALTER SOROKA
The Honorable Mayor James D. Griffin
The Honorable Mayor Thomas E. Radich
The Honorable Jack F. Kemp, Congr.
The Honorable Mario Cuomo
DAVE CYBULSKI
Room 201 City Hall, Buffalo, NY 14202
714 Ridge Road, Lackawanna, NY 14218
2235 Raybum House Office Building
Governor of New York
REGINALD RANSOM
BILL FURGAL
Washington, D.C. 20515
State Capital, Albany, NY 12224
The Honorable Edward J. Rutkowski
ERNIE DUMA
Erle County Executive
The Honorable Henry J. Nowak, Congr.
The Honorable John J. LaFalce, Congr.
DOUG SOROKA
95 Franklin St., 16th Floor,
1514 Longworth House Office Building
2447 Rayburn House Office Building
JOHN TROYAN JR.
JIM WALSH
Buffalo, NY 14202
Washington, D.C. 20515
Washington, D.C. 20515
JOHN VELENTI
JOHN MARSILLO
JOE COLON
FRANK MASELLA
PAT MARSILLO
ANDY NUSINSKI
PAUL WORLEY
JOE KASMERICK
JOHN JAROZ
JEFF JAROZ
JOHN FLYNN
JOE MATJUCHIN
JOHN MATJUCHIN
GEORGE MATJUCHIN
LEN POLANCARZ
DENNIS KICK
VINCENT SHATTUCK
ALTON WHEELER
WILLIAM PACKINGHAM
ROBERT WHEEL
ARTHUR CANTIL
BENJAMIN CHRISTINI
HENRY BEVALAQUA
CHARLES COWEN
KEN PETERS
GEORGE SWANNIE
JAMES EWING
TONY VELENTI
DAVE GOWSIOREK
MIKE WALAWENDER
MARK CULLENS
DAVE WALAWENDER
TIM JOHNSON
DAVE PACKARD
PHOTO ROBERT SMITH NEWS
WILLIAM DELLAMORE
JOHN LIBRONT
MR. & MRS. DAVID FENSKE
MR. & MRS. CASIMER KAWALEK
RONALD DANIELEWICZ
MR. & MRS. ZBIGNIEW SOLECKI
"Everything they've ever wanted depended on their being able to earn their own bread with dignity, as steel workers."
LECH SOLECKI
MARGARET SOLECKI
Excerpts from Mario Cuomo's Diary entry
30
Is Amherst Bee
105th Year - Number 14
Williamsville, New York, Wednesday, June 22, 1983
(USPS 024-300)
88 Pages - Three Sections
PubliciJournal
Inside story on Lipke- Bethlehem odyssey
Although Amherst steel executive
to get one more jump out of him. One of
Four days later on May 31, Lipke
Kenneth E. Lipke has aborted plans to
the skeptics was Donohue, who passed
phoned Donohue.
purchase the Bethlehem Steel Corp.'s
his skepticism along to Cuomo.
"Bill, do you still feel the same way
Lackawanna plant, an unpublicized,
In the ensuing weeks, Dr. Lipke, sort of
about the plan,? Lipke asked.
May 27, five-hour meeting between Dr.
a bull-in-the China-shop business execu-
Lipke and State Commerce Commission-
RAY
Donohue assured the steel executive
tive with an unassailable determination
that he did.
er William J. Donohue could well pres-
and confidence, began tugging at the
HERMAN
On June 9, the commerce commission-
age a partial Lipke takeover of the
sleeves of state government to secure
er said publicly, that on the basis of his
steelmaking facility.
help. Not much happened.
BEE'S
May 27 meeting with Lipke, he was
One of the interesting behind the
Finally on May 25, Dr. Lipke, at the
POLITICAL
encouraged about preserving some of the
scenes stories attending Dr. Lipke's four-
behest of associates, confronted Cuomo
COLUMNIST
steelmaking operations at the Lacka-
month odyssey to buy the Lackawanna
during a live telecast of Channel 7's "AM
Buffalo" show. During a question and
wanna plant. Donohue added that his
plant has to do with the circumstances
surrounding his May 27 session with
answer period; the steel executive ner-
with Donohue two days hence, May 27.
view of the Lipke plan had changed "180
Donohue, a former Roman Catholic
vously arose from his front row seat to
On the day in between, May 26, Lipke
degrees" on the basis of his close perusal
priest and executive director of the Erie
and Donohue appeared together on a TV
of it. He said he and Lipke would be
complain to the governor that he had
County Industrial Development Agency
panel. There was a distinct chill in the
meeting again.
received no help from the state.
who was named by Gov. Mario M.
"I am the one possible ray of hope for
air. The thinking was that Donohue had
Five days later on June 14, Lipke
Cuomo to the $61,399-a-year state com-
this community to save steelmaking," he
been dragooned into meeting with Lipke
announced that he was abandoning his
missionership last Dec. 30.
declared.
the following day.
plan for a takeover of the entire Lacka-
After Bethlehem announced last De-
It was less than an exhilerating
On May 27, the chill was still very
wanna plant, but would pursue plans for
cember that it was closing most of its
much in the air when the commerce
a partial takeover.
experience for the governor who has
Lackawanna plant by the end of 1983 at
made the recession-ridden Buffalo area a
commissioner walked in the front door at
Lipke subsequently confided to an
a cost of 7,300 jobs, Dr. Lipke disclosed
top priority in his administration. After
Gibraltar at 4 p.m. The meeting prom-
associate that he had a "terrible credibil-
last Feb. 16 that he was resigning as
a brief but rather spirited TV exchange,
ised to have all the gaiety of a tax audit.
ity problem" up until Donohue's optimis-
chairman of Gibraltar Steel Corp. to
Cuomo told Dr. Lipke to explain his
Donohue and Lipke retired to Lipke's
tic statement on June 9.
devote full time to organizing a drive to
Bethlehem plan to Donohue "so we can
office and were joined by Brian Lipke,
Part of Lipke's credibility problem
purchase and save the Lackawanna
deal with the facts and not just empty
who succeeded his father as chairman of
stemmed from a Feb. 2 confidentiality
plant at a cost of $250-million. The
aspirations."
Gibraltar, and Richard O'Brien, Gibral-
agreement he signed with Bethlehem in
stunning boldness of the Lipke proposal
An hour later, the phone rang at
tar vice president.
which Lipke agreed not to publicly
was greeted with a scoffing disbelief in
Gibraltar's plant on Walden Ave.,
Lipke discussed his Bethlehem takeov-
disclose details of his Bethlehem negoti-
many board rooms around Buffalo. It
Cheektowaga. It was the Commerce
er plan with Donohue at a level of detail
ations. Media queries about the Lipke
seemed to many like poking a dying frog
Dept. in Manhattan. Could Lipke meet
heretofore only discussed with Bethle-
plan had to be greeted with amiable
hem President Walter Williams and
vagueness.
other Bethlehem officials. Donohue, a
However, it was the Lipke-Donohue
skeptic right up to the meeting, seemed
meeting of May 27, triggered in part by
impressed. The session ended on a
the Lipke-Cuomo TV confrontation May
friendly note.
25, which could well pave the way for an
eventual partial Lipke takeover of the
Bethlehem Lackawanna plant. Such are
June 28, 1983
G 3
SECOND FRONT PAGE
Metro
Pennysaver
& Community News
State Project May
Use Foreign Steel
By Roberta Merkling
Hyundai of Korea to
to his two inquiries to the
A State authority is cur-
fabricate and deliver the
governor, Cuomo stated in a
rently preparing to okay a.
road deck panels for erection
press conference on June 14
bid which would result in the
on the bridge which connects
that he was aware of it and
purchase of foreign-made
the Queens to the Bronx.
asked his staff to look into it
steel, a violation of the
The requested intervention
immediately.
State's "Buy American"
would primarily be on the
Other media, however,
law, according to State
Senator Walter Floss.
basis that the awarding of
have reported that the gover-
the contract would be in
nor concluded that public
The 16,000 tons of steel
violation of the New York
authorities are not bound by
needed to replace the deck of
State "Buy American" pro-
present legal provisions giv-
New York City's Throgs
Neck Bridge could be pro-
visions requiring the use of
ing preference to American-
domestic steel in State
made steel in the awarding of
duced at Bethlehem Steel's
Lackawanna plant, the
projects.
State construction
While Senator Floss
contracts."
Senator said.
''I understand that
received no direct response
Continued Inside
Bethlehem has rolled this
steel in the past, and in fact,
recently bid on a project us-
ing this steel for the Golden
State Project May
Gate Bridge in California,'
he added.
Dr. Kenneth Lipke, who
Use Foreign Steel
recently announced a scaled-
Cont. from 2nd Front Page
down version of his takeover
The Throgs Neck Bridge is in
bid aimed at acquiring some
In response to this,
New York State and we
Senator Floss asked Gover-
parts of the 2½-mile-long-
should use New York State
plant, said the units he plans
nor Cuomo to "prevail upon
the Triborough Bridge
businesses and employees.
to acquire would not be able
Authority to delay awarding
While Dr. Lipke is opposed
to produce the steel. but the
this contract pending action
to government subsidizing of
Lackawanna plant could pro-
by the Assembly on a Senate
any industry, he said
duce it up until the end of the
something must be done to
approved Bill. which would
year.
require public authorities to
give the American steel in-
Senator Floss has asked
use American-made steel in
dustry an equal chance to
Governor Mario Cuomo to
compete with the foreign
intervene in the awarding of
procurement and construc-
steel industry.
tion projects."
the contract to the low bid-
"The New York State law
"Foreign countries can't
der. Karl Koch Erecting, Inc.
make the steel at a lower
should be enforced. Dr.
of Cateret. New Jersey for
Lipke said in reference to the
cost. Every other govern-
$32.9 million. The New
ment subsidizes their steel
Jersev firm will be using
"Buy American" provisions.
industry so it can be made at
"Our government feels it can
a lower cost. We have to
save a few dollars at the ex.
pense of its workers, but that
start realizing charity begins
at home."
cost is far greater than pay-
"How are we going to ever
ing the higher price for
change the economic climate
American steel."
in New York State if there
Senator Floss echoed Dr.
continues to be an insen-
Lipke's opinion. If
sitivity on the part of people
Bethlehem, indeed, can pro-
in positions of authority in
duce this steel, they should
this State?" Senator Floss
be given the opportunity.
said.
THE BUFFALO NEWS
Thursday, July 7, 1983
Williams Asks Cuomo
To Sign Steel Bill
Bethlehem Steel Corp. president
Mr. Williams also said the gal-
Walter F. Williams Wednesday
vanized plant could produce the
urged Gov. Cuomo to sign the so-
4,000 tons of ribbed steel sections
called "Buy American Steel Bill,"
needed for this year's scheduled re-
which would require New York
decking of the Throgs Neck Bridge
State's public authorities to use
in New York City.
domestically made steel on most
"If the ribbed steel sections for
contruction projects.
this one project were awarded to
Mr. Williams said the bill could
the Lackawanna plant, over 12,000
especially benefit Bethlehem's gal-
man-hours of work would be creat-
vanized steel finishing mill at
ed," Mr. Williams said.
Lackawanna, one of the two major
The bill must be approved or
facilities Bethlehem plans to keep
vetoed by Gov. Cuomo by Monday.
in operation here after it discontin-
It would require all state public au-
ues basic steel production later this
thorities to award large steel con-
year.
tracts to U.S. suppliers unless the
Noting that New York's public
head of the authority decides the
authorities plan to consume about
steel required is not available in
300,000 tons of steel during the next
sufficient quantity or quality or is
fiscal year, Mr. Williams said about
priced unreasonably high.
45,000 of those tons would be gal-
vanized steel of the type produced
A Bethlehem spokesman said
at Lackawanna.
passage of the bill and the success
"If you approve the bill
or failure of bids would have no
gal-
vanized steel produced at Lacka-
bearing on the company's plans to
wanna might capture a significant
shut down basic steelmaking opera-
tions at Lackawanna later this
percentage of this important mar-
ket and each ton of galvanized steel
year.
produced at Lackawanna will
Steel coil for the galvanizing mill
create employment for our steel-
will be provided from Bethlehem's
workers. our suppliers and the
plant in Burns Harbor, Ind. after
Niagara Frontier economy in gener-
the Lackawanna steelmaking facili-
al," Mr. Williams said.
ty closes.
The Buffalo News/Friday, July 15, 1983
Buy American-Steel,
Public Authorities Told
United Press International
bills that:
ALBANY - New York State's
Farm Values-Require local
"Buy-American-Steel'" policy
assessors to notify, on Jan. 1, 1984,
applies now to purchases made by
farmers applying for special
public authorities as well as to
property tax exemptions of the
products bought by state agencies.
values placed on the "agricultural"
Gov. Cuomo signed the measure
and "non-agricultural" portions of
into law Thursday, saying, "Enact-
the farm property by Jan. 1, 1984.
ment of this legislation will empha-
Dock Permits-Eliminate the
size the state's efforts to assist the
need to get a Department of Envi-
domestic steel industry." It was
ronmental Conservation permit to
sponsored by Assemblyman Vincent
build or repair permanent timber
Graber, D-West Seneca.
docks of more than 200 square feet.
The law is of special significance
Owners of seasonal lake docks were
in the wake of an announcement by
not affected by the previous permit
Bethlehem Steel Corp. that it would
requirement.
shut down steelmaking at its
Family Court-Clarify the ar-
Lackawanna plant later this year,
raignment option for defendants in
putting nearly 7,500 people out of
Family Court. Under existing law,
work.
a battered spouse has the option of
In May, Gov. Cuomo made
having the assault treated in Fami-
permanent a law first passed in
ly Court while prosecuted as a
1981 that establishes a preference
criminal act.
for American-made steel in any
The new law emphasizes the
construction contracts undertaken
alternatives available when a re-
by state agencies. Thursday's sign-
peat incident occurs after an order
ing extended that policy to con-
of protection has been issued, based
tracts undertaken by public author-
on the nature of the incident and
ities, which contract for millions of
the relationship of the individuals
dollars in construction yearly.
involved.
Both laws stipulate that domes-
State Sen. Jess J. Present, R-
tic steel should be used on con-
Jamestown, and Assemblyman
tracts valued at $100,000 or more,
James Wesley, R-Geneseo, explain-
unless agency or authority officials
ed that people arrested for family
deem the preference would result in
offenses when Family Court is not
unreasonable costs, or not be in the
in session are often taken before
general public interest.
magistrates unfamiliar with the
Gov. Cuomo also signed into law
Family Court Act.
The Buffalo News/Sunday, July 17, 1983
Korean Steel for Bridge OK'd
NEW YORK (AP) - The board
ard Ravitch, who noted that public
of the Metropolitan Transportation
authorities are exempt from "buy-
Authority has voted to buy $53 mil-
American" legislation when it
lion worth of Korean steel for
would result in unreasonable costs.
renewing the deck that supports the
Mr. Ravitch said the authority
roadway on the Throgs Neck
will save $3.5 million by awarding
Bridge.
the steel contract to a South Korean
The weekend action followed the
firm. The left-over money will be
recommendation of chairman Rich-
used for other capital projects.
Bethlehem Steel Corporation
DISTRICT SALES OFFICE: ONE MARINE MIDLAND CENTER
RICHARD D. SAWYER
MAIL: BOX 189
SYRACUSE SALES OFFICE
MANAGER OF SALES
T. G. MEGAS
CHARLES J. CHASAR
BUFFALO, NY 14240
RESIDENT MANAGER
ASSISTANT MANAGER OF SALES
DALE E. CUNNINGHAM
PHONE: 471-4333
CONTRACTING MANAGER
AREA CODE 315
BETHEEHEM
STEEL
July 20, 1983
Dr. Kenneth E. Lipke
Chairman
Steel Corporation of America
2555 Walden Avenue
Buffalo, New York 14225
Dear Ken:
Governor Cuomo's signing of the New York State Buy-American Senate
Bill 1368-A was accomplished last week. We appreciated your efforts
to help persuade the governor to approve this legislation. We believe
your discussions with Commerce Commissioner Donahue played an
influential part in reaching the governor.
While we have been encouraged by the signing of this Bill, it is regret-
able to report the Metropolitan Transit Authority on Friday, July 15th,
awarded the Throgs Neck Bridge Project to Karl Koch Erecting who will
furnish foreign (South Korean fabricator utilizing Japanese steel) material.
We must continue to work together monitoring all future State Public
Authorities procurement in an effort to avoid repetition of the MTA decision.
Again, please accept our thanks for your immediate attention to our mutual
concern.
Very truly yours,
Chuck
Sales Manager
CJC:jad
CC: B E Davis - Bethlehem - 410 MT
THE BUFFALO NEWS
August 4, 1983
Bethlehem Seeking
MTA Bridge Work
Bethlehem Steel Corp.'s Lacka- the Metropolitan Transportation
wanna plant, which is scheduled to
Authority, announced the foreign
be permanently closed this fall,
steel contract one day after Gov.
may pick up some extra work if the
Cuomo signed into law legislation
state can divert a $16 million order
requiring all state agencies and au-
that now is headed overseas.
thorities to buy American products
State Commerce Commissioner
unless that action would result in
William Donohue is putting pres-
"unreasonable cost."
sure on New York City's Metropoli-
Buying American would add $3.5
tan Transportation Authority to re-
million to the $33 million that the
verse its plans to buy Korean steel
MTA plans to spend on the Throgs
for repairs to the Throgs Neck
Neck Bridge. The MTA rejected the
Bridge in Manhattan.
additional cost as "unreasonable."
Assemblyman William J. Larkin
Jr., R-New Windsor, arranged a
David Plotkin, president of Steel
meeting Tuesday between Mr.
Style, said that while the Buy
Donohue, executives of the Beth-
American option would cost more,
lehem Steel Corp. and two down-
it would pay back the suburban
state steel fabricators.
MTA service district residents who
Under Mr. Donohue's plan, raw
now pay more for MTA service
steel made in Lackawanna would
than they receive.
be processed into bridge compo-
Furthermore, he said, because
nents by Steel Style Inc. of New
his company and Quickway can
Windsor and Quickway Metal
produce wider bridge panels than
Fabricators of Monticello.
those made by the foreign steel
Mr. Donohue's deal would pro-
companies, the project could be
vide the Lackawanna plant with an
completed quicker and with fewer
order for 15,000 tons of steel. and
traffic interruptions.
would create valuable work for 200
Buying American in this case
employees at the two steel fabricat-
also would help the devastated steel
ing firms.
mill area of Buffalo, Mr. Plotkin
Richard Ravitch, chairman of
said.
LANCASTER/DEPEW
AUGUST 4, 1983
Volker 'disappointed' by decision
to use foreign steel for project
Sen. Dale Volker (R-C Depew), sponsor
of the Senate version of the "Buy
bridge renovation project that will use
Korean and Japanese steel.
American" Steel law for state authori-
ties recently said that "the Metropolitan
"The Throgs Neck Bridge roadway
Transportation Authority has given the
will be paved with good intentions, but
egislature, the Governor, the steel
foreign steel," he said, referring to MTA
Ravitch's comment that American Steel
workers and people of the state the
brush-off."
would have raised the contract price by
about $3.5 million.
His comment followed information
Volker added that he belived the MTA
that the MTA has agreed to a $33 million
acted within the law.
The Buffalo News/Saturday, August 6, 1983
2 Lawmakers
Would Fire
MTA Chief
By TOM BUCKHAM
Two Erie County legislators
Friday urged Gov. Cuomo to re-
move the chairman of the New
York Metropolitan Transportation
Authority for purchasing foreign
steel and other out-of-state materi-
als and to instruct the MTA to "buy
New York."
Ralph M. Mohr, R-Lancaster,
and Thomas M. Reynolds, R-Spring-
ville, are up in arms over the au-
thority's purchase of $16 million of
Korean steel to repair the Throgs
Neck Bridge connecting the Bronx
and Queens and the fact that the
MTA's five-year, $7.2 billion capital
budget has no provision favoring
New York State suppliers.
They demanded that the gover-
nor fire MIA Chairman Richard Ra-
vitch for "gross insensitivity to the
economic needs of New York State
and its workers" and implement a
plan to direct MTA capital spending
toward in-state firms.
"We should make sure that if it's
made in New York, buy it in New
York," Mr. Mohr said at a press
conference.
Pressing the attack, the legisla-
tors claimed the MTA regularly ig-
nores New York State suppliers
while shopping with state tax dol-
lars. Among the allegations:
Less than a fourth of the sup-
pliers and equipment for a new bus
depot on Staten Island were bought
in-state and most of the contractors
hired for the project were outsiders.
The authority spent $900,000 to
buy hoists in Ohio and $1.5 million
for a bus radio system made in
Illinois.
Such common products as
metal panels, garbage compactors,
copper wire and steel piping are
routinely bought out of state.
Security and surveillance sys-
tem are being bought elsewhere al-
though 29 New York firms produce
similar equipment.
Mr. Reynolds and Mr. Mohr pro-
posed a four-point "buy New York"
plan for MTA spending that would
include:
Notification by the MTA of in-
state firms when contracts are up
for bid.
Enactment by the State Legis-
lature and governor of a "5 percent
rule," letting the authority award
contracts of more than $10,000 to
New York firms bidding within 5
percent of the lowest out-of-state
bid.
Establishing a minimum New
York content for buses manufac-
tured for the MTA and for major
capital projects.
The MTA and Mr. Ravitch came
under heavy criticism last year for
buying 325 subway cars for $274.4
million from a Japanese
manufacturer.
THE BUFFALO NEWS
Founded October 11, 1880
Friday, August 12, 1983
EVERYBODY'S COLUMN
Foreign Steel Purchase Hurts State
What a shameful travesty has
unfolded as the newly enacted
"Buy American Steel" measure
is totally ignored by the New
York State Metropolitan Tran-
sportation Authority, whose
board has voted to buy $53 mil-
lion worth of steel from a South
Korean firm. Western New
Yorkers are reeling from the
crippling blow of Bethlehem
Steel's shutdown, and one of our
very own state authorities, in
completing a capital construc-
tion project, has turned to a
cheap subsidized foreign steel
market. This action signals
obvious disregard for the dete-
riorating effects this purchase
imposes on our domestic steel
industry.
I remain unconvinced that
the dollar savings realized from
the purchase of foreign steel
could ever offset the tremen-
dous negative economic impact
it generates, particularly in
terms of lost jobs, lost tax reve-
nues and increased expendi-
tures for unemployment insur-
ance costs. I believe the deci-
sion of the MTA ought to be
reversed, lest a dangerous
precedent be set for other state
agencies. This $53 million steel
purchase constitutes a destruc-
tive action that not only makes
a mockery of our "Buy Ameri-
can Steel" policy, but also ren-
ders catastrophic effects on the
economy and households of
thousands of unemployed steel-
workers in the state.
PATRICIA JAWOROWICZ
Councilman
Cheektowaga
THE BUFFALO NEWS
Business/Finance
Page B-6
Friday, August 19, 1983
Bethlehem Plant
May Yet Get Pact
For Bridge Steel
By ROBERT J. SUMMERS
after Gov. Cuomo signed a law re-
There is still a possibility that
quiring state agencies to buy
Bethlehem Steel Corp's Lackawan-
American products unless that ac-
na plant may get a $2.1 million con-
tion would result in "unreasonable
tract to supply steel for the contro-
cost."
versial Throgs Neck Bridge redeck-
The difference between the Ko-
ing
project,
a
Bethlehem
rean and American steel would be
spokesman said today.
about $3.5 million, the MTA said.
Steel for the Throgs Neck Bridge
Were MTA to award the contract
project in New York City originally
to Bethlehem, it would mean about
was set to be ordered from South
three to four months of work at the
Korea, but Bethlehem said it ap-
company's specialty products shop
pears that the Metropolitan Tran-
in Lackawanna, Mr. Davis said.
sportation Authority, which owns
Sources say the specialty prod-
the bridge, may reconsider and buy
ucts shop is about to be sold to
American-made steel, according to
another company, but Mr. Davis
Bruce Davis, Bethlehem's assistant
would not confirm or deny those
vice president of public affairs.
reports.
Mr. Davis said an MTA attorney
He said that "regardless of who
on Thursday told the contrator
is the owner" of the shop, "the
scheduled to do the bridge work not
work would be done at the facility"
to order the South Korean steel
and would employ about 100 people.
until the contractor heard further
The specialty products opera-
from MTA, probably on Monday.
tion, which makes guardrails,
bridge decking and other products,
Mr. Davis said he thought the
is one of the Lackawanna facilities
MTA's delay might indicate that
which Bethlehem plans to close
Gov. Cuomo and State Commerce
later this year.
Commissioner William Donohue
Sources say the most likely
may be successful in persuading
buyer of the operation is H.J. Wil-
the MTA to change steel suppliers.
liams Co. Inc., York, Pa. But nei-
MTA chairman Richard Ravitch
ther Bethlehem nor Williams will
announced the foreign steel one day
confirm those reports.
EDITORIAL
THE BUFFALO NEWS
Founded October 11, 1880
EDWARD H. BUTLER, Founder 1880-1914
EDWARD H. BUTLER, JR., Publisher 1914-1956
JAMES H. RIGHTER, Publisher 1956-1971
MRS. EDWARD H. BUTLER, Publisher 1971-1974
HENRY Z. URBAN, Publisher 1974-1983
WARREN E. BUFFETT
STANFORD LIPSEY
Chairman
Publisher and President
Kate Butler Wallis, Vice Chairman; Richard K. Feather, Vice President and Director of Industrial Relations;
Robert L. Moore, Treasurer and Controller; A. Jean Gooding, Secretary and Assistant Treasurer;
David W. Perona, Circulation Director; Clyde Pinson, Advertising Director; Albert J. Wainwright,
Production Director; Raymond G. Koegel, Inter-Departmental Coordinator
LEONARD W. HALPERT
MURRAY B. LIGHT
FOSTER L. SPENCER
Editorial Page Editor
Editor and Vice President
Managing Editor
Sunday, August 21, 1983
Page B-2
State Needs Ignored
The Metropolitan Transportation
Authority in New York City recently
Neck Bridge, would be "unreasona-
ble."
awarded a bridge contract for 15,000
tons of steel to companies in South
But this narrowly based decision
Korea and Japan. If the 4,000 tons of
did not take into account the direct
ribbed steel sections for the bridge
and indirect benefits that would ac-
were produced in Bethlehem Steel's
crue to domestic steelmakers in new
Lackawanna plant, 12,000 man-hours
jobs and to governments in increased
of work would be created.
taxes and reduced unemployment
costs. The project could have been
That is an indication of the benefits
particularly important to Lackawan-
apparently lost through the award of
na, where 7,300 jobs are due to be lost
the contract to foreign steel plants, al-
permanently later this year with the
though attempts are being made to
end of basic steelmaking operations.
reverse the decision. Ironically, the
Bethlehem's galvanizing steel finish-
MTA made the decision just days
ing mill will continue in operation in
after Gov. Cuomo signed into law the
Lackawanna, however, and the
"Buy American" steel measure de-
Throgs Neck project would have help-
signed to provide help to Western New
ed to keep this mill busy.
York's ailing steel industry, as well as
The new state measure, which is
domestic steel generally.
familiar to practices in other states
The new law provides that inde-
and countries, is potentially highly
pendent state authorities such as the
significant, since public authorities in
MTA should give preference to domes-
the state plan to use an estimated
tic steel unless they decide that the
300,000 tons of steel during the coming
preference would result in unreasona-
year. The undoubted benefits will be
ble costs or not be in the public inter-
lost, however, if officials routinely
est. In making the decision, the MTA
characterize any extra costs as "un-
said the additional $3.5 million cost on
reasonable" and carry on with busi-
the project, the repair of the Throgs
ness as usual.
SECTION 2
NYS SENATORS' RESPONSES
PLEASE REPLY TO:
ROOM 803, LOB
EXCELSIOR
AIBANY, NEW YORK 12247
518-455-3111
X
DISTRICT OFFICE
MARY B. GOODHUE
THE SENATE
226 EAST MAIN STREET
MT. KISCO, NEW YORK 10549
SENATOR 37TH DISTRICT
STATE OF NEW YORK
914-241-2541
CHAIRMAN
720 WHITE PLAINS ROAD
SCARSDALE, NEW YORK 10583
COMMITTEE ON CHILD CARE
914-723-1115
August 1, 1983
Dr. Ken Lipke, Chairman
Steel Corporation of America
P.O. Box 220
Buffalo, New York 14225
Dear Dr. Lipke:
Thank you for your letter of July 27, 1983 seeking my support
in demanding the resignation of Richard Ravitch as Chairman of the
MTA because of his failure to buy American steel for a bridge re-
newal project.
Unless Mr. Ravitch is in actual violation of the law, I see
no reason for his resignation.
Very truly yours,
heavy B. foriher
MARY B. GOODHUE
Senator, 37th S.D.
MBG/jr
EXCELSIOR
THE SENATE
STATE OF new YORK
JOSEPH L. BRUNO
ALBANY 12247
CHAIRMAN
STANDING COMMITTEE ON
CONSUMER PROTECTION
ROOM 814, LEGISLATIVE OFFICE BUILDING
455-2346
August 3, 1983
Dr. Ken Lipke, Chairman
Steel Corporation of America
P.O. Box 220
Buffalo, NY 14225
Dear Dr. Lipke:
Thank you for your letter of July 27 informing me of the Metropolitan
Transportation Authority's failure to abide by New York State's
"Buy American Steel" policy.
I agree completely and totally that Mr. Ravitch's decision to purchase
foreign steel is a short-sighted and narrow view on how to get New York's
economy back on a level and stable track. When the Legislature returns
to Albany either in the fall or next January, I will discuss your request
for Mr. Ravitch's resignation with my Senate colleagues.
If you have, or become aware of any other violations of this legislation
by New York State agencies or public authorities I would appreciate
your bringing them to my attention.
Sincerely,
Joe Joseph L. Bruno Buno
JLB/v
THE SENATE
STATE OF new YORK
EXCELSIOR
ALBANY 12247
EMANUEL R. GOLD
DEPUTY MINORITY LEADER
August 4, 1983
Dr. Ken Lipke
c/o Steel Corporation of America
P. 0. Box 220
Buffalo, New York 14225
Dear Dr. Lipke:
Thank you for your letter of July 27, 1983. I was indeed
very disappointed that the MTA decided to buy steel out-
side the State of New York. I have been made aware of
the problems in the Buffalo area concerning unemployment
as a result of hearings held by Senator Bill Stachowski
and Senator Anthony Masiello. I supported the law in
the New York State Senate and believe it should be imple-
mented to the greatest degree possible.
On the other hand, I believe that the State of New York
is very fortunate to have a man of the calibre of Richard
Ravitch running the MTA. I know for a fact that Mr. Ravitch
reached out in many directions before making the final
decision and that to some extent he received very little
cooperation from others in government. He has a responsi-
bility to the fare payers throughout the State, and whereas
you or I might have come to a different conclusion as to
the economics of the situation, I believe that Mr. Ravitch
acted in good faith. Understand, I do not agree with his
conclusion and I would have handled the situation differently.
On the other hand, I think there is a difference between
incompetence and dishonesty, and an honestly formed deter-
mination by someone in government life which I may not
agree with it.
For these reasons, I will be glad to cooperate with you
and others to see to it that in the future as much steel
as possible made in New York is purchased by our own govern-
mental authorities, but I cannot join in any effort aimed
at the removal of Mr. Ravitch from the MTA.
Very truly yours,
ERG/al
Emanuel R. Gold
THE SENATE
STATE OF NEW YORK
EXCELSIOR
ALBANY
PLEASE RESPOND
ALBANY OFFICE:
NORMAN J. LEVY
I ROOM 811
LEGISLATIVE OFFICE BUILDING
8TH DISTRICT
ALBANY, NEW YORK 12247
CHAIRMAN
(518) 455-3341
COMMITTEE ON TRANSPORTATION
DISTRICT OFFICE:
X30 SOUTH OCEAN AVENUE
ROOM 305
FREEPORT, NEW YORK 11520
(516) 546-4100
August 9, 1983
Dr. Ken Lipke, Chairman
Steel Corporation of America
P.O. Box 220
Buffalo, New York 14225
Dear Dr. Lipke:
Thank you for your recent letter.
I have taken the liberty of forwarding a copy of your
letter to Mr. Richard Ravitch, Chairman of the Metropolitan
Transportation Authority.
Please be assured of my interest in this matter. As
soon as I hear back from Mr. Ravitch, I will again be in
touch with you.
Best wishes.
Sincerely,
2009 NORMAN J. LEVY
Senator 8th District
NJL: 11
THE SENATE
STATE OF new YORK
EXCELSIOR
ALBANY 12247
WARREN M. ANDERSON
president PRO TEM
MAJORITY LEADER
August 12, 1983
Dr. Ken Lipke
Chairman
Steel Corporation of America
P.O. Box 220
Buffalo, New York
14225
Dear Ken:
Thank you for your recent letter regarding the Metropolitan
Transportation Authority's decision to buy foreign steel to re-
build the Throgs Neck Bridge roadway.
The recommendation by Chairman Richard Ravitch to his Board
that the Authority purchase foreign steel at an estimated savings
of approximately ten percent was obviously misguided. This de-
cision clearly contravenes the intent of New York's recently en-
acted "Buy American Steel" policy. I believe, however, that in
view of the substantial negative reaction to the MTA's action,
future purchases of steel by State agencies and authorities will
be made with this new law in mind.
matter.
Thank you for sharing your views with me on this important
With warm personal regards, I am
Sincerely,
WMA:ghw
Wamm Anduson
SECTION 3
ASSEMBLYMEMBERS' RESPONSES
THE ASSEMBLY
STATE OF NEW YORK
EXCELSIOR
ALBANY
COMMITTEES
Aging
THOMAS F. CATAPANO
Banks
54th District
Governmental Employees
Room 553
Housing
Legislative Office Building
Social Services
Albany, New York 12248
(518) 455-5821
3456 Fulton Street
Brooklyn, New York 11208
(212) 235-0220-1
July 9, 1983
Dr. Ken Lipke, Chairman
Steel Corporation of America
P.O. Box 220
Buffalo, New York 14225
Dear Dr. Lipke,
Thank you for your letter of July 22nd, concerning
New York State's "Buy American Steel" policy.
I agree entirely with the context of your note and
have sent Mr. Ravitch a letter indicating my feelings on
the subject. I believe I made it very clear that from this
day on I will vote against any State projects that do not
give American steel preferencial treatment in their bidding
process.
Again, thanks for the letter and know that I am 100%
supportive of this most important cause.
Sincerely,
THOMAS F. CATAPANO
TFC/nvt
THE ASSEMBLY
STATE OF NEW YORK
EXCELSIOR
ALBANY
FRANCIS J. PORDUM
COMMITTEES
ASSEMBLYMAN 146TH DISTRICT
AGRICULTURE
BANKING
ROOM 652
INSURANCE
LEGISLATIVE OFFICE BUILDING
LABOR
ALBANY, N.Y. 12248
TRANSPORTATION
(518) 455-4462
3812 SOUTH PARK AVENUE
blasdell, N.Y. 14219
July 28, 1983
(716) 826-1878
Dr. Kenneth Lipke
Chairman
Steel Corporation of America
P.O. Box 220
Buffalo, NY 14225
Dear Dr. Lipke:
For years now, I have been as advocate of "Buy American"
and "Buy New York State."
As a County Legislator and now as a New York State Assembly-
man, I have been an outspoken advocate of saving local jobs by
purchasing steel and other products from U.S. firms, and more
importantly, from firms based in New York State.
I was the Prime Sponsor of Buy American Legislation, as
it relates to the implementation of the State's portion of the
Federal Surface Mass Transportation Act. I was the co-prime
for the authorities Legislation that you point to in your letter.
I am extremely disappointed in Mr. Ravitch's decision to
use Korean steel for the building of the Throgs Neck Bridge.
The pointed finger method is not going to help this situation.
In my opinion, we need to enact restrictive legislation that will
not give internationally based steel firms a competitive edge in
the bidding practices of this country.
Thanks for your comment in this matter.
Sincerely yours,
Fran
FRANCIS J. PORDUM
ASSEMBLY 146th DISTRICT
FJP:kg
THE ASSEMBLY
STATE OF NEW YORK
EXCELSIOR
ALBANY
RICHARD J. KEANE
Please Reply To:
Assemblyman 145th A.D.
Rm. 828, Legislative Office Bldg.
Erie County
Albany, New York 12248
(518) 455-4691
CHAIRMAN
Committee on Agriculture
1066 Abbott Road
Buffalo, New York 14220
(716) 847-3727
General Donovan State Office Bldg.
125 Main Street
July 28, 1983
Buffalo, New York 14203
(716) 847-3080
Dr. Ken Lipke, Chairman
Steel Corporation of America
P. O. Box 220
Buffalo, New York 14225
Dear Ken:
In response to your letter of July 22, 1983,
I am enclosing a copy of the letter I sent to
Governor Cuomo, asking him to look into this
matter, which would hopefully bring about a re-
versal of the Authorities' decision.
Sincerely,
Dick
RICHARD J. KEANE
MEMBER OF ASSEMBLY
RJK:nl
Encl.
THE ASSEMBLY
STATE OF NEW YORK
FACELBIOK
ALBANY
RICHARD J. KEANE
Rm 828, Legislative Office Bldg
Assemblyman 145th A.D.
Erie County
CHAIRMAN
COPY
Albany, New York 12248
(518) 455-4691
1066 Abbott Road
Committee on Agriculture
Buffalo, New York 14220
July 28, 1983
(716) 847-3727
General Donovan State Office Bldg.
125 Main Street
Buffalo, New York 14203
(716) 847-3080
Governor Mario M. Cuomo
Executive Chambers
Capitol Building
Albany, New York 12224
Dear Governor Cuomo:
Recently it has been brought to my attention that the
Metropolitan Transportation Authority (MTA) voted to purchase
$53,000,000.00. worth of Korean steel for use on repairs to
the Throgs Neck Bridge, which will save the MTA 3.5 million
dollars.
The new "Buy American Steel" legislation signed by you
earlier this month, includes contracts by public authorities.
It seems to me that the awarding of this massive contract by
the MTA to a foreign steel competitor, is nothing more than
a slap in the face to the New York State Government.
I am enclosing a copy of a letter I received from
Dr. Ken Lipke, Chairman of Steel Corporation of America, who
expresses very clearly his objections to this action. He
points out many reasons why this action is counter productive
and not in the best interests of New York State.
I would appreciate any efforts you may make to stop the
MTA from awarding either this contract or future contracts
to foreign competitors when it is obvious that American
companies can provide the same product or service at a reason-
able cost.
Sincerely,
Dick
RICHARD J. KEANE
MEMBER OF ASSEMBLY
RJK:nl
Enclosure
THE ASSEMBLY
STATE OF NEW YORK
EXCELSIOR
ALBANY
COMMITTEE MEMBERSHIP
Aging
JOHN W. McCANN
Agriculture
Assemblyman 111th District
Higher Education
Local Government
DISTRICT OFFICES
ALBANY OFFICE
248 Genesee Street
Room 919
Chittenango, New York 13037
Legislative Office Building
(315) 687-3309
Albany, N.Y. 12248
(518) 455-4807
125 Main Street
July 28, 1983
Oneonta, New York 13820
(607) 432-5524
Dr. Ken Lipke, Chairman
Steel Corporation of America
P. O. Box 220
Buffalo, N. Y. 14225
Dear Dr. Lipke:
This is to acknowledge and thank you for your recent
letter concerning Richard Ravitch, Chairman of the
Metropolitan Transportation Authority, and his contemptuous
decision to purchase Korean steel in lieu of American.
I read your comments with a great deal of interest,
and I am personally outraged with Mr. Ravitch's recommen-
dation. The fact that this unthinking decision was made
just twenty-four hours after the Governor signed into law
the "Buy American" legislation, which I strongly supported,
only adds insult to injury.
I am certain that our Assembly Republican Conference
will be addressing this matter in the immediate future and
you may rest assured that I will extend all my efforts in
reversing this ill advised decision. In addition, I will
initiate and support a call for Mr. Ravitch's immediate
resignation.
Sincerely,
John W. McCann
Member of Assembly
JWM:me
CCS: Hon. Clarence Rappleyea
Hon. Neil Kelleher
THE ASSEMBLY
STATE OF NEW YORK
ALBANY
Glenn E. Warren
XOOX Assembly District 99
from
/ thought this material would be of
Glenn Warren
interest to you.
Cordially,
Building. Albany, N.Y. 12248 (518) 455-5177
lion, N.Y. 12533 (914) 221-3400
Glenn Warren
99th District
FOR RELEASE: IMMEDIATELY
(WARREN - MTA TURNS BACK ON AMERICAN STEEL INDUSTRY)
Assemblyman Glenn E. Warren (R-Hopewell Junction) today
accused the Metropolitan Transportation Authority or dashing the
hopes of millions -- including members of the Legislature, the
Governor, the steel workers and the people of New York State -- by
contracting with Korean and Japanese steel companies just one day
after the signing of the Buy-American law.
Warren explained that the $33 million contract is for the
procurement of steel for use in renovation of the Throgs Neck
Bridge in New York City. He noted that although the Triborough
Bridge and Tunnel Authority acted within the law, it has violated
the spirit of unity and purpose behind the Buy-American provisions.
"The new measure expands the scope of the present Buy-American
law, which pertains only to state agencies, to include state public
authorities," Warren said.
Specifically, the measure stipulates that public authorities
in the State of New York use American-made steel in purchase
contracts of $50,000 or more 101 supplies, materials, and equipment
and in construction contracts of $100,000 or more for maintenance
or repair of public works, unless it is not in the public interest.
"Nothing could be more in the public interest than giving our
steel industry the boost it needs to become a thriving part of our
national economy again," Warren continued, "If given the chance, I
believe our once-strong steel companies will be capable of
competing in the steel market by producing steel at a reasonable
cost and in readily available quantities of sufficient quality."
Warren said the Buy-American law, in addition to other
measures considered by the legislature this year, is designed to
foster 'state, local and national economic regrowth.
"The MTA's recent action is a slap in the face to every one of
New York State's taxpayers -- especially those in Western New York
who are unemployed because of that area's faltering steel
industry."
"We in the legislature try to represent our constituents by
fighting for intelligent and patriotic legislation. Most recently,
a bill was signed into law t.o allow creation of an Industrial
Development Agency in Sand Lake and this action was taken in the
spirit of the Buy-American law."
The assemblyman concluded by saying, "Reinvestment in New York
State is something for which we should all strive. Locally, we can
do our best to monitor the situation but the MTA has lost the
respect of many people who have the Empire State's economic health
as a goal and responsibility. It is time that we stop taking our
business and our dollars elsewhere and start investing in our own
economic recovery here at home."
-30-
7/29/83
THE ASSEMBLY
STATE OF NEW YORK
EXCELSIOR
ALBANY
PHILIP B. HEALEY
RANKING MEMBER:
ASSEMBLYMAN 12TH A.D.
commerce, INDUSTRY AND
ALBANY, NEW YORK 12248
ECONOMIC DEVELOPMENT
518-455-5305
COMMITTEES:
DISTRICT OFFICE:
TOURISM
700 BROADWAY
SPORTS AND ARTS
MASSAPEQUA, new YORK 11758
rules
TRANSPORTATION
516 541-8222
July 29, 1983
Dr. Ken Kipke, Chairman
Steel Corporation of America
P. O. Box 220
Buffalo, N.Y. 14225
Dear Dr. Kipke:
I am in receipt of your recent letter dated
July 22, 1983.
The problem you addressed with the Steel purchase
by the MTA is a severe one. I would be more than
happy to join with you and others to bring about a
solution to this problem. It is essential that we in
Government give support to domestic business enter-
prise.
If I can be of any further assistance to you,
please do not hesitate to contact my office.
Sincerely yours,
Philip B Healey
Philip B. Healey
Assemblyman 12th A.D.
PBH:gm
THE ASSEMBLY
STATE OF NEW YORK
EXCELSIOR
ALBANY
MEMBER
WILLIAM L. PARMENT
Standing Committees on
Assemblyman 150th District
Agriculture
Commerce, Industry &
Rm. 306 Hotel Jamestown Bldg.
Economic Development
Jamestown, N.Y. 14701
Higher Education
(716) 664-7773
Transportation
Tourism, Sports & Arts
Rm. 327 Legislative Office Bldg.
Albany, N.Y. 12248
(518) 455-5419
August 1, 1983
Dr. Ken Lipke, Chairman
Steel Corporation of America
P. O. Box 220
Buffalo, New York 14225
Dear Dr. Lipke:
As a multi-sponsor of the "Buy American Steel" bill,
I share your frustrations regarding the arrogance of
the MTA in the current situation.
The management of the MTA should be restructured to
provide a more effective agency and I would urge the
Governor to take the steps he deems necessary to
reform the management of that agency.
The problem of steel purchase is only one of several
that need to be addressed.
Thank you for your correspondance.
Yours truly,
William L. Parment
Member of the Assembly
WLP:kb
THE ASSEMBLY
VICE-CHAIPMAN
Legislative Commission on
Public/Private Cooperation
STATE OF NEW YORK
COMMITTEES
EXCELSIOR
ALBANY
Aging
Agriculture
Commerce
LAWRENCE E. BENNETT
Industry & Economic Development
Assemblyman 96th District
Local Governments
Real Property Taxation
august 2, 1983
Dear Dr. Liphe:
l am in Complete agreement with the
thoughts expressed in your letter of July 18,1983.
We in Orange Country were not pleased with
the management of Stewart airport by the M.T.A..
The present Operation of Stewart by D.O.T. much with the
Lochbeed Corporation as manager in a
better arrangement.
Mr. Ranitch's action in recommendation to purchase
Foreign made pteci, in defiame of Legulative and excentes
intent Cannot he tolental.
l Corcer with your thoughts on hom the
Chairma of the M.T.A. should he dealt with.
Be assmed of my Continued interest in are support
in then matter
Sincerely,
Legislative Office Building, Room 323, Albany, N.Y. 12248 (518) 455-5424
122 S. Plank Rd., Newburgh, N.Y. 12550 (914) 562-0888
Lameme E. Bennet
310 Mill St., Poughkeepsie, N.Y. 12601 (914)
473-4454
THE ASSEMBLY
COPY
STATE OF NEW YORK
ALBANY
EXCELSIOR
Albany Office
Room 458
WILLIAM E. "BILL" BUSH
Legislative Office Bldg.
Assistant Minority Leader
Albany, New York 12248
119th AD. Onondaga County
(518) 455-5383
5102 West Genesee Street
Camilius. N.Y. 13031
(315) 488-4237
August 3, 1983
Mr. Richard Ravitch
Chairman
Metropolitan Transportation Authority
347 Madison Avenue
New York, New York 10017
Dear Mr. Ravitch:
Enclosed please find copy of letter I received from Dr. Ken Lipke,
Chairman of the Steel Corporation of America.
Dr. Lipke's letter questions the action taken by you and the members
of the board of the M.T.A. in your decision to purchase $53 million
worth of steel from a South Korean steel company in light of the
new "Buy American Steel" legislation that was signed into law
on Thursday, July 14th by Governor Mario Cuomo.
I believe Dr. Lipke deserves an answer to these actions and I
would appreciate your response to the points that he has taken
in his letter.
Sincerely,
Rill Bush
William E. Bush
Member of Assembly,
119th Assembly District
WEB:be
THE ASSEMBLY
CC: Dr. Ken Lipke, Chairman
Steel Corporation of America
STATE OF NEW YORK
ALBANY
WILLIAM E. BUSH
Assistant Minority Leader
KEN,
I thought that the enclosed might be of
interest to you.
Cordially,
BiLL
THE ASSEMBLY
STATE OF NEW YORK
EXCELSIOR
ALBANY
COMMITTEES
Aging
HENRY WM. BARNETT
Consumer Affairs and Protection
Assemblyman 89th District
Housing
Westchester County
District Office
Professional Building
Room 4
Triangle Shopping Center
Yorktown Heights, N.Y. 10598
(914) 962-4111
Albany Office
Room 427 - Legislative Office Bldg.
Albany, New York 12248
(518) 455-5348
August 3, 1983
Dr. Ken Lipke, Chairman
Steel Corporation of America
P.O. Box 220
Buffalo, New York 14225
Dear Dr. Lipke:
Thank you for your letter of July 18, 1983.
As a member of the Assembly, I voted in favor of
extending the "Buy American" requirement to State Agencies
and Authorities. Obviously, the intent was to further monitor
these governmental bodies which act independently and, in effect,
usurp the powers and responsibilities of the State Legislature.
The Assembly has an Oversight, Analysis, and Investigations
Committee, chaired by Assemblyman Gorski, which was set up to
handle specific complaints regarding rules and regulations
promulgated by State Agencies and Authorities. I would expect
that you are receiving letters from other legislators expressing
similar reactions such as mine. I would respectfully suggest
that you forward copies of such replies to this committee and
request that they take action regarding this particular matter.
Very truly yours,
HWB: ltv
Henry Any Wm. Barnett Baned
Member of Assembly
THE ASSEMBLY
STATE OF NEW YORK
ALBANY
JOHN B. SHEFFER, II
August 4, 1983
VICE CHAIRMAN, REPUBLICAN CONFERENCE
MEMBER OF ASSEMBLY, 142ND DISTRICT
ROOM 635, LEGISLATIVE OFFICE BLDG.
COMMITTEES:
ALBANY, NEW YORK 12248
WAYS AND MEANS
(518) 455-4618
HIGHER EDUCATION
INSURANCE
DISTRICT OFFICE
6461 MAIN STREET
WILLIAMSVILLE, NEW YORK 14221
(716) 634-6775
Dr. Ken Lipke, Chairman
Steel Corporation of America
P. O. Box 220
Buffalo, NY 14225
Dear Ken:
Thank you for your letter in reference to the current situation as
to use of American Steel on MTA's bridge renewal project. I ap-
preciate your initiative in contacting me on this critical issue.
Be assured that we are in total agreement on this matter and of my
strongest support for use of American steel on this particular
project and, indeed, on all public projects. If this goal includes
the resignation of Mr. Ravitch I will be more than pleased to
support such a step. For many reasons, including those outlined
in your letter, I believe that it is absolutely essential that an
active and viable steel market be perpetuated in our state and
country. As you might know, Mr. Ravitch has represented an extremely
counterproductive attitude in many ways in our state in addition to
this most recent issue.
As you are doubtless aware, I have co-sponsored and supported all of
the "Buy American Steel" legislation in our state and I am committed
to making this concept a reality in practice as well as in statute.
I appreciate hearing from you on this matter and trust that you will
not hesitate to contact me with your views in the future or at any
time I can be of assistance.
Very truly yours,
JOHN B. SHEFFER II
Member of Assembly
THE ASSEMBLY
STATE OF NEW YORK
EXCELSIOR
ALBANY
CHAIRMAN
STEVEN SANDERS
Subcommittee on Human Rights
63rd District
Legislative Office Bldg.
Room 519
Albany, N.Y. 12248
(518) 455-5506
201 East 16th Street
New York, N.Y. 10003
(212) 673-3266
August 4, 1983
Dr. Ken Lipke
Chairman
Steel Corporation of America
P.O. Box 220
Buffalo, N.Y. 14225
Dear Dr. Lipke:
I am writing in response to your recent letter about the MTA's
decision to purchase foreign steel to rebuild the Throgs Neck
Bridge.
I am outraged by the decision, particularly as it comes on the
heels of our approval in the Legislature of a "Buy American Steel"
policy for public authorities. I do not believe that the MTA has
adhered to the letter and spirit of the new law.
At a time when our own steel industry is in desperate need of an
economic shot in the arm, particularly in upstate New York, it is
disgraceful that our public authorities have decided to purchase
their steel elsewhere.
I agree with your points about the real losses to the State of
New York as a result of foreign purchases. As we review this
issue in the Legislature I will keep this in mind in seeking to
put teeth in our "Buy American Steel" policy.
You have my support in seeking to strengthen our domestic steel
purchase policy. Please contact me if there is any way I can be
of assistance in this regard.
Sincerely
StanSander Steven Sanders
SS/es