Large corporations and urban employment


Material Information

Large corporations and urban employment
Physical Description:
ix, 736 p. : ill. ; 24 cm.
United States -- Congress. -- House. -- Committee on Banking, Finance, and Urban Affairs. -- Subcommittee on the City
U.S. Govt. Print. Off.
Place of Publication:
Publication Date:


Subjects / Keywords:
Corporations -- United States   ( lcsh )
Manpower planning -- United States   ( lcsh )
Cities and towns -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Statement of Responsibility:
Subcommittee on the City of the Committee on Banking, Finance and Urban Affairs, House of Representatives, 95th Congress, second session.
General Note:
CIS Microfiche Accession Numbers: CIS 78 H242-4
General Note:
At head of title: Committee print.
General Note:
Issued Feb. 1978.
General Note:
Reuse of record except for individual research requires license from LexisNexis Academic & Library Solutions.

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 024727898
oclc - 04055867
lcc - KF49
System ID:

Full Text






ii95th Congreiss, iiiiiiiiiSecond Sesiiiiii isioni iiii

Printed for the use of the
Commttee on Banking, Finance and U~rbani Affirsk

Thisrepot has not been officially adopted by the Subcommittee on the
01ty nd m y not therefore necessarily reflect the views of its members.

Z"13 0WASHINGTON : 1978

Fo S bythe Superintendent of Documents, U.S. Government Printing Offiee
Washington, D.C. 20U0
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(4) Whh existiniiiiiig fediiieral st or led piiin, if any diii-iiii
***Fore YOU fro maintaining or locating 0 aen ural
cities? What new governmenta policies i ~ emn"oourage you to
aintain or locte operations ese are
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We would appreciate receiving your bypas6 December 15.

HaNR S. Rwsm, Chairman.
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Jonf J. CAVxVCMou.
Jim I&IVM3
Srawmar B. McKanaxs.

T'he Subcommittee is printing a representative selection of re-
sponses to the letter in the belief that:
1. The number of corporations expressing a commitment to
central cities and a desire to help solve teproblems of Athe un-
employed provides grounds for some optimism about retalining
jobs in central cities;
2. Some corporations have devised innovative approaches to

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3. Ah nmberim ofetfesbe theme reurwihpaliert goelrntent of-
ficalsa l eveetio IQ arerias whersioes acprtionitteenth
publi an reivae sehct wilyeld substantiall bepnefits for ceta
cities and th er resien t. i
PartnI of themlCommitteePrintoentainspropotextof 2letter s t
recevedfro indstral firmst olistdins thel "Fotun 500." p Parte 11
contains the tettfr6ofn11getter receivmed from r non-indutral
firms~~ listeidn in the "Frtne30. tPrt IIIlists al corpriations that
rsoddetoite Subommtittee" feprene n oa
Indeidngwhich legttber tos pbis h, thefolowaiong crietorloawer

e avilailiy o a arn ppl o sei-sk~~illed, and unski
1.eOnly rptles from corporations ta a usanilbsns
incetraity loatwionsr of i were includbe.

sentaicross-sec tion o f A rab inesrsactivi ty. aceto

4. Reples tatalset othinoativun te opoate oapprocesento the
polm ofuran unemloymnt or proo sedi imroetterntas to co
ordiate publci and piaelcivi espoblt to deal with thspolmwr
also included.""1111:11`ll

Firmns exrssn the strommngest comimet tod oremainingin arind

frter dcsipons: htlctinldcsosar setal
1. A esiraed toretai tnhte seviees of mexperiened andoytal em
plye twhich ight beost e nifg thorporations wer toheselocate.
2.mThe aailabilaiity of a largdpolTh emi-sill coto andunkle
emlyes, andaptablculthesir opeations.ebaewr iwda
to ith otion of modern pnosrovuction, faclities and subcon-

trctr includndgr anvopportunity fo inerasnbctont an numbe-t-fc
contcitedln s otosa eerl etitn eom
4Cotbeneit analysesthat foun ulthe ovcetalu oft presntcaictal
invstment was greatentl cthan any p otetileimprovenus in pnro-
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5. A sense of socil and civic responib ility to deal with the~i

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problem.of..h.c..mui.ies.ta..hadfo.terd..hei original
Manyii) f pn out tha iiiia dsse e ia iiii
Nonue deisions ased larely on he need o maximze 1)r( it& How
ever, a numer of charateristics o central ciies were ofen mentione
asbaries toretinin orexpadin opeatins i thse lcatons

1. Te Lmite Avilablit -Te hih cst o lad i
cental cties anddiffcultes i lan assmblae wee viwed s im
pedimnts o th loctionof mdem poducion aciltiesin cntra
citie Evenif lnd wee avalabl at areasoablecosta numer o
corporaions cted lad use ontrol as sevrely rstrictng devlopmen
S. PCNWPublicSamice. le lo qualiy of cntral cty pubic edu

tions said that adequate transportation facilities Are: esstntiftl 6fthei
oprations. They indicated a need for uncoe etd tet a ela
acessible interstate highways; adequate pakn Iiiis swl
sreliable public transportatiiiiiiin. It was.iiiiiiii
ctes do not meet these needs. Finally, concernwsepev ynn
ovr the poor quality sand high cost of housingi eta fis-hc
ibits the recruitment of qualified person

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3. Overregulation.--A number 'of rewsponetprcidgor-
ment regulations to be particularly uncoordintdan nru
i iiiiities. Federal environmental regultioiiwiiihiii iiiiin
strution or expansion of existing facilitips i otcnraiiswr
ofe cited., In addition, the high costs of bingn le lnsit
coformance with environmental and OSHArglton eemn
tioed as induqements to abandon existing aiiisi fvro e
no-city locations.
4.Perceived Anti-Business Attitude of Loa vemft&Mn
coprations believe that the structure andamnsrto-flcl
taes place an unfair burden on central city im i--iohrct
tapayers and believe this situation is unieyt hag n a
wrsen in the future. Frequent mention was as aeo h nrae
cots associated. with local regulations and rdtpbidn oe
an permits, zoning ordinances and otherladuecnrswhh
mke it difficult to remain competitive. Somcoprtnsedsd
tesocial policy goals underlying certain reglatos udpoe h
lak of se'nsitivity of local politicians and burauet oterpolm
ooperasting in central cities.
5. Hipgh Taxes.--Over one-third of the respnetsadhtcnrl
cit business taxes, especially the local properytx eeecsiei
coparison with suburban locations, 'andgiethlvlcnra
ctes services. In addition, when consideringcnrlctylctos
nuber of respondents indicated concernfothlelofprna
xes. If cities impose high personal taxes,
taes, firms worry they will have-to compenst ypoiighge
saaries in order to attract emploees.
6. Lack of an Adequate Labor Supply.-oprtnaexesd
cocern that the work force 'available in centrlcteisntaquey

edicated and lacks the necessary"experience
fully compete for entry level positions. The recent.......
transfer programs, for example, unemploymnt nuac.wkel
copensation, and welfare, was perceivedascnrbtgtowt
ey believe to be a change in people's attit
brof respondents also felt that the Federalrqieetta im
pa the full minimum wage to relatively udrrie n ne
eated individuals turned out by centralci
severely limited their ability to provide e o nrh
Mny respondents felt that Federally sponsordporm d

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n~ii ri 1 1Page
Letter---of Transmittal ---------------------------------- P iii
I elected Responses from the Fortune 500 Industrial
Corporations -- - - - - -- 1
lected Responses from the Fortune 300 Non-industrial
Corporations 385
.Banking 387
Diversified Financial 477
.Insurance 503
Retail ------------------------------------------- 575
Transportation 623
Utilities 47
phabetical Listing of All Responses Received 725
Frtune 500 LargestIndustrials 727
rtune 300 Largest Non-industrials 731
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Noember 30, 1977

Cmitee on Banking, Finance
an Ubani Affairs
Sucmittee on The City
USHuse of Representatives
Wahigton, D.C. 20515

The olloing responds to your October 27 letter to
Mr. Ra. X. Hemann, Chairman of American Brands, Inc.

For prpose of our response, we have considered an operation
i ~i ~~is;ii ii~ "' ii !i i iii i i i i ii iiii iii iii i i i iiii iiiiiiiiiiiliii ii iii iiii iiiiii

t eat a central city location if it iis (a) physically

loatd within a-fairly large city with a high unemployment
ratoor (b) outside a city with areas of high unemployment
li ~ ~ ;iiiiilii '"" II""' i ;iiiiiiiil iiii;iiiiiiiiiii
~ ~ ~ ~~~~~~ii ;iii iiii iiii ;iiiiiiiiiiiiiiiiii iiiii

mhich it wl draw employees.

.Amercan Brands is a diversified company engagedin
the' manufacture and sale of consumer products. We-
have about 49 operations-located in or near central
cities employing about 18,000 people or 65% of our
iiii liiii iiiiiiiii iii iiiii iiiiiilliiiiii ii iiiiiiiiiiiiii iiiiiiiiiiiiiiiiii iiiiiiii

domestic work-force. These operations are mainly
manufacturing, including clerical and
services. 10

2. e have no plans to expand or contract these operations,
in the next five years; however, if past exp erience,
is any guide, it is reasonable to assume that both
expansion and contraction will occur depending upon
the future course of the various businesses.

3.American Brands promotes the hiring of underprivileged
and hardcoreemployees wherever and whenever we can.
As a governme'nt contractor, this positive approach
is cited time and time again in our Affirmative Action
Compliance Programs which are maintained-at each of
our facilities. They, along with submissions to local
.United States Employment Service offices not only
signal the job openings which occur but allow that
agency to refer anyone they deem qpalified or trainable
to our local recruitment offices. While our operations
do not lend themselves to permanent recruiting offices
in the nearby cities, it does give the United States
Employment Service every opportunity to refer qualified
i iiiiiiiiiiiii ii ii iiiiiiiiiiiiii! iii iiii iiiiiii iii ii iiiiiiiiiiiii i iii ii iiiii"i"ii iiii iiiiiiiiiii~iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii

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i policies which afect bsinesses$ attitude to
locating in central cities. Rather be ve
complex of federal, state and local -policies anth
iiiiiiadministration thereof which have resulted a
pitable business climate in some cities. Thisisre
iiiiiiiiiii iiii ;i ll;; iiiii iiiii ii@

fleeiiiiii d in the flight of the middle classiiiiiii ii iiiiii hig
icrime in the streets, burgeoning welfare roll, u iiiii
iiiiienvironmental and safety requirements, high
bureaucratic inefficiency, educational systemls tepou~
iof which are often unfit in terms of educatial
and attitude, etc.
'"" ': ;i;,iisi iiiii iiiiiiiiiilll;iii ;iriiiiiiiiiiii iii;; iiiii i iiiiii i iiiii iiiii

FuPrther, since each community has rather distnt n
different characteristics in terms of geography....
iiand political leadership, etc., it is hard toii com uiiithii
iiiiiiiiiii ~ i;~iiiii~oisi;;;; ;;;;;I;, iiii

iiiiiiiillliiiiii;i~ i iiiniiii iiiii N iiiii

specific suggestions which are equally applica
however, direct attention to the infomation a
The Confereno& Board as a resulk t ofits worshopandcn
ferences on business-government cooperaition.
iiiiiiiiiiiiiiiiiiiiiiiiiliiiiiiiiillii iiiiiiiilii

The Chock Full 0 Nuts Corporation unfortunatexpr
in trying to alvage the Rheingold e ies
iiiii `iiiliiii~iiiili~ !ii'ii'i!iiii!

is a classic illstration ofhw i the final
business cannot survive, provide jobs and payt
its production and distribution costs are higherta
competition. And a manager bas but one choiesi uria
depends upon moving to a* region with a more hosial
business climate.
i i ,,i,,i,,iiiiiii iii
iiiiiiiii ; iiiiiii i;u iiiiiiiiiii iiiiii

;,ii ; l'" i;; i iii, i ........
ilili~iliii'iiiiiiiiiliiiiiiliiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiii iiiiii;ii ii@ @ @ iii
iiii H ~iiii ;;;i;jl

G. &.Scham
iiiiiii~~ ,, iiiiiiiiii @iiiii @@ iii@ iiiiii ii i ii

Ntovember 23,19977
i .......ii

Cb~~~izi" ~ -auac -tteo thet City
iiiiiiiiii~i~ i~i iiiiiiiiiiiiii 'iiliiiiiiiiii ;iii iiii iiiiiiiiiiiiiiiiiiii i'iiliiiiiiiiiii iii

Wathingtoni D. 20515
ii i iiiiii:::iiii ii iii/ i iiiiiiiiiiiiiiii ;;;,i ii [ ii"" '
.............................. iiii" i i iiii ;;ii;;;;'; '"";'
iiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiii iiii iiiiiiii iiii iiiiililii ii iiiii,,, ,ii;;r,:~; ,'~'!

Ia-pleased to replye tar 3mmr letter. of-. October 2T per-
taining~~~ tocnta i g-mloye~pnt.:
1.hastwo plants in or near -entra.-city locations; aely,
its ith-Strip metal roating operation in Chicaro.- whicbh employs
abot 10,people and its Diamornd Chain -roller chain operation in
Indinaplis whieh employs about I1,000 people. Cor-porate and -
da.h iiiiieadquarters in the Chicago "ioop eiploy another 400
n r all parts of the metrpolita area, but I dbt
ii i, iiiiiii !~~~iiiiiiiiiiiii iiiiiiiiiiiii; iii iii iii i i i iiii i i iii iAi ii iii ii iiii iii i iii iiiiiiiiiiiiii ii i iii

n.....iiiiiii ceeii ,total.eployentiabout 10,000.

2. Tere re o present plans for majgor expansion or contraction
of teseLitho-Strip and Disanna Chain plants during the next-
five ears 1ach action,, if later decided-upon, vould be based
on reativ econanies~of produetion and market conitbions,

3. ASM as.provided employment-to about 750 hart-cere* unemployed
underthe ationia- Alliance of Busnatesmen. It has participated
in pisonr work-release prograrm and programs involving. parolees
to pmvie empoyment for well aver 100 employees., and participates
an a cntlauig basis In high school work-study -prag--ams and other
Stas prograni. Special effirts are iide to recrit thriough

aa~ncmes seilizing -in= inding work for the underprivileget .and
minoitie. Currant2y AMSTEDs units are actively work.1ag with
20=1 agenes to act up progres -under TShe Casprehenstve Emeploy-
mentand reainin Act, and are providing speakers and plant tours
to ol in eveloping the programs.

It* overentpolicies-that discourage business expansim n a-central..
elty arasnclude:
a* tanxdated miievarze,, which often exceeds the
roductivity of unilledi borderlinew labor-i avalhle in

central city-a~reas;
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iiiiiiiiiiiiiiiiiii i iiiiii

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and retain ak II Ild,,cleiwaandeMT t

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i vork iii in high-crime i y &""a.....

the above li d c iti

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Yow omiteeha ulrtke adif ut ad. t op ta
it an mpoveth clmae fr bsiesserenson4n ur wnral it ar s.

'zu; iivince e;y't


iiii00 iiiiiiiiiii ; ii

Honorable Henry S. Reuse, Chairman
Subcomittee on the City
604 ous Office Building Annex I
Washngto, D. C. 20515

iiiiiretter of October 27 regarding employmentiiiiiii iiiiin our central cities.

I amnot ertain of your definition of central cities, but believe I can give you
meanngfu data.
oate headquarters i located Iin Providence. Rhode sland, and ie

havetwofactories doing light industrial work--making costume jewelry. We
employ abot i00 and there has been and probably will continue to be a modest
ou employment ii these plants. Two years ago, we invested in so

additio al atory space. "There are some skills involved and for the most part
we~~ poie onthe-job training.

We h avea operation in the Bronx in New York City. where the employment
has eenabou 125 and we are currently building up the workforce to 175 to
ZOO. Thse are low-skilled jobs and on-the-job training is all that is neces-
sary Weare in the process of sellinag that particulat operation but the pro-
pose buer xpets to continue In the same location with a modest build-up.

We hae alght industrial plant in Chicago. 'making industrial fasteners, and
we mpoyapr oxieamately 100 people. We neither foresee expansion nor shrink-
age ~ ithatloation. We are fully utilizing our facilitiles and have no land for
expansionI that location and I don't believe we would have &'need to expand
e;ren if we had more land.

We hae farly sizable employment in Houston: Wichita, Kansas; and Los
Anut theme are all engineering offices employing from 100 to 300
engnersand wrhitecollar workers in each office. We see gradual expan-
sionin ll ocations but I don't believe these statistics bear on the problem
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iiiiiiillii ;iiii"iii i i"iiili"i ii i iiiiiiii

GriN iAL OFFIeCt.S *IDoCIowse.o3to 4504ona

A8 Q loC November 29, 1977
i iii ii ii iiii iiiii ii;;;;:;iiiii ii
== ii ii iii iiiiiiiiiiiiiiiiiii "iiiiiiii
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....~;" i=.="= = i iiii i = ... ... .. ..;"";; iii ==ii iiii= ;; ;;"I";O"" iiii== =[ =

T iii i iiono a Henry S. Reiusi

The ouseof Rpresentatives
604 ouseOffie Building Annex I
ii;;;;;;;,ii i iiil;i ;i iiii iii i i;iiii iiiiiiiiiiii iiiiiii i~ i ii iiiii

Wahntn .C. 20515

I shre te cncern that you and members of the Subcommittee on the City have
.iiii ii i i iiiiii!i iilll;;;ilii;;iiii i i ii.i!! !!iiilili.ili i

fo t~ plightoforcentral cities and their unemployed. The problem. is

co~mlex~n eserves thoughtful review by your Subc-ommittee.
Befreanserng your questions, I would like to point out that Armco has not
shutdow ortransferred any of its operations in central cities. Armco, along
wit oter omsetic steel companies, has been seriously impacted by growing
impots o forign steel., The dumping of steel in this country at prices below
thosein th counry of origin has forced the closing of some steel plants.
Forunaely Amco has been able to maintain its operations although there have
ben u btatilA layoffs of employees. If import relief is not forthcoming,
ther undubtely will be more plant shutdowns and thousands more without jobs.

Ibi siuaionI ave just described~is very tenuous and depends largely on
lligne to ilow throgh and vigorously enfoe the

antiduming.Ias o obtain agreement on reference pricing. .By such means,
fair cmpetit onn be restored between American and foreign steel producers.
I An hhe re t will be supportive of the domestic steel
Indutry t ths critical time. I am sure that you and your Subcommittee will.
agre hatwedo not need more layoffs of the magnitude of those in Youngstown,
OhioorLackawanna, Nw York.

Afterconsutin wit a member of your Subcommittee staff ., we havey defined a
centra city s an rea with a population of 50,000 people oi more. Here is
............ ....................... iiii;;i iiii iiis ;; i=l i l = = ...... .. .. i iii =iiii = iiiiiiiiiiiiii iii

tei r a you requested:i

Ite 1 Wehae a total of 9,400 people employed in our Middletown-11amilton,
Oi,opearations which include our largest steel plant, a fabricating
pln, ar large research facilit and our general office. This is
abou on-fourth of our total domestic employment of 40,000 people.

Weeploy 5,000 people in our: Houston, Texas, steel plant, fabricat-

facilities and offices.

Anoter 5,000 are employed in Kansas City, Missouri, in steel and
fariating facilities and engineering operation.
teloperation in Baltimore, Maryland, employs 1 1 0 and in the
LsAngeles, California, area we employ 850 in a variety of
opi tions.i
iiii iiiii i i ii iiiiiiii ii iiiiii iii ili~~[l ,

s '=:,~l s -00Iii iii:~ iiii i ll i~iii=,L ========
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iiiiii iiiiiiiiii iiiiiii i iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii ' '
ii i ; iiii i ;; i~i i i i i i .... .....

...... ,,,,, ' iiiiiiiiiii
i I i,, Jiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii

!iii l l l iii ii ii l ~ ll i ill l ii ; ..; i : l llii~ ~i iii~ ~i li ii ii i ii i ii i iii~lllll;;il ll
'"i; i ~""" ;;;""""""" ,i~ iiiiiiiii ; iiiiii;""'lI; lll ll ilsiiiiii

Thebalanc aiiii iour central citys el ntsnmiiiiii iiiioperat
,,ill~l l iii""iiiiiii '" i "

grouples haved 23 censtral ciiedstreprsened The totalnubeno
hiiioe iiinlemployeeiii i iihs aa is
i iiii~iiiiiiiiiiiiiii~~~ii~~~i ii~ii 'iii~i i ;;iiiii iiiii"iii"""ii@ i "i
l i i i ii i iiii; ii iiiiiiiii ii ii iiii ii i i i

Cenemlloyeseknw ae2200epoesi.cnrlcte n

desirei i i18,000iei

cites.e In most aof houlr centa cityaoctios wed.othv
sufficen te ahcrg avilabcle fran texpansion. Ifteimot1rblmi
noti resolvend, w a mit be fored tiii iiiiio iishutdo

I hn tou install opollations cothrel wilb oe rwh or example, nt
we arste p tlanningutorexpand our e inurnc operaions ain alafo

ab olut 10popl aatepreeneupent to a out at 200.ant
me dnet en an recitmnt o oa programsi aim spec
i;; iisiiiiiiii; iiiiii1 iiiii @ iii;;;;;;;;;

crallynt ather uneplye in ceantrald citaies. Because o h pca
iiiiiiiiiiiiiiiii ii;iii iiiiiiiiiiiiiii i i;iii;,~iiiiiiiiii

problems relatd to tce steeandsryneartorighadtoke
thosenpresentlylemployed by ushfrom ijn the ranks of theli
i iii i i iiin

Item4 Smeredertal policies are helping e to ause inneor ctydca. o

revokedTa in bly 1968 anmdaio should be reintaed

requirements TTsolday iti modre fenasble to shu dowp n od lat

ufin i abtt a nieipmen to opei and a
Tii in Txrdiivti, i i eimiiiiai iiepioig hc provides
totis kndo ucetiny

Income Tax liab;il;;;;ility.Ths imtatonshul b reovd nd i
sufficient tax ,liabiility to uilize t in oe year

ii i i Nxr:r~
ii iiiii; i ~~il

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,, ,,

iiii~~~~~ ; ,, :'ii;i; iii ii ii iii i iii iiiiiiiiiiiIiiiiii

I beiii iev alliof theseitaxiitems a i i th abiility of
companiestogrowo maitaiopratonsincentrlciie
wellas n smlle comunities.

But f th buden f EA poicis could be eased and if government would
iiiiii iiiiiii,,,i

Stat taxes could be lowered and tax policies
iiiiii would be fostered in central cities. Sometimes
business incentive programs worked well in the

Thr imeiintxierwich serves to accelerate busines. growth and
crete obs Ashasbee sadprivate enterprise can create a job for 25% of
i iiiii iiiiiiiiiiiiiiiii~li ''i";"

th government. If ve want to create jobs and
redce nemloyent ths i th area where substantive action can make things

swered all your questions. If I can be of any
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii S i ei
.............i; ; i iii;i i iiiiiiiiii il iiIil iiiiiiii iiiiiiiii i i ii i iiliiiiiiii i i iiiii lli;i iii ii; i ii iii iiiiiii
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iii;; i iiiiiiiiiiii
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iii i~ ~ iiiiiil iiiiiii
Sinc rely,


Ai7.- s- sro rn g

Eon. RHEnr S. Rsues,- Charman
SubersteeOn U19 City
Co"rdstteeF on I: trnj. ?Fina=me and Urban Affairs
60-4 I1;:m-e Offloe Building,, Am= 1
i~iii~i0i~ i i~iiiiiiiiiiii iiiii~ii~ii~i~i~i~i i~i .....................

1'"0hi;C-tonq DO 20515

Dear 1-'-. Chairmans

This is in response to your letter of October 27adreL h
]V;.oblem at v:.c-plogrant parbioulkary the alas ewai
""" ii a,; ; iii; ;;i iiiiiiiiiiiiiiiiiiiiii i ..........................

umn le-p-,-%ynt that ardicto in the hearts of nost mirciis Rte
than atte-ptinj to asswer yawr questions oncs-by-oI ae coe
to demarithe the sit-a~tion with our coapaW in narrtv,,al
.;iliiiiiiiiii; ;s;;;;;;;;;;;;I ;;;;;;;;;i"";:: ;;iiiiiii

benleva this vill a"ve you a more acoute picture,

INona of Ar_-strong a,1 plants in the United States ialctd n(q
or "contm-l city* areas. Nor do va have asy ispeoifep o
iiiiiiiii i;i a,;;;; ;;;; n i;;aiiiii .... ..;;; ,is~i s;; ..................... ...................

eonstructinga, arq niial!jor new facilities within thei i ............efe
iiii~iii iiii'" ii ii' i "'""" i i

ito, ITth "-rEgd to distribution ceters, it b

to understannd that.most of our interior furnishinspouos4
res ent. floorring., carpt and se ns --aze distributed
it-lepandent wholesalers and contractore acrosste nte Staes
They rintain their own uarhses, distributingtheir
marespetta tradi-qw arcas from these stooking points
The historio cimunstance of our having located ramfcuigfelt
in r.--311 m-dium-ci; )iiii nitien is a resln o ro
iIIIIIIconsiderations tat v iii and othei like us take it

a sitir.3 deeirion. Awrig the more Lqportant fator htalvi&ae
; ii iiiiii ii;iiiri;;,; I .;;;o ;is iisiiili;i,; li I i

Tha stusinaee ollmatell of the state and co;md;im

Cost ai vaildbility of land it soning a

Raw ratarial availability.

lrthetbng, cor-siderations.

Transportation cost and adequaay.

Lt:.ary and w e d:izpos.1 availability and co
.:il lii;;;i;;;iiiiii,, ';i ; ;iiiiiiiiiiiii'; ;i'ii, 'iiiiiiii''' iiiiii'''''ii iiiii iii iii i iiiiiiiiii i ii i ...

Urn4tur and size of the wrk force the "oo mt mi,"
Sahon% ns. hrmsin and cmurmity amanition.
,,i i i ) )iii i)i i ii

iiii i i~~i~iiiiiii i i iii iiiiii i i~ i iiiii ) i iiii iii~ i i
i ii ii ii ii ii ii iil ii ii ii ii i) ii ii ii ii iil ii iillii i )i ii ii iiiiii ii ii ii ii i ii ii ii i ii iiii iiliii iiilii iiii" "ii m m i m m m m m m m m m m m m m m m m m m m m m m m m

iiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiii iiii ....

iii'iililiiiiii iiiiiiiiili iiiiii ii:

;iiiimi~iiiiiil;, ii;" i,,ii;i inl; iiiii iiiiiii@i; ~ii

..s......... iiY too'sl o hn er and i uggS

pr Jections indicate a rosier empl; n otlook
ini tiii fiieids, op tia, rioiiaii l cta. m repair
iiii aiini Ciiiiiiio errz:ant (at all levels), eia well as in retail'
s,, a comared nrally with opportunities in
the amfcturng egnant of our ecoaozy.

uotonl isit lhe mijor cities that have the problem of decaying
centz-l cov l tisI al adiant ea universal concern of meadi-m-sized
miiii ri -- inaliiiing those cities in which
.0 I sAmstronglod com-itimnt to do what it
we hae a'Pra v_-n It s Ar
iiii iii,i;iiiiiiiiiii iiiiliiii iiiiiiiiiiiiii
i iii iiiiii iiiiii iil;iiii i iili;ii i;iliiii

iiiipration to help to improve the o itie in whic
iiiii ii ii iiii i iiiiiiiiiiiiiiiiii

it hs aotc~e. s one9 result of this ooanitmeant,, asom three years
iesion to locate two major facilities in a longi
vacat ad leele redeveclop=.ant area in the center of Laneaater,,
Pensylani., urcorporate headqiurters city. It was our hopa -
eirne ecUze -that suah an unlertnlrinn would aerve as a
cataystin hlpig to revitalize downtown.

12AI wehad rirnally planned to build on our Technical Center
site (ae cuz-lex. vast of the city) we bzeca=,s convinmed
thattke=-wfaclities could be located in ceriter city La-r-:aster
withut oss f qeat~irg efficion.2y and urithout cost paralty.
Tod- ~ ~ .u Eoeta "OFrplayc-as now wc* in a seven-story Offioe
ior siii iCenter in the nwly ceatd Armstrong

Houra, Larx;tsr Equ._Yre. Theca buildinZGp. alrng %dth a corporate
lnUirg also built in the ca=3 blact at the ca--a tims
by :Ali Crt..-a Bant, have inspired a rejuenas-tion and a chang-9
of drocton i th purpone of Lancar:ter' s daimtownS that ios, eawz
fnz -4aitical epazrtzment store nz-rahandising. dependfalee (long
iii cpue ii i;inii ceters) and toward in iicased cultural

ectvitip fusnsr officesg firanclal and profeGE-iorzA b-u12dir:l;s,
aindEp,. Too,,i there is incraed iatcat in returning
'" iiii~ i iii~""

piato e dov by building r-iddle. and u:er-iv
recdenialfaclities,, thus creating a ma-rket for mora specialty
sh piniiiii
r, iiii ii i iiiii
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i i

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"""" i i l! ii i i i ii i i i ii i i i ii i
iiiiiiiiii iiiiiiliiiiii iiiiiii iii@ !iiiiii iiiii

Tlpone 213 486 3607
D. A.Hnrisen
Gvrmeant Relations
;j; r;;;;;;;;;I; h;; iiiii ~~;,,aisz;~in,, ";; l~iiii '"; iiii iiiiiiiiiiiiiiiiiiiiiiiiiiii

Dec ii r 30, 1977....iiii

Te Honorable Henry S. Reuss
A.Sibtimttee on the City
CD;ittee on Banking, Finance and
U~rban Affairs
U.. oue of Representatives
60 HueeOffice Building Annex #1
Wasinton, D.C. 20515

D Mr. Chairman:

AtanicRicdhfield Company shares your concern over the pres 'ent
codtion and future development of America's urban centers. We
ar appy to provide you the information that you requested
which we hope will be supportive of your Committee's efforts.

Fo yur information, I am also including a copy of
Priiiiil iipation II, our company's social responsibilities report.i


Doal A. Henriksen


(h report referred to, "Participation III', has been retained in
the files of the Subcomittee)
i i i iii i iiiiiii iiiiiiii iiii l siiii;iii~ii' n l iiiii"l"' iii ii ii i iii iii;si
i iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii i ,;, B;iii iii ;i i iiiii iiiiiiiiiiiiiiiiii i ii i i iiiiiiii !i iiiiilliiiiii ii iiiiiiiiiii;,i~i i
iiiiiiiiiiiiiiiiiiiiiii~~~~~~~~ ~~iiiiiii;,iii iiii ;,iiil,,, ii iiiiiiiiiiiiiiiiiiiiiiiiiii iiiii i i iiiiiiiiiiii;iiiii;~i

iiiiiii;ii i, "" i;; I

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'"' i ii iii iiiii iiii iiiii ii iiiii ii iiiiiii

;"""' ";" ";

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i iiii i~iiii lisi li~lll

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.. Committee for the

Pln in Cites
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Ret Job Traiiiiiiiiiiiiii iii
Federl, Sate nd-Loallolcie

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illliiiiiii = iiiiiiiiiiiiiiiiiiiiiii iiiii iii iiiiiiiiii ii i i ..
iii ii iiiiiiiii i i iiiiiiiiiiiii iii; iiii iiiii ii iii iii

iiiii ;;,,;; iiiiii,,,i;;; ,iiii; ;, , ,; ,, ,;, ii
m;;,l;;j~ir~~;;~,~,,,i |i,,,, iI,,,:;;,,,i;

ANSWR I(Emloye Counts as of End of Third Quarter 1977)

Atlantic Richfield The Anaconda
Company Compny* TOTAL

LosAngles CA4i265 1,128 5,393
Dallas,,TX 1,742 1,742
PhlaelhaPA2176 -2,176
Ne Yrk 1Y20 200 220
Pitbug, A157 157
HostnTX2,880 -2,880
Chca6,IL570 570
DenerCD205 250 455
-.;;;II iiiiiiiiiiiii/ ii.i iii iii ii ]i
ii ii ii ii ii ii iii iii i i== ~ i ii iii ii ii iii ii ii iiiii i iliiiliiiiiiiiiiiiiiiiiiiilli

Louisille iiiiYii762 762i

TerreIbut, IN875 875
Atlata, A -392 392
Miami FL -238 238
Bufflo, Y -764 764
Detrit, I -142 142
Vat rbtry. CT613 613
Linden NY -362 362

12,015 5,762 17,741

10S18 16,552 26,733

7&=S 22196 222278 44 474
AAwo wed subsidiary of Atlantic Richfield Comp iany.
;;ii ii i;a
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iiii"""""" '""""'""""" iiiiiiiiiiiiiiiiii iiiiiiiiiii iii ii ii iii iiiil iiiiii i !iii
i; iii sii .;i iiii,

,,,,,,,,,, i:ii ~ i iii ii;,;ii ii i i ii iiiiii
=====;;;;i;;i;i .......... .... ,; iiii~ii iii'''' .. i i== .. i ii i ....... ... iiii li i i iii i i l i i i ... .......r, ='
,,,,,,,,,;,i;;i3iifii' iiiiii, ;i;

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iiiiiii:i~i ~ .; lir E.i i~r;~i" .~ iiii(ii iiiiiiiliiiiiii;iiiiliiiiiiii lli I; lI ii@ iii

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~~ii i~i~i;ii;ii i i ii ii iiiii
iiiii ii,!,,,, ii, ,,

What plans do you have to expand or cont act these operations Inthenx
five years? What major factors have influnced hese plans?

ii @
'iiliiiiiiiiiiiiiii i
; ii; ;iiiii iiisii

The company is planning to have a new one million square foot building in
: """ "i: ~~ I"' '";~""";I""""""""""" ;~iiiiiiii !! ..
l~ ~ii ,,!,iMiiiliiiiiiiiiiiii~ ,,, ;;i:;;;iiii~l i~;; iiiii i
;;i i;; i iioiii ""ii=l

downtown Los Angeles as veil as a building of similar size in Dals Frhr
a 40-story office building, The Anaconda Tower, is now nearing copeini
downtown Denver. The Company also plans for expanding existingprdcn
facilities, chemical plants, refieries, etc., which may well a

on central cities, although 'not necessarily all located there. Sc xaso
plans may be negatively influenced by Clean Air regulations.

'""";; "" .""";; ........................................................................................ ; iis

Wha Acruitment or job-training activities does your corporationsono
that are specifically aim.d at the uneployed in central cities?


Although some ofE Atlantic Richfield's programs are directed specifclyt
central city problems, there are other program directed towards mnrt
groups which, of course, tend to be related to this issue.
""' """ T fii ............................................ ......... i i............

;""'ii""""i" ii i iiii;;; ' .;.:"";;';,iiiiiii iii i iiR iiii iiiiiiiiiiii iiiiiiiiiiiiii i ii i ii i =:

Atlantic Richfield Company engages in a number of activities whc isr
that equal employment opportunities are available to inaitants
ii ii~~~iiiiiiiiii iiiiiii ,,,i,,,;ii~ i riiiiiiii ii::: iiiiiiiiiiii~iiiiiiiiiii iii~iii iiiiiiiiiiiiiiiiiiiiiiiii

central cities. Our recruitment programs are designed to genrae boa
cross-section ofapplicants, including inner city dwellers. Jo
activities, by and large, commence once an applicant is permanent

In addition, the Company supports a number of organizations thatprvdjo
training and placement assistance to the unemployed and hard coe ueplyd
Funds and/or technical assistance-are also provided to a numberofeuain
oriented institutions which conduct programs designed to prepare

residents to handle professional positions in such high demand andsotspl
areas such as Engineering, Science and Business.

Some examples of the types of activities supported or sponsoredbyAlni
Richfield are listed below:
iiiiiiiiiiiii ~ ~ ~ ;;iiiiii ,, i ,,;iii : ;i ;;;,i ,,iii iii ii 8i ; i:B i:', ii:: is;ii,, ii, .. i;,;; i iii'iii ,Li~ iiii. ii. ii ,

1. Our recruitment program has increased the percentage of mi

the company from 10.22 at the end of 1972 to 15.0% in 1976.Alag
i number of people hired were from our central cities.

2. We have provided summer employment opportunities to Los Angesdiavngd
youth through the support of Youth Opportunities Unlimited(YUoraiton
Quite often summer jobs lead to permanent employment follow

graduation. In addition, our Dallas office provides summer epomn
opportunities to 15 minority or female students through itsEqaOpotny
Affairs Summer Youth Program and, through individual departmetaddsrc
programs, the Dallas office provides an additional 40 summerjbfo
minority students.
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iii i i i i 'ii:::

i iiiiiiiiiiiiiiii;; iiil l;iiiiiiiiiiiiiiiii;;;;ii;ii;ii;iii;;i;'i'"' """"

*$ ;,II;;;;;;;;,;;;.: i ii
iiiiiiiiiiii iii~iiiiiiiiiiiiii~iii;iiii ii i;;;oi .,: liiiiii ;"""""";

I;;;;ii;;;;;;;;, ii;.,:iiii ;" i;; ;;; iii: ii i iiiiii

3. W atnthe Natinal Alliance of Businessmeiis HIRE Program
by l egin t eploy previously unemployed Veterans, many at whom are
r n o eral cities.
I .n urDalasofice, special temporary positions have been created to
iieidvdaswho f ind it difficult to be employed. These positions
-ar deiged o elp develdp the individuals so they are able to comipete
fo prmnetpoiions. *.---.

4. W hav proidedfinancial aid, technical assstaance and sometimes loaned
exeutiesLo nmbker of organizations engaged in training and placing
cental ityresdents in maningfutl jobs. Some of the organizations
supported nationally and locally are listed below:

-Opprtuitis Idustrialization Center (O.I.C.)

-SericeEmplymet Rehabilitation Organization (SER)
....... . ..... .i i ...iai s; ~ siiiii si;:i iiiil;;, iiii= i iiiiiiiiiiiiiiiii

iiiiiiiiReihab litatioiin Commissioniill

5. Wesupprt scondry education-oriented programs which h'ave the ultimate
4ftectof rovdig jobs for inner city residents.
tohighschool stuents to enable them to attend college.
Sini ii iii East Los Angeles Isl a specific example wh"ere ve i

gran tenannal scholarships.

--Supporte Caiori outh Authority by assisting administrators to
imlclum and teachi.ethods designed to help prisoni i

youth fin job when their terms are completed.

-Cburibte fndst whbble graduates of the Addiction Research and
Treatent orpoation to pay for their tools and travel expenses to
newjos n arem and Brooklyn..

-A sonsrhi ofPhiladelphia Regional Introduction for Minorities to
Engieerig prgram may result in retention of students in high school
A~d ette preare then to enter job market to take advantage of job

-A nw pogrm, he Joint Educational Project, will iuvolve Company
VIMPIY"S s pat-time volunteer tutors in local elementary schools.

-SuporttheDalas Independent School District Business Magnet School
Intrn rogam.Through this program, 13 high school seniors are provided
hafdy ..i-tijob training in the Dallas office. "

-provide a hig schoolL sineald en~gAineering progrnam throuuggh visits
Mod pesen atos in the Houston and Dallas school districts. Through
iiiiiiiiiiiii;iiii ii;;;ii ii : i; iiii ;;; I '; "

th por mr iWs attempt to develop minority group interest in i

thescinceandengineering areas.
iiiiiiiiiiiiiii iiiii iiiiiiiiiii iiiiii iiiiiiii iiiiiiiiiii

Wei hae ethe Dallas Youth Motivation Plans for Progress program.

Thi~prira iscoordinated by a representative from one of 35 companies
In th Dalas aea each year on a rotating basis and is aimed at encouraging
li"e s8"ents within the Dallas Independent School District
...... .....~~iiiii;~ ~ ~ ~ ~ ~iii; ............ ......iiii'. .. iiiiiiiliiiliiiiiiii
iil iiiii~i: iii~, i ii i iiiliiiiiiiiiiiiiiiiiiiiiiiiiiiiiii ililiilili

to~~~ cniu hreducation through graduation. Atlantic Richfield
s effort in 1977 reaching approximately 12,000 students
in he alls aea. Thirty-one Dallas employees participated in this
effor t.ii =
i iiiiiiiiiiiii

.................. l i". ...... i i iiiii

i; i @ iiiiiiiiiiiiiiiuisiisii
'::ii....... ii i~;;'

I,;;;i;; .... i;

iiiiiiiiiiiiiiiiiiiiiiiiiii i iiii i ii iiiiii iiiii iii ==iiii iiii iiiii

AtlanticnRichil Ris very prouda of the man actvties it suppo rats.i a

i7 $48iiiiiiiiiiililiii i,000 o
;~;;;;irsi, i liiii il~iiiiii iiiiiii ;;;;i;;i;; l;; Z;ii ..............................................
effort tolassistainalleviating tehighu nemployment thatrexisutsinour

al cie Th esaiii p iibisiiiniis a iiiiiimiiiiii hoiiii

activities ttmaly most dipretlyie affe ueploymdent orelative sto te qettn

p thentialudntemploymentrin t oe central cities arasflo:

1. rAtlan.Aptic Richfield FondtonAipot Edcthion Manpower granits. I
1977,r $480 wasorcontributed-toal suppot mnoritey engineerng rgam

at college Eandh unive.rsities. Anotheaers $0,0was contributed toa
proviege nttt~oad in the establishmentdof.aAdditional Engineeringdhi
Program. at fiv colegs.
al;; ll; ll i~B;,ll.ll ,I; iii iii ii iii ii

2. Summer oemaloyment opportunitisareoprovide ford collegehstuents Ofte
theasuet.mloe r rmceta iis
3. AOfficesr; ofcl MinorityBusiness Enterrise-Buiness Management Fellows
;iiiiiiiiiiiii i ; ;ii lii;;;; iiiiiiiiiiiiiiiiiiiiiiiiiiiiii
', i i
iiiiiiiiiiiiiiii iiiiiiiiiiiiiii ii ,, ;Hiii ii i i ... ........... iiiii ,,,,,,,, iiii

Pratogram.AlaFnti fRichfrield supportsg thi ns program bypoiin ite
;ili;;liiiliiliiiiiiiliiii ii

Apmer joab opprtunitieas t oilyadeooialydsdatgdyuh
available. from 0. ou.rDallas fio e t

6 oadtpalprograms atr efiveihe colleges.soE~c
5. uporit ofsanumber of orgntizatins viafudsantchical assistanc
-An Accountingi Co-op Progra as raml
whose purpsen ai toeincrease availabity Grof minorthis in the professional

-atiounaln Avsoryt Counci fon Mioritieste in Eninern D-la $20,000
iiiiiii, ., iiii;,;i;;;;s;,;iiii ii iiii ======= .... ..............................
'"'"iiii"""""' ] =--= == .....
ii ii i"""
;;;I;;;;iiiiiiiii iiiiiiiiiii iii iii ; iiiiiii
iiii iiiiiiiii iiiiiiiiiii iiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiii
'"~ ~ ~ ~ ~ ~~iiiiiiiiiiil' i iiiiiiilll; ; ;""";" 1""1;.iiiil;;;li i~ ;;;;;js~ii~

conrtii pruion.ri tcmei tere e

-Estioablshed fo Minority gEologneeronraStudehtVi"$25a0Statentribto
ii i i i i i i i i i ii i i ......................... .. ...................... aii ii i ;"== i ; ..... ...... I; ;l ; i ....... ............ :".......... ".... ............. ......................... i i i .......... ..... ...

puierssear frn twoyemanrs.e.I or erprha ho
-Naiono alt Consortu Prorgra dut hae Dieg roees forhMnor iieson Eninerng
annuaiiiiiiiii iiiiiii i lilc $1 5l,000 lcontr ibu ntin .

ii .i:,,,

6. Two caddiinyalo hprograms were1established illon te D s offie tass

inminoritie iankteacunigadselgca ils
-AnAcoutin C-o Prgrm as stblshe wthGrablngUnierit

inLoisan ad heDala AcontngGrup I tisprgrmmiort
aconigstdnswrkfroeseetri teDla Acutn
Department prior to completing their

annually to 9.5 m~aillini 97
8. Te cmpan alo hs aproxmatly $.5 illon o it- fnds epoite
in minority banks.iii;;iiii


Whicexitingstate or local policies, if any, discourage you from
mainainng r lcatng perations in central cities? What new governmental
policies entourag ;e you to maintain or lociate opeiru~,nso in these

Theexitin feera, sate and local policies which discourage maintenance
or ew ocaionof pertions in central cities are part of a complex
government-privat ecnoiciteraction. There have been major legislative
and regul promulgated in the last decade which will be the
majo i hrdlein uban evelpment butk hav for the most part been ignored by
spoe~mn fr te ubanpopulations. Thea most important is "clean air" policy.
thefunametalecoomi factors that influence location decisions are pollution
ab"Oive-apaitylan, labor, capital, raw mtateials (especially energy),
an :d ,traspotaton. Ths factors provide a convenient topical basis for


Themos imortnt actr in the economic growth of cities is the Clean Air
law nd rgultion. Ufortunately, urban leaders have ignored this fact. One
of te sarcst esorce in America for the rest of the Twentieth Century
willbe ir plluionaborptive capacity. Any coherent policy concerned with
;urbn dvelpmen wil hve to address this problemt.

A ~ ~ ~ ~~~1s cit +-nhv-lnsildorheap labo, cap8ital, entrepreneurship and
ii ii il iiiiiiii iiiiiiiiiiiii iiiiiiiiuiiii~ i iiiii s; === ==iiiiiiiiiiiiiii iil

accss o rw mteralsbut if it lacks air pollution absorptive capacity, no
iiiiiiiiiiiiiiii iiiiiii ;'iiii;riiiii;;;i iiiii .:li,,;: ;;i ;; ..: : ".' "; i

lbe built and no new jobs will be created if they are
depeden onemisio prducing processes as is most large industry. It appears
toiiiiii 'b nationalpolic ocease or imi growth in air polluted areas. The

re~ut t toputtheburen of growth not on the current air Polluters but on
new iiiiiaresult of the EPA non-'attainment policy codified ini

the leanir At fo aras that have 'not achieved or way not achieve federal
air qiiality-standards.ili;

No nw fctoieswil bebuilt and no new jobs will be created unless a proposed
newfaclit ormodfiction of an existing facility is able to provide compensator
-redctin i emisio (tadeoffs) greater than the emissions from the proposed
newiiiiiiityiiiiiodiiiation of the new facility).
are presently available will probably be eliminated

withn te nxt 12-1 moths. Unles's a state can show in a plan (which must
..............L...y 1,1979) to meet the photochemical oxidant and
iiiiiiiii;si iiisi;;ii iiiiii==i =iiiil iii li=ii iiiiiiii == = i= =
:;;;;;;;;i~l;;; l i;;;;;;;;;;;;;'"iliiisiiii

a by 1987 and other pollutants by 1982, no new facility

or mdifcaton my b costructed. While the Clean'Air Act speaks about this
proibiionbeig apliable to only major new sources or modifications, EPA
intepreatin oftheter potential effectively includes almost all new
sbucesor iodfictios within the construction prohibition.
iiO iiiii'

=====, iiii siliniii ;iii,,,

iiiii ii iiiiii iiii iiiiiii, iiiiii iiiiiiiiii,,,iiiis,,, iilii: ;i
iiiiii i iii 9 ~1 i iiiiiii iiiiiiiiiiiiiiii

.......... 1@ iiiiii ~1~ n e~ '1 1 iiiiiiiiiilili

;s~oosis,;;isl:0rliillllli~:,xiii :iiii ii""i""'iii;Iiiiiiiii:ii"R"j iii

n~~iii!iiiiiiiiiiiiiiii iiiii'.~~, !i i~l1 ii~i i o


ij j=,i_,,, ==,, =iiiiiiiiiiii iii



i icii

with the 1987 deadline even if local authoritiesweetimoeheos
iiiiii iiii i ii! iii

strinent requirements (suchias a reduction in aiiiuaeb90

pointed John R. Quarles, Jr. (Wall Street Junl eebr2,47)
liiio iiiii .iiiiiiiiii" "H' iiiiii,,,, ,,,,,,",,,, ;" iii;; ; iiiiii"= ; ............ ;;n i .............

iiithe Clean Air Act will absoltely precludemajoindsra eelpetI
state if that state's implementation plan has not be rprdb h tt
and approved by the EPA by July 1, 1979 for wateerrasn

The Clean Air Act clearly needs major revision ifidsra got st
continue in major industrial areas. At a miednimm 97daln utb
extended and the environmental standards must ber-xmndtodtriei
they accurately reflect health necessities.

Currently, EPA policy denies a company credit i trdcsarpluini
advance of seeking a permit,for a new pollutingfaityWhthsmen's
that the company cannot "bank" air pollution reducinceisfrltrue
In ordej to get credit for air pollution reduto tob taeofagis
pollution which would be emitted by an applied-fo aiiy hecmayms
coordinate theapollution reduction with the polto nces.Ite-oltn
tradeo W should also be allowed by EPA in areas weebt oltnsaei
niiii iii iiii; iiiiiis;; i i Ilij:ji;i; ;;,,:"jiiii;
.Ilii; il" ., ;;i iiiiii ii ii .................................................................................................................. i iiiiii ii i ii ii.. . ... ii i = i i ii = i iO= ii' H".. . ...H.. . .... .. . .. .. .... ... .

the non-attainment category or offset the attainmnofaplunt Th
Clean Air Act needs to be changed with the goal o rmtn rwhblne
with improving air quality,


Densely populated cities without urban parks are esdirbewkenromt.
Cities and states should have minimum green spacerqieens oa
jurisdictions could provide tax incentives to comanetopvieacsbl
green space as part of their landscaping.
,iiiiiiiiii;, i ll

iiFederal policy should makei it clear that local l
automatically imply exclusion of major industria

refineries or power plants. It follows that Nation cai n topei
Administration (NOAA) should reject any state coatlzn aaeetpa
iiiiiiiiililiiiiili iii;

that does not set aside land for industrial/energ rwhado htde
not set up reasonable criteria for energy facil

siting iis an urban issue because urban areas arehees a.i

require adequate energy supply growth.


Lack of quality schools is an important cause-of problemsointh
sector. Too high a proportion of urban youth enes telbrfreil
equipped to work in an industrial or bureaucratic niomn.Po ra
schools also make employee recruiting and relocatinmr ifcl.I
private schooling costs must be factored into thejbacpac eiin
then wages and costs go up.

States and local jurisdictions should be willing t e prpit dctoa
standards to ensure that all graduates have minimmbscsil ob
employable and to provide sufficient funding to aheetoesadrs
liiiiii"iiiii i ii;i lE;,;;I ic @ iii
iiiiiii iiii

niiiiiii i i ; i
iiiiii ii iiiiiiliiii liiiiii~isiiiiiiii;iii ........................ .

iiiiiiiiiiiiiii iii

...................................................................... ii
iiiiiliiiiiiiiiiiiiii iiliiiii~i~liliiiiillilili i iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii

Capial o fiance is of cours important. Ris:ing taxes and lack of incentives
areimprtat etardants of growth. The federal government could set aside
aafeatal construction fund for urban industrialization similar to
the undssetaside for ship building where profits from specific ships
can be set asd tax-free for investment in more ships. Such an incentive
coulidt e vryifunial.,
iiiiiii'iil ;; ii iiiiii i @ i~ ~~ @ ii ii

Prpee, primarily driven by wea ,osts,,are rising faster than
u.Federalization of welfae programs mLight be considered as an
.....................ii,;iis~i @ iiiiii iiiiii, i@ iliiiiiii ii iiiii iiiii;; iii ii i.,iiii @i; i @ iiiii@ @ i~ ~iiiiiii

altrn~ivetothe current system.


Urbnares mst import all'the raw materials they process. Current experience
ii ne;gative bias against further transportatiion links, for energyi ..

espelaly. acking additional energy, there can be no future growth for
thed .wery-itesive urban areas. consumption in ui areas is obviously greater tan in

sa al areas. It follows that clean energy is very important to a
contnuedurbaization. Currently, national policy is-tilting away from the
cle st eerg sources nuclear and natural gas.

In hecas o iastura gasasits consumption is the linchpin of the maintenance
oatin restricted basins such as LosAngees. The national
poliycalingfor artificially low prices on domestically produced natural.
..i liitig the supply to the direct detriment of the urban areas and
wpriority consumption. In the short run, costs maybe lower,
Srun, conversion to coal will take place due to a mandated

sbprage*f as As consumption of patural gas is reduced, the usability of
urbi-ares wll also be reduced. 'If the government wants urban industrial
JobsthenIt sould promote production of natural gas. It must also expedite
tberoluton o the nuclear waste aproblem which is one of the major inhibitions
e... ........ ...r development.. .

An varable in the industrial location decision is the cost of i

elecricty.The current trend in social reform is to deny volume discounts
consuming industrial companies.

How~er, larg blok sers that use baseload power provide the basis of
et~omis o sale for efficient steam plants as opposed to smaller scale,
les eficintgas turbines. if, analytically, the large industrial users
wer searaedfrom the residential users, the result would tend to show
that ~ idsral consmers used efficient baseload power while residential
consmerspriarily used~higher cost peakload power.
it oul fo lo that the implementation of electric rate reforms which would
elimnatelare block discounts in urban areas Obuld be to make industrial
loctin lssattractive in urban areas that have large proportions of poor
;iiiiiiiiiiis:iii ;;, _, r

i iiiiiiiir i iiiiiiii i iiii
L iiii,iiiiii i iiiI~;
ii .. . .i ii .. i ...... i = ==

and elderly.X
N ~lr~ln@ r~

r;~, N NN;,~o;i~: l

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... ...... ... .. . ......... ........ .. ................... ........ ................. .... . . i
l~e;; ';a;~ P 'I""l

I"" '""R i; ""

i liliiiiiiliiii iii

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Iii, "l
",si",,;,~,,:iil~b,, I;i;;
li:;isi~; j~l;;' si ~ l o;iiiiiii'i ri o i;s;';";; ii: ;:;l;

iil;iiiiiiiiiiii i0; iiii iii~;;;" iiii iiiiiiii iiil iiiii|i
We odvo ate uityatiiies biis~; iaed

;iii;ii iiiiii iiii;; iii iiii;ii iiiii ~
rocate n structure ta i n fact orm o orsfer payment froml he Industrial

siepie -retosmllres idenil usr for soucia welfa,,,rei purposes. Vryag

8; ;iii~iii ii; ;,ii i ~i; ii iiii .............................
o ii aii r plpliion oif withrawin from puli y uae an bcmn
producersofl powe fortheir owpneuse otof ate pssbiles sdetimnt of th pb
utlity oratorsl and ther smaller c o a iiiu stomers.

I'''"l'"iii iili i iiiiiiii:i""i ;iiiii~i;
....................... iiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii ...........
tiatcould leisio fori ao fie rfciisi cubsaaia ra of

iiiiiiiiii iiiili iiiiiiiiiiii

iiiiiiiiii i iiiii iiiiii""is
cihties requres cronsideraio ofb mployes a ommoter facilities. If sppsstms
toair poollution. Where gad overnmentse. programs ln a have beenofen
unisucsiosfulbek ine getin comtrsoute ofautobiles andrianto masstrast
Atlantc Richfieldrand other caiompnies Twnorkaing withgovrnmet,) hae owt
some sucicress. The he ompany-ponsred ass transitprograme carrntpoiemdl
that couild lead to ubtantale credutiahon inatom obile emisios Thetlatic
Richfields prormpvidesshspubsidie s 1 andsethers inentiesr to hemlyetoji
car poo anr poolerns cand btordetl.Oe

ebemission, conseovedtats fuel ansrduedcngestin shu drbeana iabi rcth
thatane s increaser inte riershipn haverage to 1.4efrom thecuren 1. pssngr
Richfield's ridership average r~iiliii~is~iis 17 asener erca. e ae emnsrae

to facilitate traaeoffs being exchanged or amarketed among companie o ht
for example, an insuranc:e company with mean commuter emploeets canpsann
offset to a steel plant applicant. This will help promote boath lae i an
job ceaetion in uranu areas.

This proposal is by no ameans a long term solution but it would allwte-la
.Air operate more realiticeally and at the same time helps peetIdsra
growth in urban non-atataiment areas from coming to a balt. Whilei yb
considered by some desireable as a means of social policy to moeindutyIt
less polluted areas, this does not handle the problems of the ianne iy h
residents of the inner city, particularly the blacks and the chicnsared
have seen too many jobs vanish from commuting distance..30. was ufttoae ht
the Clean Air debate did not include urban interests as vitally afetdpris


Symbolic of the decay of urban centers is the loss of attractivenes fdwtw
shopping. Contributing to the suburbanizing trend is downtown trafconetn
exacerbated by the lack of good and effective mass transit.

Mass transit is especially inappropriate for shoppers with packages u
government mass transit policy focuses on worker/commuter transitrahrtn
shopper transit. It also tends to ignore the fundamental fact thatrni
systems are oriented toward worker/shopper destinations which aredesOVno
origins which are diffuse. If it is true that people will resia sintrni
systems that involve more than a three-block walk. then transit sytmdsa
and funding must include plans for interfacing with people movers, iibss
In the dense areas and bicycles and cars in the less dense residenilaes

ruibe,_i tecseofsa hoprs, transiot syoslems shoulodminclue faiihtie o
sbopin cat oadng:nladitionand ubsid andin-setst cart storage.orTeTrni
Authrit inSanDieo currentlymountse bikenenl rak unthe bac cofsomer ofth
buses. This helps. a1ut i s lockingbikedracks onsidwls near buabstops
would alocotibtrv aing bouslsdmr convent ien t.astatoiis
Since mss tanst ha oathgronic caeoul probalem tbenComitte.ih

consderroviing tradtigoneal susiyand ionstitulte mai tan idsport
betwen ost ffies is an offa uselforatbuses.ecBuses in Denmark rba
curenty crrymaiboes wih cans bek convenientlyusmedt by crmueris ag

may ~ ~ ~ ~ beh'ovne yepidat pbopse sationsband arewthsstvuneabeg toc eqie
theft. ~i Th ..Psa evcies fiostd contractsith trnst aouthorities tosov
provide ~du tisevc.Bthgouphe ouldcypsobaflytionefyit.t

The ostpowrfutolothate gnovernent hse toostmiulates uraniondutri algi
gro~~~th ~ isteocert axiorno to tax. Itte migt rabe possiblevestimulateo

area. Ohertaxngrechanisreasucg asvextraenvestmentloaxcreditse mighetiv
The State of California has proposed an urban growth strategy which requires;;i
infilling vacant areas in cities first. Ostensibly, it would appear to solve;;:;;;,,~

theipresomadrsedb yu iqir, Weoed. fee objecthve nilltoyeitewil d
worsen urban problems d n seleced ays to creationr g th. dse

Requi ing business to locteoin otherwiseuneconomic aread willoon the margin
must be developed or disincentives removed. The objective will not be served
by placig disincntives n selectd areas o creat growth n a desied area
This ill b molr likey to ead t no gowth

iiiiiiii;;; iiiiiiir !!; ii!!iiiiiii~ i~ i iiiir r iiiiiiiii!!!iiii iiii ;;;i;;; ......... ,,,,,,, H;ii

t e iiiii the
toombe 14, 19775

Th Hnrmabl HenryS. ess hara

cowtral ontBanking, rinan f 'Urban Affair sl
li ll iiiiiii il:::"";;iii 'iiiiiliiiiiiiiiix
i~liiiiiio"' ; niiiiiiiiiiil; ;;;u': iii;; liiiiiilii;iii;;
Sb ommte oan tenta Citiy n hiruepoe
U. iose ofeReforesenativesyadipratoe
Wahigtn D.C.ns 2o0or5euet15h

Dear Oam Reuss:at o i N
Mr. 7 Michll hasased merson reson tooorsreyadrni~
anyinformation that'Wil nhepthistcommittee deterieanainlpoiy
iiii~i 'iiiiiiiii iin u,i
laid central cities in the relief of their umm:loyed. We agree that th

pligh ~2 prsnsot of our centra ciisan hir uepoe sapesn rhe.Yu
requst stereorea timely00 and imotant tone.

inorespone to yoursieqest; dtherac o ifraio spo

1. Our s crorae office in tNew YokCt mly prxmtl
1,875 fuls tmke persionsfiandtu he alscnevi
.;;..;;;;..;;mately 12,300. Of this total there are 2,400 District;; ;

areas throughout the country beas for nqesse
of selling through independentAvnRpenties Thog
the use of this system, severalhnrdtosn vnRp
resentatives and their familie
with our Company. Most of ou
work part time a few hours a weadi otcss hsi
the only type of part time workta a aiyftit hi
schedule.. The Avon Representatvsftter ciiisI
with their normal household wor -crn o h en n
accomplishing other family responsibilities.

2. *WithI ibe continAKued Zincras Zin o#ur Msalle we woldexec
to Continue to provide additional Opportunities oMngr
and Representatives. There is a possibility ofexaso
of the Sales Centers referred to, ands ome possibead-
tions to our corporate office staff.' In addition, asour
business grows, there will be a substantial increase
business to our suppliers and other services, thoghor
improved results.

This_-statement is supported by the fact that wehaeavr
strong Corporatep Responsibility progrear wheitehyweuemnr
ity vendors, who are primarily located in centralcte.
Enclosed is a copy of. our Corporate Responsiiihty oke
which goes into greater detail on our endeavors nti ra

3. Our recruiting and -job-training programs are not ie t
ant specific group. However, we use minority emlymn
agencies and the government-sponsored OpportunitisXds
trialization Center in our recruiting activities eas
have a commi tment under our Corporate Responsibilt rga
to purchase $6,000,000 of supplies and servicesfrminit
Vvendors in 1977.

Al though training programs are oeyen to all, Avon-epoes
tthey have benefited a large segmaent of ou- minoriyad
4ormerly unemployed work force.

4.The greatest obstacle to corporate operations in eta
cities are th~e heavy tax burdens imposed, by statanlol
governmentsw The financial plight of our cities swl nw
to you. Property tax relief would be a maodr atrcina
would some farm of-federal tax credit or othertaIneiv
to locate operations in central cities.. Severalmnhag

ous-President, William R. Chaney, appointed an vn ak oc
... .... .. .N.tq address this very issue. Their recommendatiosaeith
process of final development and we will be hsapptosaehm
wi th -you when they are complete .

We concur that an.increase in operations in high-unepomn
-Ires b maor copporations will help to xestore confidence6 in thereiaof
A-Pse'piils. Wk hol* ther resul ts of thlis commi ttee' s survey andthefcs
A, -~f ur askforce will help accomplish these goals.

Sincerely yours,

Donald S. Moss

(A portion of the referred to Corporate Responsibility-boke
toreprinted and follows. The remainder Is retained in thefie
ofthe Subeaomittee.)


Avonhas-alays eenawae of %w ten a need to independently -ehtance
thei ownlive andthei failies .
Todywhn ll oas remore -aid Avon is-uniquely suited to help
woe and, minriie reaize- .the lite-style they pefer.... to grow and
their e -in terms of their home,, their
i iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii~i~8~j~i~i;;,,;lll ;Ul


Clerly th ned f mnortis to enter the mainstream o Amriican business
has.lon ben ngletedand is a major challenge. With our extensive
purhasngcapbiltis ad our continuing need for a wide variety of
souce, w.,arein a atral poqition to seek out, -an encourage the
d o ii thm o -owned business.
Avonisumerism. Sinceour beginning 91 years ago,

we hav hadan ncon itoal guarateeta of customer satisfaction., More-
over we nitatedsuchpratices as ingredient labeling evenr before they
ihas been ypical of our dedication to assuring
srrrrrrr r..................... .......................;, ;;; .. ........
iirri iirir iiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiii iiiiiiiiiiiiiiiiii! ii iiiiiiiiiiiiiiiiiiiiiiiiiii

consumer confidence. The result ha& been consistently sate, effective,- high
.;; 1;;;;, ,i~;i,;;;;;:iii ;;,iiiiiiiiii i ii iiiii ;;iii liiiiiiiiiii

fied customers.
Community Support,

Avo h~ atraitin'f crig about people-employee welfare has always
s. Also, with the peson-to-person basis for our
sale, Aomha alays eenresponsive to the local community. To reach
out oretuly trouh vlunteerism and corporate effort is a fitting

4. ine 155 th Aon bp~ltion has been an important means frbrngn
HE inacia reoures o, earon social problems. An excellent vehicle. for
makig soial ommiment, the Foundation has the flexibility required to
meet6hagin proriies-aswe review our programs, in light of ,new social
".... iii " i iii ii" : ,',,,:.... .. ;iiiiii ..
.... ........' iiiiiiiiiii ............. ...................i;;" ==iiii ii

,,,,,iii "iii

...... i i

., ,,ii i ; i iiiiiiiiiiiiiiiiiiiiiiiiii

iiiiii ii iiiiiiiiiiiiiiiiiiiiii

iiii,irrrrrrrrrrrrrrsiiiiiii ' l;i~
Iiii tii o alluront have bee toon' Mi
an7 anpo~d posaritione fo pnrihan*?u
consunitiesh ecnmic lif.ror eampe has a
iiiiiiii~ii;, aii; iiii l~i~iiliiiiiliiii

tieds havben rerceivn sysmtoemai aid an

;i' ;;iiiiiiiiiiiii~iiiii;, ;:iiiiiiiiii; I ;"" ii~iH ........ H iHiiilii i
enouagment throug thetOfficof All6
Buinieass E..... How... h s..ever, Avon ......

iiiiiii ;,
busines -'-a buinssent erpriet an oawmnedo
cnrevieed byane onreasred sas our total g
avenue for helgedpersomns-sill busiantfo
tonlyaproximategoly 10s ofmeasured syst
perodct And isrviewed stil t ro manlyagen

4oflln the natison as busneses fiMore asss
tanestcially isneeded.t

Ther ar ohrwaft AvnraWra

Tosdrawl standards:
intouthestn sources o f Ameica musu

Th cAontrAc tis

to el tatvusinesg me and exeiigrw win yoronmed.avnis~

1972 an orf iiitiiiibyiiaiiurchiasing manager. withiii thiiihelpiofiithe
National == Developmen Counci iiiil aiiiiiiiiz o i
.................................................. ... .g r e s s .

xi @ iN
;;;,8iri ;i i iiiiiiiiiiiiiiiiii iiiii ii
spet 5. mllon it mnoit-onedfims srpssng urgol 1 4.

million. and compared with $1 72,0D0 in 1972. And this, growth is cb inuing

;;;ilii~ii iiiiii iiiiiiiiiiiiiiiiiii ii iiiii i
eahya ahdth ee vnBanhlctosad ayo h o

Ofiedprmnsstanulmnrt edrdolrgas hc~m

reieW ndinrese a or otlexenitre icras ad s :
aveuesforhelion nuoriy bsinsse weOurprores

toadteegol smaurdsseaiclymn y ot.ywb

year. and-is reviewed by lop management.

Equll iporan, he inriy Prcasng roai isb spd o tect,
used for&N supplers. In any instnces, a uccesst bcneftMR-MUM"
dept iison olvngspeialpmkxmanysmN cmpay mt- hn

i minority sple o oni
Inreats, lseis arts for packaging,

i;ii::iii lii;iiiii;' ii iils; iiiiiiiliiii Iiii ; iis~iiii ; ii; ;;: '; ''; Ei iii @ iiIi~iii~~iiiiiiiiiiii

... ~ ~ ~a proviing f minnthee technicl andmagentsitnc
thats cant hvAvonefcorai productivity ma n
...... ars lofhsqch,i@minorityiii;ii, suppiii; iiiiiiiiliersi now providei Avon ii

phoogrphqs, modlsgrahic at sources and production resources, as
we~s mnorty-wne meia hroghout thaecountry. Avon black consumer
advertising ~ ~ ~ 18 ihadebyUwolInc. black-owned advertising agency.
Avonhas lso ake advntag ofopportunities to contribute to minority
ecnmefina lsector. $35 million of Avon's
lifisuanecoirgis insuirei d tifrough thre; e min iiority insurance"'
ii iii ii iiiiiiiiiiiis; ;ii

ii;i~i;;;; iiiiiii i ;I~ ll i iiiiii

iiiiiiiiiiiiiiiiiiiiiii; ii s8i:

copnis.o nd $30 million in Social, Security and
Fedralwitholin. tx pymetsare made through 32 minority banks
iiii' iiiiii' i i i i

iiAvialsoimintiiiiiim deposits totaling $ millioi with these
In ddiio, a'blckownd nsurance brokerage firm is placing and
giamihsieinggrqp isurnce fr Avon's mail-order subsidiary, Family
Fashons An baks hndlng he orporate pension trust are encouraged
to se he ervcesof inoityinvstment brokers.
But ccoplihmet wth inoityvendors is more than facts and figures.
Liveuman ae involved. What people tell us says a lot:
"'Avn hs ben alifsave," aysone vendor. "it it hadn't been for Avon,
our ompny oul hae hd t goout of business." "To work with Avon is
an ono," aysanoher Stll noter talks of how, with Avon's support, his
iiiiii;: ;;iiii; ;;i;iiiiiiiiiiiii

comanyhaben"orinoard getting more business by building
l ii iiiiiiii'iiiiiii iiiiiiiiiiiiiiii'

confdene i ourabiityto sppl." not her praises the ability of Avon people
tocommuncateandiiand how much this helps to achieve the

A frter:reardngresltof heAvon minority economic development
effots as eentheimpct n ohercorporations. Our intention at the outset
wasnotonlytoformulateiiilid a program of our own, but also to
inflenc othr cmoaiesincudig our suppliers. And so a letter went out

fx tives. In essence it said, "We tried this
and t wried fo us.Whydon' yo try it?" The gratifying outcome: we've
bee abe t stM uateothr pogrms similar to Avon's.

iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiii

BAUSCH & LOMB (*EECTIE FFCE ame-CMI UNcou Mr F mainSOUAREmm"FERshamWmeaI4n m


.. c. Wh=ernm 29, 1977

u.s. House of Respresentatives.
subcommaittee on the City
;iiiiiiiiiii~iiiiiiiiii iiiiiiiiii;i


committee on Bandking, Finance an urban
Affairs of the Ninety-Fifth Congress
604- nonse office Buildin Annex 1
iWiashiangton, iD.C.. 20515

a **a

b n:iiiiii t lemeni

The following information is supplied in response to your request of
iiiiiiiiiiiiaii i

October 27, 1977.

1. Bauscih & lx ikha two poutn acil-fties** located in the
central areas of the city of anchesftr, mma ym&, emplyiga
approximately 4,000 out of a total domestic work foren oft

2. Therer are nopewsent p~lane to expand or comontrat hos
oerastions in sthe next five years
3. While we do not shae any recruitment or job-training
activities specsificalglyaimed at the unemployed in amentra


ities, e dely qe havily on te serisa of e
New York State Employment Service office, located in the
central part of the Ci:ty, and onwvatl.4 traffic to fill
Sour unsktilled and, aemi-skilled job aspft. Thae= is good
acesns to our operations for central city residents.
4. in can think of no existing federal, statev or local
policies which have discouraged -us froem nmainsteainn Mr
operations in central at ties. on the contrasyoh -se ew
York Sat~e. purbanevilopment ourporation was instraighatal
in enablitng us toI relocate our princippl rochester ftasiltty
from1s iarpreviu central city location of 7S-100 year old
buildlings to our preiset facility also in the central inity

Location of ansch & Lamb facilitiese over the years has
been determineds by business needs. One of thmeseneese is
available manpowe~r to meet all of our job openings. During
thie last: tP decades Rochester's labor mharket hat rat been
abtle to supply us with enough skilled arA seanhi-kille
optical wiorkers and machinists. Tbin problem ha Q&X~~
to thme Company's moving ome of its operations to wbere
I trained employees were available. Are 9VW0 a-MM a3. policy
that would ralily acco*mplish the task Of Pueparig the inner
cait work forc for 6emi-skillee J*bG iu ifht&*ty w@4l
.Ceartainly enoourage us to maintain operations ift'tIOem 4"88-.
0 vio ki
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iiiiiiiiiiiiiiiiiii~iiiiiiiiiiiiiiiiiiiiiiii iiii

siiisiiiiiii;;iiiiiisi, iiis;Riiiisiiiiii

!!!!!!!!!!!!!!! iii

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.;liiiiiiii iiiiiiiiiiiiiiiiiiii
iiii;;ii~~~l ;;i iil @
;ii ii: : ii iiiiiiiii; ; ii~iii i~i l i iii iiiiiiiiiiiiiiiiiiiil iiii iiiiiiii iiiii siiiiiiiiiiiiiiiiiii


The Be.i CouspoMFraptiotntv
Exectiv OabfficeOfsc.Bili

DendxCenter 1,17

di foouthfvield, Miciga 48076a
Chairmen and Presidenti~bsiiiioni~";;l;ii;

tk youbcommittee, onatthe Ct
Committeeeod BankingeFinance an
solve cahpreheniiiisivetaspra

and other bano Affairms
U. woul Heousen ofRpedeealtaoive
212 tecnRaybr House Offic Buildin
Spo ascingon D.C 20l515asuin

DecembTer 14ia, 1o9t77 lan
Dearl criteiie Reuss s:ro

quesionair onthepliht-ofighe on rb'and apprecinatecn
that Bndix a- beneas ed. for it otew.,Or things bein
1d "neutralize"l;ngwit yiour, soca-

problems~ ~ ~ migh go~nta ciie longmm t wattentasiotng

and ~ ~ ~~t thttethuinsivle geerl mprehecietasion fterm

As geeral olicy we ie. wouldu reomed-eeralpoi-
cies which would tends toeakia e orneuc h differen esn

s~tndadiationofe uareplicites answell as assurinesionag

years-ha~n benwlldcmnted. mAll n othrstingsneingtes
demographic guidelines, these terms take on different mean-;"";;;
ings to different individuals; the answers to yourRque'stionnaire
can vary greatly, depending on the meaning assigned to these; ris~
te rm s .i~~,,iiiii,,,,, i i; ;;;;

.Uiiliiiiiiiiiiu;;;0 il ;iiii;ii iiii~iiii iiiiiiiiiiiiiiiiiiiiii

!iiiiii~i ~irr ii
country;e somee are id ntified i n i s ns a
centrs, (28tmpoyesrs inmetrolitan Foreasm i mle
uSanb Fcansidere 0entrloye) cities.

Deri 20employees.)hsedviin are: Indust rilTos hcg

(220 employees). In~addition', about 5Bni fclte
are located in metropolitan areas-urndg cetalctis
Bendix has a total domestic work forc fapoimtl 000

All Bendix facilities maintai
grams, to recruit minority persons anfeas.Bdi
facilities also maintain community-oretdporm hc
are designed to inform minorities andwmnaotrpotnte
in The Rendix Corporation.

Our employment programs, whileIntscical imdt
the unemployed in central cities. aredsgnd"h
source in conjunction-with our overal ertigefrs

Again, may I express my apprecaintyo dyDr'-
committee for giving Bendix the oppotuiyt xrsis
opinion on this important-matter and edb lasdt.wr
with your staff to provide any informtoyomaned'

i iiliiiiiiiiiii iiiiiiiiiiiiliiiiii i iii

ii ~li ii



December 1, 1977

The-Honrab e Hery S. Reuss

iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii' nnii~ iiiiiiiiiiii ;;iiii;; ls;iii i iiiiiiiiiiiiii @ i~~
~ ~~~~~~~ii iii ii i iiiiiiiii I iiiiiii iiiiiiiii

Commtte onBakig
Finance and Ura Afnfiirii

i4HueO c Buiding Annex Iil

Washngto,-DC 20515

DerChima ess:t

M.Fy has asked me to acknowledge the recent letter from
iii ii iiiiiii iiiiiii iiiiiiiiiiiiiiiiiiiii iiiiiiiii

-youandtheothr members of the Subcommittee ont the City sent to
blim congerning Bethlehem Steel's participation in our nation's central
E ncleose ar answers to the four questions you requested us

to omi lte. Webelieve they give an appreciation of how heavy industry
,,sch s seelan shipbuilding can participate in the revitalization of
cen economies. Hopefully, your subcommittee and government at
iiiiiiiii iiiiiii' iiiiiiiiiii ii iiiiiiiiiiiii iiiiiiiiii iiiiiiiiiiiiii iiiiiiii l;;iiiii i; i; ii i~ c ,; ;iii iiiiiiiiiiiiiilii;; i iiiiiiiiii i; ii; i @i~ s; l i iiii

iiiiii levelsiiiiiiii wi l tak the necessary steps to encourage such participation.ii

wihkndest regards.

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Answers to questions posed by the Subcommgittee onthCiy
Committee on Banking, Finance andUrban Affairs,
U. S. House of Repraesnativtes

1. Question: Which of youi corporation' a operatiosaea rsn oae
in central cities, and how many persons do they emlyotofyu oa
work force?

Answer: Bethlehem Steel Corporation is the second-agsprdcro
steel in the nation. We supply about 15 percent oftecunr' a
steel and produce a wide variety of finished zteelprdcs

Bethlehem is also prominent in areas other ta temkn
raw materials and mining, in shipbuilding and repair n:patc n
Sother diversified interests. Our facilities are nainieA cp
and, in some cases, worldwide rangin from raw mtrksrpris
on three continents to a shipyard in Singitiiwa.

Bethlehem currently employs approximately 90,0
following is a review of our major operations locatdwhiorna
major cities.

Is It ie prxmt
Bethlehem Operation(B) Within--Fo -arn
Major City In Area City LimitsMjratZ fiin

Baltimore, ND Sparrows Point. Steel Plant No.1Mie175 ,
Sparrows Point Shipyard No 1'ie .0
Baltimore Shipyard yes

Beaumont, TX Beaumont Shipyard No 1ml ,0

Bethlehem, PA Bethlehen Steel Plant Yes1000
Main Office Yes- 5"

Boston, MA Boston Shipyard Yes40

Buffalo, NY Lackawanna Steel Plant NO 1 ie ,0

of LacaanM)

Gary, IN Burns Harbor Steel Plant No 1 ie ,0

H-arrisburg, PA Steltoln Steel Plant No4Mie3,0

Betlehm Operationts) Withimn From Currenut
MajorCity-In Area City Limits? Major City Employment
Hobokn,..JHo..k.iyard ies i800i

Jonton, A JontonSteelPlant Yes 9,000

!eLeannP LbaonSte Plant Yes, 1,550

LosAnele,- Lo.Anel teel Plaht No 12 Miles 1, 400
C& (Wthin Limits of
Vernon, CA)
,. ~ ~ lll~ l;;; ,-'! ........" ;I;;=i'ii; Oii """""=''="'=== ......... ...'" iiiiiii

San Pedro-Shipyard Yes 600
iiiiiiiiii~l i ii;r; iiiiiiiiiiiiiiiii

Sa Faniso Sn racic Shipyard Yes -1,000
..... ............................. iiiiiiiiiiiiiliiiiiiiii iiiii; si .i

Seattle, VA Seattle Steel-Plant. Yes 1,000
ilmpt Wiiiiiim port-iiiiiiiiSteel Plant Yesi 850

Our ufflo-an Division, whfth fabricates welded-steel plate
proucsemloy aprxiadhtel~y 600 people in the following cities:
Baltmor, HD Bufalo NY Charlotte, NC; Detroit,.ME: Dunellen, NJ;
Hallndal, FL. Jaksoville, FL; Raleigh, NIC; and Worcester, MA.

Wes ffices, small manufacturing units, and ware-
housesroximately 2,400 people in 50 cities.. you have-to expand or contract these opratiionsi

inthenextfiv rs? Whit major factors have ifluencedthese plani?

Answrc Seel peraions -- We have no significant plans for expansion
of he istd seelaking fatlilities over the next five years.

Unlesssfederal legislation is forthcoming-to
erican-erchant Marine, there will be very little
needto xpad ay sipbuilding or ship repair facilities in this

Addtioal actrs make It-unattractive for us to expand our
faciitis i Hooke, NJ and Baltimore, M.' We feel the taxes are
unresonbly ighin oboken. Expansion at our Baltimore Yard is
questionabebec ethe annelinto the Port of Baltimore is not

bein~drdge an mantained to a sufficient depth to permit larger
ship totrael p te Chesapeake Bay.
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3. Question: Whath recritment oedrl jbtaingatviedosyu
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diso ura === ........ from ma inine o
corpoatio spotnes ovr thatare specifial odatteuepoe
ana i cen raloat citie ......
iii,,,,,,,,,,,,,,,,,, iii,, .......................... iu !!;i ii iiiiii; iiii H ,,,, iii i ,, ,,,o,,

Answer: Beth lehe Steelohedartiiaeeii tr!!iiiiii
activ o nsupportoftd shorunemployd u

;;;;;;;;;;;;;;;;; '' ';; ,;iiiiiii

disadvantageknd fom thp neoptio hof thtJbrad:t~ia n
indpartrby the Comprehe ndshivebEmloyetadTani< c CT
Monstroftese programswere inactiveduin eca

196-97 dueratfor theverniont eoomi prov:.Hoeer urn t
periods 1974-1975 tapprnoximately 25ersnxeetaie rmrl

itea altible at oston Areas.
Ipart oforeseainin Beheffr ado gee ra iniaoostrta

4. oQestin;en Whic eanstatgeerand lo tateo oa oiis fay
discourae you fromv maintacipnting orlctnhoeainei eta
cities? Wh actne governmenthal poices ol norg- o
manain poriablocte operationsointheeo res

Anwer:Mn fteuepoe are peopl askho ae' shotverduaton
shor wwan grinig anfad shaoet on jow xerec.Toalrexet
teour thae laind sof pet opleiwhostraitinlyse oki

Mhany factoeivrs,- partincualydn th ako]pns e dsorg
isoimpretant for, govermen to perovide telaesi ncetn
buiessa climtros e thant somaes rexansoln oe-igt feit
ing iiii fac~iiiiiiiiiiiiii~ilities iiiiiii oii niiiiiiii i niiii iiiiiic tie butiii al o i Nn i t

aereasiatcossible tohaty jobeekereds.

becomoe an aciear participante in tervtlzto fornto'

Wed aore noft atskn foovernment toreiqio tsrspnibltis
all weiiiiY1ii waniiit is afrsk.Wwnte
; iiii
ou;raelas o ht oeinsee il otb ol er.atls
thnfuldliee cs ncuig rfi.W wn or oceab
goeneta l lvl odces tecs-eei rtofrevrn

metlcnros ewntsm elstctxrguain ndmdrie
dercaio ue ta r kydt a nltinrt o o6.een
ormr yar ni teesaytigteste nutr os'
need more of,,,,,;Pr, it Is government regulation.s,;

O nere where we hpave further comment is them atter of environ-
iiiiii0 = i l;;iiHH" ""i"iiiiii iiiii iiiiii iiii ; l ~ _,,, ,,

meulation. The American steel industry's en mental pro-
tecionexpnditures totalled $940, million for 1975 and 1976. Those
outlys aecurrently accounting for about 30 percent of our capital
spedin an the American Iron and Steel IUnstitute projects that this
30 per cn ate will continue for the foreseeable future. In addition-"
tothi s exense annual operating and maintenance costs are currently
runingbeteen 15 and 18 percent of installed equipment costs, and will
A cotinu toincrease as energy becomes more costly.

The edrl Government's Council on Wage and Price Stability
recgnies:his very serious problem. A recent :report iatued by the
Counil oncudes that, "the manner in whicth envrionalental-.tandards
Aaresetandenforced provides a sitrong disinacent:Lvepgainst moderniza-
tat ime when moderniziation is diiffiyet is viewed as

an iporantelement in keeping the. (steel) indus trycopetitive, such
es are particularly unfobirtuinatei."i

Upgrading facilities in cities not meeting National Ambient Air
Cftliy Sanards, is particularly costly. The Clean Air Act dictates
tha th ai emissions from modern new replacement facilities or
faclitesfor expansion must be offset by equivalent emission
iii iiiii

redctins rom exisating operations. Often further emission
tedtictios arent availal at re('*asonble cost or Ina the case
S:fsh atnew locationils, tere are.. existling facilities
,,%,valalet generate scr~apn "ofso0et,` 8 5 ?
se ndustry mt have some relie in order to generate

seeded to modernie. Appropriat. corrective actions include
yto-rite off immediately the costs of Ipollut

dontroL11aclt dbs for both state and Fedeatal' icoea tax purposes
a*-well as th doption ofan eanvionmental regulatory poicty which
ppp 2aic 41ses etwenthe econoncanat e s virousental
needs of our eo r. Government mustt also face the fact that
-i~~d=t:1isnot. the only- source of air pollution and xealistically
facelunr-ctyair p411stion from street dust, small heating systems

Thiavs wPe have outlined are *of primary concern to us and theay
canonl beresolved by governmental action., The future of Bethlaehe
andman oter steel companies is tied to the manner in which the
govrnmnt andles these matters, and because of the siz~e and scope
'..ota teidsry, so is the future of many of the nation's cities.


iii~i i iiiiiiiii ii ii i siii iiii

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Illllllil l

and UbArs-CAfis

DearCng aRs-

facilities within the is central

employmentbut no need for significant faci
iiii1iiiiiiii~iii ~ i i iii~ii~ Hiiiiiii~iiiiiiiiiiH''i~iiiii

the unemployed in central cities, Boeing by policy and conscientious
pratie prtcipates in a broad spectrum of activities. In some
ase, e wrkdirectly with central city agencies in the sponsor--
shi oftranig programs for persons who become Boeing employees on
copleionofthe training., A current example is a Seattle
-OpportunitiesIndustrialization Center program:providing central
cityunemloyd with welding skills for which our Company has need.
Jus reentywe have collaborated with the King-Snohomish Manpower
Consrtiu ina proposal for major funding of a STIP (Skill Training
Imprvemet Prgram).directed need of ow icome, unemployed persons in the Greater Seattle area.
Another way in which we continually seek to draw on the workforce
resorcesof or .central cities is through maintaining recruiting
liaion wth ources of employment referrals within those cities.
lde Opportunities Industrialization Centers, local
Urbaoffies, and community colleges and vocational/technical.

schoos loatedwithin the urban centers. One good -indicator of our
degre ofsuccss in all of these efforts is that thus far this 'year
minoity irin for our Greater Seattle-harea oerations has been at'
the14 ercntlevel. That number compares wit R"an eight percent
minoity opultion in the Seattle Metropolitan-Statistical Area.
For easos wich I trust have by now been made clear, the nature
and sope f ou operations are prime determinants in the location
of poducionfacilities. Thus we have no background or expertise
to~ofer n yor question as to the influence of governmental
Y PQ1cis, othpositive and negative, upon such decisions.
We hpe tat yu will find this letter responsive and useful, and
i """"'"" .................... ;;iiii ........................ ;I;;. iiiiiiiiiiiiiii iiiii

thatyou call upon me if we can provide further information

thatwoul be seful in the work of the Subcommittee on the City.
,S in :cerely,"

Stanle M, Little, Jr'
ptVice President*-
d Idustrial and Public Relationsi
;iiiiiii ii::..iiii;i 'i

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mi m sioioo;r

iiiiiiiiiiiiii ii iiiiiiii i

Thg-Wrer ConporableionryS e
S ii ;ti --ir,,, M n A u

Chairman i

Subcommittee on the City Committee
on Banking, Finance. and Urban Affairs
604 House Office Building Annex I
Washington, D. C. 20515

Dear Congressman Reuss:

In response to the Subcommittee's quesin co er ng fotso
improve central city. unemployment throg h oaino e
corporate facilities we offer the followig

1. We currently- employ apprai tey420pol
in six operations which arelctdicnra

2. We have no plans to expand rcnrc hs
operations in the near futur.Teprnia
factor contributing to-thisdeionsou
desire to keep our plans sml nuht
optimize management -potenta n esne

3. We sponsor individual jobtringa iv ie
under the JOBS Program. Adtoal.w
support the National Allianc fBsies e
training programs in Chicao
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i i i i i i

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rii i~ ii iiiiiii ili iii i i ii i !
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ofneipeatosNn central airieiaisi. InIiiiiillinoiii
frexample., we have been concerned with the
extemnely high cost of Workmen's Compensation.
Aditional state sales tax regulations place a
fiepertcent burden on capital goods brought in
tequip any new operation which many other
.iiiii iiiii i i ..............~ iiiiii,8"1'; ii iiiiii ii iii ii

s ats do not impose.
;I;""" ilPPl piii:' ;;;; s: ; @@.i'iiilill. ''8i"

We feel that large cities should also aggres-
svly market their location though such
inetive measures as a bonding authority,
ililiiiiiii ;liii;;l iiii """"11"i'l;.";;iil/i.iiii :,;;;;i;:' I ;ii ii;" iii

pr erty tax deferral programs and realistic

and necssary grants of safety for employees
adproperty. Perhaps feder-al ass ta nch e in
d oping such programs might be helpful.
i~i~i~i~iiiii;i;iii ii;;li;;ii;iiii i iiii iiii;iiii iiii
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SA' iiiIere
es Berel
@ ~ ~ ~ ~ ~ ~ ~ .iiiiiiiiiiiiiii

iii ii s~i .iI IiRiiO R~ll l:..i

iNigc"l l i iiiiii



The Honorable Henry S. Reuss
Subcommittee on the City
Committee oniiiiiiiBankingiiiinance andUrba fai

604 House Office Bbilding Annex 1
Washington, D. C. 20515

Dear Sir:
This is in answeiiiiiiiiii to your t o tber 2
iiiiiii ;I;, ,;;;;;i;'';;;;;;;~;

Richard Gelb, in which you requested certaininfor
covering our operations in central cities.
1ii Major operations located within thectl s
f metropolitan areas of over ,000

and the number Of individuals employea:

Name LocationEmlye

The Drackett Co. Cincinnati, OhioSo
Pelton & Crane Co. Charlotte, N.C. 45
iiiiiii;;;;;;;;;;;;;;;;;; ,ii; .i, i iii:;; i ;r~ll~sllll ~118 ; i ~~iii; i

Mead Johnson & Co. Evansville, Ind. 20

Westwood Pharm., Inc.- Buffalo, N. Y. 85
Clairol Stamford, Conn. 10
Bristol Laboratories- Syracuse, N.Y. 10
Bristol-Myers Co. New York, N. Y. 10
(Corporate Headquarters and Headquartr-o Dvsos

2. We have no plans for any major change nte ieo
these operations over the next fiveyer.Ithmi
1960's, when growth required us to exaieteqeto
of relocating our New York City CorpoaeHdqrts
iiiiiand Clairol's Stamford, Connecticut manufaturin fai iy

the decision was made in each case tomvtolre
quarters in New York and Stamford.Thmaoresni
each case for not moving to the suburswsordsz
to retain trained, loyal employees.

3. Our locations list employment opportuieswtFdra
and State Employment Offices, participt nporm
such as HIRE, cooperate with the NatinlUbnLau
........ = iiiiiiiisiiiiiliiiii;ii iliiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiliiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii ==i" iiiiiiiiii i===

;Clii;: ~~ii !ii iiiiiiiii li""""iiiii ;;i;iiiiiiii iiiiii;i;iiiiiiiii ~~ii !!! !i .. ..... ... ;;" ................

.iiiii in its Skills Bank Program and we were inviiiiiiiii leint

training of ex-offenders here in New Yr iy
iii .iii~ i ii iiiii

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Ai I

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~ ~~~i ; i: iiliii ili.iiii iiiii ii iiiii iiiii iiiiiiiiiii iiiiiiii
plcewhcshudbeither chage orii im
the cenral ciies. Hwever, e joinin theconcer
exprsse byiiiii many. iviiii thie failure ofi iniriiiityschoiio

who are. equippe to coptefc ively~i ini itiiiiyis
job market.,,,:,

;is~oThomas S. X
Vice Pres:R;Iisl ;;;s

December 1, 1977

TheHon. Henry S. Reuss
iSubcommittee on TheH ity

Committee on Banking, Fidnane and UrbnAfar
U.g&. House of Representatives
604 House Office Building Annex 1
Washington, D. C. 20515

Dear Congressman Reuss:

Thank you for your letter outlining the ts fyu omte
and plans as they relate to the central cte.1r brah a
asked that I-respond to you directly.

I have made the assumption that the term"etaciyrfrso
a core-city situation with a populationo
on this criterion-, approximately 15% of orttldmsi okoc
is employed in such central cities. An adtoa infcn
percentage of employment In sales, servicedistributioniresea
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii ii~ li,,i ;"''.; l;Ri l;;;;i iii;;;i

i ifaciities and factories are situated a c iiiiiitthsciei

the overall metropolitan areas.

Brunswick's total domestic employment Isstae n1aiiiso
iiii iall types in 36 states, Puerto Rico and iiiiiiiiiiiiiiiiiibia
iiiiii iiiiii ii iii ii iiiiiiiiis;

iiiiiiiiiiThese facilities range from very smallouiia


Concurrent with the national recessionin17,wexrecda
iiiiiiiiiii iiiii;, I i~i,, .in~~; iP~iiiiiiiil i" i"

isignificant employment decline in mostiiiiiuibusiessis.Itia

not until the second quarter of this yearta ewr bet
,,,,,,,, ,,,,,, ,i ;;; ,ii -iiiii ;iiisiii s iii! @ii i

restore employment to the pre-recession e i so
employment was accomplished through a

recall of laid off employees and throug
"CETA" "INROADS" and the "Sheltered Wikipiiiiii Ths

massive program efforts, such as our Job op etroeain
or our Manpower Act programs of previousyas h vlm i o
require them.

Any future increase in employment in any of our f iiib
a function of their market growth and thivabltwtinht
:ili :i :" ;;;il:~;,iiiii ii ;;iiii t

market. Market growth, of course, willl

national economy. The viability of our oeain ihnta cnm
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiilii
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iiiiiiiiiiiliiliiiiiliiiiiiii i i ii ii i i i i
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iiiiiiiiiiiiiiiiililiiiiiiiliuii iiiiiiiiiiiiliii

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will dependtioilarge, extenton our ability to invest in

maintain theeirowbempetioiee abilityo
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In tiweh vgae ..c.o...s.... a nube
derrr~ ofgv;;gk 4 aa ioni~s H oweveami~~i

Increasingly xao *pcstt-governmenhament atrgeonilevens

isderal, state andiloca teiuloeiiii hptaciiiii es
asbleComitiiiek to siness wtithdup i ion te iaiii e
iiriiiiii rsi s ii B n~iiii~ii iiii
"iixiiiiiiiii iiiiiiiiiiiiiiiiii ;I~ "';;i
1. cofiiofliovernmet.Fii n anialsupport ofsines i
offb himselapitale which couldil masnds shavdiav

b-eep a usd lo-develop 1ne 0 throuhs 1975deniz
efic y Ts iuthe ro treasedcbtithe and/o

2.,T~e ostofgovernment cot hteri earegulatory etanl
proprurlesoinesbtto legulation. nowrt

bureoing governmen hassmedalntugetonihegondue.I
costly it. Te av i

Exitinfeerhalstatebsies andth loal rgltons hobs.
become ablurto businestatuthr bdneliction Corinua
som csescndfescaltingrqurmnts The socle bsautorym
todayfindcimslf faeduwith multployen mastrs havimng

reglaions alne, perhaps 1970thrugsrlh 1975.
Thecostlof aeroduct ths inreasoe and theaddedoe

comet fro business' botom linernif this ispnovits
he~v wlpabiit. Thhs altsrntive isfilur tofli the

extnson andescalationd thf so-caledto "statutryt
beneits (SoialSecuity Unmplomen andWormen
Compensaton and, prhaps, copulsory halth care
hae atraly rde tereoucs ndterfoe

comettie biity Tisha tkenit tllinth
cretin f ewjos ndth prtetin f uren oes

What types or policies would encourage business to locate
or remain in metroipolitan areas? Certainly those which
encourage require fiscal solvency. Those which capitalie
iiiiiiiiiii iiiii"

on the strengths such areas have had historically: public
transportation, education, good services, rellablvetal1se
iiiienergy delive ystems. ast winter or e e, o

plants were curtailed b tihe natural gas shortae, resultig
in layoffs of employees. and a competitive disadvantage for
the plant. providing those jobs.. The work lost-can neve be
But perhaps more import-ant, I think,, is the need TFor govermn
at 41 levels and business to begin to recognize a eamom
objective: the economic health and wellr being of the natin.
We seem to have lost t his enmmonalfty of- interest, and hae
developed an -advershary relations~hip over the- years. This sI
sharp contrast- to the common objectives of -our foreign comptto
and their governments.
I hope. these observastios hae bgeen thelpful to the Commtte
as it considers this most mple problem.


J. F. Mae off
Vice President
iCorporate Affairs
!)i;iii;iii i~i~i~i~i~iii iiii i'=) ;iii iiiiii 'Hii i )@ii
iiiiiiiiiiiiiiiiiiiii ,,:iiiiiiiiiiiiiiiiiiiiiii; ;;
ii ii iiii I.. ... ... .................i~i;;01iiii
.iiiiii~iiiiiiiiiiiii;; .; ,il.iliiiiipliiir ;;;;
iiiiiiiii;" ;ssriiiiiiii r~~i~iiiii~i'iiiii;;ii"" i;;; rr;
iiii iiiiiiiii' '' 1 ;I ii;;iiiiiiis
iiiiiiiiiiii; ==!iiiii ,,;iiiiiii iii;i;;;;ii;
ii'iiiiiiiiiiiii'i'i i" 'iiiiiiiiiii iii iiiiiiAliiiiiiii iiiiiiii ii ,, :;;; il, iill ii; ,,,,,,,, ............... = i

iiiiiiii11I~lllli il l ;; iii; iiiiiii iiiiiii ii.ii iiiii~ i i iiiii i
'""11111iiiii111" iii iiiiii iiiiii ;1

a ~~ iiiii "i i, iiii ii
."iil;;i;;ili; n

@ N .iiiiiii iiii iiiiiiNiliiiiiiiN .....iill
iiiii ;o~iii sii ini isa l ;;iiii i s ii;;iiiiiiiiiiii i iiiiii i iiiii i i;i

urrouhs Copor ation


,.onoabe Hnr S.Ress, Chairman
U. S Houe ofReprsetatives
Subcommittee/ 6nteCt ommiittee
on Banking, Finance and Urban Affiiirs
604Houe Ofic Buldig, Annex I

In rply o te Sucomittee' letter of October 27, weare pleased to furnish
information% cocrnn Buro s Corporatio operations in centra cities. In the
absnceofpecficguiance, we have elected to provide data about our oerations
in the top 40 metropolitan areas as listed in the Statistical Abstract of th for

I. Opratios an employment in central UI. S. cities:

Burroghs eploys 11, 808 people in its marketing, engineering and
manuactuing and headquarters operations in the 40 largest metro-
poltanares.This constitute$ 38%/ of our U. S. work force and Z3%/
of or toal wrk force worldwide.

NewYor, Nw York adjacent New Jersey metro area
Marketin offices employing 665 people
Chicago, Illinoisiiiiii'!:'' ,,

Marktingoffic~es employing 608 people

s Long Beach, California
Marketin offices employing 391 people
Engieerig and manufacturing facility employing 263 people

PhiadlphaPennsylvania adjacent New Jersey metro area
Marktingoffices employing 420 people

World Headquarters and grou headquparters- oerain mlyn
2, ii piiiiiieopiiilel

Boston Lowell Brockton Lawrence -~ Havehll.Msacuet
Marketing offices employing'373 people

San Francisco Oakland, California
Marketing offices employing 354 people

Washington, D. C. adjacent Maryland and Virginiamtoae
Marketing officies employing 367 people

Nassau Suffolk, New York
Marketing offices, employing 153 people

Dallas Fort Worth, Texas
Mdarketing offices empploying 341 people .
Engineering and mnanufacturing facility employig -pol
St. Louis, Missiiiiiii adjacent llinois metro re

Marketing offices employing '251 people

Pittsburgh, Pennsylvania
Marketing offices employing 150 people

Houston, Texas
Marketing offices employing 138 people

Baltimore, Maryland
Marketing offices employing 103 people

Newark, New Jersey
Marketing offices employing 299 people

Minneapolis St. Paul, Minnesota adjacent Wiscosnmtoae
Marketing offices employing 330 people

Cleveland, Ohio
Marketing offices employing 173 people

Atlanta, Georgia
Marketing offices employing 267 people
""'! iiiii ii ii!
li iiii ii~i! ii iiii i iiii ii ii!:i"; iiii i"""

i iiiiiiiiiiiiiiiiiiiiiiriiiiiiiiiiiiqiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiH H HiiiiiiiHii iNHH HH N ............
iiii,,; iiii,,, iiiii ~~, ;; ii ;i
ii ;;iliiiiiii ;i

i iiii _,,,,,,,,,, ,

@'; i'llllllls~ls~lil;; ,,~;~ i;i;;s;;; "'""'; """

'iiii iir',i

"i """""""" '" "


Maretngoffce eploin 63 people
Sanii~~i Dieiiiiialiiornia

Maretig ofics eploying 89 people

Miami KetulorIdidamtrae
Makeinaofiesemloing 97aceolyeplyn 4epe
Mwk Flocida

Maretig ofics eploying 128 people

Seattle-pEoertt, Washingto

Maretig ofics eploying 115 people
iii iiiiii l .iiii"ii ii ii i iiii;;ii iiirsrr rrr::iri iiiiiri ii i i:i;;i
iiiiiiiiiiiiiiiii l i ii~ i rr~ri;,i ; ; iiiiii..ii i ii iiillii ii Iji;;i liiiiiili;;;;lii Ili~~l~::ii; Ili.. liiiiiiiiiii..
iiiiiiiiiiiiii ii i i;iiiiiiiiiiiiiiiiii

D n e i Oiii C aliiiii i-iii iiiiiiii

Marktin ofice' eploying 79 people

-Maretig ofics eploying 68 people

Marktingoffies eploying 141 people

Markeing ffics emloying 115 people
iii"";;"';iii r ;lilio, .;1 ii ii iiiiiiii iii iiiiii iii iii Iii~ i
""ii ""';sii iiiiiiiiiiiiiiiiii

Rvse-nini -Oti California
i ii iii iiii@ "" :"": i";; :'i@ iii @ @; I ; i" :iiiiiii~i ;;"i
iiiii~i~iiii. iii; iii iii i iiiiiiiii @ ii
;;;;;;;;; ,; ;:ii ~ ; iiiiiir;ii iiiiiii ii

Marketing offices employing 58 P4opl
San Jose. Californial
iiii~ ~ii iii~iiii i iiiil iiiiiiiii

iiiiii ii iiiiiiiiiiiiiiiiiiii!:ll
i ~ ~ ~ ~ I iii! iiiii ii ii@i @ii
;;;ii; iiiiiii::;iiiiiii iiirr, nn i ii~i~ iiiiii
i iiiiiiiiiililiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
i @ iiiiiiiiiiiiiiiiiiiiiiiiiii:is:iiiiiiiiiiiiiiii

iiiiiii :;@ !@ iiii i iiii

riiiiiiiiiiiiiii~~~ ;; -i~;iiiiii iii rB iiiiiiiiiiiiiii
Indianapolis. Indiana
Markeing-off~es eployng, 7 5 eopl

Ne Orleanso, Louisian
Marketing offices emiploying 6l0 people
Poretlan, Oego Wasing
Marketing offices emdploying 67 pople
iii isisls;:iiii~iii ;iii ................... ,-= i' '='='=

;iI' eininegiiii latidiiiiiiiiiiiiiiii ananiiiii it i
iiiiii;iiiii iiii i"""' -"' ;i;ili;,,,,;;;;;s;;;;;;;, .;;;;;;li;;; liiiliiii ii ; il

Makein oficseolyig10leol

Hatords-llew Britacin Briscetol Cnnecticut
S- --Marketing employing 6Ill5 people. 'i

SanrAentono, Tealsori
Marketing offices employing 110 people

Rohe ster, New Ytoropkl
ii~ ii ii ii iii i ii i iiiiiiii i ii ii ii iiiii i i -ii,, il i i i ,,ii ....................... i

buines epasiMarkethes a........... Fore emp oyn 7
dThreeningineetring and moatnuofacturin faiiismlyn

Loutisvil, Kentuck adj atrcetr Idaar metro are

III BuMaroughetin officiaes eimploy s pe
Oiiii iiiiiiiii; iil ii;i ;;;lliil iilll;

Sr eoCir

iMiioienting f oc moplta e

Futurdeplphanos hr:NwJrey n
irMr.r Robert Berry, manage, non-exempt

ThejCompn plan s to OagCopentsalis an custoer spotofcsa

plns toa rexand or hcobentrac opertribuons wihnaciymretn ra

Vijs ow plattin Orane Couty, isoga mm be off ththedior or

working to make the program as successfulaposbe

..Mr. director of employitn forthration, is
iiiii iiiii i iiii i iiiiii
memberiofitheiGOIC advisory boar in Detroit. He alsoiservesionithe

e~eop ahighschol cooperative program which will train high school
Juios ndseiosto becomte computer field servicee es
Burroughs may subsidize this program on a pilot basis.

Mr. wenSnydr, anager, employment, Federal and Special Systems
area, is a member of the Board of Advisors (GOIC)
at Nrrisown.He s also active in the area's Merit Emplopyers Council.
Bothof hes oraniations are involved in employment efforts that
relteto heare'shard-core unemployed.

Burougs prtiiptes in EEO seminars and conducts these seminars
in te Pilaelpia rea. We also participate in career week programs
at~~~~ hihshol.T enoputer industry, however, is a high-technology
indutryand esstha 28% of our 1976 hires involved applicants with
onlyl qualifications. 18% of our hires in 1976 had
addtinaltehnialtraining, and 54% were hied for positions, requiring

IV. s yo wil not fro the information in parnt I, the major part of Burroughs
opertios i thsenetropolitan areas are marketing and headquarters
rathrtan manufacturing. Our engineering and manufacturing
c";rtios tnd ot o be located in these areas because land parcels of
ldom available. Equally iiiiiiimportant, when land is

avalabe, zoxng als for commercial operations, not for manufacturing.
Addiionlly ta stuctures for the areas mentioned are often not workable.

Avaia~lty f lnd oned for manufacturing, and tax structures that will
attattnewbusneses in these cities should be encouraged at the local
hp iiiiiion will be helpful to the Subcommittee.iii


Dan L 'er, Director
Corporat Communications
.,== =,,iiii ii iiiiii i ,,i l .. ......... .s i,:, r I ,ii i i i iii i iiiiiiiiiiiiiiiiiiiiiiiiiiii ii

Ix: '"i iiiiiiiiiiiiiiiiiii iiiiiii



November 28, 1977
The Honorable Henry S. Reuss, Chair

Subcommittee on the City .
Committee on Baking, Finance,, andrbnf

604 House Office Building, Annex I
Washington, DC 20515

Dear Congressman Reusse:

Your letter to Mr. John T. Dorrance. r ocrnn eta
cities and their unemployed has beenhaddtme In
response to your questions, we providetefloigifr
iiiiiii@" i;': 1111111' """"""""""""

1) Our-central city manufacturing faciiisae rsnl
ii locatedin Modesto and SacramentoCalif

Illinois; Omaha, Nebraska, and Cam
our General Office is located in Cme.Teeae85
persons employed at these locatios, u fattlUS
complement of 28,005.
i iiiiii~iRiiiiiiii iiiiiiiii ;i "' """" """ ,,,,iiii siiiiiiiiiiiiiii
,iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iii iiii iiii ; lll ii l iiiii iiiii;;:
;iiiiiiiiiiiiiiiiiiiiiiiiiiiiii;ii~iii iiiiiiiiiiii

2) We have no present plians to discontneo ocnrc n
of these operations.' We have made aycmitet hc
support the central cities. Improvmnsae o en
made at the Company's Camden,, NewJesypatwhra
iiiiiii major new warehousing facility is
iiiand modernization of packaging, pl a oteiiiiiliilih
10111"", 111i;siiii~iiiiiii ii i | iiiii ii N |

distribution-related operations arshuef co
@tion in 1978. The consuer acceptac forpo

based on their value, comprising mn
i quality and price, make overall co

iiiii critical factor influencing the location1ofpro

ii @ @ iii iiiiiiiiiiio ;; i

3) Where the programs are available,Campbells
National Alliance for Business projeti h iigo
the disadvantaged and veterans. Capelspot-h
Opportunities Industrialization Cenes(1) nCme,
Philadelphia, and Omaha, Nebraska. sa qa potnt
employer, we work with the nation

vertise for employees in minoritynesar.
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii ~ ii i iii = =============== === ==========

@ ;; iiiii @ iiiiii

iiiiiiiiiiiiiiiiiiiiii,,ioiiiiiii;iiiiii Riiiiiiiiiiiii ii ~ i

iii iiiiiiiiiii i, l;oooalnioii s~i-

BIiiiiiiiiiiiiiii il

~ ~ ~ ~i ......... 'Iiiiliiiiii ";iis;;i iiiiiiiiiiiiiii

iiiiiiiiiiiii i i i ..........................................................................................................


iiiiiiiiiiiiiiiiiiiiiiiii Iiiiiiiiiiiii1 I ii iiiiiiiH W =ii ii iiii iiiiiiiiiiiiiiiiiiiiiiiiiiiii iii~iii i i!.;; Hiiiil


,iiiiiiiii=;=Hi;R iiiisiiiiiiisii

iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiii
~i~ii~ .;;;;;i;; ~s

iiH """ ii .,i ll; "'"""; iiiiiii ;IHH II ;;i"II;iiiiiH iii liij iHH ii;
ii ii i"; iiii;;;ii;i~,:;; l;; iiiiii ;;i al

;iii. iir lii;;;,ii ,a;;; .;;; iis; l";. ii = "iii= '""".";;;"

;,,/IIliB ~,l ii ==iiiil; ;;iiiiiiiiiiiiiiiiiiiiiii~i iiiiiiiiiiiiiiii o~ '1

iiiiiiiiiiiii ==iiiiiiiiiiiiiiiiiiiiiiii iiiiiiiso n i; ; iiiiiiiiiiiiiiiiiiiiiiiiiiiiii
i;;;;;;;;,iiiiii;;;ii;;,i~iiiii, ;iiiiiiiiliiiiiiiiiiiiiiiiiiiiiiiiiiii

Ye ikv epci iv inplat bsicedcaton rogamsfo
116Mloye s soastoimptvi-_the ffecivenss o an
retentoli rte fo our prsonnl. Inadditin., Cmpbel
awards college scholarshis to deserving high schoo
students selected from among children of compan
employee. Each sholarshi is valud up to 1500 pe
schol yer upto amaxium f $6000 or afullfou
year program."

favor rural areas include zoning, noise limitations.,

the Company has receivednational recognition fo
success inthis area However, n our opiion, rura

Very truly yours, .;~s

,,,si ssiii;, foriiii"" ;iiiii ."iliii~~~i~~. a. ~ i

113-31S 0 78 5 :,is;;,,I;~R;;;i i ;';; ;;"""


Poorim. Miness 61629

November 30, 1977

Hon. Henry S. Reuss
U.S. House of Representatives
604 House Office Building
Washington, D.C. 20515
;;"i;l ":' iiiiiiiiiiiiij;; iiii;,;iiilXiiii iiiiiiiiii li

l Congresisuan

We have your October 2 letter asking for linfrainaotCterpillar
,, ii iiiiii,,; ;iiiiiiiiiiiiiiiiiiii,; i;i~iiiiii ,ii i~iiiiiiiiii iiiii~ i HHHHHii;il ii;;;; I; iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiii;iiii~iiiii

facilities in relation to central cities i the United SI

Caterpillar Tractor Co.
Caterpillar is a multinational corporation, headquyarteredr n eoia
Illinois. The comay manufactures and markets earthmovig -cntuyi
and materials handling equipment ... as well as diesel a:dntrlga
iiii iiiiiiiii;; i iiiii~iiiiii i~ iii i~ i i ii ii iiiiiiii ii iiiiii
;ii,,~iiii,~i .il i,iiiiiiii iiiiiii ii iiiiiiiiiiii iiii .,iiii~iiii i u"; iiii" ps:;sss; ; ii

Caterpilla aintains 30 oic andfaiities in 19 tat

worldwide employment stands at 78,000 today. Of these. prxmtl
60,000 are employed in the United States. S ales for 1976vr $50
billion. Taxes paid (total U.S.) were $396.7 million in176 roi
was $383.2 million. -

Domestic Offices and Facilities
Caterpillar has the good fortune to have offices eand faciiisi
.; iiiiiiii ,, ; iiiiiiii i ii l iiiiii, iii, . .... ..;;. i;; ii = = ..... iiiii===== ii:,,i ,,,,,,==ii= iiiii i = = ===== iiiiiiiiiiiiiii === . ........ = = = ii iii
il~iiiiiiii iiiiiii iiiii, iii;;u;;;; ,ii;;l;,,i~iiiiiiiiiiiii ,iiii iiiiiii,; lsiii = =ii; ia; iiii.... = ii
iiiiiiiiiiiiiii iiiil iiiiii; ;;iS; l iiiiiii ~iii;;; ........ ...iiii i ! ..... ... 111;ii1i1 ........... 11"' i ..:::::::::::::: ;.................... ...

iifine communities. Below is a list o our U.S. operat

employment figures and our judgement as to whether each i na"eta
city" location.
.Oii'iii Jiiii i
ii;;,iiiiii ,ii;; iiiiii;; o~ i;rrr ;s;;,i;, ;;,,i;li iiiii;i;;;~ ,iis, ii
.rii;iiiiiiiiiiiis; iiiii iisi ;ri;;i;;;;;liiiiiiiii iN;;Isiiii;;l;:is:,r
iiiisiiiii ";; '"'"; "i;;' :;iiiiiiii iiiiii iiiiiiiiiiiiiiiiiiiiiiii ii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiii iiiiiiiiiiiiiiiiiiiiiiiio..................

iliii ::rr~;; ;;;;;;i~i~ii; i;s;;" '"iiilii~i;
ii iiiiii i:iii i;iii; i i

ri iii iiiiiiiiiiiiiiiiiiiiiiiiiii iiiii iiiii
iI~Ri.;;i iii iiiiiiiiiiiiiiiiiii
i iiii iii ii i ii iiiiiiiiii.
iiis i iiiiiiii i i

.;iiii sii riii~8iii;iiiiiiiii iii@ iiiii
ii ~i i:iiiiiiiiiiiiiiiiiilp iiiiii iii ..............
== == = ==iiiiiiiiiiiiiiiiii =====ii.ii ...
.,oiiii ii ii;;; ; ,iii-iii~ ii i~iiisiiiiiiiiii i

iiiiiiiiiiiiii iiiiiiiiiiiiiii ,i .................
i;,,ll;ii ;;';;uiii ;illllillli

i i ii ,,;;;i iiiiiiiiii:i ii;;:i;,;,;i;' ,,,;ll;::,ii

ii iiiii;== ,, .... ... .. = ==ii; i,,pp


Pera llinois 2,5300 'Yes
"iii"' = HHHHH""H"H"HH"H 'HHHHHHHHHiiiillliiiHHHHHHHiii;" : i;; .:i l, ii ,, .i,,;;;;; li" i

Aliiiiiiiiiinois 6,000 No iiiiii

Betndr, Iowa 200 No
Da3as rgon 500 No
iiiiirii suiii iiiiiii ii;; iiiiiii ii.i iii

a 1,900 Yiiiiiiiieiiiiiii i

.-eatr Lllinois 5,100 Yes
'"""iiii iiill liiii l,'ii'l""' @ iil" iiiliiiiiiiiiiiiii !

Es Peoiiiiiia, Illiioii 17,000 Yesiii

Joit llinois 59,800 Yes
Maleon tIliois& 3, 200 No
Meto, ho 2,700 No
Milwaukee,, Wisconsin 850 Yes
Mosvi le Iiinis6200oiiii No i iii:;ii

Peri, linoi 100 Yes
ii i ii i i iiiii i""iiiiiiii;;,iiiiiiiiiiiiiiiii

SanLea o, Cal ia 2,000 Yes
si iiiiiiiiii;;;:;ii;i;l I,' ;;iii iiiY e s

MotoIliois 23700 No
DevrClorado 300 Yes
... .. .... ..... ......... ........................... ; i i iilililiii;;;

Mephs Tanesso-e 350 Yes
YokPnsylvania 500 Yes
tter does not define "iiientral city," we have consid ered a

faciityto e in a central city location if it is within the crporate
bounarie ofa city which usually is dominant in the larger community.

LocaionandExpansion Plans
icIt isourpolicynot to make public forecasts of future dimensions of
ourbui sbecase It is a very inexact science, influenced by many

factrs ey6 our ton'trol. We don' t want to mislead people, or promise
moretha wecan deliveir. Usually plans are announced only after being
fulyevloed and first announced to the community involved.

Boveer, e epect the groving need for energy, food, minerals, transportation
andnewcontrction will continue to offer increasing opportunities for
.. i!!rii iii i'ii i ,, I ~iiiiiiiiii iii

"' 'i"" iii!!iiiiiiiiiiiii i iiiiiiiiiiiiiiiiiiii iiiiiiiiiiil,
ii"': .. .. ................................. .... ....... .....

ii i i i i . . . . .. . . . . ... .. . . . . . ""ii i i i i i i i i i ii .... . . ...... .. ... .............................................. .............................................................................................

Iniiiiiiiiiiiiiiiitieiiiipany is carrying out a five-year ei ansioii Progriiil

;""""""";; ;iilii;;"' i .si,,i~is~iiiiisi i iiiiiiiiiiiiiiiiii;iiii '"iiiiii""";;" iiiiii
ir,rrr is ; i;i ii iiii iiiiiiii;;iiiiiiiiiiiiiiii llslB;;i~siiiiiiii iiiii l iiiiis~i i iii iiiiiiiiiiiiiii iii iiiiiiiiiiiiii i
iiiiiiiiiii;R;; ;iiiii iiiiiii ii ;;;ii;; iiiiiiiiii iiiiiii ii ii i iii i i iiiii ;H N
tat illaddnini e milio squtar fee ouiiiiiii iiisii end

of 1978 ... .existig
As we lookbynd ours currenta constuctionporm eseeeea ra

acre of h lndatthe eas edge ofLafayetten Inina h uuest
oamanufacturing p ant. awafciit

Man fctrsaffet ter declio thg to locte orepndaetepl
faciity.iiAmong theia moast importan cosdrain trtesalw
iiii iiiiiii
ii iiiiiiiiiiii liii:iiiiiiii si ; ;;""';;.;i."..""
.1. The onatur ao d our compan Casterpillar has

are moeathe szdcte(banlrgMidwestern
2. The nature of oeavr manufturi process.HCaterpillar

maciituing and parts facilities
dependentxcellhey fucessh part anwell-nt~ n
anoeiid r alaiy. Thisiiiii facitesetilimn
fcases tatd pslants obeinthe samegogahcaute:o

are an froe Midest kaiiy. nl
degrees an knd o sils
; ii"';; iiili~"iiisiiiiliiiii iii~iiiiiiii~ iiiiiiiiiiiiiiiiiiliiiiiiiiiiiiiiiiiiiliiiii

=== iii

3. Te nature ofctsabvey inutEX Hseavy mauctrn
facito loand pats operations
-requirexcelenthe Madcess to ot

han laaii srvice. Suc raiiilitiesnedlag
iiiiiiiiiiiiiii= ,,;;iiiiiii;;; iliiiiii,,ii

ofand anor usuallyporparaoe aroundteclc.Moevr
there invlv aconstat moveen ofc pepeac mtril

togndf romn l a the ..............a.l y ,heavy........y
iiiiiiiiiiiiiiiiiiiii i iiii IIi ........ .... .... ::;; i ................... ..

4.. ~de and kis hof cskils.
tends toldorateits operatis q inmdi

r tesmooth flow ouf bits th at
4. Th atr o os omuite. nadiio o h
.aov onierton, tequliyofcmmntysrvc
isesnta oou bltyt ttat&drti

sikilledO epoes L iiiiigverenth se aiiiiiiicesa and;i@ OrI
'""""""""""'"" i'r i"ll i""li ,,,n::; ii;;i~iO ;;ii ii iii
........... '""""" """"....

scoosand edicalfailiie andarde al gexaiedou fogram

..a... andavail bilit
iii iiiii i iiiiiiiiiiiiiiiiii
Itisourmpolicyto hirelocal lyto theextentn eededskillsare

available Ourohirin pactilres aeframedons i goiiriiiiof
iiiiiiiiiiiii, ~ ,; ;; ;, ;; ;;;, ;;i

i; i iiiiii iiiiiiii iiiii iiiiiiiiiiiiiiiiiiiiii
=.. iiiiiiiiiiiiiii==i.=iiiii=. = iiiiiiiiiiiiii. ="i

fie leceted eyvgrosad signifint imat
atoprg am to r osdrtosaraypaindAoe
Catepilar~cnduts oa wielange, gof taining program potaon helpmpoyes
lean ad Iproe skill. Wed coniductk co rtivequtrainidpograms-
v~t anumerof nieorsities, and oprovide agesoneru progra gofen
finncilasisanc totsr employees pusing job-real ted oleeorss
Such tainingassis anc hads subst acntia to the sucessca oftour
American thsCmeptee c

Due to theantu a ereeatrila' opteraotionsed govrnmethald polciesso
do~~~ nogouly vly eernminn g or al evens maoer roent in ou adcisions
concf can blocnea li t a ansinc. Oershadoing o the impublt

of~~ ~ governmenta actonarerbsieration alreadyomentioned aofvte:
geographicp mnity. of plan godaccs htoe tr anpro t servic
adqut wr frc, valaiit f dqute eaoaby

pricedland thefowe aecan offer feacgetionshveote forngovernment
effots t indc idstreygto locatre intherp"centa. ct.
M.-and sharesethe subcomm itee s f conerndforatheio cotisnudv: tliy

In alrgers nse, bthee prospeity offichase and allsAmesicancomnte
rest, ta sbstnta degre u on utuhl cosntianud growthratnd sucsso
American Privaterenterprise. Aend that successis significantly lefdroed
by theaction of goernmen at al leves. Govrnment in fat, ha
shaped theAmerican usiness cimate sinc the founing of th Republic
Today, actions by goverment revetberate throughout the whole of the":;.:l;;

J U.S.businss comunit. Pubic oficial havea groing rsponsbilit
to b senitiv to he afectthei actons ave n th foudatin o
America's economic strength ... free
In that regard, we have a few recommendations:;;; ~,~

1. Rlatins btwee~pubic fficals nd bsinesme

shoud b basd uon mtua resectand oopratin -

noi~cnfrotatiu. Whn g~ernmnt~l eades coside

public interestI i best servedBi by realA dRi iiiiiiiii
on the other hand, needs to give fusllcnieaint
the pubi interli iiiiiiionuciiiliiingitsff
ii i ii iiiii iiiii ......;ii

i; ii
A good example of public-private pr
"Americology" project in Milwaukee. Thr, h meia
Can Co. and city? officials worked tgetert slv
ii solid waste disposalprobei Jobs wer
to sogundwastge management orvicevera bgase-o
spirit of cooperation.
2. Goernmsent policies and regulations shoudb lat
written and fairly stable. Frequent chagsinpbi
Inv hinder business' ability to operate fiinl n
effectively. This is especially tre n h aeao
taeas. Taxse paid by American busizes.arsutail
and must be planned for. Moreover, tax eeshv
iii real affect upon private enterprise'si abil
I' i

to compete, ... and -eve stay in buies

3. Capital formation and investment Isthe lielodo
industry Tax policy written to encourgcail
formation and reinvestment is one of ou etasrne
of a pro speous future.

4. Rana in hand with the subject of capitalfraiAge
productivity: the wise use of our wealt.I 90
total government (nonproductive) spendin cone o
17h percent of our GIRP. Today that figr n35pret
iiiiiiiiiiiiiiGovernment is not only spending more,
more of the work force. As late as 1970,oeoto
eight were on public payrolls. Today, ol ee er
later, that figure is one out of five.

Dollars spent by government are dollar
reinvestment by private enterprise. Thesbomte'
expressed concern is a real one: "Theplgtoou
central cities and their unemployed is
pressing of this nation's problems ...
these cities represents a huge investmen npbi
facilities, commerce, and housing." Asgvrmn
spending, especially deficit spending,grw.(h
federal budget has been balanced only fu ftels
23 years) there will simply be fewer dolasfo h
private sector to invest in our cities.
5. The marketplace (where consumers vote wihterdlas
is a phenomenon government should hesiatetinrfe
with. The marketplace, although imper
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6. Finlly, ovrment laws and regulations continually
rt etween copetn terests in society.
....e these conflicts ae iO '" rsle iiiin an effective
or omeime evn rational way. For example:s a
praisin o th Clean Air Act delays construction of
manynew aciities for a year or more while the atmosphere
of he reais sampled- even if two or three months
samping oul suffice. Another example:s federal EPA
provisions require that all industrial plants quantify
thei wase i terms of pounds of pollutants per unit
of tme o prduct ... even though industries like
Catepillr d not lend themselves to such waste measuremens
iiiiiiiiiiiii,,;;;:liiii .i;;u;,,;;iiiiii ;;;;;;;iiiiililI; i; '

an only effectively-easure its waste in
'""""""""'; """; """" .... ... .. ...................... ........................;;; i

etration of pollutants. Such 'impases
can be avoided when laws, while meeting their goals,
are amini ted to fit the practicalities of individual
sitution. Afinal example: the Congress is presently
consideringabill which would mandate the inclusion of
prenanybnefths" in all private employee medical
benf~t pogams. This would be the first time-a
govenmenal ody would decide what extra benefits a
coman mut ffer its employees. It would raise the
costof sch rograms to the point that some businesses
mightnot ble to establish or continue any medical
benefit pkatl Given the fact that only 40
percnt o Amrican workers enjoy the benefits of
'grup edi-alplans, Congressional action should enhance
,.......- the ability of business firms to offer

Thispporunij toparicipate in the subcommittee's study is welcomed
We hpe hatourthoght will be helpful in your efforts to revitaliz
theecoomi bae o Amrican cities.

Governmental Affairs
i| ii--

i ~ iiiJiiii

i ii8
Chiamnpiona Sp ark% Pl:-Coa

November 22, 197

U.S. House of Representatives
Subcommittee on the City, Committee on
Banking, Finance and Urban Affairs
604 House office Building Annex
Washington, D. C. 20515
Gentlemen of the Congress-
From my individual point of view, swl sCapbia
company, we share your concern over the plih forcnrlete n
their unemployed.
As I am sure you appreciate, we maeeeyefr ob e
sponsible corporate citizen and one such foti'reedowd
providing increased employment opportunitie.Capaispoal
unique in that its Corporate Headquar-ters, eerhadDvliwt
Automotive Technical Services and three ofislretaauatrn
plants are located, or depending on definionadcetothcnrl
part of Toledo. In addition, Champion hasoe o t ao aua r...
ing plantsin Detroit- and while it probablycudntbedsrbda
central city, it is closie- to it anddasepbye rmta area
While the possibilities you listinyuletrxsI
respectively suggest that these generalizainarpoblynov-
simplification of the possibilities and moeiprtn h
The answer to the specific questiosi orlte r e
forth below:

1. (A) Spark Plug Assembly Plant 2 -Tld
(B) Spark Plug Ceramic Plant 1 eri
(C) Paint Spray ManufacturingPat')-Tld
(D) Corporate World Headquartr
Champion-DeVilbies (2)-Tld
2. While no major expansions areplne-gina
growing economy, all locationsaeepce ogo
in terms of production and empomet

& Liiida
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3. A a jobtraining activity," Championahas establishae a
coopratve program with two inner-city vocational schools.
At te ed of the school year, these students are sometimes
hie no ..a salari.ed position, or coiiiiiuniiiseled into further-;

ingthireducation on a career which they have identified
as ag during their co-op program term. Recruitment
is cnduted through inner-city agencies such as
"Concen:ated Employment Programs," Guadalupeen::,::

JeffrsonCenter," the N.A.A.C.P. and the Spanish Infor-
:==H::== :- : ................................. ........ ilii::::::i:
iii, iii;,,, iii =@iiiiiii,


4. n eampe of legislation that is well-intended but wahic
can be counterproductive isthe recently enacted Civil
in...mpion's Detroit plant. We havea policy requiringi

an inividal to pass a physical eamaination for both the
4- Cmpay'sand prospective employee's protection which may.
be dterined to be discriminatory by the Michigan Civil
Rimmission undethis new act.
itmust be recognized that a decisio, n to locate a
":"I ;;iisii ii|

to:.adeaftr cnsierig many factors, including customer service, service
!!biei securityiand willingness of all employees and customers to ome

I blive ouwould agree that within the limits of the above,
iiiiii~ iiii' i iiiiiiiii @iii i

lked toward creating jobs and, in fact, its major
i iiin the eiiral city.i

11 rut hi lteter will convey a message of action and concern.

Yours very truly,

............ @ @ @ ................. iiiiii
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iii,, i ii!is iiiis;:;,;l; iI;;; iiiiiiii

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anufacturersii eiii aLre more acc
sii;; iii ii;;; iii;ii ;;:i i iii si ii i|
io opn.Chiaonseqdgenty & h IrnCmayb0J-ebue
locateele 25.18 an 2530t5o6siin
cabl countryOk.Boo
We~~tlphn 312 h&54 7000y400 mpo

oSubcommithese onte City Comm bitte
iiii: iii ;;;;" ;;

aon Boanking Finane andUrankfirsso
are Hofue heafy iRepsndtiava
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.. ...................................... . .. ... iiiiiiiiiiiiiiiiiii iiiiiiiiii

604 House Ofnfiber Buisldng Anniexs

HoGentementhes :pcl poy
,;,,,, i,,, ,,;iiiiii;

Tipsons is nd respons t o yourr o
CInnes-igns fnabpioytes, andblenstrcspaemtlsrcue
andrlated soghys700mpeoplthug our goenetssiie sa
Thasulocaturers weare morbised acuaeyseciedaoontut
becans compa easy the bulktof ouor employeesere

loated athe is vargiety of a sh ftn cosrcinststruhu
otrheadquntry. sof e

OWe doesaerchugaclty 400employee woknaboiedlctin
Mot ofatheield areinoseve fabricain plnssoto hc
are locatedng theility kirts aofthe rctis.Thspat

Wensideratnume oas sales offiityes i eta iylctos
person hand ar coosd d to be of an
ine-ct ueplyen rolms urcrprtehadurtr
employs roughly 700 people and is located in a suburban area.ii

ouhaduates office.

conidraio ws hefailty's adaptability to our purposesi~~s11,0
an watwecosierd obeanatratie rie


obviously, we are not l"h a god position to respond to
the specific questions donthined in your letter. At
present, all of our manufacturing facilities are under-
4utilized and there are a substantial number of employees
on layoff. Thus, our present efforts are aimed at
securing sufficient.... business to be able to recall those
iii,,;;;,, iiiil ;;;;,;; ;;i;

employees. This is proving to be a difficult task.
obviously, we are not planning for expansion under
these circumstances.1
Weii suspect that unemployment central ties is part

of a larger problem. That larger problem is a very
sluggish economy, resulting in a slowing in invstm ent
in plant and equipment on the part ofi U.S. corporations,
brought about in part by a lack of confidence in solutions
proposed by government. Wes respectfully submit that the
Congress might be well advised to work on the larger
problem first.
riiii;iiiii i

Yours very truly,

Chairman and President
.... iiiiii;i ii

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ii!' iiiiiiioiiii~ iiuiiiiiiiiiiiiiiiii i riiioioiiiiii i i iz;i;iiiil,i;;i!

E ersnttv Her S. Renss

Chairman, Subcommittee on the City
iiii;,,; ; ;iiiiililiiiiiiii iiiiiiii. .... l

Committee on Banking, Finance and Ur.ban Affa
i=ii ii ; iiiii ii = ... ..... ...... = i = i i i i .. .i i ii ............ .. ... ..

04 iiouse Office Building Annex
Washington, D.C. 20515

Dear Representative Reuss,

In response to your Subcommittee's requsofOtbr2,17,wae
submitting the following answers to the quesinyohaeped

1) Which of your corporation's operationsaratpentlcedicnrl
cities, and how mianny persoins do they employouofyritaii wor fre

In defining "central city" we've omittearicalmniplbudis
ii= i i iiiiii ii ; iiiii ii iiiiiii ii;i iiii;" = == ...... = = '

and tend to emphasize high density populatiocnetrinofprad
minorities that have access to local plants.

.In terms of the refined definition therae12pntinDrotw
plants in municipal enclaves within Detroit cnrlcttoi eryWr
a suburb of Detroit and one each in DearbornadCteLitwrail
accessible suburbs of Detroit. Also in theIniaplsrewehvto
plants located in the central city.
These plants employ nearly 67,000 of the1350Crse oprto
employees in the United States. See AttachmetI

22 What plans do you have to expand or contrc hs prtosi h
next five years? What major factors have inlecdtsepa?

Production requirements mandate a contiusreewoplnlmtaos
and capabilities. Central city plants areinlddnthsrvead
recently we have modernized one plant and areepnigaohri eta

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Many lder plans were built during the popularity of public trans-
porttio sysemsan large areas were not reserved for parking or future
fxpasion In smepcses intense residential development occurred around
theshemjor physical constraints are lack of adjacent land for
1"anio paringand storage. The proximity of residential land-use
works ~ ~ 1 agis xaddindustrial activity which might result in pedestrian
i i iiiiiii i;i i ii

stion plus some increased noise and dirt.

Some ~ ~ patarlocated in areas where the air quality does not meet
escibe stndads Expansion could be d&elayed or even-forbidden for this
son.Furhermrethe states in which our central city pleans are located
be nn-cmpeitie in water and soewerrates, workers compensation and
emplymet copenation rates in comparison with those of other cities and
IIailability of energy sources and fair rates to industril
g increasingly important to decisions on expansioniiiiiii

ntennce, orconraction.

Whatrecuitmnt r job-training activities does your corporation sponsor
tha ar spcifcaly aimed at the unemployed in central cities?
Overthelas to years, Chrysler Institute, the education arm of
sle,:hs eolvd what many believe is the finest preparatory programs
the rivte scto for the hard-to-employ and disadvantaged citizens.
Op rogamssere individuals referred by the various agencies with whom
Tysler nstitu eotracts and cooperates, such as cities and counties
FertheCompehesive Employment and Training Act (CETA)--School Systems,
*or iceniv Prgrmas, Vocational Rehabilitation Services for the handi-
iiii i ii i !iiiiii

111;;; 1

tiiieiii D rtment of Social Services.

Chryler nstiute currently not only provides trained, motivated
lperonnl fr Cryser Corporation hiring, but also prepares similar
ppliant forothr employment opportunities. These are a wide variety
-6f ervceswhih te Institute's Entry-Level Training Department delivers
thes vaiou agncies and the disadvantaged clients they serve. See

Whih eistngfederal, state or local policies, if any, discourage you
maitaiingorlocating operations in central cities? What new
ernmnta poicis would encourage you to maintain or locate operations

A lak ofunifrmity or consistency among levels of government, or among
iffeen gences>f a single governmental level, makes decisions on main-
or lcatng lants in central cities more difficult than we would wish
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In addition, there is a lack ofunderstandng by federal, st
government of the influencing tDSut ansrto

and lack of action in finding solutions or compromises to theepobes

The use of tax incentives such as Michigan P.A. 198 of 94whc
freezes present tax on renovated or expanded facilities inflece w
recent decisions by Chrysler Corporation.
Additional assistance in making available land adjacent t rsn
plant sites and long range financing with local-or state reveu od
would provide additional incentives. In many cases, howeverthsfe
suggested positive items by themselves'wedld not be sufficintitotA
correction of many of the inhibiting influences noted inth repy t
question two.

We hope we have been responsive to your inquiry. And wewshyu
committee success in dealing with the complex problems you haeudrae
to resolve. If we can be of any further assistance please donthstt
to call on us.
iiiii ii


ii i;

NN, 0N~

E. Harwood
iiVice Presid hent ivic iAffair

;r :"i:

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t 390
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1ym 1ei xi Detroit 2,900;
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....... 800
Jef rs n As e bly -Detroit 8,000
Vernor Detroit Detroit S'000

b e t o i o r e e ri t ) 5 4 0 0

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Hel oundry Detroit 2,600
Wymji las-Detroit 1,000
HovrTriig- Detroit ISO5
HatrmckAsemly -Hamtramck (Surrounded by Detroit) 10,000
,#iglan.Pa Hadquarters HIghland Park
(Srome by Detroit) 9,300
MomdRadEnie Detroit 3,350
MakveueSamping -: Detroit7 e 4,800
OuerD ve8 ie Stamping Detroit 31000
Plant Dearboarn(A few blocks from Detroit) 1,200
Warre arren (One mile beyond Detroit) 3,S00
Ware Tuk Wren a(One mile beyond Detroit) 7,600
CenterLi e Prs Depot Center Line
(To ilsbeyond Detroit) 1,000
mi i i iiFu dry Indianapolisi, iIND 1,400ii

Inlctrical Indianapolis, IND 3,600ii


Total U.S. 143,500
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Ooutreach and Recruitment ..... ...... ...

Chrysler Institute has devised creative ways to ensueta prpit
and equitable representation of various disadvantageet reicue
in program service delivery.
Assessment, Personal Career Plan and Referal ....

Chrysler Institute has demonst-rated the ability toutlz a e in 'd
interview process that helps direct disadvantaged c
r emedial training or service deli very.
Goal-Directed Group Counseling......

This program by the Institute includes value clariiain':a etn.
peer critique and evaluation.

Simulated Hands-On Training and Assessment....W."

Some say the Institute invented the term "vestibul"t rann ,wt ts
use of a simulated factory to teach and practice baic oksil.
Skilled Training......

Based on the needs of a community, the Institute ha dein ,dvlo d
and delivered specific training in such areas as:00 00 ig.........
iiMachinist, Custodial aintenanceiii Typing etiiiiiciiiiiic

Job Survey and Development ....
iappropriately align with e;ilmployers other than Chryslr ti I

in constant contact as a referral source with severltosn em oy s
in the Detroit metropolitan area and beyond.

Job Search Activity....

Chrysler Institute has piloted an innovative approi
disadvantaged clients themselves in the seeking ofemly nt asw l
as providing a theoretical and practical basis for ta o erh

Placement and Pollow-Up....

The Institute also provides all 'services necessary t suescesu
introduction to a new job,.and then continues thatcot tth ug
iiiiiii iii iisuccessful acclimation to full-time employee statu
| i,,, m

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iX~nal m m n ..
))))))))))))))))) )))))))))))))))) )) ))))))) ))) )))))))))))))))))))) )))))))) ))) ))))))))))))))))))))))))))))))))))) )))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))) o o o o o o o o o o o o i

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On.........iing ..
Through isinplabsolt,-alw-Up Advisors, Chrysler Institute assures
that~~ th is-ine Chrysler supervisor is supplemented in dealing
taged cients until all parties are assured that the
new mploeei1s a successful part of the Chrysler work force.

iiiiiiiiililiii ii iiiii ii @ @
itute also shares its hard-won expertise in all of the
abov aras ith agencies, schools and organizations who might also
andated to serve the same disadvantaged poplation

ii~ii~iii: ]ii i iiiiiiiiiii
It soul benoted that all of these services of Chrysler InstituteR
are elltesed in actual service. In fact, over the past ten years,
Chryler nsttute has served over 50,000 disadvantaged clients, and
e40,000 jbs in the private sector.

In aditonthere are recruitment activities as they relate to the
area ?fPeroikne Planning and. Administrtion:

NatinalAllance of Businessmen

Chrsle.Coportion isae members ofhis orgaization and participates
s its programs Chr executives es ed in a
ledesipcpacity on a full-time basis..

Thisorgniztion assists convicted nonviolent property offenders in an
effot t reuce recidivism and secure employment. Itfunct&ions in the
inne-cit, an one of Chrysler's executives is on the Board of Directors.

Mayo's Cmmitee on Human Resources .Develo~pment

Chryleihascooperated with this organization in attempting to provide
job fo iner-city residents.

Cour Prbaton Departments

The orpoatio cooperates with the Federal Probation Department and the
Rurt in attempting to place offenders.

In~~ adto othe aoe*gyq rysler Copopatqn coogyperateswih various
church6 grup.,copui a ction g3 pups, half-wa S~hoA, drug~abuse

i i~
.... ::::::::::::::::::::::::::::::::::::::: : ii """;iiiiiiiii i """"""" ii iiiiiiii iiiiiiiiiiii i ii'

rehabilitation centers, ii iiii

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CIAR ona"" .o"""""'" ...

&M Wns National Avemsp
PTW.rince Bo s 1 94
iii ''""'';" "' ;;;ii~iii
;"" lMilwaukee. Wi" 532DI

November 30, 1977

U. S. House of Respreisentatives
Subcommnittee on the City
Caommittee on Banking, Finance ahd Urban Affairs
of the Ninety-Fifth Congress
604 House Office Building, Annex I
Washington, D.C. 20451
Dear Commnittee Membrs:
Clark Oil1 Refining ,Corporation shares your concern for our.
central cities economnic stability and vitality. As a large
employer and an economically motivated enterprise, the condition I
of our central cities strongly affects our organization.

In your letter dated October 27, 1977, you were seeking
informiation on our 'organization' p resenst and future plans
in the central cities. The followingy responses address
those questions:

(1) QUESTION Which of our operations are located in
central cities and how many persons are employed?

,. ANSWER Clairk Oil's Market ing operations are located
in the following largea population centers:

Milwaukee, WI
St. Paul;, MN0
Minneapolis, MN

Kansasg City, KS
Chicago, IL
Indianapolis, IN
Cincinnati, OH
Detroit, MI-
Dearborn, MI
Columbus, OH .
Cleveland, OH
Louisville, KY
St. Louis, MO
Clark Oil has a Marketing district office in each
oftheseiitiesinaddition toalarenmberof ..........

of thes citiieis inadtotiiioiiriii i en b o
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seric sations. This represents approximately
........ ++ii iiiii;ii,,iiiil;i ,iii

total labor force.
(2) QUESTION What plans does Clark have to expand or
ontrat thse operations and what are the major
factrs tat have influenced these plans?
ANSWR resently, Clark plans on converting a
full service stations to self service.
In aditio, Clark will continue expanding into
the gocertte business in these central city

li I, |iiii
iliiiiitiiiinii.iiii i i i i i i i i i+
factor contributing to this change is
xion of the oil industry. The industry
trendistoiward more and amore self service stations....
(3)QUETIO -What recruitment or job training activities
does our orporation sponsor that are specifically
aime at he unemployed in central cities?
ANSWR lark's service station persbnnel come.
from he loal labor market.
Cllas recently entered into an agreement
wiU.S. Department of Lab to select, train
anddevlop300 unemployed Vietnam Era Veterans as
servce sation managers.
(4)QUETIO -Which existing federal and local
policiesenourage or dstcourage operations in
the~~ ceta ities?

ANSER Amajor problem in many cities is good

I hoe te abve'uccnctly answers your major questions.

Chairman o the Boar

TheW Honorable Hery S. ReussRD
Chaixman, House Subcommittee on the City
604,Houase Officed Building Annex
Washington, D.C. 20515

Dear Congressman Reuss:

We agree with you that major corporations mustrcgieha
they have an &mportant role to play in helpingrvtlzou
iiiinner cities. The Clorox Company has done so,,i anI
.ii;; liiiii,;ii~l~iiiiiiOiiiiiiiiiiiiiiiiiiii ,iiiii.;iiiiiiiiiiiiiiiiiillliiiiiiiiiil
rii i 111111iisii iiiiii==iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii====iiiiiiiiiiiiiiiiiiii=======Ii.........
.;ii iiiii '"""""""""""; """ """""""" """" """""""; """"""""" '""" ;iii;;"" ;;;;;;l;;;;; sl ......,,

its commitment publi.

In April 1976., we mov edn our corporate headquarters into the
heart of Oakland' s downtown urban renewal are.Coo ea
in Oakland in 1913. It is here that C;lorox ha eti ol
make the greatest contribution nto deconomic deeomn. by
;i iiiiiiiiiiiiiis;iii iii rrrrr i;;;==iiliU liiii;; ;iiil ;= ====iiiiiiiiiiiiiiiiiiiiiiiiiiii ; i; iii N )= iiiNiiNi iliiiii= Hiiiiiiii ii=i

directly participating in the joint effort
ment and the community to restore the economcannoca
iiiiii;;i i ;; i =ii ........ ... .. == ... ... .

..vita.lity of a major urban cente.

For the past year, I have been the Chairman ofteOaln
Council for Economic Development (OCED). Oaklan soeo
iiiio ;;ii iiii iiiiiii is iiiiiii i iiii
;;iiiiiii!l iii.iiiiiiiiiis,iiiiii !iiii iiiii iii ii

the ten target cities funded by a grant from
Development Administration. OCED has been worigclsl
with the city administration to prepare an econmcdvlp
l iiii;; i iiiiiii iiii

ment plan for the city. Because Oakland' s unepometrt
exceeds 13%, the major objective of this coopeaieefr
is to provide jobs for Oakland residents.

The enclosed Interim Report describes OCED an
ments to date. While good progress has been mdteei
much left to do.

We are just beginning to evaluate federal, st
government policies that affect business operain n eta
cities, and are not prepared to respond specifial oyu
inquiry. However, we felt you should know abot O sa
excellent example of the cooperative effort necsayt rn
non-industrial business back to the inner city

Clorox does have mnall plants (150 employees or fewer) in
several other major cities. However., due to the nature of
our business, we plan no major expansions during the next
........fve years., Consequently., as a corporation we are not
eanrma n-Ing the questions you posed in your October 27 letter.

We hope that the-Sinformgation we are providing on the Oakland
Council for Economic Development will assist the Subcommittee.
We believe such a mechanism can be vexy effective in other
Nmiiii" "iii" i


iiiii i i;iii;i Ei i

urban centrers.

.i r iliiii.iii ii i! i.i i


iiiiB iiii iiiiiiiiii1iiiiiiiii@ i ;

::::::::::::::::::::::: : ::: :::::::::: :::::::: : ::::::::::::: : : :: ................................ j i i ii

i i~ ~i~ iii~i ii iiiii

iiiiiiiii iiiili."i~ Iii~ iiii~ iiiiiiiii ii~rl iliii~iiii i~ iiiii


The Oakland Counncil for EconomicDelomn OE)wscatdb
concerned business leaders -who felt thathbuiescmnty s ak
a leadership role in generating and stainn upr o cnmcgot
in the City of Oakland. An initikal terncomtehaedb
Mr. Willianm.R.-Poesch, President of KaisrIdsre oprtofru
lated the preliminary operating structuegasndcomidvlpet
plan. With the official formation of OE, ne h edrhpo
Mr. Robert B.-Shetterly, President ofThClrxomay EDasbe
recognized and approved by the Mayor anCiyouclaanndpdet
iiiii i;; i'"iiiiii ;" iiiH .....iiiiii""i ;,iiii" .............. i iiHHHii iiiiiiiiiiiii iiiiii)NHiii ........ ............ .


OCED Goals

OCED is dedicated to the p ropositinthtaelhycomcbses
iiiiiiiiiiiiiiiii ,iiiiiii~iiiisiiiiiiiiiiiii ; '"'' '""""""""""""";

the necessary foundation for a dynamicgoi cmuty-onwhh
offers employment opportunities for itsctznoudmiiplpea
tions,, and the complex of necessary socaeutinlndrraiol
amenities. To that end, OCED has evolvdtregasogueisacv-

1) retain existing industry

2) attract new industry

3) improve the community infrastrcuesthtiisupo-
ive of economic growth

Specific Responsibilities

OCED has identified the followingasitsmajorresp

1) present recomendations on City public policy relatingto
economic development to the Mao nNiy oni o
their review and action.

2) participate as appropriate in the formulation and imple-
mentation of the City's economi eeomn ln

3) engage in activities necessarytprmeansiule
local economic development.
.i ,i; iiii"iiiiilii iiii". li ::iii


'" iiiiii ;ii iiiii iiiiii

.ii i ;;;;;i iiiiiiii" iisiiisl;, :ii iii ii ii- '=i ... .... ..... ............. ........... ...... ...... = i
iii;;. "";iiiiiiiiiiii ii sii' ;;; ...... == = = == '== ;;;s.... i i


In order to utilize the full resources available in the community and
toiboad-based spport for its activities, OCED has formed eight
ii ii "@ ;;

tasiiiiii ii assist its economic development efforts. Task forcesi
arechire b a etOCED meamber appointed by the c~hairmaan.^ Task force chair-
ec ernswho are perceived to have expertise, interest
andexpriecein the respective field of concern to the tas~k force.

The rle ofthese task forces in general terms is to assist OCED in
iiiiiiiiiii iiiiiiii, iii i i i i iiiiiiii i i i iiiiiiiiiiiiiiiiiiiiiii
;iiii ii ii iii;;ii iii = i iii iiii i ii iiii iii i!il i ii liiiiiiii i llii i ii! iiiiiii i liii

carryiha ou t cnma nic development objectives by discussion and follow-
up ativtie. Nearly 100# citizens are involved in OCED programs as task

Comuni Environment --James A. Vohs., Chairman, and Pr'esident,
Kaiser Foundation Health Plan

DownownDevelopment -- Lloyd A. Edwards, Chairman, and President.,
Fis nterprise Bank

Emplymet Development -- WilliamE H. arker,, Chairman., and East
Ba M nager,, Pacific Telephone Company

Finacin Support -- Blair R. Egli, Chairman, and Vice President,,
iiiiiiiiiBain of Ameriii

Indutria/Commercial Retetion --Kenneth L. Thompson,, Chairman.,
an atner, Coopers & Lybrand

Invetmen 2portuitis -- Peter S. Hass, Chairman, and Vice
Chimn, Kaiser Cement &s Gypsum Corporation

tiization -- Will m Walters, Chairman, and Partner,
White,,ismbr & Walters

Smal Buiness -- Rufus J. Hernandez, Chairman, and Chairman.,
Ciy meter Federal Savings & Loan

Staf sevices t6 the Oakland Council for Economic Development are
perored~y he Community Economic Development Program staff of the City
of Oklan fuded by a grant from the U.S. Economic Development Adminis-
traion intheamount of $250,000 per year for two years. Oakland was
selctd b EA as one of ten target cities for community economic deve-
lopuet pogams. The purpose is to provide federal assistance to these
citeson dmonstration basis to design and implement local economic
devlomen pograms. Additional staff assistance to OCED is provided
by te Oliceof Ccumunity Development which has the responsibility for
the ity' reevelopment activities.
...iiii= i .=
i ii iiiiiii ii ii ii~ i i~ii i i
i ii i i i i iii i i ii!i i i ii ! i i ii i i i i iii i i i iii i i

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iliil"iR ~ s l ''""" i~i ; ii;"i n iii iiii ii iii i !iiiiiiiiiiiiiiiiiiiiiii
;;iliii ii
ii~n ii i

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i;;,,,i l iiiiiiiiiiiiiii iiiiiiiiiiiiii iiii iiiiiiiii
iii iiiiiiiiiiii i iiiiii ii !ii
r iiii;;;iiii;;; l ii i iiiiiiiiiii i~~i iiii i iiiiiiiiiiii iiiiiiiiiiiiiiisii iii ii iiiiiiiiiiiiiiiii i ii iiiiiiiiliiiii iiiiiiiiiiiiiiiiiliiiiiiiii i i i iiiiiii iliiiiiii iii iiii
....iil i" ii~ i iiii

@ iii ; ii i ~ i iiilliii ;iiiiiii iiiii iiiiiiiiiiiiiii
iii~ illil iiiiii iiiiiii i1 iiiiiiiii i iiiiiiiiiiiiiiiii

== = ====;;;;; ; i iiii ;==

iiii i ii iiiiiiiii


Honorary Chairman: Secreagg
iii iiii iiii iiiiii~; ''iiiiiiii l;;l; 1;;;;;;;;;; i

Mayor Lionel J. Wilson Mr. Justin Roach.....
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii Niiiiiiiisiii~iii~iii' ;~

Mar of Oakand .Crosby, Reafy,. R
Professional Coprt n
Mr. Robert B. Shetterly Treasurer:
President, SThe Clorox Company Mrs$18. Egelyn X. Jeet
President, Tribune Publishing
Vice Chairman: Co.pany
Mr. James A. Vohs
President, :Kaiser Foundation
llospitals/Realth Plan

-Other Members

Mr.-*Tom Berkley Mr. Dale L. Lynch
Publisher President
The Oakland Post Safeway Stores, Ic

Ms. Elaine Brown *Mr. Charles Mack
Executive Director Secretary-Treasure
Educational Opportunities Corp. Brth erh oodx I ofTea adAt
Truck DriversLoa #7
Mr. Lloyd A. Edwards
President Mr. Cornell C. Mae
First Enterprise Bank P resident -
Kaiser Aluminnu & hmia
Mr. Blair R. Egli Corporation
Vice Presid'ent
Bank of America Mr Williame IMurre
Mr. Thomas W. Fryer., Jr. First American TiteGaat
Chancellor Company
Peralta Community College Dist.
Mr. William H. Parker
Mr. Peter S. Hass East Bay Manager
Vice Chairman Pacific Telephone opn
Kaiser Cement & Gypsum Corp.
Mr. C. J. Patterso
Mr. ]Rufus J. Hernandez President
Chairman Golden State BusiesLau
City Center Federal Savings & Loan
Mr. Charles J. Patro
Dr. ]Ruth Love Senior Vice Presidn
Superintendent World Airvwas, Inc
Oakland Public Schools
ii iiiiiiii iiiiiii; ii i ii;;;;' iiii iii ii i = == ==' = = =' i i i == i i ; ii i == i

iiiiiiiii iii iii ii iii iiii iiiiiiiiiii I.
iiiiiiiiii i ,iii ;;; iii: i
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;; iiiiii iiiiiiiii iiir

ii iiiil; i; .O'illliiii;i,, iiiiiiiiliii iiiiiiiiliiii i
.,,,;ii::iii iiiii i iii ii ..

iiiiiiii ii iii i i iiiiii~ i iiiiiiili~ ii
iiiiiiiiiiiiiiiiiiii iiiiiiii i iiiiii;,, ii;iiii i l~, iii i i ii iiiiii

@i i i iiiii i;li~,,;;;j~;l

iiiiiiiiiiiii iii ii= ii=
iiiiiiii ii i i i i ii i i i i i i ii iiii i i i i i i il iii i i ii ii i i iii i ii i ii i ii i iii iii "; iiiiiiiiiiiiiii" iiiiiiiiiiiiiii i iii ii i
iiiiiiiii iii iiiiiiiiiiiiniii iiii niii;i s I.~ lii~iiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiill; ;;i;,iiiiiii .... ;;
i i I ;ii iii
Jiuo s ,;l i@; i"lli;,iil,,
I lllii ;

lixiiiiii ";;iitii~i iiii ii""iii "'"" ' "i ii iiii! iiiiiiii iii i iii iiiiiiiiiii

iii iiii io i ii iii~i~ l '""""''i; i iiiiiiiiiiiii@ iiiiiiiii ;ii
;iiiiiiiiii iiiii,,, iii;;;,, i i ii;;;;;ii,;,;@ @
iiiiiiiiiiiiiiiiiiii iiiii i iiiii iii iiiiii;i iiiiiiii
,iiiii, iiiiii;;;,i;,i,;, s; , @ ;, ;;;; iiiiiiiii ; i; ;iiii
i l;iiiii ii;ii iii iii ii; iiiiii

iiiiiiiiiiii iiiiiiiii @ iiiiiiiiiiii

;;iiiiiiiiiiii i
iiiil lii;;illl;; I"I"""i"";;"""
.................. ...... ... & Allied TradesB ilding Trades Couni l of.

Coopers & Lybrand Edward B. Wong Company,

iiiii i!iiiii~~ii~iii iiiiiiiiiiii !,,,,!,!,,,,ii,,,ii ii l l i i i iiiiii
.............~~. . . . . . . . . .

Members of the Eecutive Camitte

i! iia a iii/ j/iiiiiiiiiiili iii' iiiiiii ii'' iiiii'"'i= iiiiiiiiiiiiiiiiiiiiiN NN .............. .
........ ,,,iiiiis; ,;;iii ;;,,II;, ; : iliiiiii;

ii 2) ; -; i;&&re; ipi ofiaiiiiiiiting

S or aiiiiiiii "iinii iiiii=iiiiiie iiiiiniiiiiiiiiiiiiiii iiii tsefiii iiii6iou ti Ouco
Devlometh and the Cit 1 staf have purseds h-olwngcusso
actionl:prnigspcii po

1) udeelsopmeth ofanovrllplnso economic deeopet

2) development of opmeratinghend eportigpoeusfr
theiii City sntar fiin

T3) oranizin co hevarious Oaklad Ctas o zan nagn
Danthe Ciuci from 11tootsiniiiaiisn 25eobr

4)tyi C activii puruigapiiic thesii iiiiii ti th

iAdecit iiious of stcstpiicifi prjc

Oakland Ct niiCente, iaes
iii~" i; iiiii ;; iiiiiii ; iiiii '; iiiii
ii iii iiii iiiiiiiiiii ;; ;;i
iiiiiiiii' ;' i;'" iii; iii

nTe ear be ltn tofe Oakion Cit tne Ge f ty
iiiiiiiiiiiiii iiii iiiiiiiii ;;i;;; iii; N

fotfOCED and thoCtyhaecordinathed effortsmeslywt hedvloe o
CityeCenter-to obtaind o the S essentialthirddep m er o
ii, ii~i~i;~iii iiiiiliiiiiiiiiiiiiii;iii ;;;;'iii l iiiii 'i iiiiiiiiiiiiiiiiiiiiii
? ?? ?? ?? ?? ? ? d ; 4 d; ;
that the regional shopping mall construction could move ahead. As discus

sed in-a previous sectii';iiionii negotiations withBullock'sdepartmentstore
ii! iii; iii i|

areii well....... uneiy .... it appears lieltatte

erly 1979. Completion of the shopping cetrisl peast elkl
byearly 1981.

Cty, Center Hotel

City staff and the City Center develoe r ntepoeso rpr
ig a request to EDA to provide the financa sitnerqie omk
te proposed 400-roan City Center hotel a fail rjc.Tecs f
e hotel has been estimated at $23 milli

Hog KongUS

A disposition agreement between theCiyadteevlprhsbn
sgned, and the developer has submitted prlmnr ln oteCt'
Ofice of Community Development for approvl CDivleethsbe
mnimal to date, but its role of expeditingadassigwl rwa
te project progresses.

largely exihtine efforts ofites Financi SupporteTasFnc
hb ea in d elopanaing aiinancialpackagethron aconso tiuo

loca baks o eable the restoration ofd Vctoruianowion beownton Oaklaendi
to~~~~a ge ne aNgtations witrha the banks thedeelopen r and the City

of OaklandE have:en caridondintensively ver o the pas00 maonthus.nse
Whilseerces st emaiconside progreh n as been made

which shoul enable work too beginses in early 1978.

possblemomntanyexisting Oakan busioness that may be conthempltin

movig ou of he Cty r exandingk orrelocating wihnesar Oakland. The
stem wi-1.reqirecloesooeration oand comn Cictiona beatwlenCtyd agnce
_d nmbr f hek oitst externa toth government igee.e an Oriae seto


The ~~emn Ctan CDhvondce a Ciysurveynofi thev600pmajpora buinsstes
within ~ oe-to thees eviea City. Thel purposeiis topoieindpfifrmtobu
typs, ocaion plns anpld prolem oflocl beusiemneses. Aii paret oftew
study ~ incude rcmedtonsfor actions by tcenCized lorcayiontohobrai

Permit adinsdav Liocednse Hhihnloddonobsi
A:ermi anlicnse hndbn deta the necedssry andtse easi
liicensesrequiredofbusnesses toadere in te Cith wasul ee be

One-aiSton BsnsSevc i h
An iporant lemnt f th Ciy'seconmicdeveopmnt rogrm i th
estabi-sbent f a oe-stp buines servce a C 1y Eal. Th desgn o
the rogrm ha bee comlete andwillbe iplemntedwithn th nex fe
months. The service wisiiiill ofe bsinssa enralze lcaiontoobai
assitanc andinfomatin. Te sevicewillalsoworktowad steamlnin
the Citys time-onsumin adminitrativeprocedues whic slow dwn busi
ness expansion and investment

Foreign Trade Zone2

The Cty stff isconduting stuy of he ned forand te feaibil
ity ofestabishinga forign trde zoe in Okland The sudy i bein
conductedin closecooperaton withite Port o Oakland

.i @ ;;iii;ii;; i==,,===== = = ==== iiiiiiiiiiiiiiiiiiiiiiiii

Task Force has been vorkng closely with the City ManpwrDprmn n
tlhe State Employment Devrelopment Department to see wa rgescnb
made in providing .obs for Oaand residents as ai rs
sion. In addition., OCM ase undertaken co-sponsorsi it h Myro
a "Hire Oakland" Program which has just gotten unde a.Tispormi
aimed at finding 400 jobs in the private sector frolclrsiet.
utilizing federal funds for on-the-job training.

Bsainess Retention Activity

One of the most effective of the OCED teask forcshsbe hto
Blisiness Retention. Task force members hav e allduo uinse hc
have been contemplating leaving the City for a varieyorasn.I
most instznces, OCEED and the City wcrking togetherhaemdprgssi
4Slving some of the specific problems of these firms

E, -nomi- Planning_ and Analysis Program

City staff, with the advice and assistance of OEwl eeo
comprehensive economic analysis of Oakland which wilreutianmpod
program planning effort during the next year.

Other Activities
iiiiii iiiiiiii iiiiiiiiiiiiiiiiiiiiiiii ii; i',';; ; l ; ==; .......................................

In addition to these major activities, OCED hassre s CMig
board for the City on specific issues where the Counc

sc_ht. OCED has made recommendations opposing the ipsto fa
employee license tax and recommendations concerningapooedidsra
park in East Oakland and a proposed economic elementt eaddtrh
City Comprehensive Plan.
iiii ........ ............ ..= . ....... .......... =

iiiii iiiiii iiisii siiiil:; ii~ii iii i iiiii i iiiiiiiiiiii iiiiiiiiiiiiii
iiiiiiiiili iiii iiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiisiiii iiiiiiiilii~iiiiii
i=iii;==,i ..... ..... .... .. =iiiiiiiiiiiiiiiiiii=iiiii iiii iiiiiiiiiiiii iiiii =iiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii ii i iii;iiiiiiiii .; i i ii i i ii i ............................ iii i iiiii ...

iiiiii ;" ';ii I; ;l i i'l; ;ii :ii ii iiiiiiiiiiliiiiiiiiiiiiiiiiii ii
;iiiiiii i iiiiiiiiiiiiiiii iiii.",;; iiii ii iiiii
iiii :;, i,, l ;"iiil;;ii sicci


':kJ7." Collins & A man Gorpo.-ation
iii;;is; sl;; iiiiii iiii ii i iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii ii

210 Madison Avenue
New Yrk N9Y 100 16
(212) 953-4200
iiiiiiiiuiii iiii irr~r i i iiiiiiiiii; '

Congessan H-enry S. Reuss
U. Huseof Repr e sentative s
; ii ;l"; iiii ii iii ;;;ii' ; ;;;;;;i ;; ii n~u iiii iiiiii, isi,;, iii = ii i i ii i iiiiiiiiiiii iii

64o @ Oiiiffiiicei Building Annex 1
..................... i" ii ;""" i iiiiii;i

'WahigtnD. C. 2515

In ~ ~ rsostyour lettr of October 27th regadig the
plightd Ofor etal cities, we would answer your four
1iClis&Akan's total employment is approximately
iiiii iiiiiiipeople. Of 35 manufacturing plants, one is in

th ctyof Nashville, Tennessee employing some 750
peole.The corporation has numerous marketing and
cranfinancia facilities in cities throughout the i

coutr. These facilities employ approximately 600
2......ployment in these cities will expand as our

busnes grows over the next five years; however,
ou picy is to maintain facilities in cities only asi

necessry, i. e. marketing, financial, distribution,
and wrehouse functions.
i llliii i;,ii;;

Sport numerous private and public projects that

are aied at the unemployment problem in central
cites nd, of course, recruit from the same areas.
ii U iB Bii! i

iiiiiil~iiii iiiliiii ~ili iii

iii iii

io,,s ;
ii~ a~;, ;; ; ;;; ;IlO]i]]]i ]]] ]]]]
......" i""""

~i E~~~ i IiIi ~l

4. State and/or local poicies obviously vary from
city to city across the coutry. We find, that some
towns and cities in Axnerica. are quite progreni~ssie
in their interfacing with businesses in t~je pr44ate
sector. Such cities typically would have favorable.
tax policies, budgetary disciplines, welfarei under
control, etc. Of course, the best example of a
central city that completely discourages the private
sector from maintaining and/or locating operations
would be New York City which has over the yearsa
levied textremely high taxes, both corporate and
personal, has legislated an enormously permissive
welfare program and has a single party govermentt
which to a large extent is controlled by the emgaticipa
unions-. The plight of New York City is, of coure
well known. Companies and, .theref orej people are
still moving out of this type of central city.

In our opinion, one would be encouraged to move back to such a central
city only when it was demonstrated that there were basic reforms in the
political arena., government budgetary disciplines reinstated, and a
demonstration at all levels of government that the excessive abuses
of the municipal workers, unions, and the civil Opervice code. in
general would be brougltunder control. In short, until central
city government addresses itself to the problems of these e;Kcesses
and, therefore, the huge deficits which in turn require higher and.

to maintain or increase employment in these locations by the private


i Riiiiiiiiiiiii
ri iiii;,ii;iii;~i~iIIU;;ii;;.. li ;;""" ::Bli';iiiiiii"Pilii ,;,;iii ;ii;;;
Issrrin i ';;:iic~iiliiii; iiiiiiiiii;;
,P e oConAgra, Inc.

enraa~r Omaha Nebask 68',31ad
attak~ ~ ~ Phone 402)a 34 6-8004ert
iiise il irn ie Prs iden

Copoat hatcheryr Puli aAranflvto)airs
November 3, 1977:;;;:;;li ,

Sub-Comitte oity theil Citynt
Unite Staies Hofs ofh NebpaesentOatland
604 Housea oiffe BuildingMAninen1

Dea Chairna PuRteiuswso:av il
resondng o yur eteratn ofnitobe 27, 197fi cs. nOng the
interest ofyou Su-omttese cinthes plightv of ourCentral
Thefollowingchsa aswel to the set iof

1. Atthe peseto RConr,w Inc.loy a total of 677
productio failties four offidcites in 1stthesi
th tiineiiinlUnited States a i6in Pbuet

1 iUiiiiiiStates employment of 4,073

Many of these fcilities are smll in size (suc
i,,,,,, NH ? H ~~ ~iiiiiiiiiiiiiii iiiH '=i iiiH | L

so a a d S n J a, Pu rt Ric we... ... do ..... faiH~i, i rl
Ciy"p of le e ou d id n ify ....... as iiiiiveii

you inquiry. i ii
E x l d n P u e r t oi R i iiiiiii e m p l oyiii aiiiii t o t a l o fii 6 75ii iii ii ii ii ii iiiii ii iNiiii iiiiii iiiii ii ii i ii ii iiii ii ii ii ii ii iiii ii ii ii ii ii ii ii ii i ii ii ii ii iii ii iii ii iiiiiii !i ii ii ii i iiiii ii ii iiiii iiiiiiiiiiiiiiiiiii
peopleiiitheiothrifourinmed citis in th
con ine taiUn teiSt te .iTisis iiiiiiiiiiiiiiiiiiiiiiiiii7%iiiiii
of~iii 'ouriiliiiiiiiiiiiiiloy entioi4,07
employees. )))))) )) ))) )))) )

;;""" II;;land, California; 78 in Tampa, Florida; and 80 36i:_""""""""~" """""

Minneapolis. Ixpantion this estoillustrt
of;;ias thuoug locaected acquisitioy
relatisoes to the overall siz ic ath

haeany expansiocain n woldliel Untdotte nh
~intemedium to small sz omntes whchcofomst
any one operatin facility a

thntrientatiour oAgoribusinessfnto. nsot
ouriiusiness aceuired on aew uisitiocated
Amria ratherolthan citylocatins

In ihee four myetrooluitnes citisourmnfatrn
unit (fould mill be feedsixingt plats-gri

eeaors facor tendfluencin thes "CnrapiyLra
due l to geeneedatexedncsiv rail trhrougarg

2.Our elansatoexpand for the next appreyer n0ve
bothintrnal expnsin ofa intexitn bushosea

prouc ares.oooe oeb xas
Inena xaninwol ikl olo hesm
pater asno exst reatve o iteloatins

ally rienationof or busness

the siz and tye of buiness ivolved.At thi

availbilit of cpitalto fiance hem -eithe

screation is promoted more by expansion of existing

iiiiiiiiiii .................. ......... .. ......

in ta liiiiii.E e t a l of course, aniiiiidbuin i
hopfuly form 4 a new foundation for expansion and
iiiiiii i"

Nation in the fture.

3. Or coporation sponsors recruitment and job-train-
ingacivities in each of the major cities in which we
'iiiiii;; ;;;r i,
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hav poduction unitis or major headquarters facilities.
paticarly truein Omaha, Nebraska where we
havetwoproducing flour mills and the corporate head-
quates offices as well as the headquarters for three
of urmajor businesses.
T sponsorship consists of active participation in
andfiancial support to minority agencies such as
the Urbieague andithe Opportunities Industrializa
i iii iiiiii i

tio Ceter (99.I.C.. In addition we support minority
bus s enterprise deveopment through purchasing
iiiiii ~ i~i~ iii~;i ii@i,; @;i i.paiiiii ,,~i~iiiiiii@it @

conacs and via funding of a foundation established
to~ Prvd Venture capital for the start of minority
Our ntenal affirmative action programs have for
sevralyears aggressively recrited qualified
minoitis for all jobs in addition to participation
in Nati l A1ianc of Businessmen rogram to
assstthe unemployed and disadvantaged.
4. baicelement which tends to discourage us from
loctig new operations in a Central City Area is

the hih eal estate tax rates which apply. For
weare in processnow of doing some pre-
.1iinryplanning for the construction of a new
cororteheadquarters office facility which would
-prvid emloyment for about 400 managerial, admin-
istatietechnical, and clerical employees. Al-
thouh n decision has yet been made, our preliminary
stuiesindicate a substantial real estate tax con-
seqenc if such a facility were located in the core
dowton area versus other potential sites located

It oul be helpful if real estate tax laws could be
modfie to prfovide relief from this ki~nd of
disinentive to locate in an area which otherwise
23-3II 0 7i8 i 7iiii ii ii ii i i ii iii;ii
iii ii

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iii"" iiii

might be desirable. Tax increment financing programs
sponsoeda by state law. waudd be a positive atep; as
would other various tax abatement Plano devehapept
and used successfully in cties.

The ,real estate tax consequence for new construction,.
is compounded by several factors. First, the initial
cost of construction in the inner city-area is gen-
!" !iiii" "iiii HNi;,l' ....

Serally higher: which creates a higher value for tax
ipurposes. Secondly, the tax rate-appli toithe
iiiiiiii l;;;ii~i~iiiiiiiiiiiiiiiiiii '"iliW

greater value is often higher. The result can be
ia substantial difference which ino eiponsible

publicly owned company can ignore completely.

The altruism of a private enterprise business can
be expressed .only within the constraints of profit-
ability just. as the altruism of government must be J
contained within budget constraints.

The modification or removal of negative tax in-
centives on new construction or major ditionsiiiiiiiiiiiiili

and remodeling to improve efficiency and expand
operations would seaem to be an essential pre-
requisite, to substanativeprowgress.
I am hopeful this iii dequately respnsive to your request. I
iiiiiiiiiiiiiiiiiiiiiiiiiii ii ii= = iiii iiii ......

iadditional information or cl cation is needed, please let



Notae: Sivnce Congressman atalatr Cavanaughis a Y mbeof this.tlcomitR e
iiiiiiiii iiiiiiiiiii ii iiiiiiiiiiiiiiiii

and is our home district representative, I am taking the libertyiii
;i ii iiiii iiiiiii i i

of sending him a copy of thisletter. He will be generally
famiwiiii iioi biiiness and the City of maha more specificall
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'ii iii ii"iii
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i iii :iiiiiliiii iiii iiiiiiiiiiiii iiiiii!i i i iiiiii ii i i i ii i iiiiiii i ii iii
., ;;iiiiiiiii i i
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iiii ; i i iii; iii
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The CotnntiouIc
@, is Avnu e ii i

Robert Hafil

po~Caf mar. t o!ait th Board

Noeme 11,~ 1977 e cnoi
U.S House of Rersiai
Committee on Banking, Fannanc

an ra f ais adrdcs hsbsn
604~ste Hous Ofofice Buidngennx:
Wasingon D.C.tie 20515. an
Memer ofse the Committee:-ion
efrstI dr veop ogms to a ist t ie in ioi
rnsn ofteinnercities andtheirunempled.

The Continental Group.,, Inc., is a large multi i -national

meta propcts foest indsre s pod es ucs eaned
ai mao emn fordmsic businssi iniii
liecauaty ad iteinurnc sle ad ndr

1. writing.ii!
Dierified 10r300
Inurnce 6,100
Copoate 650
Total 40F150
The ollwin inormation is furnished in response
to yur nqurie, in the number and order set
1. At hed as Exhibit a is a listing,
broendown by business segment, of
ou dmestic facilities located in "inner
cities", which shows type-of facility
and aproximate number of employees.

i ii niiiiii i ... ............ t h isi ........

The considerationswhichdictata,
ility location varyiiiiiiii iiiiiiiiiiiiiii ii
business segment to anote utas
,s, ii;I
within a business segmet o eape

oii paper mills, which
Forest Industries, mutaeloatdcls
to the source of raw mateilsple
and fresh waters while
converting operations, loa ato
our Forest Industries tedtbload
close to the customers.

2. Expansions and contractinofurbs
inesses are planned eassetal nrsos
to the anticipated deandned f u
markets, the rates of reunwihcn
be expected And the avai
the needed resources.WeAtcpe

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..... sii; niinpi ioobiiiir ii =i i Hiii
II iiir
that our domestic metal cnanrbsns
will contract in terms
over the next five yearsdet niat
ing self-manufactu're byou stmr'
competitive pressures anthfatht

this isiessetially a
with relatively low rateofrtn-
Expansion is anticipatedfro'dmesc
paper making operations, lhuhti

will basically'relate toiiiiiiiiiii
capacity and no new mill r rpsd
Converting operations inorFes
Industries business 'servea'ubro
different markets, some mr r'ial
and less mature than othes xaso
'will occur in some segmnts otato
in others. Our Diversife ntiis
is comprised of a numberodifen
businesses, most of-whicweatipe
will expand, requiringadionlfcite
and providing additional mlyet
We do not anticipate Anysbiata
change in the insurance bsnsatog
We do expect''growth. .,hsmy esi-
marized in terms of'epomn Asfol r