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APPENDIX II

MATERIAL SUBMITTED BY HEARING WITNESS PROF. WILLIAM H. ROGERS, JR.1

GEORGETOWN UNIVERSITY LAW CENTER,
Washington, D.C., December 27, 1973.

Hon. LEE METCALF,

Chairman, Senate Subcommittee on Budgeting, Management and Expenditures, Russell Senate Office Building, Washington, D.C.

DEAR SENATOR METCALF: This letter will supplement the statement I delivered before your subcommittee on December 13 and provides the requested documentation. The material is presented roughly in the order it was mentioned during our colloquy.

Exhibit 1. This is an article by Judith Martin from The Washington Post of December 6, 1973, entitled "A Corporate Surprise." It discusses the CBS special, "The Corporation", and Phillips Petroleum Co. and its board chairman, William W. Keeler.

Exhibit 2 is a Jack Anderson column, dated October 16, 1973, discussing the political contributions of Fluor Utah and the receipt of the $2.3 million contract to investigate environmental, technical and economic requirements for large-scale coal mining systems.

Exhibit 3 is a press release from the Office of Coal Research, Department of the Interior, dated September 14, 1973, announcing the Fluor Utah Contract. Exhibit 4 contains the documentation for the conclusion that individuals whose companies are represented on the National Industrial Pollution Control Council (NIPCC) contributed at least $1,115,478 to the President's re-election campaign. The sources and method of computation are explained in the document.

Exhibit 5 is an article by Frank Wright of the Minneapolis Tribune, entitled "Stans Tactics Shocked GOP Fund Raisers." It was published in The Congressional Record, Nov. 20, 1973, at the direction of Senator Mondale. The article identifies NIPCC as a business lobby against pollution standards and an instrument of political fund-raising.

Exhibit 6 is an excerpt from The Congressional Record of May 22, 1973, inserted at the direction of Senator Percy, containing some of my correspondence with respect to efforts to gain access to the deliberations of the Department of Interior's General Technical Advisory Committee and the Environmental Protection Agency's Hazardous Materials Advisory Committee (HMAC). I ultimately was given access to most of the materials sought from HMAC.

Exhibit 7, which is offered as illustrative, are the summary minutes of the Seventh Meeting of the FDA's OTC (Over-the-Counter) Panel of Antimicrobials, dated February 8, 9 and 10, 1973. They may be too bulky to reproduce in the record of the hearings but offer insight into the types of issues discussed.

Exhibit 8 is a copy of my letter to Captain T. McDonald of the Coast Guard, dated February 23, 1973, protesting the disbanding of the Industry Advisory Panel on Oil Pollution and requesting access to the deliberations of the Marine Safety Council.

Exhibit 9 is Captain McDonald's response, dated March 13, 1973, explaining that the Marine Safety Council consists entirely of Coast Guard officers. I am informed that the Coast Guard makes available to the public the full transcripts and minutes of advisory committees to the Council, including such groups as the Towing Industry Advisory Committee, the National Offshore Operations Industry Advisory Committee, the Chemical Transportation Advisory Committee, and the Industry Advisory Committee on Rules of the Road.

Exhibit 10 is a letter from Dr. Julia Apter, Chairman of the Ad Hoc Committee on Medical Engineering Training of the Institute of Electrical and Electronics

1 See testimony, p. 79.

Engineers, Inc. to Dr. Philip Handler, President of the National Academy of Sciences, Feb. 8, 1973, suggesting that the Academy is governed by the Advisory Committee Act.

Exhibit 11 is a letter to Dr. Apter from John S. Coleman, the Academy's Executive Officer, dated February 20, 1973, asserting that the Act does not apply to the National Academy of Sciences.

Exhibit 12 is a letter from myself and Louis Lombardo, on behalf of the Public Interest Campaign, dated June 22, 1973, also raising the question of the application of the Act to the Academy's advisory panels.

Exhibit 13 is John S. Coleman's reply to Mr. Lombardo, dated July 19, 1973. Exhibit 14 is a letter to me from Charles A. Tobin, Secretary, Federal Trade Commission, dated March 9, 1973, explaining the Commission decision with respect to labeling proposals for phosphate-based detergents.

Exhibit 15 is my letter to Mr. Tobin asking for, among other things, disclosure of the minutes of various ex parte contracts affecting the proceedings.

Exhibit 16 is a letter from Congressman Henry Reuss to Mr. Lewis A. Engman, Chairman of the FTC, dated May 17, 1973, urging disclosure of certain agency information affecting the phosphate-labeling proceedings. The FTC has made this information public.

Exhibit 17 are two articles from Science News, October 7, 1972. The first article, by Richard H. Gilluly, is entitled "The 'unveiling' of science committees." The second article, by Everly Driscoll, is entitled "Attending an open meeting of a formerly closed science committee: A reporter's view."

Lastly, I've enclosed a copy of my prepared statement which I hope will ap pear in the hearings.1

Yours very truly,

EXHIBIT 1

WILLIAM H. RODGERS, Jr.

[The Washington Post, Dec. 6, 1973]

A CORPORATE SURPRISE

(By Judith Martin)

"The Corporation," a CBS special on Channel 9 (WTOP) at 10 tonight, has a last-minute surprise ending.

The Phillips Petroleum Co. and its board chairman, William W. Keller, the subjects of the documentary on corporate methods and goals, were found guilty Tuesday of making a $100,000 illegal contribution to President Nixon's re-election campaign.

In the early part of the program, Keeler is portrayed as tough, realistic and sometimes cynical about the power he wielded.

But he talked a great deal about honesty, ethics and the American system. "I think the chief executive officer is in charge of the ethical standards of the corporation," he said in an interview before he retired from that position in favor of a man he had chosen because he was "extremely honest with others and with himself."

He characterized the advantages of his years of work on governmental councils by saying "I could do nothing that would be involving our company, make any decisions anyway involving our company. So it was clean that way. But by the same token having gotten acquainted with so many people and knowing them on a personal basis it made it real easy for me to go into government and discuss problems with them."

By the end of the program, he had been advised by legal counsel not to talk anymore.

It was more of a lesson in corporate thinking than CBS had anticipated when it chose Keeler for the study in 1972 because he had been "recommended to us by industry and trade associations as an 'outstanding corporate manager.'

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This was an unexpected bonanza for the show, which purports to show "how the corporate society inspires loyalty, shapes attitudes and enforces rules, rewards and punishes" for the estimated 40 million Americans who work for them.

1 See prepared statement on p. 79.

Phillips Petroleum has assets of over $3.2 billion dollars and interests in 159 other corporations. A normal, happy All-American corporation : "We're normally sued once a day," said its counsel.

The people who work there, it was made clear, are expected to be loyal-by which the executives mean that they must have the right wives, the right type of family life, the right sort of ambitions and the right forms of recreation.

The Man In The Gray Flannel Suit lives. "I've probably been away from home as much as 80 per cent of the time," said Keeler. "I've missed the family tremendously from the standpoint and the normal joys of being part of a family. You don't get it."

This is startlingly illustrated when Mr. and Mrs. Keeler are filmed in the back seat of their limousine on their way to the White House to attend a dinner in honor of Jordan's King Hussein.

"You have met him personally?" Mrs. Keeler asks her husband by way of small talk.

"Oh, yes, I met him personally. We got acquainted with him the first time when we made our concession in Jordan," her husband confides.

If there are any casualties from such a system, in which wives do not know if their husbands have met a king or not, and which recommends that wives be involved in volunteer work and be fascinated with the company, they are not shown. Nor are any rebels.

As late as last night, CBS was still putting the finishing touches on a new, ironic ending to the study it began a year ago.

EXHIBIT 2

[The Washington Post, Oct. 6, 1973]

(By Jack Anderson)

CONFLICT OF INTEREST

The Interior Department has awarded a $2.3 million noncompetitive contract to a company to study the environmental impact of its own coal mining operation. By an interesting coincidence, the corporate executives also happen to have donated heavily to the GOP.

In a bubbly press release, Interior Secretary Rogers Morton announced that Fluor Utah, Inc., would study "environmental, technical and economic requirements for large-scale coal mining systems" in vast areas of the West.

Morton said the consulting firm of Bonner & Moore Associates would also join Fluor Utah in finding ways to increase coal production "to help meet the growing energy shortage."

Noble as this project may sound, Morton failed to give the public the real story behind the lucrative contract, which was granted without a bid after private talks with Fluor Utah.

Our investigation shows that both Fluor Utah and Bonner & Moore are owned outright by the giant, $500 million uor Corp., ..hich also owns mineral, gas and oil properties right in the areas Fluor Utah in the position of making recommendations that could benefit its own corporate parents by tens of millions of dollars. On top of this, the GOP contribution records show that Fluor was a moneybags for the Nixon-Agnew campaign in 1972. Well over $10,000 went to the Republicans from the "Fluor Employees Political Fund," which was set up after the corporation pleaded guilty in 1969 to making illegal corporate contributions.

Thousands more were contributed personally by Fluor chairman John Robert Fluor, his relatives and his company executives, the records show.

Interior admitted there was a "mutual interest" between Fluor and its subsidiary, Flour Utah, but said the dubious deal was not a result of political pressure.

Fluor denied it would profit from the contract and said it had put no pressure on the administration to get it. Significantly, however, when we reached a Fluor Corp., executive in California for comment, he had already been tipped off by friendly Interior officials that we we working on the story.

Footnote: In addition to Nixon and Agnew, various GOP senatorial candidates received money from the Fluor people, including Sens. Jesse Helms (N.C.), Jim McClure (Idaho) and Charles Percy (Ill.) and unsuccessful candidates Henry Hibbard (Mont.) and Pete Domenici (N.M.).

EXHIBIT 3

[Press Release]

DEPARTMENT OF THE INTERIOR,
OFFICE OF COAL RESEARCH,
September 14, 1973.

OCR AWARDS $2,307,887 CONTRACT FOR STUDY OF LARGE-SCALE COAL MINING

Secretary of the Interior Rogers C. B. Morton announced today the Office of Coal Research has awarded a $2,307,887 contract to Fluor Utah, Inc., to determine the environmental, technical and economic requirements for large-scale coal mining systems.

The Office of Coal Research (OCR), cooperating with private industry, sponsors research and engineering projects which are expected to lead to commercial coalprocessing complexes using thousands of tons of coal per day. As a result, mining on a much larger scale than any present operations will be required to supply coal for conversion into clean-burning synthetic natural gas, liquid and solid fuels, and electrical power to help meet the growing energy shortage.

Under the 42-month contract, Fluor Utah will concentrate on qualities and quantities of coal required for the large conversion complexes expected in the mid-1980's.

The firm will analyze existing and projected mining methods. The information will be formulated into an engineering report and a computerized model to forecast the effects of mine design, equipment and technology being changed to meet expanded demand and environmental standards. The forecasts will be used to develop the design for new mining and reclamation systems.

Here is the background:

Coal can be converted to both oil and gas by somewhat similar processes. A gas process inevitably produces some oil and all liquid processes produce some gas. By studying a number of processes in combination with others, OCR has evolved the concept of a potential coal-oil-gas (COG) refinery. It would be a combination of several conversion processes.

From such a concept, OCR envisions future regional resource development plant complexes that would employ a wide variety of processes, including extraction, separation, gasification, hydrogenation, purification, processing, and power generation.

The Fluor Utah contract, as well as other similar studies, involves the concept of planning for the best end use of land in an entire area or watershed-not just the reclamation of mined land. Such end use planning includes social and economic impacts, evironmental factors, watershed and water table protection, land fertility increases, improvement of living standards, creation of parks, lakes and other recreational facilities-all through proper extraction and utilization of coal

resources.

Joining Fluor Utah on the project will be Bonner & Moore Associates, Inc., computing and management sciences consultants.

EXHIBIT 4

CONTRIBUTIONS TO THE PRESIDENT'S RE-ELECTION CAMPAIGN BY INDIVIDUALS WHOSE COMPANIES ARE REPRESENTED ON NIPCC1

Sources of information:

(1) "GAO Alphabetical Listing of 1972 Presidential Campaign Receipts," (As of 31 August 1972). This report listed donations of $25 or greater from April 7, 1972 to August 31, 1972.

(2) "Common Cause Analysis of Contributors to the Finance Committee to Re-elect the President," (as revised: 1 November 1973). This report lists donations of $1000 or more during the period from January 1, 1971 to April 6, 1972.

Conclusion:

Individuals whose companies are represented on the National Industrial Pollution Control Council (NIPCC) contributed at least $1,115,478 to the President's re-election campaign.

1 Prepared by Jack L. Schenendorf, 2d year law student, Georgetown University Law Center.

These individuals can be divided into two groups: A.) Individuals who are members of NIPCC and B.) Individuals whose companies are represented on NIPCC.

Group A.-According to the GAO and Common Cause sources, Group A, comprised of individuals who are members of NIPCC, contributed at least $361,492 to the President's re-election campaign (see Attachment No. 1). Included are donations of $1000 or greater from 1/1/71 to 4/6/72 (Common Cause) and $25 or greater from 4/7/72 to 8/31/72 (GAO). Donations made after September 1, 1972 are not included.

Group B.-According to the Common Cause report, Group B, comprised of individuals whose companies are represented on NIPCC, contributed at least $753,986 to the President's re-election campaign (see Attachment No. 2). Included are donations of $5000 or greater from 1/1/71 to 4/6/72. Donations made after April 7, 1972 are not included.

ATTACHMENT NO. 1

GROUP A.-INDIVIDUALS WHO ARE MEMBERS OF NIPCC

Individual, company, and position on NIPCC

Atkins, Orin E., Ashland Oil, Inc., member, Oil and Gas Subcouncil.
Barnes, Earle B., Dow Chemical, member, Chemicals Subcouncil

Bechtel, Stephen, D., Jr., Bechtel Corp., chairman, Process and Systems Engineering Subcouncil.
Biaggini, Benjamin F., Jr., Southern Pacific Co., chairman, Railroads and Rail Equipment
Subcouncil.

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Boyer, Willis B., Republic Steel Corp., vice chairman, Steel Subcouncil.

Burnham, D. C., Westinghouse Electric Corp., chairman, Electric and Nuclear Subcouncil.
Busch, August A., Anheuser-Busch, Inc., member, Beverages Subcouncil..

Calvert, F. Allen, Jr., Calvert Exploration Co., member, Petroleum and Gas Subcouncil.

Carroll, Thomas S., Lever Brothers Co., member, Detergents Subcouncil..

Clapp, Norton, Weyerhaeuser Co., chairman, Wood Products Subcouncil

2,500 CC

13,317 CC

2,250 GAO

7,000 GAO

Cole, E. N., General Motors Corp., chairman, Automotive Subcouncil..
Cort, Stewart S., Bethlehem Steel Corp., member, Steel Subcouncil.

Cramer, Glenn A., Trans International Airlines, member, Airlines and Aircraft Subcouncil.
Cross, Bert S., 3 M Corp., chairman, NIPCC.

DeYoung, Russell, Goodyear Tire & Rubber Co., chairman, Rubber Subcouncil.

Dobbins, Cris, Ideal Basic Industries, Inc., chairman, Building Materials Subcouncil.

Evinrude, Ralph, Outboard Marine Corp., chairman, Leisure Subcouncil..

Firestone, Leonard K., Firestone Tire & Rubber Co., member, Rubber Subcouncil..

Fisher, John W., Ball Corp., member, Containers: Glass and Plastic Subcouncil.

Gerber, Daniel F., Gerber Foods Co., member, Food: Dairy, Fish and Other Subcouncil..
Gott, Edwin H., United States Steel Corp., member, Steel Subcouncil.

Humphrey, Gilbert W., Hanna Mining Co., vice chairman, Mining and Nonferrous Metals Sub-
council.

Jaicks, Frederick G., Inland Steel Co., member, Steel Subcouncil

Jones, Thomas V., Northrop Corp., member, Airlines and Aircraft Subcouncil.

Kendall, Donald M., Pepsico, Inc., chairman, Beverages Subcouncil.

Leonard, Alvin T., Superior Plating, Inc., member, General Manufacturing Subcouncil..
Luke, David L., Westvaco Corp., c airman, Paper Subcouncil.

McCoy, C. B., E. I. du Pont de Nemours & Co. vice chairman, Chemicals Subcouncil.

Milliken, Frank R., Kennecott Copper Corp., chairman, Mining and Nonferrous Metals Subcouncil.
Osborne W. Irving, Jr., Pullman, Inc., member, Railroads and Pail Equipment Subcouncil..........
Riccardo, John J., Chrysler Corp., member, Automotive Subcouncil..

Siverd, Clifford D., American Cyanamid Co., chairman, Fertilizers and Agricultural Chemicals
Subcouncil.

Skouras, Spyros S., Grace Prudential Lines, member, Shipping Subcouncil.
Stewart, L. L., Bohemia Lumber Co., Inc., member, Wood Products Subcouncil..
Strichman, George A., Colt Industries, Inc., member, Heavy Equipment Subcouncil
Swalling, Albert C., Swalling Construction Co., Inc., member, Construction Subcouncil.

van der Eb, Henry G., Container Corp. of America, member, Containers: Paper Subcouncil. Warner, Rawleigh, Jr., Mobil Oil Corp., member, Petroleum and Gas Subcouncil..

1 Cash/returned.

2,500 GAO 2,500 CC 3,200 CC

2,500 CC 500 GAO 2,000 CC 5,000 CC 1,000 GAO 1,000 CC 4,500 GAO 100,000 CC

1,000 CC

1,000 CC

1,000 CC

2, 500 GAO.

2,500 CC 40,000 CC 28,000 GAO 2,000 GAU 2,000 CC 4,000 CC

1,500 GA

4,725 CC

1,000 CC

1,000 CC

1,000 GAO

300 GAO 3,000 GAO

200 GAO

500 GAO 1,000 GAO

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