functions and purposes of the corporation or if no such successor corporation is so designated, all such remaining property and assets shall be distributed to the United States Government to be used in furtherance of the general purposes for which the corporation is organized. Eighth The address, including street and number, of its initial registered office is Suite 1101, 815 Connecticut Avenue, N.W., Washington, D.C., 20006, and the name of its initial registered agent at such address is Alexander B. Hawes. Ninth: The number of directors constituting the initial board of directors is fifteen. The names and address, including street and number, of the persons who are to serve as the initial directors until the first annual meeting or until their successors be elected and qualified are: NAME Henry Ford II J. Paul Austin Leo C. Beebe James W. Cook Harold S. Geneen Walter A. Haas, Jr. John D. Harper James S. McDonnell George W. Miller Charles F. Myers, Jr. A. L. Nickerson Quentin Reynolds John H. Sengstacke Clyde Skeen Roger P. Sonnabend ADDRESS Chairman, Ford Motor Company Detroit, Michigan 48121 President, The Coca-Cola Company Atlanta, Georgia 30301 Vice President, Ford of Canada, Ltd. President, Illinois Bell Telephone 225 W. Randolph Street Chairman of the Board, International Telephone & Telegraph Company 320 Park Avenue New York, New York 10022 President, Levi Strauss & Co. 98 Battery Street San Francisco, California 94111 President, Chief Executive Officer and Chairman of Executive Committee, Aluminum Company of America 1501 Alcoa Building Pittsburgh, Pennsylvania 15219 Chairman of the Board, McDonnell Douglas Corporation Lambert-St. Louis Municipal Airport St. Louis, Missouri 63166 President, Textron Inc. 10 Dorrance Street Providence, Rhode Island 02903 President, Burlington Industries, Inc. 301 North Engene Street Greensboro, North Carolina 27401 Chairman, Mobil Oil Corporation 150 E. 42nd Street New York, New York 10017 President, Safeway Stores, Inc. Oakland, California 94604 President and General Manager, Robert S. Abbott Publishing Co. Chicago, Illinois 60616 President, Ling-Temco-Vought, Inc. Dallas, Texas 75222 Tenth: The name and address, including street and number, of each incorporator is: I, Helen Faust, a Notary Public, hereby certify that on the 8th day of February, 1968, personally appeared before me Marx Leva, Craig Mathews, and Markham Ball, who signed the foregoing document as incorporators, and that the statements therein contained are true. HELEN FAUST, My Commission Expires May 14, 1971. Notary Public. [Excerpt From Report of the National Advisory Commission on Civil Disorders] ENCOURAGING BUSINESS OWNERSHIP IN THE GHETTO We believe it is important to give special encouragement to Negro ownership of business in ghetto areas. The disadvantaged need help in obtaining managerial experience and in creating for themselves a stake in the economic community. The advantages of Negro entrepreneurship also include self-employment and jobs for others. Existing Small Business Administration equity and operating loan programs, under which almost 3,500 loans were made during fiscal year 1967, should be substantially expanded in amount, extended to higher risk ventures, and promoted widely through offices in the ghetto. Loans under Small Business Administration guarantees, which are now authorized, should be actively encouraged among local lending institutions. Counseling and managerial assistance should also be provided. The new Department of Commerce program under which Negro small businessmen are assisted in creating associations for pooling purchasing power and sharing experience, should be expanded and consolidated with the Small Business Administration loan program. The Interracial Council for Business Opportunity and other private efforts to provide counseling by successful businessmen outside the ghetto should be supported and enlarged. Mr. LINDSAY. Before leaving the subject of a municipal corporation, it is well to point out that a municipal corporation would give employers a form of clearinghouse for personnel recruitment. The business community would play a major role in the corporation and thus jobseekers would stand a better chance of securing meaningful employment. With job development under the guidance of men from the private sector, familiar with the needs of the private sector, potential workers could be drawn closer to potential employers. A municipal job development corporation could Develop a technically skilled staff to work systematically with trade group companies and labor unions to enable them to revise entry requirements, restructure job lines, and create new ladders. Arrange for the necessary supportive services and prevocational training which employers were unable to provide directly. Enter into contracts with employers to provide them with the extra costs of training the hard-core unemployed. Serve as a job-bank, listing all job opportunities for a given area, and with access to the resources of other comparable corporations. I recommend that the legislation be amended so as to provide funds for the organization and the operation of such locally based job development corporations. Senator CLARK. Mr. Mayor, I'm not too sure that I agree with you on that. I'll tell you the reason I'm skeptical. I'm not adverse to it, but I'm skeptical. I don't think there's any magic in the corporate form of organization. It's played a terrific part in the development of our country. As a matter of fact, I made my living largely as being an attorney for corporations for a good many years, but there's no magic in the corporation. I think our real problem is a lack of skilled administrative manpower, and I don't care whether it's a partnership, an individual proprietorship, or Government bureaucracy. I think the guts of the thing is not whether you've got a board of directors and a set of by-laws. The important thing is where are you going to get the people to do a job? Would you care to comment on that? Mr. LINDSAY. I certainly agree with you that the key to this is skilled, full-time manpower that can put this machinery together. But, nevertheless, it is highly useful to have a device, a structure, a mechanism—particularly in the large cities-to which the private sector, corporations, can turn for guidance. Senator CLARK. Who do they turn to; they turn to a flesh and blood human individual with pants and a coat and a shirt. They don't turn to a set of bylaws. Mr. LINDSAY. Well, the urban coalition in New York CitySenator CLARK. I've got a corporation. Mr. LINDSAY (continuing). Could in itself provide this service perhaps, but it may find it more useful to spin off a section of it to the corporate device. Senator CLARK. It may well be true. Mr. LINDSAY. The coalition itself is now being funded. Mr. Saul Wallen, whom you probably know, is acquainted with manpower and labor problems and has left his law practice to take on the fulltime job of serving the urban coalition, staffing up with manpower experts, including persons from the neighborhoods. Senator CLARK. You would agree though Mr. LINDSAY. If they find that they should spin off a section of this for unity reasons, it may be a wise thing to do. And, incidentally, in New York City the urban coalition is now a corporation; it is incorporated. Senator CLARK. Now, you would agree, would you not, that as mayor, one of your most difficult problems is to acquire skilled manpower in many different areas. Mr. LINDSAY. Yes, sir. Senator CLARK. You'll also agree that as mayor your problems of administrative organization are difficult indeed in view of the complexity of the framework of government that you inherited. Mr. LINDSAY. Yes, sir. Senator CLARK. You would agree also that your third major problem is that you haven't got enough money. Mr. LINDSAY. Yes, sir. Senator CLARK. I think those are the three problems we ought to look at. Mr. LINDSAY. Correct. Senator JAVITS. Now, Mr. Mayor, if I may Mr. Chairman, isn't it a fact that in your own searches for personnel, you have found that it is easier to get high-level personnel to enter into the nongovernmental field of pubic service than to enter into the governmental field, in terms of motivation, and in terms of the flexibility with which they can be employed? Mr. LINDSAY. Precisely true. Top-level recruitment in the city itself is difficult. As you know, I've gone around the country to see if I could attract the best, such as Budget Director Fred Hayes from the U.S. Bureau of the Budget, OEO, and Federal Housing. Men of this caliber are very difficult to find, and there's great competition for their services. Now, secondly, we've been reorganizing the whole charter of New York City to restructure the government. Instead of having 50 or 60 departments or agencies, we have restructured it now into 10 administrations modeled after the Federal Cabinet, more or less. This is designed to give us the tools so that we can introduce modern systems, particularly in the area of the use of the budget and program planning. Finally, we have also come to the conclusion that no matter how fast and hard we move on the inside to restructure the government, that will not be enough. Therefore we are now grouping around the municipal government the kind of outside agencies that Senator Javits is talking about. The most recent is the Rand Corp., which is now establishing a base in New York in order to attach its electrodes to four of these 10 big administrations. Senator CLARK. Rand Corporation? Mr. LINDSAY. Yes, sir. Of California. Senator CLARK. You've got to move into a military program? Mr. LINDSAY. They are going to assist the four institutions of government on a full-time basis, by contract. Senator CLARK. I hope you got the permission of the Pentagon before you hired him. Mr. LINDSAY. To meet the problems of the cities requires, in effect, a quasi-military effort. Senator CLARK. I just hope you got the permission of the Pentagon before you hired him." Mr. LINDSAY. Well, if Rand can produce for us the same kind of cost effectiveness that they produced for the Air Force, in our police and fire departments Senator CLARK. Sure. Mr. LINDSAY. (continuing). It will be very valuable. Senator CLARK. I agree with you. Mr. LINDSAY. Rand is also going to apply its services with, in effect, a full-time staff in New York, but not paid for by the city of New York directly. It will be funded by the city government by contract, and I hope funded by some foundation assistance also. But it will give the flexibility to this talent, which Rand either has now or is recruiting, to go into municipal service without getting all tangled up as an employee of the system. There are several other Rand-type organizations that are now working with us on a full-time basis on other aspects-recreation and parks, for example-where we find that this kind of science is needed if we're going to make municipal government modern. UNDEREMPLOYMENTS Now, let me turn for just a moment to underemployment. And I very much wish to stress this subject today. If I can return for just a moment to the Presidential Commission's report, one of the most significant findings was the negative impact that low-status and lowpaying jobs have had on the lives of many Negroes. Negroes are concentrated in the lowest end of the occupational scale, in jobs usually characterized by poor wages, heavy work, low esteem, and little opportunity for advancement. The percentage of Negroes in two of the lowest paying job categories, clericals and unskilled workers, is almost three times the percentage of whites employed in each of these areas. At the other end of the spectrum, the percentage of whites in the highest job levels, as managers and professionals, is three times the percentage of Negroes so employed. In the words of the Commission report: "This concentration of Negroes in the lowest paying, lowest skilled positions, is the single most important source of poverty among Negroes. It is even more important than unemployment." În support of this argument, the Commission provided the following hypothetical calculation: if the percentage of Negroes unemployed was reduced to that of white unemployed, 3.3 percent, the income gain for nonwhites would total about $1.5 billion a year. However, if the nonwhite men currently employed were upgraded so that they had the same occupational distribution and incomes as all men in the labor force considered together, it would produce about $4.8 billion in additional earnings for the Negro community. Senator CLARK. Which in turn would result in an income tax take by the Federal Government sufficient to substantially aid in the financing of the program, would it not? Mr. LINDSAY. A big impact. I urge the subcommittee to consider programs that deal with the problem of underemployment. I suggest that this legislation be amended to provide Federal support for the occupational advancement of those currently in low-level positions, as well as for the creation of new jobs. A job advancement program will be difficult to write. It will require sophisticated, innovative mechanisms to deal with such factors as discrimination in promotion policies. Because of the complexity of the task involved, employers, both public and private, should be brought into the legislative process to render advice and give guidance. They might consider, with this subcommittee, such policies as: Federal subsidies for training workers on the job for higher positions: training supervisors to help subordinates move up; and pro |