60–3

Conversation No. 60-3

Date: June 10, 1971
Time: Unknown between 11:01 am and 11:59 pm
Location: Cabinet Room

Benjamin F. Biaggini met with Tom Rice, Jack Fishwick, Graham Claytor, William H. Moore,
Hays Watkins, William Johnson, Frank Barnette, Louis Menk, John Reed, Stephen Ailes, John
A. Volpe, Egil (“Bud”) Krogh, Jr., Charles Clapp, and George Crawford

Secretary of Defense

Service Secretaries
-Army, Navy, Air Force

[General conversation/Unintelligible]

The President and Peter M. Flanigan entered at 11:01 am

Introductions

[General conversation/Unintelligible]

White House conversation
-Railroad problems
-Meeting with railroad executives

Railroads in United States
-Economic role
-Government role
-Interstate Commerce Commission [ICC]
-History
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-Airline meeting
-Relevant problems
-Benefits of meeting with railroad executives
-Problems
-Regulation
-Finance
-Labor
-Make-up of leadership
-Capitalization
-Rate of return
-Compared with steel industry
-Labor problem
-Operation costs
-Legislation
-Analysis of problems by experts
-Results
-Competition with highways
-Volpe’s forecast
-Role of railroads in economy
-Need for expansion to meet growing need
-Public funds
-Economic use
-Quick consideration of needs
-Legislative impact
-Disparity of views
-Congressional action
-Endorsement of goals
-Labor situation
-The President’s meeting with labor leaders
-Productivity problem
-Featherbedding
-Steel strike of 1959
-Background
-Roger M. Blough
-James P. Mitchell
-David MacDonald
-Technology versus labor
-Emergency Board
-Wage increases
-Conditions
-Committee formation
-Goals
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-Willie J. Usery, Jr.
-Effort on agreement
-Charlie Lewen [sp?]
-New labor agreement
-Compared with George P. Shultz and meatpackers
-Effect on Penn Central
-Emergency Board use
-Union view
-United Transportation Union [UTU]
-Strike situation
-Drawbacks
-UTU/management combined effort
-Combined effort
-Productivity progress
-Productivity problem
-Government takeover
-Effect on industry
-New York situation
-Railroad approach
-Use by other sectors
-Public employee strikes
-Foreign experiences
-Administration bill
-Public employee strikes
-Other industry strikes
-Dispute-solving machinery
-Areas other than labor
-Illinois Central/General Motors connection
-Status
-Opposition by Justice Department
-Justice action
-John N. Mitchell
-Background
-Obstacles of regulatory agencies
-Volpe’s program
-Labor problem
-Congressional obstacles
-Taft-Hartley passage
-Public view
-Usery’s effort
-Taft-Hartley drafting
-The President’s role
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-Busting unions
-Lead of transportation industry
-Charles J. Chamberlain’s role
-Air traffic controllers’ strike
-Effect
-Union leaders
-Relationship with the President
-Regulatory problems
-Political problems
-Eastern railroad situations
-Immediate needs
-Finance
-Regulatory
-Penn Central
-Congressional responsibility
-Public support
-Congressional obstacles
-Rate problems
-Administration strategy
-Need for action
-Deregulation
-Antitrust problem
-Input from railroads on congressional efforts
-Benefits
-Trucking, shipping, and railroad views
-Rate formulation
-Need for uniform rate structure
-Views of trucking, shipping, and railroads
-Maintenance in legislation
-Justice Department intervention
-Merger cases
-The President’s role
-Airline negotiations
-Railroad negotiations
-Regulation
-Independence of agencies
-Antitrust
-Power of administration
-Department of Transportation view
-Paul Cherington
-Department of Justice view
-Conflicting signals
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-Monopoly perception by individuals
-Railroad cooperation with other industries
-Taxes
-Federal income tax
-Amortization
-Administrative remedies
-Opposition
-New York Times’ view
-Tax deferral
-Details of tax reform
-Treasury Department role
-Other tax remedies
-John B. Connally’s view toward business
-Unity of railroad industry
-Taxes
-Effect on reinvestment
-Investment needs
-Safety rules
-Financing
-Borrowing problems
-Long term future of industry
-Freight versus passenger service
-Penn Central outlook
-Extent of rail system
-Extent of rail use
-Competition with airplanes and cars
-Appreciation of the President’s help
-Discriminatory Tax Act
-Outlook
-Other legislation
-Appreciation of Flanigan and Charles D. Baker
-Introduction of legislation
-Penn Central
-Railroad legislation
-Administration focus
-Future of railroad
-Need for capital
-Government financing
-Lockheed Aircraft Corporation
-Job consideration
-Supersonic Transport [SST]
-Competition with Soviets
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-McDonnell-Douglas Corporation
-New York Times’ criticism
-Political problems
-Perception of railroads by public and Congress
-George A. Smathers
-Self-generation of capital
-Edward H. Harriman
-Deregulation
-Labor
-Deprivation of opportunity
-Administration action
-Informing Connally
-Tax problem
-Edwin S. Cohen’s role
-Volpe
-Effort
-Congressional effort
-Rapidity of change
-Airline problems
-DC-3s
-Need for diverse transportation
-Perception of railroads
-Dedication of railroad people
-The President’s experience on railroads
-Sam Snead
-William P. Rogers
-San Clemente
-California stations
-Franklin D. Roosevelt’s travels

Presentation of gifts by the President
-Gifts for wives

The President left at 12:21 pm

[General conversation/Unintelligible]

Biaggini, et al. left at an unknown time before 11:59 pm
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)