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Bankruptcy Court is not a bad option for car makers
by: cvllelaw
Tue Nov 18, 2008 at 09:21:09 AM EST
But I think the best option for carmakers -- and for the federal government -- is to let GM go into Chapter 11 bankruptcy. Robert Reich had a good blog entry on this last week:
So why, exactly, is the Treasury substituting government bailouts for chapter 11? Even if you assume Wall Street's major banks and insurance giant AIG are so important to the national and global economy that they can't be allowed to fail, that doesn't mean they have to be bailed out. They could be reorganized under bankruptcy protection. True, their creditors, shareholders, and executives would take bigger hits than they're taking now that taxpayers are bailing them out. But they're the ones who took the risk. We didn't.
The Treasury seems to have lost sight of its real client. Its client is not the creditors, shareholders, or executives of any of these firms. Its sole client is the American people.
It would be different if Main Street was getting something out of all this. But credit still isn't flowing to small businesses or distressed homeowners, and unemployment is skyrocketing.
There's more at stake for Main Street when it comes to General Motors and other automakers now teetering on the edge of bankruptcy, because two and a half million households depend directly or indirectly on them for their paychecks. But the best way to protect all these people is not to pay off the automakers' creditors, shareholders, and executives, with no strings attached. Recall that when the government bailed out Chrysler in the early 1980s, a third of its employees lost their jobs.
In exchange for government aid, the Big Three's creditors, shareholders, and executives should be required to accept losses as large as they'd endure under chapter 11, and the UAW should agree to some across-the-board wage and benefit cuts. The resulting savings, combined with the bailout, should be enough to allow the Big Three to shift production to more fuel efficient cars while keeping almost all its current workforce employed. Ideally, major parts suppliers would adhere to the same conditions.
Remember: The underlying goal is to help Americans through this crisis and come out of it with a stronger economy.
And what a tragedy it would be if the government spends so much on these bailouts there isn't enough money left for the next administration to help average people get affordable health insurance, send their kids to good schools, and find good jobs -- including jobs rebuilding the nation's crumbling infrastructure and finding alternative sources of energy.
It's not the big guys who need rescuing. It's the small. Right now, the government has its priorities upside down.
And that's where more and more commentators come down. Just take this sampling from the New York Times today...
One of the best summaries of why Chapter 11 would be best is found in http://www.nytimes.com/2008/11... where Andrew Sorkin starts by noting that the $10 billion that GM wants would be gone by February at current rates. He recommends a bankruptcy in which a scaled-down GM merges with a scaled-down Chrysler, the two companies discard brands, coming down to Chevrolet, Cadillac, Buick, Jeep, and some version of Chevy and GMC and Dodge RAM that would produce a line of pickups. Thousands of auto workers would lose their jobs, but thousands more would keep them. Auto workers' average compensation package -- including health care and retirement -- is presently $70 an hour. That translates into $140,000 a year, take-home. That would get scaled back -- something that can be done in Bankruptcy Court but not outside of it. The executives who drove the companies into the ditch would have to find another business to fail in; they could be given the boot in Bankruptcy Court. Shareholders would lose their equity, but that's how markets work.
The primary argument that is being used against forcing GM into bankruptcy is that "Chapter 11 reorganization inevitably leads to Chapter 7 liquidation." Sales would plummet, because who wants to buy a car under a warranty that seems likely to outlast the company giving the warranty?
The subtext is -- don't put us in bankruptcy because the Bankruptcy Court has the power to:
** Restructure labor contracts, including the best health-care plan in the country
** Eliminate or greatly reduce pension obligations
** Restructure contracts with suppliers and dealerships
** Force creditors to accept pennies on the dollar for the debts
** Eliminate what shareholder equity remains
In other words, no one wants bankruptcy because it's going to hurt. Which is really kind of the idea, isn't it?
In http://www.nytimes.com/2008/11... , the author reflects on the attempt by the government of Great Britain to prop up the failing British Leyland. The British government spent $16.5 billion (inflation adjusted) and still the company burned through the money and went into bankruptcy in 2005. By then the business was too far gone, and despite earlier protestations that British Leyland was too important to the British economy (or psyche) to be allowed to fail, it not only failed, but it was split up and its car lines sold to other companies. Jaguar and Land Rover were sold to an Indian consortium, and MG was sold to the Chinese, and British Leyland was no more. The lessons? Don't throw good money after bad. No business is "too big to fail." Life goes on.
In http://www.nytimes.com/2008/11... , the author notes that the estimates of economic doom and gloom should one of the Big Three fail do not take into account the reality that there are other car manufacturers in the United States; Honda and Toyota and Nissan, for example, all make cars in this country, and if they had the opportunity to sell more, many of those parts makers and tire sellers and dealerships now associated with GM would probably be able to re-associate with one of those companies.
Auto executives are testifying today and tomorrow before Congressional committees considering their bailout proposal. It should be interesting.
November 18, 1903 -- Hay-Bunau Varilla Treaty signed
by: cvllelaw
Tue Nov 18, 2008 at 08:00:00 AM EST
The Hay-Bunau Varilla Treaty was signed on November 18, 1903 (two weeks after Panama's independence from Colombia). Phillipe Bunau Varilla went to Washington, D.C. and New York City to negotiate the terms with several U.S. officials, most prominently, Secretary of State John Hay. The two men negotiated the terms of sale for the building of a Panama Canal and for a Panama Canal Zone surrounding the canal. No Panamanians signed the treaty although Bunau Varilla was present as the Panamanian minister -- despite being a French citizen.
Bunau Varilla had originally become involved in the building of the Panama Canal under the same man that built the Suez Canal, Ferdinand de Lesseps. After the collapse of the de Lesseps efforts to build the Panama Canal, Bunau Varilla became an important shareholder of the Compagnie Nouvelle du Canal de Panama, which still had the concession, as well as certain valuable assets, for the building of a canal in Panama. As part of the Hay-Bunau Varilla negotiations, the U.S. bought the shares and assets of the Compagnie Nouvelle du Canal de Panama for US$40 million.
The Hay-Bunau Varilla Treaty is also called The Treaty No Panamanian Signed, though Panama later agreed to the terms including: the United States was to receive rights to a canal zone which was to extend five miles on either side of the canal route in perpetuity; Panama was to receive a payment from US up to $10 million and an annual rental payments of $250,000.
This treaty was a source of conflict between Panama and the United States since its creation, that reached its peak on the January 9, 1964 riots over sovereignty of the Panama Canal Zone. The riot started after a Panamanian flag was torn during conflict between Panamanian students and Canal Zone Police officers, over the right of the Panamanian flag to be flown alongside the U.S. flag. U.S. Army units became involved in suppressing the violence after the Canal Zone Police were overwhelmed. After three days of fighting, about 22 Panamanians and four U.S. solders were killed. This day is known in Panama as Martyrs' Day.
The events of Martyrs' Day are considered to be a significant factor in the U.S. decision to negotiate the 1977 Torrijos-Carter Treaties, which finally abolished the Hay-Bunau Varilla Treaty and allowed the gradual transfer of control of the Canal Zone to Panama and the handover of the full control of the Panama Canal on December 31, 1999.
They don't have the clout they once did -- http://www.nytimes.com/2008/11...
How many jobs are tied up with the auto industry? (Not as many as they want you to believe) -- http://economix.blogs.nytimes....
GM needs to file for bankruptcy to get control of themselves again -- http://www.nytimes.com/2008/11...
George Will agrees -- http://www.washingtonpost.com/...
Paulson leaving a legacy of intervention that was not thought to be likely -- http://www.washingtonpost.com/...
Some abortion foes are looking to reduce, not end, abortions -- http://www.washingtonpost.com/...
Justice Stevens is not talking retirement just yet -- http://www.washingtonpost.com/...
Iraqi government is firing all the Inspectors General who were going to keep a lid on corruption -- http://www.nytimes.com/2008/11...
Websites that dig for news are attracting people away from reading newspapers -- http://www.nytimes.com/2008/11...
Obama's staff to have strong personalities -- http://www.nytimes.com/2008/11...
And lots of experience on Capitol Hill -- http://www.washingtonpost.com/...
And everyone is getting a thorough vetting -- http://www.washingtonpost.com/...
Bill Clinton being vetted raises some problems -- http://www.nytimes.com/2008/11...
http://www.nytimes.com/2008/11...
Obama will have to jump right into the middle of domestic spying issues -- http://www.nytimes.com/2008/11...
Obama should be channeling FDR, not Lincoln -- http://www.washingtonpost.com/...
Which GOP will take control? -- http://www.washingtonpost.com/...
The focus is on the Senate races in Minnesota, Alaska and Georgia -- http://thecaucus.blogs.nytimes...
http://voices.washingtonpost.c...
Anybody have Inauguration tickets? -- http://thecaucus.blogs.nytimes...
As many as 4 million expected on Washington Mall on January 20 -- http://www.washingtonpost.com/...
Huckabee's new book takes out after Romney -- http://thecaucus.blogs.nytimes...
NYT calls for honesty in deciding on support for ethanol -- http://www.nytimes.com/2008/11...
The formerly middle class -- http://www.nytimes.com/2008/11...
Bush political appointees are "burrowing" into permanent civil service jobs -- http://www.washingtonpost.com/...
We need an investigation and report on torture, rendition, secret jails, etc. --
http://www.washingtonpost.com/...
Following Tom Perriello on Election Day, through 450 miles -- http://www.readthehook.com/sto...
UVA's efforts to get sexual assault victims not to talk about in-school disciplinary proceedings violates federal law -- http://www.readthehook.com/blo...
NYT says "Pardon the Norfolk Four" -- http://www.nytimes.com/2008/11...
A biodiesel powered Benz -- http://www.dailyprogress.com/c...
State governments having to cut back sharply -- http://www.nytimes.com/2008/11...
Samuelson votes for bailing out the auto industry -- http://www.washingtonpost.com/...
Why the auto industry bailout is essential -- http://www.washingtonpost.com/...
Obama needs to look at China right away -- http://www.washingtonpost.com/...
If Obama can't solve the international financial mess, he should enlarge it -- http://www.washingtonpost.com/...
Will Obama support reformers in the Middle East? -- http://www.washingtonpost.com/...
Federal hearing today on McCain's suit concerning counting late-arriving military absentee ballots -- http://www.inrich.com/cva/ric/...
Virginia turnout was high, but just barely -- http://www.inrich.com/cva/ric/...
Health Care Watch; do we go for big changes or small? -- http://campaignstops.blogs.nyt...
Roanoke Times votes for being bold -- http://www.roanoke.com/editori...
Phil Gramm unswerving in his loyalty to a failed ideology -- http://www.nytimes.com/2008/11...
William Kristol, backing off neocon economics (sort of) -- http://www.nytimes.com/2008/11...
Stanley Fish not a fan of Larry Summers for Treasury -- http://fish.blogs.nytimes.com/...
Vetting is now extending to Bill Clinton, suggesting Hillary really is in the running -- http://www.nytimes.com/2008/11...
http://www.washingtonpost.com/...
Obama vetting is going overboard -- http://www.nytimes.com/2008/11...
Schwarzenegger buying Republican orthodoxy that the fault of the bubble was Fannie and Freddie, forcing banks to make bad loans -- http://krugman.blogs.nytimes.com/
Obama wooed government workers -- http://www.washingtonpost.com/...
Obama urged to work on improving federal workers' morale -- http://www.washingtonpost.com/...
And FAA workers want labor contract -- http://www.washingtonpost.com/...
Who will run DHS is a big concern -- http://www.washingtonpost.com/...
An overview of the Virginia Governor's race -- http://www.dailyprogress.com/c...
Albemarle's Lauren Brie Harding, back from America's Top Models (she's the daughter of the elected sheriff; that's why it's on a political blog) -- http://www.roanoke.com/extra/w...
November 17, 1973 -- Nixon tells AP, "I am not a crook"
by: cvllelaw
Mon Nov 17, 2008 at 08:00:00 AM EST
Nixon was also the center of stories alleging that milk producers had made large campaign contributions in return for a high milk support price, and allegations had surfaced that when International Telephone and Telegraph gave a donation of $400,000 to the Republican National Committee to put on the 1972 Republican National Convention, that was a payoff for getting the Justice Department to settle an antitrust suit with ITT.
After a steady month of bad news stories from the Washington Post and the New York Times, President Nixon traveled to Orlando, Florida, on November 17, 1973, and held a press conference at a meeting of 400 managing editors of the Associated Press. It is worth noting that by giving the press conference at the AP meeting, he would not face questions from people who covered him every day -- Helen Thomas, Dan Rather, etc. -- who might be expected to ask him tougher questions than the AP managing editors. He was right -- the editors never asked him about ITT, or about the milk producers, two topics that he seemed to want to talk about himself (at the end of the press conference, Nixon actually said something to the effect of: "You have not asked me about the milk producers or ITT; let me go ahead and talk about them anyway." He clearly was primed to answer such questions.
The high point of the press conference came when Nixon declared, "I am not a crook," in defending himself against allegations that he was involved in the Watergate affair.
Nixon -- whether subconsciously or consciously -- seemed to regard the major thrust of the controversy as financial.
Over and over, it was apparent that he wanted to talk about possible financial scandals rather than the Watergate scandal. But the editors wanted to talk about Watergate, not about mil producers.
Summing up,
Regarding the June 20, 1972, brief telephone conversation with former Attorney General John N. Mitchell, Mr. Nixon said no tape was made because the call was from the family quarters in the White House. He said he called to cheer up Mitchell because Mitchell was chagrined because he had not properly controlled those under him -- in the re-election campaign, which he once headed, and the burglary was embarrassing the administration.
Mr. Nixon said he was very greatly disappointed that the tapes of the Mitchell conversation and the April 15, 1973, conversation with former counsel John W. Dean III did not exist.
He was told first on Sept. 29 or 30 this year that the tapes in question might not exist, the President said. After a search, it was determined on Oct. 26 that they did not exist, he said.
He said he dictated a report on the Mitchell conversation, which does exist, and has notes on the Dean conversation which he has turned over to U.S. District Court Judge John J. Sirica.
. . . .
"I am the first President since Harry Truman who hasn't owned any stock" since taking office, Mr. Nixon said.
When he left office as Vice President in 1961 his net worth was $47,000, he said. "In the next eight years, I made a lot of money," he said.
Mr. Nixon said he made $250,000 from his book, "Six Crises," and earned between $100,000 and $250,000 a year practicing law.
In 1968, he said, he sold all his stock for about $300,000, his new New York condominium apartment for $300,000, and received $100,000 due him from his law firm.
"I made my mistakes," he said, "but in all of my years of public life I have never profited from public service."
Of course, his protestations that he was "not a crook" just ignited more comment on him. It was at this point that I knew that Nixon was toast, based on a very unscientific indicator.
I have always listened for the laughs when the host of the Tonight Show -- then Johnny Carson -- does a joke about a politician. Right after the "I am not a crook" comment, the laughs that Carson would get doing jokes about Nixon that built on the "I am not a crook" theme started getting MUCH bigger laughs. Before that statement, Carson would not directly impugn Nixon's honesty; after that statement, he would. And he'd get big laughs after saying "I am not a crook." I didn't know that impeachment was coming at that point, but I knew that Nixon had no political support by that point.
The Tonight Show laugh index is a valuable bit of political insight.
The bottom line was this -- the American people came to believe that if you have to go on national television to utter the words, "I am not a crook," you probably ARE a crook.
Sources:
http://www.washingtonpost.com/...
http://www.lib.berkeley.edu/MR...
http://www.usatoday.com/news/o...
His endless one-note complaints about money and contributors obscure the real story of this election: the little guys won over the big guys. Even in the wake of the MZM scandal, the big special interest PACs that have reliably propped Goode up in the past, attempted to do so again, contributing what was for him a record amount of PAC money for this election ($356,552 according to opensecrets.org).
But money was not enough.
The money that Virgil received from PACs in this election is far more than ALL of Perriello's out-of-state contributions combined. What's more, as recently as 2000, a whopping 40% of Goode's contributions came from PACs.
Election turnout not that great -- http://www.washingtonpost.com/...
Bankruptcies up sharply -- http://www.nytimes.com/2008/11...
Democrats will focus on job creation -- http://www.washingtonpost.com/...
One of Bernanke's students at Princeton remembers his macroeconomics class -- http://www.washingtonpost.com/...
Dems now control 29 Governorships -- http://www.washingtonpost.com/...
We are a center-left nation -- http://www.washingtonpost.com/...
Dahlia Lithwick on Summum and religious weirdness (every religion has some) -- http://www.washingtonpost.com/...
Iraqi cabinet agrees on timetable for withdrawal of American troops -- http://www.nytimes.com/2008/11...
http://www.washingtonpost.com/...
Why jihadists don't like Obama -- http://www.washingtonpost.com/...
Obama is going to have to lose the Blackberry -- http://www.nytimes.com/2008/11...
GOP Senators oppose auto industry bailout -- http://www.nytimes.com/2008/11...
Condoleeza Rice and three other administration officials on the world that awaits Barack Obama -- http://www.nytimes.com/2008/11...
NYT notes that the military we have now is overtaxed and not ready for the 21st Century -- http://www.nytimes.com/2008/11...
Barack sits on sidelines as Congress gears up for lameduck session --http://thecaucus.blogs.nytimes.com/2008/11/16/the-sunday-word-obama-steps-down-congress-gears-up/
And two seats will be empty -- http://www.nytimes.com/2008/11...
Obama pledges to name a Republican to the Cabinet -- http://thecaucus.blogs.nytimes...
Gates trying to help streamline the transition at Defense -- http://www.washingtonpost.com/...
Maybe Hillary will be State Department Secretary -- http://www.nytimes.com/2008/11...
Some Obamanauts aren't happy that there are so many Clintonites in the mix right now --
http://www.nytimes.com/2008/11...
Greg Craig for White House counsel -- http://voices.washingtonpost.c...
Maria Shriver on being pro-choice, not pro-abortion -- http://www.washingtonpost.com/...
Nick Kristof on the kids of this century and their desire to save the world -- http://www.nytimes.com/2008/11...
A look back at Hillary Clinton in 1992 -- http://query.nytimes.com/gst/f...
Mixed-status (immigration status, that is) families hope Obama will help -- http://www.washingtonpost.com/...
Lungren to challenge Boehner for House Minority Leader -- http://www.washingtonpost.com/...
Historic sites in Central Virginia hoping to cash in on connections with "Historic Highway" to Gettysburg -- http://www.dailyprogress.com/c...
Charlottesville, Albemarle at odds over delays in agreeing on solution to water needs -- http://www.dailyprogress.com/c...
The buzz on Michelle Obama -- http://www.inrich.com/cva/ric/...
Warner now will be playing second fiddle -- http://www.inrich.com/cva/ric/...
Danville residents try to figure out how to get to Inauguration -- http://www.godanriver.com/gdr/...
This Moment in Time: A Nelson County Resident Gives Thanks
by: Kathy Gerber
Sun Nov 16, 2008 at 06:54:38 AM EST
![[image]](http://mowser.com/img?url=http%3A%2F%2Fwww.skatha.com%2Fkath%2Fpix2008%2Fnelson%2Fimage001.jpg)
I can only attempt to express my deep gratitude to the amazing group of volunteers who worked in Roseland on Election Day: Edith, Dee, Dr. Kathleen Gentry, Reen, Lincoln, Eleanor, Judy, Rosemary, Judy, Chris, Greg and Damien. And thanks to Gordon for the amazing setup and cleanup. And to all the Nelson Dems who hit the roads knocking on doors, and last but not least to Sharon Ponton and so many others who didn't just hold down the fort - they built it.
Back in September Edith Napier Wardlaw decided that it would be a good idea to hold a rally in support of Democratic candidates at the Heritage Center in Nelson County. She was right. But Edith's work neither began nor ended with the incredibly successful rally. She worked tirelessly all day on November 4 with amazing physical endurance. Edith had hoped and planned to participate in the celebration that evening, but found herself doing something far more important. With her permission, here is Edith's letter in full. And yes, we heard her singing.
This moment in time, I thank the Lord for and will savor all the days of my life. This moment in time, I will savor it for all the yesterdays and today. This moment in time I will savor for the hope, love and possibilities it promises to the Ediths, Kathys, Greggs and the world. This moment in time, will make me a better person for all the days of my life for I am thankful that I was allowed to live to this moment in time.
![[image]](http://mowser.com/img?url=http%3A%2F%2Fupload.wikimedia.org%2Fwikipedia%2Fen%2Fthumb%2Fc%2Fc3%2FSamRayburn55.jpg%2F225px-SamRayburn55.jpg)
Samuel Taliaferro Rayburn served as Speaker of the House of Representatives for more than twice as long as any other Speaker in history. He was born in Tennessee, and his parents moved to Texas when he was 5 years old. After graduation from college, he taught school for 3 years before being elected to the Texas House of Representatives at the age of 24. While in the state assembly he studied law at the University of Texas and passed the state bar examinations in 1908. In his final two years in the Texas legislature, Rayburn was Speaker of the House, elected to that position at the age of 29.
The next year, he won election to the United States House of Representatives. He entered Congress in 1913 at the beginning of Woodrow Wilson's presidency, and served in office for more than 48 years. During this entire time, he never faced a Republican or other serious challenger for reelection. Rayburn was named to the Interstate and Foreign Commerce Committee (then, as now, the place where the business interests bring their lobbying money and campaign contributions). He quickly displayed a mastery of congressional procedures and acquired an unrivalled knowledge of its members.
The story of Sam Rayburn can, in part, be told through who his friends were. When he got to the House of Representatives, the dean of the Texas delegation was John Nance Garner, who would eventually rise to be Speaker of the House in 1931. The close friendship with Garner promoted Rayburn's career: he was campaign manager during Garner's 1932 presidential bid and an intimate associate both when Garner was Speaker (1931-33) and when he was Franklin Roosevelt's Vice-President (1933-1941).
In the Texas legislature, Rayburn had become a good friend of Sam Ealy Johnson, father of Lyndon B. Johnson. When Lyndon Johnson came to the House in 1937, Rayburn played a large part in boosting Johnson's fortunes in the House.
If Rayburn had a governing philosophy, it was to boost the fortunes of the Democratic Party and its candidates. He was above all a devoutly loyal party man. Although the national platforms of an increasingly liberal Democratic party often conflicted with the social prejudices and economic conservatism of his Texas constituents, he almost always fell into line behind his party's leaders. Over his many years in Washington, Rayburn himself introduced and worked to get through Congress a substantial amount of progressive legislation, including bills to police stock market transactions under the Securities and Exchange Commission, to provide Federal aid to rural power cooperatives under the Rural Electrification Administration, and to break up the pyramiding of public utilities companies.
Although he was personally conservative in many ways, he strongly supported Adlai Stevenson in 1952 and 1956, even though Dwight Eisenhower was much more popular in Texas. He helped the Kennedy legislative agenda by pushing through an expansion of the Rules Committee so that some younger and more progressive members could be appointed; the new members were able to outvote the very conservative Southerners on the Rules Committee, clearing the way for progressive legislation to emerge from the 87th and succeeding Congresses.
Rayburn had grown up in poverty, and was very sympathetic to legislation that would help the poor. He supported the New Deal (which accorded well with this egalitarian philosophy), and helped steer many of its legislative measures through Congress. A skillful tactician, he influenced the passage of much New Deal legislation and cowrote the bill enacting rural electrification. In foreign policy Rayburn supported Roosevelt's internationalism -- before, during, and after the Second World War.
Rayburn made an unsuccessful bid to become Speaker in 1934 and became majority leader in 1936. On September 16, 1940, at the age of 58, after the death of Speaker William Bankhead, Rayburn became Speaker of the United States House of Representatives. His career as Speaker was interrupted only twice: 1947-1948 and 1953-1954, when Republicans controlled the House. During that time, Rayburn served as Minority Leader.
His long tenure as Speaker enabled him to exert great influence over the shape of legislation, over the careers of congressmen, and over the politics of the Democratic Party.
Rayburn was instrumental in LBJ's ascent to power -- particularly LBJ's unusual and rapid rise to the position of Minority Leader in 1953, even though at the time Johnson had been in the Senate for only four years. Johnson also owed his subsequent elevation to Majority Leader to Rayburn's influence.
The period of Rayburn's speakership was also the period of southern ascendancy in Congress. Rayburn well appreciated the role of the South in the Democratic coalition. He chaired the Democratic National Conventions of 1948, 1952, and 1956 and was Lyndon Johnson's floor manager for his fellow Texan's 1960 attempt at the Democratic nomination. The leadership which he and Johnson provided in the Congress of the 1950s worked with and around both the conservative coalition and the Eisenhower presidency. Inevitably by 1960 that leadership was criticized by some elements in the Democratic Party as too conservative and accommodationist.
Although he had backed Johnson for President, Rayburn deployed his support for President Kennedy in the critical battle in 1961 to make the House Rules Committee more responsive to mainstream Democratic Party sentiment. Democratic Presidents had long depended upon him to get the votes in the House for their programs. But despite the Democratic majorities, Rayburn had to contend with a coalition between conservative Democrats and Republicans. They especially dominated the House Rules Committee, chaired by former judge Howard Smith of Virginia. As one of his last acts as Speaker, Rayburn threw his prestige behind a plan to enlarge the Rules Committee and break the conservatives' control. "Boys, are you with me or with Judge Smith?" he asked House members. Rayburn won the vote by 217 to 212, clearing the way for the liberal legislation of the administrations of John Kennedy and Lyndon Johnson in the 1960s. Although himself no enthusiast for radical civil rights legislation, this action together with his help in the passage of the 1957 and 1960 civil rights bills underlined Rayburn's essentially pragmatic approach to politics.
Rayburn's political strength derived from his ability to understand his fellow legislators and from friendships across party and generation as well from his love of the procedures and prerogatives of the House. He was not an autocratic Speaker and the authority he exercised was more personal than institutional.
"To get along, go along,' Sam Rayburn would advise new members of the House of Representatives. An extremely effective legislator himself, "Mr. Sam" was famous for hard work, fair play, and keeping his word to other members. "He's so damned sincere and dedicated to a cause and he knows his country and his job inside out so well," said another representative, "that I would feel pretty dirty to turn him down and not trust him."
In shaping legislation, Rayburn preferred working quietly in the background to being in the public spotlight. As Speaker, he won a reputation for fairness and integrity. He despised lobbyists and refused to accept any gifts or money from them. He only said, "I am not for sale," and walked away. In his years in Congress, Rayburn always insisted on paying his own expenses, even going so far as to pay for his own travel expenses when inspecting the Panama Canal when his committee was considering legislation concerning it, rather than exercising his right to have the government pay for it. When he died, his personal savings only totaled $15,000 and most of his holdings were in his family ranch.
Rayburn was well known among his colleagues for his after business hours "Board of Education" meetings in hideaway offices in the House. During these off-the-record sessions, the Speaker and powerful committee chairmen would gather for poker, bourbon, and a frank discussion of politics. Rayburn alone determined who received an invitation to these gatherings; to be invited to a "Board of Education" gathering was a high honor.
He coined the term "Sun Belt" while strongly supporting the construction of Route 66. It originally ran south from Chicago, through Oklahoma, and then turned westward from Texas to New Mexico and Arizona before ending at the beach in Santa Monica, California. Arguing in favor of the project, he stated famously that America absolutely must connect "the Frost Belt with the Sun Belt."
The phrase "A jackass can kick a barn down, but it takes a carpenter to build one," is attributed to Rayburn.
Rayburn, though a menacing and powerful presence on the House floor, was incredibly shy outside of work. He had married once, to Metze Jones, sister of Texas Congressman Marvin Jones and Rayburn's colleague, but the marriage ended quickly and no one really ever knew why. Biographer D.B. Hardeman guessed that Rayburn's work schedule and long bachelorhood, combined with the couple's differing views on alcohol, contributed to the rift. The court's divorce file in Bonham, Texas, could never be located, and Rayburn avoided speaking of his brief marriage. One of his greatest, most painful regrets was that he did not have a son, or as he put it in Robert Caro's biography of Lyndon B. Johnson, "a towheaded boy to take fishing."
Rayburn died of pancreatic cancer on November 16, 1961 at the age of 79.
Some Rayburn quotes:
"You cannot be a leader, and ask other people to follow you, unless you know how to follow, too."
"You'll never get mixed up if you simply tell the truth. Then you don't have to remember what you have said, and you never forget what you have said."
"If you want to get along, go along."
"If a man has common sense, he has all the sense there is."
"Any jackass can kick a barn down, but it takes a carpenter to build it."
"In my many years as a Representative in Congress it is my observation that the district that is best represented is the district that is wise enough to select a man of energy, intelligence, and integrity and reelects him year after year. A man of this type and character serves more efficiently and effectively the longer he is returned by his people."
The staff takes shape -- http://thecaucus.blogs.nytimes...
http://www.washingtonpost.com/...
Valerie Jarrett will have three titles -- http://www.nytimes.com/2008/11...
http://thecaucus.blogs.nytimes...
And maybe Hillary at State? -- http://www.nytimes.com/2008/11...
http://www.washingtonpost.com/...
http://voices.washingtonpost.c...
Gail Collins doesn't think Hillary for State is "transformative change" -- http://www.nytimes.com/2008/11...
Dozens of lobbyists in transition team -- http://www.nytimes.com/2008/11...
http://www.washingtonpost.com/...
Charlottesville faces $1.8 million deficit -- http://www.dailyprogress.com/c...
Charlottesville SMSA loses jobs -- http://www.dailyprogress.com/c...
Charlottesville debates cafes on the Mall -- http://www.dailyprogress.com/c...
Mary Sue Terry and the "Farm Team" -- http://www.roanoke.com/politic...
After Obama victory, test for black clergy -- http://www.nytimes.com/2008/11...
Mormons made the difference in vote on California's proposition 8 -- http://www.nytimes.com/2008/11...
Should we be saving Detroit from itself? -- http://www.nytimes.com/2008/11...
"Drop dead" is not an option -- http://www.nytimes.com/2008/11...
Neil Barofsky nominated to oversee bailout -- http://www.washingtonpost.com/...
Dick Cavett on the Wild Wordsmith from Wasilla -- http://cavett.blogs.nytimes.co...
Supreme Court shows troubling deference to military over whales -- http://www.nytimes.com/2008/11...
California plans for rising seas from global warming -- http://www.nytimes.com/2008/11...
Republicans need to go back to economic conservatism, leave social conservatism behind -- http://www.nytimes.com/2008/11...
George Will notes that we are already (under Republicans) socialist -- http://www.washingtonpost.com/...
MLK Estate threatening suit over use of images of MLK on Obama shirts, etc. -- http://www.nytimes.com/2008/11... (Going for the Bah Humbug Award for the season...)
USSC will decide whether an anti-Hillary movie qualifies as a political advertisement under federal election law -- http://www.nytimes.com/2008/11...
Broder on how complete the Republican defeat was -- http://www.washingtonpost.com/...
Eliot Spitzer on how to ground "the Street" -- http://www.washingtonpost.com/...
by: Kathy Gerber - Nov 16
2 Comments
by: Kathy Gerber - Nov 16
2 Comments
by: Gordie - Nov 14
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