Senator HUGH SCOTT. I was only going to observe if that were applied down here, a great stillness would fall upon Washington. Thank you, Mr. Chairman.

The CHAIRMAN. Thank you very much.

Thank you, Mr. Rockefeller, for being so patient today.

We had previously determined that we would try to recess at 4:30. The committee will stand in recess until 10 o'clock tomorrow morn

ing.

Thank you very much.

[Whereupon, at 4:38 p.m., the committee recessed to reconvene at 10a.m. on Tuesday, September 24, 1974.]

NOMINATION OF NELSON A. ROCKEFELLER OF NEW YORK TO BE VICE PRESIDENT OF THE UNITED STATES

TUESDAY, SEPTEMBER 24, 1974

U.S. SENATE,

COMMITTEE ON RULES AND ADMINISTRATION, Washington, D.C. The committee met, pursuant to call, at 10:03 a.m., in room 318, Russell Senate Office Building, Hon. Howard W. Cannon (chairman), presiding.

Present: Senators Cannon, Pell, Robert C. Byrd, Allen, Williams, Cook, Hugh Scott, Griffin, and Hatfield.

Staff present: William McWhorter Cochrane, staff director; Hugh Q. Alexander, chief counsel; Joseph E. O'Leary, professional staff member (minority); John P. Coder, professional staff member; Jack L. Sapp, professional staff member; Peggy Parrish, assistant chief clerk; James H. Duffy, chief counsel, Subcommittee on Privileges and Elections; James F. Schoener, minority counsel, Subcommittee on Privileges and Elections; and John K. Swearingen, staff director, Subcommittee on Computer Services.

Also present: Richard D. Casad, chief investigator; and Harry Claiborne, special consultant.

STATEMENT OF HON. HOWARD W. CANNON, CHAIRMAN,

COMMITTEE ON RULES AND ADMINISTRATION

The CHAIRMAN. The committee will come to order.

Yesterday, a comment was made by two of my colleagues concerning the news judgment of the three major television networks regarding their decision against live coverage of these proceedings.

As one member of the Rules Committee I would like to express my shock and amazement that a matter of this grave consequence would be found to be unworthy of live broadcast on the public airways.

It has been noted by everyone here that we are considering the next Vice President and possibly the next President of the United States under circumstances in which neither President Ford nor Governor Rockefeller were subject to a Nationwide vote.

I have no intention of dictating the basic news judgment of our networks but I feel their decision to shut off these proceedings from the American people in favor of soap operas and the dollars they would receive from advertising to be deplorable and unconscionable and a misconstruction of what we understand to be freedom of the press and of the public service requirement of the Federal Communications Act.

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I would welcome, and hope this committee would insist, upon an explanation from the networks as to the thought process that went into this shocking decision.

On another subject I hope the nominee will understand that all questions directed at him were designed to shed light on possible conflicts of interest which could result from his being confirmed as Vice President and were not in any way intended to impugn his integrity. His personal honesty is a matter of public record during the course of the 30 years he has served the State and Federal Governments.

What is important is the precedent to be set here for all nominees regardless of the office and who might be torn between public and private interest.

Speaking for myself, I am still not satisfied that we have set to rest the question of possible conflict. I can see many possible conflicts and many questions raised including the temptation of a subordinate in government serving under Mr. Rockefeller's leadership who would know that a decision he might recommend could in one way or another influence the personal and family fortunes of the nominee.

That is why I feel that the precedent set here has special meaning over and above the normal situation when we are asked to scrutinize an individual to determine his qualifications and fitness for high office.

Now, Mr. Rockefeller, before turning to Senator Byrd for questioning I understand you have a couple of additions you would like to make for the record.

STATEMENT OF NELSON A. ROCKEFELLER, NOMINEE FOR VICE PRESIDENT OF THE UNITED STATES-Resumed

Mr. ROCKEFELLER. Thank you very much, Mr. Chairman and distinguished members of the committee.

During the hearing yesterday several points were raised on which I would like to supplement the answer that I gave at the time.

Senator Cook inquired as to the increase in New York State capital gains tax.

The facts are the tax on capital gains was increased in three ways during my tenure as Governor.

First, since there was no separate capital gains tax in New York State, the three increases in income tax rates during my administration also increased taxes on capital gains; second, a minimum income tax on capital gains went into effect in 1970 patterned after the Federal minimum tax enacted in 1969.

The minimum tax, initially 3 percent, was increased to 6 percent in 1972.

Third, the percentage of long-term capital gains required to be included in income subject to tax was increased from 50 percent to 60 percent.

Senator Cook also offered for the record a statement concerning three foundations and Rockefeller Center, Inc., which may have been understood as indicating that the Center's net worth as of December 31, 1963, consisted of some $123 million of securities, at cost.

In point of fact, the securities valued at cost amount to approximately $15.9 million. The figure of $123 million represented the net worth of the Center, most of which was accounted for by its ownership of land and buildings.

Senator Pell inquired about a lawsuit commenced by the American Civil Liberties Union in 1971. This suit was brought not only against myself but also against the New York Secretary of State and certain of the legislative leaders. It challenged the use of the Three Day Message of Necessity and asked the court to restrict the use of this procedure and to invalidate all bills enacted under it, claiming that use of the procedure was an abuse of power and that the procedure should only be used in emergency.

The Attorney General of New York defended the suit as I indicated which was dismissed in the lower courts and the dismissal was affirmed by a unanimous court of appeals, the top court of New York, on July 2, 1973.

Thank you, sir.

The CHAIRMAN. Very well.

Senator Byrd?

Senator ROBERT C. BYRD. Mr. Rockefeller, yesterday you spoke as follows:

"I hope that the myth of misconception about the extent of the family's control over the economy of this country will be totally brought out and exposed and dissipated."

Mr. Rockefeller, one cannot explode a myth that is not a myth, and this myth cannot be dissipated.

Now, you may view it as a myth. I do not view it as a myth, nor do I view it as an evil that you and your family have great wealth. I think it is a great success story and one which I think all Americans can be proud of, but to say that because no one in the family has more than 2 percent or 2.5 percent or 3 percent, or whatever it may be, of the stock in any given company does not mean that that person or that family does not have great influence in that company and when those holdings are spread across multifarious companies, the impact of that influence upon the economy cannot be other than tremendous.

For the first time man of great wealth, far greater as far as the entire family is concerned, is about to be Vice President of the United States; a man whose wealth is far greater than that of any other President or Vice President in the history of this country.

Franklin D. Roosevelt who became President of the United States was a wealthy man, for example, but his wealth could not be compared to the Rockefeller wealth or the wealth of the Rockefeller family.

Now, it is not a myth. The name of Rockefeller has been known to me since I was a child. I can probably remember that name better than any other name except the name of my own family. It is a name that has long been known to every person in America, and associated with it has been the impression of tremendous wealth.

This kind of economic power, when linked to political power, of course, may be utilized to the great benefit of the Nation. I am not complaining about that; that I am not quarreling about.

You are a man of tremendous ability and experience, and I think that is what is needed at the helm of this Government, but to say that it is a myth does not dissipate the fact that it is there, and that there is tremendous influence that goes with wealth and that when such wealth is linked with great political power, the resulting power may be greater than the total of the component parts.

I think what we are talking about here is an attitude that sometimes comes with great wealth inherited over generations. I wonder if you,