Public Relations and Political Power: a Case Study of the Caterpillar Tractor Co

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Honors Projects Political Science Department

1966 Public Relations and Political Power: A Case Study of the Caterpillar Tractor Co. Frank Simpson Illinois Wesleyan University

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ARCHIVES 059. II! 5 10 13f

Submitted for Honors Work

In the Department of Political Science

Illinois Wesleyan University

Bloomington, IllinQis

1966

Frank Simpson \\

BUCK MEMORIAL LIBRARY ILUHOIS WESLEYAN UNIVERSITY Aoe:ep1ted by the'Department of Political Science of

. , Illinois Wesleyan University in fulfillment. of the require- ment for departmental h6nors _J1 >vq.rU/� Project. Advisor PREFACE

The central concern of the paper is to present a case study of the public relations activities of the Caterpillar Tra.ctor Co.. Caterpillar is the larges t private

employer in the state of Illinois and the largest single employer in the city Peoria It has plants, offices , of •. and parts depots in enty two pla.ces in nine een different tw - t congressional districts; and the Company also has many facili ties overseas. Finally, Caterpillar is a maj or exporter of heavy machinery. Such an organization would therefore be highly interested in--and sensitive to--the

I political climate in which it operates .

The purpose of the paper is to provide a description , , ' of the relationship of co rporate public relations ano. corporate political activities using Caterpillar as an example. No attempts are made to provide moralistic judg ments on the topiC. The public relations aspect of the Company's activities will be dis cussed in its' political capacity of providing corporate political insurance by means of po litical persuasion affecting the policies of the national and local gove ents Consequently, the rnm . paper will only bring in public relations principles as points of clexification and explanation since the paper in no way represents an attempt to present a general

iii dl:escriptiolli of corporate public relations activities.

Phe paper was initiated as part of the Senior

-!funors Program at Illin6is Wesleyan University. Special

thanks is due: t'G Dr.. 1>., P. lB'r6WJJl, Project Advisor at �linois Wesleyan "£Uhiversity; and 110 the Caterpillar

1h:-act�r ..'«&'i :(ill' ]?oria, Illinois, ana its President,

William Bla.crkie. In addi tiollIt, the writer would like. to

express his appreciation to Roger T. Kelley, Vice-President;

�yron DeNaan, Manager o� FUblic Affairs; Carl Winterrose,

Ken Gerber, and Don merman of the P't1iQ1.ic Affairs Department;

mQ;. Fred Rrescotll" Manager of Emplo;yiee Relations.

tv �ABLE OF CONlfEN"TS

PAGE

PREFACE •• • •• • • • • e .• •••• ••.••• ' ••� ••••••••••••••••••••• ••• .•iii

Chapter

I. ON. • • • .1 Ilt'fR6ll')1(1;T! • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

II .. THE PUBLIC AFFAIRS DEPARTNillN T •• ......

'III. COMMUNITY! RELATIONS., ••••••••••••••••••• •••••• ••:';�4

APPENfi3LI •••••••• • • • • •• • • • • • • • • e" •••••••••••••••••••••

APPENDIX II •••• ...... " .. .. ••44

APPENDIX IIr•• • ••• •• ••••• • ••• ••••• • ••• • •••• •• • •• ••• e .• • ••47

BIBlJIOGRAPHY...... • 51 I. INTRODUCTION

There are many definitions and descriptions of corporate public relations-";so many that there is no single accepted definition of what public relations is in either a normative or a descriptive sense . It has been oalled:

1I • • • the attempt, by information , persuasion, and adjustment, to engineer public support fo r an activity , cause, movement, or inst.itutio n. 141 More simply put: "Public relations is the a.x't of making friends _I'! Other business people have called public relations activities the ohief means of eduoating the publio; and many businessmen frankly admit that much of their public relations work is unabashed selling of their company' s attitudes towards community and governmental matters.

Regardless of the many definitions of public rela tions, most people in the field will at least agree th�t

the primary function of public relations, as practiced by the modern oorporation , is to present the "truth" on civic and political iS6ues as the company sees it so as to gain the aoceptance of that "truth" by as mu.ch of the public as possible.

The working defini tion of public relations used at

the Caterpillar Traotor Comp any is that public relations-is

the means whereby the story of free enterprise in general

and the tractor industry in particular is told to the publio .

1. 2

The objective is to contribute to the company's profit

making 8.b11ity by developing an 'I improved ,. business climate at the local, state, and national levels. Business clima.te in this case refers to the factors that affect the cost

business in a particular 3 of doing are.� .•

The method of the Public Affairs Department is

:'to tell the story of the free enterprise system te the public and to go�ernment officials at all levels. It seeks ad.justment of publio opinion through the channels of information thereby causing persuasion. The department is interested primer.ily in building public attitudes and st'anda,rdizing public about polfi.tt ¢eJ. qiiJations opllaiio!ls ::;; �-�

, , !s:, IJhvin �o'S&l� s:t tes: 'Itlat.l?� is 'trY1Ilg t.o" i:Q. at1 u:Li;uate �$+l', "'sfenSe" are ":the merits ,Elf,a partj,.oul� , :oorpora.tion a.nd

It should be kept in mind, however, that the goal of the

Public ilffairs Department of Cat�rpillar is !lot just to merely sell American capitalism--itis hardly a contro-

'. ' versie.l. subject aIlym6re. Rather,the department is trying

. �.' . to sell .American capitalism as:it is presently constituted

-', .� and as it presently proves beneficial to the company. In short, things should be left pretty much alone except for possible "improvements" in tax ar'eas and union matters. 5

In any corporate effort in the field of public 3 relations advocacy, the various prejudices, apathies, and preconceptions of the public must be taken into consider

�tion. At the same time, the typical corporate public rela tions approach must be a long range one. The purpo se of the long range effort is pointed out by Irwin Ross:

•• _ if a COlD,t>any, over a period of time, is sWathed in layers,iOf good will, it wil�,not bedama�e� by an occasional fus�lade of abuse. ",

In short, Caterpillar's public relations effort by its

Public Affair� I$�af';tmellt has as its goal the educati{)ii of the public regarding the merits of the free enterprise system and the laying down of an insulation of good will as pro tection against public reaction in times of bad corporate publicity_ The means of bringing this about is described by Irwin Ross:

Thus••• e nor.mous attention (is) paid to charitable proj.,cts in plant communities, th� provision of scholarships to deserving studentrill, the production ot' educational aids for use in "the SChools , ta-e assiduous cultivation of �oo<,lrelations with sto ck , . B:14'&ra.. The" s;toe1thoIders,. when Er:ffegti Y""" J;7b�"�at'ea, �nt!hemselvesare a ' ,:� WOlf,or1is, again�t an un- tcgovernmen;t.'�, "

FU.b1.i� Relations: �,lBUsiness Through 1,940'19 , ,.- , � Before: pro�eedil1g further with the discussion of Caterpillar, a brie�history of business and pub11. relations through the 1940's is needed to lend perspective to the paper.

In the discussion of the history of public relations and business , it should be po inte d out that the relationship 4

between the two has not always been a close one. But

if their marriage began out of necessity, it has now

turned into a deep and permanent love affair.

Until around 1900, the predominant attitude of the

average businessman towards politics and the public was

one of disinterest--ifnot a:Loofness. His was a secure

posi tion • ••. Condi tions changed, however, and the business man found himself faced with attacks on business and the

capitalistic system in general by the press and magazines.

Editorial assaults were soon followed by trust busting

at��pts by the national government in conjunction with

$t11te and national regulation of certain aspects of busi-

ness activities. As a consequence, the business commu�

nity found it necessary to make at least token gestures

in the realm of public relations in an attempt to pla

cate some of its more outspoken critics and to adjust

itself to a new poli tical situation.

The additional rude shock of public indignation

and additional governmental regulations in the post

depression era lent further impetus to the development

of corporate public relatione. Once again business had

to rebuild its "image" by proj ecting a new picture of,

itself to' the nation. Irwin Ross summed up the situa

tion in this manner:

The wholesale disesteem. which befell American business, in the depths of the depression, pro- 5 vided the motive force for the establishment of PR departm.entsin a number of large corpo rations. Charles Huse, second in command of the public relations department at U. S. Steel, vividly reoalls the atmosphere when our largest st$elproducer began concerted efforts to win pUblic favor. nIt' youlookbaok at 1936" at that time the so ....called political rev€>lution was in effe-o-t. lVIuch of the suspi cion about ?p-g business arose from the fact that nobody knew what went on inside. There were high fences around the plants--no one went inside except the workmen. Newer managemen t realized that it had to operate in a goldfish bowl. It One of U.ll. Steel's first moves, after this revelationbr0ke over it, was to provide conGlucted tours of the plant gold ish o wls , , � i. for ,any CJ.tizens who mJ.ght be curJ.0us�

In the 1940's, therefore, industry in general opened its doors to the public. In 1944, the Community Relations

Division was fo rmed at �Caterpillar.

The Community Rel ations Division

Prior to 1944, Caterpillar did not have any formal administrative body to handle public relations activities as such. Of course the company did perform several community relations activities, but a need was felt to provide a more formal method of administering the community relations activities of the corporation. Consequently, the Community Relations Division was es ��blished in 1944.9 The purpose of Communi ty Relations, according to ROlbert A. Newman of the

company, was to develop understanding of the company among

the citizens of the community. In addition , the division

also sought to interpret the meaning and the significance lO of the American free enterprise system to the community. 6

Mr. Newman stated:

Lack of public understanding of the American IIway of business" could threaten the business existence of all companies, including Oaterpillar. Understanding the free enterprise system is like buying. good illsuran.ce • it may ke p the company 11 � in ',bus�ness som,� day'. ' ," ,, '

Mr. Newman's reference to public relations as "good insurance" seems to echo a similar statement that Norton E. Long made in 1937 concerning the public relations effort of the Bell

System:

Though widely denounced as immoral, the attempt on the part of business management to insure itself against changes in the political framework--a framework which it must, to a large degree, be able to take for granted if it is to concentra�e on its more orthodox economic tasks--seems'as : 12 logie � as insuringag4l.inst fire or flood. '

Community Relations supervisedc'seven progTams to accomplish

its goals . They were:

1 Plant tours (I )

(2) Mailings to important community leaders

( 3) Assistance to chairmen of various civic groups in the community

(4) Urging 0 f company personnel to take an ac!ttive part in community affairs

(5) Company donations to charitable groups, hospital funds and other c,o mmuni ty affairs

(6) Distribution of discarded but usable office turniture and other items to worthy organizations such as schools, churches, and welfare agencies

(7) Oommunity service advertiSing in area papers, radio' elevision, and sch ol and l � o yef!Xbooks papers .

Wi th the passage of time , however, the need :for 7

expansion of the Company's public relations activities

. and the need for the incorporation of the public relations

function into the new field of public affairs led to the

birth of the Public Affairs Department in 1959. The cir-

cumstan ces behind this development are taken up in the

next se ction of the chapter.

Public Relations and Business after 1957

The impetus beliind the creation of the Public Affairs

Departmen t at Caterpillar was President Eisenhower's urging

. of businessmen to take a more active Ilart in politics--at

least this was one reason given by Oarl Winterrose of the

.Puplic Affairs Department.14 However, s. more thorough

,��amination of condi tions at that time is needed to give

a correct picture.

The late fifties mark the beginning of an intensive

renewal af activities in the public relations area. As

things stood up to this point in time , public relations was.

primarily used as a curative, stopgap measure. The use of

corporate public relations wi th the ac cent on., prevention

-developed slowly until around 1957 when it came into its

own as a political tool. B.J. Mullaney describes the

reasons for the new accent on prevention:

•••to depend, year after year , upon the usual political expedients for stopping hostile legislation is short sightedness. In the long run isn't it better and surer to lay a ground work with the people back home who have the 8

votes, so that proposals of this ch�acter ( proposals that are not Ubeneficial" tobu.siness) are not populwar with th�m, rather than depen4 sucl.! propoS)8.ls when ey ge;t in- Upon. s:topping l �h to the legislature or co�ission? lhphasis was still being placed olf. cormnUJ;lity and/or pub�iLc

relat::J.ons. :But th� pUbli? rela�ions function was now being

operated in conj �ciiion with the public affairs function. Bu.�iness in ge neral began to realize that 'altllough the

Feq.eral qorrupt Prac t1.c es . Act diQ. rule out direct financial contributionSJby corporations tq political parties, it did no1; prohibit a corpo!'ation from taking pOsitions on issue s ;

and it did not proh�bit the Efmployees of a corporation

from. taking an activ� part in political affairs. Hence the business in politics,movement conc�nt!'ated on the busi.nessiJ;;Ldividual as the activist and on tnEil cqrporation as a tlci tizenlJ that ,had the ri€;,ht and had tlle responsibility

·to speak out on.civic and political matters that affected

itt.

J3ackgro��--;Sj;arting arqund 1957, article after

, I article began appearing inbusines:j3 Pllblica-Pions.urging

executives to get i,nto po�itics. In the Harvard Business Rev;.iew, Horace l:. Sheldon stated the general problenir�,

if business is improve its effectiv;ene$$ ••• to ilf· the l egisla tive process and with gQve��l'£·t generally, it must beQom�m.ore acti � and I . effecti va in, the .. poli ti'cal proce'Els.

Mr. Sl}.eldon's reasons for urging buEliness to enter the

political arena were given as the waning influence of 9

business in government as demons.trated by th� resuJ..ts of

the 195$:· .co�gt'ils�i0nal elections' and. the mbtint�ng influence

. of la.bor inte�8 o� poli iiical power. Sheldon"s discussion ' continued. by :paYinghomage to the si�ificance of the free enlierprJ.se system: .

The free busill�s-s �vstem.is a Qorller�to�e of .o,ur tli'ee.1?I00iety�·. l!itd.its defaIlse and adviillce- .. merl'P :�e{;rUi�Et',tha1f:i�jlf[J:.tl(aSS.,..p�qple 'articulate their points, :of' V'1}eW::>'Wh:�re ' o Ql.lllts ,mc1.i/!3t. :L� The t�'f ;;spendillg; tarit�t:Qr()o��lp:e!lt,. 'an1Ji trust, and . fOJ:'��,@l aid �,oli9al' of government, all have · , be�!j.:n,;g ; <>nbusJ.ness•.

N;ovember: �: , 6J issuesorf:r:Nf�t±;m:Q:l$::) pt��'''E, �e r , . • ". . ' ". � J;� , " , . � 1 j, . Jl). \ ,. . L ' ':.. ! , I, . '. spoke of the results up to that time of t�e driye· td get

businessmen intq pol:itics:

Re�ord numbers of executives are studying the mechanioa of practictal. :pol,itics: examining issues and thebaokgrq'Unds of" avowed;or:P9tential��li:id.a;B.eS�f,��weighing whichio:f':f'icese�ker to siU.pp()rt. with money or persolla3.. eflorl.i�; or both; "urg;,ng ,mheir "-em;plQYEt�s. regar'

The av.erage businessman. was now becoming aware of the faot

.. 1\ that his interests wer� bound up with the- deoisions of

governmental units at all levels. Thomas Reed, Direotor

of Ford's Civio" and Gov'9,rnmental Affairs Department stated:

, What government does is; ju.st as much of . intere�l;� to FOl� theE3'days as what our eompeti1;0rs do. ,

"So what oan I 0.0 about all of this?" asks Mr. Average Bu.sinessIna:Ii. The Chamber 'of Commerce of the United States suppli�s the answer: 10

NIl:t.. Businessman , i te your country, too. The nation belongs to um� all, including you. And we should all have our say in deciding what way its: going. This brings up a subject that is anathema to many business leaders--politics. But it shouldn't be. Politics is the art of dealing with peop19, of convincing them that it is to their advantage to join wiit] you in getting your 1',o1'os&.1s aocepted.

The means of getting the people to support the business po sition is public relations. Corporations have fully

embraced the role of the�) "corporate oit izen . It As a result, they are now takin g stands and becoming involved in civic and political. affairs. ;ttl. sh or t, business has taken the final step into complete involvement 'in public affairs completing the swing away from the aloof position it pre viously held. The story of how Caterpillar made this �, adjustment will be taken up in the next chapteF' along with a detailed description of its public affairs activities. 11

�ote$ on Ohapter I

lEdward L. Bernays, "!rhe Theory and Practice of Public Relations," The EngineJ!'ring of Oonsent, ed. Edward L. Bernays (University of'�Oklah0ma Press, 1952), pp. 3-4.

2Wena: llarlan and lian Scott, contem�orarl Public Relations) (New York: Prentice-Hall Inc., 1755), p. 4.

JThe de£inition here is the writer's own.

4Irwin Ross, The Image Merchants (Garden City, New York: Doublemy and, Oomp&nY;, 1959) p. 21.

5t·�prov.ements"1 in this instance refer to improvements in relation to the business cl�ate.

7 ..' I bl.G.ie

81bid., p. 162.

9Fred R. Jjolly, "Public Relations 4mr·�!I.r"iJ.{}iI1riBadr4:y'ard, It at s J;ournal, -�e:: Publie Rel ion � Vol. 3 i'b. 8, (AUgust, �i"' .... ! 1947) ..

lORobert A. Newman, "Public Relations on MamJlu:,S'treeif," 1!!! Manager's Kel, ( Fe bruary, 1957), p. 11.

llIbicli ., p •. 12.

12S'tanle� Kelley Jr., Professional Public Relati ons

and PoliticalPowe;: (Belitimore: . The Johns Hopkins Press, 1956), p. 19_. The quote is:; talma;t'rom the article, "�bilic Relation&: of the BellL S.yst.em," Publ;Lc Opinion {luarterll I. 'N (October, 1937), p. 7.

llNewman, The Man.$ger·s Key, p. 12.

l4b�¥��li� ��gi�j., 8g." personeli interviews with personnel of the PubliC Affair. Department €'Oarl Winterrose), June 15, 1965.;.

15Kel ey, B. J. l Mullaney qouted in Professioneli Public Relations � Political power, p. 12. 12

l6Horace, E. Sheldon, lBUsinessmen.Must Get Into Po1itics ,. " Harvard Business Review,�, (March-April, 1959), p. 37.

l7rfmci\., p. 38.

l8Nation I s BU�iness, "Coming t Biggest; Role Ever For Business," Vol� 5l, No. 11 �;NovemberJ.1963}, ,. 34 ..

2 , 0WaShington Report, Vol. 41 o N . 37,(Aug. 27 1965). II.. THE PUBLIC AFFAIRS DEPARTMENT

Briar to 1959, the public relations activities

of Caterpillar were'. handled by different segments of the

Oompany. Publications was under �ploye e rela tions and

legislative activi ties were part of the admini stration.

Oommunity rg,lations were handled by the Communi ty Relations

Department--for.merly a division as de scribed in Chapter I.

It was decided tha t a riew administrative setup was needed

to handle these operations, and BYron DelFaan of Caterpillar

conducted an investigation of the public af fairs departments

at other companies and recommended that Oaterpillar create

such a department in 1959.

At the start, the Public Affairs Department only

�ncluded a publications division and a legislative division.

"The Departmentta activities consisted of analysing current

public issues, put ting the company's position in wri ting,

and communicating the posi tion to 'company offi cials and

employees . In 1963, the activities of the Community Relations

Department were merged in to the Publi c Affairs Department,

thus merging the public affairs function of Caterpillar

l into its publ ic affairs activi ties.

The Public Aff airs Department attemp ts to fulfill

its goal of a better business clima te and a better under

standing of the free enterpri se system in two ways: (1) By

13 14 speaking out on some of th e important issues of the times; and, (2) by encouraging emplo yees as individuals to better 2 meet the responsibility of citizenship. The employee best fulfills his citizenship responsibility by informing himself on public matters and by becoming actige in the political party of his cho ice. In summary, the Department feels that its effectiveness depends on �chieving understanding by all 3 and participation by the many. In conjunction with the urging of good citizenship on the part of its employees,

Caterpillar also fulfills its role of a corporate citizen

through i tsl;};ggihSlIH:!l.intwer;;;a-en:tt.:tD:esp,:axid. its co mmunity relations work.

Legislative Activities

The,legislative activities (lobbying) CDf Caterpillar center around the legislative committees at the various plants and the Public A�fairs Bulletins. The Public Affairs

Bulletins--which are statements of the Company's Viewpoints on current issues--are contained in the Public Affairs

Notebo ok held by ninety management people in the corporation.

�e purpose of the notebook is to make part-time lobbyists

out of some of the Company's best people . Any given bulletin fU]fills three objectives:

1. It informs reCipients of existing or pro posed legislation, or of the need for legislation, either on a state or national basis;

2. It describes the likely impact of such legislation on Caterpillar, and; 15 3. It often recommends specific action in terms of letters, phone calls; personal contacts, or:whatever method of contact seems most appropriate, considering the' issue and the time fao tor. '.

The' processing of a typical bulletin d.oes not in�

elude administrative clearance with the President to avoid policy conflicts. Administrative clearance is in

-ri stead made wi th the. manager of' the department an,d the appropriate administrative �Y:ice-president whose area is

concerned with the issues covered by the bulletin. The idea is that the vice-president is supposed to know the

thinking of the President on the matter--theory, at least.

The legislative committee at each plant is made up of legislative advisors which are individuals i:n regular

departments assigned related legislative areas for con-

r sultation. This committee can make the decision as to what

course of action is to be taken regarding any given policy

bulletin. Letters may be written to legislat.ors or to

congressmen. Editorials may be put in local employee papers.

Visits may be made to lawmakers. Consequ.ently, dire.ct per

sonal contact is made by Company officials; and, no pro

fessional lobbyists as such are used. Roger Kelley, Vice

President of Personnel and Public Affairs at Caterpillar,

states the purpose of this method of lobbying:

•••the views expressed by local managers--or by managers whose functional responsibility qualifies them to assess various legislative 16 propoeals--carries considerably more weight with legislators than the views of the public �ffairs staff man.' The latter, after all, can look pretty much like industry's full-time lobbyist, unless he assumes his proper role as back-up man, idea feeder, and- coordinator for the front-line managerl who contact legislators on key issues. I

The advantage of the current program of legislative

activities according to Mr. Kelley is in the fact that § Ca:terpillar does not utilize professionsl lObbyists.

Over the years, the Company's position on legis

lative matters has b'ecome more sophisticated in the sense

that they do not flatly oppose everything. The bulletins

usually recommend alternative proposals as substitutes

for the item.or that they oppose •.In add,ition, ', ' prqgram. , , . many.measureEl.receive . the support of the Oqmpany.aa ex- - . , ., '

pressed. in, the bulletins. But,. of course, the bills

that receive;Cqmpapy support are usually beneficial to I the Company or resul t i� the improvement of cOmm'@�ty -, . relations cmd!or the business climate. For ex�ple, in 1961, the Company sqp:Qorted an iJ;lcrease in the state

sr4es tax.. In s1l-};)p�rting this PJ;'oposal, however, the

Company was merely re:flecting�he general policy belief

of busl,ness·that a Sales tax--or en increase in a sales

, tax. is preferable to the implementation of a state income tax�" The Public Affairs Bulletins, therefore, set the

policy guidelines of the legislative activities 'of the I , . Company. In attempting to develop among the. employees 17 and t�,� local community a better understanding of legislative matters affecting the Company, eight lines of,action are fallowed by the Public Affairs

De,partmen t:

, 1. Analyze and take public positions on many ,of/the, important: issues of the times, wh!eth,e:r thei;r relationship to Caterpill,ar bu;s,1ness is direct,:or'ind:4rect, "an9-with out f'ear of c0ntroversy th�t may lie 'ahead. I, 2. Engage in such nonp ar tisan activity without, 11'eference to the positi0ns t�kenbyariypolitical party. ' I ' ' 3. Lend support only to those things deemed to be,in th� best intEirests of the l'1ation" as,well as, ' �thei,r effect ,on tl;l.e Company . " , 'I 4. Promulgate the Company's beliEd's thr0ugh 1�s ,publiqa tions and se,ek un.derstandingof these beliefs ,through the issuapce,ofre la:t:ed statements,. In accordance wi th past practi,ce, �U:Ch statem9J+ts 'require approp:ria te 'adininistr'ative a.�provals. When�ver p,ossible , statements should appear independently ofpendihg legislation

••• so thatthe Company's viewpoints are 'wid.e�Yk:rio.l{.l1 findc�early understood in advart,oe Q,;f,new legislative proposals that may r'eiaie to�h�m:. , ' , ' , l' 5. Foster education, formal and informal,

ecohomic andpoli,tical, on public issueSl ••• and a.qhieve,broa.cl�r understanding among managers as tq their rights and, limita,tions un,der'the statutes that gevern political ,participation by individuals and corporations.

i;. Communicate with legislators and ap:p�otnted officials in order to secure better Gom pt-ehenSion ;of each other',s viewpoints ; and the" of of effect propose.dleg'islation on the Company..

7. Follow and report on the performance of legislatoors and appointed officials. This !-: may take the form. of comment relating to their s,ta,nds on specific issues, bu tshould not t�ketli� form. 6fbroad general 'support, or oppoSlitiGn.. '

�l. Workcloselyw�t,h trade and business " associatio,nS :LlL the advancement of,,' , 'CO�eIly'beli,�::ts.��1?aXticipe.tfng in re lated committee w9:rk,anq"helpingkeep "th,e public a.t'fa:�r:s:��t:grts ,of such�' "l,"i � association$,' ,cqnc�hj{";ratea. and effec,tive. :,'

" ' " In addi t;i.cin to "legislative activities, " the Department

.' ', ' i I. " \ - . ..i" . . that the, maint�n&nce"of'g$()d,commW:J.ityirelatiQns is the cornerstone '(!jj th�'Company's"pblitical activities. A good community relations program is the ne cess�y precondition for any legislative or political activity fn an;x; company. J:u.s"tt. s.sthe'J':'individual citizen desirous! of aChieving the acc'eptance of his political views must 'have the respect ,c,f "his fellow Citizens, so must a cor:por�tion have the'respect of" the commu.nity- in Wh�Ch it conducts'it�"":9pera.tj.ans befere \\ .: it can gain acceptance of its pol! tical views. The next secti on of the chapter will deal with the IIre".ett'en'ga:,aeerJ.�n:gll "actin ties of the Public AffairS Depa:rtment.' £�m.munit:i Relations \ ' :Cl�ence Randall, former Dh&i.irman of theEbard at

Inland Steel, once stated: "People pay best attention to those 'whom they most respect. u� The pUljJose of community

relations work at any company is to l)uild the necessary 19

"respect"' for it as a corporate ci ti zen in � community so that it can have the ri tt� speak out on public issue s � . mte responsibilities that mue � be met: to build r'�spect primarily ponsist of ac tive participation in community affairs fO llowed by moral and finandial support for , '._ ' \' ", • ,< " I , eomtnunity progTaYlls. Failure ' to live up to theee respol'l:s1':::; b� :tt ��s is deaoribe d by Mr. Randall : ' , J

.•••onee a ce>mpany ge ts� 1ihe reputation of

du Cking i:tl!;!' c'ommu;nity . re�l;3p6ns1bili ties, ne: one ' will} If s "tell wh en they pound 'G:h.e table ��ay 'that f'ree enterprise ma st be saved •.'.

In the. operation of its comm'i'D-;i.ty relations pro

�am, the ne partment mus t take into con�ideration the size of the corporation in relation to thE!! community of Peoria • " eo

and other lo cal indus tries. In short it mus t avo id creating

the app earance of a domine ering corpo rate giant; and , in a

communi ty where " it is the JJrgest Single employer , thi s preve s

, to be no t small task. One member of PUblic Affairs go e.s so far as to ' contend th at the best that can be hoped for is that

the program prevents people froIn res�nting the Oompany ; it places them on a plateau of neutrality. In other words ,

community rela�ions keeps latent ho stili ties latent. To

this particular gentleman , the layers of good will are

suppre:s'S±u in -nature than lubri9a-t;ive . It is the fe eling

of the writer that bo th descriptions..:: eo.lhlil,d:cbe u.sed"':�btit�,a.t.

different times,

. !he Public Affairs Department channels the maj ori ty 20 of its communi ty relations work through the hands of O. D.

Maddox and th e Pl ant Tours Supervisor , Ken Gerber. Maddox is Mr. Caterp ill ar to the majori ty of city officials ; when some thing in volving CaterpillaD comes up in civic affairs , he is the man sought out for assistan,ce.. Maddox is also

the �rthat fills.' the· personnel reque'sts of the various community groups fo r bo arel! members and other posi tions by seeking Caterpillar people as vo lunteers for these positions . 0c casionally , personnel requests are turned down .� the organization1 is di screetly directed to o ther sources of manpower because it is fel�; that there is a certain saturation point beyo nd whi ch no additio nal

Caterp illar personnel should be used. The reaso ning be hind thi s is that they wish to avoid cr eati ng the im age of a corporate pant ruling; the community f S affairs. The balance mus t be struck on the razor 's edge so as to no t Lc app ear to be doing too much or too li ttle. Jus u as they ri sk being accused of do ing too much, they al so run the risk of being accusecf of failing to meet up to their obligations to the community.

Pl ant mours

mh� ffiiscussion of p&1m� uours is set off because

the writer feels that the nature of th is topiC meri ts

clo se attention. At Caterpillar there are two types of

conducted tours : regular , and special group tours . Regular tours are conducted daily for the general public, visiting 21 caterpillar DealenfI, and oustomers . The: purpose of the' regulan tour is to create a good impression of the Oompany and to demonstrate the merita of �he free enterprise system.

Tb.e Companyl8 I'fttn:�*:bdt:o.n1;l:dWqqU:aJ.:tj;yU\ is exemplified and is described as being made possible; by the free enterprise system. More bluntly put, the core of the message states that quality product� are only pQssibl. under the free enterprise system. i-

mba "sp:e.iall group tours:: are conduc ted yearly wi th various' community groups Eluch a s the clergy , barbers, county offiCials, lawyerSl, OPAls,

�ackage program--tailor-mad� to fit the desires and the cha.racteris�ics of the group.... -consis ts<. of a meal , product demonstration , !B,!,a message . " The message is the key part of the pro gram be cause it .is delivered to the mo st important people in the community: the ..talke rs" or opinion molders . During the performance of their duties, members of these groups usually oonverse a great deal wi th their customers. If the subject of Caterpillar comes up during the course of the conversation , it is the policy of the Department that" the opinion molder (t>al1ber or hairdresser) be "properly informed. " As an example, suppose a man go es into a barber shop and starts talking about 22

Caterpillar 's overse as ac tivities and how thle.¥ t;tr,e taking jobs away from the Peoria area in particular and the

Uni ted States in general . The barber , if he wen t to the last Barber 's day at Caterpillar , would inform hi s ous tomer that Cat plants overseas do no t take j obs away from the dome stic eoonomy . Whe ther or no t thi s is the case is another story. The important thing is that the gentle man in que stion will now more than likely return "hoih� ,,:>� reassured that Cat 's overseas ao tivi ties are no--t -hmf. " ru to to the cOUIltry or to his home town . More importantly , he will no t now be ap t to wri te hi s· congressman on the sub- jeet--if ever he felt that strongly in the first plaoe .:liO: 23

Drotes on Chapter II

lSupra p. 7.

2Bfron DeHaan , Manager of the Public Affairs ��partme:nt, gave an explanation of Caterpillar 's interest in the:: businesr-8 climate of the; Peoria area. In a July 30 , 1965 interview, Mr. DeHaan said : ItWe have a ri ght and an obligation to talk about things that affe ct us . We have in pee:r;l. here for fifty-. SI:''ix years, an& we have an inter.es,t the area. u,

3P:ersonal iD.terviews wi tiL personnel of the Public 'Affairs Department of Caterpillar . Jiune 15, 1954 and January 14, 1966.

�oger 1'. Kelley, "W� Ire Sold on the Impartance of Public Affairs ,"; .An Address by Hoger T. Kelley, Vi ce President, Caterpillar Tractor Co . at Public Affairs Conferenoe of the .American Irmu and StellL Insti tute , (Januarlf 13-14-, 19651, p. J.

,5Caterpillan, however , do es maintain membership in business iand trade associations and relies on their dire ct lobbying activities. ,Membership in such organizations affords opportuni ti es for establi shing contac ts with the community and tho se who mold public sentiment. Oompany men can thlis act as spokesmen for Caterpillar f D-.£also perform the: equally important ' role of intelligence �gents, gath�ring information regarding the feelings of a particular group towards the 6ompany .

6E1is explanation of the po ssible reason for Caterpillar 's backing of the increased sales tax is strictly the writer 's own .

7. ,. p. olic-:[. Le. tter No ., 34, Oaterpil lar Trac tor Co . , , (JUly 2�" 19!i9), p. 3. -

8Clarenee B. Randall , ACree� for � Enterpri se (Boston � Little Brown and Oomp any , l� ), p. 10.

9]bid. , p .. 67.

l€)iThis description iar, of course, an ac count of an ideal cOlI1lIl.unica tiona eretup . In re ality , things do no it; operate as smo o thly as the passage may lead one to believe . III. COMMUNITY RELATIONS

A description of the public affairs program wo uld be incomplete if only the communi ty relations work of the

Public Affairs Department was di scussed. Al though the lJep'ar1D:nent is formally as signed the. oommuni'by relations

, fun ction, other s egments and personnel of the Company regularly participat� in communi ty relations work. Npper mllW.agemen t people , various departments , and even the

President find themselife.s; in civic affairs. Oater12illazr and � .£1 American Oity

In:. 1965, F.eoria entered the lUl American City eoti-

, c . te s t sponsore d by the National MuniCipal League and � magazine . Operating under the auspices of' , the Peoria

A�sociation of Commerce, Carl Winterro se of' the Caterpillar

Public Affairs Department, le d Peoria's candidacy in the competition. As evidence of the progress that Peoria had made in the areas of urban redevelopment and civi c progress, several items of "progress" were cited. - A closer examination of some of the more important items pro ve s to be quite revealing :

(1) As the first and mo st impressive bi t of "eVidence," the rebuilding of the downtown area was mentioned. The major imp etus to this redevelopment was the de cision by

Caterpillar to locate its new World Headquarters building 25 in what is now the center of the redevelopment ar ea.

(2) In the annexation of the Ri chwo ods Township to Peoria , Caterpillar did no t take any public stand .

Pr esiden"tr Blackie , however , wro te a letter to the Peori a

Journal � endorsing the Ri chwoods annexation on the basis that as a. tlprivate citizen" " he wanted to put a stop once and for all to the bi ckering and fac tionali sm ' in the ar ea.l It is conceded by the writer that any

"private citizen " can wri te a le tter to the lo c al paper ;

the letters of some "private citi zen� , " however , just happen to carry a li ttl e more we ight than tho se of others--especially if the "private ci ti zen " in que stion happens to be the pre sident of the Caterpillar Trac tor Co .

As an intere s ting si delight , Carl Winterro se figured prom inently in this matter through hi s work for the Peoria

Association of ommerce s ttee on .AIplex�:t;on.. C ' COmIni

(3) In the, campaign for the retention of council- manager government , Carl Winterrose chairmaned the committee that led this drive . Th e publications unit of the

Public Affairs Department c0ntributed space in Company publications showing the accompli shments of the council- manager form of government in Peoria.

(4) The Caterpillar Fo undation contributed funds " to the Lakewiew Center Fund.

';, (5) The Company to ok an o ffici al po sition sup-

/,' porting the Fire Bond issue and the new library refer- 26

endum in its empl oyee publications.

(6) The Chairman of the Board at Caterpillar

was chairman of the St. Francis Ho spital Fund drive .

Al though the Company did no t officially sponsor

Peoria' s entry into the All American City competition , it mus t be noted that a Caterpillar employee of the Public

Affairs Department was instrumental in bringing about

Peoria' s entry into the competition . The same employee,

other personnel , the Pre sident , and the Chairman of the

Board, and an official Company po sition were ins trumental

in bringing about the community developments that were

used as evidence in the Al l American Ci ty competition.

It is the contention of the writer $hat the entry

, -. ' . of Peoria into c,?mpeti tion represented the CUlmination of

a string of intentional and purposeful commUni ty develop ments brought about by Caterpillar wi th a go al in mind.

The �ac t that it was Carl Winterrose who fi gured so prom

inently is immaterial . The important thing is that if it

'- ' had no t been Mr. Winterro se, it is more than likely that

ano ther Oompany man wo uld have carried out the se duties.

No formal direc tive or order is necessary ,exoept the

general order of meeting the normal responsibili ties of

corporate citi zenship through fulfilling civi c obligations .

What is the purpose of all thi s work? Fo r one

thing , it would certainly improve the bus iness climate

for Caterpillar and the entire Peori a are a to have Peoria 27 2 selected as an All American Ci ty. The bene fits of

suc� a development to a worldwide corporation wi th

Peoria as the location of its World Headquarters are no t hard to see--granted such benefi ts are intangi

ble in nature ; but in the field of publ ic rel'liaid.ons,

it is often the little intangibles that compo se the

big tangibles of communi ty relations , local political

e-onditi onS, Jiuid., the..; ability to make a. pro fit.

11 there is any one point to be made in con

clusion, it is that corporate public relati()Jns and �:,:L,ts

politiCal implications are here to stat . Although the

paper only deals with the descripti on of the p�blio

relations ac tivi ties at Caterpillar , the underlying

p!'1l'loipleSJ drawn from the Caterpillar example Can be

applied equally well. to other large corporations . Many

M __•• aomp:�i es have adopted the ro le of the "corporate c1 tiz.en,} "

and they have al so participated more ac t1ve ly in political

and public matters than ever before .,

SemE!f' que stion may arise as to how far thi s

ac tivi ty should ,[).e ;'!Qllowed to go . I t is some time s con

tended that the use of public relations as a po liti cal

to�o l; present a gro ss distortion of reality , destroys the

demo cratic pro ae:sses , and manipul ates the public in a

purely Machi avellian manner. The wri ter tends to di8«'.<

agreE!:: with thi s viewpoint on several points. In the first

place , it seems impo s sible that any one group--1ndustry in 28

thi� ease--can gain complete informational control over

the citizenry in our so ciety . Secondly, the general

effec tiveness of any public relations program should be

judged in the T.e.aJ.d•. zation that any given propaganda effort

is no t all-pervasive . Much of the public relations effort

of industry is ,,'dnlned outf1 ON" the selective processes of

" the people that it is directed to . Qui te often industry 's mo st faithful supporters are the only ones that give full

attentioni.

place , al though there exists an element of self-interest

in the actions of a corporation as a tloorporate oiti zen , II

the humani tarian and al truistic aspects prompting this activi ty should no t be overlooked. �inally, industlry's intere st and partiCipation in publio and political affairs

should be welcomed and no t eriticised. For it is onl�

through involvement in con-temporary affairs' that industry will: be encouraged to fulfill its responsibilities to the

communi ty and the country . 29

�otea on Chapter III

Ipersonal interview wi th William Blackie , President of the Caterpillar Tractor Co . January 26 , 196Q.

2peoria was one of twent�- two finalists in competition from which eleven All American Ci ties will be lIel.ected and annoilllced by March of 1966 .. APPENDIX I

Th.i s material pertains to the work _ the Public

Affairs Department of Caterpillar . VICE PRESIDENT

Roger Kelley

PUBLIC AFFAIRS

B. Dehaan

• • CIVIC AFFAIRS COMMUNICATIONS

." -#�t. ,�

' ,,, , j<. ' .. - _ a LEGISLATIVE COMMUNITY PLANT TOURS SPECIAL IN TERNAL EXTERNAL

LIASON RELATIONS " . "VISITORS . ASSIGNMENTS NEWS NEWS II I I MEDIA '" MEDIA D. W. Hyler 0. 0. Maddox K. Gerber w� Alberti

,.' l.!,J, ....,. , F. R. J. 3-5-62 .

CATERPILLAR 'S COMMUNITY RELATIONS PHILOSOPHY

Like all parts of the "relations " group , Community Relations is the implementation ·of a philosophy of management . And it is the implementation of an.en- lightened management .

In the field of good human relat ions , Caterp illar is a leader, having de cided a great many years ago that it would put considerat ion of the right treatment of people at the top of the list .

It did this from the start with customers , deciding that it would build only . the best and pricing its products accordingly, yet trying always to keep prices low . The Company·s policy of permitting no product to become ob solete is another example of its concern for the customer .

In another area of high concern for people , Caterpillar management has determined that owne rs shall be rewarded fully for their confidence . Our Company has not missed paying dividends since its formation . Its determinat ion to repay owne rs for their support has resulted in still furthe r confidence and this is reflected in the public' s estimate of the Company' s worth .

It haa now been JD8.llY years since a formal program was established to implement our philosophy with regard to Caterpillar people ... employees . Believing that the Company' s best interests were served by a work force of people who were well paid in every sense of the word, a fa.r�sighted management here has provided employees with a score of "plus value s" to their jobs - in addition to good wages and salaries ... to make a life-time of work for Caterpillar an interesting,

challenging opportunity to contribute both to self and to a constructive force in society . - 2 -

More recently - in 1944 first and then again a couple of years ago - .

administrat ive management furthe r deve loped it s philosophy that a company is

,a corporate citizen in its community 'by establishing the Community Relations

Department and , later, the Pub lic Affairs Department .

Community Relations ' jobs , as I see it , are to de velop understanding of the

Company and the things it does of interest to community neighbors - and thus

to create good will for Cate rpillar .

Like every activity, ours must benefit the Company, directly or indirectly .

There are several �s , it seems to me, that our program does benefit the

Company .

First, and here we go back to one of the reasons for Employee Relations functiOns ,

employees who like the ir company and the community where they live are almo st

certain to be better employees . It is our thinking that whatever we do to make

this place better is a contribut ion in that dire ction .

Thus , when we find Caterpillar people who will serve on committees of the

Associat ion of Commerce , or on Boys ' Club and Junior Achievement Boards , or in

other community spots, we believe we have demonstrated that we and our people

want this to be the best possible place to live and raise our families .

Now this might seem like a slow � to go ab out our job ••• and we lmew when we started in 1944 that it wasn 't going to be easy and fast to convince people

that Caterpillar was a good neighbor ; that you could borrow wheelbarrows and

tarps from us for church jobs; that you could drop in and see how we live and

how well we keep house - and on occasion you could share a meal with us .

We knew that we weren 't going to announce a Community Relations program one day - 3 -

34 and have an informed public the next . As a matter of fact , it was our thinking

that we we re going to make our friends slowly - just a few at a time - and that

the best friends we'dmake - the one s who would give us a recommendation when

we needed it - would be those we got to know pretty well - and who got to know

us as well .

What I'm saying is , we have always believed that our staunchest support will

came from people who have the kind of confidence in us that come s from first-

hand acquaintance with us . These are the friends we make � at � time .

The refore , the activities in wh ich we've engaged have been tho se which take time

and personal contact . They are such things as the patient listening to thousands ,

of requests for contributions, for all manner of things ., For example , we are

asked to help local police associations in the ir work with junior police . We

listen to and support nearly every youth program we know about . There is a

special reason for our enthusiasm here - this Company and this country will be

run by the se young people in a few years . We had better do all we can to see

that they are prepared for the job.

We are also asked for support for all the usual things . Hospitals have rece ive d

over a million and a half dollars from us in the past several years • Privately

endowe d college s and universities have had ma.� hundreds of thousands . United

Fund' agencies , the Red Cross and othe r charitable and welfare programs have had

our support . But our gifts aren't all six-figure gifts . Many are for $25 and

$100, and some for $1,000 or $2,000 .

It has been our philosophy that we will support those programs which our com-

munity ne ighbors believe in and support . For example , it was demonstrated that

this community would underwrite new facilities at Carver Center - and we gave

. $30,000 to that $250,000 project . - 4 -

But there are many othe r way s we can give things to people . Country schools and the Human Relations Commission Office and little basement churches and others have small budgets . When we have surplus wooden desks and chairs -

of little value as trade -ins - we give them to the se worthy organizations .

We give away old typewriters and research instrument s that are out-of-date - even air cleaners to the Civil Defense people for breather tubes for bomb

shelters .

I said we support the United Fund . The Foundation does this and does it sub-

stantial� . A number of years ago we began to feel that employees would do an even better job of charitable giving if they felt one great ob jection could be

overcome . We had already jumped one hurdle when we said we 'd solicit them o�

once a year .

The big problem was that they were being asked to give both in their home community and at Pe oria wh ere they worked . After a good deal of study , we hit on the

Caterpillar Employees United Communities Appeal, which works with home-town f t:� ,p. S��R.6)s-<'J Chests - to their great satisfaction - in the arithmetical allocation of employee

gifts to all 24 Funds in the six counties whe re Caterpillar people live .

It is almost a full-time job from Au gust through November for Bill Watson to handle all the details of this complicated program, but it has made employees much more contented - and it has certai� tied our neighbor communities closer to us - to have CEUCA . We think we have made many fine and close friends .

If you want real proof of employee satisfaction - let us remind you that employee

gifts have , every ye ar since CEUCA started, subscribed more than fifty per cent more dollars than they did before UCA . - ) -

Many others of our activities mean personal contacts . Plant visits are, of ne ce ssity, personal visits - and ne ighbors outnumber customers about three or four to one in a year' s time . Our plant visits have alway s been tailored to the individual 's interest . We have ne ve r had the memorized speech . Our escorts are truly hosts - they act and dress like management men and they talk with authority because they are trained for at least three months before theY' are given important customers as , the ir gue sts . It is the close , personal touch - the last ten per cent - that make s the difference between friendship and ac qua intanceship .

We are not now doing it - but I am hopeful that we will again someday set up to take every man' s family to his department - and have them here with him for . a meal. ' These are the kind of "one-at-a-time ll activities that we think are mo st effective . After our last family visit program, we had the feeling that

� wives would be hard to convince that this was such a 'hell-hole t to work in .

There are, of course , a score of other things we can do to develop understanding .

We can find Caterpillar people wh o will man science fairs and judge exhibits - we can and do take underprivileged children to our Christmas parties .. we can and do invite newcomers like clergymen to have lunch with us - each of us in

Community Relations belongs to a service club - for the contacts it brings us . and the opportunities it gives us to schedule Company speakers at appropriate t1mes . Many of our people serve in church activities, in political and Board

of Education assignments .

If same fine community group - a nonprofit organization - want s us to provide

a speaker .. or just want s to borrow a projector and screen .. or a slide projector ..

or a film - or a public address system .. we have the se right at hand . In the - 6 -

37f well over a million people have sat in audiences whe re our speakers or equipment we re in evidence . They've seen, in letters a little le ss than a foot high, "Caterpillar Tractor Co ." across the base of a screen . They know we 've been of he lp to them .

One other thing we do to keep our ne ighbors informed is to let them look over our shoulder at the excellent pUblications we enjoy. On special issues of

FOLKS and NEWS AND VIEWS we mail to the eight thousand opinion molders of the area, teachers, ministers, busine ssmen and others . Sometimes we mail to a selected 600, or an even finer selection of 100 . This is an effective way of keeping contact, too .

Almost everything we do, then, is aimed at face-to-face contact with our fellow employees and neighbors . Our purpose is to develop some liking for Caterpillar -

to make folks know that this is a company of people who believe in and . support this community - just as any other good citizen would .

There is one thing certain ab out our jobs . We do not have the notion that we have done more than get agood start . We are always finding new ways to do a better job . We welcome ideas . We welcome help . We are only a dozen people -

there are twenty thousand needed for good will ambassadors - and we base our program on that fact . I'lJIlT,TC /\YF!\IR-; GUIDELINEi�

Soon a.ft er th c Public Aft'.']. ir:; D" prl(·tmcnt wa r> formed tn 191)9, 8. sct of quewt',Lons and ansvers vas a:��;c'mbll:d in rc[; pons(; to :inquLr i c::; from plant :\ . 1'o('tay 1:.h (::;0 guidelines) for the most p:wt , c ont inue; to be the foundat ion of Cat erpillar 1 s program . With some minor chang es , they are again offere'd as a brief re -statement of the general principles upon wh ich public affairs activities in all Cat erpillar locations should be bas ed :

1. "m at are th e goals of :pubHc affairs at Cat erpillar?'

" /1" lic·tLt' I' , \. 1',1\1'1' -pub ! i (� "illq'1r(':::: i (>11 of CnLc:rp il'l ar 1,ih n.t vm n,Y'f.' ,

\� h� \ \. \'J ,) \'11 1 I ti , IV1ir1 .1, IV (: 111·1 i I)II , : •

' b. Bcttm' lmd crntn.nd ing 0[' l;hc 1'lI.ct, VIC arc do1ng bun:Lne:::s in worlil marl\:et s.

c, Better und erstanding of the b,us iness viewpoint , on important national and state legislation.

d. Bett er 1md erstand ing of bus ines[-l economic pr inC iples .

e. Improv ed communLty attLtu(1e towarcl fa ctors 'wh -L ch m8.ke scttlf;ment and

grO'l.,rth in a given country, stat e or locale nttractlve to 'bu:J Lncc;\s .

1'. Increased commun ity confi dence jn and good will towa.rd the Company, its operations and :i ts pe ople.

g. Great er ind iv1.dual participat ion in public affairs .

2. What 1.S meant by the term , bus iness climat e?

A 'commun ity 's bUc)'iness climat e can,be (1 efJ.nec1 as the net re sult of al l the ' "external " f(teton: that. affect t: hc con!:. anel car;c of (l oing b\w :L ne:1 r� in thAt. arC':'l.

3. lJhat are th t:'H(' "cxtc'l'nn.l " ['nctol'H 'i

They are LL stc:d -- broacHy -- below. Most of them are to be found on any plant locat ion survey form . The main point is this : Sinc e th ese factors are important dollar-and-cents ' cons iderat:i ons when B.new plant site is being sought , th ey ought to be equally important aft er the plant is established , and throughout the course of it s existence.

a. Community progressiveness.

b. IIonest , eff:ic:ient government and fa ir taxes .

c. Good labor-management relat:Lons .

d. Ava ilability of skilled employees.

e. Fair and reas onable wage rat es . - C- -

39 f. Good scrViCC[3 [lnd J'u,c:i LLt Le[·: : L'irc, poLice, utH. :Lticf3, Gtrcc::tf: an(1 highwayc; , and tran�' port;d;:ion.

g. Gobd schools, churches and recreat i onal facilities .

h. Evid ence of bus iness citizenship in area affairs .

4. What is the difference between pa.rt isan and nonpart isan , pol itics?

RLrti nnn pol it ic[� has to do w:Lth pol itical part:Les, cand :Ldater3 . and campaigns . Bas,ically, it je; Democ rat 'IS . Republican. rrh e Company yhould not ancl largely cannot , cmdcr the law, take part in partisan matt ers . The Company should not become Ldent ir.Led with any pol itical P.'l.Tty .

Nonpartisan polittcs, on the other hand , is the field of issues as opposed to, that of cand idates. Here we carl and should take part 'as a Compariy, with9ut fear of controversy and without referenc e to the .positions taken by any pol itical party.

5. Does any part of .our field of interest relate to partisan politics?

Yes ' , " as al ready mentIoned , the Compnny encourages all empl oyeei:l to take rart :i.n part isan . affairs in accOnlaneG with their own pers onal rarty preferences . , ' 6. What are some of the ways through wh:Lch empl oyees can be encouraged to pa rt icipat e in part i san po litics?

a; Prov:i.d ea good . atmosphere ... just as is done in regard to community activities such as Un ited Fund , Boy Scouts, et c. Give recognition and ' enc ouragement ... urge key people to set a good example' ... allow reason able time off in keeping with Empl oyee . Relat ions Letter 2:19.

b. Prov ide i.nformation On issues and cand idates . Give employees ;the facts on local , stat e Rnd nat i onal issues . Where appropriate -- that is, where information from other sdurc es appears to be lacking -- provide informa tion on cand idates . ( Note: Th is could, for example, be in the form of "thumbnail sketches " of, all candidat es for a particular office. It should not be selective or in the form of an endorsement ; as already

mentioned, the Company- ' does not want ito' endorse cand idates. ' I • )

·c . Encourage political contribut ions by individual empl oyees ... to the part ies and candidates of their choice. Good government requires the election of good people;, the election of good people requires effective campa:igns; effective ' campaigns require money. When a perS'on cont rIbut es to 8, camprl.ign, he usually becomes more :i.nt erested in it . So promote the :t dea. ... anel facHitate, wh ere pos sible; ( Note : the "facilitate" is a c1 el i c Rte propositlon, n.�3 you know . ) rfuere :i s no s:ingle best answer. Any plan lnt en(1 nc1 for broad expOfmre nhould be fa :i r, biputL san and acceptable to most employeeEl . In any event , these three rules must be ob served :

1). An empl oyee should not be solicited by his boss . 2). He should understand that the subject of wh ether or how much he gave will be treat ed as a personal and confidential matter. - J -

40 3). Ilc Hl1uuld JloL 1) (' ":prc:::;ur(�d ." ']'he Corrrpr.H(y c}D.iJ orr ', cr: thc; JrJ ca of polit ical [jiving i.n. general , but not any upce:Lf.i.c campa ign .

d. Oet out the vot e:: . Ave::ragc U, 8. vot er-participat ion :in federal elections is very lo'w , when compared to other countries . Urge people to register .... to vote in general elections ... and especially in the primaries . Primaries are the forums in which peopl e can make sure their ovm parties are putting forth the best pos s ible candidates . "

e. Support "practical pol itics" training programs ... designed to in�rease individuals' und erstanding of and interest in the pol' itical and governmental processes .

7. Of the many "practical politics" cours es ava ilable, which of these courses, ov er-all, seems to be the best one?

After a study of many programs , the U. S. Chamb er course, . "Action Course in.

Practical Pol itics .• " still appears to be the best of the lot ... it is eas iest

to administer . . . nne1 th e lC(1,f,t co::: tly. In some communities, tile local 1\s 80- : '

c:int:Lon of Commer,c c haL; given :Lmpr�tun aml ci :i. rcc:tLon to pl' omoliJon of the courroe.

I0:: pt)r�Lcnc e hD,,: nhown , .. howevC!r' , tl1nt wh JJ.c rCflponn l� in g()o(l at the outsct, j t becomeG incrGl,n lnc;ly more d-Lfl'leulL to cnC OllrD{';C , onrollrrwnt in nuch commun:lty cours oro . A no,,, approach wh1ch hn,:: uhown out utand:tng rcsultc i.n coveral plant locations is the in-plant off- uh.U't courn c. �.'0 (In,t e , n,Pllrox'Jinat cly 1200 Caterpillar people ( includ :Lng 11·12 weel{.ly salary and hourly employees ) have' compl et ed political education \-rorkshops . The Company \-rill share reasonable course costs on a 50 - 50 basis with any empl o,yee enrolling .in one of these workshops .

. 8 . Suppo sing a Cat erpillar empl oyee runs for and succeeds in becoming el ected to a state legislature or the U. S. Congress . 'What then?

He should apply for and be grant ed a formal leave of ab sence �s definea in Elnpl oyee Relat i'ons Letter 2:19, At the Clos e of hi.s term of office, he should return to worl<: .,,' or, if successful· in being re -elected, apply for an extension of the leave. Consistency re�ui res that if an employee is to be grant ed a Formal leave to hold such electivc 'office, then his ' time re�uirement s for necessary campaigning ' for the same offi c·e must al so be considered . However, unlike the periqd ,'of service of elective office, ' the campaign period is diffi cult to define, and is often mad e up of widely varying:, time re�uirement s. It is the Company 's desire to limit the und e sirabl e effect 0:[' such variat ions on ComIK'1ny work schedules, and to av oid s1tuat :L onD ,.;h ere an empl oyc9 :['rcquently leaves or returns to \-rork on short notice. A.c e or\l ingly, the employe e-cancU clate should bo en couraged to· care fully cons:Ll1er h1s campRign needD well :in advance ·6f the c,ampaign period . .. and then to apply for a Forn.al. leave for the ext ent of such period . Beyond this po int , reasonable time off can be given for special occasions and events that may be difficult to anticipat e in advanc e. An exampl e

might be a local visit by a nat i onal dignitary of the cand. idat e 1 s party., Informal leaves of limited durat ion may also be appropriate in certain cases . But once again it should be emphas ized that the Company desires to plan for such ab sences as far in advanc e as pos sible , in order to avoid ups etting work schedules in factories and offices . - )1 -

, 41

Al} far ;].:3 norq nrti �:all al'[',t LJ'�; (:unccrnC'd ql wr:t ion No , )1 fur (1cf LnLt:LC.i 9. ar<� (�;cc Y2.h :::l2:��(��;omp:tn::L,Ilu Ln Lh Lr: fieLd '!

Po 11cy Let LL; r No. 31� an cwE;rs thic qu estion in detail. In brief:

a. Analyze and take pos itions on issues wh ich have an important relationship to Company operations , .. approaching issues, with cons iderat ion of their effect on the nation, ,as well as their effect on the Company .

b. Promote the Company 's, pos it ion through empl oyee publications and other fOTIns of commun j. cat ion , .. with appropriate administrat ive approval as . required . ,

c. Communicat e ,-l ith lec;islators and appointed 'officials to create better mutual und erstanding of viewpoints and to Clarify effect of propos ed legislation on Company operat ions . Follow and report ori 'pos itions and performance of elected and appo int ed officials .

d. Encourage employees toward increas ed economic and pol it ical education.

e. Advance Compsmy beLL efs 'wl th trade nnCl bus :incfJs asnoci.a.t tonB ... help keep the pnbLLc nffn Lrs 0['1.'01' [;[1 of [HICh D.u[lOe i.nt LonD cft'oct:Lvc and meanIngful .

10 . 'l,mnt can n, :e1ant do to lnlElcmcnt thnrlC nctlv it:leo "

A first step is building and ma intaining good personal relat ionships with lbcal, state and national represeptatives .\ .:this can be done in several ways , includ ing periodic luncheons at the plant with key plant people . ," It' is desirabl e that representat ives be reas onably familiar with Cat erpilla� facilities and peopl e ... so that the Company 's best interest will be a part ' of the thinking they bring to bear on any given issue .

11 . Does this mean cand idat es should be given free run of a plant just prior to election?

No . We want to promot e better mutual und erstanding of each other 's problems . This can be done at any time ... but is probably best accompl ished between campaigns . Cand idat es should not be allowed to distribut e pol iti cal cards and , in general , pr'omot e individual campaigns on -Caterpillar property during work hours .

12 . Supposing a cand idat e asks for empl oyee ma iling lists?

To satisfy such a request would amount to partisanship. We do not want to give out such lists at any time.

13 . What about us ing a plant aud itorium or some other Company- owned meeting pl ace as a forum for political cand idates ' during campaigns ?

Can be a good idea ... prov id ed that all part isan groups , wh ether national or local , are given an opportunity to participat e. To db otherwise would amount to part isanship. - ,.) -

42 14 . Suppos ing an issue , rather than candidates , were involved ... some s'ort of local referendum, for exampl e?

If Ccrt erpillar has tCl.l�en a p08 Lt :i on with respect to Quch an :i ssue, :Lt YT01).ld be all right 1n most r� a;3 en to uc c, n. Compnny meeting ' plnc e to h(�lp promot e our side of the issue . II' the ComIlany har; noi; takr::n a pall tt ton, both 8i (188 should be given an opportun:ity to participat e :.. - as set :forth in the answer to que stion No . 13. 15. As far as taking a pul?lic stand on an issue is conc erned, what is first required ?

Nat ional and stat e iscues should be referred to the Publ ic : Affairs Department for study and research . Local issues ( city manager referendum, school board proposal , etc . ) mal be referred to Pub lic Affairrs, iif you: believe the. Compa.ny. may already haVe accumulat ed some thinking or experi enc e in the same field •.

16. What ab out tho plant legislat ive comm itt ees?

These co�:ittees have proven to be effective: firpt" f�om the standpoint of screening f},'variety .of propos ed legislat ion ... second , for the providing of people to testify before representati'\tie bodies on part icular issues ..: and

third , for generating letters and other communications on such issues : Com- " mittees should be made up of department heads, or their representat ives, from departments most likely to be affected by legislation . .Recommendat ions of , these groups should be transmitted ' to Pub lic Affairs Department .

17. What has been done to facilitate communication on legislative matt ers? ..• ' '''' I "' i

Th e prinCipal referenc e is the "Public Affairs Notebook , II wh ich is in the hands of all plant Legislative Committee members , depot managers , and others designat ed by plant managers .

18. 1fua,t about Company participat ion , i'n bus iness and · trade associations concernet1 with publ ic affairs ?

The target here is not necessarily to broaden participation ... but rather to adopt a � pu rpos eful view of our memberships · in such organizat i ons . They exist becaus e bus iness ent erprises, such as . Caterpillar, believe they can perform a valuable serv ice. E.'xperience has demonstrat ed such organizations will "miss t.he mark " wit,hout the partlcipat ton ahd guidance of th eir member firms .'

19. As far as the law or self-imposed restrictions are conc erned, what a!re the basic "cannot s" and "cans " with referenc e tq the Company itself?

a. The Company cannot make a cont ribution or expenditure in connection with the election of a candidate.

b. The Company can do all of the things listed under question No, 6.

c. ,'The Company can dist ribut e informat ion on .an :issue, and defend and promot e ( or oppose nncl crit:icJze) a part icular sLde of tbat. iS8ue. - 6 -

Prohib its any corporation whatever, or any labor organization, from making a cont ribut ion or expenditure in connection with any election at which Presid ent ial and Vi ce Pres ident ial elect ors or. a Senat or or. l\epresentative in, or 'a Delegat e or Resident Commissioner to Congress are to be vot ed for, or in connection with any primary elect:ion or poLitical convent ion or caucus held to select cand idates for any of the foregoLng offic E:)s , or for any cand idate, pol itical committee, or other pprs on to acc ept or receive any cont ribution proh:Lb it ed by thL2> sectLon.

., ')' b. . The Hatch Act

Prohibits any cont ribut ion of money ' or any other thing of value to anY 'pol itical party, cOYnmitt,ee or candidate for public office or: to any person for any pol itical pur pos e or use by those who have ent ered into" Ctny contn'1.ct wLth the Un tted Rtat cs or any department or agency thoreof, 01thor for trw rcmll. LU.on of pcrnonal ncrv Lcc)f,: or flxrn i. r:lhlng �:\ ny mated:!} , GU}Jpl LcD, or cqu iT1l1lCnt to the United nLaten or fj,ny l'top.' 1.rtmont or agency thereof, or sel1:Lng any lanel or buHding to the Un ited �) tates or any department .Or agency thereof, if payment for the performance of such contract or payment for such mat erial , supplies, equipment , land , or building is to be made. in whole or in part from fund s. appropriated by the Congr'ess, during the period of , negotiation 'for , or performanc e und er such contract or furnishing of material , supplies ,. equipment , land , or buildings .

if ,M>PENDIX II

1t1lBtll " The:' material in thi s appendix is a sample letin

�ed in the · Public Affairs No teboek on the subject of government medical care . 5 PUBLIC AFFAIRS I 4

C ATE R PILLAR T RA CTO R. CO.

January 26, 1965

MEDICARE

The following letter from Vice President R. T. Kelley has been mailed to members of the Hous e Ways and Means Committee and to all Illinois congressmen . Bulletin recipients outside Illinois are urged to contact their congressmen, as soon as practicable, along the same general lines.

January 26, 1965

Dear

May I point up a significant feature of the Medicare issue whi ch appears to have largely escaped the attent ion of the press? I refer to the im pressive number of firms who already have comprehens ive hospital and medical insuranc e plans for their own retirees .

Caterpillar, for example, provides such benefits without cost to its 39,000 U. S. employees and their qual ified dependents. These cost -free benefits are available to 90% of our currently retired employees, ana:- to virtually all employees who retire in the future.

Under Med icare, each of our active employees would be required to pay taxes during his working lifetime for after-65 medical benefits that he is now entitled to without cost. His individual tax of $2 5.20 a year would very likely increase with liberalization of this program over the years .

We believe the Caterpillar example is quite pertinent . When the effect is mult iplied by the many businesses and industries that have such pro grams , more than 50 million U. S. workers would be affected .

In addition to our own medical insurance, we have given consistent support to community, state, and national programs providing health care for the needy aged . It seems to us that a public program pro viding limited benefits to all aged (regardless of financ ial need and the existence of other coverage) reduces the government 's ab ility to pay ad equat e benefits to thos e who really need such protection.

These arguments are not mot ivat ed by Company cost factors . At most locations , Caterpillar 's liab ility for health insurance for retirees would be automatically reduced at the passage of Medicare . Increased Social Security costs would then be roughly balanced out by this reduction in our insurance costs. - 2 -

We believe that a program, complet ely detached from Social Security, providing low-cost or free comprehens ive health insurance to the needy aged, wow_d be a far better solut ion to the problem ... from the long-term standpoint of both employees and employers .

Sinc erely,

/ s / R. T. Kelley

Not e: The following congressmen, listed by home state, are members of the Hous e Ways and Means Committee who have already been addressed directly on the Med icare issue in the letter above . Dupl icate correspond enc e should therefore not be directed to these men . Cal ifornia : Rep. Cecil R. King , Rep. James B. ut t; Florida : Rep . A. Sydney Herlong , Jr. ; Georgia : Rep. Phil M. Land rum ; LOUi siana : Rep. Hale Boggs ; Missouri : Rep . Frank M. Karsten, Rep. Thomas B. Curtis; New York : Rep. Eugene J. Keogh ; Pennsylvania: Rep . George M. Rhodes, Rep. Herman T. Schneebel i; Wisconsin : Rep . John W. Byrnes .

-- FUBLIC AFFA IRS DEPARTMENT DPgVIX In

!the ma.terial. in thi s appendix consists of newspaper articles. The arti cle from the; Wall Street Jio urnaJ. is in

Cludecili as an example of the kind of 8.i tuation that an effective publ ic relations and publ ic affairs pro gram should avo id. Edi torials from the Peoria Journal �. and the � Letter of the Peoria kssoeiation of Commerce are in cluded to demonstrate how the activi ties of Caterpillar as

a "corporate ci ti zen'" were re ceived in one instance•. , 48 " " "

• ... •". f;III " '; ,.' " " , " ¥;.. ' \ t" 'rhe'earl'i. er \Jithe;;s�a; espiiCi�lIy Mr.·. l)Qn:'- , T1l� GM.ChfYi11er,: :Sh!?wlng i5; do!fu!,�·'·lln., � ' " r,A " ' , , n�l', a4l0 �l1dUlged in the,: n9�tly luxury ot J ortllneJe f9X' them p�ca,lls¢, it W!),Iil $q" un.f :..,'fftO· E' "X' e e a (.t:L1<"" / ,,' , , ..:..;J ec u' " Vt;-,J displaying annoyance that the lawmakers c:01}ld f,',,; "" . " ', unwelcome turn. But eVl;tding -a, query i\l vasV. lll1ce ah()wed be ly easier at a GM press conference, as .the mollifi �d. Indeed, " b:1 the ,weel{Cl'l d , G:rvr>g' j ·Uu'; '1";'t' "OW'n , ,.--va" 'u-''s ' e'' i l earned than 'at Congre O�:S Y &'t 4 U. t� l s:' '��:i�U � tee�� n� �� a ::� � �� ' ___" " " t a � : �:� �� n e ::--= ,,' . '" ' "'" ,' , """ ",.,',"" ,"V,, , I Sen, Ribicoff ,a concillatory leUer ',, , " ,.,j",!;_,,_, �;: accom{ �, __ __ "" ,., ,'."",,,. , ". _ =��:�When Sen: c::�� J{ennedy asked for GM's 1964 �'_,:" ": _ " C lil i e �' P.ftni.ad ': by ' a long-det.ailed accounting ' :By' DAN ORDTZ ' , " [ profits, a preViously p ublished fig re pr si 6� safety' related spending. 'rhe grand total, Mt,' �'i c" .,WASHlNGTON-So dismal is the auto in�' i .dent James RG che tried to. argue that it was the - Donner, .wrQte, came to $193 million lait; 'dustry's performance at Senate's safety r l1:0t 'g:erma�e . , The �enator , p<1l'si'ited and uI year. of e erday afternoon nothing'hadl hea,rings that the chances of Federal legisla; hroately Mr. Donner snapped, "I will have' A� y st ' , n the field h markedly. increased. 'I t aL ' c :," ''\'Vh ,1\1 . bee n h eard from Chryslcl', '., t1on .i ave o ask one my. asso iates en r . � , . GM's " critics ' ,on the subcommittee Of the t hrM manufacturers that h ave tes' : Roche then gave the information, Sen Ken el be more impressed by the company's: 'tiffed so , far; �'()nly little , American MotorS nedy dre w the imfavorable comparlsori'be- llk y ' l'etreat than by �he figures themselves, Yet. ,Corp, emerge;; with cre(ltt. Of General Mo: tween profits and safety spendIng that the i ' �here'!\I no queshon �hat, within the l\mihj, ,tors , Corp. and, €hrysler Cql'p. one Senator executives knew was . coming, . Im o e. ! , p s, d by competitIVe pressures and the; ',. l.'efleets : ''1' rCfl.lly wouldn't have believed After Mf'. Donner sought to ' evade ' com. tesultu:\g Obse�8i�n . with styling, Detroit: , they could be so bad," AmI Ford Motor Co.,' menting on It Cornell University study ab6tlt , noes have a S( liClt.ude for safety. It'a their;' " appearing. tomorrow, may find its �'hat cal''' the fallure of GM door hinges, Sen. Kennedy : faUure , to ntal11�es� �hHl concern ;approach to' advertil';ing the most attractive cut in tartly to insist, "I think. YOl1 can an- . ly t at maltcs mfIl11b ly, probab e Op- : more ;t�rget of' aU to the Senate Gov-ernment i s,,:et my question. Isn't the Cornell study . � � r. Jj)on� ' thm.. . t/'le a,u�o mN1WI" h m,pst. ,;c ll.v'otd,' eratiolls Subcommittee on ExecutiVe Reor. , cntical of. GM?" Clearly irritated, M '. e1',a.l i�structlOna ,?n hQ\';' � 'b:�i ,lff . e!l.r�:. gap.�zation. The,subcommittee is studying the ne rep ed, ,. "Oh,J I. suppose. so." Sen. Keh�:: ' Ii � U . . :,�9v:ernment's role. in highway . safety and neely coldly commented : "That is not.,the·' ' attitude, ' . ... Clearly o,M and Chrysler underestimated . fired. Iri ,one exchange , Sen. Kennedy asked e d: :-:,the :opY'o�itioll and failed to prepare ade_,· about : xpendit�res( on s�fet y. res�arch an . . . Mr. Donner. saId, 'We don't know, Senator,. . june.' 2(), . q\lately� Moreover, their executives antag. [ , ; 1965· onized bot.h subcommittee cha.irman Ribi. how to add thes� things up.'" Ii'age .14 ' !�.cotf (D;, COrin,) and the even more formid- .. Feigning . astonishmen t, 'Sen; Kennedy a.'tked, ��Genel'ltl Motors how to " aola Sen. Rohel't Kennedy of New York. Yet 'doesn' t know' " < '.. : the hbstilQ,.Con g:re'lsiQnal reaction evidently;, . add' these matters up ?!!

I I isn't adding," retbrted' Mr; ' Donner •.: ::\c:am� a1! a llhocking s1Jrprise '.to the auto ) " t . ""t is dividing!', ; ...... " .. ' , ... ' :" . ..', I " . r��i}ites;'; \) . Sen Kennedy .quickly 'rem�nded Mr. Don·: .' . i:" ) ,At the: .outset, both c.ompanies atternpted n'er that. the.'word "add" w' . as. hi'S o· wn. V'to :seize the offensive 'by rmeans that were . '. . . . � tr;\nsparently obvious. Not WeU Prepated .. . , . ; GM 'board chairman ,Fred�ric Donner, . Finally, for men who guide the destlnl.es r.w,hose owIt salary and bonus last year to- of (:orpoi'a,te giants, the GM antl Chrys!er ex· t taled $833,298, grandly announced the' dona" ,ecutives were astonishingly ill,prepared, 'sug-, '. :"tlon of $1 mi1lion over the next four years to gesting to Sens; Ribicbff and Kennedy a less- i . !:� the Mass\tchusetts Institute of . !iechnoiogy than· compelling ihteJ:est .in the " subject . . of < !, forastudy of traffic accident statiRtics. Yet ,safety. �gaJn and again Sen, Kennedy sought', ! figures ",.the .daci:'11ort to malte even th at moriest !loi1' . on. s8,fety expenditures, but their im r ssive ls, and public reI a- , '� tdhUtlorl, 'Mt',. Donner conceded under ques, ':'pe ;lineup of off!Cla ' . on ide co n :Hlxplana-: . il,g W!l.B rt't g,rrived at until 8 ftcr the' sub· tt sn s uld 't. provide any. !:;.' tlon M fficia.ls . why had,. ,G · n . to tiona of It's so difficult to calculate such c;Ccol1.l,m. ittee. asked . appear...... in i w . ,. ;' .>, outh\'ys were unconvincing, especially v e ,' The Ignored Moek�Up "0' ' " " , 'of Detroit's penchant for' cranking out fig· Chrysler " vice president arr hese H y C ., ',u res when :tney'r e' more self-serving-the aI prough pr oudly annotll1ced that his a ( ,191\& c rs 'Ie, gedly astronomical cost ot swit,ch, ling to the' <, Will have ,�'!i new concept of door latch reo " ' metria, system o�· , measurement,' for eXarih, ' I, I, ea,sa' !J'Iech,anism"'� whereupon a p' ress agent, , pIe, or the daimed investment in" bringing ,' ," U lWi a at " ni ted and with no further ,exnl n ion out , each hew car ' modeL " �;'11'om Mr; Qhesebrough. laid an impressively' , E ' ven the technical experts Vl'rere " weak, "� "m unted o mo ck-up of arm re st and door 'Hal'ry Barr, GM ,vice president In 'charge''of : ,' nan , dJe" on',the desk beside Sen. Ribicoff. The the engineering staff, appeared entirely un- ;i : chairman, with, barely a glance,' had it re- fa miliar with a Cornell University stUdY " " ':tnoved� Whel1 Sen/Curtis (R� , Neb. ), the in� which the company ,had helped finan,ce,. and .qustry's champion' in the hearings, walked fumbled .answers to a number of Jt her, ques- i ' ' over to inspect the gadget he ,couldn;t figure tions , on safety development. Chrysler's Mr. I , , ! , . ,?uthow it worked,. ' ' Chesebr:Jugh, • chief pC ,product , planning, ;! The t""o auto titans. stubbornly refused to didn't know ho"" }orig tlle firm has \Vbrked � ,admit even the jJ:Jssibi1ity that car design on, a collaplSible steering wheel ' or why it � may y t. ' , " .. . play a significant role in the traffic is'n't ready e . . . . ; toll. Thus,. when Alnerican Motors president , "By ttui time they were . fhrough/' Tee . Roy' Abernethy conceded that the product marks . one ',lJub. committee member, "I had. , isn't perfect 1)e. won Mr, Ribicoff's sympa,- ,\1l101'e doulirt'll al'out the Raf�ty of their cars' } hat ;t1: at�:l:!�{gtf;·they . • ,tliY: "You're . the . first witness to a.droit t • .fJt�rtl(l,i';�j,'· .�� ...... � �!;I". ,,'�,l / carscl1lPmetHn� �l!.sh. Y�� i9��hrightn�!l s :i01'J ; fr ; ,, ,.;" rta • �W�.�h� · ii, · ::,\:,,:;, .;. :":; :•. ;;"";�')A, '�',., ·',,'c; " i,.:,.: .§i... : 49 '1 ./' . I

' . 'j. . ..• tt� "'''j:'I{''eafe rpilra�s'' .. ' ffiaVr' riaHVe 1\ei' . . . j'>:: f");'��igrear m�eti�g�f t�� iridris��i�I . �hat �o ' J11��Y c�m.e�' th�tt hey: came :, leaders maklng prodllcts usec:j'by C�tel"�",::::1to� . :nationally�knowii· . firms. of grea t� pillar Tractor Co. this. week. i� :whicl(: stature in so many instances, �d �at , they ,were given a . tremendous.: intro.;, they did n.ot. send "representatIves . a� \ to " t i� ea a� ..... �S $o .often tbe �",se bu,t;th.e ,�oll l1'1��ii duct�Qn . h ar � lts advl!�tage . " " e THEMSELVES. '; ., '" for industrial . sites" was ·unprec dented··, ..... came" '" .... '::1':; : . : :so}ar . as we know here or anywhere r'; That didn't'just happen. " ';'.,);,

' :else� , . ) " , .' ' .' " ,. . :, That came be use , ' ' t8 of tb�, �'kmfui ' . ; It imaginativ� ," . was ' an a9tion��,�: a handling of the arrangements andllla i u fo ' , ,. l : ' treP1endo �,p �s � th�,��e !l�\'\ . ";'<:'; 1 perSortal interest and participation o! ,; , ..�."" No company could�ave, pedoi'tn. e� \':;' President William BlacJd�� beyon�'aj ;� more significant 'service, 'nor' ex· , doubt. It couldn't be done,any. oth��'J ' ,' ' ' .... pressed more realisticallYJts . ties, its" , . , way'� . " , . .. , :: �,� . 'C its. w . ;� oncern, ' and fn the Ii() e . ')' faith 1 �' ,he pr6gr�m wasl clearly artd pow; : ,. c mmunity h c s o ill w i h iHun�tioll C' ':erfuny designed to hammet home in ' ;,� A great deal more than a .. day off . the strongest way possible Caterpmat�$·'i and a few speeches was:involved .iri 'this;:'::"recommendatlon ' that theY, locate new1t " . '. prodtiction�'It had to take tnonths of facilities in 'this area and .that theY i planning, close flttention, and deveIop� . would find it a good place to do 50.1:"., f " mente .'" , . 'This was someone:of povt:: . done .by· ,· ·,It was one ofthose things i'l c·,enow'; �rfuHnfluehee with a �'brotherhoo�" an�'� t no : d s l n . ',company can ". do tha Uin u tria . custonier relationship, a d some

' '. ". . agency ca.,:" , posSiblY,, 111atC;!t.,; bec�us�"'�;;�t;t How'cal1,y�ut()P �hat?' " ".': ��:j�� :� ,., 'only the ma}o� :i�dustrjal " 'co cer,n;' H":" %;�;" /'And . the. ivote tial ,cq s�q1J. nce� �ilf ,; . � ? � : , � ,, ' self, bas the pgsltlqrHrom �hlCh to' act terms of everythmg fro:q1 hOUSIng, :em,<� effectively� ': '�: . ' �so ., \ i'\. \ ployment, s cbools, opportunitY. and.,:\:# , Sorp.ethmg C?f t�e nature of the prep. ; prosperity are greater than could fi9""" J,\ -, aration , is revealed by the ,'single fact.., from any other single act or ,1' , .. _-,_: , ', ' � , , .' '-""l'�ori� �, " ,/1,,, �1p",,�,,Ji l. 'k.,)o,:�ay" ';: ,;,, ,�_:r:< �.�:', a1t�".�;,�7·" j:·'d� :1' ,· ./.'i. ) ,,< '",;":,,&",,�. ,. ;,[:1 ;'�<" "" '�',' ,�:. >': .\-1" t� _ ; :t' fw<�.'��': " � . EORI A ASSOCIATION OF COMMERCE SUITE 307 FIRST NATIONAL BANK BUILDING

PEORIA, ILLINOIS - 61602 A�gu st AREA CODE 309 " PH ONE 676.0755 18, 1965 50

PJE«DJJRJIA ' :!PIlRIlR (Q)(G m::$$ !IDAYl

TUESDAY, JU LY 27, 1965

. . . Caterpillar Tractor Co. has again demonstrated, by additional taQ.gible evidence,

in a positive, constructive manner, their de sire to be good cotporate and in-

dividual citizens in our community.

l On Tuesday, July 27, 1965, Caterpillar was host to some lOO key e�ecutives . r :� ' \ ". l' . '. I of selected major suppliers who spent the day in Peoria as their guests. " I� ,

The event wa s fashioned to demonstrate to their guests the many advantages 'of � .

. the Peoria Area as a place to work, live and operate a busin�ss••• an dto . , . , .:., , '� . suggest to their guests, as it was appropriate to do so, that' th:�re ar� mutual

. benefits tobe gained in having. suppliers more advantageously re,presentednear

'.. ' their principal base of operations.

COJ.l gratulations, and a sincere thank you, to Caterpillar Tractor Co. !

Progress Day will provide for broader indu strial development an d economic

diversification for the Peoria Area.

IvHght we suggest that other Peoria Area manufa cturer's consider a similar

program. One hundred new industrial employees develop s int� 359 more :n�w •

employment opportunities in a community,

# # # # # # (

BIBLIOGRAPHY , ( 52

JBt>oks

Bemay s , Edward L. Public Relations. x, 374 p. , University ef Oklahoma be ss, 1952. !:I1his. is a good basic text on the subject.

Bemays , :J4WlU'd L. (ed. ). The !ngineering 0 f Cons en t. viii, 2446 p. " tlrb.iversity-o? .. Oklahoma Press, 1955. Bernays has oollected several go od ar ticles on the subject and pre sente d them in this book.

Griswold, Glenn. and Denny . (ed. ). Your Public Relations . xix , 6341'. , Ne:w. York :: FunlC'-ail d Wagnalls, 1948. ffihis collection of wri tings is similar to the Eernays ' book.

Eel'!ey , Stanley, Jr., Profes sional Publ ic Relations and Poli ti cal Power . 247tj.;, BlJ.;timor4lu: . The: JohnS Fopkins Press, 19 56 . " An excellent enalysis of the 'political uses oft public relations). Mills , c. Wright.. .!!!!. Power Elite . 423p. , �()OCford;. 1lJInivers:ii.ty Press\, 1959.. ".' Although not directly related to thi s paper, it dG es provide an interesting antilysis of the society that the pro cess de scribed in the paper takes place.

Ran dall , marence B. .... Oreed for Free . Enterprise.. 171'];>., lBbst0ll1: :: ill..tt le :Brown and Company, 1952. . J:lrQvides the .views of an indus try ' epokesman .

Werner , . WiJlliam. Lloydl. !he e-o rporation in . t�':� :&nergen t (:; jAm.fJdtlfan 8:0ci e ti:;:-b41R�. , . mew: 'JeJl''£"andJ EVenston :: EFarpel!"' Ellld .R0W!, 1962 � ' . Jlxe Elll��" analysis of the mo dern corporation and 1 ts problems "in contemporary life .

kticles and Ferio.die;als

"" : cravens, Kenton R. ":A; Wew Force; in�. 1'0 Ii tics , Hi in :JBa.nke.]!" "s IlGnthl..z, 'lhXXWI ., Ai>rilL 15, 1965l. l!� speakS, of the ri. eing influence of business in politics.

. . . ew: lBUsiness and Fo li tics, l'enn , Banm� , Jr. uPro�.. a in Revi I in . Ifarvard . RUsiness Review, 1"01 .. 37/ No .. J". 'Iay/�Une .. ' 19-591., b-14,, 13�142 . ' .' . .�. .... ' .'. :�rt1;tdy, .of the ' relationship betwe en theSe two' . "

spheres,. 1 , �, JIO:l.ly, Fred R." n�blic_ ReJl.ati0ns in Our Own Backyard ," PUblia: R�atione im The Journal , "lau . 3. N[Q. Sl, , '�Reprint. tAUgus'. t, 1194W} llIue:niption 6f the early communi ty relations work at Caterpillar.

ETation ' SIS EUsd.nese. ut(loming:; Bli.gge st Role Av er for :Business, It ilp,1.. 51 Nb . 11, November, :E96 3. Prediction of :ffu.rther growth of busine ss influence in Washington .'\ '

N!e;mnan t Robert A. tltpUblic Relaiid.ons on ain Street, in M Itl Ma.nag�r'113 XeJW, (F'e b;ruary , 1957-) , Reprint; �. •.

Sheldon;, lli>race ".sinessmen Must Into Po li tics ,Be Get t Uf lBUsinese Review, in , Ifarvardi; (Maroh:"'A'pril, 1959}, ' " 37-4#. ' .' . '" " Sheldo:n �e li:1ilJbusl�� ss partioipation in communi ty. and ' poli tical affairs--as a means of self-preservation .

Washington Report. PUblishe d by the Chamber of Commerce of the United States, Vo l., 4 No . 37 , Aug. 2:7, 1965.

'Nnpublished Material

Kelley, Ro ger �" ''We 're S.old on the Importance of PUblic Mfains,.tt .An address by Roger T. Kelley', Vi ce Pre sicllent, Jlaterpillar �et«l'r eo., at Public Affairs Gonference of th e Ameri can Iron and Steel Ins�;j.tute , 'January: 13-14, 1965.

Policy Le tter., No . 34 , JTuly 2, 1959, Caterpillar Tractor Co.

ather Sources

Caterpillar Tractor Co .. " Personal interviews wi th personnel of the Public Mfairs Department .. J)un e 15, 1965, and January 19;66 . . 14, .

____ � Personal' interview wi th :myron DeHaan , Manager of the Public Affairs De partment .. JJuly 30 , l:9S:5 ..

______.' Personal intervi ew with William �lackie , Fre sident � of the Caterpillar Tractor Co . January 25, 1966.

____, .' Personal intervi ew with Roger T. Ke lley , Vi ce President, cCaterpillar Tractor Co .. January 26 , 1966 .