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21/2- NOMINATION OF HOBART TAYLOR, JR.

GOVERNMEN 

Storage KSU LIBRARIES 

HEARING

BEFORE THE

COMMITTEE ON BANKING AND CURRENCY

UNITED STATES SENATE

EIGHTY-NINTH CONGRESS

FIRST SESSION

ON

THE NOMINATION OF HOBART TAYLOR, JR., TO BE A MEMBER

OF THE BOARD OF DIRECTORS OF THE EXPORT-IMPORT

BANK OF WASHINGTON

SEPTEMBER 2, 1965

Printed for the use of the

Committee on Banking and Currency

•

U.S. GOVERNMENT PRINTING OFFICE

53-066 WASHINGTON: 1965
COMMITTEE ON BANKING AND CURRENCY

A. WILLIS ROBERTSON, Virginia, Chairman

JOHN SPARKMAN, Alabama

PAUL H. DOUGLAS, Illinois

WILLIAM PROXMIRE, Wisconsin

HARRISON A. WILLIAMS, JR., New Jersey

EDMUND S. MUSKIE, Maine

EDWARD V. LONG, Missouri

MAURINE B. NEUBERGER, Oregon

THOMAS J. McINTYRE, New Hampshire

WALTER F. MONDALE, Minnesota

MATTHEW HALE, Chief of Staff

WOODLIEF THOMAS, Chief Economist

JOHN R. EVANS, Minority Clerk

WALLACE F. BENNETT, Utah

JOHN G. TOWER, Texas

STROM THURMOND, South Carolina

BOURKE B. HICKENLOOPER, Iowa
NOMINATION OF HOBART TAYLOR, JR.

THURSDAY, SEPTEMBER 2, 1965

U.S. SENATE,

COMMITTEE ON BANKING AND CURRENCY,

Washington, D.C.

The committee met, pursuant to notice, at 10 a.m., in room 5302,

New Senate Office Building, Senator A. Willis Robertson (chairman

of the committee), presiding.

Present: Senators Robertson, Sparkman, Bennett, and Tower.

The CHAIRMAN. The committee will please come to order.

We have with us today our distinguished colleague, the senior Senator from Michigan, Mr. McNamara. I understand that both he and

the junior Senator, Mr. Hart, approve of the nomination of Mr. Hobart Taylor, Jr., of Michigan, to be a member of the Export-Import

Bank Board.

The committee will be pleased to hear at this time from Senator

McNamara.

Senator MCNAMARA. Thank you, Mr. Chairman.

It is a great pleasure for me to appear before your committee to support the nomination of Mr. Hobart Taylor as a member of the Board

Of Directors of the Export-Import Bank.

I have known Mr. Taylor inpublic life for more than 15 years in

Michigan and in Washington. I have always found him to be an

astute, intelligent young man of excellent character and dedicated to

good government.

Mr. Taylor has had a most distinguished career since coming to

Washington, putting his legal talents to work on many difficult

problems. His efforts gained him great respect.

Since May 1964, of course, he has been associate special counsel

to the President, a role which has given him an excellent opportunity

to know and to help formulate the position of the administration on

many important matters.

With this background I am confident that Mr. Taylor will serve

With distinction on the Export-Import Bank.

I hope your committee will consider his nomination and report

favorably to the Senate.

Thank you, Mr. Chairman and members of the committee.

The CHAIRMAN. Without objection, I would like to have printed

in the record at this time a letter from the junior Senator from Michigan, Hon. Philip A. Hart, who hopes this committee will favorably

report on this nomination.

(The letter from Senator Hart follows:)

•

1
2 NOMINATION OF HOBART TAYLOR, JR.

U.S. SENATE,

Washington, D.C., September 1, 1965.

Hon. A. WILLIS ROBERTSON,

Chairman, Banking and Currency Committee,

Senate Office Building, Washington, D.C.

DEAR MR. CHAIRMAN: Having known Hobart Taylor, Jr., for

more than 10 years, I hope you will not think me presumptuous in

expressing the hope that the committee will recommend favorably his

confirmation as a Director of the Export-Import Bank.

President Johnson, in nominating Mr. Taylor, again demonstrates

his determination to recognize merit and ability. It is my hope that

my own schedule can be rearranged to permit me, with your leave, to

present Mr. Taylor to the committee at the hearing scheduled for

Thursday. In the event, however, I am not able to do this, I hope

that this note may serve to express my great confidence in and respect

for the qualities of mind and character of Hobart Taylor.

Sincerely,

PHILIP A. HART.

The CHAIRMAN. Are there any questions about the qualifications of

this appointee to serve as a Director of this important bank?

Senator BENNETT. I had the privilege of visiting with Mr. Taylor

in my office and expressed disappointment that he had no banking

experience. But I have decided he is perfectly capable of acquiring

it, absorbing it when it is thrust upon him, and so I have no reservation

in voting for his confirmation.

The CHAIRMAN. Are there any other questions?

Senator TOWER. Mr. Chairman, I would like to ask Mr. Taylor—

as you know, Mr. Taylor, the Export-Import Bank is one of the few

arms of Government that actually makes money, and it has done so as

a result of, I think, the implementation of sound banking principles.

I assume that you would intend that the Export-Import Bank

would continue to be operated along sound banking lines and would

continue to be a revenue producer.

Mr. TAYLOR. Yes, Senator Tower; that is one of the things that

has attracted me to the Export-Import Bank.

Senator TOWER. Thank you, Mr. Chairman.

I would just like to add that although Mr. Taylor comes here

heavily disguised as a Michiganite, he is actually a native Texan. He

graduated from Prairie View State College in Texas before he went on.

to get a graduate education elsewhere, and his father is a very prominent citizen of our State and was a good friend of the late Jesse Jones.

So that background I think will certainly recommend him to this job.

The CHAIRMAN. Well, I am glad to learn that this committee is

going to be unanimous. We will insert in the record at this point

a biographical sketch of Mr. Taylor which I hope will include the fact

that Texas is entitled, as well as Michigan, to some credit for what he

has achieved.

And we will also put in the record section 3 of the Export-Import

Bank Act of 1945, which describes the functions and duties of members

of the Board.

(The biographical sketch and the excerpt from the Export-Import

Bank Act of 1945 follows:)
4

NOMINATION OF HOBART TAYLOR, JR.

Born: 1920.

Education: Prairie View State College, Texas; Howard University; University

of Michigan.

1944: Admitted to Michigan Bar.

1944-45: Research assistant, Michigan Supreme Court.

1945-48: Private law practice, Detroit, Mich.

1949-50: Assistant prosecuting attorney, Wayne County, Mich.

1951-61: Corporation counsel, Wayne County, Mich.

1958-62: Senior partner, Taylor, Patrick, Bailer, Wexler & Brookins (law

firm).

1961-62: Special counsel, President's Committee on Equal Employment

Opportunity.

1962: Executive Vice Chairman, President's Committee on Equal Employment

Opportunity.

1961-63: Special assistant to Vice President Lyndon B. Johnson.

May 1964: Associate counsel to the President.

3

BIOGRAPHY OF HOBART TAYLOR, JR.

SECTION 3 OF THE EXPORT-IMPORT BANK ACT OF 1945, AS AMENDED

SEC. 3. (a) The Export-Import Bank of Washington shall constitute an independent agency of the United States and neither the Bank nor any of its functions,

powers, or duties shall be transferred to or consolidated with any other department, agency, or corporation Of the Government unless the Congress shall otherwise by law provide.

(b) There shall be a President of the Export-Import Bank of Washington, who

shall be appointed by the President of the United States by and with the advice

and consent of the Senate, [who shall receive a salary at the rate of $28,500 1 per

annum,] and who shall serve as chief executive officer of the Bank. There shall

be a First Vice President of the Bank, who shall be appointed by the President

of the United States by and with the advice and consent of the Senate, [who shall

receive a salary at the rate of $27,000 per annum,] who shall serve as President of

the Bank during the absence or disability of or in the event of a vacancy in the

office of President of the Bank, and who shall at other times perform such functions

as the President of the Bank may from time to time prescribe.

(c) There shall be a Board of Directors of the Bank consisting of the President

of the Export-Import Bank of Washington who shall serve as Chairman, the First

Vice President who shall serve as Vice Chairman, and three additional persons

appointed by the President of the United States by and with the advice and consent of the Senate. Of the five members of the Board, not more than three shall

be members of any one political party. [Each director, other than the President

of the Export-Import Bank and the Vice President of the Export-Import Bank,

shallreceive a salary at the r ate of $27,000 1 per annum.] Before entering upon his

duties, each of the directors shall take an oath faithfully to discharge the duties

of his office. Terms of the directors shall be at the pleasure of the President of

the United States, and the directors, in addition to their duties as members of the

Board, shall perform such additional duties and may hold such other offices in the

administration of the Bankas the President of the Bank may from time to time

prescribe. A majority of the Board of Directors shall constitute a quorum. The

Board of Directors shall adopt, and may from time to time amend, such bylaws

as are necessary for the proper management and functioning of the Bank, and

shall, in such bylaws, designate the vice presidents and other officers of the Bank

and prescribe their duties.

(d) There shall be an Advisory Committee of nine members, appointed by the

Board of Directors on the recommendation of the President of the Bank, who

shall be broadly representative of production, commerce, finance, agriculture, and

labor. The Advisory Committee shall meet one or more times per year, on the

call of the President of the Bank, to advise with the Bank on its program. Members of the Advisory Committee shall be paid a per diem allowance of $50 for each

day spent away from their homes or regular places of business, for the purpose of

attendance at meetings of the Committee, and in necessary travel, and while so

engaged they may be paid actual travel expenses and not to exceed $10 per diem

in lieu of subsistence and other expenses.

I Federal Executive Salary Act of 1964, Public Law 88-426, 78 Stat. 400.
4 NOMINATION OF HOBART TAYLOR, JR.

(e) No director, officer, attorney, agent, or employee of the Bank shall in any

manner, directly or indirectly, participate in the deliberation upon or the determination of any question affecting his personal interests, or the interests of any corporation, partnership, or association in which he is directly or indirectly personally

interested.

The CHAIRMAN. Does the Senator from Alabama wish to ask any

questions?

Senator SPARKMAN. No; not at the moment, Mr. Chairman.

Senator TOWER. Mr. Chairman, we might ask the routine question

whether or not Mr. Taylor has any business interests that might

conceivabjy result in some conflict.

The CHAIRMAN. Mr. Taylor, will you file with us a statement

showing any assets that possibly could develop in some conflict of

interest?

Mr. TAYLOR. I will be delighted to do so.

The CHAIRMAN. And will you file that with the clerk? We will

treat it in confidence, but we would like to know just what your

financial interests are. We do this with everyone.

Mr. TAYLOR. I understand, Mr. Chairman.

Senator SPARKMAN. Mr. Chairman, let me ask a question just for

my own clarification and my own thinking. Of course, we hear a

great deal these days about our situation in the world financially:

balance of payments, outflow of gold, arid so forth. Various actions

are recommended from time to time to bring about better policies.

Does the Export-Import Bank work closely with the State Department and other agencies in government on this problem?

Mr. TAYLOR. It does.

Senator SPARKMAN, It is an important factor in consideration of

loans that may be made.

Mr. TAYLOR. I think that the position of the State Department

and of the administration generally is considered by the ExportImport Bank before making determinations.

Senator SPARKMAN. Do you have any particular thoughts on the

balance of payments situation?

Mr. TAYLOR. Well, yes. I don't think that there is anything more

important to the country than the maintenance of our fiscal and

economic stability, and obviously if we are going to carry out our

responsibilities around the world, peacekeeping and other things of

the sort, it is of the utmost importance that we do everything that

we can to stimulate improvement in our balance of payments, and

this is why the Export-Import Bank is such a vital cog in our overall

position because by returning almost directly better than a billion

dollars a year to this country in dollars and by the stimulation that

the economy gets indirectly from it, it does occupy a vital place in

the maintenance of our position in the world.

Senator SPARKMAN. Back during the time that Governor Hodges

was the Secretary of Commerce he was pretty active in advocating

greater participation in export business by sir all businesses. I think

his viewpoint was that many small businesses could profitably enter

into the export business if they knew how or if they had the proper

financing. Do you agree with that philosophy?

Mr. TAYLOR. Yes, I do. I have had many opportunities to talk

to Governor Hodges, and he sold me on that some time ago and I am

of that opinion today.
NOMINATION OF HOBART TAYLOR, JR. 5

Senator SPARKMAN. Do you believe that the Export-Import Bank

should take an active interest in helping to promote the interests of

small businesses in the export-import field?

Mr. TAYLOR. It is my understanding that the Bank under Chairman Linder has worked on this pretty hard already, and I am sure that

there is not going to be any relaxation of interest in that respect.

Senator SPARKMAN. Mr. Hale has just reminded me that in our

report in 1963 we had quite a discussion on this subject of small

business and the Export-Import Bank. I would like to suggest if

you haven't read that, you read it, and I do believe that there is a

very fertile field there that could be cultivated and stimulated and that

it in turn would tie in with the propo-sition of bettering our balance-ofpayments situation.

Mr. TAYLOR. I quite understand, sir, and I shall apply myself that

way.

Senator SPARKMAN. Thank you.

The CHAIRMAN. Are there any other questions?

The Chair hears none. We thank you, Senator McNamara and

Mr. Taylor.

The committee will now go into executive session. All that are

not entitled to the floor will please retire.

Senator McNamara. Thank you very much, Mr. Chairman.

Mr. TAYLOR. Thank you, Mr. Chairman.

(Whereupon, at 10:10 a.m., the committee went into executive

session.)

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