Date: 1981-02-05
Speaker: LESLIE E. HODEL (democrat)
Chamber: S

Portland. Oreg. Re: Philip E. Hodel Testamentary Trust. Dr. Aas: As you know. I will be nominated as Under Secretary of the Interior. The appointment will not become effective until confirmation by the United States Senate. To avoid any actual or potential conflict of interests. or even the appearance of conflict of interest. it will be necessary for me to resign as CoTrustee of the Testamentary Trust established by Dads Will. Accordingly. this letter constitutes my resignation. to be effective concurrently with Senate confirmaIon of my appointment as Under Secretary. as CoTrustee of the trust established under the Last Will and Testament of Philip E. Hodel. dated August 4. 1972 (the "Trust") . Immediately upon the effective date of my resignation as CoTrustee. please take such steps as may be necessary to change the name in which all assets of the Trust are held and/or the name in which any account Is maintained in behalf of the Trust. Article VI. paragraph "B" of the Will provides that. upon Mothers death. the Trust shall terminate and the remaining Trust assets. it any. shall be distributed free of Trust equally to you and to me. Prior to her death. I have no right to receive any Income or corpus of the Trust. Except as set forth below. it is absolutely essential that you agree that. during the entire period of my tenure as Under Secretary. you wil refrain from directly or indirectly furnishing me. my wife Barbara. or my son David with any knowledge or information as to any of the Trust holdings. or any of the sources of Mothers income from the Trust. or any transactions of the Trust. In the event of Mothers death during my tenure of office. you are not to distribute to me any portion of the assets of the Trust nor furnish me with any information concerning Trust assets without further. written instructions from me as to the distribution of those assets. the holding of which by me may be prohibited. At sty request. you are tofurnish Government agencies with a listing of assets of the Trust. The applicable federal conflicts of interest statutes and regulations apparently have been.interpreted by the Government to prohibit my continued holding of a fifty percent remaindermans interest in the Trust if the Trust owns certain types of securities or other property. specifically. securities of companies engaged in "underground or surface coal mining operations." You will receive a letter from the Deputy Department Ethics Counselor of the Department of Interior. who will inform you of the holdings of the Trust which are prohibited. You have agreed that. upon receiving such information. you immediately will sell all such securities. Mother has informed me of her consent to the sale. Please furnish me with writtetn evidence of the sale. such an brokers confirmations or otherwise. You also have agreed that. during tne entire period of my tenure as Under Secretary. you will not permit the Trust to acquire any holdings in the securities or properties of companies engaged in underground or surface coal mining operations and that. when making purchases in behalf of the Trust. you will obtain the specific representation of the Trusts stockbroker that the subject investment will not fall within such category. Moreover. you have agreed that. if you should be informed at any future time during my tenure. that the Trust holds securities of a company which. subsequent to today. becomes involved in underground or surface coal mining operations. you will cause the Trust immediately to dispose of such securities. I greatly regret having to resign as CoTrustee because it leaves you with the sole burden of managing the Trust assets for Mother. and I certainly would have preferred not to ask you to dispose of Trust assets on my account. However. I have no alternative in the circumstances. Please sign and return to me promptly the enclosed duplicate copy of this letter whereby you acknowledge my resignation as of the date described above and agree to abide by my instructions as set forth herein. Sincerely.