Ed Bobit's Publisher's Page

The movers and shakers in the car fleet market will find the following remarks by Firestone's president, Richard A. Riley, most provocative, with meat enough to chew for all of us . . . today, and in the future.

"It's time to admit that the term 'free enterprise' is dead," says the president of The Firestone Tire & Rubber Company.

Writing in the November issue of "Ward's Auto World" magazine, Richard A. Riley states:

"Realistically, and regretfully, we must face the fact that the nation now operates under a 'controlled enterprise' system, and unless the head-long dash to regulate our individual and business lives comes to a halt soon, we even will have to eliminate the word 'enterprise.' "

Riley blames the change on the proliferation of govern­ment laws and regulations, which he said are stifling creativ­ity and initiative, and on the actions of "those who believe their role in life is to protect all of us from each other."

As examples, he pointed out that a senator is seeking legislation which would provide a commission with power to dismantle and restructure companies and even entire industries, and that a representative is seeking a law which would not permit a company to close or relocate a plant without Federal permission.

"The legislation bins are filled with other examples," the Firestone official wrote. He noted that in the 93rd session of Congress there were 26,222 bills and resolu­tions introduced.

"That's an average of almost 50 submissions per mem­ber of Congress. Could anyone do a proper job of research­ing that number? Much less read the 26,000 submitted by others?

"Has anyone ever considered legislation limiting each lawmaker to five bills a year?"

Stating that regulations too often do not benefit the consumer, Riley said the mandated tire registration program costs tire buyers about $55 million a year.

"Yet from the time the rule went into effect in 1968, through 1974, only .08-percent of the 1,480,000,000 car and truck tires produced in those years have been subjected to recall," he wrote. "Obviously this rule has been of great cost but little benefit."

He added that the industry now is faced with uniform tire quality grading, which will add $150 million a year to tire-buying costs. He added that the rule will give the buyer more headaches because it will "confront the buyer with at least 150 possible grade combinations."

The Firestone president said: "I am not suggesting that all regulations are counterproductive, but I feel they should be developed on a sound, rational basis for a definite need . . . not just because of an emotional desire.

"We have seen enough of the latter and all of us are pay­ing the consequences.

"Perhaps it is too late to salvage the term 'free enter­prise,' but if more of us speak out we might be able to pro­tect our hobbled system from further erosion."

Mr. Riley's opinions are strong and leave a lasting im­pression. Free thought and the resultant freedom of speech are fundamental to each of us if our democracy is to sur­vive. Oscar A. Lundin, vice chairman of General Motors, put it quite succinctly, as have other industry leaders, when he stated ". . . the recovery of the industry cannot be taken for granted and will only be possible if there are no further legislative actions that impair our ability to produce the products demanded by the market at prices our customer are willing to pay."

Thank God for the strong men in our industry who have the courage of their convictions.