H-4473              _______________________________________________

                                           HOUSE JOINT MEMORIAL NO. 4043

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Representatives Vekich and Wang

Read first time 2/3/88 and referred to Committee on Trade & Economic Development.

TO THE HONORABLE RONALD REAGAN, PRESIDENT OF THE UNITED STATES, AND TO THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, AND TO THE ATTORNEY GENERAL, AND TO THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED STATES, IN CONGRESS ASSEMBLED:

          We, your Memorialists, the Senate and House of Representatives of the State of Washington, in legislative session assembled, respectfully represent and petition as follows:

          WHEREAS, The competitiveness of this country is founded in the innovation and entrepreneurial spirit of small business; and

          WHEREAS, Small and medium-sized businesses are responsible for the vast majority of new employment and expansion into new industry; and

          WHEREAS, Nearly seventy percent of all jobs in Washington state are provided by firms with one hundred or fewer employees; and

          WHEREAS, The future of the American economy depends, more than ever before, on the successful development of exportable products and services; and

          WHEREAS, Start-up businesses are strongly committed to the local area and tend to relocate locally upon expanding; therefore, the encouragement of new business enhances the development and stability of local economies; and

          WHEREAS, The Small Business Administration is operating at one-tenth of its 1978 level; and

          WHEREAS, A reversal in the direction of enforcement of antitrust policy constitutes a grave and imminent threat to the survival of small business; and

          WHEREAS, Thousands of working Americans have lost their jobs due to plant closures and layoffs caused by takeovers and takeover attempts; and

          WHEREAS, The total cost of mergers and acquisitions in 1986 ($150 billion) exceeded the amount spent on all business investment in plant and equipment ($140 billion);

          NOW, THEREFORE, Your Memorialists respectfully pray that Congress:

          (1) Encourage the President of the United States, the Senate and House of Representatives of the United States, and the Attorney General to enforce existing law in accordance with the intent of the original legislation;

          (2) Enact legislation to limit hostile, "bust-up" takeovers that result in financial gain for the manipulators of the transaction at the expense of jobs and investment in research and development; and

          (3) Restore funding of the Small Business Administration to former levels.

          BE IT RESOLVED, That copies of this Memorial be immediately transmitted to the Honorable Ronald Reagan, President of the United States, the President of the United States Senate, the Speaker of the House of Representatives, the Attorney General, and each member of Congress from the State of Washington.