[Congressional Record Volume 147, Number 122 (Wednesday, September 19, 2001)]
[Senate]
[Pages S9467-S9468]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          IMPACT OF TERRORIST ATTACK ON LAS VEGAS AREA ECONOMY

  Mr. REID. Madam President, I ask unanimous consent that a memo from 
John Haycock of Haycock Petroleum, Las Vegas, be printed in the Record. 
This is a memo to his employees. It is one of the best dissertations on 
our free market system I have seen, and it was done as a result of the 
events of September 11.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

     Date: September 17, 2001.
     To: Managers.
     From: John Haycock.
       The events of Tuesday, September 11th will have an effect 
     on every business in this Country. I believe it is the 
     responsibility of senior management to assess our specific 
     situation and develop plans to mitigate and minimize any 
     negative impact to Haycock Petroleum Company.
       The following is a brief summary of what I believe to be 
     the areas of impact to our Company and our business routine.


                            national economy

       As I write this memo, the market is down 509 points. While 
     that is a significant loss, it is less than 5%, and certainly 
     not unexpected. If the market closes at around that mark, I 
     believe it will be a positive sign. If the market drops 10%, 
     trading will be stopped.
       The Fed dropped interest rates \1/2\% this morning in a 
     logical and responsible move which seemed to put a stop to 
     the market drop.
       I am a strong believer in the resiliency of a free market.
       The National economy is headed for a tough time. There was 
     talk of a recession before the attacks on Tuesday, and those 
     events would seem to make a recessionary period more likely.


                             local economy

       There is an immediate hesitancy to travel--especially by 
     air. A significant drop in air travel will hurt our 2 major 
     markets. Las Vegas depends on tourism, and the majority of 
     our visitors arrive by air. Salt Lake depends on air traffic, 
     especially going into the winter months, to feed the skiing 
     industry, which is a huge part of that economy.
       My opinion about the down-turn in air travel is that it 
     will be somewhat short lived, assuming there are no more 
     airline tragedies. Time normally heals, and 120 days from 
     now, travel will be somewhat normal.
       The Olympics in SLC is a variable. Depending on what 
     happens between now and then, attendance could be 
     significantly affected both by the fear of air travel, and 
     the potential of Olympic venues as high profile targets for 
     terrorism.

[[Page S9468]]

       Meanwhile, it is likely that there could be an increase in 
     local unemployment as affected industries adjust to any drop 
     in business.
       I don't believe that a short term drop in travel will have 
     a long term effect on sustained growth in Utah and Nevada.


                                 SUPPLY

       Currently, supply does not seem to be an issue. There is a 
     downward trend in the price of distillates, likely due to the 
     glut of jet fuel. Gasoline is moving upward but certainly not 
     abnormally. If there is a move from air travel to travel by 
     car, that would seem to encourage an increase in gasoline.
       If however, there is bombing in the Middle East, pricing 
     and supply will be immediately affected. We've been there 
     before.


                             WHAT ABOUT US?

       This will undoubtedly have an impact on our business.
       Supply volatility is something we know how to deal with if 
     necessary.
       A downturn in the general economy will have effects on the 
     demand for the products that we sell, and if necessary we 
     will adjust our infrastructure accordingly.
       Credit administration, which is a very big part of our 
     business, should be approached very conservatively even in 
     view of any decrease in demand.
       The interest rate cut will help.
       Economic conditions are cyclical, and do not last forever.
       We can help our own cause within our Company and our 
     communities if we maintain a cautious optimism and do our 
     jobs well.
       Again, I believe in the resiliency of a free economy and I 
     have a lot of faith in this Country.
       This too shall pass.

  The ACTING PRESIDENT pro tempore. The Senator from New Hampshire.
  Mr. GREGG. Madam President, I understand it is the purpose of the 
leader to go to the Treasury-Postal bill, but I ask unanimous consent 
that I be allowed to speak as in morning business for 10 minutes.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.

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