[The nomination of Robert B. Costello was reported to the Senate by Senator Sam Nunn on November 19, 1987, with the recommendation that the nomination be confirmed. The nomination was confirmed by the Senate on December 17, 1987.]

NOMINATION OF SAMUEL KENRIC LESSEY, JR., TO BE DIRECTOR OF SELECTIVE SERVICE

TUESDAY, NOVEMBER 24, 1987

U.S. SENATE,

COMMITTEE ON ARMED SERVICES,
Washington, DC.

The committee met, pursuant to notice, at 10:04 a.m., in room SR-222, Russell Senate Office Building, Senator John Glenn presiding.

Present: Senators Glenn and Thurmond.

Staff present: Jeffrey H. Smith, general counsel; Patrick A. Tucker, minority counsel; Christine C. Dauth, chief clerk; Ronald P. Kelly, David S. Lyles, and Frederick F.Y. Pang, professional staff members; Pamela G. Powell, staff assistant.

Also present: Jeffrey B. Subko, assistant to Senator Exon; Phillip P. Upschulte, assistant to Senator Glenn; Terrence Lynch, assistant to Senator Shelby; and Samuel J. Routson, assistant to Senator Symms.

OPENING STATEMENT BY SENATOR JOHN GLENN, PRESIDING Senator GLENN. The hearing will be in order.

The committee meets this morning to consider the nomination of Mr. Samuel K. Lessey, Jr., to be the Director of Selective Service. Mr. Lessey's confirmation hearing originally was scheduled for October 16, but had to be postponed until today. We are sorry it took that long, but this has been a busy time period on Capitol Hill, as you are well aware.

Some people have called the Selective Service System the third tier of our Nation's defense behind our active duty military forces and our Reserve and National Guard component forces. The members of this committee are certainly very well aware of the critical role that the Selective Service System plays in ensuring our Nation's ability to mobilize in the event of a national emergency. If confirmed, Mr. Lessey, you will take over the leadership of a relatively small Federal agency, but one that performs a mission even in peacetime that is very vital to our national security.

Before calling on Mr. Lessey for any opening remarks he may have, I would like to advise the committee that Mr. Lessey has met with the committee staff, has agreed to take all actions that are necessary to comply with the committee's policies and procedures concerning financial disclosures and potential conflicts of interest.

I would also like to note that in the opinion of the committee counsel, Mr. Lessey would not have any conflict of interest if con

firmed to the position for which he has been nominated by the President.

Mr. Lessey, I doubt that we are going to be able to vote on your nomination today. We originally scheduled this meeting thinking that the Senate would still be in session on Monday and Tuesday before Thanksgiving and be out tomorrow and then the rest of the week, but things changed as of last week. We decided to hold the hearing anyway. And what we will do is we will have the hearing today and ask you questions and make the record here, and then vote as soon as we reconvene I hope early next week. So, we won't be able to vote on your nomination today. I doubt very much that we will be able to get a quorum to do that. So, I hope you understand that.

Senator Thurmond, I would be glad to recognize you for any remarks you wish to make.

Senator THURMOND. Thank you, Mr. Chairman.

Mr. Chairman, it is a pleasure to join you here today for the confirmation hearing for Mr. Lessey. I have reviewed his record and would like to note that he is a retired brigadier general in the Air Force Reserve. He has a distinguished career of service to his country in uniform and as a civilian. He is well-qualified for the position for which President Reagan has nominated him, and I look forward to supporting his nomination.

Thank you Mr. Chairman.

Now, Mr. Chairman, I would also like to ask unanimous consent that a statement by Senator Gordon J. Humphrey of New Hampshire, be placed in the record endorsing Mr. Lessey-

Senator GLENN. It will be included.

Senator THURMOND [continuing]. And also a statement by the Honorable Judd Gregg, a Member of the House from New Hampshire, be placed in the record endorsing the nominee also.

Senator GLENN. It will be included as part of the record.

[The prepared statements of Senator Humphrey and Representative Gregg follow:]

PREPARED STATEMENT OF SENATOR GORDON J. HUMPHREY

Because of a long standing, previous commitment on this day, I am unable to be present for this hearing. I have known General Lessey for a number of years. When this job at Selective Service became available, I recommended him to the President. I was pleased when he was nominated for the vacancy.

I strongly urge the nomination of Brigadier General S. Kenric Lessey, Jr., of Hancock, New Hampshire to fill this vacancy. His extensive qualifications are well known. With some 40 years of military service, active and reserve, General Lessey has the essential military background and experience, almost a prerequisite for the post. However, he also brings three other distinctive features which set him apart. First, he has the proven experience of serving both the President and the Congress well during his four years as an Inspector General from 1982-1986.

Second, Selective Service is a national preparedness and planning function. General Lessey brings unique applicable experience, both as the former mobilization assistant to the Director of the Federal Emergency Management Agency, and for his management implementation team project to improve the readiness and mission responsiveness of the Air Force Reserve.

Third, his law and business degrees from Harvard University not only provide him directly applicable educational and professional background, but also with the insight to the formation of young adult viewpoints.

I am proud and pleased to support this nomination. This is a case where I see a perfect fit between the candidate and the job.

I hope the committee will approve this nomination and recommend his confirmation to the full Senate.

PREPARED STATEMENT OF HON. JUDD GREGG

Mr. Chairman, I am pleased to offer my support for the nomination of Gen. Samuel Kenric Lessey, Jr. to serve as Director of the Selective Service System. I have had the good fortune to know Gen. Lessey both as a neighbor from Hancock, New Hampshire and, professionally, from his service as Assistant to the Director of the Federal Emergency Management Agency and, later, as Inspector General of the U.S. Synthetic Fuels Corporation. I have always found him to be an upstanding citizen and a dedicated public servant.

Gen. Lessey has a special blend of talents, knowledge and experience which make him particularly well suited to direct our nation's Selective Service System. From his distinguished military service he has gained a broad appreciation of the importance of maintaining a pool of personnel having appropriate physical and intellectual qualifications to be called upon if needed to defend our country. From his successful career with Shearson, Hammil & Company and the National Aviation Corporation he has developed a managerial style and an appreciation of the needs of the business community which are so intimately intertwined with our national defense needs in times of stress. From his academic background at West Point, Harvard Law School and Harvard Business School he has a thorough understanding of the legal and economic ramifications of actions which may be required by the Federal Government in the event of a national emergency.

Given his record of dedication and the level of enthusiasm that he has demonstrated, I have no doubt that Gen. Lessey will serve this country well, in yet another important position. Clearly, Gen. Lessey is a patriotic leader who should make a fine Director of the Selective Service System.

[The nomination reference of Samuel K. Lessey, Jr. follows:]

NOMINATION REFERENCE

AS IN EXECUTIVE SESSION,
SENATE OF THE UNITED STATES,
May 29, 1987.

Ordered, that the following nomination be referred to the Committee on Armed Services:

Samuel K. Lessey, Jr., of New Hampshire, to be Director of Selective Service, vice Thomas K. Turnage.

[The biographical sketch of Samuel K. Lessey, Jr., which was transmitted to the committee at the time the nomination was referred follows:]

BIOGRAPHICAL SKETCH OF SAMUEL KENRIC LESSEY, JR.

Education: Horace Greeley School, Chappaqua, New York, 1940; Millard Preparatory School, Washington, D.C., 1941; B.S., U.S. Military Academy, West Point, New York, 1945; L.L.B., Harvard Law School, Cambridge, Massachusetts, 1951; M.B.A., Harvard Business School, Boston, Massachusetts, 1956.

Employment: 1982-Present: Inspector General of the U.S. Synthetic Fuels Corporation (Presidential appointment).

1979-1982: Mobilization Assistant to the Director of the Federal Emergency Management Agency.

1976-1978: For the Chief of Air Force Reserve, conducted a Management Implementation Team, charged with determining and implementing an optimum management structure for the entire Air Force Reserve. Directed a most comprehensive and successful management headquarters reorganization, improving Reserve readiness and mission effectiveness while utilizing ten percent fewer resources. Awarded the Legion of Merit. Promoted to Brigadier General.

1974-1975: Attended the Air War College, Air University, Maxwell Air Force Base, Alabama. Graduated as a Distinguished Graduate.

1968-1974: Vice President of Shearson, Hammill & Co., one of the ten largest investment banking and brokerage firms in the U.S.A.

1957-1968: Vice President and Director of the National Aviation Corporation, a closed-end investment company specializing since 1928 in aerospace and airline securities.

Other Government Service: 1973: Appointed Consultant to the Department of Defense as a member of the National Committee for Employer Support of the Guard and Reserve.

1970. Appointed by Chairman Secor D. Browne to serve on the Civil Aeronautics Board Advisory Committee on Finance.

Military: Brigadier General, United States Air Force Reserve (retired). Pilot: 3500 hours, single and multi-engine, land and sea, piston and jet. Background and practical understanding of aircraft engineering.

Served with the Ninth Air Force, the European Air Material Command, the Pacific Division of Military Air Transport Service, and as a law instructor on the staff and faculty of the U.S. Naval Academy. Twelve years of active duty.

Admitted to practice before: Federal District Court and Federal Court of Appeals, United States Supreme Court, Court of Claims, Court of Military Appeals, Tax Court, Treasury Department, Federal Communications Commission, Interstate Commerce Commission, General Accounting Office, Immigration and Naturalization Service, and the New York State Bar.

Specific experience: At Shearson-Hammill, held principal responsibility for analyzing the activities of the airline and aerospace industries from both a corporate finance and an investment point of view. Also covered institutional accounts, performed institutional liaison work, and other investment banking activities.

At National Aviation, a regulated management closed-end investment company with 15,000 stockholders and its common stock listed on the New York Stock Exchange, conducted and participated in all activities of the Corporation; portfolio management, industry and security analysis, administration, legal and financial matters, and public relations during the period from 1957 to 1968 when: (1) The Corporation's assets grew from $17 million to $131 million, (2) the stockholders were paid approximately $70 million in dividends averaging about a 15% annual return on their investment, (3) the Corporation's asset growth performance was among the highest in the investment company industry. Also carried out the Corporation's move to invest in peripheral companies in the aerospace business, introducing 20 new venture companies which produced $12.5 million in capital gains without any losses.

Organizations: Aerospace Analysts Society; Air Force Association, Iron Gate Chapter; American Astronautical Society; American Defense Preparedness Association; American Fighter Pilots Association; American Helicopter Society; American Institute of Aeronautics and Astronautics; American Legion Aviation Post #501; Association of the United States Army; Aviation/Space Writers Association; Electrical and Electronics Analysts Group; Financial Analysts Federation; Institute of Electrical and Electronic Engineers; Military Order of the World Wars; New York Society of Security Analysts; Reserve Officers Association; and Retired Officers Association. Clubs: Capitol Hill Club, New York Athletic Club; Harvard Club, Wall Street Club; National Aviation Club, Wings Club.

Personal: Born in Newark, New Jersey. Raised in Chappaqua, Westchester County, NY. Lived in Buckingham, Bucks County, Pennsylvania until nineteen-sixties. Sports: skiing, badminton, tennis, squash, swimming.

[The Committee on Armed Services requires all individuals nominated from civilian life by the President to positions requiring the advice and consent of the Senate, and certain senior military officers as determined by the committee, to complete a form that details the biographical, financial and other information of the nominee. The form executed by Samuel K. Lessey, Jr. in connection with his nomination follows:]