OVERSIGHT ON ECONOMIC STABILIZATION

HEARINGS

BEFORE THE

SUBCOMMITTEE ON

PRODUCTION AND STABILIZATION

OF THE

COMMITTEE ON

BANKING, HOUSING AND URBAN AFFAIRS

UNITED STATES SENATE

NINETY-THIRD CONGRESS

SECOND SESSION

ON

RENEWAL AND SUGGESTED MODIFICATIONS OF THE ECONOMIC

STABILIZATION ACT WHICH EXPIRES ON APRIL 30, 1974

JANUARY 30 AND 31; FEBRUARY 1 AND 6, 1974

Printed for the use of the

Committee on Banking, Housing and Urban Affairs

OVERSIGHT ON ECONOMIC STABILIZATION

HEARINGS

BEFORE THE

SUBCOMMITTEE ON

PRODUCTION AND STABILIZATION

OF THE

COMMITTEE ON

BANKING, HOUSING AND URBAN AFFAIRS

UNITED STATES SENATE

NINETY-THIRD CONGRESS

SECOND SESSION

ON

RENEWAL AND SUGGESTED MODIFICATIONS OF THE ECONOMIC

STABILIZATION ACT WHICH EXPIRES ON APRIL 30, 1974

28-447

JANUARY 30 AND 31; FEBRUARY 1 AND 6, 1974

Printed for the use of the

Committee on Banking, Housing and Urban Affairs

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1974

COMMITTEE ON BANKING, HOUSING AND URBAN AFFAIRS

JOHN SPARKMAN, Alabama, Chairman

DUDLEY L. O'NEAL, Jr., Staff Director and General Counsel

WM. HOWARD BEASLEY III, Director of Minority Staff

SUBCOMMITTEE ON PRODUCTION AND STABILIZATION

J. BENNETT JOHNSTON, JR., Louisiana, Chairman

ADLAI E. STEVENSON III, Illinois
WILLIAM D. HATHAWAY, Maine
JOSEPH R. BIDEN, JR., Delaware

JOHN TOWER, Texas

LOWELL P. WEICKER, JR., Connecticut
BILL BROCK, Tennessee

GERALD Y. ALLEN, Professional Staff Member

(II)

CONTENTS

CHRONOLOGICAL LIST OF WITNESSES

WEDNESDAY, JANUARY 30

Otto Eckstein, professor of economics, Harvard University.

F. Gerald Adams, professor of economics, University of Pennsylvania,

Director, Economic Research Unit_

Charls E. Walker, president, Charls E. Walker Associates..

Arnold R. Weber, dean, Graduate School of Industrial Administration,

Carnegie-Mellon University; Provost, Carnegie-Mellon University--

Robert S. Hatfield, chairman of the board, president, and chief executive

officer, Continental Can Co..

O. Pendleton Thomas, chief executive officer, and chairman of the board,

B. F. Goodrich Co...

George A. Stinson, chairman of the board, National Steel Corp.---.

THURSDAY, JANUARY 31

Hugh Scott, U.S. Senator from the State of Pennsylvania_

James L. Buckley, U.S. Senator from the State of New York..

68

163

C. Jackson Grayson, Jr., dean, School of Business Administration, Southern

Methodist University-

173

Eugene A. Keeney, president and chief executive officer, American Retail

Federation..

184

John M. Belk, chairman of the board, National Retail Merchants Associa-

tion_..

184

184

184

255

Donald C. Burnham, chief executive officer, Westinghouse Electric Corp..

Charles J. Carey, president, National Canners Association...--

Richard S. Schweiker, U.S. Senator from the State of Pennsylvania_-

Roger S. Ahlbrandt, chairman and chief executive officer, Allegheny

Ludlum Industries, Inc., accompanied by Eugene A. March, group vice

president, Steel Operations, Crucible Steel Division, Colt Industries;

and Richard P. Simmons, president, Allegheny Ludlum Steel Corp. -

FRIDAY, FEBRUARY 1

E. Douglass Kenna, president, National Association of Manufacturers..

Charles H. Smith, Jr., treasurer, Chamber of Commerce of the United

States...

Robert R. Lynn, chairman, Economic Stabilization Committee, American

Textile Manufacturers Association; senior vice president, Burlington

Industries__

Dan M. Byrd, Jr., vice president and general counsel, Springs Mills, Inc.-

John A. Schnittker, president, Schnittker Associates.

256

284

284

345

345

358

Clarence G. Adamy, president, National Association of Food Chains

Thomas F. Wenning, associate general counsel, National Association of

Retail Grocers of the United States__

362

362

George W. Koch, president, Grocery Manufacturers of America..

362

John A. McMahon, president, American Hospital Association; accom-

panied by: Leo J. Gehrig; and David F. Drake..

391

Wiley Crittenden, president, American Nursing Home Association;

accompanied by: William A. Geoghegan_-_

395