EQUIPMENT

HEARINGS

BEFORE THE

SUBCOMMITTEE ON
EXECUTIVE REORGANIZATION

OF THE

COMMITTEE ON
GOVERNMENT OPERATIONS

UNITED STATES SENATE

NINETIETH CONGRESS

SECOND SESSION

ON

S. 2865

A BILL TO AMEND THE FEDERAL PROPERTY AND ADMIN-
ISTRATIVE SERVICES ACT OF 1919 TO REQUIRE THE DIS-
CLOSURE OF THE PRICE OF ITEMS OF SAFETY EQUIPMENT

IN THE PROCUREMENT OF MOTOR VEHICLES

FEBRUARY 2; MARCH 29 AND MAY 1, 1968

Printed for the use of the Committee on Government Operations

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 1968

96-015

SENATE COMMITTEE ON GOVERNMENT OPERATIONS

JOHN L. MCCLELLAN, Arkansas, Chairman HENRY M. JACKSON, Washington

KARL E. MUNDT, South Dakota SAM J. ERVIN, JR., North Carolina

CARL T. CURTIS, Nebraska ERNEST GRUENING, Alaska

JACOB K. JAVITS, New York EDMUND S. MUSKIE, Maine

CLIFFORD P. HANSEN, Wyoming ABRAHAM RIBICOFF, Connecticut

HOWARD H. BAKER, JR., Tennessee FRED R. HARRIS, Oklahoma ROBERT F. KENNEDY, New York LEE METCALF, Montana JOSEPH M. MONTOYA, New Mexico

JAMES R. CALLOWAY, Chief Counsel and Staf Director

ARTHUR A. SHARP, Staj Editor

SUBCOMMITTEE ON EXECUTIVE REORGANIZATION

ABRAHAM RIBICOFF, Connecticut, Chairman JOHN L, MCCLELLAN, Arkansas

JACOB K. JAVITS, New York ERNEST GRUENING, Alaska

CLIFFORD P. HANSEN, Wyoming ROBERT F. KENNEDY, New York

HOWARD H. BAKER, JR., Tennessee
FRED R, HARRIS, Oklahoma
JOSEPH M. MONTOYA, New Mexico

PAUL DANACEAU, Staff Director
ROBERT WAGER, General Counsel

PAMELA GELL, Chief Clerk
DAVID VIENNA, Professional Staff Member
E. F. BEHRENS, Minority Consultant

PAMELA PANCZAK, Editor

(II)

Corp...

WITNESSES

Page

Statements of phairman Abraham Ribicoff.

1, 153

Hon. Walter F. Mondale, U.S. Senator from the State of Minnesota - 22

Lowell K. Bridwell, Administrator, Federal Highway Administration,

Department of Transportation; accompanied by Dr. William Haddon,

Jr., Administrator, National Highway Safety Bureau, Department of

Transportation; and Robert Brenner, Deputy Director, National High-

way Safety Bureau, Department of Transportation..

48

Ralph Nader, author of "Unsafe at Any Speed”.

60

Heinz A. Aberseller, Commissioner, Federal Supply Service; accompanied

by George W. Ritter, Assistant Commissioner for Standards and Quality

Control; and Peter M. Mollica, Assistant General Counsel, General

Services Administration...

103

Peter Henle, Chief Economist, Bureau of Labor Statistics, Department of

Labor; accompanied by Arnold Chase, Assistant Commissioner for

Prices and Living Conditions.--.

122

Richard C. Gerstenberg, executive vice president, General Motors Corp.;

accompanied by Ross L. Malone, general counsel; and Thomas A.

Vurphy, comptroller, of General Motors Corp-

137, 154

Arjay Miller, vice chairman, Ford Motor Co.;accompanied by Fred Secrest,

vice president and controller ----

142, 203

P. N. Buckminster, vice president in charge of corporate staffs, Chrysler

146, 215

J. C. Secrest, vice president of finance, American Motors Corp-

149, 216

EXHIBIT'S

No.

1. Test of S. 2865-

3

2. Text of amendment to S. 2865...

4

3. Letter from Senator Ribicoff to Secretary of Labor Wirtz requesting

information on quality differences considered by the Bureau of

Labor Statistics and an explanation of the computations and evalua-

tions made by BLS in reaching its conclusions, April 12, 1966.---

4

4. Letter and enclosures from Secretary Wirtz to Senator Ribicoff, in

reply to Senator Ribicoff's April 12, 1966, request, May 11, 1966

5

5. Letter from L.E. Spangler, Acting Commissioner, Federal Supply

Service, GSA, to Robert Wager, General Counsel, Subcommittee on

Executive Reorganization, supplying information on procurement of

Government vehicles, August 11, 1967.

11

6. Letter of August 16, 1967, from Senator Ribicoff to the four major

domestic automobile manufacturers requesting information concern-

ing that portion of the price of 1967 model cars attributable General

Service Administration standards..

12

7. Letter from J.M. Roche, president, General Motors, to Senator

Ribicoff, regarding procurement of vehicles by GSA, September 1,

1967, and General Motors news release on prices of 1967 models,

September 22, 1966-

8. Letter from Arjay Miller, president, Ford Motor Co., to Senator Ribi-

coff, concerning the relationship of auto prices to required safety

standards, August 31, 1967 --

19

9. Letters from Virigil E. Boyd, president, Chrysler Corp., to Senators

Magnuson and Mondale, and Senator Ribicoff, discussing the re-

lationship of auto prices to required safety standards, June 2, 1967,

and August 25, 1967-

10. Letter from Roy D. Chapin, Jr., chairman of the board, American

Motors Corp., to Senator Ribicoff, discussing the relationship of auto

prices to required safety standards, September 7, 1967

21

13

20