insel for the Internal Revenue Service), or the Department of Justice, desires nspect, or to have an employee of his bureau or office inspect, any such records connection with some matter officially before him for reasons other than tax ninistration purposes or the administration or enforcement of the provisions the Economic Stabilization Act of 1970, as amended, the inspection may, in · discretion of the Secretary of the Treasury or the Commissioner of Internal venue or the delegate of either, be permitted upon written application by the id of the bureau or office desiring the inspection. The application shall be de to the Commissioner of Internal Revenue, Washington, D.C. 20224, and shall w the name and address of the person about whom records are to be inspected 1 the reason why inspection is desired. The information obtained from inspecn pursuant to this paragraph may be used as evidence in any proceeding coneted by or before any department or establishment of the United States, or to ich the United States is a party.

b) Definitions. (1) Stabilization records.-For purposes of this section, the m "stabilization records" includes

(i) All schedules, lists, written statements, or other written documents filed or on behalf of any person with the Internal Revenue Service, and (ii) All other reports, information received orally or in writing, factual data, ruments, papers, abstracts, memoranda, or evidence taken, or any portion ereof, relating to any person and held by the Internal Revenue Service, to the tent any such item is with respect to the administration or enforcement of any ovision of the Economic Stabilization Act of 1970, as amended, and is not part a return (as defined in § 301.6103 (a) 1(a)(3)(i) of 26 CFR 301.)

(2) Person. For purposes of this section, the term "person" has the meaning en to such term under section 7701(a)(1) of the Internal Revenue Code of 54 (68A Stat. 911; 26 U.S.C. 7701(a) (1)).

[FR Doc. 73-17084 Filed 8-13-73; 3:25 pm]

[From the Federal Register, Nov. 6, 1973]

TITLE 6-ECONOMIC STABILIZATION

CHAPTER I-COST OF LIVING COUNCIL

PART 102-PUBLIC ACCESS TO RECORDS

Public Disclosure of CLC Reports

The purpose of this amendment to the Cost of Living Council's regulations govning public access to its records is to (1) define a business enterprise as a parat and the consolidated and unconsolidated entities which it directly or inrectly controls, (2) require the filing of an additional copy of certain quarterly ports to be used by the Council in responding to requests for public discloire, (3) provide for the certification that public disclosure of certain quarterly ports is not required because the submitting firm has not increased prices sufciently to require disclosure, and (4) specify those parts of Schedules F, R, and which the Council has determined contain information which is nonproprietary nd therefore subject to disclosure in accordance with Part 102 of Title 6, ode of Federal Regulations.

Subpart F of Part 102, dealing with public disclosure of the Forms CLC-2 and LC-22, applies to business enterprises having certain characteristics. Previusly, "business enterprise" had been defined in § 102.53 with reference to the structions to the Form CLC-2 and to the Form CLC-22. Section 102.53 is mended to define business enterprise as a firm is defined in Part 150 of the Economic Stabilization Regulations for purposes of determining tier status. Under § 102.54 (a) (3), a firm required to submit additional copies of its Form LC-2 or CLC-22 quarterly report omitting all proprietary data must submit ree copies. This requirement is being changed to four copies. The additional opy will allow the Council to respond to public disclosure requests at both CLC eadquarters in Washington and the IRS District Offices where the copies are

led.

A new paragraph (d) is being added to § 102.54 providing for a business enerprise having annual sales or revenues of $250 million or over to certify that its uarterly reports are not subject to public disclosure, when the business enterrise has not increased prices enough to require such disclosure under the terms f§ 205(b)(1) of the Economic Stabilization Act of 1970, as amended.

The Council has previously set out in §§ 102.55 and 102.56 an item-by-item ing of the data on Forms CLC-2 and CLC-22 and their related Schedule which the Council has determined to be nonproprietary. Similar listings being added covering related Schedules F (Report or Record of Food Mars turing Revenues), R (Reconciliation of Forms 10-K, 10-Q or Other Finan Statements to Form CLC-22), and T (Report of Retailing and Wholesa Markups or Gross Margins).

Because the purpose of these amendments is to make technical corrections to provide immediate guidance and information with respect to the decisi of the Council, the Council finds that publication in accordance with normal making procedure is impracticable and that good cause exists for making t amendments effective in less than 30 days. Interested persons may submit ten comments regarding these regulations. Communications should be addres to the Office of the General Counsel, Cost of Living Council, 2000 M Street N, Washington, D.C. 20508.

(Economic Stabilization Act of 1970, as amended, Pub. L. 92-210, 85 Stat. 15 Pub. L. 93-28, 87 Stat. 27; E.O. 11695, 38 FR 1473; E.O. 11730, 38 FR 16 Cost of Living Council Order No. 14, 38 FR 1489.)

In consideration of the foregoing, Part 102 of Title 6 of the Code of Felez Regulations is amended as set forth herein, effective November 2, 1973. Issued in Washington, D.C., on November 2, 1973.

JAMES W. MCLANE,

Deputy Director. Cost of Living Courch

1. In § 102.53 the definition of "Business enterprise" is amended to read follows:

§ 102.53 Definitions.

For the purpose of this subpart

"Business enterprise" means a parent and the consolidated and unconsolida entities which it directly or indirectly controls, as those terms are defined § 150.31 of this title.

2. Section 102.54 (a) (3) is amended and a new paragraph (d) is added to re as follows:

$ 102.54 Disclosure procedure.

(a) ***

(3) Attach four copies of the entire CLC-2 or CLC-22 submission which o all proprietary information or data in accordance with the definitions and r provided in § 102.55 or § 102.56.

(d) Each business enterprise having annual sales or revenues of $250 milli or more and submitting to the Cost of Living Council a Form CLC-2 or For CLC-22 which is not subject to public disclosure because the business enter prise has not charged a price for a substantial product that exceeds the 1.5 p cent limitation specified in § 102.51(b)(1)(iii) shall attach a supporting cert

cation to that effect.

4. Section 102.56 is amended by adding new paragraphs (d), (e), and (f) }

read as follows:

$ 102.56 Form CLC-22 data.

*

(d) Schedule F (Report or Record of Food Manufacturing Revenues), (1) T information called for in items 1 and 2 serves to identify or describe the firm. reporting period, and the base period. All of the information is nonpropriet data because it does not include either trade data or general financial data.

(2) (i) Item 3 (Price Rule) Columns (a) and (b) contain nonproprietary m because only the names of product lines and related standard industrial class cation codes is required, which is neither trade data nor general financial de other than "SEC data", and is generally available to the public elsewhere. (ii) Column (c) (Base Revenues) reports the revenues by product line in base period selected by the firm pursuant to Subpart Q. Generally, the bes

iod is any 4 consecutive fiscal quarters, at the firm's option, of the eight fiscal arters which ended prior to May 11, 1973. With respect to slaughtering and nufacturing of meat products, however, the base period is any 4 consecutive al quarter, at the option of the firm concerned, which began after May 25, 10 and ended before May 11, 1973. These 4-quarter periods are not required correspond to the fiscal year used on the SEC Form 10-K. In addition, the C definition of revenues for Column (c) provides for adjustments to revenues ich are not normally reflected in "revenues" for SEC reporting purposes. For imple, the CLC definition of "revenues for Column (c) excludes revenues from eign operations and may exclude revenues derived from food or food raw terials purchased and sold without change in form, and from hedging activities. erefore, this information has no counterpart on SEC Form 10-K prepared as ugh the firm were a single-product-line firm and it is defined as proprietary

ta.

(iii) Column (d) compares the ratio of the current volume to the volume in > base period. This information has no counterpart on a SEC Form 10-K epared as though the firm were a single-product-line firm and thus it is defined proprietary data.

(iv) The data required in Column (e) is a percentage figure representing 'ost justification plus 100 percent" for each product line entered in item 3. hese are calculations unique to the Schedule F and find no counterpart on the CC Form 10-K. However, in order to fulfill the general purpose of § 205 of e Economic Stabilization Act of 1970, as amended, and in exercise of the thority granted thereunder, the Council defines the data required in Column ) of item 3, as nonproprietary CLC data.

(v) Column (f) (Permissible Revenues) is determined by multiplying tother the information in Columns (c), (d), and (e). This figure is a special LC calculation which has no counterpart in the SEC Form 10-K. Therefore, the formation required is not SEC data, and is defined as proprietary data. (vi) Column (g) (Current Revenues) calls for current revenues as defined the Cost of Living Council. This definition is not the same as that used for EC purposes, because items bought and sold without change in form must be cluded. Since such general financial data, thus more narrowly prescribed, is ot required for SEC purposes, it is defined as proprietary data.

(vii) The data called for in Column (h) (Current Revenues Under (Over)) ontains the result of a special CLC calculation which has no counterpart in the EC Form 10-K. Therefore, the information in Column (h) is not SEC data, id is defined as proprietary data.

(e) Schedule R. (Reconciliation of Forms 10-K, 10-Q or Other Financial tatements to Form CLC-22. (1) The information called for in lines 1 and 2 ›rves to identify the firm and the period of time being reconciled. All of this formation is nonproprietary because it does not include either trade data or eneral financial data.

(2) Lines 3 (Net Sales/Revenues) and 4 (Net Income) contain data reported >the SEC and are therefore nonproprietary.

(3) Lines 5 (Adjustments) and 6 (Intercompany sales/income) are special LC calculations which have no counterpart in the SEC Form 10-K. Therefore, one of the information required is SEC data and all of it is defined as roprietary data.

(4) Line 7 calls for restatements of lines 3 or 4. Since any such restatement ould be a restatement of data otherwise included in a periodic report to the EC, the restatement is nonproprietary.

(5) Lines 8 (Equity interest in other entities), 9 (Non-operating items), 10 Income tax expense), and 11 (Extraordinary items) call for data required o be updated to the SEC which is therefore nonproprietary.

(6) Lines 12 (Net sales) and 13 (Operating income) are already defined in Parts II and III of the Form CLC-22 as proprietary data.

(f) Schedule T (Report of Retailing and Wholesaling Markups or Gross Marins). (1) The information called for in items 1 through 4 serves to identify he firm, the reporting period, the purpose of the filing, and whether the firm is eporting on customary initial percentage markups, or gross margins. All of the nformation required is nonproprietary data because it does not include either rade data or general financial data other than SEC data, and is generally vailable to the public elsewhere.

(2) Item 5 (Schedule of Markups or Gross Margins). The information as to he pricing base period is nonproprietary because it is neither trade data nor genral financial data. The information required in Column (a) for item 5 is non

proprietary data because it is the merchandise or customer categories, is neither trade data nor general financial data other than SEC data, and is erally available to the public elsewhere.

(3) The information required in Columns (b), (c), (d), (e), (f) (g), and concerns markups or gross margins by merchandise or customer category. Th information has no counterpart on a SEC Form 10-K prepared as though firm was a single-product-line firm and thus it is defined as proprietary d (4) Item 6 calls for name, title, address, and telephone number. Everythi required in this item is nonproprietary data because it does not include e trade data or general financial data other than SEC data and is general p available to the public elsewhere.

[FR Doc. 73-23730 Filed 11-2-73; 3:56 pm]

[ATTACHMENT 3]

CLC QUESTIONNAIRE No. 1-QUESTIONNAIRE CONCERNING PUBLIC DISCLOS UNDER 205 OF THE ECONOMIC STABILIZATION ACT

Instructions. This questionnaire must be completed by the firm's Chief Ex ecutive Officer or other authorized Executive Officer and returned no later tha November 20, 1973 to Office of the General Council, Cost of Living Council, 20 M Street, N.W., Washington, D.C. 20508, marked "Public Disclosure Questio naire." Failure to complete and return this questionnaire promptly may stitute a violation of the Economic Stabilization Act.

1. Name of firm____

2. Last fiscal quarter ended_

3. Does the firm have annual sales or revenues of $250 million or more?

Yes

No

["Annual sales or revenues" means the total gross receipts of a firm duri its most recently completed fiscal year, from whatever source derived, exe that it does not include gross receipts of or from a foreign branch or divis foreign entity such as a corporation, partnership, joint venture, association, tra of such a firm, or the gross receipts of or from a wholly or partially ow or subsidiary, if the gross recipts of such foreign entity, branch, or division derived primarily from transactions with other foreign firms. A foreign entit branch, or division is one located outside the several States and the District Columbia. However, gross receipts of domestic entities from U.S. export sales from sales to firms in the Commonwealth of Puerto Rico are included in the

determination of annual sales or revenue (6 CFR § 150.31).]

4. Was or is the firm required by § 130.21 (b) or § 150.161 of the econo

stabilization regulations to submit quarterly reports?

Yes

No

[§ 130.21 Price Reporting Firm; Reporting Requirements.

million or more.

(a) A price reporting firm is a firm with annual sales or revenues of $ with information on prices, costs, and profits in accordance with regulations (b) Each price reporting firm shall submit quarterly reports to the Coun

issued by the Council.

§ 150.161 Quarterly Reports.

III shall submit quarterly reports to the Cost of Living Council on prices, co (a) General. Except as provided in paragraph (b), each price category I ard and profits in accordance with forms and instructions issued by the Council. (b) Waiver of quarterly reports. Quarterly reports need not be submitted

the Council by the following firms:

(1) A firm which during its most recent fiscal year derived both (1) 90 more of its annual sales or revenues from the sale of exempt items or from exemp sales and (ii) less than $50 million of its annual sales or revenues from the s

or lease of non-exempt items.

(2) A firm which is a nonprofit organization with less than $50 million derire from transactions in property or services which are not exempt under Subpar

D of this part, or otherwise excluded from coverage of this part. (3) State and local governments.

(4) A firm which has not charged a price for any item above the base price · above the adjusted freeze price, whichever is higher, provided the firm files, r the fiscal quarter, a "Certificate of no price increase" in accordance with the rms and instructions issued by the Cost of Living Council.

(c) Manner and reporting. Each quarterly report required under paragraph 1) of this section shall be made in accordance with forms and instructions issued the Cost of Living Council.]

5. During its last fiscal quarter, did the firm charge a price for a substantial oduct which exceed by more than 1.5% the price lawfully in effect for that :oduct on January 10, 1973, or on the date 12 months preceding the end of the arterly reporting period, whichever is later?

Yes

No

["Substantial product" means a product, product line, service, or service line,. 3 called for in lines 1-19 of Part VI of the Form CLC-2, and in item 24 of Part I of the Form CLC-22, or any continuation schedule, in accordance with the structions to the Form CLC-2, and to the Form CLC-22, which accounted for percent or more of the business enterprise's annual sales or revenues as defined or purposes of the CLC-2 in Part 130 and for purposes of the CLC-22 in Part 50 of this title (6 CFR § 102.53).]

6. If the answers to questions three through five were affrmative and if, of Tovember 1, 1973, more than 45 days had passed since the end of the firm's last scal quarter, has the firm filed either a CLC-2 (for fiscal quarters ending prior › August 13, 1973) or a CLC-22 (for fiscal quarters ending after August 12, 973) prepared for public disclosure?

Yes
No

7. If the response to question five is negative, the firm must file a CLC-2 or a LC-22 within 45 days of the end of the fiscal quarter, whichever is later. Failure ɔ file a required report may constitute a violation of the Economic Stabilization ct.

§ 150.163 Effect of failure to file or maintain reports or other documents required by or under certain sections of this part.

(a) If a firm which is required to file a report or other document with the Cost of Living Council pursuant to the provisions of this part or an order issued y the Council does not, within the time limits prescribed, file the report or other Locument

(1) The firm may not implement any further price increases including price ncreases which could otherwise be implemented pursuant to § 150.155 until it as complied with that reporting requirement and has obtained the special aproval of the Council;

(2) Except to the extent specifically authorized otherwise by the Council in iny case, based upon a written request of the firm concerned citing hardship or nequity, action is suspended on all requests for exception filed by that firm until t has complied with the reporting requirement; and

(3) The Council may, whenever it considers it appropriate under the circumtances, order the firm to reduce any of its prices.

(b) Each day that a firm fails to comply with a reporting requirement pursuant to this part pertaining to reports, or with an order under this part, is conidered to constitute a separate violation of this part of that order.

150.21 Sanctions.

(a) Whoever willfully violates any order or regulation under this part shall be subject to a fine of not more than $5,000 for each violation.

(b) Whoever violates any order or regulation under this part shall be subject

to a civil penalty of not more than $2,500 for each violation.]

Subject to the provisions of 18 U.S.C. § 1001, I certify that the answers submitted on this questionnaire are factually correct and in accordance with economic stabilization regulations (Title 6, Code of Federal Regulations).

(Signature)

(Title of Chief Executive Officer or other authorized Executive Officer)

Date