CONTENTS HEARING DAYS Mathias, Hon. Charles McC., Jr., a U.S. Senator from the State of Mary- land; ranking minority member, Subcommittee on Separation of Powers. Binsted, Charles L., executive director, Greater Washington-Maryland Service Station Association, and president, National Congress of Dunkelberger, Edward, Esq., of the law firm of Covington & Burling, Washington, D.C., accompanied by John Hodges, Esq., of the law firm of Covington & Burling, Washington, D.C.. Gellhorn, Ernest, professor of law, University of Virginia, accompanied by David Larkin, Terrence Harders, Tim Smith, and Gordon Thompson, Adamy, Clarence G., president, National Association of Food Chains, 139 Silberman, Laurence H., Esq., of the law firm of Steptoe & Johnson, Wash- Walker, William N., general counsel, Cost of Living Council, accompanied by Charles Emley, associate director, operations; Andrew Munroe, deputy general counsel; Jeffrey Berlin, associate general counsel for pay matters; Melvin Goldstein, director of exceptions, Office of Price Stabili- zation; Richard Garvey, director of exceptions, Office of Health; and Robert Evers, director of exceptions, Office of Food............ American Hospital Association, John Alexander McMahon, president - American Nursing Home Associations, Dr. Thomas G. Bell, executive vice Associated Builders and Contractors, Inc. Associated General Contractors of America_. Answers to questions in writing propounded by Senator Charles McC. Mathias, Jr., to William N. Walker, general counsel, Cost of Living Council; Robert E. Bradford, associate director, congressional affairs, letter of December 11, 1973. Answers to questions in writing propounded by Senator William D. The Johns Hopkins Hospital, W. Thomas Barnes, vice president and treasurer, "Comments on Relations With the Cost of Living Council"__ March, Eugene A., vice president, Colt Industries, Inc. Machinery and Allied Products Institute, Charles Stewart, president, letter National Association of Wholesaler-Distributors, Dirk Van Dongen, director of administration, letter of October 18, 1973. Tax Analysts and Advocates, Samuel Hastings-Black, staff attorney, Washington, D:C:, "The Internal Revenue Service, the Freedom of Information Act, and the Cost of Living Council," January 31, 1974---- Wertheimer, Richard J., Esq., of the law firm of Arnold & Porter, Washing- 163 176 Economic Stabilization Act of 1970, as amended___ Economic Stabilization Act of 1970, as amended, section 205 (Confiden- Economic Stabilization Act of 1970, as amended, section 207- ECONOMIC STABILIZATION PROGRAM REGULATIONS Title 6, chapter I. Part 150-Cost of Living Council Phase IV Regulations. Federal Register, July 20, 1973.. Cost of Living Council (6 CFR Parts 130 and 150) Phase IV Regulations- Notice of Proposed Rulemaking. Federal Register, July 20, 1973. Title 6-Economic Stabilization. Chapter I-Cost of Living Council. Part 140-Cost of Living Council Freeze Regulations, Exemption of Providers of Health Services. Federal Register, July 20, 1973 Title 6-Economic Stabilization. Chapter I-Cost of Living Council. Part 155-Phase IV Price Procedures, Federal Register August 10, 1973. Title 6-Economic Stabilization. Chapter I-Cost of Living Council. Part 102-Public Access to Records. Federal Register, August 15, 1973. Cost of Living Council (6 CFR Part 152) Executive and Variable Com- pensation, Notice of Proposed Rulemaking: Federal Register, August 31, Cost of Living Council (6 CFR Part 150) Stage B for Food; Notice of Proposed Rulemaking. Federal Register, August 24, 1973.. Title 6-Economic Stabilization. Chapter I-Cost of Living Council. Part 130-Cost of Living Council Phase III Regulations. Part 140-Cost of Living Council Freeze Regulations. Stage A Amendments. Federal Cost of Living Council (6 CFR Part 150). Phase IV Price Regulations. Notice of Proposed Rulemaking. Federal Register, October 17, 1973.. Phase IV Price Regulations (6 CFR Part 150-State and Local Govern- ment Sales of Petroleum Products. Federal Register, October 26, 1973... Phase IV Regulations, Part 152-Extension of Interim Rules Applicable to the Food Industry and Miscellaneous Changes. Federal Register, Title 6-Economic Stabilization. Chapter I-Cost of Living Council. Phase IV Price Rulings 1973-1. Subpart L and Loss-Profit Rules. Federal Register, October 26, 1973.. Title 6-Economic Stabilization. Chapter I-Cost of Living Council. Part 102-Public Access to Records (Public Disclosure of CLC Reports). 3 123 Cost of Living Council (CFR Part 150)-Health Care-Notice of Pro- posed Rulemaking. Federal Register, November 7, 1973. Cost of Living Council (6 CFR, Part 150) Phase IV Price Regulations- Proposed Price Controls for Petroleum Industry. Federal Register, Title 6-Economic Stabilization. Chapter I-Cost of Living Council 526 Executive Order 11588, "Providing for the Stabilization of Wages and Executive Order 11615, "Providing for Stabilization of Prices, Rents, Executive Order 11660, "Amendment of Executive Order No. 11640, Further Providing for the Stabilization of the Economy," March 25, 1972, 37 Federal Register 6175.. Executive Order 11674, "Amending Executive Order No. 11640, as Amended, Further Providing for the Stabilization of the Economy,' June 30, 1972, Federal Register 12913-- Executive Order 11695, "Further Providing for the Stabilization of the Economy," January 12, 1973, 38 Federal Register 1473-- Executive Order 11723, "Further Providing for the Stabilization of the Economy," June 15, 1973, 38 Federal Register 15763-- Executive Order 11730, "Further Providing for the Stabilization of the COST OF LIVING COUNCIL-DOCUMENTS Contracts, fiscal year 1973 and fiscal year 1974, chart.. Excerpts from testimony of Gregory Moses, director of exceptions and Health Division, in the civil action entitled Fox Grocery Co. v. Cost of Living Council, No. 73–375, before the U.S. District Court for the 393 Form letter sent to business firms, Economic Stabilization Program, Cost Form CLC-22 and instructions for the preparation of Form CLC-22. Memorandum of agreement, Cost of Living Council and the Internal 282 News release, "CLC Announces Establishment of a Committee of Senior 94 Organizational charts. 266 Organizational changes, memorandum, James W. McLane, Deputy Director, Cost of Living Council, to staff, August 30, 1973__ Price exception requests processing time, chart- 112 Food Industry Wage and Salary Committee, notice of closed meeting of November 1, 1973; Henry H. Perritt, Jr., Executive Secretary, Cost of COURT CASES Amalgamated Meat Cutters & Butcher Workmen of North America, AFL-CIO Murray Anderson, et al. v. John T. Dunlop, et al., civil action No. 1621-73, Consumers Union of the United States, Inc., et al. v. Cost of Living Council, et al., No. DC-17, Temporary Emergency Court of Appeals of the United Page 385 The Johns Hopkins Hospital v. Cost of Living Council, et al., civil action in 178 353 SUPPLEMENTAL MATERIALS Chronology showing major events in the operation of the Wage-Price Hathaway, Hon. William D., a U.S. Senator from the State of Maine; Committee on Banking, Housing and Urban Affairs, U.S. Senate, ques- tions propounded to Cost of Living Council, October 10, 1973.... 219 Form 52-Economic Stabilization Program, Income Expense Analysis 191 Office of Management and Budget Form SF 83, "Clearance Request and 36 Machinery and Allied Products Institute, Charles Stewart, president, 168 Supplementary Statement Regarding Price Rollback Imposed by phase IV 171 Mathias, Hon. Charles McC., Jr., a U.S. Senator from the State of Mary- 109 National Association of Wholesale Distributors: Dirk Van Dongen, director of administration, letter to Cost of Living 157 Fetition to the Cost of Living Council for rescission of certain regu- 158 305 NEWS ARTICLES Grossman, Jonathan, "Wage and Price Controls During the American 361 (See also Appendix to Hearings: Volume 2. I. Internal Revenue Service, Economic Stabilization Program, Phase IV Handbook, Revised September 1973; II. Internal Revenue Service, Economic Stabilization Program, Health Care CONGRESSIONAL OVERSIGHT OF ADMINISTRATIVE AGENCIES (Cost of Living Council) TUESDAY, OCTOBER 9, 1973 U.S. SENATE, SUBCOMMITTEE ON SEPARATION OF POWERS, COMMITTEE ON THE JUDICIARY, Washington, D.C. The subcommittee met, pursuant to notice, at 10:05 a.m., in room 6226, New Senate Office Building, Senator Charles McC. Mathias, Jr., presiding. Present: Senator Mathias. Also present: Walker F. Nolan, Jr., deputy chief counsel; J. L. Pecore, assistant counsel; Quincy Rodgers, minority counsel; and Telma P. Moore, executive assistant. Senator MATHIAS. The subcommittee will come to order. OPENING STATEMENT OF SENATOR MATHIAS We are now in the third year of the fourth so-called phase of a national economic stabilization program, otherwise known as wage and price controls. From the outset, this program has been characterized as a temporary program. The time has come, I believe, to question what is meant by the word "temporary" insofar as it applies to national wage and price controls. If, as it appears, the program is to be with us for a prolonged period of time, then it is vitally important that we examine the manner in which it is operating. The program is administered by the Cost of Living Council, a small group of men who have been given enormous authority to make decisions affecting all elements of the Nation's economy. This authority, which the Congress has given to the President and through him to the Cost of Living Council, is largely unchecked. The Council can make or break any business in America. Yet, it is subject to unclear and uncertain statutory standards and can wield its authority without hearings, without explanations, and with only a limited right of appeal. This is executive discretion in the extreme. Such authority on a temporary basis under emergency circumstances is not without precedent. As cochairman of the Special Committee on the Termination of the National Emergency, I have been exploring the effect of granting similar power in other circumstances. I can appreciate that under emergency circumstances and on a truly temporary basis, the Congress has been traditionally more willing to forgo limitations on executive authority. |