fied; and, upon filing in good faith of a timely and sufficient affidavit of personal bias or disqualification of the trial examiner, the Board will determine the matter as a part of the record and decision in the case.

(e) Except as permitted by the Administrative Procedure Act (60 Stat. 237) the trial examiner shall not consult any person or party on any fact in issue unless upon notice and opportunity for all parties to participate, nor be responsible to or subject to the supervision or direction of any officer, employee, or agent engaged in the performance of investigative or prosecuting functions.

(f) The trial examiner shall have authority in connection with the hearing to administer oaths and affirmations, rule upon offers of proof and receive relevant evidence, regulate the course of the hearing, hold conferences for the settlement or simplification of the issues by consent of the parties, dispose of procedural requests or similar matters, certify any question to the Board (at his discretion or at the Board's direction) for its consideration and disposition, and take other action consistent with the rules or regulations of the Board and other requirements of law.

(g) Any oral or documentary evidence may be received, except that irrelevant, immaterial, or unduly repetitious evidence shall be excluded.

(h) Objections to the admission or exclusion of evidence shall be in short form, stating the grounds of objections relied upon, and the transcript shall not include argument or debate thereon except as ordered by the Board or the trial examiner. Rulings on such objections shall be a part of the transcript except as the Board may otherwise require with respect to a particular ruling. Exception to any such ruling must be noted before the trial examiner in order to be urged in the consideration of the matter by the Board, except as otherwise permitted by the Board.

(i) The Board or trial examiner may call for the production of further evidence upon any issue, and, upon appropriate notice, the trial examiner may reopen any hearing at any time prior to his report or the Board may reopen any hearing at any time prior to its order disposing of the proceeding.

(j) Subpoenas requiring the attendance of witnesses from any place in the United States at any designated place

723338-47-SUPP. IX--BK. 2 -31

of hearing, or requiring the production of documentary evidence, will be issued only by the Board and as authorized by law. Application may be made either to the Secretary or to the presiding trial examiner, who will report to the Board. Such application must be in writing and must state, as definitely as practicable, the reasonable scope of the evidence sought (reasonably identifying any document desired) and the facts to be proved thereby, in sufficient detail to indicate the materiality and relevance thereof.

(k) Witnesses summoned by the Board at the request of the respondent or of counsel for the Board will be paid the same fees and mileage that are paid to witnesses in the courts of the United States, unless the Board otherwise directs. Such payments as witnesses may be entitled to receive under this section shall be made by the party at whose instance the witnesses appear.

§ 263.4 Continuances, changes, extensions of time. Except as otherwise, expressly provided by law, the Board may by the Order for Hearing or otherwise provide time limits different from those specified in this part, may on its own motion or for cause shown extend any time limits prescribed by this part or an Order for Hearing, and may continue or adjourn any hearing. Each hearing shall begin at the time and place ordered by the Board, but thereafter may be successively adjourned to such time and place as may be ordered by the Board or by the trial examiner.

§ 263.5 Proposed findings and conclusions. (a) Following any hearing before a trial examiner the transcript of the testimony shall forthwith be filed with the Secretary of the Board.

(b) Within 15 days after the filing of the transcript with the Secretary of the Board (or within 15 days after the party's receipt of a copy of such transcript, if the party has ordered a copy promptly at the conclusion of the hearing), any party or counsel to the Board may submit to the trial examiner a statement in writing setting forth proposed findings and conclusions, which may be accompanied by a brief in support thereof. If a party or counsel to the Board submits any such proposed findings or conclusions or briefs, he shall as promptly as practicable furnish copies thereof to the opposing side. All such proposed findings or conclusions shall be a part of the record.

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§ 263.6 Trial examiner's report. (a) The trial examiner, within 15 days after the expiration of the time allowed for filing proposed findings and conclusions, or within such different period as the Board may prescribe, shall file with the Secretary of the Board his report containing his recommended decision.

(b) A copy of such report shall be forthwith served on each party and on counsel to the Board by the Secretary of the Board or such other person as the Board may designate for the purpose.

§ 263.7 Exceptions. (a) Within 15 days after receipt of a copy of the trial examiner's report, any party or counsel to the Board may file exceptions to the recommended decision of the trial examiner or any portion thereof, or to his failure to follow a proposed finding or conclusion, or to the admission or exclusion of evidence; and within such period he may file a brief in support of his contentions and exceptions. A copy of such exceptions and briefs shall be forthwith served on each party and on counsel to the Board by the Secretary of the Board or such other person as the Board may designate for the purpose. Exceptions shall be argued only at the final hearing, if any, on the merits before the Board or one or more members thereof.

(b) Objections to the recommended decision of the trial examiner or to his failure to follow a proposed finding or conclusion not saved by exception filed pursuant to this section will be deemed to have been abandoned and may be disregarded. Objections to the admission or exclusion of evidence not saved by exception at the time of the hearing for the purpose of taking evidence and included in the exceptions filed pursuant to this section will be deemed to have been abandoned and may be disregarded.

(c) Exceptions not briefed in accordance with this section and § 263.8 may be regarded by the Board as waived.

§ 263.8 Briefs. (a) All briefs shall be confined to the particular matters in issue. Each exception or proposed finding or conclusion which is briefed shall be supported by a concise argument and by citation of such statutes, decisions and other authorities, and by page references to such portions of the record, as may be relevant. If the exception relates to the admission or exclusion of evidence, the substance of the evidence admitted or excluded shall be set forth in the brief

with appropriate references to the transcript.

(b) Within 10 days after receipt of an original brief any party or counsel to the Board may file a reply brief, which shall be confined to matters in the original brief of the opposing party. Copies of any such reply brief shall be filed and served or furnished the opposing party in the same manner as specified for the original brief.

(c) Briefs not filed on or before the time fixed in this part will be received only upon special permission of the Board.

§ 263.9 Appearance before Board or Board members. Upon written request of any party or of counsel to the Board, the Board may, if it deems such action appropriate, order the matter to be set down for oral argument before the Board, or one or more members thereof. Such request must be made within the time provided for filing the original briefs.

§ 263.10 Taking evidence before Board or member thereof. Instead of hearings for the purpose of taking evidence before a trial examiner as specified in § 263.3 (a), such hearings may, as the Board determines, be held before the Board, one or more of its members, or more than one trial examiner. Hearings so held shall be subject to the same procedure as that applicable under this part to hearings before a trial examiner, except that the Board and members thereof are not subject under the law to the requirements regarding separation of functions and, with respect to hearings before the Board, the trial examiner's report referred to in § 263.6 and the related exceptions and briefs referred to in § 263.7 will be omitted.

§ 263.11 Filing papers, docket, computation of time. (a) All reports, exceptions, briefs, and other papers required to be filed with the Board in any proceeding shall be filed with the Secretary. Any such papers may be sent to him by mail or express, but must be received by him in the office of the Board in Washington, D. C., within the time limit, if any, for such filing.

(b) Unless and until otherwise ordered by the Board, the Order for Hearing, the transcript, the report of the trial examiner, exceptions thereto, proposed findings or conclusions, and briefs

in support of such proposals or in support of or in opposition to such exceptions, and other papers which are filed in connection with any hearing shall not be made public and shall be for the confidential use only of the Board, appropriate members of its staff, the respondent or respondents, and counsel.

(c) In computing any period of time prescribed or allowed by this part or by order of the Board, the day of the act, event, or default after which the designated period of time begins to run is not to be included. The last day of the period so computed is to be included, unless it is a Saturday, Sunday or a legal holiday in the District of Columbia, in which event the period runs until the end of the next day which is not a Saturday, Sunday, or holiday in the District of Columbia. Intermediate Saturdays, Sundays and holidays shall be included in the computation. A half-holiday shall be considered as other days and not as a holiday.

(d) The Order for Hearing may provide for the number of copies of papers to be filed.

§ 263.12 Service of reports, exceptions, briefs, and other papers. All reports, exceptions, briefs, proposed findings or conclusions, or other documents or papers required by this part to be served on any party to a proceeding, cr on counsel to the Board, shall be served by the Secretary of the Board or such other person as the Board may designate for the purpose. Such service, except on counsel to the Board, shall be made by personal service on the party or his attorney of record, by registered mail addressed to the party or his attorney of record, or by other appropriate means specified by the Board. Service by registered mail shall be deemed to be made as of the date of receipt by the person addressed.

263.13 Formal requirements as to papers filed in proceedings. (a) All papers filed under this part shall be typewritten, mimeographed, or printed.

(b) All papers shall be signed by the party filing the same, or his duly authorized agent or attorney, or counsel to the Board, and, except in the case of counsel to the Board, must show the address of the signer.

(c) All papers filed shall include at the head thereof, or on a title page, the

AUTHORITY: §§ 271.1 to 271.7, inclusive, issued under sec. 12A, 48 Stat. 168, as amended, 60 Stat. 237; 12 U.S.C., and Sup., 263, 5 U.S.C., Sup., 1001 et seq.

SOURCE: §§ 271.1 to 271.7, inclusive, contained in Regulations, Board of Governors of the Federal Reserve System, Aug. 28, 1946, effective Sept. 11, 1946, 11 F.R. 177A-517.

§ 271.1 Basis and scope. This part is issued by the Federal Open Market Committee (sometimes called the Committee in this part) pursuant to the Administrative Procedure Act (60 Stat. 237) and the Federal Reserve Act (sec. 12A, 48 Stat. 168, as amended; 12 U.S.C., and Sup., 263). Included therein are the rules specified by sections 3 (a) (1), 3 (b), and 3 (c) of the Administrative Procedure Act.

§ 271.2 Composition and meetings of Committee-(a) Members. The Federal Open Market Committee consists of the members of the Board of Governors of the Federal Reserve System and five representatives of the Federal Reserve Banks who are Presidents or First Vice Presidents of such banks. The representatives of the Federal Reserve Banks, and an alternate for each representative, are elected in accordance with section 12A of the Federal Reserve Act (sec. 12A, 48 Stat. 168, as amended; 12 U.S.C., and Sup., 263) for terms of one year commencing on March 1 of each year.

(b) Chairman and Vice Chairman. At its first meeting on or after March 1 of each year, the Committee selects a Chairman and a Vice Chairman from among its membership.

(c) Meetings. The Committee meets at Washington, D. C., on call by the Chairman of the Board of Governors of

the Federal Reserve System or at the request of three members of the Committee, at least four times each year and oftener if deemed necessary.

§ 271.3 Executive Committee-(a) Members. At its first meeting on or after March 1 of each year, the Federal Open Market Committee selects from among its membership an Executive Committee consisting of three members of the Board of Governors of the Federal Reserve System and two of the representatives of the Federal Reserve Banks. Alternates to serve in the absence of members of each group represented on the Executive Committee are likewise selected. The Chairman of the Federal Open Market Committee is one of the members of the Executive Committee and serves as its Chairman.

(b) Meetings. The Executive Committee meets periodically, on call of the Chairman or at the request of two members, as necessary in the performance of the duties assigned to it.

(c) Duties. The duties of the Executive Committee are:

(1) To direct the execution of transactions in the open market in accordance with open-market policies adopted by the Federal Open Market Committee;

(2) To allocate the Government securities and other obligations held in the System Open Market Account among the several Federal Reserve Banks in accordance with the principles determined by the Federal Open Market Committee;

(3) To keep the members of the Federal Open Market Committee informed of all transactions executed under the direction of the Federal Open Market Committee and of all allocations and reallocations of government securities and other obligations held in the System Open Market Account; and

(4) To perform such other functions and duties in connection with openmarket operations as may be assigned to it from time to time by the Federal Open Market Committee.

§ 271.4 Other personnel-(a) Official staff. The official staff of the Federal Open Market Committee includes its Secretary, Assistant Secretary, General Counsel, Assistant General Counsel, Economist, and Associate Economists, who perform the duties indicated by their titles. These staff members are selected from among the officers and

employees of the Board of Governors of the Federal Reserve System and the Federal Reserve Banks.

(b) System Open Market Account. One of the Federal Reserve Banks is selected by the Committee to execute transactions for the System Open Market Account. Such bank selects a Manager of the System Open Market Account, satisfactory to the Committee.

(c) Others. The services of other officers and employees of the Board of Governors of the Federal Reserve System and Federal Reserve Banks are made available and are utilized by the Committee as required.

§ 271.5 Submittals, petitions, and requests (a) Place. The mailing address of the Federal Open Market Committee is: Federal Reserve Building, 20th Street and Constitution Avenue, Washington 25, D. C. The Committee customarily meets at the offices of the Board of Governors of the Federal Reserve System at that address.

(b) Method. All submittals, petitions, and requests, including requests for access to information, shall be made in writing and mailed to the Committee at the address stated in paragraph (a) of this section. Any petition or request shall be signed by the person making it, or his duly authorized agent, and shall, in so far as practicable, clearly, completely and concisely state his full name and address, the facts involved (including the purposes for which any unpublished information requested will be used if made available), the action desired, the person's interest in the matter, and the reasons why the petition or request should be granted.

or

§ 271.6 Availability of information— (a) FEDERAL REGISTER. Rules describing the Committee's organization and procedure and any substantive rules statements of policy which are formulated and adopted by the Committee for the guidance of the public will be published in the FEDERAL REGISTER.

(b) Policy record. A complete record of the actions taken by the Committee during the preceding year upon all matters of policy relating to open market operations, showing the votes taken and the reasons underlying the actions, is included in each annual report made to Congress by the Board of Governors of the Federal Reserve System in accord

ance with section 10 of the Federal Reserve Act.

(c) Unpublished information. Except as may be specifically authorized by the Committee or its Executive Committee, or as may be required in the performance of duties for, or pursuant to the direction of, the Committee, no person shall disclose, or permit the disclosure of, any unpublished information of the Committee to anyone, whether by giving out or furnishing such information or copy thereof, by allowing any person to inspect, examine or copy such information or copy thereof, or by any other means. Unpublished information of the Committee shall include all information concerning the proceedings, deliberations, discussions, and actions of the Committee and all information or advice coming to the Committee or to any member of the Committee or any officer, employee or agent of the Committee, the Board of Governors of the Federal Reserve System, or any Federal Reserve Bank, in the performance of duties for, or pursuant to the direction of, the Committee, whether contained in files, memoranda, documents, reports, books, accounts, records, or papers or otherwise acquired and whether located at the offices of the Board of Governors of the Federal Reserve System, the Federal Reserve Banks, or elsewhere: Provided, That it shall not include information which has been published in accordance with paragraphs (a) and (b) of this section or information which is available to the public through other sources.

(d) Reasons for non-disclosure. The non-disclosure of unpublished information of the Committee generally is required in the public interest for one or more of the following reasons:

(1) Disclosure of unpublished information concerning policies with respect to future open market operations which are under consideration or have been adopted by the Committee, and of unpublished information which might aid in anticipating action by the Committee, would:

(1) Interfere with the accomplishment of the objectives of the Committee's actions taken with a view to accommodating commerce and business and with regard to their bearing upon the general credit situation of the country;

(ii) Permit speculators and others to reap unfair profits or other unfair advantages by speculative trading in securities and otherwise;

(iii) Interfere with the orderly execution of policies adopted by the Committee;

(iv) Result in unnecessary and unwarranted disturbances in the securities markets;

(v) Make

open market operations more costly to the Federal Reserve Banks;

(vi) Interfere with the orderly execution and accomplishment of the objectives of policies adopted by other Government agencies concerned with economic and fiscal matters; and

(vii) Cause misinterpretations and misunderstandings, with possible resultant impairment of public confidence in the nation's financial structure.

(2) The Committee's unpublished information includes much that is furnished to it on a secret or confidential basis and its disclosure would:

(1) Have the effects described in subparagraph (1) of this paragraph;

(ii) Impede the necessary collection of information and advice, much of which cannot be obtained except on a confidential and voluntary basis;

(iii) Unreasonably and unnecessarily disturb and interfere with individual privacy and confidential business relationships.

(e) Requests for unpublished information. Requests for access to unpublished information will be granted only if it clearly appears that disclosure of the information will not be contrary to the public interest for any of the reasons set forth in paragraph (d) of this section.

§ 271.7 Subpoenas—(a) Advice by person served. If any person, whether or not an officer or employee of the Committee, of the Board of Governors of the Federal Reserve System, or of a Federal Reserve Bank, has unpublished information of the Committee and in connection therewith is served with a subpoena, order, or other process requiring his personal attendance as a witness or the production of documents or information upon any proceeding, he shall promptly advise the Committee of such service and of all relevant facts, including the documents and information requested and any facts which may be of assistance in determining whether such documents or information should be made available; and he shall take action at the appropriate time to advise the