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COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE

HARLEY O. STAGGERS, West Virginia, Chairman

TORBERT H. MACDONALD, Massachusetts SAMUEL L. DEVINE, Ohio

JOHN JARMAN, Oklahoma

JOHN E. MOSS, California

JOHN D. DINGELL, Michigan

PAUL G. ROGERS, Florida

LIONEL VAN DEERLIN, California

J. J. PICKLE, Texas

FRED B. ROONEY, Pennsylvania
JOHN M. MURPHY, New York

DAVID E. SATTERFIELD III, Virginia
BROCK ADAMS, Washington

W. S. (BILL) STUCKEY, JR., Georgia
PETER N. KYROS, Maine
BOB ECKHARDT, Texas
RICHARDSON PREYER, North Carolina
BERTRAM L. PODELL, New York
HENRY HELSTOSKI, New Jersey
JAMES W. SYMINGTON, Missouri
CHARLES J. CARNEY, Ohio
RALPH H. METCALFE, Illinois
GOODLOE E. BYRON, Maryland
WILLIAM R. ROY, Kansas
JOHN BRECKINRIDGE, Kentucky
THOMAS A. LUKEN, Ohio

ANCHER NELSEN, Minnesota

JAMES T. BROYHILL, North Carolina
TIM LEE CARTER, Kentucky
CLARENCE J. BROWN, Ohio
DAN KUYKENDALL, Tennessee
JOE SKUBITZ, Kansas

JAMES F. HASTINGS, New York

JAMES M. COLLINS, Texas

LOUIS FREY, JR., Florida
JOHN WARE, Pennsylvania

JOHN Y. MCCOLLISTER, Nebraska
DICK SHOUP, Montana

BARRY M. GOLDWATER, JR., California
NORMAN F. LENT, New York

H. JOHN HEINZ III, Pennsylvania
WILLIAM H. HUDNUT III, Indiana
SAMUEL H. YOUNG, Illinois

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Barnes, Ernest, Administrative Law Judge, Federal Trade Commis-

sion..

Engman, Hon. Lewis A., Chairman, Federal Trade Commission

Higgins, Eugene, attorney, Bureau of Competition, Federal Trade

Commission...

Rosen, Robert, attorney, Bureau of Competition, Federal Trade

Commission....

Ward, Alan, attorney, Baker, Hostetler, Frost and Towers. -
Youngwood, Gordon, attorney, Bureau of Competition, Federal Trade
Commission_-_-

Subsequent correspondence relating to March 13, 1974 hearing-

Letter dated April 17, 1974, with attachments, from FTC Chairman
Lewis A. Engman to the Hon. Harley O. Staggers, chairman, Sub-
committee on Investigations, responding to questions raised at sub-
committee hearing..

Letter dated April 17, 1974, from FTC Chairman Lewis A. Engman to
the Hon. Harley O. Staggers, chairman, Subcommittee on Investiga-
tions, responding to questions raised at subcommittee hearing____.
Letter dated May 16, 1974, from Chairman Harley O. Staggers to FTC
Chairman Lewis A. Engman, transmitting questions to the Com-
mission for inclusion in the record____.

Letter dated July 3, 1974, with enclosure, from FTC Chairman Lewis
A. Engman to the Hon. Harley O. Staggers, chairman Subcommittee
on Investigations, responding to questions submitted in writing by
the Subcommittee__

Prior correspondence relating to March 13, 1974 hearing-
Letter dated November 8, 1973, from Chairman Harley O. Staggers
to FTC Chairman Lewis A. Engman, asking for comments on three
bills designed to promote the independence of regulatory agencies__
Letter dated December 19, 1973, from Chairman Harley O. Staggers
to FTC Chairman Lewis A. Engman requesting comments on three
agency independence bills____

Letter dated January 14, 1974, from Chairman Harley O. Staggers to
FTC Chairman Lewis A. Engman requesting comments on three
agency independence bills_.

Letter dated February 21, 1974, from Chairman Harley O. Staggers to
FTC Chairman Lewis A. Engman requesting comments on three
agency independence bills as well as information on the Energy Effi-
ciency Ratings (EER) on electrical appliances and access to files on
Kroger Company case--

Letter dated August 7, 1973, from Chairman Harley O. Staggers to
FTC Chairman Lewis A. Engman re energy efficiency ratings.
Letter dated November 9, 1973, from FTC Secretary Charles A. Tobin
to the Honorable Harley O. Staggers, chairman, Subcommittee on
Investigations, re energy efficiency ratings_----

Letter dated January 24, 1974, from Chairman Harley O. Staggers to

FTC Chairman Lewis A. Engman, re energy efficiency ratings and

asking if FTC contemplates a trade regulatory rule proceeding on

electrical appliances and automobiles--

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Prior correspondence relating to March 13, 1974, hearing-Continued
Letter dated February 25, 1974, from FTC Chairman Lewis A. Engman

to the Hon. Harley O. Staggers, chairman, Subcommittee on In-
vestigations, re FTC reorganization and the possible issuance of Page
certain proposed rules__

Letter dated March 11, 1974, from FTC Chairman Lewis A. Engman to the Hon. Harley O. Staggers, chairman, Subcommittee on Investigations, re energy efficiency characteristics of electrical appliances

Letter dated December 6, 1973, from FTC Secretary Charles A. Tobin to the Hon. Warren G. Magnuson, chairman, Senate Committee on Commerce, re comments on certain sections of S. 2176, 93d Congress

Material relating to July hearings

Biographical sketch of Alan S. Ward---

Chronologies:

Kroger Co. case_

11

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12

126

107

ITT-Continental Baking Co. case

108

FTC's Beer case

110

Memorandum dated July 10, 1973, from Mary Gardener Jones to
Federal Trade Commission re the Kroger Co., File Nos. 691 0014
and 711 0027__.

103

Alan S. Ward letter and affidavit dated October 8, 1974

Relevant portions of House Rule XI and H. Res. 182_

SEC staff summary sheet of a document subpenaed by the Commission from ITT___

Appendix A: Correspondence between Special Subcommittee on Investi-
gations and Justice Department_

Appendix B: Additional pertinent correspondence between FTC and the
Special Subcommittee on Investigations__

1

132

209

292

237

Appendix F: Excerpt from Report of the ABA Commission to Study the
Federal Trade Commission, September 15, 1969_.

Appendix E: Opinion in Tysons Corner Regional Shopping Center, et al. v. Federal Trade Commission, et al. (1972) reported in Trade Regulation Reporter paragraph 74.091, at 92.487__

Appendix D: Additional pertinent FTC documents relating to the Kroger
Co. case--

Appendix C: Additional pertinent FTC documents relating to the ITT-
Continental Baking Co. case--

243

311

381

385

FEDERAL TRADE COMMISSION PROCEDURES

WEDNESDAY, MARCH 13, 1974

HOUSE OF REPRESENTATIVES,

SPECIAL SUBCOMMITTEE ON INVESTIGATIONS,

COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE,

Washington, D.C. The subcommittee met at 10 a.m., pursuant to call, in room 2322, Rayburn House Office Building, Hon. Harley O. Staggers, chairman, presiding.

Present: Representatives Staggers, Pickle, Devine, and Lent.
The CHAIRMAN. The committee will come to order.

The Chair will make a short statement before we get started. Before we hear from Chairman Engman this morning, I would like to set forth the jurisdiction of this subcommittee and the legislative purpose of this hearing.

Rule 11 of the House of Representatives charges the Committee on Interstate and Foreign Commerce with responsibility for legislation involving interstate commerce generally. The same rule also requires that we maintain a continuous review of the laws within our jurisdiction. Furthermore, it requires the same kind of continuous review as to how those laws are being administered.

Unless there is objection, and in the interest of saving time, I will direct that the relevant portions of House Rule 11 be inserted in the record at this point. Chairman Engman has been supplied with a copy of the rule as well as the text of House Resolution 182, from which the subcommittee derives its investigatory authority. [The documents referred to follow:]

SELECTED PROVISIONS OF THE RULES OF THE HOUSE OF REPRESENTATIVES APPLICABLE TO SUBCOMMITTEE ACTIVITIES

RULE XI. POWERS AND DUTIES OF COMMITTEES

All proposed legislation, messages, petitions, memorials, and other matters relating to the subject listed under the standing committees named below shall be referred to such committees respectively:

12. Committee on Interstate and Foreign Commerce.

(a) Interstate and foreign commerce generally.

(b) Civil aeronautics.

(c) Inland waterways.

(d) Interstate oil compacts and petroleum and natural gas, except on the public lands.

(e) Public health and quarantine.

(f) Railroad labor and railroad retirement and unemployment, except revenue measures relating thereto.

(g) Regulation of interstate and foreign communications.

(1)

(h) Regulation of interstate and foreign transportation, except transportation by water not subject to the jurisdiction of the Interstate Commerce Commission.

(i) Regulation of interstate transmission of power, except the installation of connections between Government water-power projects.

(j) Securities and exchanges.

(k) Weather Bureau.

*

(27). (a) The Rules of the House are the rules of its committees and subcommittees so far as applicable, except that a motion to recess from day-to-day is a motion of high privilege in committees and subcommittees. Committees shall adopt written rules not inconsistent with the Rules of the House and those rules shall be binding on each subcommittee of that committee. Each subcommittee of a committee is a part of that committee and is subject to the authority and direction of that committee.

(b) Each committee shall keep a complete record of all committee action. Such record shall include a record of the votes on any question on which a record vote is demanded. The result of each rollcall vote in any meeting of any committee shall be made available by that committee for inspection by the public at reasonable times in the offices of that committee. Information so available for public inspection shall include a description of the amendment, motion, order, or other proposition and the name of each Member voting for and each Member voting against such amendment, motion, order, or proposition, and whether by proxy or in person, and the names of those Members present but not voting. With respect to each record vote by any committee on each motion to report any bill or resolution of a public character, the total number of votes cast for, and the total number of votes cast against, the reporting of such bill or resolution shall be included in the committee report.

(c) All committee hearings, records, data, charts, and files shall be kept separate and distinct from the congressional office records of the Member serving as chairman of the committee; and such records shall be the property of the House and all Members of the House shall have access to such records. Each committee is authorized to have printed and bound testimony and other data presented at hearings held by the committee.

(d) (1) It shall be the duty of the chairman of each committee to report or cause to be reported promptly to the House any measure approved by his committee and to take or cause to be taken necessary steps to bring the matter to a vote.

(2) In any event, the report of any committee on a measure which has been approved by the committee shall be filed within 7 calendar days (exclusive of days on which the House is not in session) after the day on which there has been filed with the clerk of the committee a written request, signed by a majority of the members of the committee, for the reporting of that measure. Upon the filing of any such request, the clerk of the committee shall transmit immediately to the chairman of the committee notice of the filing of that request. This subparagraph does not apply to a report of the Committee on Rules with respect to the rules, joint rules, or order of business of the House or to the reporting of a resolution of inquiry addressed to the head of an executive department.

(3) If, at the time of approval of any measure or matter by any committee (except the Committee on Rules) any member of the committee, gives notice of intention to file supplemental, minority, or additional views, that member shall be entitled to not less than 3 calendar days (excluding Saturdays, Sundays, and legal holidays), in which to file such views, in writing and signed by that member, with the clerk of the committee. All such views so filed by one or more members of the committee shall be included within, and shall be a part of, the report filed by the committee with respect to that measure or matter. The report of the Committee upon that measure or matter shall be printed in a single volume which-

(A) shall include all supplemental, minority, or additional views which have been submitted by the time of the filing of the report, and

(B) shall bear upon its cover a recital that supplemental, minority, or additional views are included as part of the report.

This paragraph does not preclude—

(i) the immediate filing or printing of a committee report unless timely request for the opportunity to file supplemental. minority, or additional views has been made as provided by this subparagraph; or

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