ment and compensation of persons in the Government service; newspapers, periodicals, teletype news service, and travel (not to exceed $75,000), and official entertainment expenses of the President, to be accounted for solely on his certificate; [$9,767,000], $9,110,000. [Treasury, Postal Service, and General Government Appropriation Act, 1973.] THE WHITE HOUSE, SALARIES AND EXPENSES These funds provide the President with staff assistance and provide administrative services for the White House Office. Assistant to the President for National Security Affairs. Deputy Assistant to the President for Domestic Affairs. Counsel to the President.... Special assistant to the President. Assistant to the President for Congressional Relations.. Special counsel to the President.. Press Secretary to the President. Administrative Assistant to the President. GS-17, $34,335 to $36,000: Special assistant to the President. Chief executive clerk.. GS-17, $34,335 to $36,000. GS-5, $7,319 to $9,515. GS-4, $6,544 to $8,506.. GS-3, $5,828 to $7,574. GS-2, $5,166 to $6,714.. GS-1, $4,564 to $5,932.. Total permanent positions. 1 2 Unfilled positions, June 30. Mr. STEED. If there are no further questions, may I express the appreciation of the subcommittee for your appearance and patience. I apologize to you for the fact that we have been interrupted several times. We thank you and we are pleased to have this information. Mr. MALEK. Mr. Chairman, we would like to express our appreciation to you and the committee for the opportunity to be present. Mr. STEED. The committee will adjourn until Monday at 2 o'clock. MONDAY, JUNE 4, 1973. ECONOMIC STABILIZATION ACTIVITIES FISCAL YEAR 1974 WITNESSES DR. JOHN T. DUNLOP, DIRECTOR, COST OF LIVING COUNCIL C. R. LANE, ASSISTANT DIRECTOR FOR MANAGEMENT, COST OF JOSEPH F. KUMP, ASSISTANT FISCAL MANAGEMENT OFFICER, INTERNAL REVENUE SERVICE ERNEST E. SALISBURY, JR., DIRECTOR, FINANCIAL MANAGEMENT, COST OF LIVING COUNCIL Mr. STEED. The committee will be in order. The committee is in session this afternoon for the consideration of the 1974 budget request of the economic stabilization program. The appropriation for fiscal year 1973 was $26 million. The budget request for 1974 contained in Senate document 93-14 is $62,654,000, an increase over 1973 of $36,654,000. We are pleased to have the Director of the Cost of Living Council, Mr. John T. Dunlop, with us. Would you like to introduce your associates to the committee? Mr. DUNLOP. On my right is Mr. James W. McLane, the Deputy Director of the Cost of Living Council. He will be answering questions with me; and if I have to leave, I hope that you will let him answer questions in my stead. We also have with us Mr. Preston, Assistant Commissioner for Stabilization, Internal Revenue Service; Mr. Lane, Assistant Director for Management; Mr. Salisbury, our Budget Officer; and Mr. Joseph Kump, Assistant Fiscal Management Officer, Internal Revenue Service. We have prepared a statement with a supplement which has been presented for the record, Mr. Chairman. I would be glad to talk about the Agency or, if you would prefer, I would be happy to answer any questions. Mr. STEED. We will make the biographical sketches of the concerned witnesses a part of the record and then you may proceed with your statement. [The sketches follow:] BIOGRAPHICAL SKETCH OF DR. JOHN T. DUNLOP Dr. John T. Dunlop of Belmont, Mass., was appointed on January 11, 1973, as Director of the Cost of Living Council. He succeeded Donald Rumsfeld who had held the position since October 1971. Dr. Dunlop has taught economics at Harvard University since 1938 and was the dean of the Faculty of Arts and Sciences. He has been chairman of the Construction Industry Stabilization Committee since 1971, has served as a member of the National Commission on Productivity since 1970, and has been a member of the Construction Industry Collective Bargaining Commission since 94-122 O - 73-41 He was born in Placerville, Calif., on July 5, 1914. Dr. Dunlop received his A.B. degree in 1935 and Ph. D. in 1939 from the University of California at Berkeley. During 1936-37 he taught at Stanford University and during_1937-38 he was a Social Science Research Fellow at Trinity College, Cambridge, England. Dr. Dunlop had been on the Harvard University faculty since 1938, serving as an instructor (1938-45), associate professor (1945–50), and professor (since 1950) of economics. He served as chairman of the Department of Economics from 1961 to 1966, and since 1970 was dean of the Faculty of Arts and Sciences. For the last 25 years Doctor Dunlop has served on numerous Presidential boards, panels, committees, and commissions, studying labor disputes. During World War II, he worked with the National Bureau of Economic Research, and the National War Labor Board, and he was a consultant to the Office of Economic Stabilization and the Office of War Mobilization and Reconversion. Since that time he has served as a member or consultant to a number of other State and Federal organizations on matters relating to labor relations and economics. Dr. Dunlop is the author of three books, coauthor of four books and editor of six others. His books include "Collective Bargaining: Principles and Cases" (1953), "The Theory of Wage Determination" (1957), and "Labor and the American Community" (1970), the most recent of which he coauthored with Derek C. Bok. Dr. Dunlop has also contributed to a number of other books and to professional journals. He is a member of the American Academy of Arts and Sciences and the American Philosophical Society. During 1952-53 he was a John Simon Guggenheim Fellow. He is married to the former Dorothy Webb. They have three children and reside in Belmont, Mass. BIOGRAPHICAL SKETCH OF JAMES W. MCLANE James W. McLane is the Deputy Director of the Cost of Living Council. His reappointment was announced by the White House on March 2, 1973. As Deputy Director, Mr. McLane assists the Director, Dr. John T. Dunlop, with the overall direction of the economic stabilization program. Mr. McLane was first appointed Deputy Director of the Council by Donald Rumsfeld during phase II. The Cost of Living Council, a cabinet-level agency, is responsible for establishing broad goals for the Nation's economic stabilization program and for recommending to the President policy and procedures to restrain inflationary increases in prices, wages and salaries without impeding economic growth. Under phase III, the Council has authority for the direct administration of the economic stabilization program. Preceding his appointment to the Cost of Living Council, Mr. McLane served as Staff Assistant to the President and as a member of the Domestic Affairs Council staff. In this capacity, he coordinated administration efforts for general revenue sharing and directed the Domestic Council Committee on Aging. Prior to the White House assignment, he served as Assistant to the Under Secretary of Health, Education, and Welfare and then as Executive Assistant to the Secretary of HEW. He directed task forces for the Cabinet Committee on Education and on the Health Maintenance Organization program while at HEW. He spent the fall of 1970 directing the successful reelection campaign of Governor Sargent in Massachusetts. McLane, 34, was born January 27, 1939, in New Canaan, Conn. He received his bachelor of arts degree from Yale University in 1961 and his masters in business administration from the Harvard Business School in 1967. After receiving his M.B.A. from Harvard, he was consultant with Booz, Allen, & Hamilton in New York City. He also served 4 years as an officer in the U.S. Navy. Mr. McLane and his wife, Fay, have two sons: Sandy, age 7, and Benjamin, age 5. BIOGRAPHICAL SKETCH OF EDWARD F. PRESTON Edward F. Preston, a career Federal employee, was appointed Assistant Commissioner of Internal Revenue for Stabilization in October 1971. In this position, Mr. Preston is responsible for the service and compliance functions of the President's economic stabilization program. His duties under the program include: Supplying public information and answering public inquiries; receiving and investigating complaints; monitoring compliance; and receiving, reviewing, and making decisions on the requests for exemption or exception to economic stabilization provisions. A native of Boston, Mr. Preston, 53, attended Northeastern University there and Syracuse University in New York, graduating in 1946 with a B.A. in political science. In 1948 he earned a M.A. in public administration from the Maxwell School of Citizenship and Public Affairs at Syracuse University. After completing graduate studies, he entered the Federal service as a junior professional assistant on the management staff of the Department of the Treasury. Two years later, he transferred to the Internal Revenue Service as a management analyst. After a series of progressively more responsible administrative positions, including senior staff man to the Assistant Commissioner for Operations and assistant to the Deputy Commissioner of Internal Revenue, he was promoted in 1960 to the position of Assistant Commissioner for Administration. In 1964, Mr. Preston was awarded a Presidential citation for his work in connection with a major realinement of the IRS field organization. In June 1971, he received an exceptional service award from the Secretary of the Treasury for providing dynamic leadership for the entire service in major areas such as executive selection and development, career programs, and improved service to taxpayers. Prior to his present assignment, he actively participated in the 90-day wageprice freeze and was one of the key IRS officials commended by the Secretary of the Treasury, and the Executive Director of the Cost of Living Council, for an outstanding performance. He is active in the American Society for Public Administration and served as a vice president of the National Capitol Area Chapter for several years. Mr. and Mrs. Preston live in Mt. Vernon, Va., and have two children. STATEMENT OF DR. JOHN T. DUNLOP Mr. DUNLOP. Mr. Chairman and members of the committee, I appreciate the opportunity to appear before you today to discuss our funding request to finance the activities of phase III of the economic stabilization program for fiscal year 1974. Accompanying me today are my deputy, James W. McLane and Edward F. Preston, Assistant Commissioner for Stabilization, Internal Revenue Service. At the conclusion of my statement Mr. Preston has a short prepared statement to offer and then we will attempt to answer any questions the committee may have. As you know, Mr. Chairman, funds for all activities of the economic stabilization program are being justified in one amount for fiscal year 1974 including the Cost of Living Council, Internal Revenue Service, Department of Justice, temporary emergency court of appeals, and the administrative support function provided by the Department of Treasury. The extension of our authority, as provided by Public Law 93-28 is through April 30, 1974, and our budget request now before you, $62,654,000, covers the functions of the economic stabilization program through that date except for the court functions and the Department of Justice effort which are funded on a full-year basis as their work should be ongoing for a longer period. At this point Mr. Chairman, with your permission, I would like to insert in the record three charts, which are a part of my statement. Chart No. 1 shows the present organizational structure of the economic stabilization program; chart No. 2 is a fiscal year summary of the program showing dollars, program phases and manpower covering fiscal years 1972 through 1974; and chart No. 3 is a "pie chart" showing how the total fiscal year 1974 resources of the program are to be allocated. I hope you will find these exhibits useful in adjudicating our budget request. [The charts follow:] |