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APRIL 27, 1973. Hon. John D. DINGELL, Chairman, Subcommittee on Activities of Regulatory Agencies, House of Representa

tives, Washington, D.C. DEAR CHAIRMAN DINGELL: During the course of hearings before the Subcommittee on Activities of Regulatory Agencies on April 4, 1973, a question was raised as to whether members of the Commission were fully appraised of the negotiations to secure public counsel to assist in the handling of Ex Parte No. 270, and the arrangements arrived at with former Senator Allott.

We have been periodically briefed concerning Ex Parte No. 270, and the various aspects of the case are familiar to me commencing with the assignment of the case to Vice Chairman Brewer for administrative handling. Shortly after that assignment members of the Commission, including myself, were asked to suggest qualified candidates for the position of Special Counsel. A number of possible candidates were suggested by or made known to merubers of the Commission including, among others, Judge Henry Friendly, Senator Lausche, former General Counsel Robert Ginnane, former Congressman William Springer and retired Federal judges. These individuals were all given careful consideration but were either unable to accept the offer or did not meet the requirements of the contract.

Although this matter had been assigned to Commissioner Brewer for administrative handling he, it seemed to me, went into considerable detail from the very beginning to keep the Commission informed of his progress in the assignment. This included his, and the staff's several meetings with Senator Allott. In a Commission meeting on February 26, 1973, each Commissioner was afforded an opportunity to voice an objection to the tentative selection of Senator Allott. No objection was made. I felt then, and I feel now, that the selection of Senator Allott was a prudent move on the part of the Commission.

I will be happy to answer as best I can, any questions you may have on this matter. Sincerely,

WILLARD DEASON,

Commissioner.

INTERSTATE COMMERCE COMMISSION,

Washington, D.C., April 27, 1973. Hon. John D. DINGELL, Chairman, Subcommittee on Activities of Regulatory Agencies, House of Representa

lives, Washington, D.C. DEAR CHAIRMAN DINGELL: In the course of hearings before your Subcommittee on the Activities of Regulatory Agencies, a question was raised as to whether members of the Commission were fully informed of the matters involved in Ex Parte No. 270, including negotiations concerning a special counsel.

Vice Chairman Brewer was delegated the administrative handling of this proceeding by Chairman Stafford. In the beginning of his assignment, Vice Chairman Brewer asked for the submission of names to be considered for special counsel, several individuals were suggested, and, as I am informed, several were approached but declined to be considered for the employment. Commissioner Brewer advised the members of the Commission, in various conferences, of his efforts in this direction.

We were informed of the discussions with former Senator Allott from time to time, of the progress of the discussions and the conditions of his employment. I approved the selection of Senator Allott and of Commissioner Brewer's handling of his assignment in regard to Ex Parte No. 270. He had a most difficult assignment in regard to Ex Parte No. 270. He had a most difficult assignment and he handled it well. If you have any further questions I shall be glad to answer them. Sincerely yours,

KENNETH H. TUGGLE,

Commissioner.

APPENDIX D.-GORDON L. ALLOTT CONTRACT

GORDON L. ALLOTT,
Special Counsel to the Interstate Commerce Commission,

Washington, D.C., May 21, 1973.
Mrs. ELIZABETH K. DALGLEISH,
Chief, Operating Facilities Branch, Section of Administrative Services, Interstale

Commerce Commission, Washington, D.C. DEAR MRS. DALGLEISH: In accordance with the letter from the Vice Chairman dated May 4, 1973, and in accordance with the Letter Contract of February 26, 1973, as extended, and in accordance with the proposed Contract, ICC 72–5, I attach herewith an exhibit entitled “Gordon L. Allott, Special ÍCC Account, Quarterly Estimates”.

The first column relates to actual cash expenditures from the signing of the Letter Contract on February 26, 1973, to May 15, 1973, which is one-half of the first quarter's operation under the Letter Contract. The second column represents the estimated current quarter costs for the quarter ending June 30, 1973, and the third column represents estimated quarterly costs for the second quarter of operations—i.e., July 1 to October 1, 1973.

The first column figures are taken from our books, but because of the delays, the uncertainties in the finalization of the Contract, and the uncertainty of the exact times when our additional personnel will be brought on board, or what costs they will represent to us, both columns two and three are estimates only, but represent the most accurate estimates we can make upon the present information available.

I am uncertain as to the exact meaning of the language in the “Certificate of Current Cost or Pricing Data”, but I am interpreting it in line with the above statement and submit it herewith. Sincerely yours,

GORDON L. ALLOTT.

CERTIFICATE OF CURRENT COST OR PRICING DATA

This is to certify that, to the best of my knowledge and belief, cost or pricing data submitted in writing, or specifically identified in writing as actual submission of the data is impractical, to the contracting officer or representative in support of the proposed ICC Contract 72–5, are accurate, complete and current as of May 15, 1973.

GORDON L. ALLOTT, Special Counsel to the Interstate Commerce Commission. Date of execution: May 21, 1973.

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OFFICE EXPENSES 338 Telephone.. 340 Office supplies.345 Furniture and equipment.. 352 Workmens compensation. Subtotal....

OFFICE SERVICES

200.00

27.03
103.71
72.00

725.00
375.00
600.00

(1)

600 150 300 (1)

402. 74

1,700.00

1,710

360 Reproduction and copy.
362 Postage.
375 Books, library-
376 Periodicals.
385 Recruitment.

13. 86
39.25
54.40
56. 70
628.27

255.00

67.00 200.00

100.00 5,000.00

255 250 150

50 1,000

Subtotal.

792.48

5, 622.00

1,675

Total..

1,887.72

7,367.00

3,385

SALARIES: ENDING MAY 11, 1973 301 Special counsel.

Staff director.
Economist, accountants and other specialists..
Legal staff.
Secretarial and clerical..

15, 357.14
4,633. 84

0
808.77
2,057.66

15,000.00
6, 746.66
3, 187.00
3, 725.00
4,383.00

15,000 10, 125 22,625 14, 875 9,125

Subtotal..

23, 029.41

33,041.66

71, 750

Total..

34,917.13

40, 408.66

75, 135

1 Not available.

MAY 18, 1973. Hon. GORDON L. ALLOTT, ICC Special Counsel, Washington, D.C.

DEAR SENATOR ALLOTT: Enclosed are two copies of the negotiated Definitive Contract for Special Counsel which contains all the changes agreed to in our prior discussions. Although this contract is ready for execution, as Vice Chairman Brewer advised you in his letter of May 4, 1973, it may not be executed until you have submitted to the Commission, in writing, cost data with a breakdown providing estimates, of costs by identified expense items which in your best judgment, will be incurred in the performance of the contract and a Certificate of Current Cost or Pricing Data.

We understand these documents are nearly completed and upon delivery, we will arrange a date for the signing of the contract. Sincerely yours,

ARTHUR J. CERRA, Deputy General Counsel.

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TOTAL ESTLADOD COST : $ 650,000.00
CONTRACTING OFFICER WILL COMPLETE BLOCK 22 OR 26 AS APPLICABLE
CONTRACTOR'S NEGOTIATED AGREEMENT (Contractor is required to sign 26. AWARD (Contractor is not required 10 sign this document.) Your offer
hii document and return-

3
copies to issuing office.) Contractor agrees
on Solicitation Number

including the 15 tunish and deliver all items or perform all the services set forth or otherwise

additions or changes made by you which additions or chongor are set forth in Full identified above and on any continuation sheets for the consideration stated herein.

above, is hereby occuptod as to the items listed obove and on any continuation sheen. The rights ond obligations of the porties to this contract shall be subject to and gov.

This award consummates the contract which consists of the following documents: el Prud by the following documents (o)this award/contros, (b) the solicitation, if any,

the Government's solicitation and your offer, and (b) this award/contract. No ond (c) such provisions, representations, certifications, and specifications, os are

further contractual document is necessary. chached or incorporated by reference herein. (Allachments are listed berein.)

NAME OF CONTRACTOR

27. UNITED STATES OF AMERICA

BY

(Signature of person outhorized to sign)

(Signature of Contracting Officer 28. NAME OF CONTRACTING OFFICER (Type or print)

• NAME AND TITLE OF SIGNER (Type or print)

25. DATE SIGNED

29. DATE SIGNED

• RANGONU SOIA ARG...

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