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tuations for seasonal patterns. One of than $1 million and experienced during the requirements is that a person may the base period a net loss or a profit change his prices to reflect seasoned margin of less than 3 percent. fluctuations only if the distinct flucta- Pending the development of a compretion is an established practice that has hensive regulatory approach to this taken place in each of the 3 years before problem, which has many facets and the date of the contemplated change. differs in various segments of the econThe potash industry has employed sea- omy, the Commission hereby grants a sonal pricing during 13 of the past 14 temporary exception to each person subyears, the only significant variation hav- ject to the Commission's regulations who ing occurred in the spring of 1969 when has had during that person's most recent an extraordinary heavy influx of Cana- fiscal year ended prior to August 15, dian potash resulted in depressing nor- 1971, gross sales revenues of less than mal seasonal increases. Several pro- $1 million and has experienced during ducers have requested an exception that the base period a net loss or a profit would permit producers to make the margin of less than 3 percent. Such a price adjustments contemplated by person may use a base period profit § 300.81, after excluding the 1969 price margin of 3 percent in computing perlevels, and to establish a price ceiling missible levels of price increases under during the seasonal fluctuation period at the Commission's regulations. a level no higher than that prevailing in The Price Commission reserves the February 1971.
right to change, revise, or revoke the In consideration of the long history of
authority granted herein at any time. fluctuations in this area, with only one
[36 F.R. 25067, Dec. 28, 1971] significant variation, and then only because of the extraordinary circum
[Notice 5] stances, the Commission hereby grants PERSONS SUFFERING A PROFIT LOSS an exception from the requirements of
DURING THE BASE PERIOD § 300.18 (so far as it requires that distinct fluctuations must have taken place
Criteria for Price Increases in each of the 3 years before the date
Current regulations of the Price Comof the contemplated change) for the ap
mission provide, in general, that a perplicant producers as to base price, so that the price levels which prevailed dur
son may not increase a price, even if
otherwise justified, if that increase would ing the spring of 1969 are excluded from
result in an increase in that person's consideration in arriving at the base for
profit margin over that which prevailed establishing the controlling price levels for 1972 with respect to muriate of
during the base period. It is the Compotash; with all other requirements of
mission's intent to prescribe, in the near the Price Commission regulations, in
future, detailed regulations relating to cluding
firms operating at a loss or very low the other requirements of § 300.81, to remain otherwise in full ef
profit margin. However, the Commission
considers that immediate relief should fect as regards all producers. The pro
be allowed any person that suffered a ducers are not authorized to increase
loss during the base period. these respective profit margins prevail
Therefore, the Commission will not, ing during the base period.
pending the publication of detailed reguThe Price Commission reserves the
lations on the subject, construe its reguright to change, revise, or revoke the au- lations to thority granted herein at any time.
(1) Prevent any person that had a (36 F.R. 25067, Dec. 28, 1971]
negative profit margin during the base [Notice 4]
period (under all possible combinations
of the years it uses to compute its base SMALL BUSI IESS FIRMS WITH NET
period under Part 300 of the CommisLOSS OR LOW PROFIT MARGIN sion's regulations) from increasing its Grant of Exception
prices to a level reasonably calculated to
provide that person a breakeven profit The Price Commission has been re
margin. quested to authorize relief from certain (2) Prevent any person that has had a requirements of its regulations for small negative profit margin during its most business firms, which, during their most recent fiscal quarter, and reasonably exrecent fiscal year, had gross sales of less pects that its next three fiscal quarters will also show a negative profit margin specifically reserved by the Price Comunless its prices are increased from in- mission under $ 300.16(a) of the regulacreasing its prices to a level reasonably tions applicable to public utility price calculated to provide that person a increases reported to the Price Commisbreakeven profit margin.
sion prior to January 17, 1972. Each prenotification firm shall sepa
[37 F.R. 2859, Feb. 8, 1972] rately report each increase pursuant to
[Notice 8] this notice to the Price Commission under 300.51(d) of the Commission's reg
BROKERAGE FEES ulations, in a manner prescribed by the Fees Certified by Securities and Commission.
Exchange Commission (87 F.R. 828, Jan. 19, 1972]
Cost of Living Council regulations 6 [Notice 6]
CFR 101.34(1) exempts fees charged for PUBLIC UTILITIES
the trading of securities on a securities
exchange subject to the jurisdiction of Final Action on Rate Increases Reported the Securities and Exchange CommisPrior to January 17, 1972
sion, if the Securities and Exchange Current Price Commission regulations,
Commission has certified that the fees $ 300.16, provide, in general, that the
are consistent with the objectives of the Price Commission has 10 days in which
Economic Stabilization Program. The to take action on price increases reported
Securities and Exchange Commission to it by public utilities. These revised
has made such a certification, and the provisions, which reflect the need of
Price Commission has determined that
the certification is sufficient. public utilities for an expeditious review of price increases, and which became ef
The Price Commission is informed that
it is not feasible for firms which trade fective on January 17, 1972, did not address themselves specifically to the treat
securities to charge fees when securities
are traded over-the-counter that differ ment of requests for, and notifications of, price increases received by the Price
from those charged when securities are Commission before that date.
traded on a securities exchange. The
new fee schedule which the Securities Under the regulation as in effect before January 17, 1972, the Price Commission
and Exchange Commission has certified had specifically reserved its right to re
is designed to produce less revenues than view and limit the amount of any re
did the fee schedule it will replace. Tak
ing this into account, and having exquested increase, ordered increase, or other authorized increase. The period of
amined the new fee schedule proposed
and the certification accompanying it, time during which the Price Commission could exercise its right to review and its
the Price Commission determines that
fees charged for over-the-counter tradauthority to limit price increases was not
ing which do not exceed the fees which specified. To clarify the status of public utilities which reported price increases
would be charged on the same kind of before January 17, 1972, under regula
transaction on a securities exchange are
in compliance with the Economic Stabitory provisions which contained no time
lization Program. limitation for Price Commission action, the Price Commission has decided to set
[37 F.R.3863, Feb. 23, 1972] a cut-off date after which, if no action
[Notice 16] has been taken by the Price Commission, certain of those increases shall become
QUARTERLY REPORTS BY INSURERS final, so far as Price Commission action Postponement of Time of Filing is concerned.
Section 300.20(h) of the regulations of In order to provide fair notice to all
the Price Commission requires each inpersons who might wish to protest or
surer that had annual revenues of $50 challenge a price increase that their
million or more during the calendar year right to do so may be foreclosed, the
preceding any rate increase proposed by Price Commission hereby announces it to file a quarterly report with the Price that, with respect to public utility price Commission at the time the insurer norincreases which were reported to the mally releases its quarterly reports, but Price Commission before January 17, not later than 45 days after the end of the 1972, the Price Commission will not, quarter, of each rate increase by it durafter February 24, 1972, take any action ing that quarter that affects $250,000 or
more in aggregate annualized premiums and costly and would interfere with its under the existing rate. The report is re- proper functioning, therefore the Comquired to be made on a form prescribed mittee is authorized to keep minutes in by the Price Commission.
lieu of making a verbatim transcript. At The required form is in the process of a minimum the minutes shall contain a development but may not be ready for list of all persons present, the time and use by the time the reports are due. place of meeting, a description of matTherefore the Price Commission is tem- ters discussed and conclusions reached, porarily postponing the due date for such copies of all reports received, issued, or reports until the forms have been dis- approved by the Committee, and a rectributed. Notice will be published when ord of recommendations made. In addithey are available so that the required tion to minutes of meetings, a record reports may be made. The Commission should be made of any business transemphasizes that this action is a post- acted by mail, phone, or wire. Records of ponement of the due date and not a can- the Committee are public records, availcellation of the requirement.
able to inspection by the public. The ac(37 F.R. 6718, Apr. 1, 1972]
curacy of all minutes shall be certified
by the Chairman of the Committee. [Notice 19)
(7) The Committee is authorized to ESTABLISHMENT OF RETAIL
consult with and discuss with Price ADVISORY COMMITTEE
Commission analysts, economists, and
attorneys the Commission's regulations In accordance with the authority
and rules as they affect the retail indusvested in me by the Economic Stabiliza
try; to comment on and advise on protion Act of 1970, as amended and by
posed changes submitted to the ComExecutive Order 11640, as amended by
mittee; to make recommendations to the Executive Order 11660, and pursuant to
Commission for changes, modifications, Executive Order 11007, I find that it is in or revision; to serve as consolidators for the public interest in connection with
industry opinion and reaction to Comcarrying out my duties under the
mission actions, and to perform such Economic Stabilization Act that a Re
other advisory duties as the Commistail Advisory Committee be established
sion may request. and there is hereby established a Retail (8) The members of the Retail AdAdvisory Committee, with the following visory Committee will not receive reduties, obligations, and powers:
muneration for their services, except (1) There will be one officer or em- that the Commission upon request of a ployee of the Government as Committee
member will pay transportation to and Chairman,
from Washington, D.C., to attend meet(2) The members of the Committee ings of the Committee and appropriate will be named in letters from the Com
per diem as authorized by law. mission.
(9) The Retail Advisory Committee (3) This Committee is authorized to
shall begin functioning immediately begin functioning upon being named and upon the naming of the members thereto continue to serve until April 30, 1973, of. or until they resign or are removed from (10) Meetings generally will be held at membership, if sooner.
the office of the Price Commission, 2000 (4) No meeting shall be held except M Street NW., Washington, DC 20508. at the call of, or with the advance ap
[37 F.R. 11513, June 8, 1972] proval of the Chairman of the Committee with an agenda formulated or
[Notice 22] approved by him.
PROCESSORS OF FLAXSEED (5) All meetings of the Committee shall be under the chairmanship or con
Notice of Exemption of Base Price ducted in the presence of the Chairman
Level Requirement of the Committee, who shall have the The Price Commission has determined authority and is required to adjourn any that, while the current prices of linseed meeting whenever he considers adjourn- meal are not below base price levels, ment to be in the public interest.
the combined prices for the two products (6) Due to the nature of the business of flaxseed (linseed oil and linseed meal) to be transacted by this Committee, the are below their combined base price level. making of a verbatim transcript of its Thus the total product value derived meetings would be unduly burdensome from processing flaxseed is at its lowest
level in the past 10 years. For this reason, flaxseed processors are experiencing serious hardship since they cannot increase (under current Price Commission regulations) the prices of linseed meal.
Therefore, under the authority of $ 300.60 of the regulations of the Price Commission (6 CFR § 300.60), the Price Commission hereby authorizes processors of flaxseed, with respect to the pricing of linseed oil and flaxseed meal, to sell the joint products at prevailing market prices, without regard to base price or other price limitations, except that the resulting total price for the joint products (based on yield per bushel) may not exceed the combined base price of those products, except on the basis of increased allowable costs. [37 F.R. 12650, June 27, 1972]
Certificates of Compliance Section 300.16a(d) of the regulations of the Price Commission provides for the issuance by the Price Commission of certificates of compliance to State and Federal regulatory agencies whose rules for implementing the Economic Stabilization Program, with respect to public utilities, have been approved by the Price Commission.
It is the Commission's intention to publish in the FEDERAL REGISTER, on a biweekly basis, a list of the regulatory agencies that have been so certified.
As of June 23, certificates of compliance have been issued to the following agencies.
(1) State of New York Public Service Commission.
(2) The Public Utilities Commission of Colorado.
(3) Michigan Public Service Commission. [37 FR. 13136, July 1, 1972]
[Notice 25] ADVERTISING RATES OF RADIO AND
TELEVISION STATIONS The Price Commission has determined that, as a general practice in the broadcasting industry, the money spent by advertisers is distributed among competing stations. In effect, advertising dollars move away from programs losing audience to programs gaining audience. This
movement results in decreases and increases in the per-minute cost to the advertiser within the respective pro grams. These movements can take place without raising the average price of a commercial position on all programs combined—the price decrease on the loser offsets the price increase on the gainer. This adjustment process tends to be automatic. Advertisers' demands for a commercial position on the losing programs tend to be relatively less intense than their demand for commercial positions the gaining program, thereby tending to drive down prices on losing programs and pushing up prices on programs of wider audience appeal. A price scheme that prohibits some flexibility of this nature may, in effect, lower the average price for broadcast advertising by preventing one part of the adjustment process. In general practice, most firms have used the cost per thousand (CPM) concept in audience size to determine their advertising fees. The advertising base period rate or CPM is expressed in terms of X dollars per 1,000 listeners or viewers. The base period rate times the present audience size becomes the fee for the time unit or program involved.
In consideration of the foregoing, it is the opinion of the Commission that advertising charges determined on the above-described basis will not be considered to be in violation of the Commission's regulations, if audience size is consistently and appropriately applied from an independent audience survey and, if audience size is used for the purpose of increasing advertising fees, it is also used in lowering fees or charges where warranted. Prices charged in conformance with this paragraph will not be considered to be price increases for the purposes of $$ 300.5, 300.14, 300.51, or 300.52 of the Commission's regulations.
In addition, the base period rate per 1,000 in audience size may be increased only to reflect increases in allowable costs and only to the extent that the increase does not result in an increase in the firm's profit margin, as provided in the Commission's regulations.
This notice does not apply to any person engaged in broadcasting which has not, as a customary practice, up to the date of this notice, been using the CPM method to determine advertising fees. (37 F.R. 13659, July 12, 1972]
[Notice 34] CERTIFICATES OF COMPLIANCE FOR
STATE AND FEDERAL REGULA-
LIST OF RECIPIENTS
Section 300.16a(d) of the regulations of the Price Commission provides for the issuance by the Price Commission of certificates of compliance to State and Federal regulatory agencies whose rules for implementing the economic stabilization program, with respect to public utilities, have been approved by the Price Commission. In accordance with the Commission's policy, this notice is issued on a biweekly basis, to inform all interested persons of those regulatory agencies that have been certified by the Commission.
As of August 30, 1972, certificates of compliance. have been issued to the following agencies:
sion, Georgia Public Service Commission. Indiana Public Service Commission. Michigan Public Service Commission. Mississippi Public Service Commission. Montana Public Service Commission. New York Public Service Commission. North Carolina Utilities Commission. Virginia State Corporation Commission. Washington Utilities and Transportation
Commission. [37 F.R. 17991, Sept. 2, 1972]