tuations for seasonal patterns. One of the requirements is that a person may change his prices to reflect seasoned fluctuations only if the distinct fluctation is an established practice that has taken place in each of the 3 years before the date of the contemplated change. The potash industry has employed seasonal pricing during 13 of the past 14 years, the only significant variation having occurred in the spring of 1969 when an extraordinary heavy influx of Canadian potash resulted in depressing normal seasonal increases. Several producers have requested an exception that would permit producers to make the price adjustments contemplated by § 300.81, after excluding the 1969 price levels, and to establish a price ceiling during the seasonal fluctuation period at a level no higher than that prevailing in February 1971. In consideration of the long history of fluctuations in this area, with only one significant variation, and then only because of the extraordinary circumstances, the Commission hereby grants an exception from the requirements of § 300.18 (so far as it requires that distinct fluctuations must have taken place in each of the 3 years before the date of the contemplated change) for the applicant producers as to base price, so that the price levels which prevailed during the spring of 1969 are excluded from consideration in arriving at the base for establishing the controlling price levels for 1972 with respect to muriate of potash; with all other requirements of the Price Commission regulations, including the other requirements of § 300.81, to remain otherwise in full effect as regards all producers. The producers are not authorized to increase these respective profit margins prevailing during the base period. The Price Commission reserves the right to change, revise, or revoke the authority granted herein at any time. [36 F.R. 25067, Dec. 28, 1971] [Notice 4] SMALL BUSINESS FIRMS WITH NET LOSS OR LOW PROFIT MARGIN Grant of Exception The Price Commission has been requested to authorize relief from certain requirements of its regulations for small business firms, which, during their most recent fiscal year, had gross sales of less than $1 million and experienced during the base period a net loss or a profit margin of less than 3 percent. Pending the development of a comprehensive regulatory approach to this problem, which has many facets and differs in various segments of the economy, the Commission hereby grants a temporary exception to each person subject to the Commission's regulations who has had during that person's most recent fiscal year ended prior to August 15, 1971, gross sales revenues of less than $1 million and has experienced during the base period a net loss or a profit margin of less than 3 percent. Such a person may use a base period profit margin of 3 percent in computing permissible levels of price increases under the Commission's regulations. The Price Commission reserves the right to change, revise, or revoke the authority granted herein at any time. [36 F.R. 25067, Dec. 28, 1971] [Notice 5] PERSONS SUFFERING A PROFIT LOSS DURING THE BASE PERIOD Criteria for Price Increases Current regulations of the Price Commission provide, in general, that a person may not increase a price, even if otherwise justified, if that increase would result in an increase in that person's profit margin over that which prevailed during the base period. It is the Commission's intent to prescribe, in the near future, detailed regulations relating to firms operating at a loss or very low profit margin. However, the Commission considers that immediate relief should be allowed any person that suffered a loss during the base period. Therefore, the Commission will not, pending the publication of detailed regulations on the subject, construe its regulations to (1) Prevent any person that had a negative profit margin during the base period (under all possible combinations of the years it uses to compute its base period under Part 300 of the Commission's regulations) from increasing its prices to a level reasonably calculated to provide that person a breakeven profit margin. (2) Prevent any person that has had a negative profit margin during its most recent fiscal quarter, and reasonably expects that its next three fiscal quarters will also show a negative profit margin unless its prices are increased from increasing its prices to a level reasonably calculated to provide that person a breakeven profit margin. Each prenotification firm shall separately report each increase pursuant to this notice to the Price Commission under § 300.51(d) of the Commission's regulations, in a manner prescribed by the Commission. [87 F.R. 828, Jan. 19, 1972] [Notice 6] PUBLIC UTILITIES Final Action on Rate Increases Reported Prior to January 17, 1972 Current Price Commission regulations, § 300.16, provide, in general, that the Price Commission has 10 days in which to take action on price increases reported to it by public utilities. These revised provisions, which reflect the need of public utilities for an expeditious review of price increases, and which became effective on January 17, 1972, did not address themselves specifically to the treatment of requests for, and notifications of, price increases received by the Price Commission before that date. Under the regulation as in effect before January 17, 1972, the Price Commission had specifically reserved its right to review and limit the amount of any requested increase, ordered increase, or other authorized increase. The period of time during which the Price Commission could exercise its right to review and its authority to limit price increases was not specified. To clarify the status of public utilities which reported price increases before January 17, 1972, under regulatory provisions which contained no time limitation for Price Commission action, the Price Commission has decided to set a cut-off date after which, if no action has been taken by the Price Commission, certain of those increases shall become final, so far as Price Commission action is concerned. In order to provide fair notice to all persons who might wish to protest or challenge a price increase that their right to do so may be foreclosed, the Price Commission hereby announces that, with respect to public utility price increases which were reported to the Price Commission before January 17, 1972, the Price Commission will not, after February 24, 1972, take any action specifically reserved by the Price Commission under § 300.16(a) of the regulations applicable to public utility price increases reported to the Price Commission prior to January 17, 1972. [37 F.R. 2859, Feb. 8, 1972] [Notice 8] BROKERAGE FEES Fees Certified by Securities and Cost of Living Council regulations 6 CFR 101.34(1) exempts fees charged for the trading of securities on a securities exchange subject to the jurisdiction of the Securities and Exchange Commission, if the Securities and Exchange Commission has certified that the fees are consistent with the objectives of the Economic Stabilization Program. The Securities and Exchange Commission has made such a certification, and the Price Commission has determined that the certification is sufficient. The Price Commission is informed that it is not feasible for firms which trade securities to charge fees when securities are traded over-the-counter that differ from those charged when securities are traded on a securities exchange. The new fee schedule which the Securities and Exchange Commission has certified is designed to produce less revenues than did the fee schedule it will replace. Taking this into account, and having examined the new fee schedule proposed and the certification accompanying it, the Price Commission determines that fees charged for over-the-counter trading which do not exceed the fees which would be charged on the same kind of transaction on a securities exchange are in compliance with the Economic Stabilization Program. [37 F.R.3863, Feb. 23, 1972] [Notice 16] QUARTERLY REPORTS BY INSURERS Postponement of Time of Filing Section 300.20(h) of the regulations of the Price Commission requires each insurer that had annual revenues of $50 million or more during the calendar year preceding any rate increase proposed by it to file a quarterly report with the Price Commission at the time the insurer normally releases its quarterly reports, but not later than 45 days after the end of the quarter, of each rate increase by it during that quarter that affects $250,000 or more in aggregate annualized premiums under the existing rate. The report is required to be made on a form prescribed by the Price Commission. The required form is in the process of development but may not be ready for use by the time the reports are due. Therefore the Price Commission is temporarily postponing the due date for such reports until the forms have been distributed. Notice will be published when they are available so that the required reports may be made. The Commission emphasizes that this action is a postponement of the due date and not a cancellation of the requirement. [37 F.R. 6718, Apr. 1, 1972] [Notice 19] ESTABLISHMENT OF RETAIL ADVISORY COMMITTEE In accordance with the authority vested in me by the Economic Stabilization Act of 1970, as amended and by Executive Order 11640, as amended by Executive Order 11660, and pursuant to Executive Order 11007, I find that it is in the public interest in connection with carrying out my duties under the Economic Stabilization Act that a Retail Advisory Committee be established and there is hereby established a Retail Advisory Committee, with the following duties, obligations, and powers: (1) There will be one officer or employee of the Government as Committee Chairman. (2) The members of the Committee will be named in letters from the Commission. (3) This Committee is authorized to begin functioning upon being named and to continue to serve until April 30, 1973, or until they resign or are removed from membership, if sooner. (4) No meeting shall be held except at the call of, or with the advance approval of the Chairman of the Committee with an agenda formulated or approved by him. (5) All meetings of the Committee shall be under the chairmanship or conducted in the presence of the Chairman of the Committee, who shall have the authority and is required to adjourn any meeting whenever he considers adjournment to be in the public interest. (6) Due to the nature of the business to be transacted by this Committee, the making of a verbatim transcript of its meetings would be unduly burdensome and costly and would interfere with its proper functioning, therefore the Committee is authorized to keep minutes in lieu of making a verbatim transcript. At a minimum the minutes shall contain a list of all persons present, the time and place of meeting, a description of matters discussed and conclusions reached, copies of all reports received, issued, or approved by the Committee, and a record of recommendations made. In addition to minutes of meetings, a record should be made of any business transacted by mail, phone, or wire. Records of the Committee are public records, available to inspection by the public. The accuracy of all minutes shall be certified by the Chairman of the Committee. (7) The Committee is authorized to consult with and discuss with Price Commission analysts, economists, and attorneys the Commission's regulations and rules as they affect the retail industry; to comment on and advise on proposed changes submitted to the Committee; to make recommendations to the Commission for changes, modifications, or revision; to serve as consolidators for industry opinion and reaction to Commission actions, and to perform such other advisory duties as the Commission may request. (8) The members of the Retail Advisory Committee will not receive remuneration for their services, except that the Commission upon request of a member will pay transportation to and from Washington, D.C., to attend meetings of the Committee and appropriate per diem as authorized by law. (9) The Retail Advisory Committee shall begin functioning immediately upon the naming of the members thereof. (10) Meetings generally will be held at the office of the Price Commission, 2000 M Street NW., Washington, DC 20508. [37 F.R. 11513, June 8, 1972] [Notice 22] PROCESSORS OF FLAXSEED The Price Commission has determined that, while the current prices of linseed meal are not below base price levels, the combined prices for the two products of flaxseed (linseed oil and linseed meal) are below their combined base price level. Thus the total product value derived 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] [Notice 24] STATE OF NEW YORK PUBLIC 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 F.R. 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 programs. 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 on 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] |