Additional information-Continued Conflict of Interest, 18 U.S.C.A. 207_ Dingell, Hon. John D., letter to Hon. George M. Stafford, Chairman, Goodman, Leonard S., Associate General Counsel, Interstate Com- Letter to Hon. W. Donald Brewer, not dated_ Page 231 18 238 277 168 Letter to Leon Ulman, Esq., Department of Justice, February 20, 165 Letter to Leon Ulman, Esq., Department of Justice, February 27, 166 Memorandum of agreement between Gordon Allott and, February 166 27, Hampton, Robert E., Chairman, Civil Service Commission, letter to Interstate Commerce Commission, Budgetary information on.... Response by, March 15, 1973, to Questions dated March 8, 1973- MacFarland, Alfred T., Commissioner, Interstate Commerce Com- Murphy, Rupert L., Commissioner, Interstate Commerce Commis- Railroad freight rate structure, investigation of, Interstate Commerce Small Business, extract from rules of the Permanent Select Committee Letter to George P. Schultz, April 11, 1972- Statement of, before the Subcommittee on Transportation Ap- Additional information-Continued Tuggle, Kenneth H., Commissioner, Interstate Commerce Commis- Ulman, Leon, Deputy Assistant Attorney General, Office of Legal Wiggin, Chester M., Jr., Commissioner, Interstate Commerce Com- Page 238 168 235 SMALL BUSINESS IMPACT OF ACTIONS AND POLICIES BY THE FEDERAL REGULATORY AGENCIES (Vol. 1-Interstate Commerce Commission) WEDNESDAY, APRIL 4, 1973 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON ACTIVITIES OF REGULATORY AGENCIES The subcommittee met, pursuant to notice, at 10 a.m., in room 311, Cannon House Office Building, Hon. John D. Dingell (chairman of the subcommittee), presiding. Present: Representatives Dingell, Hungate, and Conte. Also present: Thomas G. Powers, subcommittee counsel; James R. Phalen, minority counsel; and Myrtle Ruth Foutch, clerk. Mr. DINGELL. The subcommittee will please come to order. The Chair notes the presence of a quorum for the purpose of transacting business. The Chair has a lengthy prepared statement from which, in the interest of time and because of the presence of our distinguished guests from the ICC, the Chair will excerpt. Today's hearings are the beginning of a series of hearings by this subcommittee relevant to the impact on small business of the actions and policies of the several independent Federal regulatory agencies. Of paramount consideration is the determination of whether these Government agencies adequately serve and give due consideration to the problems of small business. These regulatory agencies, of which the Interstate Commerce Commission is the oldest, are creatures of the Congress. Their activities have great impact on small business and are, in that area, of specific concern to this committee and to this subcommittee. It should also be noted that this hearing is a continuation of hearings by this subcommittee in earlier Congresses which have brought before us the Federal Communications Commission, the Federal Power Commission, the Federal Trade Commission, and other Federal regulatory bodies, on their activities and the inquiries made by this subcommittee into the activities of the regulatory agencies as they affect small business. In the near future, the Chair expects to announce hearings on other Federal regulatory agencies and their actions as they affect small business. This subcommittee has great interest in the ability of the different regulatory agencies to function within their budgetary limitations (1) and also in the capabilities of regulatory agencies to carry out their congressional mandates insofar as these matters affect the interests of small business. This subcommittee has been much concerned over the years with the capability of these individual regulatory agencies to afford expeditious consideration of matters before them and the adequacy of their small, devoted, and often overworked staffs to bring matters to expeditious conclusions in the public interest. Today, the subcommittee is honored to have before us representatives of the Interstate Commerce Commission. The committee does intend to look into the capabilities of that agency to carry out its responsibilities and the Chair does at this time express particular concern that the ICC does carry out its responsibilities, particularly with regard to the question of freight rates and related matters which are of the keenest import to small business. In a careful review of a number of matters relative to the activities of the ICC, the Chair is particularly concerned about the backlog of cases now pending before the ICC, the lengthy amount of time involved in the conclusion of cases, the bankruptcy and failure of many railroads subject to the jurisdiction of the ICC, and the great difficulties faced by small businessmen in receiving expeditious consideration of their problems before the Commission. These circumstances have caused hardship to hundreds of thousands of small businessmen who are regulated by, or who are dependent upon, services regulated by the ICC. The budget of the Interstate Commerce Commission has a very direct effect upon the capability of the ICC to carry out its functions. The allocation of resources within that very narrow budget has a very direct impact upon the activities of the public at large and upon small businesses which are the specific concern of this subcommittee. As a part of the scrutiny of this subcommittee on the impact of the activities of the ICC on small business both within its regulations and within the concern of the public at large, the subcommittee wishes to obtain the particulars about the budget capabilities of the ICC. The Chair is much concerned about the inability of ICC to study rates as an in-house undertaking as a continuing process and also about the Commission's contracting to procure such studies and information through outside consultants and firms, especially those which are small business entities. It has long been the concern of the Chair that the ICC budget has been too small to permit the Commission to properly carry out its assignments and functions. It has been the belief of the present occupant of the Chair that the ICC has not been as active as it could have been in serving the interests of the public at large and of small businessmen subject to its regulations. The Chair reminds all that the carriers regulated by that agency have immense impact on the small businessmen which are their customers. As the Chair has noted earlier, today's inquiry is the first part of an anticipated series of studies on, and investigations of, activities of the Federal regulatory agencies which affect small business. In order that persons interested in these inquiries need not resort to several documents to ascertain the background for these hearings, the Chair inserts in the record at this point the resolution of the House of |