EXECUTIVE OFFICE OF THE PRESIDENT COUNCIL ON WAGE AND PRICE STABILITY 726 JACKSON PLACE, N.W. WASHINGTON, D.C. 20506 August 1, 1977 Honorable William Proxmire, Chairman and Urban Affairs United States Senate Washington, D. C. 20510 Dear Senator Proxmire: During the recent hearings on S. 1542, you asked that we submit answers to you to some questions which you asked. One question which you asked regarded the number of subpoenas and periodic report orders which the Council has issued. We have never issued a subpoena but have issued one periodic report order. That order was issued to the Aluminum Company of America on July 15, 1977. Alcoa was perfectly willing to provide us with the data which we wanted but insisted, on advice of their counsel, on receiving a formal order. Although this is the first time where we have actually issued an order, we have generally found companies to be quite cooperative about providing data to us but concerned about its confidentiality. Many companies have asked in the past that a subpoena or periodic report order be issued to them; however, after negotiations we were able to persuade them to comply voluntarily. You had asked for a list of instances in which we were able to have a positive effect on inflation. We have enclosed such a list. You further asked for a breakdown of Council filings before government agencies by agency. That list is also enclosed. If there is any further material which we can supply, we would be pleased to do so. Sincerely, Barry Bosun' Barry P. Bosworth Enclosures EXECUTIVE OFFICE OF THE PRESIDENT COUNCIL ON WAGE AND PRICE STABILITY 726 JACKSON PLACE, N.W. WASHINGTON, D.C. 20506 July 20, 1977 The following is a breakdown by agency of the filings produced by the Council on Wage and Price Stability from the years 1974 through 1977 (July). National Highway Traffic Safety Administration Department of Health, Education & Welfare (HEW) Barbara & Lacazerit := Barbara J. Saragovitz Public Information Assistant Office of Public Affairs General: The prime objective of the Office of Wage and Price Monitoring has been identifying and analyzing inflationary influences in the private sector, resulting from long-term, structural factors that affect price and wage movements as well as specific price increases. This Office has published studies analyzing: 1) specific price increases, 2) industry pricing policies, 3) potential commodity shortages, 4) structural features and changes in the general economic environment (i.e. industrial concentration), 5) specific wage settlements, and 6) ways to improve price and wage data sources. Specific Price Increases: Where this Office has found a specific wage or price increase to be inflationary, it has requested a delay or reduction in the increase. Two examples of such action occurred with the steel and auto industry. In December 1974, this Office investigated the price increases for steel which were announced by several companies and persuaded three companies to roll back their increases by approximately 20 percent. In December 1975, Ford announced a new price increase for its 1976 model cars. In order to evaluate Ford's price increase, this Office staff requested the four domestic automobile producers to submit information on any changes that had occurred in their estimated 1976 model year costs since their earlier submissions. This information showed that Ford's latest price increase was still not enough to offset the full 1975-76 increases in costs, but it was considerably greater than the average industry increase in projected costs that had been reported to the Council. This Office released a report, detailing this cost and price information. On January 15, 1976, Ford Industry Pricing Policies: Examined the capacity, profit, price, demand, and supply conditions of the following industries: steel, antifreeze, automobile manufacturers, metal can, paper, automobile parts Potential Commodity Shortages: Published studies of investment behavior and its implications for product prices in the paper and cement industries. These industries were studied because they were As a supplement to these studies, this Office also published a study on the rising cost of constructing new General Pricing Studies: Completing a new report which extends and refines its earlier study on the behavior of prices during the 1974-75 recession and the effect of industrial concentration on the Price Data Sources: Published a study by Professor Richard Ruggles which examined such issues as Wage Studies: This Office has been monitoring and analyzing collective bargaining agreements in specific Also published a study by Professor Orley Ashenfelter which examined the relative wage differ- Wage Data Sources: This Office has published a report documenting data deficiencies in the area of compensation of state and local employees. Council on Wage and Price Stability Favorable CWPS Impact Motor Carrier Operating Authorities (ICC; June 9, 1977) The Council staff prepared an analysis of the value of operating certificates granted by the Interstate Commerce Commission to trucking firms. The CWPS report concludes that the large sumns paid for operating authorities suggests that freight rates are excessive. This report, along with other information made available to the ICC encouraged the establishment of an ICC Task Force on motor carrier entry. The Task Force report, publised July 6, makes recommendations in line, but less far-reaching, than those suggested by CWPS. Bus Fare Increases (ICC; May 3, 1977) The Council protested a 13 percent increase in bus fares requested Grain Elevators Emissions (EPA; April 4, 1977) The Council filed comments before the Environmental Protection Agency Air Emissions Trade-off Policy (EPA; March 7, 1977) The Council commented on the Environmental Protection Agency's |