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ing debt received by the Bureau on communication common carriers under its jurisdiction is in the form of balance sheet data which provides only summary figures and no particulars on the debt. We were informed by FCC officials that, with regard to debt information, the Bureau is primarily concerned about the financial capabilities of regulated carriers from the viewpoint of successful operations.

5. Enforcement and Effectiveness of Laws, Rules, and Regulations

See Comptroller General's letter on p. 197.

6. Availability and Cost of Duplicating Information The availability and cost of duplicating information of the Common Carrier Bureau is the same as under the Broadcast Bureau (see p. 203).

7. Proposals for New Legislation or Authority

Proposals for new legislation or authority for the Common Carrier Bureau is the same as under the Broadcast Bureau as presented on page 203.

Cable Television Bureau

FCC regulates cable television systems (CATV systems) which redistribute by cable the transmissions of one or more TV broadcast stations to private and commercial subscribers. The authority for FCC to regulate CATV system is contained in Sections 2, 3, 4 (i) and (j), 301, 303, 307, 308, and 309 of the Communications Act of 1934, as amended (47 U.S.C. 152, 153, 154 (i) and (j), 301, 303, 307, 308, and 309). Pursuant to this authority, FCC regulations (47 CFR 76.11) requires each CATV system to file an application for a certificate to operate. Along with the application, FCC regulations require that an annual report, FCC Form 325, be filed. FCC regulations (47 CFR 76.401) also requires that FCC Form 325 be filed by all existing CATV systems annually.

The information received on the aforementioned applications and reports is discussed below in the same sequence as the information requested in Senator Metcalf's letter of February 9, 1973, except for the evaluation of the enforcement and effectiveness of the rules and regulations which will be covered in the Comptroller General's formal response to Senator Metcalf.1

1. Information on Proprietary (Voting) Ownership

The ownership section of FCC Form 325 requires the disclosure of all stockholders who own 3 percent or more of the voting stock of the CATV system. Where stock is held by a stockholder in a street name, this fact must be noted. In addition, FCC Form 325 requires information on the beneficial owner of the stock including the name of the owner and the person who votes the stock.

2. Information on Subsidiaries, Parents or Other Company or Firm Having Control Over Regulated Corporation The ownership section of FCC Form 325 requires information as to organizations or combinations of organizations which separately or jointly hold at least 25 percent control over the CATV system. Information is also requested on corporations or firms in which the CATV system holds 25 percent of the outstanding stock. The CATV

1 See p. 197.

system must also report the identity of all: (1) AM, FM, or television; (2) cable television systems; (3) manufacturers of cable television equipment; (4) communications common carriers; and (5) daily newspapers, in which they own 5 percent or more of the voting stock.

Although no specific ownership information is required to be filed, FCC regulation 47 CFR 76.501 states that no CATV system shall carry the signal of any television broadcast station if the CATV system directly or indirectly owns, operates, controls, or has an interest in (1) a national television network or (2) certain types of television stations which operate in the same area. This regulation will be effective August 10, 1973, for CATV systems that had ownership interests that were in existence on or before July 1, 1970. If the ownership interests were acquired after July 1, 1970, the regulation became effective August 10, 1970.

3. Information on Officers and Directors

The ownership section of FCC Form 325 requires that a CATV system list the names of all officers and directors and the amount of voting stock each owns, and disclose the family relationships between the officers and directors. In addition, all officers or directors of the reporting CATV system must disclose the name of any corporation that they are officers or directors of. They must also disclose any: (1) AM, FM, or television broadcast licensee or permittee; (2) cable television systems; (3) manufacturers of cable television equipment; (4) communications common carrier; and (5) daily newspapers, of which they own 5 percent or more of the voting stock.

4. Information on Long-Term and Short-Term Debt

The Bureau does not receive information as to longterm and short-term debt of CATV systems.

5. Enforcement and Effectiveness of Laws, Rules and Regulations

See Comptroller General's letter on p. 197.

6. Availability and Cost of Information

The availability and cost of information in the Cable Television Bureau is the same as in the Broadcast Bureau. 7. Proposals for New Legislation or Authority

Proposals for new legislation or authority for the Cable Television Bureau is the same as that presented under Broadcast Bureau.

FEDERAL MARITIME COMMISSION

The Federal Maritime Commission (FMC) was established to protect the interest of the public by regulating waterborne shipping in the foreign and domestic offshore commerce of the United States. The information obtained by FMC is derived from various applications and reports required to be submitted by members of the regulated industry. These are discussed below.

Freight Forwarders

Section 44 of the Shipping Act of 1916, as amended (46, U.S.C. 801), gives FMC the authority to license independent ocean freight forwarders. Pursuant to this

authority FMC regulations (46 CFR 510) establish the procedure for applying for licenses, the qualifications required of the applicants, and the grounds for revocation or suspension of such licenses. FMC regulations (46 CFR 510.3) provide that Form FMC-18, Application for a License as an Independent Ocean Freight Forwarder, must be filed. This application is the source of all information on proprietary ownership; subsidiaries and parents; officers and directors; and long-term and short-term debts of freight forwarders. The information received is discussed below

in the same sequence as the information requested in Senator Metcalf's letter of February 9, 1973, except for the evaluation of the enforcement and effectiveness of rules

and regulations which will be covered in the Comptroller General's formal response to Senator Metcalf.1

1. Information on Proprietary (Voting) Ownership

Form FMC-18 requires the applicant to provide the names, addresses, percentage of stock held, and citizenship, of every stockholder who individually owns or holds 5 percent or more of the applicant's outstanding stock. If any of the listed stockholders are not the beneficial owners of the stock, the applicant must list the name, address, and citizenship of the beneficial owners of such stock.

2. Information on Subsidiaries, Parents, or any other Company or Firm Having Control Over Subject Corporation

Form FMC-18 requires that the applicant state whether it is a parent, affiliate, or subsidiary of any other corporation. If so, the applicant must disclose the specific relationships, and the name, and address of the affiliated corporations.

3. Information on Officers and Directors

Form FMC-18 requires the applicant to list the name, residence, date and place of birth, and citizenship of all corporate officers and directors, partnership members, or individual proprietors.

Form FMC-18 also requires the applicant to state whether any officer or director is an owner of, in control of, or associated or connected with any:

(a) Shipper, consignee, seller, or purchaser of shipments to foreign countries.

(b) Ocean carrier, other ocean freight forwarder, or their agents.

(c) Person or persons carrying on activities related to the foregoing.

4. Information on Long-Term and Short-Term Debt

Form FMC-18 does not require the respondent to provide any information on either long-term or short

term debt.

5. Enforcement and Effectiveness of Laws, Rules, and Regulations

See Comptroller General's letter on p. 197.

6. Availability and Cost of Information

A FMC official informed us that all information in the Form FMC-18 related to proprietary ownership; subsidiaries and parents; and officers and directors is available to the public at a cost of $.25 per page.

1 See p. 197.

7. Proposal for New Legislation and Authority

Agency officials responsible for freight forwarder licensing said that they knew of no proposed laws, rules, regulations, or procedures which would augment the information reporting requirements currently in force. They stated that no additional authority is needed.

Common Carrier by Water

gives FMC the authority to require any common carrier Section 21 of the Shipping Act of 1916 (46 U.S.C. 820) by water, or other person subject to the act, to file with record, rate, or charge, or any memorandum of any facts FMC any periodical or special report, or any account, and transactions pertaining to the business of such carrier or person subject to this act.

Pursuant to this authority FMC regulations (46 CFR 511.2, 511.3, 511.5) require annual reports to be filed by common carriers by water in the domestic offshore trade as follows:

(1) Annual report Form FMC-64 prescribed pursuant to FMC regulations (46 CFR 511.2, 511.5), for all persons engaged in the operation of self-propelled vessels in the common carriage of persons or property in the domestic offshore trades.

(2) Annual report Form FMC-63 prescribed pursuant to FMC regulations (46 CFR 511.2, 511.5), for all persons engaged in the operation of vessels, other than self-propelled, in the common carriage of persons or property in

the domestic offshore trades.

Forms FMC-64 and FMC-63 are the source of most information on common carriers by water received by FMC concerning proprietary ownership; subsidiaries and parents; officers and directors; and long-term and shortterm debt of the regulated companies. The information received is discussed below in the same sequence as the information requested in Senator Metcalf's letter of February 9, 1973, except for the evaluation of the enforcement and effectiveness of the rules and regulations which will be covered in the Comptroller General's formal response to Senator Metcalf.1

1. Information on Proprietary (Voting) Ownership

Annual report Form FMC-64 requires the carrier to provide the names, addresses, number of votes, and the classification of the capital stock of security holders who own 5 percent or more of each class of stock. If any such holder holds the stock in trust, the respondent must give the particulars of the trust.

Annual report Form FMC-63 requires the carrier to provide the names, addresses, the number of votes, and the classification of the capital stock of the thirty (30) security holders having the greatest voting power. If any such holder holds the stock in trust, the report must disclose the particulars of the trust.

Forms FMC-64 and FMC-63 also require disclosure of: (1) whether there are voting rights attached to any securities other than stock. If so the respondent must state in detail the relation between holdings and corresponding voting rights;

(2) whether any class or issue of securities has any special privileges in the election of directors, trustees, or managers, or in the determination of corporate action. The report must describe fully each class or issue of stock and give a succinct statement showing clearly the character and extent of such privileges;

1 See p. 197.

(3) the total voting power of all security holders of the carrier, and

(4) the total of stockholders of record.

2. Information on Subsidiaries, Parents, or Any Other Company or Firm Having Control Over Subject Corporation

Annual report Forms FMC-64 and FMC-63 require the completion of five schedules to be included with each of the two annual reports concerning the relationship between the carrier and affiliated companies. The schedules are:

(1) Schedule No. 1004 included with Form FMC-64 and No. 104A included with Form FMC-63, require disclosure of the names of all corporations which are controlled solely or jointly by the carrier other than through ownership, the form of control exercised, and the extent of the interest of the carrier in the controlled corporation. (2) Schedule No. 1005 included with Form FMC-64 and No. 104B included with Form FMC-63 require disclosure of the names of all corporations which are controlled by the respondent through intermediary companies. Information as to the particulars of such control is essentially the same as required in Schedules 1004 and 104A.

(3) Schedules No. 1006, included with Form FMC-64, and No. 108, included with Form FMC-63, require disclosure of all corporations having control over the carrier, the manner in which control was established, the extent of control, whether control is direct or indirect, and if indirect, the name of the intermediary. If control was exercised through a trust, the name of the trustee, the beneficiaries and the purpose of the trust must be disclosed.

(4) Schedules No. 2014, included with Form FMC-64, and No. 217, included with Form FMC-63, require disclosure of securities held in related companies and investments in affiliated companies. The information requested includes the name of the issuing company, a description of the security held and lien reference, if any. The schedules also require the extent of control exercised by the carrier, the investments held at the close of, the investments made during, and the investments disposed of or written down during the reporting period.

(5) Schedules No.'s 2015 and 221, included with Forms FMC-64 and FMC-63 respectively, require disclosure of securities and intangibles owned or controlled through nonreporting carrier and noncarrier subsidiaries of the reporting carrier. The information required includes the particulars of investments represented by securities and advances and intangible property, indirectly owned and controlled by the carrier through any subsidiary which does not report to FMC. The schedules are to include the name of the issuing company, the securities or intangibles in which the investment is made, the investments held at the close of the year, made during the year, and disposed of or written down during the year, and the names of the subsidiaries through which ownership or control is maintained.

FOREIGN CARRIERS

In addition to Forms FMC-64 and FMC-63, FMC asks foreign common carriers to file Form FMC-9 (Information Circular). We were informed by an FMC official that there are no FMC regulations which require this form to be filed by foreign carriers. FMC requests on Form FMC-9 that information be given on persons or companies controlling, controlled by or under control of the foreign carrier. The information requested includes the name, address, and relationship to the respondent.

3. Information on Officers or Directors

Annual Report Forms FMC-64 and FMC-63 each require the carrier to complete two schedules which provide information on the carriers' officers and directors. Schedules 1002 and 102 included with Forms FMC-64 and FMC-63, respectively, require disclosure of the names, titles and addresses of all directors, the length of their term of office and the number of voting shares actually or beneficially owned by them, either directly or indirectly. This includes shares owned of record, shares owned through holding companies, trusts or other mediums, and shares owned but held in the names of brokers or other nominees.

Schedules 1003 and 103 included with Form FMC-64 and FMC-63, respectively, require the name, title, and address of the general officers of the carrier, the respective department or departments over which jurisdiction is exercised, and the number of voting shares actually or beneficially owned by the officers either directly or indirectly. This includes shares owned of record, shares owned through holding companies, trusts or other mediums, and shares owned but held in the names of brokers or other

nominees.

4. Information on Long-Term and Short-Term Debt

Annual Report Form FMC-64 requires the carrier to complete four schedules which provide debt information. Schedule 2050 requires disclosure of the name of the creditor, the nature of the debt, retirement provisions, whether the debt is secured or unsecured, the maturity date, and the interest provisions.

Schedule 2051 requires the particulars of the various unmatured mortgage bonds and debentures of the carrier including the nature of each obligation, the maturity date, the par value of the indebtedness authorized, the total par value actually outstanding, and the interest provisions of the debt.

Schedule 2053 requires disclosure of non-current notes and accounts payable to officers and employees, including the creditor's name, the nature of the transaction creating the debt, the amount of the debt, the interest rate, and the due date.

Schedule 2042 requires disclosure of non-current payables to related companies of the carrier including the creditor's name, the nature of the transaction creating the debt, the amount of the debt, the interest rate, and the due date.

Annual Report Form FMC-64 also requires the respondent to complete three schedules which provide information on short-term debt. Schedules 2040 and 2041 include notes payable and notes and accounts payable to related companies, respectively, and show the creditor's name, the nature of the liability and the transaction giving rise to the liability, the rate of interest, and the balance outstanding. Schedule 2043 includes accounts payable and shows the creditor's name, the nature of the transaction creating the debt, and the amount owed.

Annual Report Form FMC-63 requires the carrier to complete Schedule 261 dealing with funded debt and receivers' and trustees' securities. The schedule requests the name of each bond or other obligation classified under the following subheadings:

(1) Mortgage Bonds.

(2) Collateral Trusts Bonds. (3) Income Bonds.

(4) Miscellaneous Obligations Maturing More than One Year After Issue Date.

(5) Receipts Outstanding for Funded Debt.

(6) Equipment Obligations.

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(7) Receivers' and Trustees' Securities. The schedule also requests the maturity date, the par value of the indebtedness authorized, the total value actually outstanding and the interest provisions. Annual Report Form FMC-63 also requires the carrier to complete Schedule 288 dealing with short-term notes payable. This schedule requires the creditor company's name, the nature of the liability and the transaction creating the debt, the maturity date, the interest rate, and the outstanding balance.

5. Enforcement and Effectiveness of Laws, Rules, and Regulations

See Comptroller General's letter on p. 197.

6. Availability and Cost of Information

Agency officials told us that the information in the Annual Report Forms FMC-64 and FMC-63 and the information circular FMC-9 filed by the foreign carriers is not available to the public.

7. Proposals for New Legislation and Authority

FMC's legislative counsel could not readily provide a description of those laws, rules, regulations, or procedures proposed by the Commission to augment the information reporting requirements currently in existence except for (1) a pending proposed rule which would make mandatory the filing of information on control similar to that currently asked for in Information Circular FMC-9, and (2) FMC Proposal 93-4 which is a proposed bill approved by the Commission that is currently with the Office of Management and Budget for approval prior to submission to the Congress. The bill, if enacted would (a) require annual, periodical, or special reports from every common carrier by water in interstate commerce and (b) give FMC specific statutory authority to make available for public inspection the financial reports submitted by carriers subject to its respective jurisdiction. FMC officials advised us that they could not provide us with other proposals made during the last 10 years without researching their files. The officials stated that they could not begin researching their files until at least March 22, 1973, and they could not estimate the time required to supply a list of proposals for new legislation or authority.

FEDERAL POWER COMMISSION

The Federal Power Commission (FPC) performs two primary functions-regulation of the electric industry under the Federal Power Act and regulation of the gas industry under the Natural Gas Act.

Reporting Requirements Under the Federal Power Act

Section 304 (a) of the Federal Power Act (16 U.S.C. 825c) requires every licensee and every public utility to file with the Commission such annual and other periodic or special reports as the Commission may, by rules, regulations, or orders prescribe as necessary or appropriate to assist the Commission in the proper administration of the Federal Power Act. FPC's regulations (18 CFR 141.1) require that an annual report-FPC Form No. 1-be filed by each electric utility, corporation, person or licensee, any agency, authority or other legal entity or

instrumentality which is engaged in the generation, transmission or distribution of electricity if they have operating revenues of $1 million or more.

FPC regulations (18 CFR 141.2) require that an annual report-FPC Form No. 1-F-be filed by each electric utility, corporation, person or licensee, any agency authority or other legal entity or instrumentality which is engaged in the generation, transmission or distribution of electricity if they have annual operating revenues of $25,000 or more but less than $1 million.

These annual reports are the source of most information received by FPC concerning ownership and control, officers and directors, and long-term and short-term debt. The information received by FPC is discussed below in the same sequence as the information requested in Senator Metcalf's letter of February 9, 1973 except for the evaluation of the enforcement and effectiveness of the rules and regulations which will be covered in the Comptroller General's formal response to Senator Metcalf.1

1. Information on Proprietary (Voting) Ownership

Each of the annual reports described above contains a schedule entitled Security Holders and Voting Powers. On the schedules FPC requests information on the names and addresses of the 10 stockholders having the largest voting power and the number of votes each would have the right to cast at a stockholders' meeting. On the schedule filed with FPC Form No. 1, FPC requires also that, if any of the 10 largest stockholders held the stock in trust, a footnote on the known particulars of the trust agreement should be included. The schedule filed with FPC Form No. 1-F requires that the company include the beneficial owners of securities held in trust.

In performing its statutory responsibilities, FPC requires other information on ownership and control as follows:

Section 309 of the Federal Power Act, as amended, (16 U.S.C. 825h) provides FPC with authority to license hydroelectric facilities. FPC regulations (18 CFR 141.11) require utilities in process of constructing hydroelectric facilities to file a listing of the names of all individuals, or association of individuals, whether incorporated or not, that held 10 percent or more of the licensee's capital stock. If such holding was as fiduciary, the names of the represented owners are required.

2. Information on Subsidiaries, Parents, or Control Over the Subject Corporation

The annual report FPC Form No. 1 contains two primary schedules concerning subsidiaries, parents or information on control over the subject corporation which

are:

Control Over Respondent.

Corporations Controlled by Respondent.

If any corporation, business trust or similar organization or combination of such organizations jointly held control over the regulated company at the end of the year, the the controlling corporation or organization to be stated Control Over Respondent schedule requires the name of along with information on the manner in which control was held and the extent of control. FPC requires that if control was in a holding company organization, the chain of ownership or control leading to the main parent company or organization should be shown on the schedule.

1 See p. 197.

The schedule, entitled Corporations Controlled by Respondent, requires the regulated company to report the names of all corporations, business trusts, and similar organizations, controlled directly or indirectly by the regulated company at any time during the year.

ADDITIONAL INFORMATION

In addition to the primary schedules discussed above, FPC requires other information on the FPC Form No. 1 for companies having revenues of over $1,000,000. The schedule is entitled Important Changes During the Year. Information requested includes information pertaining to the acquisition of ownership in other companies; and reorganizations, mergers or consolidations with other companies that occurred during the year.

In performing its statutory responsibilities, FPC requires other information on ownership and control as follows:

(1) In performing its function of licensing hydroelectric facilities pursuant to section 309 of the Federal Power Act (16 U.S.Ĉ. 825h), FPC regulations (18 CFR 4.40) require that an application for a complete project of more than 2,000 horsepower installed capacity be filed with FPC. One item on the application requests that information be given on the amount of control or ownership exercised by the applicant in any other organization or the amount of control over the applicant by any other organization. Applications for relicensing of hydroelectric facilities also require the same information. (See 18 CFR 16.6.) (2) Also pursuant to section 309 of the act, FPC regulations (18 CFR 141.11) require the utilities constructing the hydroelectric facilities to file a report within six months after construction begins that discloses the nature and extent of any financial interest in any contractor or other firm or corporation that renders service for which a charge is included in the cost of the hydroelectric project. If any individual or association holding 10 percent or more of the voting stock of the utility, also holds a financial interest in any contractor or other firm or corporation that rendered service for which a significant amount is included in the cost of the project, the licensee must disclose the extent of this interest. If this information is not known to the utility, it must request this information for any important contract and submit to FPC copies of the replies received from the respective individuals and associations.

STATEMENT REQUIRED TO BE FILED

(3) In cases where an application is filed to obtain FPC's approval of the sale, lease or other disposition, merger or consolidation of facilities or for purchase or acquisition of securities of a public utility pursuant to section 203(a) of the act (16 U.S.C. 824b), FPC regulations (18 CFR 33.3) require a statement to be filed or the measure of control or ownership exercised by or over each party to the transaction with respect to any public utility, bank, trust company, banking association or firm that is authorized by law to underwrite or participate in the marketing of securities of a public utility.

(4) FPC must authorize the issuance of securities or the assumption of liabilities by regulated companies pursuant to section 204 of the Federal Power Act (16 U.S.C. 824c). FPC regulations (18 CFR 34) require that, along with the application for issuance of securities or the assumption of liabilities, a statement be included with the application of the measure of control or ownership exer

cised by or over the applicant by any public utility, bank, trust company, banking association or firm that is authorized by law to underwrite or participate in the marketing of securities of a public utility. 3. Information on Officers and Directors

The annual report (FPC Form No. 1) contains separate schedules concerning officers and directors of the regulated company.

The schedule on officers contains the name, title, office address and salary of each general officer of the company. The schedule on directors contains the name, address, term of office, director meetings attended during the year, and fees received during the year. Also appearing in the annual report (FPC Form 1) is a schedule on security holders and voting powers. Certain information about officers and directors is requested on this schedule if the officers or directors are among the top 10 stockholders of the company.

A list of officers and directors is requested for respondents filing Form No. 1-F on a schedule entitled Officers and Directors.

In performing its statutory responsibilities, FPC may request other information about officers and/or directors as follows:

(1) Section 305(b) of the Federal Power Act (16 U.S.C. 825d (b)) requires that officers and directors of utilities under FPC jurisdiction obtain FPC approval before they serve as officers and directors of other corporations. In filing an application for authority to hold interlocking positions pursuant to FPC regulations (18 CFR 45), names of all officers and directors are requested along with information concerning the officer or director who will serve in the interlocking position.

(2) Section 203 (a) of the Federal Power Act (16 U.S.C. 824 (b)), requires FPC to approve the sale, lease or other disposition, merger or consolidation of facilities, or purchase or acquisition of securities of a public utility. In filing an application, FPC regulations (18 CFR 33), require that the names, titles and addresses of the principal officers be given.

(3) Section 204 of the Federal Power Act (16 U.S.C. 824c) requires FPC to approve the issuance of securities or the assumption of liabilities by regulated companies." In fulfilling the statutory responsibility, FPC regulations (18 CFR 34) require that an application be filed that includes the names, titles and addresses of principal officers of applicants.

4. Information on Long-Term and Short-Term Debt

The annual report (FPC Form No. 1) requests information on long-term and short-term debt on the following schedules:

(1) Comparative Balance Sheet-Requests balances of long-term and short-term debt. No information is given on the particulars of the debts.

(2) Long-Term Debt (Accounts 221, 223 and 224)—Requests particulars on long-term debts including the class and series of obligations, nominal date of issue, date of maturity, amount of outstanding debt and the interest paid during the year.

*Staff note: Section 204 (f) of the Federal Power Act excludes from FPC jurisdiction the security issues of electric utilities organized and operating in States where security issues are regulated by State commissions. This limitation excludes about 85 percent of the electric utilities from regulation of security issues by the FPC.

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