COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE (EIGHTY-SIXTH CONGRESS) OREN HARRIS, Arkansas, Chairman JOHN BELL WILLIAMS, Mississippi SAMUEL N. FRIEDEL, Maryland TORBERT H. MACDONALD, Massachusetts JOHN JARMAN, Oklahoma LEO W. O'BRIEN, New York JOHN E. MOSS, California JOHN D. DINGELL, Michigan JOE M. KILGORE, Texas PAUL G. ROGERS, Florida ROBERT W. HEMPHILL, South Carolina JAMES C. HEALEY, New York JOHN B. BENNETT, Michigan CONTENTS Public hearings held by subcommittee__ Rules of procedure__ Testimony of Page 5734 5755 Anton, James, staff member, Civil Aeronautics Board. 5538, 5573, 5596 Aplin, Stephen, Director, Bureau of Rates and Practices, Interstate Commerce Commission.. 5381, 5435 Baker, Vernon, Director, Bureau of Finance, Interstate Commerce 5381, 5435 5538, 5573, 5596 5538, 5573, 5596 Bakke, Oscar, staff member, Civil Aeronautics Board.. 5748 ..5381, 5435 5538, 5573, 5596 Denny, Harmar D., member, Civil Aeronautics Board. 5538, 5573, 5596 5538, 5573, 5596 Dregge, John W., staff member, Civil Aeronautics Board.. 5636 Freas, Howard, Chairman, Interstate Commerce Commission 5381, 5435 Ginnane, Robert, General Counsel, Interstate Commerce Commis sion Goldfine, Bernard. Goldman, Joseph B., staff member, Civil Aeronautics Board. 5381, 5435 5748 5538, 5573, 5596 5538, 5573, 5596 Gurney, Chan, Vice Chairman, Civil Aeronautics Board. 5538, 5573, 5596 Juliana, James N., staff member, Civil Aeronautics Board. 5538, 5573, 5596 Kloepfer, William, Jr., staff member, Civil Aeronautics Board... 5538, 5573, 5596 Koch, Irving, Chief, Section of Review, Bureau of Rates and Practices, 5538, 5573, 5596 5498, 5503 5538, 5573, 5596 McCoy, Harold, Secretary, Section of Cost Finding, Bureau of Ac- Minetti, G. Joseph, member, Civil Aeronautics Board Stone, Franklin M., staff member, Civil Aeronautics Board. 5538, 5573, 5596 Sutton, George O. 5511, 5642 Towne, Sam, Chief, Section of Cost Finding, Bureau of Accounts, Cost Williams, Edward Bennett, counsel for Mr. Goldfine... Additional information submitted for the record: Page Bureau of the Budget, letter from Elmer B. Staats, Assistant Director. 5570 Correspondence with James Rowe, Jr., Assistant to the Presi- dent... Letter from James R. Durfee, Chairman_. Letters from- Doerfer, John C., Chairman__ Smith, Elizabeth C.; hearing examiner Federal Power Commission, letters from Jerome K. Kuykendall, 5738, 5739 5355, 5644, 5726, 5727 5354 5799-5806 5799 5761 House Resolution 684, 85th Congress, 2d session (resolution to Proceedings against (H. Rept. 2580, 85th Cong., 2d sess.). Correspondence with Edward Bennett Williams_ Interstate Commerce Commission: Chronology and Commission action re St. Louis-San Francisco Railway Co. to acquire control of Central of Georgia Railway ICC denies Frisco application to control Central of Georgia (vari- Rules and regulations governing applications for authority to Karsten, Hon. Frank M., letter from.. Library of Congress, letter from Hugh L. Elsbree, Director, Legislative 5722 Memorandum re examiner,s initial findings and modified findings in 5357 Securities and Exchange Commission, letter from Daniel J. McCauley, Jr., Associate General Counsel, transmitting memorandum____ 5730 Sutton, George O., correspondence with James Murray, station man- 5513-5517 INVESTIGATION OF REGULATORY COMMISSIONS AND AGENCIES THURSDAY, NOVEMBER 20, 1958 HOUSE OF REPRESENTATIVES, SPECIAL SUBCOMMITTEE ON LEGISLATIVE OVERSIGHT OF THE COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE, Washington, D.C. The special subcommittee met, pursuant to call, at 10:25 a.m., in room 1334, New House Office Building, Hon. Oren Harris (chairman of the full committee) presiding. Present: Representatives Harris, Mack, Moulder, Wolverton, and O'Hara. Also present: Robert W. Lishman, counsel to the subcommittee; Mary Louise Ramsey, attorney; Herman C. Beasley, of the subcommittee staff; and R. W. Martin, administrative assistant. The CHAIRMAN. Let the committee come to order. At the outset of the hearing this morning, and to carry forward, at the conclusion of the hearings yesterday afternoon the following material which has been developed by the staff will be included in the record, beginning at this point: A letter from Jerome K. Kuykendall, Chairman, Federal Power Commission, dated October 22, 1958, addressed to the chairman, regarding licensing legislation. (The letter referred to is as follows:) FEDERAL POWER COMMISSION, Hon. OREN HARRIS, Chairman, Special Subcommittee on Legislative Oversight, DEAR MR. CHAIRMAN: At the hearing on September 25 before the Special Subcommittee on Legislative Oversight on Federal Power Commission practice concerning 50-year licenses for hydroelectric projects, you asked if the Commission had any recommendations to submit for legislation to deal with any phases of this troublesome problem. In issuing licenses for proposed hydroelectric projects to be built after the license authorization, the license term has been fixed without difficulty. In 1935 Congress amended the Power Act to give the Commission authority to investigate the legal right of constructed powerplants to occupy streams subject to the jurisdiction of Congress. When it appeared that a large number of hydroelectric projects might be operating without requisite Federal authority, an investigation was commenced in December 1937 (docket No. IT-5501) to ascertain the facts as fully as possible without undue expenditure of time or money. Thereafter in separate proceedings a number of constructed projects were found to be operating without requisite Federal authority and were required to apply for and to accept licenses from the Commission. Under this program the first group of applications coming before the Commission covered solely constructed projects which had been operating without |