THURSDAY, JANUARY 11, 1973

WASHINGTON, D.C.

Volume 38 ■ Number 7

Pages 1263-1370 PART 1

(Part II begins on page 1333)

(Part III begins on page 1361)

HIGHLIGHTS OF THIS ISSUE This listing does not affect the legal status of any document published in this issue. Detailed table of contents appears inside.

MOTOR VEHICLE SAFETY— DoT publishes code numbers assigned to prime glazing material man- fa ctu re rs...... — ~------— 1300

COTTON, WOOL AND MANMADE FIBER TEX­ TILES— CITA notices on import limitations from Macao (2 documents); effective 1-1-73 ____ 1 3 0 2 ,1 3 0 3

HAZARDOUS MATERIALS— Coast Guard amends rules on transportation, storage or use of certain flammable liquids and other dangerous articles; effective 4-13-73 ...... — ______1276

OIL AND GAS— Interior Dept, regulation on im­ portation of No. 2 fuel oil from the Virgin Islands.. 1274

SAVINGS AND LOAN CONVERSIONS— FHLBB proposals (2 documents); comments by 3 -1 2 - 7 3 ...... 1334 FHLBB notice extends eligibility date to 12- 31—72 or earlier„______1359

NEW DRUGS— FDA notices of proposals to with­ draw approval of certain combination drugs con­ taining rauwolfia alkaloids, aminophyliine, di­ phenhydramine, and ammonium chloride (2 documents); hearing request by 2-12-73. .. 1295, 1296

MUTUAL FUNDS— SEC proposal to allow group purchases for quantity discounts; comments by 3 -3 0 - 7 3 ...... 1284

PUBLIC LANDS— Interior Dept, proposes to modify regulations for simultaneous oil and gas leasing procedures; comments by 2-9-73 ...... 1281

(Continued inside) MICROFILM EDITION FEDERAL REGISTER 35mm MICROFILM

Complete Set 1936-71, 202 Rolls $1,439

Voi. Year Price Vof. Year Price Voi. Year Price

1 1936 $7 13 1948 $28 25 1960 $ 4 9 ■ I 2 1937 12 14 1949 22 26 1961 4 4 H 3 1938 8 15 1950 28 27 1962 4 6 4 1939 14 16 1951 4 4 28 1963 50 5 1940 14 17 1952 41 29 1964 5 4 6 1941 21 18 1953 3 0 3 0 1965 58 7 1942 37 19 1954 3 7 31 1966 60 I 8 1943 53 20 1955 41 3 2 1967 69 1 9 1944 4 2 21 1956 4 2 33 1968 55 10 1945 4 7 22 1957 41 3 4 1969 62 11 1946 47 23 1958 41 35 1970 59 1 12 1947 24 24 1959 4 2 36 1971 97 J

Order Microfilm Edition from Publications Sales Branch National Archives and Records Service Washington, D.C. 20408

Published daily, Monday through Friday (no publication on Saturdays, Sundays, or on official Federal holidays), by the Office of the Federal Register, National Archives and FEDERALWREGISTER Records Service, General Services Administration, Washington, D.C. 20408, pursuant to Area Code 202 Phone 962-8626 the authority contained in the Federal Register Act, approved July 26, 1935 (49 Stat. 500, as amended; 44 U.S.C., Ch. 15), under regulations prescribed by the Administrative Committee of the Federal Register, approved by the President (1 CFR Ch. I). Distribution is made only by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. The Federal R egister provides a uniform system for filing, publishing, and making available to the public, regulations and legal notices issued by the Executive Branch of the Government. These include Presidential proclamations and Executive orders and Federal agency documents having general applicability and legal effect, documents required to be published by Act of Congress and other Federal agency documents of public interest. The F ederal R egister will be furnished by mail to subscribers, free of postage, for $2.50 per month or $25 per year, payable in advance. The charge for individual copies is 20 cents for each issue, o r 20 cents for each group of pages as actually bound. Remit check or money order, made payable to the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. There are no restrictions on the republication of material appearing in ohe F ederal R egister. HIGHLIGHTS— Continued

PESTICIDES— EPA exempts from requirement OPERATING SUBSIDY FOR CARGO VESSELS of a tolerance the use of xylene as an inert in­ CARRYING GRAIN TO USSR— Maritime Admin, gredient in pesticide formulations applicable to regulations ...... 1277 stored grain...... 1...... - —- - 1275 NEW ANIMAL DRUGS— FDA approves use of ENVIRONMENT— EPA proposals describing ethylisobutrazine hydrochloride injection and policy and procedures for issuing or denying per­ tablets, veterinary, as tranquilizers in dogs, and mits under the National Pollutant Discharge Elim­ bambermycins in broiler chicken feed (2 docu­ ination System...:...... —~ 1361 ments) ...... 1273, 1274

ANTIBIOTIC DRUGS:—FDA notice reclassifying ECONOMIC STABILIZATION— effectiveness claims for oxytetracycline hydro­ Price Commission issues instructions for re­ chloride and polymyxin B sulfate vaginal tablets.. 1297 porting profit margin overages on form, pend­ ing revision...... „ ...... 1269 MOTOR VEHICLE EXEMPTIONS— Pay Board/IRS rulings on escalator clauses in DoT notice of exemption granted General wage increases...... 1270 Motors from front seat restraint requirements on 1,000 Chevrolets...... 1298 DoT notice of temporary exemption granted MEETINGS: DoD: CONARC Advisory Committee, 1—30 to 2-1, ’73.. 1287 Lotus Cars, Ltd. from compliance with side NASA: NASA Life Sciences Subcommittee, 1—23—73.. 1311 door strength requirement...... 1299 COMMERCE— Education Committee of Advisory Coun- cil for Minority Enterprise, 1-19, 20-73...... 1295 PROCUREMENT— GSA regulations on bidding Management-Labor Textile Advisory Committee, and forms for building service contracts...... 1276 1-17-73 ...... 1295

Contents

AGENCY FOR INTERNATIONAL ASSISTANT SECRETARY FOR CIVIL AERONAUTICS BOARD DEVELOPMENT HOUSING MANAGEMENT Notices Notices OFFICE Hearings, etc.: Director and Deputy Director, Of­ Schenker & Co. Gmbh and fice of Housing; redelegation of Notices - Schenkers International For- a u th o rity ______:______1287 warders, Inc •______1302 Regional Administrators et al.; Standard Airways, Inc______1302 redelegation of authority re­ AGRICULTURAL MARKETING garding loan and contract serv­ CIVIL SERVICE COMMISSION SERVICE icing ------1298 Rules and Regulations Rules and Regulations Excepted service: Navel oranges grown in Arizona ATOMIC ENERGY COMMISSION Agency for International Devel­ and California; handling limi­ opment ______1269 tation ____ L______1270 Rules and Regulations Environmental P rotection Conduct of employees; solicita­ A g e n cy ______1269 Proposed Rule Making Occupational Safety and Health tions and indebtedness______1271 Milk in the St. Louis-Ozarks mar­ Review Commission______1269 keting area; recommended deci­ Contract clauses and administra­ Treasury Department______1269 sion and opportunity to file writ­ tion of cost-type contract or ten exceptions______1281 procurement activities; disputes COAST GUARD c la u s e ______1276 Rules and Regulations AGRICULTURE DEPARTMENT Miscellaneous amendments to Transportation or storage of ex­ See Agricultural Marketing chapter ______1271 plosives or other dangerous Service; Commodity Exchange articles; prohibition of motor Authority; Soil Conservation Notices vehicles containing gasoline in Service. . Oak Ridge Operations Office; closed containers______1276 trespassing on Commission COMMERCE DEPARTMENT ARMY DEPARTMENT property — ------1301 Notices See Import Programs Office ; South Carolina Electric and Gas Maritime Administration; Mi­ CONARC Advisory Committee to Co.; availability of final state­ nority Business Enterprise U.S. Army Institute for Military ment on environmental consid­ Office; Textiles Office. Assistance; public meeting____ 1287 erations ______1301 (Continued on next page) 1265 1266 CONTENTS COMMITTEE FOR THE IMPLE­ Notices FISH AND WILDLIFE SERVICE MENTATION OF TEXTILE California Financial Corp.; re­ ceipt of application for approval Rules and Regulations AGREEMENTS of acquisition of control of Sport fishing on certain national Trans-Coast Investment Com­ wildlife refuges: Notices pany ______:------— 1303 Carolina Sandhills, S.C------—- 1280 Macao; entry or withdrawal from Federally insured mutual savings Lacreek, S. Dak______1280 warehouse for consumption: and loan associations; change in Tamarac, Minn______1279 Certain cotton textiles and cot­ distribution record date for ton textile products------1302 plans of conversion______1359 FOOD AND DRUG Certain wool and man-made First Texas Financial Corp.; re­ fiber textile products------1303 ceipt of application for permis­ ADMINISTRATION sion to acquire control of First Rules and Regulations COMMITTEE FOR PURCHASE OF Savings and Loan Association'— 1304 New animal drugs: PRODUCTS AND SERVICES OF Bambermycins------1274 THE BLIND AND OTHER SE­ FEDERAL MARITIME Ethylisobutrazine hydrochlo­ VERELY HANDICAPPED COMMISSION ride ______- 1273 Notices Notices Notices Manufacturers and distributors; Initial procurement list; addition, 1302 Agreemtents filed: Board of Commissioners of the prescription drug for human use COMMODITY EXCHANGE Port of New Orleans and Con­ affected by drug efficacy study tainer Lift International----- 1305 • implementation; correction----- 1297 AUTHORITY Port of Seattle and Sea-Land Vaginal tablets containing Oxytet­ Midamerica Com m odity Ex­ Service, Inc______- 1304 racycline hydrochloride and change; new name for Board of United States Gulf/Japan Cot­ polymyxin B sulfate; drug effi­ Trade designated as contract ton Pool______1305 cacy study implementation m arket______l ------1289 G. P. Donahue, Inc.; order of followup notice______1297 re v o ca tio n ------1304 Withdrawal of new drug applica­ DEFENSE DEPARTMENT tion; opportunity for hearing: Certain combination drugs con­ See Army Department. FEDERAL RESERVE SYSTEM taining rauwolfia alkaloids— 1295 Combination containing amino- ENVIRONMENTAL PROTECTION Notices phylline, diphenhydramine, AGENCY Budget Industries, Inc.; nonbank- and ammonium chloride------1296 ing activities,------1305 Rules and Regulations Determination regarding “Grand­ GENERAL SERVICES Tolerances for pesticide chemicals father” privileges: in or on raw agricultural com­ Minnesota Small Loan Co__----- 1308 ADMINISTRATION modities; xylene------— 1275 Zions Utah Bancorporation----- 1310 Rules and Regulations First National Bankshares of Proposed Rule Making Florida, Inc.; acquisition of Solicitation of bids and procure­ National Pollutant Discharge Elim­ banks ______1307 ment form s------— 1276 ination System------1362 Formation of bank holding com­ panies: GEOLOGICAL SURVEY Notices Cambridge Agency, Inc------1305 Merck Sharp & Dohme; filing of Cedar Falls Holding Company, Notices pesticide and food additive pe­ L td ______1306 Power site cancellations: titions ______1303 Kansas Bancorp. Inc------1308 Columbia River, Wash------1289 W est Michigan fin a n cia l C orp, 1310 Stanislaus R iver Basin, C alif— 1289 FEDERAL AVIATION Order approving acquisition of ADMINISTRATION banks: HEALTH, EDUCATION, AND Century Bancorp., Inc------1306 WELFARE DEPARTMENT Rules and Regulations First National Financial C orp, 1307 Hamilton Bancshares, Inc------1307 See Food and Drug Administra­ Alterations: tion. Restricted area______1273 Southwest Bancshares, Inc— - 1309 Transition area------1273 FEDERAL TRADE COMMISSION HOUSING AND URBAN Proposed Rule Making DEVELOPMENT DEPARTMENT Rules and Regulations Temporary restricted area; desig­ See Assistant Secretary for Hous­ nation ------1283 Prohibited trade practices; cor- ing Management Office. rections: FEDERAL HOME LOAN BANK Brown Auto Stabilizer Co. and Charles R. Brown------1273 IMPORT PROGRAMS OFFICE BOARD Stark, Roschelle & Alchas, Inc., Duty-free entry of scientific arti­ Proposed Rule Making et a!------1273 cles: Massachusetts Institute of Tech- Federal mutual savings and loan FISCAL SERVICE n o lo g y ------*------1292 associations; mutual to stock Mercy Catholic Medical Center conversions______1334 Notices et al______1293 Federal Savings and Loan insur­ Rutgers Medical School et al— 1293 ance Corporation; conversions Mohawk Insurance Co.; change of name; surety companies accept­ Yale University—------1294 of insured institutions from mu­ Yeshiva University------1295 tual to stock associations------1334 able on Federal bonds—— —— 1287 CONTENTS 1267

INTERIOR DEPARTMENT MINORITY BUSINESS ENTERPRISE Notices OFFICE Hearings, etc.: See Pish and Wildlife Service; Accurate Calculator Corp_____ 1312 Geological Survey; Land Man­ Notices Bache-Huntoon Paige Ginny agement Bureau; Oil and Gas Mae Trust, Series 1 (and Sub­ Office. Education Committee of Advisory sequent Series)______1312 Council for Minority Enterprise; Capital Exchange Fund, Inc_J_ 1314 INTERNAL REVENUE public meeting______1295 Federal Street Fund, Inc_____ 1315 SERVICE First W orld Corp______1316 NATIONAL AERONAUTICS AND Indiana & Michigan Electric Co_ 1316 Rules and Regulations Keystone Custodian Funds, Inc., Escalator clauses; Pay Board rul­ SPACE ADMINISTRATION et al______1317 ing ----- '------5------1270 Notices Lilac Time, Inc______1318 Star-Glo Industries, Inc______1318 Life Sciences Committee; meet­ Utah Power & Light Co______1318 INTERSTATE COMMERCE ing ______1311 COMMISSION SMALL BUSINESS Notices NATIONAL HIGHWAY TRAFFIC ADMINISTRATION Assignment of hearings------1319 SAFETY ADMINISTRATION Notices Fourth section applications for re­ District Director, District Office, lief ______1320 Notices et al.; delegation of authority Long Island Railroad Co.; rerout­ Prime glazing material manufac­ to conduct program activities in ing or diversion of traffic------1320 turers; assignment of code field offices______1319 Motor carrier, broker, water car­ numbers ______*------1300 rier and freight forwarder ap­ Temporary exemption from Fed­ SOIL CONSERVATION SERVICE plications ______1320 eral Motor Vehicle Safety Notices Standards: Availability of draft environmen­ LAND MANAGEMENT BUREAU General Motors Corp------1298 tal statements: Lotus Cars, Ltd______1299 Big Running Water Ditch Wa­ Proposed Rule Making tershed Project, Ark______1290 Simultaneous offers; noncompeti­ OIL AND GAS OFFICE Mud Creek Watershed Project, tive leases; oil and gas leasings. 1281 S. Dak__------1290 Rules and Regulations Notices STATE DEPARTMENT Fuel oil imports from Virgin Idaho; order providing for opening Isla n d s______1274 See Agency for International De­ of public lands______1287 velopment. Proposed withdrawal and reserva­ tion o f lands: POSTAL SERVICE TARIFF COMMISSION Montana (2 documents)______1288 Notices N evad a ______1288 Rules and Regulations Andal Shoes, Inc.; workers’ peti­ Incorporation by reference of reg­ tion for determination; investi­ MARITIME ADMINISTRATION ulations governing mail trans­ gation ______1319 portation contracting------1275 Rules and Regulations TEXTILES OFFICE Operating-differential subsidy for bulk cargo vessels engaged in PRICE COMMISSION Notices carrying bulk raw and processed Management-Labor Textile Ad­ agricultural commodities from Rules and Regulations visory Committee; closed meet­ the U.S. to the U.S.S.R______1277 Price stabilization; reporting profit ing ------1295 margin overages______1269 Notices TRANSPORTATION DEPARTMENT Applications for operating- SECURITIES AND EXCHANGE See Coast Guard; Federal Avia­ differential subsidy contracts: tion Administration; National Albany River Transport, Inc., COMMISSION Highway Traffic Safety Admin­ et al------:______1290 istration. Montpelier Tanker C o______1291 Proposed Rule Making Moore-McCormack Lines, Inc_1291 Quantity discounts for certain TREASURY DEPARTMENT Ogden Sea Transport, Lie., et group purchases of mutual fund See Fiscal Service; Internal Reve­ a l______1292 sh ares______1284 nue Service. 1268 CONTENTS List of CFR Parts Affected

The following numerical guide is a list of the parts of each title of the Code of Federal Regulations affected by documents published in today's issue. A cumulative list of parts affected, covering the current month to date, appears following the Notices section of each issue beginning with the second issue of the month. In the last issue of the month the cumulative list will appear at the end of the issue. A cumulative guide is published separately at the e nd of each month. The guide lists the parts and sections affected by documents published since January 1, 1973. and specifies how th ey are affected.

5 CFR 12 CFR 39 CFR 213 (4 docum ents)______1269 P roposed R ules : 510______7-. 1275 520------1275 6 CFR 546______1334 530______1275 563___>.______^______1334 540------1275 300______1269 563b______— 1334 Rulings______1270 550______1275 571______1334 560------1275 5 7 0 ------1275 7 CFR 14 CFR 601------1275 907______— 1270 71______— ______1273 619------1275 73______1273 P roposed R ules : 4 0 CFR P roposed R ules: 1062-______1281 180— ______1275 73____ 1283 10 CFR P roposed R ules: 125______1362 0____ — ______1271 16 CFR 20____ :__ — ______1271 13 (2 documents)______1273 41 CFR 30 ______1______1271 17 CFR 5 B -2 ______1276 31 ______1271 5B—16 ______1276 32 ______1271 P roposed R ules: 9-7______1276 34 ____ _ 1271 9-59______1276 35 ______1272 270—1______1284 36 ______1272 43 CFR 40______- 1272 21 CFR 50______1272 135______1274 P roposed R ules: 55_____ 1272 1 3 5 b „______1273 3110— ______- ______— ___1281 70 ______1272 135c______1273 71 ______- ______1-272 135e______— 1274 46 CFR 73______1272 135g—______1274 146— ______1276 100______1273 294______1277 115______1273 3 2 A CFR 140______1273 O h .X : 50 CFR 150______;______1273 OI Reg. 1______1274 33 (3 docum ents)______1279, 1280 1269

Rules and Regulations

(5 U.S.C. secs. 3301, 3302, E.O. 10577; 3 CFR The Price Commission has consist­ Title 5— ADMINISTRATIVE 1954—58 Comp. p. 218) ently interpreted its regulations to re­ United S tates Civil S erv­ quire that the amount of the profit PERSONNEL ice Commission, margin overage is to be determined be­ [ seal] James C. Spry, fore any adjustment is made in the ac­ Chapter I— Civil Service Commission Executive Assistant to counts of a firm by entering the amount th e Commissioners. of the overage as a liability or contingent PART 213— EXCEPTED SERVICE liability. [FR Doc.73-632 Filed l-10-73;8:45 am] Treasury Department The Price Commission has received in­ quiries concerning the method by which Section 213.3305 is amended to show profit margin overages are to be reflected that one position of Secretary to the As­ PART 213— EXCEPTED SERVICE in the reports (Form PC-51) required by sistant to the Secretary for Legislative Agency for International Development §§ 300.51 and 300.52 o f the Commission’s Affairs is excepted under Schedule C. regulations. Effective on January 11,1973, subpara­ -Section 213.3368 is amended to show It is understood that. In some cases, graph (36) of paragraph (a) of § 213.3305 that the following two positions are no the use of generally accepted accounting is added as set out below. longer excepted under Schedule C: Con­ principles would require a firm which § 213.3305 Treasury Department. gressional Liaison Officer and Confiden­ has determined that its profits had ex­ tial Assistant to the Assistant Adminis­ ceeded its base period profit margin to (a) Office of the Secretary. * * * trator for Administration. make adjustments in its accounts after (36) One Secretary to the Assistant to Effective on January 11,1972, subpara­ its fiscal period has closed to reflect the the Secretary for Legislative Affairs. graph (5) of paragraph (e) is amended liability for that overage and a corre­ ***** and paragraph (f) is revoked under sponding reduction in net sales. In those (5 TX.S.C. secs. 3301, 3302, E.O. 10577; 3 CFR § 213.3368 as set out below. cases, the profit margin stated on the 1954-58 Comp. p. 218) § 213.3368 Agency for International De­ firm’s Form PC-51 would not fairly state United S tates Civil S erv­ velopm ent. the amount of the overage as a result ice Commission, ***** of its being eliminated by the adjust­ [ seal] J ames C. Spry, ment. Executive Assistant (e) Office of the Assistant Adminis­ Accordingly, the establishment of a to the Commissioners. trator for Legislative Affairs. * * * liability or contingent liability in the (5) One Congressional Liaison Officer. [FR Doc.73-630 Filed 1-10-73; 8:45 am] accounts of a firm (including any Price (f) [Revoked] Category m firm) will not eliminate the (5 U.S.C. secs. 3301, 3302, E.O. 10577; 3 CFR possible imposition of the sanctions de­ PART 213— EXCEPTED SERVICE 1954-58 Comp. p. 218) scribed in § 300.54 for a violation of the firm’s base period profit margin. Instruc­ Environmental Protection Agency United S tates Civil Serv­ tions on future editions of Form PC-51 Section 213.3318 is amended to show ice Commission, [ seal] James C. S pry, will be modified to more clearly provide that the position of Public Information for the reporting of these profit margin Officer is no longer excepted under Executive Assistant to th e Commissioners. overages by Price Category I or n firms. Schedule C. Pending the republication of modified Effective on January 11, 1973, § 213.- [FR Doc.73-633 Filed 1-10-73; 8:45 am] Form PC—51, an addition to the ex istin g 3318(c)(3) is revoked. instructions for preparation of Form (5 TJ.S.C. secs. 3301, 3302, E.O. 10577; 3 CFR PC-51 is being prescribed. 1954-58 Comp. p. 218) Since this amendment provides clari­ Title 6— ECONOMIC fication and Immediate guidance and United States Civil S erv­ information for the effective implemen­ ice Commission, tation of the price stabilization program, [seal] James C. S pry, STABILIZATION further notice and procedure thereon Executive Assistant to is impracticable and good cause exists the Commissioners. Chapter III— Price Commission for making it effective in less than 30 [FR Doc.73-631 Filed 1-10-73;8:45 am] days after publication In the F ederal PART 300— PRICE STABILIZATION R egister. (Economic Stabilization Act of 1970, as PART 213— EXCEPTED SERVICE Reporting Profit Margin Overages amended, Public Law 91-379, 84 Stat. 799; Public Law 91-558, 84 Stat. 1468; Public Law Occupational Safety and Health The purpose of this am en d m en t to Appendix n to Part 300 of the Price 92-8, 85 Stat. 13; Public Law 92-15, 85 Stat. Review Commission 38; Economic Stabilization Act Amendments Commission’s regulations (6 CFR Part of 1971, Public Law 92-210, 85 Stat. 743; E.O. Section 213.3344 is amended to show 300), is to clarify the profit m argin re­ No. 11640, 37 FR 1213, Jan. 27, 1972; Cost of that one position of Confidential Assist­ porting requirements as they apply to Living Council Order No. 4, 46 FR 20202, ant to the Chief Counsel to the Chair­ firms whose accounting procedures call Oct. 16,1971) man is excepted under Schedule C. for the establishment of a liability or In consideration of the foregoing, Ap­ Effective on January 11, 1973, para­ contingent liability to reflect profit mar­ pendix n to Part 300 of Title 6 of the graph (d) is added to § 213.3344 as set gin overages. out below. Code of Federal Regulations is amended Section 300.54 of the Price Commis­ as set forth below effective January 9, § 213.3344 Occupational Safety and sion's regulations sets forth rules with 1973. Wealth Review Commission* respect to remedial orders which the Issued in Washington, D.C., on Jan­ ***** Commission may issue in cases of profit margin violations by manufacturers, uary 9,1973. (d) One Confidential Assistant to theservice organizations, retailers, whole­ Chief Counsel to the Chairman. C. J ackson G rayson, Jr., salers, and providers of health services. Chairman, Price Commission.

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1270 RULES AND REGULATIONS

Appendix II to Part 300 o f Title 6 of year which provided for an increase to oranges grown in Arizona and desig­ the Code of Federal Regulations is reflect the CPI rise in the first 9 months nated part of California, effective under amended by inserting the following of the control year would not meet this the applicable provisions of the Agri­ clause at the end of the “Addendum to last requirement. The formula would cultural Marketing Agreement Act of Instructions for preparation of Form have to be geared to CPI increases oc­ 1937, as amended (7 U.S.C. 601-674), and PC-51” . curring after the 10th month of the upon the basis of the recommendations A ddendum to I nstructions for the control year. and information submitted by the Navel Preparation of F orm PC-51 The escalator clause negotiated in the Orange Administrative Committee, es­ * * * * * above factual situation provides for a tablished under the said amended mar­ keting agreement and order, and upon PROFIT MARGIN OVERAGE 2.7 percent increase in salary for each one point rise in the Consumer Price other available information, it is hereby If, except for the fact that the firm’s ac­ Index; at its level in October 1972 (126.6; found that the limitation of handling of counting procedures call for profit margin such Navel oranges, as hereinafter pro­ overages to be treated as a liability or con­ 1967=100), a 1-point rise in the CPI tingent liability, Part n (Summary Income would be a percentage rise of 0.78 per­ vided, will tend to effectuate the declared Report) would reflect a profit margin over­ cent, or substantially less than 2.7 per­ policy of the act. age, the firm shall attach a schedule to Form cent. Therefore, the formula does not (2) (i) The need for this section to PC-51 showing (a) the amount of that meet requirement No. 3 indicated above limit the respective quantities of Navel overage; (b) the detail computation of that and will not qualify as a generally ac­ oranges that may be marketed from Dis­ overage; and (c) the item in Part II to which cepted escalator clause for purposes of trict 1, District 2, and District 3 during that overage was charged. § 201.64(a). the ensuing week stems from the produc­ [FR Doc.73-730 Filed l-10-73;8:45 am] The agreement reached represents a tion and marketing situation confront­ general wage and salary increase which ing the Navel orange industry. Rulings— Internal Revenue Service, is subject to the 5.5 percent general (ii) The committee has submitted its Department of the Treasury wage and salary standard and the stand­ recommendation with respect to the [Pay Board Ruling 1973-1] ard sum of the percentage increases quantities of Navel oranges that should method will be used to determine the ap­ be marketed during the next succeeding ESCALATOR CLAUSES propriateness of each raise under the week. Such recommendation, designed to formula without the time weighting al­ provide equity of marketing opportunity Pay Board Ruling lowed in § 201.64(a). to handlers in all districts, resulted Facts. An independent local union has This ruling has been approved by the from consideration of the factors negotiated with several employers a General Counsel of the Pay Board. enumerated in the order. The commit­ labor contract the terms of which pro­ tee further reports that the fresh vide that there will not be an initial Dated: January 9,1973. market demand for Navel oranges has wage increase but wages will increase as L ee H. H enkel, Jr., weakened because of poor quality ship­ the cost of living rises. More specifically, Chief Counsel, ments. However, there is a demand for the terms provide for a raise of 15 cents Internal Revenue Service. good quality fruit which is in short per hour for each rise of 1 point in the supply in the markets. Prices f.o.b. the Labor Department’s Consumer Price In­ Approved: January 9,1973. week ended January 4, 1973, average dex. The amount of the increase in the Samuel R. Pierce, Jr., $3.59 a carton on 638 carloads compared index, and thus wages, is to be deter­ General Counsel, to $3.71 on 682 carloads the previous mined every 6 months. Presently;- the Department of the Treasury. week. Track and rolling supplies at 375 average salary of a covered employee is [FR Doc.73-741 Filed 1-10-73; 10:00 am] cars were down 48 cars from last week. $5.60 per hour. A 1-point rise in the Con­ (iii) Having considered the recom­ sumer Price Index will result in a 2.7- mendation and information submitted percent increase in salary pursuant to Title 7— AGRICULTURE by the committee, and other available the terms of the negotiated contract. information, the Secretary finds that the Issue. Does the above cost-of-living Chapter IX— Agricultural Marketing respective quantities of Navel oranges adjustment formula constitute a gen­ Service (Marketing Agreements and which may be handled should be fixed as erally acceptable escalator clause for Orders; Fruits, Vegetables, Nuts), hereinafter set forth. purposes of Economic Stabilization Reg­ Department of Agriculture (3) It is hereby further found that it ulations, § 201.64(a), 37 FR 24979 (1972), is impracticable and contrary to the pub­ in which case it will be entitled to the [Navel Orange Reg. 283] lic interest to give preliminary notice, special computational rules contained in engage in public rule making procedure, such section? PART 907—NAVEL ORANGES GROWN IN ARIZONA AND DESIG­ and postpone the effective date of this Ruling. No. To qualify as a generally section until 30 days after publication NATED PART OF CALIFORNIA accepted escalator clause, such clause hereof in the F ederal R egister (5 U.S.C. must meet, inter alia, the following requirements: Limitation of Handling 553) because the time intervening be­ (1) Be directly related to a rise in the This regulation fixes the quantity of tween the date when information upon cost of living sts measured by the Bu­ Califomia-Arizona Navel oranges that which this section is based became avail­ reau of Labor Statistics Consumer Price may be shipped to fresh market during able and the time this section must be­ Index for either the locale of the work the weekly regulation period January come effective in order to effectuate the force or for some broader area which 12-18, 1973. It is issued pursuant to the declared policy of the act is insufficient, includes that locale; Agricultural Marketing Agreement Act (2) Provide for a periodic review of o f 1937, as amended, and Marketing Or­ and a reasonable time is permitted, under movement in the CPI and appropriate der No. 907. The quantity of Navel the circumstances, for preparation for wage adjustments in response thereto, oranges so fixed was arrived at after such effective time; and good cause exists in accordance with a previously stated consideration of the total available sup­ for making the provisions hereof effective formula (downward adjustments do not ply of Navel oranges, the quantity cur­ as hereinafter set forth. The committee have to be specified to fulfill this cri­ rently ' available for market, the fresh held an open meeting during the current terion) ; market demand for Navel oranges, Navel (3) Cause a percentage rise in average orange prices, and the relationship of week, after giving due notice thereof, to straight-time hourly pay which does not season average returns to the parity price consider supply and market conditions exceed the percentage rise in the Con­ for Navel oranges. for Navel oranges and the need for reg­ sumer Price In dex; § 907.583 Navel Orange Regulation 283. ulation; interested persons were afforded (4) In those instances where the es­ an opportunity to submit information (a) Findings. (1) Pursuant to the mar­ calator is adopted after November 14, and views at this meeting; the recom­ 1971, be implemented prospectively. keting agreement, as amended, and Or­ Thus, for example, a formula initially der No. 907, as amended (7 CFR Part mendation and supporting information adopted in the 10th month of a control 907), regulating the handling of Navel for regulation, including its effective

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 RULES AND REGULATIONS 1271 time, are identical with the aforesaid rec­ not prohibit (1) a voluntary gift of nom­ tive upon publication in the Federal ommendation of the committee, and in­ inal value or donation in a nominal R egister. formation concerning such provisions amount made on a special occasion such Pursuant to the Atomic Energy Act and effective time has been disseminated as marriage, illness, or retirement, or o f 1954, as amended, and sections 552 among handlers of such Navel oranges; (2) a loan as described above of more and 553 o f title 5 o f the United States it is necessary, in order to effectuate the than a nominal amount where a special Code, the following amendments to Title declared policy of the act, to make this personal or business relationship is in­ 10, Chapter I, Code o f Federal Regula­ section effective during the period herein volved, with prior approval of the higher­ tions, Parts 20, 30, 31, 32, 34, 35, 36, 40, specified; and compliance with this sec­ ranking employee’s supervisor, after con­ 50, 55, 70, 71, 73, 100, 115, 140, and 150, tion will not require any special prepara­ sultation with the counselor for AEC, or are published as a document subject to tion on the part of persons subject hereto a deputy counselor, as provided in codification to be effective on January 11, which cannot be completed on or before § 0.735-3(h). A copy of such approval 1973. the effective date hereof. Such committee shall be filed as provided for in § 0.735- PART 20— STANDARDS FOR meeting was held on January 9,1973. 2 8 (e )(11). (b) Order. (1) The respective quan­ ***** PROTECTION AGAINST RADIATION tities of Navel oranges grown in Arizona 2. Section 0.735-45 o f Subpart D, Chap­ 1. Sections 20.402 (a) and (b ), 20.403 and designated part of California which (a) and '(b), and 20.405(a) are amended may be handled during the period Jan­ ter I, Title 10 of the Code of Federal Reg­ ulations is amended to read as follows: by substituting “Regulatory Operations uary 12, 1973, through January 18, 1973, Regional Office” for “Regional Com­ are hereby fixed as follows : § 0.735—45 Employee indebtedness. pliance Office” and substituting “Direc­ (1) District 1: 810,000 cartons; Except as provided in § 0.735-42(d), tor of Regulatory Operations” for “Direc­ (ii) District 2:150,000 cartons; tor, Division of Compliance.” (iii) District 3: 48,000 cartons. the AEC considers the credit affairs of its employees essentially their own concern. 2. The heading of Appendix D is (2) As used in this section, “handled,” amended by substituting “Regulatory “District 1,” “District 2,” “District 3,” However, employees are expected to con­ duct their credit affairs in a manner Operations Regional Offices” for “Com-, and “carton” have the same meaning as pliance Offices.” when used in said amended marketing which does not reflect adversely on the agreement and order. Government as their employer. The AEC will not be placed in the position of act­ (Secs. 1-19, 48 Stat. 31, as amended; 7 U.S.C. ing as a collection agency or of deter­ PART 30— RULES OF GENERAL APPLI­ 601-674) mining the validity or amount of con­ CABILITY TO LICENSING OF BY­ Dated: January 10,1973. tested debts. An employee is expected to PRODUCT MATERIAL pay each just financial obligation in a Paul A. Nicholson, proper and timely manner, especially one 3. Section 30.32(a) is amended by sub­ Deputy Director, Fruit and imposed by law such as Federal, State, or stituting “Director of Licensing” for “Di­ Vegetable Division, Agricul­ local taxes. Failure on the part of an em­ rector, Division of Materials Licensing.” tural Marketing Service. ployee without good reason to honor just 4. Section 30.55(c) is amended by sub­ [FR Doc.73-786 Filed 1-10-73; 12:60 pm] financial obligations or to make or ad­ stituting “Director of Regulatory Opera­ here to satisfactory arrangements for tions” for “Director, Division of Nuclear settlement may be cause for disciplinary Materials Safeguards” and for “Division action. For the purpose of this section, a of Nuclear Materials Safeguards.” Title 10— ATOMIC ENERGY “just financial obligation” means one acknowledged by the employee or re­ PART 31— GENERAL LICENSES FOR Chapter I— Atomic Energy duced to judgment by a court, and “in a Commission proper and timely manner” means in a BYPRODUCT MATERIAL PART 0— CONDUCT OF EMPLOYEES manner which AEC determines does not, 5. Sections 31.5(d) (1) and (5) are under the circumstances, reflect ad­ amended by substituting “Regulatory Solicitations and Indebtedness versely on the Government as his Operations Regional Office” for “Re­ The Atomic Energy Commission Is employer. gional Compliance Office.” amending Part 0 of its regulations con­ Dated this 4th day of January 1973. 6. Sections 31.6(a) and 31.11 (b) and cerning the credit affairs of its employees. (e) are amended by substituting “Direc­ Paul C. Bender, - Because these amendments relate to a tor of Licensing” for “Director, Division matter of agency management and per­ Secretary of the Commission. of Materials Licensing.” sonnel, notice of proposed rule making [FR Doc.73-575 Filed l-10-73;8:45 am] and public procedure thereon are un­ necessary. These amendments are effec­ PART 32— SPECIFIC LICENSES TO tive on January 11,1973. MISCELLANEOUS AMENDMENTS TO MANUFACTURE, DISTRIBUTE, OR Part 0 is amended as set out below; CHAPTER IMPORT EXEMPTED AND GENER­ 1. Section 0.735-42 (d) of Subpart D, The Atomic Energy Commission in ALLY LICENSED ITEMS CONTAIN­ Chapter I, Title 10 of the Code of Federal early 1972 announced m ajor organiza­ ING BYPRODUCT MATERIAL Regulations is amended to read as follows: tional changes in the regulatory staff. 7. Sections 32.12, 32.16, 32.20, 32.25 Commission regulations contain numer­ § 0.735—42 Gifts, entertainment, and ous references to the previous organiza­ (c ), 32.29(c), 32.52(a), 32.56, 32.60, and favors. 1 tional units with respect to the filing of 32.63 are amended by substituting “Di­ ***** applications and reports. rector of Licensing” for “Director, Divi­ sion of Materials Licensing.” (d) An employee shall not solicit a The amendments of Commission regu­ contribution from another employee for lations set forth below change the names of the former regulatory divisions, Re­ a gift to an official superior, make a do­ PART 34— LICENSES FOR RADIOG­ nation to an official superior, or accept a gional Compliance Offices, and District gift from an employee receiving less pay Safequards Offices to conform with the RAPHY AND RADIATION SAFETY than himself (5 U.S.C. 7351), nor shall names of the new regulatory units. REQUIREMENTS FOR RADIO- Because these amendments relate GRAPHIC OPERATIONS an employee directly or indirectly solicit solely to agency management, and minor from, accept from, offer to, or grant to matters, good cause exists for omitting 8. Section 34.25(d) is amended by sub­ an official superior or subordinate em­ notice of proposed rule making, and pub­ stituting “Director of Licensing” for “Di­ ployee a loan of more than a nominal lic procedure thereon, as unnecessary, rector, Division of Materials Licensing” amount. However, this paragraph does and for making the amendments effec­ and substituting “Regulatory Operations

No. 7—Pt. I-----2 FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1272 RULES AND REGULATIONS

Regional Office” for “Regional Compli­ rector of Licensing, U.S. Atomic Energy Com­ loss, other than normal operating loss, ance Office.” mission, Washington, D.C. 20545. of special nuclear material. 17. In § 50.55(e), subparagraphs (2) and (3) are amended, by substituting pa r t 71— p a c k a g in g o f r a d io ­ PART 35— HUMAN USES OF “Regulatory Operations Regional Office” a c t iv e MATERIAL FOR TRANSPORT BYPRODUCT MATERIAL for “Regional Compliance Office” and AND TRANSPORTATION OF RADIO­ 9. Sections 35.31(b) and (d) aresubstituting “Director of Regulatory Op­ erations” for “Director, Division of Com­ ACTIVE MATERIAL UNDER CERTAIN amended by substituting “Director of Li­ CONDITIONS censing” for “Director, Division of Ma­ pliance”, and subparagraph (4) is terials Licensing.” amended by substituting “Director of 25. Section 71.10 is amended by substi­ Regulatory Operations” for “Division of tuting “Director of Licensing” for “Direc­ Compliance”. tor, Division of Materials Licensing”. PART 36— EXPORT AND IMPORT OF 26. Section 71.61 is amended by substi­ BYPRODUCT MATERIAL PART 55— OPERATORS’ LICENSES tuting “Director of Licensing” for “Divi­ sion of Materials Licensing”. 10. Sections 36.2 (a) and (b ), 36.11, 18. Sections 55.5, 55.10(a), 55.60, and 36.22(c), and 36.24(c) are amended by the note which follows 55.60 are amended substituting “Director of Licensing” for by substituting “Director of Licensing” PART 73— PHYSICAL PROTECTION OF “Director, Division of Materials Licens­ for “Director, Division of Reactor Licens­ SPECIAL NUCLEAR MATERIAL ing” and for “Director, Division of State ing.” 27. Sections 73.5, 73.31(d), and 73.42 and Licensee Relations.” are amended by substituting “Director of pa r t 70— s p e c ia l n u c lea r Regulatory Operations” for “Director, PART 40— lic e n sin g o f s o u r c e MATERIAL Division of Nuclear Materials Safe­ guards” and for “Division of Nuclear Ma­ MATERIAL 19. Section 70.5 is amended to read as terials Safeguards” and substituting 11. Sections 40.5 and 40.23 (a) and (e) fallow s: “Regulatory Operations Regional Office” are amended by substituting “Director of § 70.5 Communications. for “District Safeguards Offices.” Licensing” for “Director, Division of 28. Appendix A of Part 73 is revised Except where otherwise specified, all to read as follows: Materials Licensing” and for “Director, communications and reports concerning Division of State and Licensee Relations”. the regulations in this part and applica­ Appendix A 12. The first sentence o f § 40.31(a) is tions filed under them should be ad­ U.S. ATOMIC ENERGY COMMISSION amended to read as follows : dressed to the Director of Licensing, U.S. REGULATORY OPERATIONS REGIONAL OFFICES § 40.31 Applications for specific li­ Atomic Energy Commission, Washington, censes. D.C. 20545. Communications, reports, and Telephone applications may be delivered in person Region and address (a) Applications for specific licenses Daytime Nights and should be filed in quadruplicate on Form at the Commission’s offices at 1717 H Holidays AEC-2, “Application for Source Ma­ Street NW., W ashington, DC; 7920 Nor­ terial License,” or on Form AEC-7, “Ap­ folk Avenue, Bethesda, MD; or at Ger­ Region I, Directorate of mantown, Md. Regulatory, Operations, plication for License to Export Byprod­ USAEC, 970 Broad St., uct or Source Material,” as appropriate, 20. The first sentence of § 70.21(a) is Newark, NJ 07102___ - ___201—045-39*0 201—645-3960 Region II, Directorate with the Director of Licensing, U.S. amended to read as follows: of Regulatory, Opera­ Atomic Energy Commission, Washing­ tions, USAEC, Suite 818, § 70.21 Filing. 230 Peachtree St. NW., ton, D.C. 20545. * * * Atlanta. GA 30303...... 404-526-4503 404-526-4503 ***** (a) Applications for licenses should beRegion in , Directorate of filed in sextuplicate, provided that 25 Regulatory, Operations, 13. Section 40.64(c) is amended by copies of an application for a license to USAEC, 799 Roosevelt substituting “Director of Regulatory Op­ Rd., Glen Ellyn, IL possess and use special nuclear material 60137...... 312-858-2660 312—739-7711 erations” for “Director, Division of in a plutonium processing and fuel Region V, Directorate of Nuclear Materials Safeguards”. Regulatory, Operations, fabrication plant shall be filed with the USAEC, 2111 Bancroft Way. Berkeley, CA 94704-415—841-5121 415—841-9244 Director of Licensing, U.S. Atomic (Ext. 655) PART 50— LICENSING OF PRODUC­ Energy Commission, Washington, D.C. 20545. * * * TION AND UTILIZATION FACILITIES For the purposes of this regulation, the geo­ * * * * * graphical areas assigned to the Regional 14. Sections 50.4, 50.30(c), and 50.59 21. Footnote 1., which follows § 70.22 Offices are as follows: are amended by substituting “Director of (b) (1) is amended by substituting “Di­ R egion I Licensing” for “Director, Division of Re­ rector of Licensing” for “Director, Divi­ actor Licensing”. Connecticut, Delaware, District of Columbia, sion of Nuclear Materials Safeguards”. Maine, Maryland, Massachusetts, New 15. The first sentence of § 50.30(a) is 22. Section 70.39(d) is amended by amended to read as follows: Hampshire, New Jersey, New York, Penn­ substituting “Director of Licensing” for sylvania, Rhode Island, and Vermont. § 50.30 Filing of applications for li­ “Director, Division of Materials Licens­ R egion II censes ; oath or affirmation. ing” . 23. Footnote 4., which follows § 70.51 Alabama, Arkansas, Florida, Georgia, Ken­ (a) Place of filing. Each application tucky, Louisiana, Mississippi, North Caro­ for a license, including whenever appro­ (c) (1) is amended by substituting "Di­ rector of Licensing” for “Director, Divi­ lina, Puerto Rico, South Carolina, Tennes­ priate a construction permit or amend­ see, Virginia, and West Virginia. ment thereof, should be filed with the sion of Nuclear Materials Safeguards”. Director of Licensing, UJ3. Atomic 24. Section 70.52 is amended to read as R egion III Energy Commission, Washington, D.C. follow s: Illinois, Indiana, Iowa, Kansas, Michigan, 20545. * * * § 70.52 Reports of accidental criticality Minnesota, Missouri, Nebraska, North Da­ * * - * * * or loss of special nuclear material. kota, Ohio, Oklahoma, South Dakota, and 16. Footnote 1 of Appendix E is Each licensee shall report immediately Wisconsin. R egion V amended to read as follows : to the Director of the appropriate Atomic Energy Commission Regulatory Opera­ Alaska, Arizona, California, Colorado, Ha­ iThe guide is available for inspection at waii, Idaho, Montana, Nevada, New Mexico, the Commission’s Public Document Room, tions Regional Office listed in Appendix Oregon, Texas, Utah, Washington, and 1717 H Street NW.. and copies may be ob­ A, by telephone, telegram, or teletype, tained by addressing a request to the Di­ any case of accidental criticality and any Wyoming.

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 RULES AND REGULATIONS 1273

PART 100— REACTOR SITE CRITERIA lished a notice of proposed rule making which would amend § 71.181 of Part 71 of 29. The note at the end o f § 100.11 Is the Federal Aviation Regulations so as Title 16— COMMERCIAL amended by substituting the words “Di­ to alter the transition area at Macomb, rector of Licensing” for “Director, Divi­ m . PRACTICES sion of Reactor Licensing”. Interested persons were given 45 days ' Chapter I— Federal Trade to submit written comments, suggestions Commission PART 115— PROCEDURES FOR RE­ or objections regarding the proposed [Docket No. 8863-o] VIEW OF CERTAIN NUCLEAR RE­ amendment. ACTORS EXEMPTED FROM LICENS­ No objections have been received and PART 13— PROHIBITED TRADE the proposed amendment is hereby ING REQUIREMENTS adopted without change and is set forth PRACTICES 30. Sections 115.6, 115.20 (a) and (c ), below. Brown Auto Stabilizer Co., and and 115.47(d) are amended by substitut­ This amendment shall be effective 0901 Charles R. Brown ing the words “Director of Licensing” for G.m.t., March 1,1973. Correction “Director, Division of Reactor Licensing”. (Sec. 307(a), Federal Aviation Act of 1958, 31. Section 115.43(c) is amended by 49 U.S.C. 1348; sec. 6 (c ), Department of In FR Doc. 72-22116 appearing on page substituting the words “Regulatory Oper­ Transportation Act, 49 U.S.C. 1655(c)) 28504 of the issue for Wednesday, De­ ations Regional Office” for “Regional cember 27, 1972, in the ninth line o f thé Compliance Office” and substituting “Di­ Issued in Des Moines, HI., on Decem­ ber 15,1972. first paragraph the reference to “ § 13.70” rector of Regulatory Operations” for should rea d “ § 13.1740” . “Director, Division of Compliance” and R . O. Ziegler, for “Division of Compliance”. Acting Director, Great Lakes Region. [Docket No. C-2320] In § 71.181 (38 FR 435), the follow ing PART 140— FINANCIAL PROTECTION transition area is amended to read: PART 13— PROHIBITED TRADE REQUIREMENTS AND INDEMNITY PRACTICES M acomb, I I I . AGREEMENTS That airspace extending upward from 700 Stark, Roschelle & Alchas, Inc., et al. 32. Section 140.5 is amended by sub­ feet above the surface within a 5-mile radius stituting “Director of Licensing” for “Di­ of Macomb Municipal Airport (latitude C orrection rector, Division of State and Licensee 40°31'11" N„ longitude 90°39T7" W .); and In FR Doc. 72-21969 appearing on page Relations”. within 3 miles each side of the 084° bearing 28281 o f the issue for Friday, Decem­ from the airport extending from the 5-mile- radius area to 8 miles east of the airport. ber 22, 1972, the follow ing should be in ­ serted after the fourth line of the first PART 150— EXEMPTIONS AND CON­ [FR Doc.73-545 Filed l-10-73;8:45 am] ordering paragraph: “Alchas, individu­ TINUED REGULATORY AUTHORITY ally and as officers o f” . IN AGREEMENT STATES UNDER [Airspace Docket No. 72-WA-64] SECTION 274 PART 73— SPECIAL USE AIRSPACE 33. Sections 150.17(c), 150.19(c), and 150.20(b) are amended by substituting Alteration of Restricted Area Title 21— FOOD AND DRUGS “Director of Regulatory Operations” for The purpose of this amendment to Chapter I— Food and Drug Adminis­ “Director, Division of Nuclear Materials Part 73 of the Federal Aviation Regu­ tration, Department of Health, Ed­ Safeguards” and for “Division of Nuclear lations is to change the using agency of ucation, and Welfare Materials Safeguards” and substituting the Sailor Creek, Idaho, Restricted Area “Regulatory Operations Regional Office” SUBCHAPTER C— DRUGS for “Regional Compliance Office”. R-3202. This change was requested by the Department of the Air Force. PART 135b— NEW ANIMAL DRUGS (Sec. 161, 68 Stat. 948; 42 U.S.C. 2201) This amendment is minor in nature FOR IMPLANTATION OR INJECTION Dated at Bethesda, Md., this 27th day and effects no substantive change in the of December 1972. regulation; therefore, notice and public PART 135c— NEW ANIMAL DRUGS IN procedure thereon are deemed unneces­ ORAL DOSAGE FORMS For the Atomic Energy Commission. sary, and good cause exists to make this L. M anning M untzing, amendment effective without regard to Ethylisobutrazine Hydrochloride Injec­ Director of Regulation. the 30-day period preceding effectiveness. tion, Veterinary, and Ethylisobutra­ IFR Doc.73-577 Filed 1-10^-73; 8:45 am] In consideration of the foregoing, Part zine Hydrochloride Tablets, Veter­ 73 of the Federal Aviation Regulations inary is amended, effective on January 11,1973, as hereinafter set forth. The Commissioner of Food and Drugs has evaluated supplemental new animal Title 14— AERONAUTICS AND In § 73.32 (38 FR 648) the Sailor Creek, drug applications for ethylisobutrazine Idaho, Restricted Area R-3202 is amended hydrochloride injection, veterinary (35- SPACE by changing the using agency from 265V), and ethylisobutrazine hydro­ “Commander, 347th Tactical Fighter chloride tablets, veterinary (11-222V), Chapter I— Federal Aviation Adminis­ Wing, Mountain Home AFB, Idaho.” to filed by Jensen-Salsbery Laboratories, tration, Department of Transportation “Commander, 366th Tactical Fighter Division of Richardson-Merrell, Inc., Wing, Mountain Home AFB, Idaho.” [Airspace Docket No. 72-GL-49] Kansas City, Mo. 64141, proposing the (Sec. 307(a), Federal Aviation Act of 1958, safe and effective use of the drugs as PART 71— DESIGNATION OF FEDERAL 49 U.S.C. 1348(a); sec. 6(c), Department of tranquilizers in dogs. The supplemental AIRWAYS, AREA LOW ROUTES, Transportation Act, 49 U.S.C. 1655(c)) applications are approved. CONTROLLED AIRSPACE, AND RE­ Issued in Washington, D.C., on Janu­ Therefore, pursuant to provisions of PORTING POINTS ary 3, 1973. the Federal Food, Drug, and Cosmetic Act (sec. 512(i), 82 Stat. 347; 21 U.S.C. Alteration of Transition Area Claude F eatherstone, 360b (i)) and under authority delegated Acting Chief, Airspace and Air On pages 20953 and 20954 o f the F ed- to the Commissioner (21 CFR 2.120), Traffic Rules Division. erm, R egister dated October 5, 1972, the Parts 135b and 135c are amended as Federal Aviation Administration pub­ [FR Doc.73-544 Filed 1-10-73; 8; 45 am] follow s:

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1274 RULES AND REGULATIONS

1. Part 135b is amended by adding the broiler chicken feed. The application is PART 135g-—TOLERANCES FOR RESI­ following new section: approved. DUES OF NEW ANIMAL DRUGS IN The Commissioner concludes that to § 13 5 b . 73 Ethylisobutrazine hydrochlo­ assure that edible tissues are safe for FOOD ride injection, veterinary. human consumption the regulations 3. Part 135g is amended by adding a (a) .Specifications. The drug is a ster­should be amended to provide safe tol­ new § 135g.84 as follow s: ile aqueous solution. Each milliliter con­ erances for residues of the drug in edible tains 50 milligrams of ethylisobutrazine tissues of chickens. § 135g.84 Bambermycins. hydrochloride. To facilitate referencing, Hoechst Tolerances are established for resi­ .(b) Sponsor. See code No. 062 in Pharmaceuticals, Inc., is being assigned dues of bambermycins in uncooked ed­ § 135.501(c) of this chapter. a code number and is placed in the list ible tissues of chickens as follows: (c) Conditions of use. (1) It is usedo f firms in § 135.501 (21 CFR 135.501). (a) In muscle tissues: 0.75 part per in dogs as a tranquilizer. Therefore, pursuant to provisions of m illion. (2) It is administered intramuscularly the Federal Food, Drug, and Cosmetic Act (b) In liver: 0.50 part per million. at a dosage level of 2 to 5 milligrams (sec. 512(ij, 82 Stat. 347; 21 U.S.C. 360b (c) In kidney, skin, and fat of chickr of ethylisobutrazine hydrochloride . per (i)) and under authority delegated to the ens: 1.00 part per million. pound of body weight for profound tran- Commissioner (21 CFR 2.120), Parts 135, Effective date. This order shall be ef­ quilization. It is administered intrave­ 135e, and 135g are amended as follows: fective on January 11,1973. nously at a dosage level of 1 to 2 milli­ grams of ethylisobutrazine hydrochloride PART 135— NEW ANIMAL DRUGS (Sec. 512(1), 82 Stat. 347; 21 U.S.C. 360b(l)) per pound of body weight to effect. Dated: January 4,1973. (3) It is not to be used in conjunction Subpart C— Sponsors of Approved with organophosphates and/or procaine Applications F red J . K in g m a , hydrochloride because phenofhiazines Acting Director, 1. Part 135 is amended in § 135.501(c) Bureau of Veterinary Medicine. may potentiate the toxicity of organo­ by adding a new code No. 090 as follows: phosphates and the activity of procaine [PR Doc.73-563 Filed 1-10-73; 8:45 am] hydrochloride. §135.501 Names, addresses, and code (4) Federal law restricts this drug to numbers of sponsors of approved use by or on the order of a licensed vet­ applications. * • * * • erinarian. Title 32A— NATIONAL DEFENSE, (c) * ♦ • 2. Part 135c is amended by adding the following new section: Code No. Firm name and address APPENDIX m • * • • • § 135c.89 Ethylisobutrazine hydrochlo­ 090______.Hoechst Pharmaceuticals, Inc., Chapter X— Office of Oil and Gas, ride tablets, veterinary. Route 202-206, Somerville, Department of the Interior (a) Specifications. Each tablet con­ N.J. 08876. [Oil Import Reg. 1 (Rev. 5), Arndt. 50] tains either 10 milligrams or 50 milli­ Ol REG. 1— OIL IMPORT REGULATION grams of ethylisobutrazine hydrochloride. PART 135e— NEW ANIMAL DRUGS (b ) Sponsor. See code No. 062 in FOR USE IN ANIMAL FEEDS Fuel Oil Imports From the § 135.501(c) of this chapter. Virgin Islands (c) Conditions of use. (1) It is ad­ 2. Part 135e is amended by adding a ministered orally to dogs as a tranquil­ new § 135e.65 as follow s: The President’s Proclamation of De­ cember 18, 1972, “ M odifying Proclam a­ izer. § 135e.65 Bambermycins. tion 3279, Relating to Imports of Petro­ (2) It is administered once daily at (a) Specifications. Bambermycins are leum and Petroleum Products”, among a dosage level of 2 to 5 milligrams of the dried fermentation residues produced other changes, added the following sen­ ethylisobutrazine hydrochloride per by the fermentation of Streptomyces tence at the end of subparagraph (4) of pound of body weight. bambergiensis, Streptomyces ghanaensis, paragraph (b) of section 3: (3) It is not to be used in conjunction Streptomyces ederensis, Streptomyces Whenever the Secretary, upon recommen­ with organophosphates and/or procaine geysiriensis, and mutants and variants of dation of the Director of the Office of Emer­ hydrochloride because phenothiazine these organisms. gency Preparedness finds that there may be may potentiate the toxicity of organo­ (b) Approvals. Premix level of 2 grams shortages in the supply of any finished prod­ phosphates and the activity of procaine of bambermycin activity per pound of uct or products in Districts I-IV which prod­ hydrochloride. premix has been granted; for sponsor ucts are deemed by the Director of the Office (4) Federal law restricts this drug to of Emergency Preparedness to be important see Code No. 090 in § 135.501(c) of this to the national security, the Secretary may use by or on the order of a licensed veter­ chapter. allocate imports of any such product or prod­ inarian. (c) Assay limits. Premix must contain ucts manufactured in the Virgin Islands in Effective date. This order shall be ef­ not less than 90 percent nor more than excess of the limitation in the preceding sen­ fective on January 11, 1973. 110 percent of labeled amount of bam­ tence for such product or products, for such bermycin activity. Finished feed must time and under such conditions as he may (Sec. 512(i), 82 Stat. 347; 21 TT.S.C. 3606b(i)) deem consistent with the purposes of this contain not less than 70 percent nor more proclamation. Dated: January 4,1973. than 130 percent of the labeled amount of bambermycin activity. The substantially colder than normal F red J. K in g m a , (d) Related tolerances. See § 135g.84 weather experienced this year to date, Acting Director, particularly in the midwest, has resulted Bureau of Veterinary Medicine. of this chapter. (e) Conditions of use. It is used as in an unexpectedly high level of natural [PR Doc.73-562 Filed 1-10-73; 8:45 am] gas curtailments and local propane and follow s: No. 2 fuel oil shortages. In view of the complex interrelation­ BAMBERMYC1NS Grams Indications per Limitations for use ships of these fuels and estimates of the The Commissioner of Food and Drugs ton increasingly, tight demand-supply situ­ has evaluated a new animal drug appli­ ation with respect to distillates in Dis­ cation (44-759V) filed by Hoechst Phar­ Bamber- 1-2 For broiler For increased rate tricts I-IV and upon the recommenda­ mycins; chickens; feed of weight gain maceuticals, Inc., Route 202-206, Somer­ continuously and improved tion o f the Director o f the Office o f Emer­ ville, N.J. 08876, proposing the safe as the sole feed efficiency; gency Preparedness, I find that there ration; may be shortages this heating season in and effective use of bambermycins in

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 RULES AND REGULATIONS 1275

Districts I-IV of No. 2 fuel oü, a product shall be valid only during the period 3. Revise the authority citations to which the Director of the Office of Emer­ January 1,1973 through May 15,1973. No read as follow s: gency Preparedness has deemed to be im­ licenses issued pursuant to this section Au t h o r it y : 5 U.S.C. 552(a), 39 U.S.C. 401, portant to the national security. may be sold, assigned, or otherwise trans­ 404, 410, 411, 2008, 5001-5605. In order to contribute to the allevia­ ferred. No. 2 fuel oil imported pursuant tion of potential supply dislocations as to an allocation and license issued under 4. Revise § 601.102(a) to read as rapidly as possible, it is not considered this section must not be further processed follow s: necessary to give notice of proposed rule in any manner, including blending or § 601.102 Applicability and coverage. making respecting this amendment, and mixing with other petroleum products, by it shall become effective immediately. mechanical means. It is intended that (a) The Postal Contracting Manual Accordingly, a new section 13A is added No. 2 burner fuel oil which is imported applies to all Postal Service procure­ to Oil Import Regulation 1 (Revision 5), pursuant to an allocation and license ments o f property and services. as amended. under this section be for use in fuel oil ***** R ogers C. B. M orton, binning equipment for the generation Secretary o f the Interior. of heat in furnaces for heating buildings or the generation of steam. Importers are PART 619— [DELETED] I concur: January 5,1973. urged to verify its ultimate use to the best 5. Delete Part 619. G. A. Lincoln, of their ability. D irectort Effective date. This document is effec­ (d) Shipments of No. 2 fuel oil madetive January 15,1973. Office of Emergency Prepared­ pursuant to this section 13A will not be ness. credited as shipments of product to meet (39 U.S.C. 401, 404, 2008, 5001-5605) § 13A Emergency finished products any other written or exising contractual R oger P . Craig, allocation. or allocation agreements made with the Deputy General Counsel. Department of the Interior. (a) For the purpose of this section, (1) (FR Doc.73-574 Filed 1-10-73; 8 :45 am] the term “No. 2 fuel oil” means a finished [PR Doc.73-604 Piled 1-8-73;2:00 pm] product which has the physical and chemical characteristics as set forth in subparagraph (1), paragraph (a) of sec­ Title 40— PROTECTION OF tion 30 of this regulation. (2) The term Title 39— POSTAL SERVICE “eligible applicant” means any person in Chapter I— U.S. Postal Service the business of selling No. 2 fuel oil in ENVIRONMENT Districts I-IV. • INCORPORATION BY REFERENCE OF Chapter I— Environmental Protection (b) (1) For the period January 1,1973 REGULATIONS GOVERNING “MAIL Agency through April 30,1973, hereafter referred TRANSPORTATION CONTRACTING” to as the “period” within the allocation SUBCHAPTER E— PESTICIDES PROGRAMS period which begins January 1,1973, No. Part 601 sets forth the regulations of 2 fuel oil which has been or is to be the Postal Service relating to the incor­ PART 180— TOLERANCES AND EX­ manufactured in the Virgin Islands may poration by reference of the Postal Con­ EMPTIONS FROM TOLERANCES FOR be imported by eligible applicants who tracting Manual. Section 601.102(a) of PESTICIDE CHEMICALS IN OR ON comply with the provisions of this that part provides as follows: “The Postal Contracting Manual applies to all Postal RAW AGRICULTURAL COMMODI­ section. TIES (2) For the “period," the Director shall Service procurements of property serv­ make an allocation of imports of No. 2 ices, except the purchase of mail trans­ Xylene fuel oil into Districts I—IV to any eligible portation and related services by contract A notice was published by the En­ applicant who certifies that such imports (see Part 619 o f this subchapter). Pro­ vironmental Protection Agency in the are required to meet obligations under visions relating to the purchase of mail F ederal R egister o f October 20, 1972 contracts with, or purchase orders from, transportation and related services by customers in Districts I-IV, and that such contract may, however, be incorporated (37 FR 22627), proposing that § 180.1001 eligible applicant, through contract of at a later date into the Postal Contract­ Exemptions from the requirements of purchase or otherwise, has the right to ing Manual and may be subject to later a tolerance of the pesticide regulations take delivery of such No. 2 fuel oil in the incorporation by reference in the Code be amended in paragraph (e) to provide Virgin Islands or elsewhere. o f Federal Regulations.” for the use of xylene as an inert ingredi­ (3) An application for allocations The Postal Service has now amended ent in pesticide formulations applied to under this section may be filed in letter its Postal Contracting Manual to include or telegraphic form during the “period.” therein provisions relating to the pur­ stored grain only. No comments or re­ .(c) (1) The Director shall process ap- chase of mail transportation and related quests for referral to an advisory com­ plications in the sequence in which they services by contract. (Notice of the mittee were received. are received and make allocations in the amendment to the Postal Contracting It is concluded that the proposal quantity which the applicant has certi­ Manual will be published separately in should be adopted. fied in accordance with paragraph (b) accordance with the provisions of 39 CFR (2) of this section. Any person making 601.105.) The purpose of this document Therefore, pursuant to provisions of application based upon the certification is to delete those provisions of Title 39 the Federal Food, Drug, and Cosmetic m this section is cautioned against mak­ which duplicate or are inconsistent with Act (sec. 408(e), 68 Stat. 514; 21 U.S.C. ing false statements in, or in connection the provisions included within the Postal 346a(e)), the authority transferred to with application filed with the Director Contracting Manual. the Administrator of the Environmental or m connection with any stated con­ Accordingly Chapter I of Title 39 is Protection Agency (35 FR 15623), and tractual commitment with his buyers, amended as follows: and is guilty of a crime, and upon con­ the authority delegated by the Adminis­ viction may be punished by fine or im­ PARTS 510-570— [DELETED] trator to the Deputy Assistant Adminis­ prisonment or both. 1. Delete all of Subchapter G consist­ trator for Pesticides Programs (36 FR (2) When an allocation has been made ing o f Parts 510, 520, 530, 540, 550, 560, 9038), § 180.1001 is amended by alpha­ to a person under this section, the Di­ and 570. rects shall issue a license or licenses betically inserting a new item in the cased on the allocation specifying the table in paragraph (c) as follows: PART 601— PROCUREMENT OF w S 2 L °f#No* 2 fuel oil which may be § 180.1001 Exemptions from the re­ imported from the Virgin Islands into * PROPERTY AND SERVICES quirement o f a tolerance. Districts I-IV. All licenses issued under 2. Revise the heading o f Part 601 to * • * • • allocations made pursuant to this section. read as set forth above. (c ) ' • •

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1276 RULES AND REGULATIONS

Inert ingredients limits Uses PART 5B-16— PROCUREMENT FORMS Subpart 9—7.50— Use of Standard The table of contents of Part 5B-16 is Clauses * * 6 • • * • • • amended to include the following new § 9—7.5004 Standard AEC clauses which Xylene meeting the In pesti- Boivent, specifications list- rade cosolventj entries: are mandatory as to text. ed in § 121.1182(b)(4) formula­ Sec. of Chapter I, Title tions for § 9—7.5004—7 Payment of interest on 21, Code of Federal grain 5B-16.901-21 Standard Form 21, (GSA contractors’ claims. Regulations. storage Overprint, May 1971), Bid * * * 4 * only. Form (Construction Con­ • * * * * * * * O tract) . (b) The clause referenced in para­ 5B-16.950—1903 GSA Form 1903, May 1971, graph (a) of this section applies to sub­ Notice to Bidder (Con­ contracts under cost-type contracts in Any person who will be adversely struction Contract). the manner the Disputes clause applies affected by the foregoing order may at to such subcontracts pursuant to § 9-59.- any time within 30 days after its date Subpart 5B—16.70— Forms for Building 003 ( j) . of publication in the F ederal R egister Service Contracts file with the Hearing Clerk, Environ­ ***** mental Protection Agency, Room 3902A, Section 5B-16.7001 is revised as 2. In Part 9-59, Administration of Fourth and M Streets SW., Waterside follow s: cost-type Contractor Procurement Ac­ Mall, Washington, D.C. 20460, written § 5B—16.7001 , Forms prescribed. tivities, § 9-59.003, Policies for cost-type objections thereto in quintuplicate. Ob­ contractor procurement, paragraph (j) jections shall show wherein the person The following GSA forms are pre­ is revised to read as follows: filing will be adversely affected by the scribed for use in procuring building services: § 9—59.003 Policies for cost-type con­ order and specify with particularity the tractor procurement. provisions of the order deemed objection­ (a) GSA Form 1467, December 1966 able and the grounds for the objections.. edition, Invitation, Bid, and Award (Con­ ***** If a hearing is requested, the objections tract for Building Services). (j) (1) First-tier subcontracts and pur­ must state the issues for the hearing. A (b) GSA Form 1467-A, September 1970 chase orders for supplies and services for hearing will be granted if the objections edition, Bidding Instructions, Terms, the AEC work, normally should include are supported by grounds legally suffi­ and Conditions (Contract for Building provisions for resolving disputes to the cient to justify the relief sought. Objec­ Services). same extent and in the same manner as tions may be accompanied by a memo­ (c) GSA Form 1468, July 1969 edition, in similar AEC direct contracts. randum or brief in support thereof. General Provisions (Contract for Build­ (2) The disputes provision referred to ing Services). in paragraph (j) (1) of this section may Effective date. This order shall become be applied to lower-tier subcontracts and effective on January 11, 1973. Note: Copies of the forms listed in §§ 5B- 16.901-21 and 5B-16.950-1903 are filed with purchase orders provided all subcon­ (Sec. 408(e), 68 Stat. 514; 21 TJ.S.C. 346a(e)) the original document. tracts and purchase orders of a higher tier are cost type. Dated; January 4,1973. (Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c); (3) A Disputes clause which can be 41 CFR 5-1.101 (c)) Edw in L. Johnson, used to carry out the policy in paragraph Acting Deputy Assistant Admin­ Effective date. This amendment is ef­ (j) (1) and (2) of this section is set forth istrator for Pesticides Pro­ fective on January 11, 1973. in § 9-7.5004-3 (b). grams. Dated: January 3, 1973. ***** [FR Doc.73-550 Filed l-10-73;8:45 am] (Sec. 161, Atomic Energy Act of 1954, as J ohn F. G aluardi, amended, .68 Stat. 948, 42 U.S.C. 2201; sec. Acting Commissioner, 205, Federal Property and Administrative Public Buildings Service. Services Act of 1949, as amended, 63 Stat. Title 41— PUBLIC CONTRACTS [FR Doc.73-407 Filed l-10-73;8:45 am] 390, 40 U.S.O. 486) Effective date. These amendments are AND PROPERTY MANAGEMENT effective on January 11,1973. Chapter 9— Atomic Energy Dated at Germantown, Md., this 4th Chapter 5B— Public Buildings Service, Commission day of January 1973. General Services Administration PART 9-7— CONTRACT CLAUSES For the U.S. Atomic Energy Commis­ MISCELLANEOUS AMENDMENTS TO sion. Subpart 9-7.50— Use of Standard CHAPTER R obert A. K ohler, Clauses Acting Director, The following revisions delete the re­ Division of Contracts. quirement for Central Office approval on PART 9-59— ADMINISTRATION OF amendments issued for projects released COST-TYPE CONTRACTOR PRO­ [FR Doc.73-576 Filed l-10-73;8:45 am] by the Central Office for bidding pur­ CUREMENT ACTIVITIES poses, and prescribe and illustrate the revised editions of GSA Forms 1467-A, Miscellaneous Amendments 1468, and 1903 and Standard Form 21 These changés are being made to (1) Title 46— SHIPPING (GSA Overprint). revise the language in § 9-7.5004-7 (b) to Chapter I— Coast Guard, PART 5B-2— PROCUREMENT BY clarify the policy that the clause regard­ ing payment of interest on contractors’ Department of Transportation FORMAL ADVERTISING claims, as set forth in FPR l-1.322(b)r [OGD 71-12D] Subpart 5B-2.2— Solicitation of Bids is to be included in all subcontracts con­ taining the Disputes clause set forth in PART 146— TRANSPORTATION OR Section 5B-2.207 is revised, as follows: § 9-7.5004-3 (b) ; and (2) revise the lan­ STORAGE OF EXPLOSIVES OR guage in § 9-59.003(j) to clarify the OTHER DANGEROUS ARTICLES OR § 5B—2.207- Amendment of invitations policy that the Disputes clause may be fo r b ids. SUBSTANCES AND COMBUSTIBLE included in lower-tier subcontracts pro­ LIQUIDS ON BOARD VESSELS Amendments regarding questions raised vided all subcontracts of a higher tier by prospective bidders shall not be issued are cost type. Prohibition of Motor Vehicles Contain­ later than 10 days before the date set 1, m Subpart 9-7.50, Use of Standard ing Gasoline in Closed Containers fo r receipt o f bids. Amendments involving wage determinations shall be issued as Clauses, § 9-7.5004-7, Payment of inter­ This amendment is to prohibit the provided in §§ 1-12.404-2 and 5B-12.- est on contractors’ claims, paragraph (bX carriage of motor vehicles and mecha­ 404-2. is revised to read as follow s: nized equipment with fuel in their tanks FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 RULES AND REGULATIONS 1277

In closed containers. Also the reference efficiently cover the open area. Stowage dition to those appearing in the Federal in § 146.21-45 dealing with gas tight of flammable liquids in a quantity in ex­ R egister on November 16, 1972 (37 F R holds will be deleted. cess of 1 ton shall not be permitted in 24349) as corrected on December 14,1972 Both these amendments are outstand­ holds or compartments that are fitted (37 FR 26601). ing issues that have not been finalized with gooseneck type vent trunk heads. Rule making involving the operating- subsequent to their publication in a no­ differential subsidy program is exempt tice of proposed rule making in the 2. By revising § 146.27 as follows: a. By adding to § 146.27-30 (c) the fol­ from the requirements of section 553 of March 20, 1971 Federal R egister (36 lowing: title 5, United States Code. A new defi­ FR 5400). Previous amendments based nition, “(7) Subsidized voyage days,” is on this notice were published in the § 146.27—30 Motor vehicles and mech­ added to existing § 294.5(c), a revision of July 21, 1972 F ederal R egister (37 FR anized equipment powered by inter­ existing § 294.10 accommodates the ef­ 14586). nal combustion engines and fueled fective date of these amendments and One comment was received on each of by flammable liquids or flammable new § 294.11, “Voyage Reporting Re­ these issues. The comment on the stow­ compressed gases. quirements,” and § 294.12 Partial pay­ age of motor vehicles containing gaso­ ***** m ent 'billings,” are hereby added to Part line in closed containers was from a (c) Conditions of acceptance and294,11tie 46, Chapter II, Code of Federal major U.S. containership operator. It stowage. * • * Regulations, as follows: was pointed out by this particular op­ erator that they had been carrying ve­ (11) Vehicles with fuel in their tanks § 294.5 Definitions. hicles safely in this manner for 10 years, may not be stowed in closed containers. they were reasonably sure other con­ ***** * * * * * tainer operators were doing it the same b . By adding to § 146.27-31 (c) the fol­ (c) Subsidised voyage. * * * way, and they had been unable to docu­ lowing: (7) Subsdized voyage days. For subsidy ment any incidents aboard vessels or § 146.27—31 Motor vehicles and mech­ payment purposes subsidized voyage days ashore to justify this change. Subse­ anized equipment powered by inter­ are divided into two categories: Port quent to commenting to the U.S. Coast nal combustion engines and fueled days and sea days. Port days are those Guard on this proposal this company by combustible liquids. subsidized days (i) from commencement carried out tests to indicate that the * * * * * of a voyage to time of departure from the atmosphere in a closed container con­ (c) Conditions of acceptance and first loading port, (ii) from time of ar­ taining vehicles with gasoline did not rival to time of departure from any sub­ contain detectable explosive vapors. stowage. * * * sequent port or ports of call, and (iii) if The Coast Guard agrees with the com­ (9) Vehicles with fuel in their tanksthe vessel is engaged in the bulk carriage ment and the test results; however, may not be stowed in closed containers. of inbound cargo, from the time of ar­ there is one overriding consideration in ***** rival at the final discharge port until this issue. There is no control over the termination of the voyage. Port days are condition of an automobile fuel system This amendment becomes effective on April 13,1973. computed for the voyage on the basis of when it is shipped; therefore, the likeli­ accumulated days and hours per voyage hood of a leak in a motor vehicle fuel (RJ3. 4472, as amended; R.S. 4417a,. as to tiie nearest full day. Sea days are those system is an unknown factor. Leaking amended; sec. 1, 19 Stat. 252, 49 Stat. 1889, subsidized days within the voyage ex­ gasoline within a closed container would sec. 6(b) (1), 80 Stat. 937; 46 TJ.S.C. 170, 391a, 49U.S.C. 1655(b)(1); 49 CFR 1.46(b)) clusive of port days and are computed be an unacceptable situation. The Coast for the voyage on the basis of accumu­ Guard considers the effort required to Dated: January 2,1973. lated days and hours per voyage to the empty the fuel tank in order to carry nearest full day. Cumulatively port days vehicles in this manner is not an undue C. R. B ender, Admiral, U.S. Coast Guard, and sea days may not exceed total ap­ hardship considering the added safety proved voyage days. it provides. Commandant. The comment on gas tight holds asked [FR Doc.73-602 Filed l-10-73;8:45 am] § 294.11 Voyage reporting requirements. that the Coast Guard consider allowing (a ) In general. In order to determine these holds for the stowage of flam­ mable liquids. This comment is being Chapter 11—Maritime Administration, compliance with the requirements of the studied by the Coast Guard at the pres­ Department of Commerce operating-differential subsidy contract ent time and a decision on this will be and this part, a voyage report is required published at a later date. For the present SUBCHAPTER C— REGULATIONS AFFECTING to be submitted to the Office of Subsidy the reference to gas tight holds in SUBSIDIZED VESSELS AND OPERATORS Administration, Maritime Administra­ § 146.21-45 will be deleted. [General Order 116, Rev. (Arndt. 1) ] tion, Washington, D.C. 20235, after ter­ In consideration of the foregoing Title mination of each approved voyage but 46 CFR Part 146 is amended as follow s: PART 294— OPERATING-DIFFEREN­ prior to or sumultaneously with the first 1. By revising § 146.21-45 to read as TIAL SUBSIDY FOR BULK CARGO billing for the partial payment as speci­ follows: fied in §§ 294.8(a) (2) and 294.12. VESSELS ENGAGED IN CARRYING (b) Contents of report. The report § 146.21—45 Ventilation. BULK RAW AND PROCESSED AGRI­ shall include the following items to the extent they are applicable to the ap­ All cargo holds in which flammable CULTURAL COMMODITIES FROM proved voyage: liquids are to be stowed and which are THE UNITED STATES TO THE UNION (1) Name of vessel. provided with means for ventilating (2) Contract number. shall, before any flammable liquid cargo OF SOVIET SOCIALIST REPUBLICS m a quantity in excess of 1 ton be stowed (3) Attach a copy of the Certificate of Miscellaneous Amendments Readiness issued by the National Cargo in such hold, have fire screens fitted at Bureau. the weather end of the vent ducts. This The following additional regulations fire screen shall consist of two layers of (4) U.S. loading port(s): Following have been adopted by the Maritime Sub­ information by port: fine brass wire screen o f at least a 20 x 20 sidy Board to govern the operating- mesh spaced not less than % inch or (i) Date and time of arrival. differential subsidy program with respect (ii) Date and time of commencement more than iy 2 inches apart. This screen of loading. may be removable, and if so fitted, means to bulk cargo vessels engaged in carry­ ing export bulk raw and processed agri­ (iii) Date and time of completion of for effectively securing the same in place loading. when in service shall be provided. Mush­ cultural commodities from the United (iv) Date and time of departure. room type heads shall have similar fire States to the Union of Soviet Socialist screens so fitted as to completely a.nd (v) Quantity, commodity and freight Republics. These regulations are in ad- rate of cargo loaded.

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1278 RULES AND REGULATIONS

(5) Foreign discharge port(s): Fol­ quent billings with respect to the sub­ standard form s 1034 and 1034a which lowing information by port: sidized voyage. can be obtained from the Superintendent of Documents, U.S. Government Printing (i) Date and time of arrival. § 294.12 Partial payment billings. (ii) Date and time of commencement Office, Washington, D.C. 20402 and is to of discharge. (a) In general. Upon termination of an be submitted in five copies, made up of (iii) Date and time of completion of approved voyage a partial payment bill­ an original supported copy (SF 1034), discharge. ing may be submitted for payment of an three supported copies and one unsup­ (iv) Date and time of departure. amount not to exceed 90 percent of the ported copy (SF 1034a). The unsup­ (v) Quantity and commodity dis­ estimated operating-differential subsidy ported copy will be returned to the payee charged. due in accordance with § 294.8(a) (2). by the Treasury Department. The follow­ (6) Foreign loading port(s): Follow­ The partial payment billing is to be pre­ ing schedules are to be used for com­ ing information by port, if applicable: pared using the voyage days reported on, puting the operating-differential subsidy (i) Date and time of arrival. or approved based upon, the Voyage Re­ due and as support of the public voucher. (ii) Date and time of commencement port submitted pursuant to § 294.11, and Each operator shall furnish his own re­ of loading. the tentative per diem subsidy amounts quired supply of these schedules. and differential percentages incorporated (iii) Date and time of completion of Schedule A—MA/MSB loading. in the operating-differential subsidy contract. (iv) Date and time of departure. (Company) (v) Quantity and commodity loaded (b) Partial payments of subsidy appli­ cable to maintenance and repairs and Calculation oi Operating-Differential Subsidy Due for by port (s) of destination. Operations in Connection with the Carriage of Bulk (7) U.S. discharge port(s): Following stores, supplies and expendable equip­ Agricultural Commodities from the United States to information regarding discharge of U.S. m ent— (1) negative differentials. I f the the Union of Soviet Socialist Republics tentative per diem subsidy amounts in­ import cargo by port, if applicable: Vessel name______33 (i) Date and time of arrival. corporated in the contract for mainte­ Voyage number______nance and repairs and/or stores, supplies Voyage dates—F rom _____ . ______To « 3 0 (ii) Date and time of commencement Total voyage days...... ___ 3 of discharge. and expendable equipment are negative, Nonsubsidized voyage days: the partial payment will be reduced by Deviation in excess of 3)$ days------.3 . 2 (iii) Date and time of completion of Idle and delays------___ 3 dlsclid>r^6 • 90 percent of the product of such nega­ Other (describe)______(iv) Quantity and commodity dis­ tive per diem amount times the number Subsidized voyage days...... —...... — ___ 3 charged. of subsidized voyage days. Subsidized (8) U.S. port o f arrival in ballast: (2) Positive differentials. Where the Subsidy payable voyage Total tentative per diem subsidy amounts in­ Tentative ( ) Final ( ) Per diem days subsidy (i) If port of arrival is the same as Wages______-______$------...... — $—— 3X3 that at which vessel loaded outbound corporated in the contract for mainte­ Subsistence ------—-— ------nance and repairs and/or stores, sup­ Vessel insurance------cargo: Date and time of arrival. Fuel: (ii) If port of arrival is different from plies and expendable equipment are posi­ At sea______.'..xa that at which vessel loaded outbound tive, the partial payment will be limited In port...... s to the lesser of (i) an amount determined Other vessel expenses------...a cargo: Estimated date and time vessel Vessel depreciation------a would have arrived at U.S. port at which by multiplying the differential percent­ Interest expense on vessel outbound cargo was loaded. age for such category of expense by the indebtedness— ------— costs incurred for such items by the op­ 1. Gross subsidy before M. & R. and S. S. & E. ' (9) If the vessel engaged in the car­ erator in any of the United States or subsidy...... -...... ---—-— x...... riage of U.S. import cargo during the sub­ 2. Partial payment—00 percent of item 1...... the Commonwealth of Puerto Rico sub­ Final payment—100 percent of item 1...... sidized voyage, the operator’s calcula­ sequent to commencement of the subsi­ tion of the number of days and hours 8. Add:a. Maintenance and ^ repairs subsidy . dized voyage or (ii) 90 percent of the (schedule A -l)__._.------that the steaming time of the inbound tentative per diem amounts for such b. Stores, supplies and expendable equip­ voyage exceeded the normal steaming category of expense times the number of ment subsidy (schedule A-2)------time required for a ballast return voyage 4. Subsidy payable before abatement------subsidized voyage days. 6. Abatement (schedule A-3)------from the last port of discharge of the (c) Reduction in subsidy payments 6. Subsidy payable after abatement...... - U.S. export cargo to the first port of 7. Less subsidy previously paid for this due to deviations, idleness, or delays. In voyage-...... -...... -...... — ...... — discharge of the U.S. import cargo. (A accordance with 1 294.5(c)(4) a subsi­ 8. Subsidy payable this voucher— __...... ------pia vimnm of 3 days and 12 hours excess is dized vessel is allowed a maximum of 3Vz- Note: Show all negative amounts in brackets. allowed for subsidy purposes.) days steaming time in excess of the (10) If the vessel engaged in the car­ normal total steaming time for a ballast Schedule A -l riage of foreign-to-foreign trade, the return voyage when engaging in the bulk date and hour that the vessel deviated carriage of U.S. import commerce. Any (Company) from the general track o f the normal bal­ time in exess of the allowable 3^ -days Computation of Maintenance and Repairs Subsidy last return voyage. steaming time will result in a reduction Vessel...... Voyage—.-...-3 (11) Number of subsidized days: of subsidy. Similarly, any time that is Total (i) Days at sea. disallowed by the Maritime Subsidy I. M. & R. subsidy based on expenses paid: a. Total M. & R. expenses (see note)...---$----33 (ii) Days in port. Board applicable to periods of idleness b. M. & R. subsidy percentage...... a (iii) Total subsidized days. or delay pursuant to § 294.5(c) (5) will c. M. & R. subsidy (aXb)...... --...... x.s (12) Pursuant to § 294.5(c) (4), the re­result in a reduction in subsidy. The re­ II. M. & R. subsidy based on per diem amount: a. M. & R. per diem amount1...... — .3 port must contain a detailed explanation quired reduction in subsidy will be ac­ b. Subsidized voyage days (schedule A )...... 3 of (i) any period of idleness or delay in complished by reducing the “total voy­ o. M. & R. subsidy (aXb)...... a d. 90 percent of lie ------a excess of 2 days more than the normal age days” on schedule A of the billing TTT. M. & R. subsidy payable: operating time in port or (ii) any exces­ format by the excess deviation time or Partial—Limited to the lesser amount on Ic or lid ...... - - --3 sive delay at sea. unallowable period of idleness or delay. Final—Limited to the lesser amount on Ic The Voyage Report shall be submitted (d) Reduction in subsidy payments o rllc — ...... A» .'.3X3 in duplicate and certified as correct by applicable to abatements. The total sub­ * Show negative per diem amounts in brackets. an official of the subsidized company. sidy determined as above will be reduced 2 Enter on line 8a Schedule A. by the amount of the abatement calcu­ Note: For purpose of supplemental partial payment (c) Approval of voyage days. After re­ or final payment of ODS on M. & R. expenses covering view, the operator will be notified by let­ lated pursuant to § 294.6(e). the 6-year period following the commencement of this ter of the approved voyage days, in port (e) Forms. The partial payment bill­ voyage (5 294.8(b)(2) (ii)) the cumulative M; & B j and at sea, for use in preparing subse­ ing is to be prepared on a public voucher, expenses should be shown on line la.

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY IT , 1973 RULES AND REGULATIONS 1279

Schedule A S Referring to the public voucher dated___ ings will be prepared and submitted in ______, covering (vessel name) (Company) the same manner as the initial partial ______on a voyage which payment billing. Computation of Stores, Supplies and Expendable Equip­ commenced ______and termi­ ment Subsidy nated ______and attached, In order to accommodate the effective submitted by said Operator concurrently date of the foregoing amendments, Vessel...... -...... Voyage-—.—. Total herewith for a payment on account in the § 294.10 is revised to read as follows: I. S.S. & E. subsidy based on expenses paid: sum o f ______under said Agree­ a. Total S.S. & E. expenses (see note). . . $...... ment, I further depose and say that to the §294.10 Effective period. b. S.S. & E. subsidy percentage...... best of my knowledge and belief, the Operator c. S.S. & E. subsidy (aXb)...... $— ... The provisions of this part, except II. S.S. & E. subsidy based on per diem amount: has fully complied with the terms and con­ §§ 294.5(c) (7 ), 294.11, and 294.12 shall a. S.S. & E. per diem amount *__...... $------ditions of said Agreement and applicable be effective on October 21,1972. The pro­ b. Subsidized voyage days (schedule A ) ...... orders, regulations, rulings and provisions c. S.S. & E. subsidy (aXb)— ...... -...... of the Merchant Marine Act, 1936, as visions of §§ 294.5(c) (7 ), 294.11, and d. 90 percent of lie ...... $------294.12 shall be effective January 2, 1973. III. S.S. & E. subsidy payable: amended, and is entitled under the provi­ Partial—Limited to the lesser amount on sions of said Agreement and orders, regula­ The provisions of this part shall termi­ Ic or lid ...... ; ...... tions and rulings applicable thereto, to the nate on June 30, 1973, except that they Final—Limited to the lesser amount on Ic amount of the payment on account re­ shall continue in effect for (a) the sub­ or lie...... — ...... $a...... - quested; and further depose and say that i Show negative per diem amounts in brackets. sidized voyages in progress on that date, the vessel named in the attached schedules and (b) the purposes of § 294.8(b) . a Enter on line 3b Schedule A. was in authorized service for the voyage on Note: For purpose of supplemental partial payment or which the payment on account is requested To conform with the foregoing amend­ final payment of ODS on S.S. & E. expenses covering the 5 year period following the commencement of this and has not included in the calculations of ments, the section headings index is voyage (§ 294.8(b) (2) (ii)) the cumulative S.S. & E. ex­ the amount of subsidy claimed in the at­ amended to add the following: penses should be shown on line la. tached voucher any costs of a character that the Maritime Administration, or Secretary 294.11 Voyage reporting requirements. of Commerce, acting by and through the 294.12 Partial payment billings. Schedule A-3 Maritime Subsidy Board, or any predecessor Note: The reporting requirements con­ or successor, had advised the Operator to be (Company) tained herein have been approved by the Of­ ineligible to be so included, or any costs fice of Management and Budget in accord­ Computation of Abatement collectible from insurance, or from any other ance with the Federal Reports Act of 1942. source; and further depose and say that Vessel...... Voyage___ Current market charter rate per ton— ______$. during the course of this voyage the vessel Dated: January 3, 1973. Add 10 percent premium...... named did not carry (1) any cargo in the Fixture rate...... domestic commerce of the United States; or By order of the Assistant Secretary of Less average of market charter rates (for the last (2) any U.S. preference cargo, including that Commerce for Maritime Affairs and the 3 years)______...... «8.05 Difference.i...... $. covered by 10 U.S.C. 2631, 46 U.S.C. 1241 and Maritime Subsidy Board. Abatement of subsidy per ton of cargo carried: 15 U.S.C. 616a; or (3) any other commercial Abatement attributable to the premium: cargo simultaneously with the export bulk James S. D awson, Jr., Gross premium per ton______raw and processed agricultural commodities Secretary, Maritime Administration. Less commissions at—...... being carried to the U.S.S.R., except equip­ Net revenue per ton______[FR Doc.73-416 Filed 1-10-73;8:45 am] Abatement percentage. ______100 ment which may be needed to facilitate un­ Abatement per ton...... $. loading of such agricultural commodities Abatement attributable to the excess of the current market charter rate over the Payment by the Maritime Administration average of market charter rates for the last of all or part of the amount claimed herein 3 years: shall not be construed as approval as the Excess of $0.95 or less______correctness of the amount stated to have Title 50— WILDLIFE AND Less commissions at —______Net revenue pei ton.______been due, nor a waiver of any right or remedy Abatement percentage______;______0 the Maritime Administration, or Secretary FISHERIES Abatement per ton...... $ -0- of Commerce, acting by and through the Excess between $0.95 and $1.95...... Chapter I— Bureau of Sport Fisheries Less commissions at —...... Maritime Subsidy Board, or any predecessor Net revenue per ton...... or successor, may have under the terms of and Wildlife, Fish and Wildlife Abatement percentage______50 said Agreement, or otherwise. Abatement per ton______$. Service, Department of the Interior Excess over $1.95______...... I further depose and say that this affidavit Less commissions at—______is made for and on behalf and at the direc­ PART 33— SPORT FISHING Net revenue per ton...... ——. ______tion of the Operator for the purpose of in­ Abatement percentage___ ..'______75 ducing the Maritime Administration to make Tamarac National Wildlife Refuge, Abatement per ton.______$. Total abatement of subsidy per ton of a payment on account pursuant to the pro­ Minn. cargocarried...... $ (a) visions of the aforesaid Operating-Differen­ Abatement of Subsidy: tial Subsidy Agreement. The following special regulations are Total tons of grain carried...... issued and are effective on January 11, Abatement, per ton...... $ (a) Abatement of subsidy____;...... $ (*) Subscribed and sworn to before me, a 1973. Notary Public, in and for the aforesaid 1 For U.S. Gulf port to Soviet Bloc sea port. § 33.5 Special regulations; sport fish­ * Enter on line 5 of Schedule A. County and State, th is______day o f ______19------My commission expires______ing; for individual wildlife refuge (f) Operator’s affidavit. An operator’s areas. affidavit, substantially in the form shown Notary Public M innesota below is to be submitted with each billing. (g) Submission of partial payment TAMARAC NATIONAL WILDLIFE REFUGE A ffidavit billing. The partial payment billing is to Sport fishing on the Tamarac National be submitted to the Maritime Adminis­ State of______Wildlife Refuge, Rochert, Minn., is per- City of______tration, Office of Budget and Accounts, mited from January 1, 1973, through County/Parish of. W ashington, D.C. 20235 for processing December 31, 1973, and shall be in ac­ I, ------being duly sworn, and payment. cordance with all applicable State fishing depose and say, that l a m ______(h) Supplemental partial payment laws and refuge regulations. Areas open o f ------(herein referred billing. Supplemental partial payment for fishing com prise 13,675 acres and to as the “Operator” ) , and as such am fa­ billings for maintenance and repairs and are designated on a map available at the miliar with (a) the provisions of the store supplies and expendable equipment Operating-Differential Subsidy Agreement, refuge headquarters and from the office Contract No------dated as of costs incurred by the operator in any of of the Regional Director, Bureau of Sport ------> to which the Operator the United States or the Commonwealth Fisheries and Wildlife, Federal Building, is a party; and (b) the operation of the ves­ of Puerto Rico subsequent to the prepa­ Fort Snelling, Twin Cities, Minn. 55111. sels) covered by said Agreement; and (c) ration of the initial partial payment bill­ Refuge waters open to fishing include the accounts, books, records, and disburse­ ing may be submitted not more fre­ Wauboose, Two Island, Lost and Upper ments of the Operator relating to such quently than once every 30 calendar operation. Egg Lakes plus all lakes south of the days. Supplemental partial payment bill­ “Governor’s Consent Line.’’ Fishing in

No. 7—Pt. I- — 3 FEDERAI REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1280 RULES AND REGULATIONS the Ottertail River at the bridge on 1973 on M artin’s Lake, Lake 16, Pools that portion of Water Management Unit County Road 26 is limited, as posted by A, B, C, D, G, and H ; and from M arch 15, No. 10, designated by signs as open to signs, to 50 yards upstream and 100 1973 through September 14,1973 on Lake fishing and those portions of Cedar Creek yards downstream from the bridge. 17, P ool J , and the Black Creek Bridge Dams 1 and 2 designated by signs as Hie provisions of this special regula­ areas on Wire Road, State Road 33, State open to fishing. These open areas com­ tion supplement the regulations which Road 145, and ILS. Highway 1, as posted. prising a total of about 265 acres are govern fishing on wildlife refuge areas (2) fishing permited from official delineated on maps available at the Ref­ generally, which are set forth in Title 50, local sunrise until one-half hour after uge Headquarters and from the office of Part 33, and are effective through De­ official local sunset. the Area Manager, Bureau of Sport Fish­ cember 31, 1973. (3) Boats with electric motors per­ eries and Wildlife, Federal Building, mitted only in Lake Bee, Lake 16, Lake 17, Pierre, 5 . Dak. 57501. Omer N. S w e n s o n , Refuge Manager, Tamarac Na­ and Martin’s Lake. Other type motors Sport fishing shall be in accordance tional Wildlife Refuge, Roch- prohibited. The other areas are open only With all applicable State regulations, sub­ for bank fishing. ject to the following special conditions: ert, Minn. (4) Alcoholic beverages prohibited. (1) Hie open season for sport fishing J anuary 4, 1973. 15) All boats and fishermen must re­ on the Little White River Recreation [FR Doc.73-595 Filed 1-10-7S;8:45 am] main at least 30 feet away from wood Area extends from January 1 through duck nesting boxes or goose nesting areas. December 31, 1973, inclusive; daylight Nesting areas in Martin’s Lake are closed hours only. and posted with closed area signs. (2) H ie open season for winter sport PART 33— SPORT FISHING The provisions of this special regula­ fishing cm Water Management Unit No. Carolina Sandhills National Wildlife tion supplement the regulations which 10 extends from January 1 through govern fishing on wildlife refuge areas February 28, 1973 inclusive; daylight Refuge, S.C. generally which are set forth in Title 50, hours only. Hie following special regulations are Code of Federal Regulations, Part 33, (3) The open season for sport fishing furnished and are effective on January 1, and are effective through December 31, on Cedar Creek Dams No. 1 and 2 ex­ 1973. 1973. tends from July 1 through September 15, C. Edward C arlson, 1973. § 33.5 Special regulations; sport fish­ Regional Director, Bureau o f (4) Hie use of motorized vehicles on ing; for individual wildlife refuge Sport Fisheries and W ildlife. ice is prohibited. areas. (5) The use o f boats on W ater Manage­ J anuary 3, 1973. South C arolina ment Unit No. 10 and on Cedar Creek is [FR Doc.78-557 Filed l-10-78;«:45 am] prohibited. CAROLINA SANDHILLS NATIONAL WILDLIFE (6) The use of live minnows as bait REFUGE on Cedar Creek Dams is prohibited. Sport fishing on the Carolina Sandhills PART 33— SPORT FISHING (7) Public fishing on Lacreek National National Wildlife Refuge, McBee, S.C., is Wildlife Refuge may be closed whenever permitted only on the areas designated Lacreek National Wildlife Refuge, the access roads are temporarily closed or by signs as open to fishing. These open S. Dak. whenever refuge wildlife needs further areas, comprising 135 acres, are delin­ H ie following special regulation is Is­ protection. eated on a map available at the refuge sued and is effective on January 11,1973. The provision of these special regula­ headquarters and from the office of the tions supplement the regulations which Regional Director, Bureau of Sport Fish­ § 33.5 Special regulation; sport fish­ govern fishing on Wildlife Refuge Areas, eries and Wildlife, Peachtree-Seventh ing; For individual wildlife refuge generally, which are set forth in Htle Building, Atlanta, Ga. 30323. Sport fish­ areas. SD, Part 33 and are effective through ing shall be in accordance with all ap­ South D akota December 31, 1973. plicable State regulations except the fol­ L A C R E E K national wildlife refuge H arold H. B urgess, lowing special conditions: Refuge Manager, Lacreek Na­ (1) Hie sport fishing season on the Public sport fishing on South Dakota Lacreek National Wildlife Refuge, Mar­ tional Wildlife Refuge, Mar­ refuge extends from January 1, 1973 tin, S. Dale. through December 31,1973 on Lake Bee; tin, S. Dak. 57551 is permitted only on from March 15,1973 through October 15, the Little White River Recreation Area, [FR Doc.73-594 Filed 1-10-73;8:45 am]

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, .JANUARY 11, 1973 1281 Proposed Rule Making

§ 3112.4-1 Rental payment. agreement and to the order as amended, DEPARTMENT OF THE INTERIOR A lease will be issued in the name of were formulated, was conducted at Bridgeton, Mo., on November 1, 1972, Bureau of Land Management the successful drawee shall have fifteen (15) days from the date of receipt of pursuant to notice thereof which was [ 43'CFR Part 31101 notification of the issuance of the lease issued October 10, 1972 (37 FR 21641). to tender the first year’s rental. Failure The material issue on the record of the SIMULTANEOUS OFFERS to tender the rental within the time al­ hearing relates to reducing the location lowed will result in the automatic can­ adjustment in Zone n of the marketing Noncompetitive Leases; Oil and Gas area. Leasing cellation of the lease. The unpaid rental will remain a debt owed to the United F indings and Conclusions Pursuant to the authority vested in States and may be collected by any The following findings and conclusions the Secretary of the Interior by the Act means available to the United States on the material issues are based on evi­ of February 25, 1920, as amended (43 for the collection of unpaid debts. dence presented at the hearing and the U.S.C. 181 et seq.), and Revised Statute R ogers C. B . M orton, record thereof: 2478 (43 U.S.C. 1201), it is proposed to Secretary of the Interior. * The plus location adjustment appli­ amend 43 CFR Subpart 3112 as set forth cable to the Class I price and uniform below. January 4,1973. price at a plant in Zone H (the southeast­ The purpose of the amendment is (a) [FR Doc.73-596 Filed 1-10-73;8:45 am] ern Missouri counties of Cape Girardeau, to clarify the regulation by specifying Bollinger, St. Francois, Perry, and Ste. that an applicant may file only one lease Genevieve) should be reduced from 15 application on any parcel offered under cents to 7 cents. the simultaneous oil and gas leasing pro­ The hearing notice proposal was sub­ cedures and (b) to eliminate the require­ DEPARTMENT OF AGRICULTURE mitted by a handler at Cape Girardeau ment that advance rental must be sub­ who operates the only regulated plant in mitted with simultaneous lease offers. Agricultural Marketing Service Zone II. He proposed to eliminate the In accordance with the Department’s present plus 15-cent location adjustment, policy on public participation in rule 17 CFR Part 1062 1 claiming that it places him at a disad­ making (36 FR 8336), interested parties [Docket No. AO 10-A46] vantage in competing for sales with those may submit written comments, sugges­ handlers under the St. Louis-Ozarks tions, or objections with respect to the MILK IN THE ST. LOUIS-OZARKS order whose Class I price is not subject proposed rules to the Director (210), Bu­ MARKETING AREA to a plus location adjustment. Also, he reau of Land Management, Washington, testified .that his producers, even with­ D.C. 20240 until February 9,1973. Notice of Recommended Decision and out the plus 15-cent location adjustment, Copies of comments, suggestions, or Opportunity To File Written Excep­ still would realize a better return than objections made pursuant to this notice tions on Proposed Amendments to they could obtain by delivering their milk will be available for public inspection in Tentative Marketing Agreement a greater distance to plants in St. Louis. the Office of Information, Bureau of and to Order There was significant opposition at the Land Management, Room 5643, Interior hearing to removing the 15-cent location Building, Washington, D.C., during regu­ Notice is hereby given of the filing with adjustment. Operators of regulated lar business hours (7:45 a.m.-4:15 p.m.). the Hearing Clerk of this recommended plants under the Memphis and Central decision with respect to proposed amend­ Subpart 3112— Simultaneous Offers Arkansas orders, who compete for sales ments to the tentative marketing agree­ with the Cape Girardeau handler in Subpart 3112 o f Chapter n is amended ment and order regulating the handling southeastern Missouri and in the Mem­ as follows: of milk in the St. Louis-Ozarks market­ phis area, claimed that removal of the 1. Subparagraphs (1), (2), and (3) ing area. plus 15-cent adjustment in Zone H would of paragraph (a) of § 3112.2-1 are Interested parties may file written ex­ misalign the Class I price applicable at. deleted and a new paragraph (b) ceptions to this decision with the Hear­ the Cape Girardeau location with the is added as follows: ing Clerk, U.S. Department of Agricul­ Class I prices under other orders. §3112.2—1 Offer to lease. ture, Washington, D.C. 20250, by Janu­ Spokesmen for a cooperative repre­ ary 26, 1973. The exceptions should be (a) * * * senting a majority of the producers un­ filed in quadruplicate. All written sub­ der the Memphis and Central Arkansas (1)—(3) [Deleted] missions made pursuant to this notice orders contended that removal of the (b) Only one complete leasing unit, will be made available for public inspec­ plus 15-cent location adjustment would identified by parcel number, may be in­ tion at the office of the Hearing Clerk jeopardize the supply of the Cape cluded in one entry card. Lands not on during regular business hours (7 CFR Girardeau handler, because Cape Gi­ the posted list may not be included. An 1 .2 7 (b )). rardeau area producers would ship in­ offeror (applicant) is permitted to file The above notice of filing of the de­ stead to nearby plants under the other only one offer to lease (entry card) for cision and of opportunity to file excep­ orders where they could realize a higher each numbered parcel on the posted list. tions thereto is issued pursuant to the return for their deliveries. Submission of more than one entry card provisions of the Agricultural Marketing A Paducah order handler and the prin­ by or on behalf of the offeror for any Agreement Act o f 1937, as amended (7 cipal cooperative under that order also parcel on the posted list will result in U.S.C. 601 et seq.), and the applicable opposed removing the plus 15-cent loca­ the disqualification of all offers submit­ rules of practice and procedure govern­ tion adjustment at Cape Girdardeau. ted by that applicant for the drawing to ing the formulation of marketing agree­ They claimed that it would give the Cape ments and marketing orders (7 CFR Girardeau handler an advantage over be held for that particular pared. Only Part 900). Paducah handlers in their common sales one entry card will be drawn for each P reliminary S tatement areas and would cause an inappropriate unit. alignment of prices between the two The hearing on the record of which 2. Section 3112.4-1 is revised to read orders. as follows: the proposed amendments, as hereinafter A major cooperative under the St. set forth, to the tentative marketing Louis-Ozarks order represents all but

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1282 PROPOSED RULE MAKING one of the producers supplying the Cape milk price). The St. Louis-Ozarks Class I to Paragould would be significantly Girardeau handler. It took the position differential of $1.60 is applicable in the more than if the milk were delivered to that any change in location pricing re­ St. Louis metropolitan area, the principal St. Louis. Also, the higher blend price sulting from the hearing should be di­ population center under the order. With under the Central Arkansas order at the rected to achieving comparable Class I the plus 15-cent location adjustment, the Paragould plant could reasonably be ex­ prices at Cape Girardeau under both the applicable Class I differential at Cape Gi­ pected to return to such producers more St. Louis-Ozarks and Memphis orders. rardeau is $1.75. Under both the Mem­ than they would realize at Cape Girar­ Its spokesman also stated that the Class I phis and Central Arkansas orders the deau after a 15-cent reduction, as was price applicable in Zone II should be at Class I differential (over the same basic proposed. Consequently, there can be no a level that would price neither the Cape form ula price) is $1.94. strong presumption that such producers Girardeau handler nor handlers .under The Class I differential applicable at would gravitate to the lowest-priced out­ the other nearby orders at a competi­ the Cape Girardeau plant, if regulated lets in the region. tive disadvantage with the other. by the Memphis order, would be $1.67. It was concluded in a previous decision A cooperative whose members ship to This results from subtracting from the on the St. Louis-Ozarks order that price St. Louis-Ozarks regulated plants, and $1.94 Class I differential the 27-cent lo­ alignment among regulated markets that also operates a distributing plant cation adjustment that applies at a plant where intermarket handler competition regulated by thé southern Illinois order, 175 miles from Memphis. In effect, if the occurs is an important factor to be con­ similarly opposed eliminating the plus Cape Girardeau plant were regulated by sidered by the Secretary in his efforts to 15-cent location adjustment. Its spokes­ the Memphis order, its Class I price achieve market stability for producers man proposed, however, to reduce the would be 8 cents less ($1.67 versus $1.75) under a given order and reasonable location adjustment 7 or 8 cents, stating than is now provided under the St. Louis- market allocation of available milk sup­ that such a reduction would more ap­ Ozarks order. plies where market milksheds tend to propriately align the Class I price at Cape Girardeau, which is near the overlap. These intermarket relationships Cape Girardeau with the Southern Illi­ main north-south highway between St. involving St. Louis-Ozarks with Mem­ nois order Class I price. Louis and Memphis, is about 175 miles phis, Central Arkansas and Paducah have Besides his distribution in Zone n of from Memphis. In view of relatively been referred to herein above. the St. Louis-Ozarks marketing area, small differences between the plant’s The primary problem of market price the Cape Girardeau handler proposing volumes of sales under the two orders in alignment on this record relates to the the price reduction sells in the Memphis recent months, there is the possibility St. Louis-Ozarks-Memphis relationship. marketing area, in the Missouri rportion that at least at times it could become a The Cape Girardeau handler, as pre­ of the Paducah marketing area, and in fully regulated plant under the Memphis viously indicated, sells approximately as several counties in southeastern Missouri order. much milk in the Memphis marketing that are not in any Federal order mar­ Paragould is about 85 miles northwest area as in his home market at Cape keting area. His sales in the Paducah o f Memphis and 148 miles south o f Cape Girardeau. marketing area are, however, not a sig­ Girardeau. The Class I price differential The Class I price relationship between nificant proportion of his total Class I at the Paragould location under the Cen­ this order and the Memphis order has distribution or of the total Class I sales tral Arkansas order is $1.805, or 15 cents changed significantly since Zone n was in that marketing area. higher than the price that would be added to the marketing area. From Feb­ Currently, Class I distribution from applicable under such order for a plant ruary 1965 through July 1968 the Mem­ the Cape Girardeau plant in the Mem­ regulated thereby and located at Cape phis Class I price exceeded the St. Louis phis marketing area is only slightly less Girardeau. A principal competitor of the Zone II Class I price an average of 61 than its sales in the St. Louis-Ozarks Cape Girardeau handler for sales in cents. Since July 1968 the Memphis marketing area. In fact, in some months southeastern Missouri is a handler at Class I price has been 19 cents more than (but not for 3 consecutive months) the Paragould, Arkansas, regulated by the the Zone n Class I price in each month. plant's sales in the Memphis marketing Central Arkansas order. When Zone n was added to the mar­ area have been more than in the St. The Class I price in the Paducah keting area, the existing differences be­ Louis-Ozarks marketing area. Both or­ marketing area is 10 cents higher than tween the monthly Class I price under ders specify that a plant’s distribution at Cape Girardeau. Paducah, the princi­ the St. Louis and Memphis orders was in an other order marketing area must pal city in the Paducah marketing area, a matter considered in establishing the exceed those in the order under which it is about 70 miles southeast of Cape plus 15-cent location adjustment. The is currently regulated for 3 consecutive Girardeau. While the Cape Girardeau revised basis of pricing at Cape months before it may be regulated by handler has no Class I distribution in the Girardeau herein provided gives recog­ the other order. city of Paducah, he has limited com­ nition to the current relationship of The Cape Girardeau plant has been a petition for sales with handlers under prices in the St. Louis-Ozarks and Mem­ fully regulated plant under the St. Louis- that order in the southeastern Missouri phis orders. Ozarks order (or its predecessor, the St. counties of the Paducah marketing area. The handler competition between these Louis order) since February 1,1965. The Although the Cape Girardeau handler markets calls for a close price alinement plus 15-cent location adjustment at Cape competes for sales with St. Louis handlers for the purposes described above. The Girardeau has been effective since Feb­ in the Cape Girardeau vicinity, he has plus location adjustment of 7 cents pro­ ruary 1, 1965, when the five counties in no distribution of his own in the St. Louis posed herein for Cape Girardeau will Zone n were added to the marketing metropolitan area. Neither does he com­ promote orderly marketing by providing area of the St. Louis order (which be­ pete for sales with handlers regulated a Class I price at Cape Girardeau equiva­ came the St. Louis-Ozarks order Octo­ under the nearby Southern Illinois mar­ lent to that prevailing for the same loca­ ber 1, 1968). The decision of the Assist­ keting area, in or outside such area. - tion under the Memphis order. ant Secretary on November 5, 1964 (28 The alternatives available to producers It was found further in a prior deci­ FR 15130), concluded that the plus 15- delivering their milk to the Cape Girar­ sion on the St. Louis-Ozarks order that cent adjustment in Zone n was neces­ deau plant are not limited to plants lo­ the greater the distance that an order sary to insure an adequate supply for cated in St. Louis. The economic value of market is situated geographically from plants in such area and to improve the their milk may be expected to be more the heavy production region of the coun­ alignment of prices among orders regu­ affected by the best of their opportunities try, the higher the Class I price tends lating com peting handlers. pricewise than by their lowest-priced al­ to be. For the St. Louis-Ozarks market The St. Louis-Ozarks Class I price ternative outlets. The Paragould, Ark., and other markets to the south of St. and those in the nearby Federal order plant is an outlet for additional quanti­ Louis-Ozarks, the Chicago milkshed is markets are computed by adding stated ties of milk on a direct-delivery basis. The Cape Girardeau producers are situ­ an Important alternative source of sup­ amounts, commonly referred to as Class ply when outside milk is needed for I differentials, to the basic formula price ated to take advantage of tills outlet. The (Minnesota-Wisconsin manufacturing return to such producers after the haul fluid use.

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 PROPOSED RULE MAKING 1283

A basic reason for this is that local reach such conclusions are denied for the supplies for those markets farther re­ reasons previously stated in this decision. DEPARTMENT OF moved from the Chicago milkshed tend to be less adequate for their year-round G eneral F indings TRANSPORTATION needs than those nearer the Chicago The findings and determinations here­ production area. In 1971, for example, inafter set forth are supplementary and Federal Aviation Administration the Class I utilization of producer deliv­ in addition to the findings and deter­ [14 CFR Part 73 ] eries under the Memphis, central Ar­ minations previously made in connection kansas and Paducah orders was 85 per­ with the issuance of the aforesaid order [Airspace Docket No. 72-SW-80] cent, 89 percent, and 74 percent, respec­ and of the previously issued amendments tively. Under the St. Louis-Ozarks and thereto; and all of said previous findings TEMPORARY RESTRICTED AREA Southern Illinois orders, Class I utiliza­ and determinations are hereby ratified Proposed Designation tion Of producer receipts was 64 percent and affirmed, except insofar as such find­ and 60 percent, respectively, for the ings and determinations may be in con­ The Federal Aviation Administration same period. These conditions are re­ flict with the findings and determinations (FAA) is considering an amendment to flected in the relative prices of the set forth herein. Part 73 of the Federal Aviation Regula­ Memphis, central Arkansas and Paducah (a) The tentative marketing agree­ tions which would designate a temporary markets. The Memphis, central Arkansas, ment and the order, as hereby proposed joint-use restricted area near Killeen, and Paducah Class I prices are 34 cents, to be amended, and all of the terms and Tex. 34 cents, and 25 cents, respectively, more conditions thereof, will tend to effec­ Interested persons are invited to par­ than the Zone I Class I price in the St. tuate the declared policy of the Act; ticipate in the proposed rule making by Louis-Ozarks order. submitting such written data, views or (b) The parity prices of milk as deter­ arguments as they may desire. Communi­ Since Cape Girardeau is about 65 mined pursuant to section 2 of the Act miles farther from Chicago than St. cations should identify the , airspace are not reasonable in view of the price of docket number and be submitted in trip­ Louis proper, the 7-cent plus adjustment feeds, available supplies of feeds, and adopted is reasonable in respect of the other economic conditions which affect licate to the Director, Southwest Region, greater distance, and consequent cost of market supply and demand for milk in Attention: Chief, Air Traffic Division, delivery, to such location from the basic the marketing area, and the minimum Federal Aviation Administration, Post source of alternative supplies. prices specified in the tentative market­ Office Box 1689, Fort W orth, T X 76101. Both the proponent Cape Girardeau ing agreement and the order, as hereby All communications received by Febru­ handler and a Paducah order handler proposed to be amended, are such prices ary 12, 1973, will be considered before contended that there is misalignment of as will reflect the aforesaid factors, in­ action is taken on the proposed amend­ prices between the Paducah order and sure a sufficient quantity of pure and ment. The proposal contained in this St. Louis-Ozarks order at Cape Girar­ wholesome milk, and be in the public notice may be changed in the light of deau, primarily because the Paducah interest; and comments received. Class I price is too high relative to the An official docket will be available for Class I price under the St. Louis-Ozarks (c) The tentative marketing agreement examination by interested persons at order. The level of the Paducah price and the order, as hereby proposed to be the Federal Aviation Administration, Of­ was not, of course, an issue at this hear­ amended, will regulate the handling of fice of the General Counsel, Attention: ing. However, a proposal to reduce the milk in the same manner as, and will be Rules Docket, 800 Independence Avenue Paducah Class I price 15 cents was con­ applicable only to persons in the respec­ SW., Washington, DC 20591. An informal sidered at a hearing held in Paducah tive classes of industrial and commercial docket also will be available for examina­ December 12,1972 (37 PR 24760). Official activity specified in, a marketing agree­ ment upon which a hearing has been tion at the office of the Regional Air notice is here taken of the fact of that Traffic Division Chief. hearing. If an adjustment in the Class held. The Air Force has requested the es­ I price differential of the Paducah order R ecommended M arketing A greement tablishment of a temporary joint-use re­ is warranted, the appropriate action can and O rder A mending the O rder stricted area in the vicinity of Killeen, be taken on the basis of that hearing. The recommended marketing agree­ Tex. The proposed restricted area would The available supply of milk relative ment is not included in this decision be­ be utilized for a 9-day period beginning to local Class I needs at Cape Girardeau cause the regulatory provisions thereof April 23, 1973, for the Joint Training approximates that for total deliveries would be the same as those contained Exercise GALLANT HAND 73. The re­ and total Class I utilization under the in the order, as hereby proposed to be stricted airspace is required to effectively St. Louis-Ozarks order. That is, about amended. The following order amend­ test participating tactical aircraft squad­ 65 percent of producer deliveries are ing the order, as amended, regulating the rons under the most realistic conditions. utilized in Class I. Consequently, the handling of milk in the St. Louis-Ozarks The proposed area would overlie ap­ 8-cent reduction in the location adjust­ marketing area is recommended as the proximately 30 general aviation airports ment at Cape Girardeau adopted in this detailed and appropriate means by which and a number o f low altitude airways and decision should not impair the mainte­ jet routes. However, temporary rerout­ nance of an adequate supply of milk at the foregoing conclusions may be carried out: ing procedures would be established to that location, but will tend to promote handle airways traffic during the exercise orderly marketing by assisting producers In § 1062.53, paragraph (b) is revised period. A reverse-charge telephone num­ delivering to Cape Girardeau to main­ as follows: ber would be made available by the Air tain this nearby outlet for their milk. § 1062.53 Location differentials to han­ Force for the use of general aviation R ulings on P roposed F indings and dlers. pilots to request clearance to operate Conclusions within the restricted area on an individ­ ***** ual basis. Procedures would also be Briefs and proposed findings and con­ (b) In Zone n of the marketing area,developed to permit unrestricted air car­ clusions were filed on behalf of certain rier operations into and out of Brown- interested parties. These briefs, proposed shall be the Zone I price plus a location findings and conclusions and the evidence adjustment of 7 cents; wood, Tex. in the record were considered in making ***** The proposed amendment would designate the following temporary re­ the findings and conclusions set forth Signed at Washington, D.C., on Jan­ above. To the extent that the suggested uary 8, 1973. stricted area: findings and conclusions filed by inter­ J ohn C. B lum, R -6314 K illeen, T ex. ested parties are Inconsistent with the Deputy Administrator, SUBAREA A Regulatory Programs, findings and conclusions set forth herein, Boundaries.—Beginning at Lat. 32*10'00" the requests to make such findings car [FR Doc.73-638 Filed 1-10-73; 8:45 am] N, Long. 98*52'00" to Lat. 32*10'00" N.,

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1284 PROPOSED RULE MAKING

Long. 99°30'00" W.; to Lat. 31®20'00" N., Issued in Washington, D.C., on Jan­ the prospectus.” The purpose of the sec­ Long. 99°55'00" W.; to Lat. 31®02'00" N.t uary 3,1973. tion, as described in the congressional Long. 99°00'00" W.; to Lat. 31®42'00" N., reports on the Act, is to prohibit invest­ Long. 99°00'00" W.; to Lat. 31°46'00" N., Claude F eatherstone, ment companies from selling redeemable Long. 98°52'00" W.; to point of beginning, Acting Chief, Airspace and Air securities to any person other than a excluding that airspace within a 3-nautical- Traffic Rules Division. mile radius of Lat. 81®11'00" N., Long. dealer or principal underwriter at a price 99°19'27" W. from the surface to 2,500 [FR Doc.73-546 Filed l-10-73;8:45 am] less than that at which the security is feet AGL. sold to the public. Section 6(c) of the Designated altitudes. 1,500 feet AGL to Act provides that the Commission by PL 280 sunrise to sunset. Surface to FL 280 rule, regulation, or order may exempt. sunset to sunrise. SECURITIES AND EXCHANGE any person or transaction or any class of Time of designation. Continuous 0001 persons or transactions from any provi­ C.S.T., April 23, 1973, to 2359 C.S.T., May 1, sion of the Act if and to the extent that 1973. COMMISSION Controlling agency. Federal Aviation Ad­ such exemption is necessary or appropri­ ministration, Houston ARTC Center. [1 7 CFR Part 270 1 ate in the public interest and consistent with the protection of investors and the Using agency. USAF Tactical Air Com- [Release No. IC-7571, S7-467] mand/USAF Readiness Command (TAC/ purposes fairly intended by the policy USAFRED), Langley AFB, Va. QUANTITY DISCOUNTS FOR CERTAIN and provisions of the Act. Section 38(a) of the Act authorizes the Commission to STJBAREA B GROUP PURCHASES OF MUTUAL issue such rules as are necessary or ap­ Boundaries.—Beginning at Lat. 32°00'00" FUND SHARES propriate to the exercise of the power N., Long. 97°50'00" W.; to Lat. 82°10'00" N., conferred upon the Commission in the Long. 98°32'00'' W., to Lat. 32®10'00'' N., Notice of Proposed Rule Making Long. 98®52'00'^ W.; to Lat. 31°46'00" N., Act. Long. 98®52'00" W.; to Lat. 31°42'00" N., In its recent announcement of hear­ In 1958 the Commission Adopted Rule Long. 99°00'00" W .;.to Lat. 31°02'00" N., ings on mutual fund distribution and 22d-l, which in most respects codified Long. 99®00'00" W.; to Lat. 30°47'00'' N., the potential impact of the repeal of prior administrative interpretations of Long. 98°03'00" W.; to Lat. 30®50'00" N., section 22(d) of the Act (15 U.S.C. 80a— section 22(d) of the Act as well as exemp- Long. 97°44'00" W.; to Lat. 31®06'06" N., 22(d)), (Investment Company Act Re­ tive orders granted under section 6 (c) of Long. 97°32'42" W.; to Lat. 31°13'45" N., lease No. 7475, Nov. 3, 1972 (37 FR the Act. The rule, permits reductions in Long. 97°32'35'' W.; to Lat. 31°19'37" N., 24449)) the Commission stated one of Long. 97°40'32'' W.; to Lat. 31°20'48" N„ the sales loads charged upon the sale of Long. 97°40'32'' W.; to Lat. 31®22'33" N., the issues to be a reconsideration of the mutual fund shares in connection with Long. 97°42'45" W.; to point of beginning, ex­ provision of Rule 22d-l (17 CFR 270.22d- quantity purchases and in other specified cluding that airspace east of a line from Lat. 1) which precludes quantity discounts circumstances. (Investment Company 30°48'00" N., Long. 98°00'00" W.; to Lat. for certain group purchases of redeem­ A ct o f 1940 Release No. 2798, Dec. 2,1958 31®05'00'' N., Long. 97°47'00'' W.; to Lat. able securities issued by investment com­ (23 FR 9601).) The provision in the last 31°41'00'' N., Long. 97°46'15'' W.; above FL panies. The Commission believes that a sentence of paragraph (a) of Rule 22d-l 200, and excluding that airspace from Lat. specific proposal to amend the rule would that quantity discounts would not be 31®00'00" N., Long. 97°37'00" W.; to Lat. 31°03'54" N., Long. 97®42'05" W.; to Lat. provide a helpful focal point for com­ available to “a group of individuals whose 31°09'03'' N., Long. 97°41'18'' W.; to Lat. ments of the public. Rather than simply funds are combined, directly or in­ 31°06'06" N., Long. 97®32'42" W.; from the reactivate a pending 1968 proposal (33 directly, for the purchase of reedemabie surface to 4,000 feet MSL. FR 15263), however, the Commission is securities of a registered investment com­ Designated altitudes. Surface to FL 280 ex­ hereby (1) withdrawing that proposal pany jointly or through a trustee, agent, cept as excluded. and (2) publishing a new proposal, custodian, or other representative * * * Time of designation. Continuous 0001 significantly revised, for comments. The of such a group of individuals,” reflects C.S.T., April 23, 1973, to 2359 C.S.T., May 1, period for comments on this proposal has Commission concern in 1958 that, if con­ 1973. been set by the Commission to expire tinued, quantity discounts in such cir­ Controlling' agency. Federal Aviation Ad­ on M arch 30, 1973, a date estimated to cumstances could disrupt the orderly ministration, Houston ARTC Center. be substantially after the projected close effective distribution of mutual fund Using agency. USAF Tactical Air Com- of the forthcoming hearings. The Com­ shares. mission hopes that this proposal will In 1968 the Commission proposed the mand/USAF Readiness Command (TAC/ rèmovai of the present restrictive defini­ USAFRED), Langley AFB, Va. stimulate discussion at the hearings and that the discussion will lead to more tion of “person” in the rule so as to pro­ SUBAREA C informed comments on the rule itself. vide organized groups of small investors with the opportunity to purchase mutual Boundaries.—Beginning at Lat. 32°00’00" P roposed A mendment to R ule 2 2 d -l N., Long. 97°35'00” W.; to Lat. 31°32’00" N., fund shares at the lower sales charges Long. 97®28'00'' W.; to Lat. 31®23'00" N., (1) Notice is hereby given that the presently available only to investors of Long. 97°35’00" W.; to Lat. 31°13'45" N., Securities and Exchange Commission large sums (Investment Company Act Long. 97°32'45" W.; to Lat. 31°19'37" N., has under consideration the amendment Release No. 5507, Oct. 7, 1968 (33 FR Long. 97®40'32" W.; to Lat. 31®20'48" N., of. Rule 22d-l under the Investment 15263) ). Such proposed amendment of Long. 97®40'32" W.; to Lat. 31-®22'33" N., Company A ct of 1940 (“ A ct” ) (15 U.S.C. Rule 22d-l would have deleted the pro­ Long. 97®42'45" W.; to Lat. 32®00'00" N„ 80a-l et seq.) to permit under certain viso clause in the last sentence of para­ Long. 97®50'00" W.; to point of beginning. circumstances quantity discounts for graph (a) and made it clear that, as Designated altitudes. Surface to 10,000 feet certain group purchases of redeemable used in the rule, the term “person” shall MSL. securities issued by investment compa­ have the meaning set forth in section Time of designation. Continuous 0001 2(a) (28) of the Act,1 but shall also in­ C.S.T., April 23, 1973, to 2359 C.S.T., May 1, nies. The proposed amendment to the clude the other classes presently enumer­ 1973. rule would be adopted pursuant to the ated in the definition of “any person” Controlling agency. Federal Aviation Ad­ authority granted to the Commission in ministration, Houston ARTC Center. sections 6(c), 22(d), and 38(a) of the »This antigrouping provision defines “any Using agency. USAF Tactical Air Com­ Act. (15 U.S.C. 80a-6(c), 80a-22(d), person” more narrowly than sections 2(a) mand/USAF Readiness Command (TAC/ 80a-37 (a ).) (28) and 2(a) (8) of the Act, taken together USAFRED), Langley AFB, Va. (15 U.S.C. 80a-2(a) (28), 80a-2(a) (8) ). Sec­ Section 22(d) of the Act prohibits a tion 2(a) (28) provides that “person” means This amendment is proposed under the registered investment company, its prin­ a natural person or a company. Section 2 authority of section 307(a) of the Federal cipal underwriter, or a dealer in its re­ (a) (8) provides (among other things) that “ company” means a corporation, a partner­ Aviation A ct o f 1958 (49 U.S.C. 1348(a)) deemable securities from selling such ship, an association, a joint-stock company, a and section 6(c) of the Department of securities to “any person” except “at a trust, a fund, or any organized group of Transportation Act (49 U.S.C. 1655(c)). current public offering price described in persons whether incorporated or not.

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 PROPOSED RULE MAKING 1285

in the rule. However, the Commission has sumed that a prospectus would be purchasing securities for a single trust estate held that rule proposal in abeyance while furnished to each member of any group or single fiduciary account (including a pen­ the effects of the repeal of section 22(d) being solicited. Similarly, it is assumed sion, profit-sharing, or other employee bene­ of the Act were being studied by its staff. fit trust created pursuant to a plan qualified that after purchases of investment com­ under Section 401 of the Internal Revenue The staff has now completed the study pany shares, all proxy soliciting material Code) although more than one beneficiary and the Commission has determined to and reports to shareholders required by is involved: Provided, however, That the withdraw its earlier proposal (see (2) the Act and rules thereunder would be term “purchaser” shall not include any below) and to propose in its place a mod­ provided in some manner to each partici­ group of individuals which has not been in ified version which, in effect, gives each pating group member. In this connection existence as an organized group for at least issuer a choice between (a) giving quan­ the Commission staff is considering other 6 months: And further provided, The term tity discounts, but denying them to rule changes which would result in lower “ organized group” shall not include a group groups in the manner the present rule which has ho other purpose than to pur­ administrative costs for group sales. The chase investment company shares at a provides or (b) offering quantity dis­ rules in question relate to the require­ discount. counts to certain “bona fide” groups as ments that shareholders receive indi­ well as to purchasers presently eligible. vidual notices, confirmations, dividend Commission action. The Securities and This is accomplished by retaining para­ statements, and shareholder reports. The Exchange Commission, pursuant to au­ graph (a) of the rule and inserting a new staff is now exploring whether these rules thority in sections 6(c), 22(d), and 38(a) paragraph (b) which is for the most part can be revised without diminishing the of the Investment Company Act, pro­ similar to paragraph (a) except that basic shareholder protections they pro­ poses to amend § 270.22d-l of Chapter paragraph (b) employs a new term “pur­ vide. II of Title 17 of the Code of Federal Reg­ chaser” with a broader definition than It should also be noted that in order ulations (1) by redesignating paragraphs the term “any person” now used in to avoid problems under the Securities (b), (c), (d), (e), (f), (g), and (h) paragraph (a). Thus, an investment Act of 1933, the Securities Exchange Act thereof as paragraphs (c), (d), (e), (f), company would have the option of dis­ o f 1934, and the Investment Company (g), (h), and (i), respectively and (2) by tribution to “persons” in the manner Act o f 1940 (15 U.S.C. 77a et seq., 78a et adding thereunder a new paragraph (b) specified in Rule 22d-l(a) or to “pur­ seq., 80a-1 et seq.), all group purchases to read as follows: chasers” in the manner specified in Rule would be required to be handled in a 2 2 d -l(b ). § 270.22d— 1 Variations in sale§ load manner substantially similar to ordinary permitted for certain sales of redeem­ Proposed paragraph (b) has no anti­ brokerage transactions. Thus, where grouping clause but does include a nar­ able securities. limitations are imposed on the rights of ***** rower, more precise definition of group • an individual participant, or special than the 1968 proposal. The definition charges are made, a separate security (b) In accordance with a scale of re­ includes any organized group of pur­ may be created which would be required ducing sales load varying with the chasers, whether incorporated or not, to be registered under the Securities Act quantity of securities purchased by any but excludes any group not in existence o f 1933 and the issuer o f which may be purchaser. The quantity entitling any for at least 6 months or which has no an investment company required to purchaser to any such reduced sales load other purpose than to purchase mutual register under the Investment Company may be computed on any of the follow­ fund shares at a discount. For example, A ct o f 1940. For example, such problems ing bases, and may include redeemable these modifications in the 1968 proposal would arise if: (1) Sums were accumu­ securities of other registered investment would make it clear that all customers lated for material periods of time before companies having the same principal un­ of a single broker are not a “group” investment; (2) special fees or charges, derwriter as the issuer of such securi­ eligible for a quantity discount. These such as a front-end load, were imposed;* ties: (1) The aggregate quantity of se­ modifications would also make more (3) limitations were imposed on the right curities being purchased at any one time; certain the continued viability of any of participants to withdraw securities (2) the aggregate quantity of securities groups the fund and its distributor might held in custody; or (4) limitations were previously purchased or acquired and' deal with. imposed on the rights and privileges of then owned plus the securities being pur­ It should be noted that paragraph,/a) participants as shareholders. (See Se­ chased; or (3) the aggregate quantity of of the present rule requires that anj curities A ct o f 1933 Release No. 4790, securities purchased by any purchaser scale of reducing sales loads offered bji July 13, 1965 (30 FR 9059).) within a period of no more than 13 a fund or its distributor “ shall be applic­ The text of the proposed Commission months from the date of and pursuant to able to sales to all persons.” Therefore, action is as follows: a written statement of his intention, ac­ an investment company offering a Rule 22d-l under the Investment Com­ cepted by the underwriter, which pro­ quantity discount to a “person” , as de­ pany Act o f 1940 is amended as follow s: vides that the purchaser intends, but is fined in the present rule, is required also not obligated, to purchase securities to offer it to any group of persons pres­ A new paragraph (b) is inserted. The within such period in a specified aggre­ ently within the definition of “person” first two paragraphs of new paragraph gate amount which would entitle the m the rule. For example, a pension trust (b) are identical to the first two para­ purchaser to a quantity discount if pur­ accumulating shares for a number of graphs of present paragraph (a) except chased at one time, and which further beneficiaries is presently treated as a that wherever the word “person (s) ” ap­ provides that each purchase made pur­ single person. Hence, if other groups pears, it is changed to read “purehas- suant to the statement shall be made er(s).” The last paragraph of the pro­ either (i) at the price applicable to the were included within the definition of posed new paragraph (b) reads as fol­ any person” in present paragraph (a) lows: quantity of securities being purchased ^ e,°£ ly,choice of ^vestment companies in each separate transaction until at and their distributors would be to offer As used in this paragraph (b ), the term least a sufficient quantity of securities Quantity discounts to all, including * purchaser” shall have the same meaning has been purchased to qualify for a dis­ eroims, or to no one. As noted above, as the word "person” set forth in section 2(a) (28) of the Act but shall also include: count pursuant to the statement, or un­ me Commission’s present proposal would (i) An individual, or an individual, his spouse til the aggregate quantity specified ~}.e , ®ach issuer a choice between re­ and their children under the age of 21, pur­ therein has been purchased, whereupon stricting quantity discounts to pur- chasing securities for his or their own ac­ a retroactive price adjustment for all pr°vided in the present rule count, and (ii) a trustee or other fiduciary purchases theretofore made under the ¡¡£ *5ordmg such discounts to the kinds statement to reflect the quantity dis­ i group8 specified in new paragraph (b ). * In this connection, it should be borne in count to which the purchaser is then en­ the amendment would not mind that any person who is paid any portion titled pursuant to the statement shall of a sales load or who receives other special be made by the underwriter and the Art nf ioo°ob l i f aLti o n under the Securities compensation in connection with the pur­ distrihntn33 of broker-dealers and other chase or sale of securities will probably be dealer involved, if any, or (ii) at the price shares investment company required to register as a broker-dealer pur­ applicable to the intended aggregate som i5?rtP vide Prospectuses to all per­ sons who are solicited. Thus, it is as­ suant to section 15(a) of the Securities Ex­ quantity of securities specified by the change Act of 1934 (15 U.S.C. 78o(a)). purchaser: Provided, That an amount of

FEDERAi REGISTER, V O l. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1286 PROPOSED RULE MAKING thesecuritles .purchased jihaU beretained in section 2(a) (28) of the Act but .shall adopt an amendment of Rule 22d-J. pub­ by the underwriter or held hy a bank also include CX) an individual, or an in­ lished in Investment Company Act Re­ escrow agent pursuant to terms and con- dividual, his spouse and their children lease /No. 5507, October "7,1088. ditions which will reasonably assure that under the age df 21, purchasing securi­ The Commission has announced that the full applicable sales load will be ties for his or their own account, and it will conduct .pdblic hearings on the charged if the purchaser does 'not com­ (2) a trustee or other fiduciary pur­ subject df mutual fund distribution (In­ plete the ‘intended purchases. The state­ chasing securities for a single trust vestment .'Company.ACt Release No. *7475, ment df intention may also provide that, estate or single fiduciary account (in­ Noveniber 3, 1372). .Group sales will be if the total .purchases made within the cluding a pension, .profit-sharing, or among the issues .to he considered in period covered by ■ the statement exceed other lemployee benefit trust created pur- those hearings. Although this proposal the amount specified by the purchaser suarlt ;to a plan qualified under section may serve as a .reference point Tor those as his expected aggregate purchases, and 401 o f the Internal Revenue Code) al­ hearings, they are policy proceedings equal an aggregate amount which would, though more than .one beneficiary is in­ while this is a .specific .rule proposal if purchased at a single time, qualifyfor volved: Provided, however,Thatthe term which, should be commented upon sepa­ an additional quantity discount, a retro­ “purchaser” shall not include any group rately from the .record .in the hearings. active price adjustment shall be made of individuals which'has not been in ex­ Accordingly, a ll interested persons are by the underwriter and the dealer in­ istence as an organized group for at least invited /to submit their views and com­ volved, lif any, for 'all purchases made 6 m onths: And \further provided, T h e ments an the above proposal in writing, under ’the statement to reflect the term “organized group” shall not include to the Securities and.Exchange.Commis­ quantity discount applicable ’to the ag­ sion, Washington, D.C. 20549, on or be­ a group which has no dther purpose than fore. March 30, .1973,a n d reference should gregate amount of such purchases. to purchase investment company shares be made to Rile No. S7—467. All such .com­ (A) "The scale of reducing sales load ata discount. munications will be considered available and the method df-computation'utilized * * s* * ■ for public inspection. shall he specifically described in ;the (Secs. 8(o), 23(d), 3 8 (a ),.‘84 Btat. COO,v823, By the Commission. prospectus and shall be applicable to 841,116 UJS.O. .8aar-6(c), 80a-22(d), ,80a-37 (4D [seal] R onald F. Hunt, sales to áll purchasers. Secretary. (B) As used in this paragraph (bX, the Withdrawal jo f p tior ^proposal. (2) D ecember 21, 1972. term “purchaser” shsdl have the -same Notice is thereby given that the Commis­ meaning as the word “person” set forth sion hereby -withdraws ’its proposal ’to [FR Doc.73-597 Filed 1-I0^73f8:46 anil

FEDERAL REGISTER, VOL. 3«, NO. 7— THURSDAY, JANUARY 11, 1973 1287 N otices

dated October 11, 1972, has been issued the committee at the time and in the DEPARTMENT OF STATE by the Secretary of the Treasury to Mo­ manner permitted by the committee. hawk Insurance Company, Allentown, Agency for International Development Pennsylvania, under sections 6 to 13 of E. W . G annon, Title 6 of the United States Code, to re­ Lieutenant Colonel, U.S. Army, DIRECTOR AND DEPUTY DIRECTOR, Chief, Plans Office, TAGO. OFFICE OF HOUSING place the Certificate issued July 1, 1972 (37 FR 13597, July 11, 1972) to the Com­ [PR Doc.73-580 Piled l-10-73;8:45 am] Redelegation of Authority pany under its former name, Jersey In­ surance Company of New York. The Pursuant to the authority delegated underwriting limitation of $1,126,000 to me by Delegation of Authority No. 88, previously established for the Company as amended, from the Administrator, remains unchanged. DEPARTMENT OF THE INTERIOR AID, dated November 4, 1970 (35 FR The change in name of Jersey Insur­ Bureau of Land Management 17675), I hereby amend further the re- ance Company of New York does not delegation of authority to the Director affect its status or liability with respect [Serial No. 1-3743] and Deputy Director, Office of Housing, to any obligation in favor of the United IDAHO dated November 5,1970 (35 FR 17675), as States or in which the United States follows: has an interest, which it may have Order Providing for Opening of Public 1. Section 1,A is revised to read, as undertaken pursuant to the Certificate Lands follows: of Authority issued by the Secretary of A. All of the authorities delegated to the Treasury. January 4, 1973. me by the above-mentioned Delegation Certificates of Authority expire on 1. By order dated December 6, 1972, of Authority No. 88, as amended, except June 30 each year, unless sooner revoked and published at pages 26547-8 in the for the following reserved authorities: and new-Certificates are issued on July 1, F ederal R egister, December 13,1972, the (1) The authority to execute guar­ so long as the companies remain quali­ Federal Power Commission ordered that anties; fied (31 CFR Part 223). A.list of qualified (a) “The land withdrawal pursuant to (2) The authority to prescribe and companies is published annually as of amend interest rates provided in section the filing for Project No. 885 is hereby July 1, in Department Circular 570, with vacated insofar as it may pertain to lands 223(f) of the Foreign Assistance Act of details as to underwriting limitations, 1961, as amended. areas in which licensed to transact surety described in the attached land list.” That 2. Section 2 is revised to read as business and other information. Copies land list appears below; and, (b) “The follows: of the Circular, when issued, may be ob­ land withdrawals pursuant to the filings 2. The authorities redelegated herein tained from the Treasury Department, for Project Nos. 1379, 1854, 2141, are may be further redelegated provided Bureau of Accounts, Audit Staff, Wash­ hereby vacated in their entirety.” No that redelegations voider this section ington, DC 20226. other than to officials in the Office of specific lands are identified for these Housing or Regional Assistant Adminis­ Dated: January 8, 1973. projects: trators, shall be subject to approval by [seal] John K . Carlock, Land List the appropriate Regional Assistant Ad­ Fiscal Assistant Secretary. B oise M eridian ministrator or his designee. [PR Doc.73-643 Piled 1-10-73;8:45 am] This amendment to the redelegation KANIKStJ NATIONAL FOREST of authority to the Director and Deputy T. 60 N., R. 4 W„ Sec. 3, Lots 3,6, 7; Director, Office of Housing, shall be ef­ Sec. 5, Lots 1, 2; fective immediately. DEPARTMENT OF DEFENSE Sec. 6, Lots 1, 6, 7,12; Department of the Army Sec, 7, Lots 1,2,3, 4, 5; Dated: January 4, 1973. Sec. 8, Lots 1, 2, 3; J ames F. Campbell, CONARC ADVISORY COMMITTEE TO Sec. 16, Lots 1, 2; Assistant Administrator for Pro­ Sec. 17, Lots 1, 2, 3,4, 5; U.S. ARMY INSTITUTE FOR MILI­ Sec. 19, Lots 1,2, 3,4, 7, NE^SE&SE^; gram and Management Serv­ TARY ASSISTANCE Sec. 20, Lots 1, 2, 3,4; ices. Sec. 21, Lot 1; [PRDoc.73-579 Piled l-10-73;8:45 am] Notice of Public Meeting Sec. 28, Lot 2; ■ In accordance with section 10(a) (2) Sec. 29, Lots 1, 2, 3, 4; Sec. 30, Lot 6; of the Federal Advisory Committee Act Sec. 32, Lots 1, 2, 3, 4. (Public Law 92-463), announcement is T. 61 N., R. 4 W., DEPARTMENT OF THE TREASURY made of the following Committee meet­ Sec. 4, Lots 1, 2; Fiscal Service in g: Sec. 5, Lots 1,4; The CONARC Advisory Committee to Sec. 8, Lots 1, 2; [Dept. Circ. 570,1972 Rev., Supp. No. 11] the U.S. Army Institute for Military As­ Sec. 9, Lots 2, 3; MOHAWK INSURANCE COMPANY sistance will meet at Fort Bragg, N.C., Sec. 17, Lot 2; from January 30 to February 1, 1973. Sec. 19, unpatented parts of Lots 3 and 6; Surety Companies Acceptable on Sec. 20, Lots 1, 2, 3, 4, 5; The meeting will be held in Room 103, Sec. 21, Lot 2; Federal Bonds; Change of Name Bryant Hall, U.S. Army Institute for Sec, 28, Lot 3; Jersey Insurance Company of New Sec. 29, Lots 2, 3,4; Military Assistance. Sessions will con­ Sec. 30, unpatented part of Lot 1; York, N.Y., a New York corporation, has vene at 0830 on January 31 and Feb­ Sec. 32, Lots 1, 2,3,4. formally changed its name to Mohawk ruary 1, 1973. The theme of the confer­ T. 62 N., R. 4 W., Insurance Company. Documents evi­ Sec. 4, Lots 4, 5,8, 9; ence will be “Security Assistance Train­ Sec. 9, Lots 4, 5, 6, 9; dencing the change of name are on file ing in the 1970’s.” Sec. 16, Lots 1, 2, 3,4; in the Treasury. This meeting is open to the public. Sec. 21, Lots 1,2, 3,4, 5; A new Certificate of Authority as an Sec. 28, Lots 1, 2, 3; Any interested person may attend, Sec. 29, Lots 1, 2; acceptable surety on Federal bonds, appear before, or file statements with Sec. 32, Lots 1, 2, 3, 4.

No. 7—Pt. I- FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1288 NOTICES

T. 63 N., R. 4 W., The authorized officer will also prepare more essential than the applicant’s, and Sec. 19, Lots 4,5, 6, 7; a report for consideration by the Secre­ to reach agreement on the concurrent Sec. 29, Lot 4; tary of the Interior who will determine management of the lands and their Sec. 30, Lots 1, 2, 5, 6, 7; whether or not the lands will be with­ resources. Sec. 32, Lots 1,2, 3,4,6; drawn as requested by the applicant The authorized officer will also prepare Sec. 33, Lots 1, 4, 5. a report for consideration by the Sec­ T. 60 N„ R. 5 W., agency. Sec. 12, Lot 5; The determination of the Secretary on retary of the Interior who will determine Sec. 13, Lots 1, 2, 3, 4; the application will be published in the whether or not the lands will be with­ Sec. 24, Lots 1,2, 3, 4. F ederal R egister. A separate notice will drawn as requested by the applicant be sent to each interested party of agency. * The areas described aggregate approx­ The determination of the Secretary on imately 2,918 acres in Bonner County, record. If circumstances warrant, a public the application will be published in the Idaho. F ederal R egister. A separate notice will 2. These lands are all within the hearing will be held at a convenient time and place, which will be announced. be sent to each interested party of record. Kaniksu National Forest and in addition If circumstances warrant, a public are withdrawn from mineral entry and The lands involved in the application hearing will be held at a convenient time location for the Priest Lake Recreation are: Principal M eridian, M ontana and place, which will be announced. Area by Public Land Order 1479. All o f The lands involved in the application the lands are located in Bonner County. DEER LODGE NATIONAL FOREST are: 3. Beginning at 10 a.m. on February 1, T. 5 N., R. 3 W., P rincipal M eridian, M ontana 1973, the national forest lands shall be Sec. 30, Lots 1, 2, 3, and 4, E^WVfc; and open to such form of disposition as may Sec. 31, Lots 1, 2, 3, and 4, E%, E ^ W 1/^. T. 3 N., R. 2 W., by law be made of such lands. T. 5 N., R. 4 W., Sec. 8, SW%. 4. Inquiries concerning the land Sec. 15, Lot 1, NE&, Wy2, NE&SE1/4, T. 2 N., R. 3 W.v W%SE%; ‘ Sec. 4, Lots 1 and 2, Sy2NE& and sy2; should be addressed to the Chief Branch Sec. 22, Lots 1 and 2, S%NE%; and of L&M Operations, Idaho State Office, Sec. 23, all; Sec. 24, NE 14 . 550 W est Fort Street, Post Office Box Sec. 24, Lots 3 and 4, S^N W ^, SW&; and T. 3 N., R. 3 W., 042, Boise, ID 83702. Sec. 25, Lots 1, 2, 3, and 4, W%E%. Sec. 2, Lots 2, 3, and 4, S%NW%, SW]4, NE%SE%, and sy2SE%; and V incent S. Strobel, The areas described aggregate 2,991.16 Sec. 24, Ny2. Chief, Branch of L&M Operations. acres in Jefferson County, Montr T. 5 N., R. 3 W„ Sec. 19, Lot 4; [FR Doc.73-615 Filed l-10-73;8:45 am] R oland F. Lee, Sec. 30, SE%; and Chief, Branch of Lands Sec. 32, wy2NE&, SE^NE^, and NW*4- [ Montana «23941 ] and Minerals Operations. T. 5 N., R. 4. W., JFR Doc.73-614 Filed l-10-73;8:45 am] Sec. 13, Lot 3; and MONTANA Sec. 14, Lots 1, 2, 3, and 4, SW&NWÎ4, N&SWft, and NW^SEft. Proposed Withdrawal and [Montana 23948] Reservation of Lands The areas described aggregate 2,409.25 MONTANA acres in Jefferson County, Mont. January 2, 1973. The Department of Transportation, on Notice of Proposed Withdrawal and R oland F. Lee, behalf of the Montana Highway Com­ Reservation of Lands Chief, Branch o f Lands and Mineral Operations. mission, has filed application, M 23941, J anuary 3, 1973. for the withdrawal of the lands described [FR Doc.73-613 Filed l-10-73;8:45 am] below, from location and entry under the The Department of Transportation, on behalf of tiie Montana Highway Commis­ mining laws, subject to existing valid sion, has filed application, M 23948, for [Nev. 054565] claims. the withdrawal of the lands described be­ NEVADA The applicant desires the land for pro­ low, from location and entry under the posed highway construction. mining laws, subject to existing valid For a period of 30 days from the date Notice of Proposed Withdrawal and of publication of this notice, all persons claims. Reservation of Lands The applicant desires the land for pro­ who wish to submit comments, sugges­ January 3, 1973. tions, or objections in connection with posed highway construction. For a period of 30 days from the date The Forest Service, U.S. Department the proposed withdrawal may present of Agriculture has filed the above appli­ their views in writing to the undersigned of publication of this notice, all persons who wish to submit comments, sugges­ cation for the withdrawal of the lands officer of the Bureau of Land Manage­ described below, from all forms of appro­ ment, Department o f the Interior, 316 tions, or objections in connection with the proposed withdrawal may present priation under the public land laws, but North 26th Street, Billings, MT 59101. not the mining and mineral leasing laws. The Department’s regulations (43 their views in writing to the undersigned officer of the Bureau of Land Manage­ The applicant desires the lands for in­ CFR 2351.4(c)) provide that the au­ clusion in the Toiyabe National Forest. thorized officer of the Bureau of Land ment, Department o f the Interior, 316 Management will undertake such in­ North 26th Street, Billings, M T 59101. For a period of 30 days from the date vestigations as are necessary to deter­ The Department’s regulations (43 of publication of this notice, all persons mine the existing and potential demand CFR 2351.4(c)) provide that the author­ who wish to submit comments, sugges­ for the lands and their resources. He will ized officer of the Bureau of Land Man­ tions, or objections in connection with also undertake negotiations with the ap­ agement will undertake such investiga­ the proposed withdrawal may present plicant agency with the view of adjust­ tions as are necessary to determine the their views in writing to the undersigned ing the application to reduce the area to existing and potential demand for the officer of the Bureau of Land Manage­ lands and their resources. He will also ment, Department of the Interior, Room the minimum essential to meet the appli­ 3008 Federal Building, 300 Booth Street, cant’s needs, to provide for the maximum undertake negotiations with the appli­ concurrent utilization of the lands for cant agency with the view of adjusting Reno, NV 89502. purposes other than the applicant’s to the application to reduce the area to the The Department’s regulations (43 CFR eliminate lands needed for purposes minimum essential to meet the •appli­ 2351.4(c)), provide that the authorized more essential than the applicant’s, and cant’s needs, to provide for the maximum officer of the Bureau of Land Manage­ to reach agreement on the concurrent concurrent utilization of the lands for ment will undertake such investigations management of the lands and their purposes other than the applicant’s, to as are necessary to determine the exist­ ing and potential demand for the lands resources. eliminate lands needed for purposes

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 NOTICES 1289

and their resources. He will also under­ M ount D iablo Meridian T . 6 N., R . 18 E ., take negotiations with the applicant T. 3 N., R. 14 E., Sec. 7, lots 1 and 2, N E ySW y, and N y agency with the view of adjusting the Sec. 36, S w y N E y and SEyN w y. SE y. application to reduce the area to the T. 3 N., R. 15 E., All lands within one-fourth mile of Middle Fork Stanislaus River in unsurveyed por­ minimum essential to meet the appli­ Sec. 6 , NWyNEy (lot 4), Ny SWyNEy, and SW y SW y NE y ; tion of township. Protraction of public cant’s needs, to provide for the maximum land surveys indicates that the lands de­ concurrent utilization of the lands for Sec. 24, SE ySW y and SE y; Sec. 25, lot 1, N%NE]4, and N W y; scribed above, when surveyed, wiU be purposes other than the applicant’s, to Sec. 26, NEyNEy4, SyNEy, SEyNWy, wholly within secs. 25, 26, 34, 35, and 36. eliminate lands needed for purposes more a n d S y ; All lands within one-fourth mile of High­ essential than the applicant’s, and to Sec. 27, NEy Sw y, Sy Sw y, and SEy; land Creek in unsurveyed portion of reach agreement on the concurrent man­ Sec. 28, S E ySW y and S y S E y ; township, not withdrawn in a Federal agement of the lands and their resources. Sec. 31, lots 2, 3, and 4, SEyNwy, Ey waterpower project. Protraction of public SW y.and S E y ; land surveys indicates that the lands de­ The authorized officer will also prepare scribed above, when surveyed, will be a report for consideration by the Sec­ Sec. 32, s y N y and 8 $ ; Sec. 33, NEy and N y s w y ; wholly within secs. 5, 7, 8, and 9. retary of the Interior who will determine Sec. 34, Ni/2 Ni/2 and SWi/4 NWy4; T. 7 N., R. 18 E., whether or not the lands will be with­ Sec. 35, N1/2NW14 . All unsurveyed lands adjacent to North drawn as requested by the applicant T. 4 N„ R. 15 E., Fork Stanislaus River, below the 6,900- agency. Sec. 15, E y ; foot contour as shown on U.S. Geological The determination of the Secretary on Sec. 22, Ni/2NWi/4, SW'/4 NWy4, and NWy4 Survey topographic map of Big Trees and the application will be published in the s w y ; Dardanelles quadrangles. Protraction of Sec. 28, NW yN Ey, E yN W y, and NWy public land surveys indicates that the Federal R egister. A separate notice will lands described above, when surveyed, be sent to each interested party of record. SW y; Sec. 29, SW ySE y and SEy SE y; will be wholly within secs. 15, 19, 20, 21, If circumstances warrant, a public Sec. 32, S E y N W y (unsurveyed). 22,27, 28, 29,30,31, and 32. hearing will be held at a convenient time T. 3 N., R. 16 E„ T. 6 N., R. 19 E., and place, which will be announced. Sec. 27, S y S W y ; Sec. 12, E y and E y s w y ; The public lands involved in the appli­ Sec. 29, lots 9, 10, and 11, and S W y S W y ; Sec. 13, N W y NEy and N w y ; cation are: Sec. 30, lots 3, 4, 5, 6 , and 7, SwyNEy, sec. 14, NEy, SEyNwy, swy, N yssy, SE14 NW14 , E y s w y , and SE y; and SW ySE y; Mount D iablo Meridian, Nevada Sec. 31, lot i, NEy, N E yN W y, and NEy Sec. 15, s y s w y and SE y; T. 14 N., R. 18 E., SE y; Sec. 1 9 ,s y s y ; Sec. 34, NyNEy, EyswyNEy, NyNWy Sec. 32, lots 1, 2, and 3, NEy, E y N W y , Sec. 20, SEyN Ey and s y ; SwyNEy, SE 14 NE 14 . N E y s w y , and N y S E y; Sec. 21, NEy, SyNWy, s w y , and N y Sec. 33, lots 1, 2, 3, 4, 5, and 6, N Ey, and SE y; containing 145 acres. N w y s E y ; Sec. 22, N y and NEy SE y ; Sec. 23, N y and N y s y ; R alph D unn, Sec. 34, NW14 NE14 , N yN W y, and SW>/4 S. N W y. sec. 24, swyNEy, syNwy, Nyswy, Acting Chief, T. 4 N., R. 16 E„ SEySWy, and SEy; Division of Technical Services. Sec. 19, lots 2, 3, and 4, S yN E y, SEy Sec. 25, NEy and N y S E y ; [FR Doc.73-616 Filed 1-10-73:8:45 am] NW y, E y s w y , and SE y; Sec. 29, N w y N E y and N y N W y ; Sec. 20, Sy2 Ni/2 and Sy2; Sec. 30, N y and N y s w y . Sec. 21, s y N y and s y ; T. 5 N., R. 20 E., Geological Survey Sec. 22, Si/2Ni/2 and Ny2 Sy2; Sec. n .s y s E y ; -Sec. 23, NWyNEy, SyNEy, NW>/4, and Sec. 12, swyNEy andEySEy; [Power Site Cancellation 316] Ny2sy2; Sec. 13,Ni/2N E y. . Sec. 24, S y N w y and N y s w y . T. 6 N., R. 20 E., COLUMBIA RIVER BASIN, WASH. T .4N „ R. 17 E., Sec. 26, s w y s w y (unsurveyed); Sec. 1, NEy (fractional), N y S E y, and Sec. 27, SWyNwy (unsurveyed), SWy, Cancellation of Power Site s w y s E y ; W y S E y , and S E yS E y ; Pursuant to authority under the Act of Sec. 12, N E yN W y; Sec. 28, SE yN Ey, S y N W y , and NEy March 3,1879 (20 Stat. 394; 43 TT.S.C. 31), Sec. 14, SW>/4NWy4 and S E y S W y ; S E y ; and 220 Departmental Manual 6.1, Power Sec. 19, SE ySW y and S y S E y ; Sec. 29, S y N y (unsurveyed) and Ny sy ; Site Classification 426 o f July 25, 1952, is Sec. 20, S y S W y and SW yS E y; Sec. 30, lots 1 and 2, s y N E y , EV2NW y, hereby canceled to the extent that it Sec. 2 2 , S y N E y, N E y s w y , S y S W y , and and N y S E y; N W ySE y; Sec. 34, N yN E y; affects the following described land: Sec. 23, Ny2NWy4 and SW‘/4 NWy4. Sec. 35, W y N w y , S E yN w y (unsur­ W illamette Meridian T.6 N..R. 17 E., veyed) , s w y , and s w y s E y . Sec. 2, S y S E y ; T. 5 N., R. 24 E., The area described aggregates about Sec. 32, N yN E y SEy. Sec. 8 , S E y N E y ; Sec. 9, NEyNW y and WV2NW y; 24,650 acres. The area described aggregates 20 acres. Sec. 10, N yN E y; The effective date of this cancellation Sec. 11, N y ; is May 3,1973. The effective date of this cancellation Sec. 12, N y , N E y s w y , and N yS E y. is May 3,1973. T. 7 N., R. 17 E. (unsurveyed). H enry W. Coulter, H enry W . Coulter, All lands within one-fourth mile of Stanis­ Acting Director. Acting Director. laus River and Bloods Creek. Protraction January 3,1973. January 3, 1973. of public land surveys indicates that the [FR Doc.73-560 Filed l-10-73;8:45 am] lands described above, when surveyed, [FR Doc.73-559 Filed l-10-73;8:45 am] will be wholly within secs. 24, 25, 34, 35, and 36. [Power Site Cancellation 258] T. 5 N., R. 18 E., Sec. 3, lots 2, 3, and 4, S y N w y , and NWy4 DEPARTMENT OF AGRICULTURE STANISLAUS RIVER BASIN, CALIF. swy4; Commodity Exchange Authority Cancellation of Power Site Sec. 4, lot 8, Sy.NEi4 .and Sy2; MIDAMERICA COMMODITY Sec. 8 ,E y E y ; Pursuant to authority under the Act of sec. 9 , wy2 ne y , N w y , and wy2swy4; EXCHANGE March 3, 1879 (20 Stat. 394; 43 U.S.C. Sec. 16, Wy2NWi/4 and NWy4SWy4; 31), and 220 Departmental Manual 6.1, New Name for Board of Trade Desig­ Sec. 17, N EyNEy, S y N E y , and SE y; nated as Contract Market Power Site Classification 220 o f May 13, Sec. 20, E y and E y W y ; 1919, is hereby canceled to the extent Sec. 29, N y , SW y.and N W ySE y; Notice is hereby given that under the that it affects the following described Sec. 30, SEyN Ey, S E yS W y, and SE y; authorization and direction contained in land: Sec. 31, lot 1, S E y S W y , and N W y S E y . the Commodity Exchange Act, as

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1290 NOTICES amended (7 U.S.C. l-17a), the order of formation should be addressed to Einer mitted to CEQ in order to be considered the Secretary of Agriculture of Octo­ L. Roget, State Conservationist, Soil Con­ in the preparation of the final environ­ ber 24, 1922, designating the Chicago servation Service, Post Office Box 2323, mental statement. Open Board of Trade as a contract mar­ Little Rock, AR 72203. Dated: January 4,1973. ket for wheat, com, oats, and rye, and Comments must be received within 60 the order of December 8, 1940, designat­ days of the date the statement was trans­ W . B. Davey, ing the Chicago Open Board of Trade as mitted to CEQ in order to be considered Deputy Administrator for Water­ a contract market for soybeans, have in the preparation of the final environ­ sheds, Soil Conservation Service. been amended to show the name Mid- mental statement. [FR Doc.73-637 Filed l-10-73;8:45 am] america Commodity Exchange instead of Dated: January 4,1973. Chicago Open Board of Trade, effective on November 22, 1972. Headquarters of W. B. Davey, the exchange are in Chicago, HI. Deputy Administrator for Wa­ DEPARTMENT OF COMMERCE tersheds, Soil Conservation Done at Washington, D.C., this the Service. Maritime Administration 8th day o f January 1973. [FR Doc.73-636 Filed 1-10-73;8:45 am] [Docket No. S-323] Alex C. Caldwell, Administrator, ALBANY RIVER TRANSPORT, INC. Commodity Exchange Authority. MUD CREEK WATERSHED PROJECT, ET AL. [PR Doc.73-635 Filed l-10-73;8:45 am] S. DAK. Notice of Multiple Applications Availability of Draft Environmental Notice is hereby given that applica­ Statement SOIL CONSERVATION SERVICE tions have been filed under the Merchant Pursuant to section 102(2) (C) of the Marine Act o f 1936, as amended, for op­ BIG RUNNING WATER DITCH WATER­ National Environmental Policy Act of erating-differential subsidy with respect SHED PROJECT, ARKANSAS 1969, the Soil Conservation Service, U.S. to bulk cargo carrying service in the U.S. Department of Agriculture, has prepared foreign trade, principally between the Availability of Draft Environmental a draft environmental statement for the United States and the Union of Soviet Statement Mud Creek Watershed Project, Grant Socialist Republics, to expire on June and Deuel Counties, S. Dak. USDA-SCS- 30, 1973 (unless extended only for sub­ Pursuant to section 102(2) (C) of the sidized voyages in progress on that date). National Environmental Policy Act of ES-WS-(ADM)-73-37 (D ). The environmental statement concerns Inasmuch as the below listed applicants, 1969, the Soil Conservation Service, UJ3. and/or related persons or firms, employ Department of Agriculture, has prepared a plan for watershed protection and flood prevention. The planned works of im­ ships in the domestic intercoastal or a draft environmental statement for the coastwise service, written permission of Big Running Water Ditch Watershed provement include conservation land treatment, one floodwater retarding the Maritime Administration under sec­ Project, Lawrence and Randolph Coun­ tion 805(a) of the Merchant Marine ties, Ark., USDA-SCS-ES-WS-(ADM) — structure, 1.7 miles of channel improve­ ment, and 9.5 miles of clearing and Act, 1936, as amended, will be required 73-33 (D ). for each such applicant if its application The environmental statement concerns snagging. This draft environmental statement for operating-differential subsidy is a plan for watershed protection, flood granted. prevention, and drainage. The planned was transmitted to CEQ on December 18, 1972. The following applicants have re­ works of improvement include conserva­ quested permission involving the domes­ tion land treatment measures and 82 Copies are available during regular working hours at the following locations: tic intercoastal or coastwise services de­ miles of channel modification with miti­ scribed below: gation features. Soil Conservation Service, USDA, South Agri­ This draft environmental statement culture Building, Room 5227, 14th and In­ Name of applicants: Albany River Trans­ dependence Avenue SW., Washington, DC port, Inc. (Albany River); Empire Transport, was transmitted to CEQ on December 19, Inc., (Empire); Meadowbrook Transport, Inc. 1972. 20250. Soil Conservation Service, USDA, 239 Wiscon­ (Meadowbrook); Ogden Merrimac Transport, Copies are available during regular sin Avenue SW., Huron, SD 57350. Inc. (Ogden Merrimac); Platte Transport, working hours at the following locations: Inc. (Platte); Rio Grande Transport, Inc. Soil Conservation Service, USDA, South Ag­ Copies are also available from the Na­ (Rio Grande);’ Mohawk Shipping Co., Inc. riculture Building, Room 5227, 14th and tional Technical Information Service, (Mohawk); Ogden Sacramento Trans., Inc. Independence Avenue SW., Washington, U.S. Department of Commerce, Spring- (Ogden Sacramento); Ogden Sea Transport, DC 20250: field, Va. 22151. Please use name and Inc. (Ogden Sea); James River Transport, Soil Conservation Service, USDA, Post Office number of statement above when order­ Inc. (James River). Box 2323, Little Rock, AR 72203. ing. The estimated cost is $3.15. Description of domestic service and Copies are also available from the Na­ Copies of the draft environmental vessels. Albany River, Empire, Meadow­ tional Technical Information Service, statement have been sent for comment brook, Ogden Merrimac, Platte, Rio U.S. Department of Commerce, Spring- to various Federal, State, and local Grande, Mohawk, Ogden Sacramento, field, Va. 22151. Please use name and agencies as outlined in the Council on Ogden Sea, and James River, all affili­ number of statement above when order­ Environmental Quality Guidelines. Com­ ates of one another and of the other own­ ing. The estimated cost is $3.75. ments are also invited from others having ing companies listed hereafter, have knowledge of or special expertise on en­ each requested written permission to con­ Copies of the draft environmental tinue employment in the domestic inter­ statement have been sent for comment vironmental impacts. coastal and/or coastwise service for the to various Federal, State, and local Comments concerning the proposed ac­ below-listed vessels owned by each or agencies as outlined in the Council on tion or requests for additional informa­ their affiliates: Provided, however, The Environmental Quality Guidelines. Com­ tion should be addressed to V. W. Shally, vessel (s) are not then currently receiv­ ments are also invited from others hav­ State Conservationist, Soil Conservation ing operating-differential subsidy. ing knowledge of or special expertise on Service, 239 Wisconsin Avenue SW., Ship Owning Company environmental impacts. Huron, SD 57350. Albany______Albany River. Connecticut______Connecticut Comments concerning the proposed Comments must be received within 60 Transport, Inc. action or requests for additional in­ days of the date the statement was trans­ James______:______James River.

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY I I , 1973 NOTICES 1291

United States and the Union of Soviet section 805(a) relative to whethér the Missouri ------Meadowbrook. Socialist Republics, to expire on June 30, proposed operation (a) could result in Mohawk------—. Mohawk. 1973 (unless extended only for subsidized unfair competition to any person, firm Ogden Wabash—;------Wabash Trans­ voyages in progress on that date). Inas­ port, Inc. or corporation operating exclusively in Ogden Willamette __—----- Willamette much as the below listed Applicant, the-coastwise or intercoastal services, or Transport, Inc. and/or related persons or firms, employ (b) would be prejudicial to the objects Ogden Yukon______Ogden Sea. ships in the domestic intercoastal or and policy of the Act. Yellowstone ______Rio Grande. coastwise service, written permission of the Maritime Administration under sec­ Dated: January 8,1973. Written permission is now required by tion 805(a) of the Merchant Marine Act, By order of the Maritime Administra­ the applicants notwithstanding that a 1936, as amended, will be required for tion. voyage in the proposed service for which each such Applicant if its application for James S. D awson, Jr., subsidy Is sought would not be eligible for operating-differential subsidy is granted. Secretary. subsidy if the vessel carried domestic The following Applicant has requested [FR Doc.73-641 Filed 1-10-73:8:45 am] commerce of the United States on that permission involving the domestic inter­ voyage. coastal or coastwise services described Interested parties may inspect these below: [Docket No. S-324] applications in the Office of The Sec­ Name of Applicant. Montpelier Tanker MOORE-McCORMACK LINES, INC. retary Maritime Administration, De­ Co. (Montpelier). partment of Commerce Building, 14th Description of Domestic Service and Notice of Application and E Streets NW, Washington, DC Vessels. The applicant, Montpelier, a sub­ 20235. sidiary of Victory Carriers, Inc., owns the Notice is hereby given that Moore- Any person, firm or corporation having Montpelier Victory and American Vic­ McCormack Lines, Inc. (Lines) has filed any interest (within the meaning of sec­ tory, and has requested written permis­ an application requesting written per­ tion 805(a)) in any application and de­ sion to, directly or indirectly, own, op­ mission under section 805(a) of the Mer­ siring to be heard on issues pertinent to erate or charter one or more vessels in chant Marine Act, 1936, as amended, (1) section 805(a) or desiring to submit com­ the domestic intercoastal or coastwise for Lines and Moore and McCormack ments or views concerning the applica­ service, and to own a pecuniary interest, Co., Inc. (Co., Inc.) (a) to own, charter tion must, by close of business on directly or indirectly, in any person or out, and operate dry bulk cargo ships as January 17,1973, file same with the Mari­ concern that owns, charters or operates contract carriers in the domestic trade time Administration, in writing, in trip­ any vessels in the domestic intercoastal between U.S. ports on the Great Lakes, licate, together with petition for leave or coastwise service. The applicant is also and (b) to own a pecuniary interest, di­ to intervene which shall state clearly and affiliated with Monticello Tanker Co., rectly or indirectly, in a person or con­ concisely the grounds of interest, and the Mount Vernon Tanker Co. and Mount cern that owns or charters, and operates alleged facts relied on for relief. Washington Tanker Co. who each own dry bulk cargo ships as contract carriers If no petitions for leave to intervene and operate a tanker operating in world­ in the domestic trade between U.S. ports are received within the specified time or wide trading. on the Great Lakes, and (2) for Messrs. if it is determined that petitions filed do Written permission is now required by Barker and Tregurtha to be directors, not demonstrate sufficient interest to the applicant, Montpelier, notwithstand­ and Messrs. Hoyt and Mclnnes to be of­ warrant a hearing, the Maritime Admin­ ing that a voyage in the proposed service ficers and directors of a proposed sub­ istration will take such action as may be for which subsidy is sought would not be sidiary, probably named Interlake deemed appropriate. eligible for subsidy if the vessel carried Steamship Co. Lines has requested this In the event petitions regarding the domestic commerce of the United States permission in connection with Lines and relevant section 805(a) issues are re­ on that voyage. Co., Inc.’s intention to acquire the assets ceived from parties with standing to be Interested parties may inspect this ap­ and properties of Pickands Mather & Co. heard, a hearing has been tentatively plication in the Office of the Secretary, (PM ), including 13 dry bulk cargo ships, scheduled for 10 a.m., January 19, 1973, Maritime Administration, Department of listed hereafter, operating as contract Room 4896, Department of Commerce Commerce Building, 14th and E Streets carriers between U.S. ports on the Great Building, 14th and E Streets NW., Wash­ NW., W ashington, DC 20235. Lakes. Upon acquisition it is proposed ington, DC 20235. The purpose o f the Any person, firm or corporation having that the ships continue to be operated as hearing will be to receive evidence under any interest (within the meaning of sec­ contract carriers between U.S. ports on section 805(a) relative to whether the tion 805(a)) in any application and de­ the Great Lakes. proposed operation (a) could result in siring to be heard on issues pertinent to Frank Armstrong. Samuel Mather. unfair competition to any person, firm, section 805(a) or desiring to submit com­ Charles M. Beeghly. J. L. Mauthe. or corporation, operating exclusively in ments or views concerning the applica­ Harry Coulby. Colonel James the coastwise or intercoastal services, or tion must, by close of business on Janu­ E. G. Grace. Pickands. (b) would be prejudicial to the objects ary 18,1973, file same with the Maritime Robert Hobson. Charles M. Schwab. and policy of the Act. Elton Hoyt 2d. John Sherwin. Administration, in writing, in triplicate, Herbert C. Jackson. Walter E. Watson. Dated: January 5, 1973. together with petition for leave to inter­ vene which shall state clearly and con­ Lines has requested the aforemen­ By order of the Maritime Administra­ cisely the grounds of interest, and the al­ tioned written permission for domestic tion. leged facts relied on for relief. operation without prejudice to the James S. Dawson, Jr., If no petitions for leave to intervene claimed existence of a bona fide operas Secretary. are received within the specified time or tion by PM or its predecessors as a con­ if it is determined that petitions filed do tract carrier in domestic trade between [FR Doe.73-642 Filed l-10-73;8:45 am] not demonstrate sufficient interest to U.S. ports on the Great Lakes in 1935 warrant a hearing, the Maritime Admin­ and continuous operations since that [Docket No. S-325] istration will take such action as may be time, thereby establishing rights under deemed appropriate. section 805(a). MONTPELIER TANKER CO. In the event petitions regarding the Interested parties may inspect this ap­ Notice of Application relevant section 805(a) issues are re­ plication in the Office of the Secretary, ceived from parties with standing to be Maritime Administration, Department of Notice is hereby given that application heard, a hearing has been tentatively Commerce Building, 14th and E Streets vr5 keen filed under the Merchant scheduled for 10 a.m., January 23, 1973 NW., Washington, D.C. 20235. Marine Act o f 1936, as amended, for op­ in Room 4896, Department of Commerce Any person, firm, or corporation having erating-differential subsidy with respect Building, 14th and E Streets NW., Wash­ any interest (within the m ea n in g o f to bulk cargo carrying service in the U.S. ington, DC 20235. The purpose o f the foreign trade, principally between the section 805(a)) in such application and hearing will be to receive evidence under desiring to be heard on issues pertinent

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1292 NOTICES to section 805(a) or desiring to submit The foregoing applications may be in­ service already provided by vessels of comments or views concerning the spected in the Office of the Secretary, U.S. registry is inadequate and (2) application must, by close of business on Maritime Subsidy Board, Maritime Ad­ whether in the accomplishment of the January 18,1973, file same with the Mari­ ministration, U.S. Department of Com­ purposes and policy of the Act additional time Administration, in writing, in tripli­ merce, Washington, D.C. during regular vessels should be operated thereon. cate, together with petition for leave to working hours. If no request for hearing and petition intervene which shall state clearly and These vessels are to engage in the car­ for leave to intervene is received within concisely the grounds of interest, and riage of export bulk raw and processed the specified time, or if the Board de­ the alleged facts relied on for relief. agricultural commodities in the foreign termines that petitions for leave to in­ If no petitions for leave to intervene commerce of the United States (U.S.) tervene filed within the specified time do are received within the specified time or from ports in the United States to ports not demonstrate sufficient interest to if it is determined that petitions filed in the Union of Soviet Socialist Republics warrant a hearing, the Board will take do not demonstrate sufficient interest to (U.S.S.R.), or other permissible ports of such action as may be deemed appro­ warrant a hearing, the Maritime Ad­ discharge. Liquid and dry bulk cargoes priate. ministration will take such action as may be carried from U.S.S.R. and other Dated: January 8,1973. may be deemed appropriate. foreign ports inbound to U.S. ports dur­ In the event petitions regarding the ing voyages subsidized for carriage of By order of the Maritime Subsidy relevant section 805(a) issues are re­ export bulk raw and processed agricul­ Board. ceived from parties with standing to be tural commodities to the U.S.S.R. James S. D awson, Jr., heard, a hearing has been tentatively Pull details concerning the U.S.- Secretary. scheduled for 10 a.m. January 22, 1973, U.S.S.R. export bulk raw and processed [FR Doc.73-640 Filed l-10-73;8:45 am] in Room 4896, Department of Commerce agricultural commodities subsidy pro­ Building, 14th and E Streets, NW., gram, including terms, conditions and Washington, D.C. 20235. The purpose of restrictions upon both the subsidized op­ Office of Import Programs erators and vessels, appear in the regu­ the hearing will be to receive evidence MASSACHUSETTS INSTITUTE OF under section 805(a) relative to whether lations published in the Federal R egister the proposed operation (a) could result on November 16, 1972 (37 PR 24349). TECHNOLOGY in unfair competition to any person, firm, For purposes of section 605(c), Mer­ chant Marine Act, 1936, as amended Notice of Decision on Application for or corporation operating exclusively in Duty-Free Entry of Scientific Article the coastwise or intercoastal services, or (Act), it should be assumed that each (b) would be prejudicial to the subjects vessel named will engage in the trades The following is a decision on an ap­ and policy of the Act. described on a full-time basis through plication for duty-free entry of a scien­ June 30, 1973 (with extension to term i­ tific article pursuant to section 6(c) of Dated: January 8, 1973. nation of approved subsidized voyages in the Educational, Scientific, and Cultural By order of the Maritime Adminis­ progress on that date). Each voyage must Materials Importation Act of 1966 (Pub­ tration. be approved for subsidy before com­ lic Law 89-651, 80 Stat. 897) and the reg­ J ames S. D awson, mencement of the voyage. The Maritime ulations issued thereunder as amended Secretary. Subsidy Board (Board) will act on each (37 FR 3892 et seq .). request for a subsidized voyage as an ad­ [PR Doc.73-639 Filed l-10-73;8:45 am] A copy of the record pertaining to this ministrative matter under the terms of decision is available for public review the individual operating-differential during ordinary business hours of the [Docket No. S-326] subsidy contract for which there is no Department of Commerce, at the Office requirement for further notices under of Import Programs, Department of OGDEN SEA TRANSPORT, INC., ET AL. section 605(c) of the Act. Commerce, Washington, D.C. Any person having an interest in the Notice of Multiple Applications Docket Number: 72-00545-01-74600. granting of one or any of such applica­ Applicant: Massachusetts Institute of Notice is hereby given that the follow­ tions and who would contest a finding of Technology, 77 Massachusetts Avenue, ing corporations have filed application the Board that the service now provided Cambridge, MA 02139. A rticle: Digital for an operating-differential subsidy by vessels of U.S. registry for the car­ correlator and probability analysis sys­ contract to carry bulk cargoes to expire riage of cargoes as previously specified tem, Type K7023. Manufacturer: Preci­ on June 30, 1973 (unless extended only is inadequate, must, on or before Janu­ sion Devices and Systems, Ltd., United for subsidized voyages in progress on ary 18, 1973, n otify the Board’s Secre­ Kingdom. Intended use of article: The that date). The bulk cargo carrying ves­ tary, in writing, of his interest and of article will be used initially in an investi­ sels proposed to be subsidized and the his position, and file a petition for leave gation of the variation of the relaxation trades in which each proposes to engage to intervene in accordance with the time of local fluctuations in the order are also presented. The address of each Board’s rules of practice and procedure parameter of nematic, smetic, and cho­ of the applicants is the same, i.e., Two (46 CPR Part 201). Each such statement lesteric liquid crystals in their isotropic Pennsylvania Plaza, New York, NY 10001. of interest and petition to intervene shall phases very near the phase transition state whether a hearing is requested un­ between the isotropic phase and a liquid Applicant’s Name Type of Ship Name of Ship der section 605(c) of the Act and v^jth as crystal phase. The materials to be stu­ much specificity as possible the facts died include p-methoxy benzylidene, Ogden Sea Transport, Bulk carrier SS Columbia. that the intervenor would undertake to p-n-butyl aniline and p-ethoxy benzyli­ Inc. prove at such hearing. Further, each such Do...... r...... Tanker...... SS Ogden dene, p-amino benezonitrile (nematic Yukon. statement shall identify the applicant or liquid) and several p-alkoxybenzylidene- S3 James. James River General applicants against which the interven­ p aminoacetophenons (smetic liquid). Transport, Inc. carrier. tion is lodged. Oeden Sacramento Bulk carrier SS Sacramento. Comments: No comments have been Transport, Inc. In the event a hearing under section Mohawk Shipping Co., General SS Mohawk. received with respect to this application. Inc. carrier. 605(c) of the Act is ordered to be held Rio Grande Bulk SS Yellowstone. with respect to any application (s), the Decision: Application approved. No in­ Transport, Inc. carrier. Platte Transport, Inc; ____do...... SS Platte. purpose of such hearing will be to re­ strument or apparatus of equivalent sci­ Ogden Merrlmac Trans- ____do...... SS Merrlmac. ceive evidence relevant to (1) whether entific value to the foreign article, for port» Inc. Meadowbrook Trans- ...... do...... SS Missouri. the application (s) hereinabove described such purposes as this article is intended port. Inc. is one with respect to vessels to be oper­ to be used, is being manufactured in the Albany River Trans­ General SS Albany; ated in an essential service, served by port, Inc. carrier. United States. Reasons: The Department Empire Transport, Bulk SS Potomac. citizens of the United States which Inc; carrier; would be in addition to the existing serv­ of Health, Education, and Welfare ice, or services, and if so, whether the (HEW) advises in its memorandum

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 NOTICES 1293

dated December 8, 1972, that the com ­ pathological entities to be reported in resolution electron microscope designed bination o f speed of

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1294 NOTICES

August 3, 1972. Advice submitted by foreign articles, for the purposes for studies using accurate nmr line shape Department of Health, Education, and which the articles are intended to be analysis of nonrigid organic, organo- Welfare on: December 8,1972. used, is being manufactured in the metallic and inorganic complex com­ Docket No. 73-00104-33-46040. Appli­ United States. Reasons: Each foreign pounds; (4) Studies of binding of small cant : University of Iowa, Ultrastructure article has a specified resolving capa­ molecules to oligonucleotides; (5) Stud­ Division, College of Dentisty, Dental bility equal to or better than 3.5 Ang­ ies of isotope exchange; (6) Studies of Science Building, Iowa City, Iowa 52240. stroms. The most closely comparable do­ rearrangement mechanisms in Vitamin Article: Electron microscope, Model mestic instrument is the Model EMU-4C Bu analogs; (7) NOE and high resolution Elmiskop 101. Manufacturer: Siemens electron microscope which is manufac­ studies of stereo-chemistry about the AG, West Germany. Intended use of ar­ tured by the Forgflo Corp. (Forgflo). The glycosidic linkage in nucleosides; (8) ticle: The article is intended to be used Model EMU-4C has a specified resolving Studies involving relationships between for biological research projects in the capability of 5 Angstroms. (Resolving electronic and molecular structure and academic discipline of dentistry which capability bears an inverse relationship nmr parameters in small ring and bicy- include, among others, the following: to its numerical rating in Angstrom clic alkanes and alkenes; (9) Kinetic and A. Computerization of electron densi­ units, i.e., the lower the rating, the better mechanistic studies of rearrangements of tométrie data obtained from Faraday the resolving capability.) We are advised carbonium ions; and (10) Structural in­ cage of electron microscope in quantita­ by the Department of Health, Education, vestigations of aqueous dispersions of tive and three-dimensional studies of the and Welfare in the respectively cited lecithins and other model membrane sys­ nervous system. memoranda, that the additional resolv­ tems. The article will also be used in the B. Comparative quantitative studies ing capability of the foreign articles is following courses: (1) Chemistry 42 between light m icroscopy and low magni­ pertinent to the purposes for which each (a,b), Research Problems in Chemistry; fication electron microscopic technics, of tiie foreign articles to which the fore­ and (2) Chemistry 144, Organic Labora­ specifically with regard to nerve fiber going applications relate is intended to tory Techniques. size spectra. be used. We, therefore, find that the Comments: Comments were received C. High resolution electron microscopy Forgflo Model EMU-4C is not of equiva­ from Varian Associates which allege of nerve twig myelin and axoplams with lent scientific value to any of the articles inter alia that an NMR Spectrometer of different functions. to which the foregoing applications equivalent scientific value (the Varian D. Three-dimensional reconstructions relate, for such purposes as these articles XL-100-15) for the purposes for which of millimeter-long mammalian muscle are intended to be used. the article is intended to be used is being spindles. The Department of Commerce knows manufactured in the United States. of no other instrument or apparatus of (Comments dated January 28, 1972.) E. High resolution negative staining Decision: Application approved. No in­ technic in characterization of protein- equivalent scientific value to any of the polysaccharide-complexes of unknown foreign articles to which the foregoing strument or apparatus of equivalent sci­ applications relate, for such purposes as entific value to the foreign article, for size and composition in embryonic con­ such purposes as this article is intended nective tissue from mice. Also students these articles are intended to be used, completing the course Electron Micros­ which is being manufactured in the to be used, could have been made avail­ copy will use the instrument for train­ United States. able to the applicant institution without ing in three-dimensional ultrastructure, excessive delay at the time the foreign B . B lankenheimer , article was ordered (Sept. 2, 1970), high-resolution electron microscopy, and Acting Director, Reasons: The foreign article is of the maintenance of different makes of a Office of Import Programs. category that is customarily “produced modern electron microscope. Application [FR Doc.73-624 Filed 1-10-73;8:45 am] on order” which is defined in § 701.2(j) received by Commissioner of Customs: of the Department’s regulations as “an August 11, 1972. Advice submitted by instrument, apparatus, or accessory Department of Health, Education, and YALE UNIVERSITY which a manufacturer lists in a current Welfare on: December 8,1972. catalog and is able and willing to pro­ Docket No. 73-00108-33-46040. Appli­ Notice of Decision on Application for. duce and have available without unrea­ cant: Veterans’ Administration Hospital, Duty-Free Entry of Scientific Article sonable delay to the applicant.” Section General M edical Research Service, 3495 The following is a decision on an appli­ 701.11(b) of the regulations provides in Bailey Avenue, Buffalo, NY 14215. Arti­ pertinent part that “in determining cle: Electron microscope, Model Elmis­ cation for duty-free entry of a scientific article pursuant to section 6(c) of the whether a U.S. manufacturer is able and kop 1A and accessories. Manufacturer: willing to produce a product on order, Siemens AG, West Germany. Intended Educational, Scientific, and Cultural Ma­ terials Im portation Act o f 1966 (Public or custom-made instrument, apparatus, use of article: The article is intended to or accessory and have it available with­ be used in studies of tight junction of Law 89-651, 80 Stat. 897) and the regu­ lations issued thereunder as amended out unreasonable delay to the applicant, the proximal tubule of rabbit for de­ the Deputy Assistant Secretary shall take termination of fine structure and modi­ (37 FR 3892 et seq .). into account the normal commercial fication of fine structure by hormones A copy of the record pertaining to this practices applicable to the production such as antidiuretic hormone. Other ex­ decision is available for public review and delivery of instruments, apparatus, periments to be conducted include: (1) during ordinary business hours of the or accessories of the same general cate­ Localization of lactic dehydrogenase iso­ Department of Commerce, at the Office gory.” enzymes in the heart muscle of experi­ of Import Programs, Department of The question of availability without mental animals subjected to periods of Commerce, Washington, D.C. unreasonable delay is associated with the hypoxia, and (2) identification of the Docket No. 72-00182-01-77030. Appli­ issue of excessive delivery time which is components of amyloid in organs of ex­ cant: Yale University, Department of explained in § 701.11(c) of the regula­ perimental animals and human beings Chemistry, 225 Prospect Street, New tions as follows: afflicted with the disease, and (3) identi­ Haven, CT 06520. Article: Nuclear Mag­ (c) Excessive delivery time. Duty-free fication of isolated and purified com­ netic Resonance, Spectrometer, Model entry of the article shall be considered jus­ ponents prior to chemical characteriza­ JNM-MH-100. Manufacturer: Japan tified without regard to whether there is tion. Application received by Commis­ Electron Optics Laboratory Co., Japan. being manufactured in the United States sioner o f Customs: August 15, 1972. Intended use of article: The article will an instrument, apparatus, or accessory of Advice submitted by Department of be used in several areas of research in­ equivalent scientific value for,the purposes Health, Education, and Welfare on: cluding the following representative sam­ described in response to question 7 of the application form, if the delay in obtaining December 8,1972. ples: (1) Structural investigations of such domestic instrument, apparatus, or ac­ Comments: No comments have been sparingly soluble natural, products; (2) cessory (as indicated by the difference be­ received in regard to any of the fore­ High sensitivity studies of “ C sidebands tween the delivery times quoted by domes­ going applications. Decision: Applica­ to follow incorporation of labeled com­ tic manufacturer and foreign manufacturer) tions approved. No instrument or appa­ pounds in the elucidation of biosynthetic will seriously impair the accomplishment of ratus of equivalent scientific value to the pathways; (3) Kinetic and mechanistic the purposes. In determining whether the

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 NOTICES 1295

difference in delivery times is excessive, the 1 or 2 microseconds. Particular emphasis The purpose of the meeting is to for­ Deputy Assistant Secretary shall take into will be placed on reactions of biochemical account the relevancy of the applicant’s mulate plans and priorities for the Edu­ program to other research programs with re­ importance, differences between dia- cation Committee for the forthcoming spect to timing, the applicant’s need to have stereoisomeric pairs, and differences be­ year. such instrument, apparatus,- or accessory tween isotopic pairs. Dated: January 8, 1973. available at the scheduled time for the Comments: No comments have been course (s) in which the article is intended to received with respect td this application. Charles S tein, be used, and other relevant circumstances. Decision: Application approved. No in­ Executive Secretary of the Ad­ strument or apparatus of equivalent sci­ visory Council for Minority The foreign article was ordered Septem­ Enterprise. ber 2, 1970. The applicant alleges that entific value to the foreign article, for the Varían XL-100-15, the most closely such purposes as this article is intended [FR Doc.73-669 Filed l-10-73;8:45 am] comparable domestic instrument, was not to be used, is being manufactured in the available “within a reasonable delivery United States. Reasons: The foreign ar­ period from the time of our purchase.” ticle can be used tor measure reactions Office of Textiles In a letter dated August 5, 1970, to the taking place in as little as 1 microsecond. MANAGEMENT-LABOR TEXTILE Department of Commerce regarding the The most closely comparable domestic availability of the Varían XL-100-15 temperature-jump apparatus, the Model ADVISORY COMMITTEE system, Varían advised that the delivery D-150, manufactured by the Durrum In­ Notice of Closed Meeting time for the XL-100-15 system, was 6 strument Corp. cannot be used to meas­ to 8 months. The delivery time for the ure reaction times faster than 20 micro­ A. Management-Labor Textile Advi­ foreign article was quoted as 90 days seconds. The Department of Health, Edu­ sory Committee (the Committee). from the receipt of order. The National cation, and Welfare (HEW) in its memo­ B. The meeting is scheduled for Jan­ Bureau of Standards (NBS) advises in randum dated December 8, 1972 advises uary 17, 1973, at 2 p.m., Main Commerce its memorandum dated October 7, 1972, that the capability of the article for Building, U.S. Department of Commerce, that the difference in delivery time is measuring reactions occurring in a mini­ Washington, D.C. 20230. significant for the applicant’s require­ mum time is pertinent to the purposes C. The purpose of the meeting is to ment for use of the article during the for which the article is intended to be provide advice and information to De­ 1970-71 academic year. used. HEW also advises that it knows of partment officials on conditions in the Accordingly, we find the difference in no comparable domestic instrument textile industry and on trade in textiles delivery time between the foreign article which matches the pertinent specifica­ and apparel. and the Varían XL-100-15 to be exces­ tion of the article. D. The Acting Assistant Secretary of sive within the meaning of § 701.11(c) For these reasons we find the Model Commerce for Administration, pursuant as it would seriously impair the accom­ D-150 is not of equivalent scientific value to section 10(d) of Public Law 92-463, plishment of the applicant’s program. to the foreign article for the purposes for determined on January 8, 1973, that the which the article is intended to be used. Committee meeting scheduled for Jan­ B. B lankenheimer, The Department of Commerce knows uary 17, 1973, shall be exempt from the Acting Director, provisions of section 10 (a)(1) and Office of Im port Programs. of no other instrument or apparatus of equivalent scientific value to the foreign (a) (3), relating to open meetings and [PR Doc.73-625 Piled l-10-73;8:45 am] article, for such purposes as this article public participation therein, because the is intended to be used, which is being meeting will be concerned with matters manufactured in the United States. listed in section 552(b) (5) of title 5, YESHIVA UNIVERSITY United States Code. B. B lankenheimer, E. Further information may be ob­ Notice of Decision on Application for Acting D irector, tained from Arthur Garel, Director, Of­ Duty-Free Entry of Scientific Article Office of Import Programs. fice of Textiles, Main Commerce Build­ [FRDoc.73-627 Filed l-10-73;8:45 am] ing, U.S. Department of Commerce, The following is a decision on an ap­ Washington, D.C. 20230. plication for duty-free entry of a scien­ tific article pursuant to section 6(c) of A rthur G arel, the Educational, Scientific, and Cultural Office of Minority Business Enterprise Director, Office of Textiles, Bu­ Materials Importation Act of 1966 (Pub­ ADVISORY COUNCIL FOR MINORITY reau of Resources and Trade Assistance. lic Law 89-651, 80 Stat. 897) and the ENTERPRISE— EDUCATION COM­ regulations issued thereunder as amended [FR Doc.73-751 Filed 1-10-73; 10:25 am] (37 PR 3892 et seq.). MITTEE A copy of the record pertaining to this Notice of Public Meeting decision is available for public review DEPARTMENT OF HEALTH, during ordinary business hours of the Pursuant to the provisions of the Fed­ Department of Commerce, at the Office eral Advisory Committee Act of Octo­ of Import Programs, Department of ber 6, 1972 (Public Law 92-463, 86 Stat. EDUCATION, AND WELFARE Commerce, Washington, D.C. 770-776) notice is hereby given that a public meeting of the Education Com­ Food and Drug Administration Docket No. 73-00052-01-10100. Appli­ mittee of the Advisory Council for cant: Yeshiva University, Belfer Gradu­ [DESI 9542; Docket No. FDC-D-535; NDA Minority Enterprise will be held on Jan­ 9-542, etc.] ate School of Science, Amsterdam Ave- uary 19 and 20, 1973 in Room Executive inrf 185th Street, New York, N.Y. IV of the Ramada Inn, 6060 Central Ex­ CERTAIN COMBINATION DRUGS 10033. Article: Temperature-jump in­ pressway, Dallas, Tex. The meeting will strument. Manufacturer: Hartley Meas­ CONTAINING RAUWOLFIA ALKA­ be held from 1 p.m. to 5 p.m. on Janu­ LOIDS urements, Ltd., United Kingdom. In- ary 19 and from 9 a.m. to 12 noon on +fnj 6^ ^se ai*ticle: The article is in- January 20, and will be open to the pub­ Notice of Opportunity for Hearing on tended to be used to determine the rates lic. Any member of the public who wishes ^extremely fast reactions in aqueous Proposal To Withdraw Approval of to do so may file a written statement New Drug Applications; Drugs for solutions;. The temperature-jump tech- with the Committee, before or after the rnque consists of perturbing an equilib- meeting. Such statements may be filed Human Use; Drug Efficacy Study rium system with rapid change in tem- at 1000 Vermont Avenue, Washington, Implementation an,d observine the rapid ex- D.C. (202/967-3922). Interested persons The Food and Drug Administration has rinmn„tialJ®laxatlon the new equilib- may make oral statements at the meet­ evaluated reports received from the Na­ JJJhnwndittons. The relaxation times of ing to the extent that the time available he reactions to be studied are as fast as tional Academy of Sciences-National Re­ for the meeting permits. search Council, Drug Efficacy Study

No. 7—Pt. I---- s FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1296 NOTICES

Groms, on the following drugs for oral Any manufacturer or distributor of such If, upon the request of the new drug administration: an identical, related, or similar product applicant(s) or any other interested per­ 1. Reserpine with Pyrilamine Maleate is an interested person who may in re­ son, a hearing is justified, the issues will Tablets containing pyrilamine maleate sponse to this notice submit data and be defined, a hearing examiner wifi be and reserpine; Nysco Laboratories, Lie., information, request that the new drug named, and he shall issue, as soon as 34-24 Vernon Boulevard, Long Island application (s) nob be withdrawn, request practicable after the expiration of such City, NY 11106 (NDA 10-934). a hearing, and participate as a party in 30 days, a written notice of the time and 2. Belserp Tablets containing reserpine, any hearing. Any person who wishes to place at which the hearing will com­ hyoscyamine sulfate, atropine sulfate, determine whether a specific product is mence. All persons interested in identical, and scopolamine hydrobromide; Nysco covered by this notice should write to the related, or similar products covered by Laboratories, Inc. (NDA 10-254). Food and Drug Administration, Bureau the new drug application(s) will be 3. Raudonna Tablets containing reser­ of Drugs, Office of Compliance (BD-300), afforded an opportunity to appear at the pine, hyoscyamine sulfate, atropine sul­ 5600 Fishers Lane, Rockville, Md. 20852. hearing, file briefs, present evidence, fate, and scopolamine hydrobromide; In accordance with the provisions of cross-examine witnesses, submit sug­ Mallinckrodt Pharmaceuticals, Division section 505 of the Act (21 U.S.C. 355) gested findings of fact, and otherwise Mallinckrodt Chemical Works, Second and the regulations promulgated there­ participate as a party. The hearing con­ and Mallinckrodt Street, St. Louis, Mo. under (21 CFR Fart 130), the Commis­ templated by this notice will be open to 63160 (NDA 10-127). sioner hereby gives the appplicant(s) and the public except that any portion of the 4. Renir Tablets containing reserpine any other interested person an opportu­ hearing that concerns a method or proc­ and ephedrine sulfate: Hie S. E. Mas- nity for a hearing to show why approval ess the Commissioner finds entitled to sengill Co., 527 Fifth Street, Bristol, of the new drug application (s) should protection as a trade secret will not be TN 37620 (NDA 10-407). not be withdrawn. open to the public, unless the respondent 5. Pedresin Tablets containing rescin- Within 30 days after publication hereof specifies otherwise in his appearance. namine, thiamine mononitrate, and co- in the Federal R egister the applicant(s) Requests for a hearing and/or elec­ balamin concentrate; Nysco Laborato­ and any other interested person is re­ tions not to request a hearing may be ries, Inc. (NDA 11-291), quired to file with the Hearing Clerk, seen in the Office of the Hearing Clerk 6. Aminoserp Tablets containing ami- Department of Health, Education, and (address given above) during regular nophylline and reserpine; Nysco Labora­ Welfare, Room 6-88, 5600 Fishers Lane, business hours, Monday through Friday. tories, Inc. (NDA 10-164), Rockville, MD 20852, a written appear­ This notice is issued pursuant to pro­ 7. Solfo-Serpine Tablets and Capsules ance electing whether or not to avail visions of the Federal Food, Drug, and containing reserpine, phénobarbital, and himself of the opportunity for a hearing. Cosmetic Act (sec. 505, 52 Stat. 1052-53, colloidal sulfur; Wm. P. Poythress & Co., Failure of an applicant or any other in­ as amended; 21 U.S.C. 355), and the Ad­ Inc., 16 North Street, Richmond, VA terested person to file a written appear­ ministrative Procedure Act (5 U.S.C. 23217 (NDA 11-139). ance of election within said 30 days will 554), and under authority delegated to 8. Sandril with Pyronil Tablets, con­ constitute an election by him not to avail the Commissioner (21 CFR 2.120). taining reserpine and pyrrobutamine himself of the opportunity for a hearing. phosphate; Eli Lilly and Co., Post Office -If no person elects to avail himself of Dated: January 2,1973. Box 618, Indianapolis, Ind. 46206 (NDA the opportunity for a hearing, the Com­ S am D. F ine, 9-542). missioner without further notice will en­ Associate Commissioner The Food and Drug Administration ter a final order withdrawing approval of for Compliance. has considered the Academy’s reports, as the application (s). well as other available evidence, and con­ If an applicant or any other interested [FR Doc.73-566 Filed l-10-73;8:45 am] cludes that there is a lack of substantial person elects to avail himself of the op­ {DESI 6257; Docket No. FDC-D-540; NDA evidence, within the meaning of the Fed­ portunity for a hearing, he must file, 6-257] eral Food, Drug, and Cosmetic Act, that within 30 days after publication of this combination drugs of the kinds described notice in the F ederal R egister, a written COMBINATION CONTAINING AMI- above will have the effects they purport appearance requesting the hearing, giv­ NOPHYLLINE, DIPHENHYDRAMINE, or are represented to have under the con­ ing the reasons why approval of the new AND AMMONIUM CHLORIDE ditions of use prescribed, recommended, drug application^) should not be with­ or suggested in the labeling or that each drawn, together with a well-organized Notice of Opportunity for Hearing on ingredient of the combination prepara­ and full-factual analysis of the clinical Proposal To Withdraw Approval of tions contributes to the total effects and other investigational data he is pre­ New Drug Application Drugs for claimed for the drug. pared to prove in support of his opposi­ Therefore, notice is given to the hold- tion. A request for a hearing may not rest Human Use; Drug Efficacy Study er(s) of the new drug application(s) and upon mere allegations or denials, but implementation to any other interested person that the must set forth specific facts showing that The Food and Drug Administration has Commissioner proposes to issue an order a genuine and substantial issue of fact evaluated a report received from the Na­ under section 505(e) of the Federal Food, requires a hearing (21 CFR 130.14(b)). tional Academy of Sciences-National Re­ Drug, and Cosmetic Act (21 U.S.C. If review of the data submitted by an search Council, Drug Efficacy Study 355(e)) withdrawing approval of the applicant or any other interested person Group, on the following drug: listed new drug application(s) and all warrants the conclusion that there exists Hydryllin Compound, containing ami- amendments and supplements thereto, substantial evidence demonstrating the nophylline, diphenhydramine, and am­ including those providing for other oral effectiveness of the product (s) for the monium chloride; G. D. Searle & Co., dosage forms, on the grounds that new labeling claims involved, the Commis­ Post Office Box 5110, Chicago, 111. 60680 information before him with respect to sioner will rescind this notice of oppor­ (NDA 6-257). the drug(s), evaluated together with the tunity for hearing. The Food and Drug Administration has evidence available to him at the time of If review of the data in the applica­ considered the Academy’s report, as well approval of the application's), shows tion (s) and data submitted by the ap- as other available evidence, and con­ there is a lack of substantial evidence plicant(s) or any other interested per­ cludes that there is a lack of substan­ that the drug(s) will have all the effects son in a request for a hearing, together tial evidence, within the meaning of the purported or represented to have under with the reasoning and factual analysis Federal Food, Drug, and Cosmetic Act, the conditions of use prescribed, recom­ in a request for a hearing, warrants the that this fixed combination drug will mended, or suggested in the labeling. conclusion that no genuine and substan­ have the effect that it purports or is rep­ All identical, related, or similar prod­ tial issue of fact precludes the withdrawal resented to have under the conditions of ucts, not the subject of an approved new of approval of the applications), the use prescribed, recommended, or sug­ drug application, are covered by the new Commissioner will enter an order of with­ gested in the labeling and that each com­ drug application(s) reviewed. See 21CFR drawal making findings and conclusions ponent of such drug contributes to the 130.40 (37 FR 23185, October 31, 1972). on such data. total effects claimed.

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 NOTICES 1297

Therefore, notice is given to the prepared to prove in support of his op­ distributors regarding prescription drugs holder(s) of the new drug application(s) position. A request for a hearing may not for human use affected by Drug Efficacy and to any other interested person that rest upon mere allegations or denials, but Study Implementation, which was pub­ the Commissioner proposes to issue an must set forth specific facts showing that lished in the Federal R egister of Thurs­ order under section 505(e) of the Fed­ a genuine and substantial issue of fact day, December 14, 1972 (37 FR 26623). eral Food, Drug, and Cosmetic Act (21 requires a hearing (21 CFR 130.14(b)). The third sentence in the second para­ U.S.C. 355(e)) withdrawing approval of If review of the data submitted by an graph of the first column on page 26625 pertinent parts of the listed new drug applicant or any other interested person reading “If infections with the gram­ application (s) and all amendments and warrants the conclusion that there exists negative organisms are impetigo-like and supplements thereto on the grounds that substantial evidence demonstrating the not deep and spreading, they may be new information beforejhim with respect effectiveness of the product (s) for the treated with topical antibiotics because to the drug (s), evaluated together with labeling claims involved, the Commis­ systemically administered agents for the evidence available to him at the time sioner will rescind this notice of oppor­ these organisms would be used for most of approval of the application(s), shows tunity for hearing. skin infections since they are usually due there is a lack of substantial evidence If review of the data in the applica­ to staphylococci and streptococci.” that the drug(s) will have all the effects tion (s) and data submitted by the ap­ should be corrected to make two sen­ purported or represented to have under plicant (s) or any other interested per­ tences that will read “If infections with the conditions of use prescribed, recom­ son in a request for a hearing, together the gram-negative organisms are impe­ mended, or suggested in the labeling. with the reasoning and factual analysis tigo-like and not deep and spreading, All identical, related, or similar prod­ in a request for a hearing, warrants the they may be treated with topical anti­ ucts, not the subject of an approved new conclusion that no genuine and substan­ biotics because systemically administered drug application, are covered by the new tial issue of fact precludes the with­ agents for these organisms may produce drug application (s) reviewed. See 21 CFR drawal of approval of the application (s), serious side effects. Bacitracin (or grami­ 130.40 (37 FR 23185, October 31, 1972). the Commissioner will enter an order of cidin) and neomycin would be used for Any manufacturer or distributor of such withdrawal making findings and conclu­ most skin infections since they are usu­ an identical, related, or similar product sions on such data. ally due to staphylococci and strep­ is an interested person who may in re­ If, upon the request of the new drug tococci.” applicant(s) or any other interested per­ sponse to this notice submit data and Dated: December 26, 1972. information, request that the new drug son, a hearing is justified, the issues will application (s) not be withdrawn, request be defined, a hearing examiner will be W illiam F. R andolph, a hearing, and participate as a party in named, and he shall issue, as soon as Acting Associate Commissioner any hearing. Any person who wishes to practicable after the expiration of such for Compliance. determine whether a specific product is 30 days, a written notice of the time and [PR Doc.73-564 Piled l-10-73;8:45 am] covered by this notice should write to place at which the hearing will com­ the Food and Drug Administration, Bu­ mence. All persons interested in identical, [DESI 9036] reau of Drugs, Office of Compliance (BD- related, or similar products covered by 300), 5600 Fishers Lane, Rockville, Md. the new drug application(s) will be af­ OXYTETRACYCLINE HYDROCHLORIDE 20852. forded an opportunity to appear at the AND POLYMYXIN B SULFATE VAG­ hearing, file briefs, present evidence, In accordance with the provisions of INAL TABLETS section 505 of the Act (21 U.S.C. 355) and cross-examine witnesses, submit sug­ the regulations promulgated thereunder gested findings of fact, and otherwise Drugs for Human Use; Drug Efficacy (21 CFR Part 130), the Commissioner participate as a party. The hearing con­ Study Implementation Followup templated by this notice will be open to hereby gives the applicant (s) and any Notice other interested person an opportunity the public except that any portion of the for a hearing to show why approval of the hearing that concerns a method or proc­ In a notice (DESI 9036) published in new drug application (s) should not be ess the Commissioner finds entitled to the Federal R egister of April 4, 1972 withdrawn. protection as a trade secret will not be (37 FR 6773), the Commissioner of Food open to the public, unless the respond­ and Drugs announced his conclusions Within 30 days after publication hereof ent specifies otherwise in his appearance. in the Federal R egister the applicant(s) pursuant to evaluation of a report re­ and any other interested person is re­ Requests for a hearing and/or elec­ ceived from the National Academy of quired to file with the Hearing Clerk, tions not to request a hearing may be Sciences-National Research Council, Department of Health, Education, and seen in the Office of the Hearing Clerk Drug Efficacy Study Group, on the fol­ Welfare, Room 6-88, 5600 Fishers Lane, (address given above) during regular lowing preparations: Rockville, Md. 20852, a written appear­ business hours, Monday through Friday. Terramycin Vaginal Tablets with Poly­ ance electing whether or not to avail This notice is issued pursuant to pro­ myxin B Sulfate, containing Oxytetra­ himself of the opportunity for a hearing. visions of the Federal Food, Drug, and cycline hydrochloride and polymyxin B Failure of an applicant or any other in­ Cosmetic Act (sec. 505, 52 Stat. 1052-53, sulfate; Pfizer Inc., 235 East 42d Street, terested person to file a written appear­ as amended; 21 U.S.C. 355), and the New York, NY 10017 (NDA 61-009). ance of election within said 30 days will Administrative Procedure Act (5 U.S.C. The notice stated that the drug was constitute an election by him not to avail 554), and under authority delegated to regarded as effective and possibly ef­ himself of the opportunity for a hearing. the Commissioner (21 CFR 2.120). fective for the various labeled indica­ tions. If no person elects to avail himself of Dated: December 27,1972. the opportunity for a hearing, the Com­ The possibly effective indications have missioner without further notice will W illiam F. R andolph, been reclassified as lacking substantial enter a final order withdrawing approval Acting Associate Commissioner evidence of effectiveness in that no new of pertinent parts of the application (s). for Compliance. evidence of effectiveness of the drug has [PR Doc.73-567 Filed 1-10-73;8:45 am] been submitted pursuant to the notice If an applicant or any other interested of April 4, 1972. person elects to avail himself of the op­ Pfizer Inc. has supplemented their an­ portunity for a hearing, he must file, MANUFACTURERS AND tibiotic application to delete the possibly W1™n 30 days after publication of this DISTRIBUTORS effective indications from the drug’s notice in .the Federal R egister, a writ­ labeling. ten appearance requesting the hearing, Notice of Prescription Drugs for Hu­ Batches of such drugs with labeling giving the reasons why approval of the bearing indications for which substantial new drug application (s) should not be man Use Affected by Drug Efficacy Study Implementation; Correction evidence of effectiveness is lacking are withdrawn, together with a well-organ­ no longer acceptable for certification or ized and full-factual analysis of the clin­ The Commissioner of Food and Drugs release or eligible for exemption from ical and other investigational data he is Issued a notice to manufacturers and certification.

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1298 NOTICES

Any person who will be adversely af­ endorsement or HUD-held mortgages; level of safety of the new safety feature fected by the deletion from labeling of Provided, That such authority is limited is equivalent to or exceeds the level of the indications for which the drug has to deferment of principal not to exceed safety established in the standard from been reclassified from possibly effective 1 year and only so long as the mort­ which the exemption is sought.” The to lacking substantial evidence of ef­ gagor continues to pay full interest, es­ salient points of the petition in support fectiveness may, within 30 days after crow requirements, and, as applicable, of these factors may be summarized as the date of publication of this notice in service charges on HUD-held mortgages. follows: the F ederal R egister, petition for the is­ b. To approve and execute Provisional 1. A detailed description of the Gen­ suance of a regulation providing for other Work-Out Arrangements with respect era,! Motors Air Cushion Restraint Sys­ certification of the drug for such in­ to HUD-held project mortgages even tem has been filed in Docket No. 69-7, dications. The petition must be sup- though in default: Provided, That such and the system is discussed in two papers , ported by a full factual and well docu­ work-out arrangements shall not exceed of the Society of Automotive Engineers: mented medical analysis which shows 1 year and that the mortgagor contin­ No. 720407, “Air Cushion Restraint Sys­ reasonable grounds for the issuance of ues to pay a monthly installment equal tems Development and Vehicle Applica­ such regulation. to the service charge, escrow require­ tions”, by D. D. Campbell, and No. A petition for issuance of said regula­ ments and not less than one-half O/2) 720411, “Special Problems and Consider­ tion should be filed (preferably in quin- of the interest requirement. ations in the Development of Air Cushion tuplicate) with the Hearing Clerk, De­ 2. In section A, paragraph 2 is renum­ Restraint Systems”, by E. H. Klove, Jr. partment of Health, Education, and Wel­ bered 3 and is revised to read: and R. N. Oglesby. fare, Room 6-88, 5600 Fishers lane,' 3. Each Director, Housing Manage­ 2. The SAE papers and documentation Rockville, MD 20852. ment Division, Area Office and Insuring submitted previously by General Motors This notice is issued pursuant to pro­ Office, is authorized to exercise the establish the innovational nature of air visions of the Federal Food, Drug, and power and authority under section A,l, cushions on a restraint system, and Cosmetic Act (secs. 502, 507, 52 Stat. and each Chief, Management and Mort­ demonstrate that the level of safety ex­ 1050-51, as amended, 59 Stat. 463, as gage Servicing Section, Insuring Office, ceeds the level of safety provided by the amended; 21 U.S.C. 352, 357) and under is authorized to exercise the power and lap and shoulder restraints required by authority delegated to the Commissioner authority under section A.1, paragraphs Standard No. 208. of Food and Drugs (21 CFR 2.120). d -s . The petition was supported by Allstate (Secretary’s delegation of authority pub­ Insurance Co. and opposed by the Public Dated; December 26, 1972. lished at 36 FR 5005, Mar. 16. 1971) Interest Research Group and Edward F. W illiam F. R andolph, Kearney of Falls Church, Va. The prin­ 'Acting Associate Commissioner Effective date. This amendment to re­ cipal issues raised by the comments, and for Compliance. delegation of authority is effective as of involved in the matter, are as follows: December 15,1972. A. Support for petition. The Public In­ [FR Doc.73-565 Füed l-10-73;8:45 am] Norman V. W atson, terest Research Group asserts that pe­ Assistant Secretary for titioner has submitted no research, de­ Housing Management. velopment, or test data with the appli­ cation to support its allegations that it [FR Doc.73-605 Filed l-10-73;8:45 am] is developing an innovational safety DEPARTMENT OF HOUSING feature or that the feature provides a level of safety which equals or exceeds AND URBAN DEVELOPMENT that requires! by Standard No. 208. The DEPARTMENT OF Research Group contends that it is un­ Office of Assistant Secretary for necessarily burdensome for the public to Housing Management TRANSPORTATION search the files for the documents Gen­ [Docket No. D—73—213] eral Motors has referenced, and that the National Highway Traffic Safety petitioner should submit the results of REGIONAL ADMINISTRATORS ET AL. Administration “development and certification tests con­ [Docket No. EX 72-2; Notice 2] ducted in accordance with MVSS 208” Redelegation of Authority With Re­ which apparently are not in the public spect to Loan and Contract Serv­ GENERAL MOTORS CORP. domain. icing The NHTSA has decided that General Temporary Exemption From Federal Motors has adequately made and docu­ The Redelegation of Authority to Re­ Motor Vehicle Safety Standard mented its case, and that the exemption gional Administrators et al- with re­ if granted would facilitate the develop­ spect to Loan and Contract Servicing The National Highway Traffic Safety Administration has decided to grant ment and field evaluation of an innova­ published at 35 FR 16104, October 14, tional safety feature, one which will pro­ 1970, and amended at 36 FR 1488, Janu­ General Motors Corp. an exemption from compliance with Federal Motor Ve­ vide a level of safety exceeding that re­ ary 30, 1971, 36 FR 21539, November 10, quired by Standard No. 208. The air 1971, 37 FR 104, January 5, 1972, and 37 hicle Safety Standard No. 208, Occupant Crash Protection, from January 8, 1973 cushion restraint system in question was FR 14427, July 20, 1972, is further developed by General Motors as a re­ amended as follows: to January 1, 1974, covering up to 1,000 Chevrolet passenger cars. The ground sult of rulemaking proceedings of the 1. In section A a new paragraph 2 is NHTSA (Docket No. 69-7) culminating added to read as follows : for the exemption is that it would facili­ tate the development and field evalua­ in the issuance of Standard No. 208, 2. In addition to the authority redele­ Occupant Crash Protection. The system gated in section A,l, the Regional Ad­ tion of an innovational safety feature. Notice of petition for the exemption is designed to satisfy the requirements ministrator and Deputy Regional Ad­ of “ Option 1” of that standard, provid­ ministrator, San Francisco Regional Of­ was published in the F ederal R egister on December 13,1972 (37 FR 26539) and ing complete passive protection. All as­ fice, Region IX, and the Area Director, pects of the air cushion restraint sys­ Deputy Area Director, and Director, an opportunity afforded for comment. Section 123(e) of the National Traffic tem, including test data and discussions Housing Management Division, San of its merits relative to other types of Francisco Area Office, Region IX, each and Motor Vehicle Safety Act of 1966 (15 U.S.C. 1410(e)) requires General systems, are described in detail in the is authorized to exercise within the ju­ many thousands of pages of material risdiction of the San Francisco Area Of­ Motors to “include in the application re­ search, development, and testing docu­ contained in that docket, which is avail­ fice the following authority : able to the public at the same location a. To approve and execute the modi­ mentation establishing the innovational nature of the safety features and a de­ as the petition considered in this notice. fication in the terms of insured project In response to petitions for review of the mortgages subsequent to final insurance tailed analysis establishing that the

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 NOTICES 1299

standard in the U.S. Court of Appeals emption No. 73-2, exempting up to 1,000 Projected losses of $444,000 would be for the Sixth Circuit, this agency took Chevrolet passenger cars manufactured incurred. the position that passive systems such as from January 8, 1973, to January 1,1974, 3. Lotus believes the exemption will the one considered in this petition pro­ from compliance with the requirements not be necessary for more than 1,000 vide an overall level of protection that is of paragraphs . S4.1.1.2, S4.1.1.3, and units, and the two new models sched­ equivalent to, and in many respects su­ S4.1.2.2 of Federal Motor Vehicle Safety uled for introduction in 1973 are de­ perior to, the protection offered by belt Standard No. 208, Occupant Crash Pro­ signed to conform to Standard No. 214. systems presently in use. Although the tection, applicable to front designated Comments supporting the petition court of appeals remanded the proceed­ seating positions. were received from American Motors ing to the agency for further elaboration General Motors will be required to pro­ Corp. and Ecurie Shirlee Corp. of Man­ of its test dummy specifications, it up­ vide notification in the manner proposed hattan Beach, Calif. The petition was held the NHTSA’s judgment that the (37 FR 25533, Dec. 1, 1972), in both a opposed by the Center for Auto Safety, passive protection requirement was prac­ windshield label and the vehicle’s cer­ the Public Interest Research Group, and ticable and met the need for motor ve­ tification label attached to the door or Mr. George J. Grumbach, Jr. of New hicle safety. (Chrysler Corp. v. DOT, No. door post nearest the driver. York City, N.Y. The principal issues 71-1339, 6th Cir. 1972.) Thus, this peti­ (Sec. 3, Public Law 92-548, 86 Stat. 1151, raised by the comments, and involved tion is unique in that it involves a system 15 U.S.C. 1410; delegation of authority at in the matter, are as follows. that is already exhaustively described in 49 CFR 1.51) A. Substantial economic hardship. The the public docket, and whose merits have Public Interest Research Group argued already been favorably passed on in the Issued on January 5,1973. that Lotus has failed to prove that lack course of both agency rulemaking and D ouglas W . T oms, of an exemption would result in an ir­ judicial review. For these reasons this Administrator. retrievable loss of U.S. dealerships and agency has determined that further doc­ [PR Doc.73-547 Piled 1-8-73; 10:50 am] permanent exclusion from the American umentation of the features of General market. It asserted that affidavits from Motors’ air cushion system for purposes dealers and market surveys should have of this petition is unnecessary. [Docket No. EX 72-1; Notice 2] been submitted by Lotus in support of its B. Scope of exemption. Edward F. statement of expected consequences of Kearney has commented that the exemp­ LOTUS CARS, LTD. a denial. Hie Research Group also con­ tion should not relieve the manufacturer Temporary Exemption from Federal tended that Lotus should have esti­ of the obligation to provide lap belts in mated whether the predicted economic the driver’s seating position, contending Motor Vehicle Safety Standard loss of $444,000 could be made up in that failure of the driver to wear the lap The National Highway Traffic Safety whole or in part by raising the price of belt can contribute to a crash or cause Administration has decided to grant vehicles sold outside the U.S. market, injuries to others. Lotus Cars, Ltd. an exemption from com­ and showing, as an alternative, that the The purpose of the exemption is to pliance with Federal Motor Vehicle market outside the United States could evaluate under actual driving conditions Safety Standard No. 214, Side Door not absorb the nonexempted Lotuses. a restraint system for front seat occu­ Strength, from January 8, 1973, to Au­ The Research Group suggested that in pants that is completely passive in na­ gust 15, 1973. The ground for the ex­ the absence of such a demonstration, the ture, and not a hybrid active-passive sys­ emption is that compliance would cause only economic hardship suffered would tem. To grant Mr. Kearney’s request the petitioner substantial economic be a reduction in profits, and expressed would tend to defeat the purpose of this hardship. The exemption is for the Lotus doubt that that alone constitutes “sub­ exemption. Also, as noted above, the Europa model only. stantial economic hardship.” The Center agency has determined that the air Notice of petition for the exemption for Auto Safety asked for a clarification cushion system provides a level of safety was published in the F ederal R egister of “hardship,” arguing that the need of at least equivalent to belt systems. The on December 2, 1972 (37 FR 25768), and Lotus for an exemption is predicated Allstate Insurance Co., which has an opportunity afforded for comment. upon faulty management decisions and equipped an experimental fleet of over Section 123(e) of the National Traffic that the NHTSA should discourage ap­ 200 vehicles with both air cushions and and Motor Vehicle Safety Act of 1966 plications growing out of such circum­ lap belts, did not make a request simi­ stances, lar to Mr. Kearney’s ih supporting the (15 U.S.C. 1410(e)) requires Lotus to demonstrate that compliance with The NHTSA has decided that Lotus petition, as it has found that usage of has adequately made and documented its the lap belt system is less than 17 percent. Standard No. 214 would cause it substan­ tial economic hardship, and that it has case for substantial economic hardship. C. Timeliness of application. The Re­ made a good faith effort to comply with It is clear that a denial would cause search Group argued that an exemption the standard. The salient points of the Lotus to leave the American market cannot be granted in advance of the petition in support of these factors may until either a conforming Europa could application procedures, alleging that the be summarized as follows: be manufactured, late in 1973, or until regulations are an integral part of the 1. The basic design of the Europa door its planned new models could be intro­ exemption scheme. does not permit the introduction of a duced. Bringing the Europa into con­ The NHTSA does not agree with this straight beam linking the door hinge to formity would necessitate large, un- position. The new exemption authority the door latch. Introduction of a suffi­ planned-for expenditures, delay new (Public Law 92-548) was enacted on Oc­ cient reinforcement would incur tooling models that will incorporate a higher tober 25, 1972. Although the legislation and development costs of $750,000, and level of overall safety than the Europa, directed the Secretary to issue regula- necessitate an increase in retail price of and result in a vehicle whose reception tions, it did not state that no action on $1,500. However, the reinforcement by the public would be dubious because petitions should be taken until regula­ would reduce the window opening in the of its reduced window opening. Either tions were finally in effect. In this case, Europa to less than 3 inches. course would deprive petitioner of al­ deferring consideration of the petition 2. Thirty-eight percent of the com­ most 40 percent of its sales income for would delay field evaluation of a safety pany’s worldwide sales in 1972 have been 1973. device which the agency believes has a in the American market. The Elan It is possible that some lost volume great potential in reducing deaths and model, representing 20 percent of U.S. could be diverted elsewhere, but other injuries resulting from traffic accidents. sales, has already been discontinued be­ costs and risks would be incurred. The The NHTSA agrees that it is normally cause of its inability to meet Standards preferable to defer action until the im- incremental inventory cost of equipping No. 215 and No. 302, effective Septem­ the vehicles to meet U.S. safety stand­ piementing regulations are adopted, but ber 1, 1972. Failure to secure an exemp­ in this case important countervailing tion from Standard No. 214 would ter­ ards would either be substantially lost, considerations were found to exist. minate the participation by Lotus in the or result in an additional price premium oi.^TvC«?1is*(*era^0n the foregoing, Gen­ American market for about a year until that would make the vehicles harder to eral Motors Corp. is granted NHTSA Ex- new conforming models are introduced. sell. The effort to expand sales for a

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1300 NOTICES short period in other markets would en­ such a submission unnecessary to make vance of adoption of the application pro­ tail major costs in overhead and man­ a decision at this time. The question may cedures, alleging that the regulations are agement time, with uncertain results. It be reconsidered, however, in the event an integral part of the exemption is probably true that Lotus has a suffi­ of a petition for extension of the exemp­ scheme. cient reputation that denial of the ex­ tion. The NHTSA does not agree with this emption would not cause an irretrieva­ G. Public interest. Mr. George J. position. The new exemption authority ble loss of its dealerships, or perma­ Grumbach, Jr. commented that the eco­ (Public Law 92-548) was enacted on nently exclude it from the U.S. market. nomic hardship to Lotus should be October 25, 1972. Although the legisla­ But this agency does not interpret the weighed against the cost of injuries that tion directed the Secretary to issue reg­ exemption legislation (Public Law 92- could be suffered. He argued that dam­ ulations, it did not state that no action 548, 86 Stat. 1159) as requiring such a ages from personal injuries of $100,000 on petitions should be taken until the showing. It finds that Lotus has demon­ could arise, and that if Lotus’ profit on a regulations were finally in effect. In this strated that without an exemption this sale of 1,000 units is $1,000 per unit, “no case, delay would create a hardship, small producer will suffer a severe finan­ more than ten serious accidents would since Standard No. 214, from which ex­ cial setback. That the projected loss may be required to counterbalance the eco­ emption is sought, was effective Jan­ ultimately not be fatal is balanced by nomic hardship Lotus claims it would uary 1,1973. The NHTSA agrees that it is the fact that the exemption sought is suffer.” Mr. Grumbach suggested that normally preferable to defer action until limited to one standard and to a short as a minimum Lotus should indicate on the implementing regulations are period of time. Thus, on the basis of data its sales controls and literature, and on adopted, but in this case important presented, the NHTSA finds that con­ a permanent plaque on the dashboard, countervailing considerations were found formity to Standard 214 would cause that the Europa fails to meet Standard to exist. substantial economic hardship for Lotus No. 214. In consideration of the foregoing, within the meaning of section 123 of the Mr. Grumbach’s comments point to Lotus Cars, Ltd. is granted NHTSA Ex­ Act. an issue that much be considered in de­ emption No. 73-1, exempting its Europa The NHTSA cannot accept the view termining whether the exemption is in model manufactured from January 8, of the Center for Auto Safety that the the public interest. It should be noted, 1973, to August 15, 1973, from compli­ agency should reject an application re­ however, that an analysis of direct pub­ ance with Federal Motor Vehicle Safety sulting from a risk that management lic costs and benefits may not be conclu­ Standard No. 214, Side Door Strength. consciously incurred. The Center argues sive in determining the merits of an (Sec. 3, Public Law 92-548, 86 Stat. 1159, 15 that Lotus should have devoted its ef­ exemption petition. The intent of the U.S.C. 1410; delegation of authority at 49 forts to improving the Europa rather hardship exemption legislation was at CFR 1.51) than gambling that its conforming least in part to mitigate the economic ef­ Issued on January 5,1973. model would be ready by January 1, fects of the standards on small manu­ 1973. It was, however, demonstrated that facturers, with a view to preserving their D ouglas W . T oms, Lotus has given effort to upgrading the viability and the long-term public bene­ Administrator. Europa. The basic design of the vehicle fits of variety of choice in automotive [FR Doc.73-548 Filed l-8-73;10:50 am] antedates its introduction in 1968, when transportation—benefits that cannot the initial Federal safety standards be­ adequately be measured in financial came effective, and the company has not terms. PRIME GLAZING MATERIAL previously sought an exemption from any The NHTSA has found that the safety MANUFACTURERS other standard. detriment to drivers and passengers of Particularly in a small company, man­ Lotus Europas is not sufficient to out­ Assignment of Code Numbers agement cannot be expected to anticipate weigh the other considerations discussed This notice publishes code numbers every contingency, and Lotus’ inability herein, in light of the purposes of the presently assigned by NHTSA to prime to adhere to its production schedule for exemption legislation. The exemption glazing material manufacturers. its new model should not be considered will enable Lotus to introduce in a rela­ Code numbers may be used by prime fatal to its application. The situation tively short time vehicles that will meet glazing material manufacturers as a would be different where management or exceed current and proposed stand­ means of certifying that glazing mate­ deliberately avoided conformance, but no ards. Again,,the limited character of the rials conform to Motor Vehicle Safety evidence of bad faith is present in the Lotus petition is relevant, in that exemp­ Standard No. 205, “ Glazing Materials” current situation. tion is sought for only 1 000 vehicles from (49 CFR 571.205). Pursuant to recent B. Good faith efforts to comply. The one standard for 8 months. amendments to Standard No. 205 (37 Public Interest Research Group and the Mr. Grumbach’s suggestion regarding FR 12237, June 21, 1972; 37 FR 24035, Center for Auto Safety argued that Lotus purchaser notification has been filed in November 11, 1972), each prime glazing should demonstrate at what points and Docket No. 72-30 and will be considered material manufacturer will be required, how its schedule for development of a in formulating the regulations for Tem­ after April 1, 1973, to certify glazing model complying with Standard No. 214 porary Exemption from Federal Motor materials manufactured by him by affix­ was delayed, and that Lotus should state Vehicle Safety Standards. Lotus will be ing the symbol DOT to thein, in accord­ whether alternate methods were con­ required to provide notification in the ance with paragraph S6.2 of Standard sidered. manner proposed (37 FR 25533, Dec. 1, No. 205, followed by a code number as­ The NHTSA believes that the submis­ 1972), on both a windshield label and signed by NHTSA. Code numbers will be sion by Lotus demonstrates that the the vehicle’s certification label attached assigned to prime glazing material man­ Europa could not be brought into con­ to the door or door post nearest the ufacturers on their written request to formity without major changes to the driver. The certification label will read: the Associate Administrator, Motor Ve­ vehicle structure, which would create a This Vehicle Conforms To All Applicable hicle Programs, National Highway Traf­ problem of window clearance, and that Federal Motor Vehicle Safety Standards In fic Safety Administration, 400 Seventh the decision to introduce successor Effect on the Date of Manufacture Shown Street SW., Washington, DC 20590. Above Except for Standard No. 214, Side models was made at a reasonably early Door Strength. Exempted Pursuant to (Sections 103, 114, 119, Public Law 89-563, time, with a view to conforming to NHTSA Exemption No. 73-1. 80 Stat. 718 15 U.S.C. 1392,1403,1407, and the delegations of authority at 49 CFR 1.51 and Standard No. 214 and presumably other The windshield label will have the same 49 CFR 501.8) standards coming into effect in the mid- statement, except that the words “shown 70’s. Submission of a development sched­ above” will not be included. Issued on January 5, 1973. ule would be relevant to the issue of good D. Timeliness of application. The Pub­ R obert L. Carter, faith, but since a delay of less than a lic Interest Research Group argued that Associate Administrator, year is involved, the agency has found an exemption cannot be granted in ad­ Motor Vehicle Programs.

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 NOTICES 1301

Code Numbers A ssigned to P rim e G lazing Code March 30, 1967, 32 FR 5384 (FR Doc. M a t e r i a l Manufacturers No. Manufacturer 67-3473), and at page 18302 of the F ed­ Code 59 Industrias Venezolanas Automotrices eral R egister So. Manufacturer CA„ Caracas, Venezuela. of December 1, 1970, 35 1 Not assigned. 60 Muotolasi OT, Rauma, Finland. FR 18302 (FR Doc. 70-16033), is hereby 2 Do. 61 Taylor Products, Inc., Payne, Ohio. further amended in the following 3 Do. 62 Glass Arts of California, Inc,, Los Ange­ respects: 4 Do. les, Calif. The following installations and facili­ 5 Do. 63 Union Carbide Corp., Ottawa, HI. ties are added to this notice: 6 Do. 64 Tyneside Safety Glass Co., Ltd., The Atomic Energy Commission in­ 7 Do. Gateshead-on-Tyne, England. stallation known as the Oak Ridge Na­ 8 Do. 65 Royal Industries, Wichita, Kans. 9 Do. 66 Swedlow, Inc., Garden Grove, Calif. tional Laboratory 7900 Area occupied by 10 Do. 67 Sierracin Corp., Sylmar, Calif. the High-Flux Isotope Reactor, High- 11 Do. - 68 Vetrobel, S.p.A., Torino, Italy. Flux Isotope Reactor Office Building, 12 Do. 69 Fujiwara Kogyo Co., Ltd., Osaka, Japan. Transuranium Processing Plant, and 13 Do. 70 AUTOLASI, Lappi TL„ Finland. Thorium-Uranium Recycle Facility, lo­ 14 Saftee Glass Co., Inc., Philadelphia, Pa. 71 P. M. Tabor Co., Inc., Costa Mesa, Calif. cated in the Second Civil District, Roane 15 Libbey-Owens-Ford Co., Toledo, Ohio. 72 Mitsubishi Rayon Co., Ltd., Los Angeles, 16 Hayes-AIbion Corp., Jackson, Mich. Calif. County, Tenn., within the corporate 17 Triplex Safety Glass Co., Ltd., London, 73 V. E. Lipponen OY, Oulu, Finland. limits of the city of Oak Ridge, on the England. 74 Beclawat (Canada), Ltd., Pointe Claire, south side of Melton Valley Drive, ap­ 18 P.P.G. Industries, Pittsburgh, Pa. Quebec, Canada. proximately 0.7 mile west of the inter­ 19 Duplate Canada, Ltd., Toronto, Ontario, 75 Ford Motor Co., Dearborn, Mich. section of Melton Valley Drive and Mel­ Canada. 76 The Tudor Safety Glass Cb., Ltd., Shep- ton Valley Access Road, said intersection 20 Asahi Glass Co., Ltd., Tokyo, Japan. pey, Kent, England. being approximately 0.6 mile south of the 21 Chrysler Corp., Detroit, Mich. 77 Dongsung Glass Co., Ltd., of Korea, intersection of Bethel Valley Road and 22 Guardian Industries Corp., Detroit, Seoul, Korea. Mich. 78 American Cyanamid Co., Sanford, Melton Valley Access Road. This installa­ 23 Nippon Sheet Glass Co., Ltd., Osaka, Maine. tion contains approximately 36 acres and Japan. 79 Triclover Safety Glass, Ltd., Waterford, is enclosed by a 6-foot chain link fence. 24 Splintex Belge S.A., Gilly, Belgium. Ireland. 25 Flachglas AG Delog Detag, Furth/ 80 E. I. du Pont de Nemours & Co., Inc., Dated at Germantown, Md., this 3d Bayern, West Germany. Wilmington, Del. day of January 1973. 26 Coming Glass Works, Corning, N.Y. 81 Tamglass oy, Tampere, Finland. R obert E. H ollingsworth, 27 Vereinigte Glaswerke, Herzogenrath, 82 Donnelly Mirrors, Inc., Holland, Mich. West Germany. 83 Vidrierias de Llodio, S.A., Llodlo, Spain, General Manager. 28 Spiegelglaswerke Germania, Porz, West 84 Lahtis Glasbruk, Lahti, Finland. [FR Doc.73-578 Filed 1-10-73;8:45 am] Germany. 85 K.S.H., Inc., St. Louis, Mo. 29 Withdrawn. 86 Eastman Chemical Products, Inc., 30 Südglas Klumpp & Arrêta Gmbh, Bietig- Kingsport, Tenn. [Docket No. 50-395] heim/Wurtt, West Germany. 87 Glaverbel s.a.—Brussels, Belgium. 31 Glas-und Spiegelmanufaktur N. Kinon 88 Chromalloy Corp., Philadelphia, Pa. SOUTH CAROLINA ELECTRIC AND GAS Gmbh, Aachen, West Germany. 89 Goodyear Tire & Rubber Co., Akron, CO. 32 Glaceries Reunies, SA., Belgium. Ohio. 33 Laminated Glass Corp., Detroit, Mich. 90 Soliver, Beiligbeidsglas, Groenenherder- Availability of Final Statement on 34 Withdrawn. straat 18, Belgium. Environmental Considerations 35 Hordis Brothers, Inc., Pennsauken, NJ. 91 Sietex Safety Glass AB, Uppsala, 36 Societa Italians Vetro, S.p.A., San Salvo Sweden. Pursuant to the National Environmen­ (Chieti), Italy. 92 Toughened Glass, Ltd., Liverpool L36 tal Policy Act of 1969 and the U.S. Atomic 37 Fabbrica Pisana DiSpecchi E Lastre 6BL, England. Energy Commission's regulations in Ap­ Colate, Milan, Italy. 93 Day Specialties Co., Ltd., Midland, On­ 38 N V Glasfabriek “SAS VAN GENT”, Sas tario, Canada. pendix D to 10 CFR Part 50, notice is van Gent, Netherlands. 94 General Electric Co., Pittsfield, Mass. hereby given that a document entitled 39 Compagnie de Saint-Gobain, Neuilly, 95 Glaverbel Glass Manitoba, Ltd., Winni­ “Final Environmental Statement related France. peg, Manitoba, Canada. to the proposed issuance of a construc­ 40 Dearborn Glass Co., Bedford Park (Argo 96 Taiwan Glass Corp., Lake Oswego. Oreg. tion permit to the South Carolina Elec­ Post Office), 111. 97 AB Emmaboda Glasverk, Sweden. tric and Gas Company for the Virgil C. 41 Scanex Sakerhetsglas Aktiebolag, Lands- 98 Plaskolite, Inc., Columbus, Ohio. Summer Nuclear Station, Unit 1”, is krona, Sweden. 99 Ohio Plate Glass Co., Paul Manufactur­ 42 Société Industrielle TRIPLEX, Longju­ ing, Lewisburg, Ohio. being placed in the following locations meau, France. 100 Mills Appliance Products, Ltd., Brama- where it will be available for inspection 43 Boussois - Souchon - Neùvesel, Paris, lea, Ontario, Canada. by members of the public: The Commis­ France. 101 Polycast Technology Corp., Stamford, sion’s Public Document Room at 1717 44 Central Glass Co., Ltd., Tokyo, Japan. Conn. - H Street NW., Washington, DC 20545, 45 Splintex, Ltd., London, England. 102 Glass Develop AB, Lund, Sweden. and in the Fairfield County Library, 46 Crisitales Inastillables de Mexico, S.A., 103 Artistic Glass Products, Quakertown, Pa. Vanderhorst Street, Winnsboro, SC 29180. Xalostoc Edo. de Mexico. 104 Sheffield Poly-Glaz, Inc., Sheffield, 47 Nordlamex Safety Glass OY, Helsinki, The report is also being made available Finland. [FR Doc.73-644 Filed l-10-73;8:45 am] at the Office of the Governor, State Plan­ 48 Rohm and Haas Co., Philadelphia, Pa. ning and Grants Division, Wade Hamp­ 49 Lasipaino Ky, Tampere, Finland. ton Office Building, Columbia, SC 29201, 50 Armourplate Safety Glass Ltd., Port and at the Central Midlands Regional Elizabeth, South Africa. Planning Council, 1125 Blanding Street, 51 Vetreria di Vemante, S.p.A., Cuneo, ATOMIC ENERGY COMMISSION Italy. Columbia, SC 29201. 52 Shatterproof Glass Corp., Detroit, Mich. OAK RIDGE OPERATIONS OFFICE The notice of availability of the Draft 53 Hsinchu Glass Works, Inc., Taipai, Tai­ Environmental Statement for the Virgil wan, Republic of China. Trespassing On Commission Property C. Summer Nuclear Station and request 54 Sunex Sakerhetsglas AB, Lysekil, The notice concerning unauthorized for comments from interested persons Sweden. entry into or upon certain installations was published in the F ederal R egister 55 1 01853 Mid facilities of the Oak Ridge Opera­ on September 30, 1972, 37 FR 20585 and G i ^ Mfg‘Co" ^ Grave vula€e. tions Office of the Atomic Energy Com­ 56 Armour Glass Co., Santa Fe Springs, mission dated October 12, 1965, appear- 20586. The comments received from Fed­ ing at pages 13285-13287 of the F ederal eral, State, and local officials and inter­ 57 Aktiebolaget Trempex, Eslôv, Sweden. R egister of October 19,1965, 30 FR 13285 ested members of the public have been • Shatterproof de Mexico, SA.., Col. Indus­ (FR Doc. 65-11108), and amended at Included as appendixes to the final en­ trial Vallejo, Mexico 15, D.F. page 5384 of the F ederal R egister of vironmental statement.

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1302 NOTICES

Single copies of the statement may be 1973. The submissions of the other par­ There is published below a letter of obtained by writing to the U.S. Atomic ties shall be limited to points on which January 5, 1973, from the Chairman of Energy Commission, Washington, DC they differ with the Bureau of Operating the Committee for the Implementation 20545, Attention: Deputy Director for Re­ Rights, and shall follow the numbering of Textile Agreements to the Commis­ actor Projects, Directorate of Licensing. and lettering used by the Bureau to sioner of Customs, directing that the facilitate cross-referencing. amounts of cotton textiles and cotton Dated at Bethesda, Md., this 8th day textile products in Categories 50 and 62 of January 1973. Dated at Washington, D.C., January 5, produced or manufactured in Macao 1973. For the Atomic Energy Commission. which may be entered or withdrawn from [seal] R alph L. W iser, warehouse for consumption in the United G eorge W. K nighton, Chief Administrative Law Judge. States for the 12-month period beginning Chief, Environmental Projects [PR Doc.73-628 Filed l-10-73;8:45 am] January 1, 1973, be limited to the desig­ Branch No. 1, Directorate of nated levels. The letter published below Licensing. and the actions pursuant thereto are not [PR Doc.73-717 Piled l-10-73;8:45 am] designed to implement all of the provi­ sions of the bilateral agreement but are COMMITTEE FOR PURCHASE OF designed to assist only in the implemen­ tation of certain of its provisions. CIVIL AERONAUTICS BOARD PRODUCTS AND SERVICES OF S tanley Nehmer, [Docket No. 24739] Chairman, Committee for the SCHENKER & CO. G.m.*b.H. (GER­ THE BLIND AND OTHER Implementation of Textile Agreements, and Deputy As­ MANY) AND SCHENKERS INTER­ SEVERELY HANDICAPPED sistant Secretary and Direc­ NATIONAL FORWARDERS, INC. tor, Bureau of Resources and PROCUREMENT LIST Postponement of Hearing Trade Assistance. Addition to Initial List C om m ittee for th e I mplementation of Notice is hereby given, that due to T extile A greements the receipt of objections by the parties Notice of proposed addition to the Commissioner of Cu stom s, to the prehearing conference report initial procurement list, August 26, 1971 Department of the Treasury, served December 15, 1972, and to a re­ (36 F R 16982) was published in the F ed­ Washington, D.C. 20226. quest of several of the parties for estab­ eral R egister on April 21, 1972 (37 F R J anuary 5, 1973. lishment of new procedural dates, the 7944). D ear Mr . Commissioner : Under the terms hearing in the above-entitled proceed­ Pursuant to the above notice, the fol­ of the Long-Term Arrangement Regarding ing now scheduled for January 16, 1973 lowing commodity is added to the pro­ International Trade In Cotton Textiles done <38 FR 906), is hereby postponed, to be curement list. at Geneva on February 9, 1962, pursuant to thé bilateral cotton textile agreement of De­ renoticed in the supplement to the pre- C om m odity hearing conference report forthcoming cember 22, 1972, between the Governments Class 6625: Set of the United States and Portugal, and in in the near future. Test set, lead 6625-553-1442...... $2.20 accordance with the procedures of Executive Dated at Washington, D.C., January 5, Order 11651 of March 3, 1972, you are di­ Charles W. F letcher, rected to prohibit, effective as soon as pos­ 1973. Executive D irector. sible, and for the 12-month period beginning [ seal] R ichard M. H artsock, [FR Doc.73-5^ Filed 1-10-73; 8:45 am] January 1, 1973, and extending through De­ Administrative Law Judge. cember 31, 1973, entry into the United States for consumption and withdrawal from ware­ [PR Doc.73-629 Piled l-10-73;8:45 am] house for consumption of cotton textiles and cotton textile products in Categories 50 and COMMITTEE FOR THE IMPLEMEN­ 62 produced or manufactured in Macao, in [Docket No. 24686, etc.] excess of the following 12-month levels of restraint: STANDARD AIRWAYS, INC., ET AL. TATION OF TEXTILE AGREEMENTS 12-month Notice of Prehearing Conference levels of CERTAIN COTTON TEXTILES AND COT­ Category restraint1 In the matter of Standard Airways, TON TEXTILE PRODUCTS PRO­ ______dozen 39, 332 Inc., Mark Aero, Inc., Charlotte Aircraft DUCED OR MANUFACTURED IN 02 ______pounds 152,174 Corp., et al.; acquisition of control and MACAO 1 These levels have not been adjusted to interlocking relationships, Docket No. reflect any entries made on or after Jan. 1, 24686, Standard Airways, Inc., certifi­ Entry or Withdrawal From Warehouse 1973. cates of public convenience and necessity for Consumption Cotton textiles and cotton textile products for supplemental air transportation, in Categories 50 and 62 produced or manu­ J anuary 5,1973. Docket No. 21355, etc. factured in Macao and which have been ex­ Notice is hereby given that a prehear­ On December 22, 1972, the U.S. Gov­ ported to the United States prior to Janu­ ing conference in the above-entitled ernment, in furtherance of, and under ary 1, 1973, shall not be subject to this matter is assigned to be held on Janu­ the terms of, the Long-Term Arrange­ directive. ment Regarding International Trade in Cotton textiles and cotton textile products ary 30, 1973, at 10 a.m. (local time), in which have been released from the custody Room 1031, North Universal Building, Cotton Textiles done at Geneva on Feb­ of the Bureau of Customs under the provi­ 1875 Connecticut Avenue NW., Washing­ ruary 9,1962, concluded a comprehensive sions of 19 U.S.C. 1448(b) prior to the effec­ ton, DC, before Administrative Law bilateral cotton textile agreement with tive date of this directive shall not be denied Judge Alexander N. Argerakis. the Government of Portugal concerning entry under this directive. In order to facilitate the conduct of exports of cotton textiles and cotton tex­ The levels of restraint set forth above are tile products from Macao to the United subjéct to adjustment pursuant to the pro­ the conference, parties are instructed to visions of the bilateral agreement of Decem­ submit one copy to each party and four States over a 5-year period beginning January 1, 1973, and extending through ber 22, 1972, between the Governments of copies to the judge of: (1) Proposed the United States and Portugal which pro­ statements of issues, (2) proposed stipu­ December 31,1977. Among the provisions vide, in part, that within the aggregate limit, lations, (3) requests for information, (4) of the agreement are those establishing the limitations on certain categories may be statement of positions of parties, and (5) an aggregate limit for the 64 categories exceeded by not more than five (5) percent; proposed procedural dates. The Bureau and within the aggregate limit specific for the limited carryover of shortfalls to the of Operating Rights will circulate its ma­ limits on Categories 50 and 62 for the next agreement year; and for administrative agreement year which began on Janu­ arrangements. Any appropriate adjustments terial on or before January 19, 1973, and pursuant to the provisions of the bilateral the other parties on or before January 25, ary 1, 1973.

FEDERAL REGISTER, VOL. 38, NO. 7—-THURSDAY, JANUARY 11, 1973 NOTICES 1303

agreement referred to above will be made C om m ittee for th e I mplementation of 5 U.S.C. 553. This letter will be published in to you by letter. T extile A greements the Federal R egister. A detailed description of the categories Sincerely, in terms of T.S.U.S.A. numbers was published C ommissioner of C u sto m s, Department of the Treasury, S tanley Ne h m er, in the Federal R egister on April 29, 1972 Washington, D.O. 20226. Chairman, Committee for the Imple­ (37 FR 8802). mentation of Textile Agreements, January 5, 1973. In carrying out the above directions, entry and Deputy Assistant Secretary into the United States for consumption shall D ear M r. C ommissioner : Under the provi­ and Director, Bureau of Resources be construed to include entry for consump­ sions of the bilateral Wool and Man-Made and Trade Assistance. tion into the Commonwealth of Puerto Rico. Fiber Textile Agreement of December 22,1972, The actions taken with respect to the between the Governments of the United (FR Doc.73-622 Filed l-10-73;8:45 am] Government of Portugal and with respect States and Portugal, and in accordance with to imports of cotton textiles and cotton tex­ the procedures of Executive Order 11651 of tile products from Macao have been deter­ March 3, 1972, you are directed to prohibit, mined by the Committee for the Implemen­ effective as soon as possible and for the 12- tation of Textile Agreements to involve month period beginning January 1, 1973, and ENVIRONMENTAL PROTECTION foreign affairs functions of the United States. extending through December 31, 1973, entry Therefore, the directions to the Commis­ into the United States for consumption and AGENCY sioner of Customs, being necessary to the withdrawal from warehouse for consumption implementation of such actions, fall within of man-made fiber textile products in Cate­ MERCK SHARP & DOHME the foreign affairs exception to the rule- gories 219, 221, 222, 223, 224, 229, and 230, making provisions of 5 U.S.C. 553. This letter produced or manufactured in Macao, in ex­ Notice of Filing of Pesticide and Food will be published in the F ederal R egister. cès of the following 12-month levels of Additive Petitions Sincerely, restraints: Stanley Neh m er, Pursuant to provisions of the Federal Chairman, Committee for the Imple­ . 12-month levels Food, Drug, and Cosmetic Act (sec. 408 mentation of Textile Agreements, Category of restraint1 (d) (1), 409(b) (5), 68 Stat. 512; 72 Stat. and Deputy Assistant Secretary 219 ------dozen_ 247,0591786; 21 U.S.C. 346a(d) (1), 348(b)(5)), and Director, Bureau of Re­ 221 ------do_ 142,826notice is given that a pesticide petition sources and Trade Assistance. 222 ------do____ 226,517 223 ------do___ 111,000 (PP 3F1332) has been filed by Merck [FR Doc.73-621 Filed 1-10-73; 8:45 am] « 224 ------— ------pounds_ 193,846 Sharp & Dohme, Division of Merck & 229 ------dozen_ 140,800Co., Inc., Rahway, N.J. 07065, proposing CERTAIN WOOL AND MAN-MADE 230 —...... do__ 12,715establishment of a tolerance (40 CFR FIBER TEXTILE PRODUCTS PRO­ 1 These levels have not been adjusted to Part 180) for residues of the fungicide reflect any entries made on or after Jan. 1, thiabendazole (2 - (4 - thiazolyl) ben­ DUCED OR MANUFACTURED IN 1973. zimidazole) in or on the raw agricultural MACAO Entries of man-made fiber textile products commodity citrus at 10 parts per million. Entry or Withdrawal from Warehouse in the above categories produced or manu­ Notice is also given that the same firm factured in Macao and which have been ex­ has filed a related food additive petition for Consumption ported to the United States prior to Janu­ (FAP 3H5023) proposing establishment January 5,1973. ary 1, 1973, shall not be subject to this of a food additive tolérance (21 CFR On December 22, 1972, the U.S. Gov­ directive. Part 121) of 35 parts per million for Man-made fiber textile products which residues of thiabendazole in dried citrus ernment concluded a comprehensive bi­ have been released from the custody of the lateral Wool and Man-Made Fiber Bureau of Customs under the provisions of pulp resulting from application of the Textile Agreement with the Government 19 U.S.C. 1448(b) prior to the effective date fungicide to growing citrus fruit. of Portugal concerning exports of wool of this directive shall not be denied entry The analytical method proposed in and man-made fiber textiles from Macao under this directive. the pesticide petition for determining to the United States over a 5-year pe­ The levels of restraint set forth above are residues of the fungicide is a procedure riod beginning January 1, 1973, and ex­ subject to adjustment pursuant to the provi­ in which residues are extracted with tending through December 31, 1977. sions of the bilateral agreement of Decem­ ethyl acetate. The extract is purified by Among the provisions of the agreement ber 22,1972, between the Governments of the a series of extraction procedures and are those establishing specific export United States and Portugal which provide in limitations on man-made fiber textile determined spectrophotofluorometri- part that within the aggregate limit, limits on cally. products in Categories 219, 221, 222, 223, specific categories may be exceeded by not 224,229, and 230, for the agreement year more than 5 percent; for the limited carry­ Dated: January 4,1973. which began January 1,1973. over of shortfalls in certain categories to the Edw in L. Johnson, Accordingly, there is published below a next agreement year; and for administrative Acting Deputy Assistant Ad­ letter of January 5,1973, from the Chair­ arrangements. Any appropriate adjustment ministrator for Pesticides man of the Committee for the Imple­ pursuant to the provisions of the bilateral Programs. mentation of Textile Agreements to the Commissioner of Customs, directing that agreement referred to above will be made to [FR Doc.73-549 Filed l-10-73;8:45 am] the amounts of man-made fiber textile you by letter. products in the above categories pro­ A detailed description of the wool and duced or manufactured in Macao which man-made fiber textile categories in terms of may be entered or withdrawn from ware­ T.S.U.S.A. numbers was published in the FEDERAL HOME LOAN BANK BOARD house for consumption in the United Federal R egister on April 29, 1972 (37 FR States for the 12-month period beginning 8802). [H.O. 141] January 1, 1973, and extending through In carrying out this directive, entry into CALIFORNIA FINANCIAL CORP. December 31, 1973, be limited to the the United States for consumption shall be designated levels. The letter published construed to include entry for consumption Receipt of Application for Approval below and the actions pursuant thereto into the Commonwealth of Puerto Rico. of Acquisition of Control are not designed to implement all of the The actions taken with respect to the Gov­ January 8, 1973. provisions of the bilateral agreement, but ernment of Portugal and with respect to the Notice is hereby given that the Fed­ are designed to assist only in the imple­ imports of wool and man-made fiber textile eral Savings and Loan Insurance Cor­ mentation of certain of its provisions. products from Macao have been determined poration has received an application S tanley Nehmer, by the Committee for the Implementation of Chairman, Committee for the Textile Agreements to involve foreign affairs from the California Financial Corp., San Implementation of Textile functions of the United States. Therefore, the Jose, Calif., a unitary savings and loan Agreements, and Deputy As­ directions to the Commissioner of Customs, holding company, for approval of acqui­ sistant Secretary and Direc­ being necessary to the implementation of sition of control of the Trans-Coast In­ tor, Bureau of Resources and such actions, fall within the foreign affairs vestment Co., a multiple savings and Trade Assistance. exception to the rule-making provisions of loan holding company which controls

No. 7— Pt.I___ 6 FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1304 NOTICES

Transcoast Savings and Loan Associa­ ticularity the acts and circumstances said tion, Oxnard, Calif., -Santa Maria Sav­ FEDERAL MARITIME to constitute such violation or detriment ings and Loan Association, Santa Maria, to commerce. Calif., and Independent Savings and COMMISSION A copy of any such statement should Loan Association, Salinas, Calif., Insured also be forwarded "to the party filing the institutions, under the provisions of sec­ [Independent Ocean Freight Forwarder agreement (as indicated hereinafter) tion 408(e) of the National Housing Act, License No. 1219] and the statement should indicate that as amended (12 UJS.C. Il730a(e) ), and G. P. DONAHUE, INC. this has been done. § 584.4 of the regulations for savings Notice of agreements filed by*: Order of Revocation and loan holding companies, said acqui­ Gerald A. Malia, Esq., Ragan & Mason, The sition to be effected by an exchange of G. P. Donahue, Inc., 415 Lafayette Farragut Building, 900 17th Street NW., stock between California Financial Corp. Building, Philadelphia, Pa. 19106, volun­ Washington, DC 20006. and Trans-Coast Investment Co. Follow­ tarily .surrendered Its Independent Ocean Agreement No. T-2005-8, between the ing said acquisition, it is proposed that Freight Forwarder License No. 1219 for Transcoast Savings and Loan Associa­ Port of Seattle (Port) and Sea-Land revocation. Service, Inc. (Sea-Land), amends the tion, Santa Maria Savings and Loan As­ By virtue of authority vested in me by sociation, and Independent Savings and hasic lease between the parties (as here­ the Federal Maritime Commission as set tofore amended) ’which provides tfor the Loan Association be merged into Secu­ forth in Manual of Orders, Commission rity Sayings and Loan -Association, an in­ lease to Sea-Land of certain marine Order No. 1 (revised) section 7.04(f) terminal facilities at Seattle, Wash. The sured subsidiary of the applicant. Com­ (dated May 1,1972) ; ments on the proposed acquisition should purpose of the modification is to provide It is ordered, That Independent Ocean for: 11) The construction hy Sea-Land be submitted to the Director, Office ¡of Freight Forwarder License No. 1219 of Examinations and Supervision, Federal of a new warehouse, garage, and offices; G. P. Donahue, Inc., be and is hereby (2) the demolition and removal by Sea- Home Loan Bank Board, Washington, revoked effective December 13, 1972, B.C. 20552, within 30 days nf the date Land ctf certain construction to provide without prejudice to reapply for a license for a container yard, such area becoming this notice appears i n . the F ederal at a later date. R egister. preferentially assigned to Sea-Land; (3) It is further ordered, That a copy of extend the term of »the basic agreement [ seal 3 "Grenville L. M illard , Jr „ fiais order he published in the F ederal for an additional 5 years; (4) incorpo­ Assistant Secretary, Federal R egister and served upon G . P. Dona­ rate FMC Agreement No. T—2565 into the Home Loan Bank Board. hue, Inc. basic agreement; .(5) grant -options lor [PR Doc.73-619 Piled l-10-73;-8:45 am] A aron W . R eese, the incorporation of two additional areas Managing D irector. to the premises; and ‘(6) describe with [FR Doc.73-607 Filed l-10-73;8:45 am] more specificity the circumstances under [H.C. 1421 which the Port may permit .third persons FIRST TEXAS FINANCIAL CORP. to use portions of the premises. While PORT OF SEATTLE AND 'SEA-1AND Sea-Land is to be reimbursed by the Port Receipt of Application for Permission SERVICE, INC for the costs of file improvements made To Acquire Control under this amendment, Sea-Land’s Notice of Agreement Filed rental lor the facility "will increase to the J anuary 8, 1973. Notice 1s hereby given that the follow­ extent necessary to amortize the Fort’s Notice is her eby given that the Federal ing agreement has been filed with the expenditures on the Improvements over Savings and Loan Insurance Corporation Commission for approval pursuant to the term. Sea-Land will be oredited for has received an application from the section 15 of the Shipping Act, 1916,- all sums received by the Fort from third First Texas Financial Corp., Dallas, Tex„ as amended C39 Stat. 733, 75 Stat. 763, parties for wharfage, Wharf demurrage, a multiple savings and loan holding .com­ 46U.S.C. 814). and storage for the .area preferentially pany, for approval o f acquisition of con­ Interested parties may inspect and ob­ assigned to Sea-Land. trol of the First Savings and Loan Asso­ tain a copy of the agreement at the Agreement No. T-2451-1, between the ciation, El Faso, Tex., and First Savings Washington office of the Federal Mari­ Port and Sea-Land, amends the basic and Loan Association of Midland, Mid­ time Commission, 1405 I Street NW., agreement which provides for the lease land, Tex., under the provisions of sec­ Room 1015"; or may Inspect the agree­ of container cranes at the facility In ment at the field offices located at New Seattle leased by Sea-Land under the tion 408(e) of the National Housing Act, terms of Agreement No. T-2005, -as as amended (12 U SD. 1730a(e)), and York, N.Y., New Orleans, La., and San Francisco, Calif. Comments otl such amended. The purpose of the amendment § 584.4 of the regulations for savings agreements, including requests for hear­ is to: (1) Provide for an increase in the and loan holding companies, said ac­ ing, may be submitted to the Secretary, capacity Of file existing three cranes and quisitions to be effected by the exchange Federal Maritime Commission, Washing­ construction of a fourth crane, with the of shares of First Texas Financial Corp., ton, D.C. 20573, within 20 days after cost of file foregoing "to be borne by the Fort and amortized by Sea-Land.; (2) ex­ for shares of said associations. Com­ ederal publication of this notice in the F tend file term of the basic agreement by ments on the proposed acquisitions R egister. Any person desiring a hearing 5 years; and (3) clarify the Fort’s right should be submitted to the Director, on the proposed agreement shall provide to permit third-person use Of the cranes Office of Examinations and Supervision, a clear and concise statement of the by redefining Sea-Land’s rights to the Federal Home Loan Bank Board, Wash­ matters upon which they desire to adduce cranes as a preferential assignee rather ington, D.C. 20552, within 30 days of the evidence. An allegation of discrimination than a lessee. date this notice appears in the Federal or unfairness shall be accompanied by a Dated: January 4,1973. R egister. statement describing the discrimination By order of the Federal Maritime Com­ [ seal! G renville L. M illard, Jr., or unfairness with particularity. H a vio­ mission. Assistant Secretary, Federal lation of the Act or detriment to the F rancis C. H ckney, Home Loan Bank Board. commerce of the United States is alleged, Secretary. [FR Doc.73-620 Filed 1-10-73; 8:45 ami the statement shall set forth with par­ [FR Doc.73-608 Filed 1-10-73;8:45 ami

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 NOTICES 1305

I UNITED STATES GULF/JAPAN COTTON amended (39 Stat. 733, 75 Stat. 763, 46 ing company. Applicant controls Century POOL U.S.C. 814). Bank, Los Angeles, Calif. Interested parties may inspect and Under section 4(d ), the exemption may Notice of Agreement Filed obtain a copy of the agreement at the be grant«! “ (1) to avoid disrupting busi­ Washington office of the Federal Mari­ ness relationships that have existed over time Commission, 1465 I Street NW., a long period of years without adversely INotice is hereby given that the follow­ Room 1015; or may inspect the agree­ affecting the banks or communities in­ i n g agreement has been filed with the ment at the field offices located at New volved, or (2) to avoid forced sales of ■ Commission for approval pursuant to York, N.Y., New Orleans, La., and San small locally owned banks to purchasers ■section 15 of the Shipping Act, 1916, as Francisco, Calif. Comments on such not similarly representative of commu­ ■ amended (39 Stat. 733, 75 Stat. 763, 46 agreements, including requests for hear­ nity interests, or (3) to allow retention ■ U.S.C. 814). ing, may be submitted to the Secretary, of banks that are so small in relation to Interested parties may inspect and ob- Federal Maritime Commission, Washing­ the holding company’s total interests and ■ tain a copy of the agreement at the ton, D.C. 20573, within 10 days after pub­ so small in relation to the banking mar­ ■ Washington office of the Federal Mari- lication of this notice in the F ederal ket to be served as to minimize the likeli­ ■ time Commission, 1405 I Street NW., R egister. Any person desiring a hearing hood that the bank’s powers to grant or ■ Room 1015; or may inspect the agree- on the proposed agreement shall provide deny credit may be influenced by a desire ■ ment at the field offices located at New a clear and concise statement of the to further the holding company's other ■ York, N.Y., New Orleans, La., and San matters upon which they desire to interests.” ■ Francisco, Calif. Comments on such adduce evidence. An allegation of dis­ Interested persons may express their ■ agreements, including requests for hear- crimination or unfairness shall be ac­ views on this matter. Hie application ■ing, may be submitted to the Secretary, companied by a statement describing the may be inspected at the office of the ■Federal Maritime Commission, Washing- discrimination or unfairness with par­ Board of Governors or at the Federal ■ton, D.C. 20573, within 20 days after pub­ ticularity. If a violation of the Act or Reserve Bank of San Francisco. Any re­ quest for a hearing on this matter should lica tion of this notice in the Federal detriment to the commerce of the United ■ R egister. Any person desiring a hearing States is alleged, the statement shall set be accompanied by a statement sum­ ■on the proposed agreement shall pro- forth with particularity the acts and cir­ marizing the evidence the person re­ ■ vide a clear and concise statement of the cumstances said to constitute such vio­ questing the hearing proposes to submit ■matters upon which they desire to ad- lation or detriment to commerce. or to elicit at the hearing and a state­ ■ duce evidence. An allegation of discrimi- A copy of any such statement should ment of the reasons why this matter 9 nation or unfairness shall be accompa- also be forwarded to the party filing the should not be resolved without a hearing. ■nied by a statement describing the agreement (as indicated hereinafter) Any views or requests for a hearing ■discrimination or unfairness with partic- and the statement should indicate that should be submitted in writing and re­ ■ ularity. If a violation of the Act or detri- this has been done. ceived by the Secretary, Board of Gov­ ■ment to the commerce of the United Notice of agreement filed by; ernors of the Federal Reserve System, Washington, D.C. 20551, not later than ■ States is alleged, the statement shall set Cyrus C. Guidry, Port Counsel, Board of ■forth with particularity the acts and cir- February 1,1973. Commissioners of the Port of New Orleans, Board of Governors of the Federal ■cumstances said to constitute such vio-: Post Office Box 60046, New Orleans, t.a ■lation or detriment to commerce. 70160. Reserve System, January 5, 1973. A copy of any such statement should Agreement No. T-2728, between the I seal] M ichael A. G reenspan, ■also be forwarded to the party filing the Board of Commissioners of the Port of Assistant Secretary of the Board. ■agreement (as indicated hereinafter) New Orleans (Port) and Container Lift [PRDoc.73-581 Filed 1-10-73:8:45 am] ■ and the statement should indicate that International (CLI), is a permit under ■this has been done, which CLI will install, maintain, and j Notice of agreement filed by: operate at its own cost a container crane CAMBRIDGE AGENCY, INC. ■ Elkan Turk, Jr., Esq., Burlington, Underwood at Berth No. 5 of the Port’s France Road Order Approving Formation of Bank | & Lord, 25 Broadway, New York, N.Y. 10004. Terminal. Charges for the use of the crane are to be competitive and/or com­ Holding Company, Acquisition of Agreement No. 8682-9 in effect modi- Insurance Agency, and Engaging ■fies the basic agreement between the parable to similar services now provided ■American companies and the Japanese at New Orleans and other modern con­ De Novo in Insurance Agency ■companies, comprising the membership tainer ports. These charges are to be pub­ Activities ■ of the United States Gulf/Japan Cotton lished in the Port’s Dock Department Tariff, provided that CLI shall have the Cambridge Agency, Inc., Cambridge, ■Pool to provide for the readmission of Nebr., has applied for the Board's ap­ ■the Waterman Steamship Corp. and for right to change such charges in accord­ ance with sound business practices, sub­ proval under section 3(a) (1) of the Bank ■ a rearrangement of the percentage par- Holding Company Act (12 U.S.C. 1842(a) ■ticipation of carryings and in the mini- ject to the review and approval of the Port. (1)) of formation of a bank holding com­ ■mum number of sailings per annum for pany through acquisition of 100 percent ■the three American companies, States Dated: January 9,1973. of the voting shards of The Cambridge ■Marine lines, Lykes Bros. Steamship Co., State Bank, Cambridge, Nebr. (Bank). [Inc., and Waterman Steamship Corp. By order of the Federal Maritime Commission. At the same time, Applicant has ap­ Dated: January 5, 1973. Francis C. H urney, plied for the Board’s approval under Secretary. section 4(c) (8) of the Act (12 U.S.C. 1843 Francis C. H urney, (c) (8)) and § 225.4(b) (2) of the Board’s Secretary. [PR Doc.72-727 Piled 1-10-73:8:45 am] Regulation Y to acquire voting shares of I By order of the Federal Maritime Com- Imission.[PR Doc.73-606 Piled l-10-73;8:45 am] Cambridge Insurance Agency, Inc., Cam­ bridge, Nebr. (Agency). Applicant has FEDERAL RESERVE SYSTEM also applied for permission, itself, to en­ I board o f commissioners o f the gage de novo in the sale of credit life and BUDGET INDUSTRIES, INC. PORT OF NEW ORLEANS AND CON­ credit accident and health insurance. TAINER LIFT INTERNATIONAL Nonbanking Activities Applicant states that Agency would engage in the activities of a general in­ Notice of Agreement Filed Budget Industries, Inc., Los Angeles, surance agency in a community of less Calif., has applied, pursuant to section 4 ■ Notiec is hereby given that the follow- than 5,000 persons and that Applicant, (d) of the Bank Holding Company Act itself, would engage de novo in the sale ■ rwLag-re?men^ ^as keen filed with the (12 U.S.C. 1843(d)), for an exemption of credit life and credit accident and for aPProval pursuant to from the provisions of the Act lim iting ■ ction 15 of the Shipping Act, 1916, as health insurance. Such activities have the nonbanking activities of a bank hold­ been determined by the Board to be

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1306 NOTICES closely related to the business of banking on property of a borrower and that the CEDAR FALLS HOLDING CO., LTD. (12 CFR 225.4(a) (9)). “bank” may split its overhead among Notice of receipt of these applications various activities. Applicant states that Formation of Bank Holding Company was published in the F ederal R egister Agency and Bank are separate corpora­ Cedar Falls Holding Co., Ltd., Cedar on November 4, 1972 (37 FR 23593), and tions and are operated by different Falls, Iowa, has applied for the Board’s the time for filing comments and views personnel. . approval under section 3(a)(1) of the has expired. One comment was received The Board notes the legislative policy Bank Holding Company Act (12 U.S.C. as discussed below. The Board has con­ stated in the National Bank Act that 1842(a)(1)) to become a bank holding sidered the applications in the light of national banks in communities of less company through acquisition of 96.8 per­ the factors set forth in section 3(c) of the than 5,000 persons may sell insurance cent or more of the voting shares of Act (12 U.S.C. 1842(c)), and the con­ (12 U.S.C. 92) and the provisions of Cedar Falls Trust & Savings Bank, Cedar siderations specified in section 4(c) (8) section 106 of the Bank Holding Com­ Falls, Iowa. The factors that are con­ of the Act. pany Act Amendments of 1970 which sidered in acting on the application are Applicant was organized to acquire prohibit banks from tying an extension of set forth in section 3(c) of the Act (12 the shares of Bank and Agency, and to credit to the purchase of insurafice from U.S.C. 1842(c )). engage de novo in the sale of credit life the bank or its bank holding company. The application may be inspected at and credit accident and health insur­ The Board finds that approval of Ap­ the office of the Board of Governors or ance. Applicant’s principal owners, as plicant’s proposals to acquire Agency and at the Federal Reserve Bank of Chicago. individuals, acquired Bank’s shares in to engage de novo in the sale of credit Any person wishing to comment on the July 1971 and 81 percent of Agency’s life and credit accident and health in­ application should submit his views in shares in September, 1971. Subsequently, surance is unlikely to result in any un­ writing to the Reserve Bank to be re­ Agency acquired the Louis Shaffert due concentration of resources, decreased ceived not later than January 29,1973. Agency, Inc. The proposed transaction or unfair competition, unsound banking Board of Governors of the Fédéral Re­ involves the transfer of these shares to practices, or other adverse effects on serve System, January 5, 1973. Applicant in return for Applicant assum­ the public interest. Furthermore, in the ing the debts arising from its organizers’ Board’s judgment, the benefits to the [ seal] M ichael A. G reenspan, purchase of Bank shares and the Louis public resulting from approval of these iAssistant Secretary of the Board. Shaffert Agency, Inc. proposals, including assurance of the [PR Doc.73-583 Piled l-10-73;8:45 am] Bank, the smaller of two banks located continued operation of an alternative in Cambridge, a community of approxi­ source of banking and insurance serv­ mately 1,400 persons, had deposits as of ices, and the availability of credit life CENTURY BANCORP, INC. June 30, 1972 of approximately $2 mil­ and credit accident and health insur­ lion. Since the proposed acquisition of ance in connection with Bank’s lending Order Approving Acquisition of Bank Bank essentially involves only a change transactions, lends substantial weight to Century Bancorp, Inc., Somerville, from individual to corporate ownership, approval. On the basis of the foregoing Mass., has applied for the Board’s ap­ consummation of the proposal will have and other facts reflected in the record, proval under section 3(a) (3) of the Bank no significant adverse effects on exist­ the balance of the public interest factors Holding Company Act (12 U.S.C. 1842 ing or potential competition. the Board must consider regarding the (a)(3 )) to acquire 95 percent or more Considerations relating to financial and acquisition of Agency and Applicant en­ of the voting shares of North Shore Bank managerial resources and prospects of gaging de novo in the sale of credit life & Banking Co., Lynn, Mass. (Bank). Applicant and Bank appear to be satis­ and credit accident and health insur­ Notice of the application, affording op­ factory and consistent with approval. ance is favorable and the applications portunity for interested persons to sub­ Although Applicant will assume the debt should be approved. mit comments and views, has been given incurred by its organizers when Bank On the basis of the record, the appli­ in accordance with section 3(b) of the and the Louis Shaffert Agency, Inc., were cations are approved for the reasons Act. The time for filing comments and acquired, it appears that such debt may summarized above. The acquisition of views has expired, and none have been be adequately serviced without placing Bank shall not be consummated (a) be­ timely received, lire Board has consid­ an undue strain on Bank earnings. Since fore the 13th calendar day following the ered the application in light of the fac­ Applicant’s principals acquired control of effective date of this order or (b) later tors set forth in section 3(c) of the Act Bank in July 1971, the bank has increased than 3 months after the effective date of (12 U.S.C. 1842(c)). its banking hours, and has added serv­ this order, unless such period is ex­ Applicant controls one bank, Century ices, such as free checking accounts and tended for good cause by the Board, or Bank & Trust Co., Somerville, Mass. passbook savings. While such services by the Federal Reserve Bank of Kansas (Century Bank), with deposits of $22.4 have already been introduced, approval City pursuant to delegated authority. million, representing approximately 0.2 of the application will assure continua­ The determination as to Agency’s and percent of total deposits in commercial tion of the new management of Bank. Applicant’s insurance agency activities banks in the State and in the Boston Accordingly, considerations relating to is subject to the Board’s authority to re­ SMSA,1 and ranking 30th of 56 banking the convenience and needs of the com­ quire reports by, and make examinations organizations in the Boston SMSA. of, holding companies and their subsidi­ munities involved support approval of the Bank is a Morris Plan bank and it ap­ transaction. It is the Board’s judgment aries and to require modification or ter­ mination of the activities of a holding pears that State law authorizes it to ac­ that the transaction would be in the pub­ cept demand deposits and make commer­ lic interest and that the application to company or any of its subsidiaries as the Board finds necessary to assure compli­ cial loans.2 Bank will provide such services acquire Bank should be approved. either prior to or directly after consum­ Agency, which was formed in Sep­ ance with the provisions and purposes of the Act and the Board’s regulations mation of the proposed acquisition. Bank tember 1971, by Applicant’s principal has deposits of approximately $2.9 mil­ owners, didn’t begin business until Janu­ and orders issued thereunder, or to pre­ vent evasions thereof. lion, representing 0.036 percent of total ary 1972, shortly after it had acquired deposits in commercial banks in the Bos­ an existing general insurance agency. By order of the Board of Governors,1 ton SMSA, in which Bank ranks 53d of Agency has its office in Bank’s building effective January 4, 1973. 56 banking organizations.. The nearest and its day-to-day operations are han­ existing office of Century Bank is located dled by two employees not associated [ seal] T ynan Smith, Secretary of the Board. with Bank. Agency is one of five general 1 Banking deposit and market data are as insurance agencies in Cambridge. [PR Doc.73-582 Piled 1-10-73; 8:45 am] of June 30, 1972. All data are adjusted to Among the comments made by a com­ reflect holding company formations and ac­ peting insurance agency are that the 1 Voting for this action; Vice Chairman quisitions approved by the Board through use of bank premises and personnel Robertson and Governors Mitchell, Daane, Nov. 30, 1972. causes the creation of a “captive” rela­ Brimmer, and Sheehan. Absent and not vot­ a See Massachusetts General Laws, Ch. 172, tionship in the provision of insurance ing: Chairman Burns and Governor Bucher. section 1.

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 NOTICES 1307 11 miles from Bank and Century Bank’s (2) The Beach Bank of Vero Beach, branch office in the city of Caspian, holds proposed branch office will be 8 miles Fla.; 20.3 percent of the total commercial bank from Bank. Although Bank and Century (3) The Westside Bank of Vero deposits in Iron County (the relevant Bank are both located in the Boston Beach, Vero Beach, Fla.; and market area), and is the smallest of four SM SA , each bank is located in a separate <4) The Sebastian River Bank, Sebas­ banks in the market. The three largest county and is prohibited by State law tian, Fla. banks in the market hold, respectively, from branching into the county of the The factors that are considered in act­ 31.2 percent, 28.0 percent, and 20.5 per­ other organization. In light of the dis­ ing on the application are set forth in cent of the deposits. (Market data are as tances separating banking offices, Massa­ section 3 (3)) to acquire 90 cant’s percentage share of the State’s shares of Hardeman County Savings total deposits by 0.1 percent, and Appli­ p ffiS ffS L S L .f6'’ TOttaB shares of Bank, Bolivar, Tenn. (Bank). cant would become the 10th largest bank­ Notice of the application affording op­ ing organization in Michigan. Consum­ portunity for interested persons to sub­ EiTer Citrus mation of the acquisition would not re­ mit comments and views has been given sult in a significant increase in the con­ Roberts«™ iOT* tIliS action: Vice Chairman centration of banking resources in tho a»d Governors Mitchell, Daane, State. 1 Voting for this action: Vice Chairman ing. pfr j a**** Sheehan. Absent and not vot- Bank, which operates its main office Robertson and Governors Mitchell, Daane, I alrman Bums and Governor Bucher. Brimmer, and Sheehan. Absent and not vot-^ in the city of Stambaugh and its only Ing: Chairman Burns and Governor Bucher.

FEDERAL REGISTER, V O I. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1308 NOTICES in accordance with section 3(b) of the Applicant’s present 11 subsidiary banks eral Reserve Bank of Atlanta pursuant to Act. The time for filing comments and are not now members of the System, delegated authority. views has expired and none have been and three of those six were converted By order of the Board of Governors,1 timely received. The Board has con­ to nonmember status after having been effective January 5, 1973. sidered the application in the light of the acquired by Applicant. Applicant now factors set forth in section 3(c) of the proposes to convert another of its sub­ [seal] T ynan Sm ith, Act (12 U.S.C. 1842(c)). sidiaries to nonmember status within Secretary of the Board. Applicant, the fifth largest banking a month. Although the bank that is the [FR Doc.73-588 Filed l-10-73;8:45 am] organization and bank holding company subject of the present application is not in the State, controls 11 banks with ag­ now a member of the System and thus gregate deposits of approximately $521 a consideration of the practice previously KANSAS BANCORP, INC. million representing about 6 percent of followed by Applicant with respect to Formation of Bank Holding Company total deposits of commercial banks in its other subsidiary banks is not directly Tennessee. (All banking data are as of before the Board, the Board is concerned Kansas Bancorp, Inc., Concordia, Dec. 31, 1971, adjusted to reflect hold­ that large bank holding companies such Kans., has applied for the Board’s ap­ ing company formations and acquisitions as this one should shun the public re­ proval under section 3(a) (1) of the Bank approved by the Board through Oct. 31, sponsibilities that large banks or large Holding Company Act (12 U.S.C. 1842(a) 1972.) Acquisition of Bank (deposits of families of banks have to be a part of (1) ) to become a bank holding company about $14.5 million) would add only 0.2 and support the policies of the Nation’s through acquisition of 80 percent or of 1 percentage point to Applicant’s share central bank. Such a practice (if per­ more of thé voting shares of the First of Statewide deposits and would not alter mitted to go unchecked) could signifi­ National Bank, Concordia, Kans. The Applicant’s ranking among the State’s cantly diminish the effectiveness of one factors that are considered in acting on banking organizations and bank holding of the major tools of the Board in ad­ the application are set forth in section companies. ministering monetary policy, i.e., the set­ 3(c) of the Act (12 U.S.C. 1842(c) ). Bank is the largest of five banking ting of reserve requirements for member The application may be inspected at organizations competing in the Harde­ banks of the System. If large banks or the office of the Board of Governors or man County market and holds about 46 the members of a large family of banks at the Federal Reserve Bank of Kansas percent of the total commercial bank shirk this public responsibility the task City. Any person wishing to comment on deposits therein. The nearest banking of implementing monetary policy be­ the application should submit his views subsidiary of Applicant to Bank is lo­ comes more difficult and one-sided in its in writing to the Reserve Bank to be re­ cated approximately 185 miles east of impact on the banking system as a whole. ceived not later than January 22, 1973. Bank, and neither it nor any of Appli­ Late last year the Board amended its cant’s other subsidiary banks complete Regulation D governing reserve require­ Board of Governors of the Federal Re­ with Bank to any significant extent, ments in order to substantially remove serve System, January 5, 1973. primarily due to the distances involved. discrimination in the application of such [ seal] M ichael A. G reenspan, Nor does it appear likely that significant requirements among member banks that Assistant Secretary of the Board. were similarly situated as to size and competition would develop in the future [FR Doc.73-589 Filed l-10-73;8:45 am] in view of the distances separating Bank access to national money markets. An­ and Applicant’s subsidiaries, the pres­ other type of discrimination has be­ ence of numerous banks in the inter­ come of significant importance, namely MINNESOTA SMALL LOAN CO. vening areas, and Tennessee’s restrictive between branching systems of member Determination Regarding branching laws. Furthermore, it appears banks and bank holding company fami­ unlikely that Applicant would establish lies. The reserve requirements of the “Grandfather” Privileges a new bank in Hardeman County, since former are based on the aggregate of Section 4 of the Bank Holding Com­ the area is unattractive for de novo entry the branching banks’ deposits wherever pany Act (12 U.S.C. 1843) provides cer­ with both the population to banking located. For holding companies, on the tain privileges (“grandfather” privi­ office ratio and the per capita income of other hand, deposits are fractioned ac­ leges) with respect to nonbanking activ­ the area being considerably lower than cording to the size of each separate ities of a company that, by virtue of the averages for the State. Even though unit or office. This results in lower re­ 1970 Amendments to the Bank Holding Bank is the largest bank in the market, quirements for a banking entity, the Company Act, became subject to the its total deposits are less than $15 mil­ multiple bank holding company, which Bank Holding Company Act. Pursuant to lion, and it does not appear that its is essentially comparable and competi­ section 4(a) (2) of the Act, a “company acquisition by Applicant would place tive with branching systems. covered in 1970” may continue to en­ Bank in a dominant competitive posi­ When the holding company amend­ gage, either directly or through a sub* tion nor adversely affect the other com­ ments were considered in 1970 the Board sidiary, in nonbanking activities that peting banks in the area. On the basis advised the Congress it did not believe such a company was lawfully engaged in of the facts of record, the Board con­ that, as a matter of law, membership in on June 30, 1968 (or on a date subse­ cludes that competitive considerations the Federal Reserve System should be quent to June 30,1968, in the case of ac­ are consistent with approval of the required for the subsidiary banks of a tivities carried on as a result of the ac­ application. holding company. In the light of develop­ quisition by such company or subsidiary, Considerations .relating to the finan­ ments in the past 2 years and the rapid pursuant to a binding written contract cial and managerial resources and fu­ spread of holding company form of entered into on or before June 30, 1968, ture prospects of Applicant, its subsid­ banking organization in many States, of another company engaged in such ac­ iary banks and Bank are generally the merit of that recommendation should tivities at the time of the acquisition), satisfactory and consistent with approval be reexamined and the Board is in the and has been continuously engaged in of the application. Considerations re­ process of doing so. since June 30, 1968 (or such subsequent lating to the convenience and needs of Nonetheless, on the basis of the facts date). the community to be served are also con­ in this case, and in light of the factors Section 4(a)(2) of the Act provides, sistent with approval of the application. set forth in the Act, it is the Board’s judg­ inter alia, that the Board of Governors In connection with its review of the ment that the proposed acquisition of the Federal Reserve System may ter­ proposal herein, the Board’s attention should be approved. The transaction minate such grandfather privileges if, has been called to the fact that Appli­ shall not be consummated (a) before the having due regard to the purposes of the cant has followed a practice of acquiring 13th calendar day following the effec­ certain banks that are members of the tive date of this order or (b) later than 1 Voting for this action: Chairman Burns Federal Reserve System and thereafter 3 months after the effective date of this and Governors Robertson, Daane, Brimmer, systematically withdrawing those banks order unless such period is extended for Sheehan and Bucher. Absent and not voting: Governor Mitchell. from membership in the System. Six of good cause by the Board or by the Fed-

FEDERAL REGISTER, VOL. 38, NO. 7—-THURSDAY, JANUARY 11, 1973 NOTICES 1309

Act, the Board determines that such ac­ (the most recent data available). Regis­ tions and orders issued thereunder, or to tion is necessary to prevent undue con­ trant’s income in 1971, from interest and prevent evasions thereof. centration of resources, decreased or un­ insurance commissions on small loan op­ fair competition, conflicts of interest, or By determination of the Board of Gov­ erations, was $0.6 million. The size of ernors,* effective January 4, 1973. unsound banking practices. With respect Registrant’s total lending operation is to a company that controls a bank with not substantial (about $2 million in re­ [ seal] « T ynan S m ith , assets in excess of $60 million on or after ceivables as of December 31, 1971), and Secretary of the Board. December 31,1970, the Board is required the number of local sources for consumer [FR Doc.73-590 Filed l-10-73;8:45 am] to make such a determination within a credit is diverse (20 firms with offices in 2-year period. the Minneapolis area, including six of the Notice of the Board’s proposed review 10 largest finance companies in the coun­ SOUTHWEST BANCSHARES, INC. of the grandfather privileges of the Min­ try). nesota Small Loan Co., Minneapolis, On the basis of the foregoing and all Order Approving Acquisition of Bank Minn., and an opportunity for interested the facts before the Board, it appears Southwest Bancshares, Inc., Houston, persons to submit comments and views that the volume, scope, and nature of the Tex., a bank holding company within the or request a hearing has been given (37. activities of Registrant and its subsidiary meaning of the Bank Holding Company PR 22414). The time for filing comments, do not demonstrate an undue concen­ Act, has applied for the Board’s approval views, and requests has expired, and all tration of resources, decreased or unfair under section 3(a)(3) of the Act (12 those received have been considered by competition, conflicts of interest nor un­ U.S.C. 1842(a) (3) ) to acquire 100 per­ the Board in light of the factors set sound banking practices. cent of the voting shares (less directors' forth in § 4(a) (2) of the Act, There appears to be no reason to re­ qualifying shares) of the successor by On the evidence before it, the Board quire Registrant to terminate its grand­ merger to Houston Intercontinental Na­ makes the following findings. Minnesota fathered activities. It is the Board’s judg­ tional Bank, Houston, Tex. (Bank). The Small Loan Co., Minneapolis, Minn. ment that, at this time, termination of bank into which Bank is tb be merged (Registrant),1 became a bank holding the grandfather privileges of Registrant has no significance except as a means to company on December 31, 1970, as a re­ is not necessary in order to prevent an facilitate the acquisition of the voting sult of the 1970 Amendments to the Act, undue concentration of resources, de­ shares of Bank. Accordingly, the pro­ by virtue of Registrant’s ownership of creased or unfair competition, conflicts posed acquisition of shares of the suc­ approximately 68.5 percent of the out­ of interest, or unsound banking practices. cessor organization is treated herein as standing voting shares of First National However, this determination is not au­ the proposed acquisition of the shares of Bank of Sioux City, Sioux City, Iowa thority to enter into any activity that Bank. (Bank) (assets of $92.6 million as of De­ was not engaged in on June 30, 1968, and Notice of the application, affording op­ cember 31,1970). Bank, control of which continuously thereafter, or any activity portunity for interested persons to sub­ was acquired by Registrant in September that is not the subject o f this determina­ mit comments and views, has been given 1967, had total deposits of $78.2 million tion, nor authority for Registrant to en­ in accordance with section 3(b) of the as of June 30, 1972, representing about gage in any additional type of insurance Act. The time for filing comments and 24 percent of the total deposits in the agency activity. views has expired, and none has been immediate Sioux City area (which in­ A significant alteration in the nature timely received. The Board has con­ cludes the towns of South Sioux City, or extension of Registrant’s activities or sidered the application in light of the Nebr., and Sargeant Bluff, Iowa). Bank a change in location thereof (signifi­ factors set forth in section 3(c) of the is the second largest of the seven banks cantly different from any described in Act (12 U.S.C. 1842(c)). located in Sioux City, as well as second this determination) will be cause for a Applicant, the fifth largest banking among the 10 banks in the immediate réévaluation by the Board of Registrant’s organization and third largest multi­ Sioux City area. Bank’s management, activities under the provisions of section bank holding company in Texas, controls financial condition, and prospects are re­ 4(a) (2) of the Act, that is, whenever the 10 banks with aggregate deposits of garded as satisfactory, and the Board has alteration or change is such that the $1,188.4 million, representing approxi­ found no evidence of any unsound bank­ Board finds that a termination of the mately 4 percent of the total deposits of ing practices. grandfather privileges is necessary to commercial banks in Texas. (All banking Registrant (total assets of $7.7 million, prevent an undue concentration of re­ data are as of June 30, 1972, and reflect as of December 31, 1971), is a small loan sources or any of the other evils desig­ bank holding company acquisitions ap­ company and engages directly in making nated in the Act. No merger, consolida­ proved through October 31, 1972.) Ap­ consumer loans and, to a limited extent, tion, acquisition of assets other than in plicant is the third largest banking or­ engages m selling credit life, health, and the ordinary course of business, nor ac­ ganization in the Houston market with accident' insurance related to such loans, quisition of any interest in a going con­ five subsidiary banks holding 11.2 per­ .apparently has engaged in such ac­ cern, to which the Registrant or any non­ cent of total deposits of commercial tivities continuously since before June 30, bank subsidiary thereof is a party, may banks in that market. Consummation of 1968. Bank is the only subsidiary of Reg­ be consummated without prior approval the proposal herein would increase insig­ istrant. Registrant conducts its , small of the Board. Further, the provision of nificantly applicant’s share of commer­ loan business from its sole office, located any credit, property, or service by the in Minneapolis, Minn. In addition to Registrant or any subsidiary thereof cial bank deposits in the Houston area serving local consumers, Registrant shall not be subject to any condition and its ranking among commercial makes consumer loans to school teachers which, if imposed by a bank, would con­ banks in that market and in the State in a 30-State area through a mail-order stitute an unlawful tie-in arrangement would be unchanged.1 ^ n e s s. Registrant did not rank as one under section 106 of the Bank Holding larSest finance companies in Company Act Amendments of 1970. 8 Voting for this action: Chairman Burns me united States as of December 31,1971 The determination herein does not pre­ and Governors Robertson, Mitchell, Daane, clude a later review, by the Board, of Brimmer, and Bucher. Absent and not vot­ ing: Governor Sheehan. July 13> 1972, Registrant became Registrant’s nonbank activities and a ubsidiary of MEI Corp. Because MEI t future determination by the Board in *In addition to its 10 subsidiary banks, came a bank holding company with resp< applicant holds approximately 20 percent of favor of termination of grandfather the outstanding voting shares of Commerce /rL>„ank ^ s e q u e n t to December 31, 1£ benefits of Registrant. The determina­ State Bank, Houston, Tex. ($20 million of de­ 1 9 7 2 ^ ^ 1 ^ the Board’s order of May tion herein is subject to the Board’s au­ posits) . On December 21, 1972, the Board ap­ oriviw^EI !f not entitled to grandfatt thority to require modification or ter­ proved applicant’s 'application to acquire teresiffí?ifntl 1S rec*uired to divest its i mination of the activities of Registrant Gulf Coast National Bank, Houston, Tex. Srests L rn? or in MEI’S nonbanking 1 as the Board finds necessary to assure ($12.4 million of deposits). Applicant’s mi­ date unS 'tF J 3, 1974> 2 ye“ » from t nority interest of 24.7 percent of the voting company wWch became a bank hold! compliance with the provisions and pur­ shares of Kilgore National Bank, Kilgore, poses of the Act and the Board’s regula­ Tex., has recently been liquidated.

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY I I , 1973 1310 NOTICES

Bank ($2.7 million of deposits) ranks On the basis of the record, the appli­ time of the acquisition), and has been 141st in deposits among 149 commercial cation is approved for the reasons sum­ continuously engaged in since June 30, banks in the Houston market. Bank is lo­ marized above. The transaction shall not 1968 (or such subsequent date). cated near the Houston Intercontinental be consummated (a) before the 30th cal­ Section 4(a) (2) of the Act provides, Airport on the fringe of the Houston endar day following the effective date of inter alia, that the Board of Governors banking market, approximately 20 miles this order or (b) later than 3 months of the Federal Reserve System may ter­ north of applicant’s lead bank which is after the effective date of this order, un­ minate such grandfather privileges if, located in downtown Houston. Bank was less such period is extended for good having due regard to the purposes of the organized in 1970 by officials and other cause by the Board or by the Federal Act, the Board determines that such ac­ individuals closely associated with appli­ Reserve Bank of Dallas pursuant to del­ tion is necessary to prevent undue con­ cant, and its lead bank and one or more egated authority. centration of resources, decreased or un­ officers or directors of applicant or its fair competition, conflicts of interest, or By order of the Board of Governors,® unsound banking practices. With respect lead bank have served on Bank’s board effective January 4, 1973. since it began operations in 1970. At the to a company that controls a bank with present time, there exists a significant [ seal] T ynan Smith, assets in excess of $60 million on or after degree of common stock ownership Secretary of the Board. December 31,1970, the Board is required among shareholders of Bank and appli­ [PR Doc.73-591 Piled l-10-73;8:45 am] to make such a determinatin within a 2- cant. In view of Bank’s small size, its lo­ year period. cation on the outskirts of the Houston Notice of the Board’s proposed review banking market, and the presence of a WEST MICHIGAN FINANCIAL CORP. of the grandfather privileges of the Zions large number of intervening banks, no Utah Bancorporation, Salt Lake City, meaningful competition exists between Formation of Bank Holding Company Utah, and an opportunity for interested Bank and any of applicant’s subsidiary persons to submit comments and views West Michigan Financial Corp., Cadil­ or request a hearing, has been given (37 banks. In the light of these factors, it lac, Mich., has applied for the Board’s appears unlikely that any significant FR 22414 and 25204). The time for filing approval under section 3(a) (1) of the comments, views, and requests has ex­ competition between Bank and any of Bank Holding Company Act (12 U.S.C. applicant’s subsidiary banks would de­ pired, and all those received have been 1842(a)(1)) to become a bank holding considered by the Board in light of the velop in the future. Acquisition of Bank company through acquisition of 100 per­ by applicant will not have any adverse factors set forth in section 4(a) (2) of cent of the voting shares of the suc­ the Act. effect on the concentration of banking cessor by merger to The Cadillac State resources in the Houston area. On the evidence before it, the Board Bank, Cadillac, Mich. The factors that makes the following findings. Zions Utah On the record before it, the Board con­ are considered in acting on the applica­ Bancorporation, Salt Lake City, Utah cludes that consummation of applicant’s tion are set forth in section 3(c) of the (Registrant), became a bank holding proposal would not result in a monopoly Act (12 U.S.C. 1842(c)). company on December 31, 1970, as a re­ nor be in furtherance of any combina­ The application may be inspected at sult of the 1970 amendments to the Act, tion, conspiracy, or attempt to monopo­ the office of the Board of Governors or by virtue of Registrant’s ownership of lize the business of banking, nor have at the Federal Reserve Bank of Chi­ approximately 52 percent of the out­ any significant anticompetitive effect, in cago. Any person wishing to comment on standing voting shares of Zions First Na­ any area of the State. the application should submit his views tional Bank, Salt Lake City, Utah (Bank) The financial condition and managerial in writing to the Reserve Bank to be re­ (assets of $325.9 million as of Decem­ resources of applicant and its subsidiaries ceived not later than January 29,1973. ber 31,1970). Bank, control of which was appear satisfactory and future prospects acquired by Registrant in April I960,1 of all seem favorable. The financial con­ Board of Governors of the Federal Re­ serve System, January 5, 1973. had total deposits of $339.2 million (as dition of Bank has deteriorated during of December 31, 1971), representing the past year due to its experiencing [seal] M ichael A. G reenspan, about 16 percent of the total deposits in capital inadequacies and substantial Assistant Secretary of the Board. commercial banks in Utah. On the basis losses on loans. Applicant has recently [PR Doc.73-592 Filed l-10-73;8:45 am] of its share of deposits, Bank ranks third moved to provide additional personnel of 13 banks in the Salt Lake County from its lead bank in order to strengthen market, with about 21 percent of the Bank’s managerial resources—especially ZIONS UTAH BANCORPORATION deposits therein, and fourth of five banks in the areas of asset management and in the Provo banking market, with about loan administration. In addition, appli­ Determination Regarding 14 percent of deposits therein. While cant has committed itself to add at least “ Grandfather” Privileges Bank is a significant competitor among $350,000 of additional funds to Bank’s the State’s banking organizations, it does capitel accounts. This increased financial Section 4 of the Bank Holding Com­ not appear to be dominant. Bank’s man­ and managerial assistance from applicant pany Act (12 U.S.C. 1843) provides cer­ agement financial condition and pros­ which would be made available to Bank tain privileges (“grandfather” privileges) pects are regarded as satisfactory, and upon consummation of the proposed with respect to nonbanking activities of the Board has found no evidence of un­ transaction should enable Bank to rem­ a company that, by virtue of the 1970 sound banking practices. edy its present financial and managerial Amendments to the Bank Holding Com­ pany Act, became subject to the Bank Registrant (consolidated assets of problems. Although the banking needs about $342 million in 1970) engages di­ of residents of the Houston area are ade­ Holding Company Act. Pursuant to sec­ tion 4(a)(2) of the Act, a “company rectly in insurance agency activities and quately served by existing institutions, real estate business, and apparently has provision of applicant’s broad range of covered in 1970” may continue to engage,' either directly or through a subsidiary, in engaged in such activities continuously services through Bank should provide a since before June 30, 1968. Registrant’s more convenient source for these sophis­ nonbanking activities that such a com­ pany was lawfully engaged in on June 30, insurance agency activities consist of ticated services to the increasing num­ writing credit life insurance almost en­ ber of customers locating in Bank’s 1968 (or on a date subsequent to June 30, 1968, in the case of activities carried tirely for loans made by Registrant’s sub­ immediate service area. Addition of these sidiaries and casualty insurance iot services should contribute positively to on as a result of the acquisition by such company or subsidiary, pursuant to a property pledged as collateral against the convenience and needs of the com­ binding written contract entered into on such loans. Registrant’s principal real munities served by Bank and, these con­ or before June 30,1968, of another com­ estate activity is the development of an siderations are consistent with approval pany engaged in such activities at the industrial park in a 170 acre area ac­ of this application. quired in 1955 in Salt Lake City. Reg­ It is the Board’s judgment that the istrant engages in the consumer finance «Voting for this action: Vice Chairman proposed acquisition would be in the pub­ Robertson and Governors Mitchell, Daane, lic interest and that the application Brimmer, and Sheehan. Absent and not vot­ 1 Registrant acquired all of the remaining shares of Bank in April 1972. should be approved. ing: Chairman Burns and Governor Bucher.

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 NOTICES 1311 business in Utah and has been engaged There appears to be no reason to re­ therein continuously since before quire Registrant to terminate its grand­ June 30, 1968, through the Lockhart Co., fathered interests. It is the Board’s judg­ NATIONAL AERONAUTICS AND Salt Lake City, and Lockhart Finance ment that, at this time, termination of Co., Salt Lake City (both acquired in the grandfather privileges of Registrant SPACE ADMINISTRATION January 1966), and in Colorado through is not necessary in order to prevent [Notice 73-3] the following nonbanking subsidiaries: undue concentration of resources, de­ NASA LIFE SCIENCES SUBCOMMITTEE Rocky Mountain Industrial Bank, Colo­ creased or unfair competition, conflicts of rado Springs (acquired in January interests, or unsound banking practices. Notice of Open Meeting 1966); Littleton First Industrial Bank, However, this determination is not au­ Littleton (acquired in May 1968); Fort thority to enter into any activity that A special subcommittee of the NASA Collins First Industrial Bank, Fort Col­ was not engaged in on June 30, 1968 Life Sciences Committee will meet on lins (acquired in October 1971); Guar­ and continuously thereafter, or any January 23, 1973, at the Headquarters of anty Industrial Bank, Loveland (acquired activity that is not subject to this de­ the National Aeronautics and Space Ad­ in November 1971); Arvada First Indus­ termination. Nor is this determination ministration, Washington, D.C. 20540. trial Bank, Arvada (acquired in December authority for Registrant to acquire any The meeting will be held in Room 5092 1971); and First Industrial Bank, Long­ additional real property or additional of the Federal Office Building 6, NASA mont (acquired in December 1971) .2 The types of insurance agency activity. Headquarters, 400 Maryland Avenue two finance company subsidiaries located A significant alteration in the nature SW., Washington, DC. The meeting is in Utah (combined assets of about $21 or extension of Registrant’s activities or open and members of the public will be million in 1970) compete with over 150 a change in location thereof (signifi­ admitted on a first-come first-served lending offices of other small loan com­ cantly different from any described in basis up to the seating capacity of the panies operating in Utah, including of­ this determination) will be cause for a room, which is 35 persons. fices of two large national corporations réévaluation by the Board of Registrant’s The subcommittee is meeting for the engaged in consumer finance, and do activities under the provisions of section purpose of reviewing and evaluating the not appear to be large enough to affect 4(a) (2) of the Act, that is, whenever standards for sterilizing spacecrafts to the position of Bank in the Utah markets the alteration or change is such that the avoid carrying earth organisms to other served by it. The two finance company Board finds that a termination of the celestial bodies. Special attention to this subsidiaries located in Colorado, which grandfather privileges is necessary to matter is being addressed at this time in are eligible for grandfather benefits, had prevent an undue concentration of preparation for the Project Viking flights combined assets of less than $6 million resources or any of the other evils des­ to Mars in 1975. in 1970, and are not regarded as signifi­ ignated in the Act. No merger, consoli­ The NASA Life Sciences Committee of cant competitors in the markets served dation, acquisition of assets other than which this subcommittee is a part serves by Registrant’s banking subsidiary. in the ordinary course of business, nor in an advisory capacity only. In this Through the Lockhart companies, acquisition of any interest in a going con­ capacity, it is concerned with man in Registrant also engages in the equip­ cern, to which the Registrant or any non­ relation to space and habitation, exo­ ment leasing business. The Lockhart Co. bank subsidiary thereof is a party, may biology, with other life forms, and in­ conducts such activities directly, and the be consummated without prior approval cluding: Physiology, behavior, clinical Lockhart Finance Co. engages in such of the Board. Further, the provision of aerospace medicine, microbiology, radio- activities through a wholly owned sub­ any credit, property, or service by the biology, biochemistry, nutrition and food sidiary formed in 1966, Zions Leasing Co., Registrant or any subsidiary thereof shall Salt Lake City, Utah (assets of about not be subject to any condition which, technology, biology of gravity and $3 million as of December 1970) . In ad­ if imposed by a bank, would constitute rhythms, ecology and biotechnology. The dition, Registrant operates a real estate an unlawful tie-in arrangement under current Chairman is Dr. Shields Warren. business (Lockhart Realty Co., Salt Lake section 106 of the Bank Holding Com­ The following agenda is proposed for City, Utah), which was acquired in Jan­ pany Act Amendments of 1970. the meeting on January 23, 1973. For uary 1966, and now limits its activities The determination herein does not to collecting payments on contracts of preclude a later review by the Board, further information, please contact Dr. sale of real estate previously made. The of Registrant’s nonbank activities and a Stanley C. White, Area Code 202— equipment leasing activities and the cur­ future determination by the Board in 755-2350. rent real estate operations of Lockhart favor of termination of grandfather Time Topic Realty appear eligible for grandfather benefits of Registrant. The determina­ 9:00 a.m___ Planetary Quarantine Con­ benefits, and the nature and scope of tion herein is subject to the Board’s such activities are such that curtailment straints Established by CO or divestiture of such activities is not authority to require modification or SPAR and NASA— (Pur­ termination of the activities of Regis­ pose: To review the inter­ required. national and national rules Registrant also owns an electrical sup­ trant. The determination herein is sub­ for safeguarding the planets plies distributing business and a com­ ject to the Board’s authority to require from biological infection pany engaged in the sale of money modification or termination of the activ­ via spacecraft which could cause undesirable changes orders. These businesses were not ac­ ities of registrant or any of its nonbank­ quired by Registrant prior to June 30, in the environments of the 1968, and are not eligible for grand­ ing subsidiaries as the Board finds nec­ planets). essary to assure compliance with the 9:25 a.m----- Philosophy and Guideline for father benefits. Planetary Quarantine Re­ On the basis of the foregoing and all provisions and purposes of the Act and search— (Purpose: To fa­ the facts before the Board, it appears the Board’s regulations and orders issued miliarize the subcommittee that the volume, scope, and nature of thereunder, or to prevent evasions with the research require­ ments and guidelines im­ the activities of Registrant and its sub­ thereof. posed by NASA in forming sidiaries do not demonstrate an- undue By determination of the Board of the planetary quarantine concentration of resources, decreased or Governors,8 effective January 4, 1973. research program). unfair competition, conflicts of interest 9:50 a.m----- Lethality of Outer Space [seal] T ynan S m ith, for Micro-organisms— (Pur­ nor unsound banking practices. Secretary of the Board. pose: To review the results of research performed to es­ [FR Doc.73-593 Filed l-10-73;8:45 am] Registrant received approval of the Fe tablish the effects of the . a . , serve Bank of San Francisco pursua forces in outer space (vac­ uum-temperature, ultravio­ ' _ ®*egated authority to acquire three •Voting for this action: Chairman Burns r.J10.®. corupanies during 1971, under t let radiation, solar winds, and Governors Robertson, Mitchell, Daane, ionizing radiation) on the section 4(c) (8) of the Act a: Brimmer, and Bucher. Absent and not vot­ •4(b) (l) of the Board’s Regulation viabUity of micro-organisms ing: Governor Sheehan. on a spacecraft).

No. 7—Pt. I-----7 FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1312 NOTICES

Time Topic “Bache-Huntoon Paige Ginny Mae I 10:15 a.m Numbers and Characteristics SECURITIES AND EXCHANGE Trust.” Each series will be governed by I of the Bio-load on a Space­ trust instruments under which Bache & I craft— (Purpose: To discuss Co. Inc. and Huntoon Paige Se- I the research which has beep COMMISSION curities Corp., and possibly others, will I conducted to define the [File No. 500-1] act as Sponsors and the Bank of New I estimates of the number of viable micro-organisms ACCURATE CALCULATOR CORP. York will act as Trustee. The trust in- I which may be expected to struments for all series will contain simi- I be buried inside nonmetal- Order Suspending Trading lar terms and conditions of trust, Pur- I lic spacecraft elements and suant to such trust instruments, the I the number of organisms to January 4, 1973. Sponsors will deposit with the Trustee I be found on spacecraft It appearing to the Securities and Ex­ a portfolio of mortgaged-backed certifi- I surfaces). change Commission that the summary cates (commonly known as Ginny Maes) I 11:20 a.m— Release of Organisms from suspension of trading in the common guaranteed as to payment of principal I Space Hardware— ( Purpose : stock, $0.01 par value, and all other se­ To review the results of the and interest by Government National I research which has been curities of Accurate Calculator Corp., Mortgage Association, a corporate in- I conducted to determine the being traded otherwise than on a na­ strumentality of the U.S. Government. I release of organisms from tional securities exchange is required in Simultaneously with such deposit of the I buried, mated surfaces and the public interest and for the protection portfolio the Sponsors will receive from I open surfaces of the space­ of investors: the Trustee registered certificates evi- I craft under conditions of It is ordered, Pursuant to section dencing units of undivided interest in I normal and high velocity 15(c) (5) of the Securities Exchange Act the fund portfolio of a series. impact). of 1934, that trading in such securities 11:45 a.m__ Heat Resistance of Orga­ Applicant alleges that when these two I nisms— (Purpose: To discuss otherwise than on a national securities events occur the Trust is in existence I the details of the experience exchange be summarily suspended, this and the Sponsors cease to have signifi- I gained through research on order to be effective for the period from cant power over the underlying portfolio. I the resistance of bacterial January 5, 1973 through January 14, No securities may be added to or sub- I spores to dry heat, includ­ 1973. stituted for those originally comprising I ing the variables of tem­ the fund portfolio, nor may the number I perature, time, and water By the Commission. activity. These results pro­ of units originally issued be increased. On I [ seal] R onald F. Hunt, the date of deposit of the portfolio secu- I vide the basis for establish­ Secretary. ing the standards for ster­ rities for Series 1, and before any unit I ilization) . [FR Doc.73-552 Filed l-10-73;8:45 am] of that Series is offered to the public, I 1:30 p.m___ Growth of Organisms of Applicant will have a net worth of ap- I the Martian Surface— (Pur­ proximately $25 million represented by I pose : To summarize the [812-3136] the market value of the Ginnv Mae cer- I best data available on the tificates deposited with the Trustee on I ability of terrestrial micro­ BACHE-HUNTOON PAIGE GINNY MAE TRUST, SERIES 1 (AND SUBSE­ that date. While the size of the portfolios I organisms to replicate on of future series has not been established, I the Martian surface). QUENT SERIES) the Sponsors anticipate that in no event I 2:20 p .m___ Estimation of the Contamina­ tion Hazard— (Purpose: To Notice of Filing of Application for an would the portfolio of any series be less I review the methods that Order of Exemption than $5 million. Applicant proposes to I have been used by the offer the units of Series 1 of the fund I planetary quarantine pro­ January 3, 1973. for sale to the public and for this pur- I gram to interrelate all the Notice is hereby given that Bache- pose a registration statement under the I factors involved in the po­ Huntoon Paige Ginny Mae Trust, Series Securities Act of 1933 has been filed with I tential contamination of 1 (and subsequent series) (hereinafter the Commission but has not yet become I Mars and to develop the* effective. After the Sponsors deposit the I parametric values to be called Applicant), a unit investment used in the Viking steriliza­ trust registered under the Investment portfolio with the Trustee, and the Trust I tion program). Company Act of 1940 (Act), has filed an is in existence, an amendment to the I 3:15 p.m___ Viking Planetary Quarantine application pursuant to section 6(c) of registration statement under the Securi- I Operations— (Purpose : To the Act for an order of the Commission ties Act of 1933 will be filed. Upon the I present the plans and pro­ exempting Applicant from compliance effectiveness of such registration state- I cedures, based on the fore­ with the provisions of section 14(a) of ment, the units will be offered to the I going parameters, to be the Act and Rule 22c-l under the Act public by means of the final prospectus. I used in the preparation of and pursuant to section 45(a) of the Act The trust instruments do not provide for I the Viking vehicle prior to the issuance of additional units. flight in order that NASA granting confidential treatment to the complies with the planetary profit and loss statements of Bache & Co. Section 14(a) of the Act provides, in I quarantine requirements). Inc., 100 Gold Street, New York, NY pertinent part, that no registered invest- I 4:00 p.m___ Subcommittee Review and 10038, and Huntoon Paige Securities ment company shall make a public offer- I Recommendations — (Pur­ Corp., 44 Wall Street, New York, NY ing of its securities unless either (i) such I company has a net worth of at least I pose: To develop the sub­ 10005, the Sponsors of the Applicant, $100,000 or (ii) provision is made as a I committee comments and which statements Applicant has filed or may from time to time file with its regis­ condition of registration of its securities I recommendations regarding under the Securities Act of 1933 which I the adequacy of current tration statements under the Securities Act of 1933. adequately insures, in the opinion of the I plans and procedures pro­ Commission, (A) that after the effective I posed for Viking). All interested persons are referred to the application on file with the Commis­ date of such registration statement such ■ Company will not issue any security or ■ H omer E. Newell, sion for a statement of the representa­ tions contained therein which are sum­ receive any proceeds of any subscription I Associate Administrator, Na­ until not more than 25 responsible per- I tional Aeronautics and Space marized below. sons have made agreements to purchase ■ Administration. Section 14(a). Applicant includes securities in an aggregate net amount ■ J a n u a r y 5,1972. Bache-Huntoon Paige Ginny Mae Trust, which will give the company a net worth ■ [PR Doc.73-603 Filed 1-10-73;8:45 am] Series 1 and all subsequent series of of at least $100,000; (B) that said |

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 NOTICES 1313

amount will be paid into such company ing price. To avoid the Sponsors’ receiv­ the public interest and consistent with before subscriptions will be accepted ing more than the specified sales charge the protection of investors and the pur­ from any person in excess of 25; (C) that on the resale of the units, the Sponsors poses fairly intended by the policy and arrangements will be made whereby any undertake not to resell any units which provisions of the Act. amount so paid in, as well as any sales they purchase at a price below the then Section 45(a). Applicant also seeks load, will be refunded to any subscriber current offering side evaluation. Both the an order of the Commission pursuant to on demand in the event the net proceeds repurchase and resale prices are to be section 45(a) of the Act granting con­ so received by the Company do not re­ computed as of the close of business on fidential treatment to the profit and loss sult in the company having a net worth the last business day of each week and statements of Bache & Co., Inc., and of at least $100,000 within 90 days after will be effective for all purchases and Huntoon Paige Securities Corp., the such registration, statement becomes sales by the Sponsors during the follow­ Sponsors, submitted in connection with effective. ing week. The evaluation is made by registration statements of Bache-Hun­ In connection with this request for ex­ Applicant’s evaluator, Standard and toon Paige Ginny Mae Trust, Series 1, emption, the Sponsors hereby agree that Poor’s Corp. filed with the Commission from time to they will refund, on demand and with­ Rule 22c-l provides, in part, that re­ time. out deduction, all sales charges to pur­ deemable securities of registered invest­ When a determination has been made chasers of units of a series if, within ment companies must be sold, redeemed by the Sponsors to offer a new series of 90 days from the time when that series or repurchased at a price based on the the fund, the Sponsors will prepare and becomes effective under the Securities current net asset value (computed on file with the Commission registration Act, the net worth of the series shall be each day during which the New York statements under the Act and the Securi­ reduced to less than $100,000 or if the Stock Exchange is open for trading not ties Act of 1933. It is contemplated that series shall have been terminated. The less frequently than once daily as of the current profit and loss statements of the Sponsors further agree to instruct the time of the close of trading on such Ex­ Sponsors will be filed in connection with Trustee on the date of deposit of each change) which is next computed after the registration statements of new series. series that in the event redemption by receipt of a tender of such security for The application requests confidential the Sponsors of units constituting a part redemption or of an order to repurchase treatment for such statements and sub­ of the unsold units shall result in that or sell such security. sequent profit and loss statements which series having a net worth of less than Applicant asserts that the pricing by Applicant has filed or may from time to $5 million, the Trustee shall terminate the Sponsors in the secondary market time file with the Commission. the series in the manner provided in in no way affects Applicant’s assets, and Section 45(a) of the Act provides in the Trust Agreement and distribute all that the public unit holders benefit from pertinent part that information filed securities and other assets deposited with such pricing procedure by receiving a with the Commission “shall be made the Trustee pursuant to the Agreement normally higher repurchase price for available to the public, unless and ex­ as provided therein. The Sponsors fur­ their units without the cost burden of cept insofar as the Commission * * * ther agree, in such event, to refund any daily evaluations of the unit redemption by order upon application, finds that sales charges to any purchaser of units value. In addition, the application states public disclosure is neither necessary nor purchased from the Sponsors or any that the Sponsors have undertaken to appropriate in the public interest or for dealer participating in the underwriting adopt a procedure whereby the evaluator, the protection of investors.” on demand and without deduction. without a formal evaluation, will pro­ Applicant submits that public disclo­ Rule 22c-l. The application also seeks vide estimated evaluations on trading sure of the Sponsors’ profit and loss an order pursuant to section 6(c) of the days. In the case of a purchase by the statements is neither necessary nor ap­ Act exempting the secondary market Sponsors, if the evaluator cannot state propriate in the public interest or for the operations of Applicant’s Sponsors from that the previous Friday’s offering side protection of investors. As stated above, the provisions of Rule 22c-l under the evaluation is at least equal to the cur­ Applicant alleges that after the securi­ Act. The Sponsors propose to adopt the rent bid side evaluation, the Sponsors ties forming the portfolio of the fund are practice of valuing Applicant’s units, for will order a new offering side evaluation deposited with the Trustee, the Trust is repurchase and resale by the Sponsors for the purpose of such purchase. Also, then in existence and the Sponsors cease in the secondary market, at prices com­ in the case of such a purchase, if the to have significant power over the un­ puted once a week as of the close of evaluator cannot state that the previous derlying portfolio. No securities may be business on the last business day of the Friday’s offering side evaluation, to be added to or substituted for those origi­ week, effective for all transactions made paid to a holder, is no more than one- nally comprising the fund portfolio. In­ during the following week. half point lower than the current offer­ vestors in the fund are not offered an The trust instruments provide that ing side evaluation, a full evaluation will opportunity to acquire any interest what­ Applicant’s units may be tendered by the be ordered to determine the current of­ soever in the Sponsors. Apart from the unit holders to the Trustee for redemp­ fering side evaluation to be paid the Sponsors’ minimal obligation under the tion. The unit holder will receive cash holder. In the case of sale by the Spon­ trust instruments to designate Ginny from the Fund on the basis of the cur­ sors, if the evaluator cannot state that Mae certificates for liquidation by the rent bid side evaluation of the mort- the previous Friday’s offering side evalu­ Trustee to the extent necessary to pro­ gaged-backed (Ginny Mae) certificates ation is no more than one-half point ($5 vide funds for redemption (which obli­ forming the portfolio of the fund. Appli­ on the purchase of a unit representing gation may be performed by the Trustee cant’s Sponsors, Bache & Co., Inc., and $1,000 face amount of underlying securi­ if not performed by the Sponsors), and Huntoon Paige Securities Corp., intend ties) greater than the current offering certain other contingent supervisory (though they will not be obligated) to side evaluation, a full evaluation will be responsibilities, the Sponsors have virtu­ maintain a secondary market for the ordered. Applicant asserts that this pro­ ally no discretionary authority relating fund and continuously to offer to re­ cedure will minimize the risk to the sell­ to the management of the fund. Appli­ purchase units from holders at a price ing holders of the units without impos­ cant states that the Sponsors thus func­ based on the offering side prices of the ing the expense of daily evaluations upon tion primarily as underwriters of the portfolio securities of the fund. Such the fund’s investors. fund. Applicant asserts that there is no price, according to the application, may Section 6(c) of the Act provides, in legitimate interest on the part of in­ exceed the redemption price (based upon part, that the Commission may condi­ vestors in the public disclosure of the the bid side evaluations of the underly- tionally or unconditionally exempt any profit and loss statements of the Spon­ mg certificates) by an average of $10 per person, security, or transaction, or any sors, acting as underwriters from whom unit. In addition, the Sponsors will re­ class or classes of persons, securities, or the units are purchased. sell units at a public offering price based transactions, from any provisions of the In addition, Applicant submits that to Uf*?u the offering side evaluation prices Act or of any rules or regulations under the extent that the Sponsors’ solvency °t the underlying certificates plus a sales the Act, if and to the extent such ex­ may conceivably be thought relevant to charge of 3 y2 percent of the public offer­ emption is necessary or appropriate in the maintenance of the secondary

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1314 NOTICES market in the units of the fund, the [812-3342] employee insurance agents of Hancock Life who are registered representatives Sponsors’ statements of financial con­ CAPITAL EXCHANGE FUND, INC., dition, which appear in the prospectus, of John Hancock Distributors, Inc. contain adequate information in this ET AL (Hancock Distributors), a wholly owned subsidiary of John Hancock Advisers, regard. Moreover, there is clear disclo­ Notice of Application for Exemption sure in the prospectus of the Sponsors’ Inc., and a registered broker-dealer under right to terminate secondary market January 4, 1973. the 1934 Act. activities in a fund at any time. Even in Notice is hereby given that Capital Vance, Sanders & Co. (VS), a Mary­ the absence of a secondary market, unit Exchange Fund, Inc., Depositors Fund land corporation employed by the Funds holders nevertheless retain the protec­ of Boston, Inc., Diversification Fund, Inc., as their investment adviser, does not sell tion of their right under the trust instru­ the Exchange Fund of Boston, Inc., shares of the John Hancock Funds, and ments to the redemption of their units Fiduciary Exchange Fund, Inc., Leverage neither does any affiliated person of VS. upon presentation of such units to the Fund of Boston, Inc., and Second In his capacities as a director, member Trustee. Upon such redemption, the unit Fiduciary Exchange Fund, Inc. (the of the Committee of Finance, and Chair­ holders receive cash equal to the “ unit Funds), 111 Devonshire Street, Boston, man of the Real Estate Committee of value” of the units computed with re­ MA 02109, all Massachusetts corpora­ Hancock Life, Theopold has no direct gard to the underlying assets of the tions registered as management invest­ supervisory authority over, or direct re­ fund. The soundness of the investors’ ment companies under the Investment sponsibility for, the day-to-day manage­ interests in the funds, it is stated, is Company Act of 1940 (the Act), and ment or the broker-dealer operations of solely a function of the value of the Philip H. Theopold (Theopold), 294 Hancock Life or of Hancock Distributors. underlying Ginny Mae certificates, the Washington Street, Boston, MA 02108 Theopold is also a member of the board payment of principal of and interest on (hereinafter collectively called Appli­ of directors and the U.S. Investment Ad­ which is guaranteed by Government Na­ cants) , have filed an application for an visory Committee of the ECU Subsidi­ tional Mortgage Association (a guaranty order of the Commission pursuant to sec­ aries, which are wholly owned subsidi­ backed by the full faith and credit of tion 6(c) of the Act declaring that Theo­ aries of ECU Corp., which, in turn, is a the United States). Applicant thus rep­ pold shall not be deemed an “interested wholly owned subsidiary of Commercial resents that the profitability of the person” of the Funds or any investment Union Assurance Co., Ltd., a publicly Sponsors will in no way enhance or di­ adviser of, or principal underwriter for, owned company domiciled in London, minish the prospect for an orderly pay­ the Funds, within the meaning of section England, which owns other subsidiary ment of the underlying mortgage-backed 2(a) (19) of the Act solely by reason of companies that are- engaged in the in­ certificates. his status as a director, member of the surance business. ECU Corp. owns 85 Notice is further given that any in­ Committee of Finance, and Chairman of percent of the outstanding voting stock terested person may, not later than Jan­ the Real Estate Committee of John Han­ of Egret Holding Corp. which owns all uary 24, 1973 at 5:30 p.m., submit to the cock Mutual Life Insurance Co. (Han­ of the outstanding voting stock of Egret Commission in writing a request for a cock Life), or as a director and member Distributing Co., Inc. (Egret Distribut­ hearing on the matter accompanied by of the U S. Investment Advisory Com­ ing), CU Securities Corp. (CU Securi­ a statement as to the nature of his in­ mittee of the Employers-Commercial ties) , and Egret Management Co., Inc., terest, the reason for such request, and Union Insurance Co., The Employers’ which furnishes Egret Growth Fund, the issues of fact or law proposed to be Fire Insurance Co., the Northern As­ Inc. (Egret Fund), an investment com­ controverted, or he may request that he surance Company of America, or Ameri­ pany registered under the Act, with in­ be notified if the Commission shall order can Employers’ Insurance Company vestment advisory and management a hearing thereon. Any such communica­ (ECU Subsidiaries). All interested per­ services. The remaining 15 percent of tion should be addressed: Secretary, sons are referred to the application on the outstanding voting stock of Egret Securities and Exchange Commission, file with the Commission for a statement Holding Corp. is owned by Employers- Washington, D.C. 20549. A copy of such of the representations made therein, Commercial Union Insurance Co., of request shall be served personally or by which are summarized below. which Theopold is a director. It is ex­ mail (airmail if the person being served Theopold, a member of the board of pected, however, that prior to Decem­ is located more than 500 miles from the directors of each of the Funds, is also ber 31, 1972, Employers-Commercial point of mailing) upon Applicant at the a director of Hancock Life, a mutual in­ Union Insurance Co, will distribute a I address set forth above. Proof of such surance company which is in the business dividend consisting of all of its capital I service (by affidavit or in case of an of selling life insurance and variable an­ stock interest in Egret Holding Corp. to I attorney at law by certificate) shall be nuities. Hancock Life is a registered ECU Corp., and that thereafter, ECU filed contemporaneously with the re­ broker-dealer under the Securities Ex­ Corp. will directly own all of the out- I quest. At any time after said date, as change Act of 1934 (the 1934 A ct). It standing securities of Egret Holding I provided by Rule 0-5 o f the rules and also has registered as an investment ad­ Corp. regulations promulgated under the Act, viser under the Investment Advisers Act Egret Distributing is the principal I an order disposing of the application of 1940 for the purpose of advising the underwriter of Egret Fund. CU Securities I herein may be issued by the Commis­ variable annuity separate accounts it has is a member of the PBW Stock Exchange. I sion upon the basis of the information organized and for the purpose of selling The only business of CU Securities at I stated in said application, unless an its own variable annuity contracts present is to execute transactions on the I order for hearing upon said application through its independent and employee PBW Stock Exchange or otherwise re- I shall be issued upon request or upon the insurance agents.. It wholly owns John capture commissions for Egret Fund and Commission’s own motion. Persons who Hancock Advisers, Inc., which is the in­ subsidiaries of ECU Corp. It may not be I request a hearing or advice as to whether vestment adviser for John Hancock so limited in the future. Both Egret Dis- I a hearing is ordered will receive notice Growth Fund, Inc., and John Hancock tributing and CU Securities are regis- I of further developments in this matter, Signature Fund, Inc., open-end invest­ tered as broker-dealers under the 1934 I including the date of the hearing (if ment companies registered under the Act. As a director of ECU Subsidiaries, H ordered) and any postponements thereof. Act, and John Hancock Investors, Inc., Theopold is ultimately responsible, to- I For the Commission, by the Division and John Hancock Income Securities gether with other directors, for setting I of Investment Company Regulation, pur­ Corp., closed-end investment companies the policies and managing the business of I suant to delegated authority. registered under the Act (hereinafter the ECU Subsidiaries. As a member of I collectively referred to as “John Hancock the U.S. Investment Advisory Committee I [seal] R onald F. H unt, Funds” ) . The shares of the two open-end of such corporation, he, together with I Secretary. investment companies are offered for sale other members of the committee, pro- I [PR Doc.73-556 Piled l-10-73;8:45 am] to the public only by independent and vide investment advice to the pension I

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 NOTICES 1315

fund and insurance company subsidi­ will receive notice of further develop­ value as of September 22, 1972 (adjusted aries of ECU Corp., but Theopold has no ments in this matter, including the date for the aforesaid 3 for 1 stock split), of supervisory authority or responsibility of the hearing (if ordered) and any post­ $31.49. Cullman was subsequently liqui­ for management or operations of Egret ponements thereof. dated and the shares of Applicant were Distributing or CU Securities. For the Commission, by the Division distributed to the Cullman stockholders. Applicants assert that neither Egret As of September 30, 1972, the former Distributing nor CU Securities, nor Han­ of Investment Company Regulation, pur­ suant to delegated authority. Cullman stockholders or their represent­ cock Life, nod Hancock Distributors en­ atives held the following amounts and gage in portfolio transaction with, or on [ seal] R onald F. Hunt, percentages of Applicant’s outstanding behalf of, the Funds, nor, in the normal Secretary. shares: course, would they be considered by the [FR Doc.73-599 Filed l-10-73;8:45 am] Funds or VS as a potential firm through Shares of Percentage which to execute securities transactions. Former Cullman applicant of applicants Each of the Funds and VS represent that [812-3290] stockholders held outstanding stock so long as Theopold is a director of such FEDERAL STREET FUND, INC. Fund, such Fund and VS will not engage in any securities transactions through Joseph F. Cullman, 3d., Notice of Application for an Order Edgar M. Cullman, and Hancock Life, Hancock Distributors, Exempting a Proposed Transaction W. Arthur Cullman, Egret Distributing, or CU Securities. trustees u/w o l Joseph F. January 5, 1973. Cullman, Jr...... 311,682 3.54 Section 2(a) (19) of the Act, in perti­ Estate of Howard S. nent part, defines an “interested person,” Notice is hereby given that Federal Cullman...... 207,869 2.36 Joseph F. Cullman, 3d____ 207,869 2.36 when used with respect to an investment Street Fund, Iiic. (Applicant), 225 Edgar M. Cullman...... 207,869 2.36 company, to include any broker or dealer Franklin Street, Boston, MA 02110, a Lawrence H. Levy...... 34,439 .39 registered under the 1934 Act or any af­ diversified, open-end management in­ Hugh Cullman______23,607 .27 W. Arthur Cullman______23,607 .27 filiated person of such a broker or dealer. vestment company registered under the Bernhard L. Cohn...... 6,008 .06 Section 2(a) (3) defines an “affiliated Investment Company Act of 1940, as person” of another person to include any amended (the “Act” ) , has filed an appli­ director of such other person. cation pursuant to section 17(b) of the Applicant states that between the time Section 6(c) of the Act provides that Act for an order of exemption from sec­ when it reached a formal agreement with the Commission by order, upon applica­ tion 17 (a) of the Act to permit the Estate Cullman to acquire Cullman’s assets and tion, may conditionally or uncondition­ of Howard Cullman (Estate), to tender the effective completion date of such ally exempt any person, security, or shares of Applicant for redemption in transaction, Mr. Howard S. Cullman, a transaction from any provision or provi­ kind. All interested persons are referred former stockholder of Cullman, died. The sions of the Act if and to the extent that to the application on file with the Com­ executors of the Estate are Marguerite such exemption is necessary or appro­ mission for a statement of the repre­ W. Cullman, Joseph F. Cullman, 3d, priate in the public interest and consist­ sentations contained therein, which are Hugh Cullman, and Bankers Trust Co. ent with the protection of investors and summarized below. (New York). The Estate, which may be the purposes fairly intended by the policy Applicant was incorporated under the deemed to be an affiliated person of Ap­ and provisions of the Act. laws of Massachusetts and was created as plicant if its holdings are combined with Applicants assert that Theopold is sub­ a so-called “exchange type” fund. Since the holdings of other members of the ject to no conflicts of interest as a result the completion of the initial public of­ Cullman family, including the Estate of of his relationships with Hancock Life fering of its shares of common stock in Joseph F. Cullman, Jr., desires to redeem or ECU Subsidiaries since his activities at exchange for outstanding stock or other a portion of the 207,859 shares of Appli­ Hancock Life and the ECU Subsidiaries securities of various business corpora­ cant presently held by it in order to raise are isolated from, and independent of, tions, Applicant has not offered its shares approximately $1 million to pay certain any business activities of the Funds and to the general public, and until Septem­ of its expenses, including Federal estate of VS. ber 25, 1972, had not issued any addi­ taxes. Notice is further given that any inter­ tional shares except with respect to a 20 Section 17(a) of the Act, as here per­ ested person may, not later than Janu­ for 1 stock split in 1962, an acquisition of tinent, prohibits an affiliated person of a ary 29, 1973, submit to the Commission assets of a private investment company registered investment company, or any i in writing a request for a hearing on the in 1968, and shares issued in payment of affiliated person of such a person, act­ | matter accompanied by a statement as various optional stock dividends to Ap­ ing as principal, from selling to or pur­ l to the nature of his interest, the reasons plicant’s shareholders. chasing from such registered company, I for such request, and the issues of fact Applicant, in the ordinary course of or any company controlled by such reg­ or law proposed to be controverted, or he its business, redeems shares tendered for istered company, any security, or other | may request that he be notified if the redemption by its shareholders and has property. Section 17(b) of the Act: Pro­ r Commission shall order a hearing there­ continuously followed the policy of pay­ vides, however, That the Commission, on. Any such communication should be ing the price of substantially all such re­ upon application, may exempt a trans­ addressed: Secretary, Securities and Ex- demptions in kind with securities from action from the provisions of section 17 I change Commission, Washington, D.C. its portfolio. Applicant states that it in­ (a) if evidence establishes that the terms 20549. A copy of such request shall be tends to continue this policy for the of the proposed transaction, including served personally or by mail (air mail foreseeable future. the considération to be paid, are reason­ ¿the person being served is located more On September 25, 1972, The Second able and fair and do not involve over­ than 500 miles from the point of mailing) Federal Street Fund, Inc., formerly a reaching on the part of any person upon Applicant at the address stated Massachusetts corporation registered concerned, and that the proposed trans­ [above. Proof of such service (by affidavit, under the Act as a diversified, open-end action is consistent with the policy of case of an attorney at law, by cer­ management investment company, was the registered investment company con­ tificate) shall be filed contemporaneously merged into Applicant and, as part of cerned and with the general purposes of with the request. At any time after said the merger plan, Applicant split its stock the Act. date, as provided by Rule 0-5 of the rules 3 for 1. Immediately thereafter, Appli­ Applicant, in accordance with its con­ I *n+ regu^a^ions Promulgated under the cant acquired $33,502,756 of marketable tinuous redemption policy described |Act, an order disposing of the applica­ securities (market value as of Septem­ above, wishes to pay the redemption tion herein may be issued by the Commis­ ber 22, 1972) and cash from Cullman price of the shares to be tendered for sion unless an order for a hearing upon redemption by the Estate with one or I said application shall be issued upon re­ Bros., Inc. (Cullman), a New York pri­ more marketable securities from Appli­ ft ^es^ r upon the Commission’s own mo* vate investment company, in exchange cant’s portfolio. IPersons who request a hearing, or for 1,021,920 shares of Applicant’s com­ The portfolio securities of Applicant to I aavice as to whether a hearing is ordered, mon stock having a per share net asset be used to meet such redemption will be

FEDERAL REGISTER, VOL. 38, NO. 7-—THURSDAY, JANUARY 11, 1973 1316 NOTICES selected solely by Applicant in its in­ [File No. 500-1] I & M proposes to obtain the consent vestment discretion at the time of the FIRST WORLD CORP. and approval of the holders of the out­ redemption, and there is no arrange­ standing cumulative preferred stock to ment or understanding with the execu­ Order Suspending Trading an increase in the amount of unsecured tors of the estate as to what the securi­ short-term debt, which the company is ties will be. Such portfolio securities will January 4,1973. authorized to incur, to exceed 10 percent, be valued in accordance with the valua­ It appearing to the Securities and but provided that combined short-term tion practices of Applicant (as set forth Exchange Commission that the sum­ and long-term unsecured indebtedness in its governing instruments) for deter­ mary suspension of trading in the Class would be not more than 20 percent of mining its net asset value per share as A and Class B common stocks, $0.15 its total capitalization for a period end­ of the same time as the net asset value par value, and all other securities of ing on December 31, 1976, but with no of the Applicant’s shares tendered for First World Corp. being traded other­ maturity later than, June 30, 1977, ex­ redemption is determined. By paying the wise than on a national securities ex­ cept as otherwise provided by I & M’s redemption price of its shares tendered change is required in the public interest Articles. Authorization from the Com­ by the estate for redemption with port­ and for the protection of investors: mission for such an increase in the per- folio securities, Applicant will be adher­ It is ordered, Pursuant to section 15 missable amount of short-term debt, as ing to its policy, in effect since its incep­ (c) (5) of the Securities Exchange Act required by I & M’s debenture agreement tion, of paying all redemptions of its of 1934, that trading in such securities is requested. The actual issue and sale shares, except for those involving an in­ otherwise than on a national securities of securities related to such proposed substantial amount, by delivery of port­ exchange be summarily suspended, this increase in short-term indebtedness will folio securities. Applicant submits that order to be effective for the period from be subject to further authorization by if it were required to sell portfolio secu­ January 5, 1973 through January 14, this Commission. rities in order to raise cash to meet re­ 1973. I & M intends to submit the proposed amendments of its Articles and the pro­ demptions, it would, in consequence, be By the Commission. forced to realize substantial capital gains posed consent to its shareholders for and thereby incur substantial capital [ seal] R onald F. Hunt, their approval at a special meeting of gains tax liability and the expense of Secretary. shareholders to be held on March 7,1973. brokerage commissions, all of which [FR Doc.73-551 Filed 1-10-73:8:45 am] In connection therewith, I & M proposes would be to the detriment of its share­ to solicit proxies from the holders of holders. No realization of capital gains its preferred stock through the use of or incurring of brokerage commission ex­ [70-5287] solicitation material which sets forth the pense by Applicant will occur upon a proposals in detail. The declaration redemption in which portfolio securities INDIANA & MICHIGAN ELECTRIC CO. states that the proposed amendments re­ are delivered in satisfaction of the re­ quire the affirmative vote of the holders Notice of Proposed Amendments of of a majority of the outstanding shares demption price. Articles of Acceptance, Increase In Notice is further given that any inter­ of I & M’s common stock and of the ested person may, not later than Janu­ Permitted Short-Term Unsecured In­ holders of a majority of the outstanding debtedness, and Solicitation of shares of each class of cumulative pre­ ary 29, 1973, submit to the Commission ferred stock, voting separately as a class. in writing a request for a hearing on this Proxies in Connection Therewith Consent of the holders of a majority of matter accompanied by a statement as January 4,1973. the outstanding cumulative preferred to the nature of his interest, the reasons Notice is hereby given that Indiana stock, voting as a class, is needed to in­ for such request, and the issues of fact crease the amount of short-term unse­ or law proposed to be controverted, or & Michigan Electric Co. (I & M), 2101 Spy Run Avenue, Fort Wayne, IN 46801, cured indebtedness. American Electric he may request that he be notified if the Power Co., Inc., holder of all of the out­ Commission should order a hearing an electric utility subsidiary company of American Electric Power Co., Inc., standing shares of I & M’s Power Co., thereon. Any such communication should Inc., has indicated that all such shares be addressed: Secretary, Securities and a registered holding company, has filed a declaration with this Commission pur­ will be voted in favor of the proposed Exchange Commission, Washington, D.C. amendments. 20549. A copy of such request shall be suant to the Public Utility Holding Com­ pany Act of 1935 (Act), designating The fees and expenses incurred and to served personally or by mail (airmail if be incurred in connection with the pro­ the person being served is located more sections 6(a)(2), 7, and 12(e) of the Act and Rule 62 promulgated thereunder vided transactions are estimated not to than 500 miles from the point of mail­ exceed $21,500. The declaration states ing) upon the Applicant at the address as applicable to the proposed transac­ tions. All interested persons are referred that no State commission and no Fed­ stated above. Proof of such service (by eral commission, other than this Com­ affidavit, or in the case of an attorney at to the declaratioii, which is summarized below, for a complete statement of the mission, has jurisdiction over the pro­ law, by certificate) shall be filed contem­ posed transactions. poraneously with the request. At any proposed transactions. Notice is further given, that any inter­ time after said date, as provided by Rule I & M proposes to amend its Articles of Acceptance (Articles) to increase the ested person may, not later than 0-5 of the rules and regulations promul­ January 25, 1973, request in writing that gated under the Act, an order dispos­ number of authorized shares of its cumu­ a hearing be held with respect to the ing of the application herein may be is­ lative preferred stock. As of Novem­ proposed transactions, stating the nature sued by the Commission upon the basis ber 15, 1972, of the 1,250,000 authorized of his interest, the reasons for such re­ of information stated in said application, shares of I & M’s cumulative preferred quest, and the issues of fact or law raised unless an order for hearing upon said stock, 120,000 shares of its 4Vs percent by said declaration which he desires to application shall be issued upon request Series, 60,000 shares of its 4.56 percent controvert; or he may request that he be or upon the Commission’s own motion. Series, 40,000 shares of its 4.12 percent notified if the Commission should order Persons who request a hearing, or advice Series, 300,000 shares of its 7.08 percent a hearing thereon. Any such request as to whether a hearing is ordered, will Series, and 350,000 shares of its 7.76 per­ should be addressed: Secretary, Securi­ receive notice of further developments cent Series were issued and outstanding. ties and Exchange Commission, Wash­ in the matter, including the date of the I & M now proposes, to provide funds with ington, D.C. 26549. A copy of such request hearing (if ordered) and any postpone­ which to finance its expenditures for con­ should be served personally or by mail ments thereof. struction and other corporate purposes, (airmail if the person being served is to amend its Articles so as to increase its For the Commission, by the Division located more than 506 miles from the authorized cumulative preferred stock point of mailing) upon the declarant at of Investment Company Regulation, pur­ to 2,250,000 shares. The cost of I & M’s suant to delegated authority. the above-stated address, and proof of construction program for the year 1973 service (by affidavit or, in case of an at­ [ seal] R onald F. H unt, is estimated, on the basis of presently torney at law, by certificate) should be Secretary. existing conditions, to be approximately filed with the request. At any time after [FR Doc.73-600 Filed 1-10-73:8:45 am] $140 million. said date, the declaration, as filed or as

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 NOTICES 1317 it may be amended, may be permitted to Act Release No. 4361) (the “ 1965 Order” ) the outstanding voting securities of such1 become effective as provided in Rule 23 granted a conditional order to Keystone Fund. of the general rules and regulations and Keystone-Boston similar to that re­ In August 1960, certain shareholders of promulgated under the Act, or the Com­ quested by the present application. The the Funds brought suit in the Court of mission may grant exemption from such 1965 Order provided that the exemption Chancery of New Castle County, Del., rules as provided in Rules 20(a) and 100 would not be operative with respect to against Keystone individually and as thereof or take such other action as it any approval which would otherwise be trustee, its directors, and Keystone-Bos­ may deem appropriate. Persons who re­ required to continue such underwriting ton, in which, among other things, they quest a hearing or advice as to whether contracts in effect from and after Decem­ challenged the validity of > the under­ a hearing is ordered will receive notice ber 31, 1972. New underwriting contracts writing contracts with Keystone-Boston. of further developments in this matter, with Keystone-Boston and Cornerstone “Saminsky v. Abbott,” 185 A. 2d 765 (Del. including the date of the hearing - (if (the latter not a party to the 1965 order), Ch. 1961). The defendants filed a motion ordered) and any postponements thereof. both Keystone' subsidiaries, executed on for summary judgment which the court For the Commission, by the Division of April 1, 1971, were most recently sub­ granted in part and denied in part. With Corporate Regulation, pursuant to dele­ mitted to and approved by shareholders respect to the challenge to the validity gated authority. of the nine Funds between March 8 and of the then existing underwriting con­ March 22, 1971. Applicants now seek an tracts, the court held such contracts to [seal] R onald F. H unt, order exempting them from section 15 be void on the ground that the contracts Secretary. (b) (1) and extending the 1965 Order to had been continued for more than 2 [FR Doc.73-555 Filed l-10-73;8:45 am] permit them to continue to submit the years without shareholder approval. underwriting contracts with Keystone- Other issues, including the plaintiff’s Boston and Cornerstone or any future [812-3333] right to recover for violations of section such contracts to shareholders of the 15(b) of the Act, were reserved for later KEYSTONE CUSTODIAN FUNDS, INC., Funds every 3 years beginning in decision. ET AL. 1974 and continuing through December Subsequent to the proceedings, in the 1980. Delaware Chancery Court at special Notice of Filing of Application for The nine Funds, created in 1935, are meetings held in January 1963 to con­ Order Conditionally Exempting Cer­ unincorporated common law trusts, each sider various matters related to the liti­ tain Underwriting Contracts existing under a separate but substan­ gation, the shareholders of each of the tially identical trust agreement between Funds voted to approve new underwrit-, January 4, 1973. Keystone as Trustee of each fund and ing contracts with Keystone-Boston and Notice is hereby given, that Keystone the investors in the Funds. Keystone is to ratify and approve past underwriting Custodian Funds, Inc. (Keystone), a a corporation which, pursuant to the contracts and transactions thereunder. Delaware corporation, as trustee of each terms of the trust agreements, performs After these meetings, the parties to the of the following nine trusts, namely, as trustee all of the investment, manage­ aforementioned litigation agreed to set­ Keystone Custodian Fund Series B -l, ment, and administrative services re­ tlement subject to court approval. B-2, B-4, K -l, K-2, S -l, S-2, S-3, quired by the Funds. Except for the Applicants assert that the cost of an S-4 (Funds) each registered under the Trustee, the Funds have no employees. annual submission of the underwriting Investment Company Act of 1940 (Act) As a principal underwriter, Keystone- contracts to shareholders, which cost is as an open-end diversified management Boston is authorized to sell shares of the borne by Keystone, would be large in re­ investment company, the Keystone Com­ Funds as agent for the Funds upon re­ lation to any interest of shareholders in pany of Boston (Keystone-Boston), a ceipt of orders from retail dealers. It may the matter. Ordinarily, no other matters Delaware corporation, and Cornerstone also sell shares to the public acting as are submitted for shareholder approval. Financial Services, Inc. (Cornerstone), principal, although it does not presently For example, the cost of the proxy solici­ 99 High Street, Boston, MA 02104, a do so. The contract allots the entire sales tation and shareholders’ meetings con­ Delaware corporation, (collectively Ap­ charge to Keystone-Boston. Keystone- ducted in 1971, when there were approxi­ plicants), have filed an application for Boston is required to pay the retail deal­ mately 460,000 shareholders in the nine an order pursuant to section 6(c) of the ers’ concessions, the cost of registration Funds, was $90,000, of which about Act, exempting Keystone-Boston and of shares sold by it under Federal and $53,000 represented postage. Based on Cornerstone from the provisions of sec­ State securities laws and the cost of prep­ the current number of shareholders tion 15(b) (1) of the Act, on condition aration and distribution of prospectuses (about 450,000 at Oct. 31, 1972) and that the principal underwriting contracts and sales literature. higher postage and other costs, it is es­ dated April 1, 1971, between Keystone As a principal underwriter, Corner­ timated that a solicitation at this time and Keystone-Boston and between Key­ stone is authorized to sell shares of the would cost more than $115,000. The cost stone and Cornerstone, and any future Funds as principal to the public. Corner­ will increase with each increase in the contracts of the type required by section stone, with the approval of Keystone, number of shareholders. 15(b) of the Act so entered into, shall may enter into sales contracts with other In addition Applicants state that there continue in effect with respect to any of business entities, acting as either prin­ is substantial’question whether sufficient the Funds only so long as the continu­ cipal or agent for resale by such other shareholder interest can be obtained to ance is specifically approved at least business entities to the public although secure the majority approval required every 3 years by either written approval It does not presently do so. Cornerstone by the Act when the underwriting con­ by holders of a majority of the outstand­ is required to pay the cost of registra­ tract is the only matter to be brought ing shares of each of the Funds, or by the tion of shares sold by it under Federal before the shareholders. Applicants know vote of a majority of such outstanding and State securities laws and the cost of of no investment company situation shares cast in person or by proxy at a preparation and distribution of prospec­ where the only annual submission to meeting called for the purpose. If the re­ tuses and sales literature. shareholders is that of the underwriting quested order were not granted, such ap­ Section 15(b) (1) of the Act makes it contract. Applicants allege that failure proval would be required annually. The unlawful for any principal underwriter to obtain necessary approval might make exemption, if granted, shall not be op­ of a registered open-end investment further sales of shares impossible and erative with respect to any approval re- company to offer securities of such com­ thus have a serious adverse effect on ?ann ^r.om and after December 31, pany except pursuant to a written con­ Keystone and the Funds. i»80. All interested persons are referred tract, which contract shall continue in m me application on file with the Com­ Section 6(c) of the Act provides that mission for a statement of the represen- effect for a period of more than 2 years the Commission may conditionally or belowS herein which are summarized from the date of its execution only so unconditionally exempt any person or long as such continuance is specifically transaction from any provisions of the f Commission by Order dated Sep­ approved at least annually by the Board Act if such exemption is necessary or tember 24, 1965 (Investment Company of Directors or by vote of a majority of appropriate^ the public interest and

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1318 NOTICES consistent with the protection of inves­ [File No. 500-1] commercial banks of 5% percent per annum, the average interest cost on the tors and the purposes fairly intended by STAR-GLO INDUSTRIES, INC. the policy and provisions of. the Act. term notes during a 7-year period would Notice is further given that any in­ Order Amending Order Suspending be approximately 6.8 percent per annum, terested person may, not later than Janu­ Trading and over a 10-year period approximately ary 25, 1973, at 5:30 p.m., submit to the 7.4 percent per annum. During the first Commission in writing a request for a January 4,1973. 7 years of each term note outstanding hearing on the matter accompanied by The Commission having determined the maximum average interest rate is a statement as to the nature of his in­ to amend its order of December 29, 1972, guaranteed to not exceed 8 percent per terest, the reason for such request, and summarily suspending trading in the se­ annum. There are no compensating the issues, if any, of fact or law proposed curities of Star-Glo Industries, Inc. for balances required. to be controverted, or he may request the period from December 30, 1972 N Utah further proposes to issue its that he be notified if the Commission through January 7,1973; notes, in accordance with the above- should order a hearing thereon. Any It is ordered, Pursuant to section 15(c) stated terms, in units of approximately such communication should be ad­ (5) of the Securities Exchange Act of $10 million to $15 million each to no less dressed: Secretary, Securities and Ex­ 1934, that trading in the common stock, than two of the following banks: change Commission, Washington, D.C. no par value, and all other securities of First National City Bank, New York, N.Y. 20549. A copy of such request shall be Star-Glo Industries, Inc. being traded Irving Trust Co., New York, N.Y. served personally or by mail (airmail otherwise than on a national securities Mellon National Bank & Trust Co., Pitts­ if the person being served is located more exchange be summarily suspended, this burg, Pa. than 500 miles from the point of mail­ order to be effective for the period from Morgan Guaranty Trust Company of New ing) upon Applicants at the address December 30, 1972 through January 8, York, New York, N.Y. stated above. Proof of such service (by 1973. The Chase Manhattan Bank, New York, N.Y. affidavit or in case of any attorney at By the Commission. The proceeds from the sale of the term law by certificate) shall be filed con­ notes will be used to pay for short-term temporaneously with the request. At any [seal] R onald F. Hunt, notes and/or commercial paper then out­ time after said date, as provided by Secretary. standing; and, together with other funds, Rule 0-5 of the rules and regulations [FR Doc.73-553 Filed 1-10-73; 8:45 am] to pay for Utah’s construction program promulgated under the Act, an order dis­ during 1973. Construction costs for 1973 posing of the application herein may be are estimated to be $100 million. The sale issued by the Commission upon the basis [70-5288] of the term notes is excepted from the of the information stated in said ap­ UTAH POWER & LIGHT CO. competitive bidding requirements of Rule plication, unless an order for hearing 50 under the provisions of subparagraph thereon shall be issued upon request or Notice of Proposed Issue and Sale of (a)(2). upon the Commission’s own motion. Per­ Term Notes to Banks and Exception It is stated that the Idaho Public Util­ sons who request a hearing or advice as to From Competitive Bidding ities Commission and the Wyoming Pub­ whether a hearing is ordered will receive lic Service Commission has jurisdiction notice of further developments in this * J anuary 5, 1973. over the proposed transaction. No other matter, including the date of the hearing Notice is hereby given that Utah State commission and no Federal com­ (if ordered) and any postponements Power & Light Co. (Utah), 1407 West mission, other than this Commission, has thereof. North Temple Street, Post Office Box 899, jurisdiction over the proposed transac­ For the Commission, by the Division Salt Lake City, UT 84110, an electric tions. Miscellaneous expenses are esti­ of Investment Company Regulation, pur­ utility company and a registered holding mated not to exceed $4,000. suant to delegated authority. company has filed a declaration and an Notice is further given that any inter­ amendment thereto with this Commis­ ested person may, not later than Janu­ [ seal] R onald F. H unt, sion pursuant to the Public Utility Hold­ ary 29, 1973, request ih writing that a Secretary. ing Company Act of 1935 (Act), desig­ hearing be held on such matter, stating [FR Doc. 73-554 Filed l-10-73;8:45 am] nating sections 6(a) and 7 of the Act and the nature of his interest, the reasons Rule 50(a)(2) promulgated thereunder for such request, and the issues of fact as applicable to the proposed transaction. or law raised by said declaration which [File No. 500-1] All interested persons are referred to he desires to controvert; or he may re­ the declaration, which is summarized quest that he be notified if the Commis­ LILAC TIME, INC. below*, for a complete statement of the sion should order a hearing thereon. Order Suspending Trading proposed transaction. Any such request should be addressed: Utah proposes to issue and sell, from Secretary, Securities and Exchange Com­ January 5,1973. time to time prior to December 31, 1973, mission, Washington, D.C. 20549. A copy It appearing to the Securities and unsecured promissory term notes with of such request should be served person­ Exchange Commission that the sum­ 10-year maturities to commercial banks, ally or by mail (airmail if the person mary suspension of trading in the com­ in an aggregate amount not exceeding being Served is located more than 500 mon stock, $0.05 par value, and all other $50 million. The principal amount of the miles from the point of mailing) upon securities of Lilac Time, Inc., being traded term notes will be payable at maturity the declarant at the above-stated ad­ otherwise than on a national securities or the principal amount may be prepaid, dress, and proof of service (by affidavit exchange is required in the public in­ in Whole or in part, at any time, without or, in case of an attorney at law, by terest and for the protection of investors: penalty or premium, upon payment of certificate) should be filed with the re­ It is ordered, Pursuant to section 15(c) the interest accrued to the date of such quest. At any time after said date, the (5) of the Securities Exchange Act of prepayment on the principal prepaid. declaration, as amended or as it may be 1934, that trading in such securities The rate of interest per annum on further amended may be permitted to otherwise than on a national securities each outstanding term note, or portion become effective as provided in Rule 23 exchange be summarily suspended, this thereof, shall be: 114 percent of the of the general rules and regulations pro­ order to be effective for the period from prime rate during the first and second mulgated under the Act, or the Commis­ years; 114 percent of the prime rate plus sion may grant exemption from such 10 a.m. (e.s.t.) on January 5, 1973 one-fourth of 1 percent during the third rules as provided in Rules 20(a) and 100 through January 14,1973. and fourth years; 114 percent of the thereof or take such other action as it By the Commission. prime rate plus one-half of 1 percent during the fifth, sixth, and seventh years may deem appropriate. Persons who re­ [seal] - R onald F. H unt, and 114 percent of the prime rate plus 2 quest a hearing or advice as to whether Secretary. percent during the eighth, ninth, and a hearing is ordered will receive notice [FR Doc.73-598 Filed 1-10-73*8:45 am] 10th years. Based on a prime rate at of further developments in this matter,

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY IV , 1973 NOTICES 1319

including the date of the hearing (if (3) Chief and Assistant Chief, Fi­ the Tariff Commission located in Room ordered) and any postponements thereof. nancing Division, Regional Office. 437 of the customhouse. (4) Supervisory Loan Officer, Regional For the Commission, by the Division By order of the Commission. of Corporate Regulation, pursuant to Office. delegated authority. (5) Chief, Financing Division, District Issued: January 8,1973. Office. [ seal] K enneth R. M ason, [seal! R onald F. H unt, 3. To decline disaster guaranteed loans Secretary. Secretary. in any amount and to approve such loans [FR Doc.73-601 Filed l-10-73;8:45 am] up to an SBA guarantee of the follow­ [FR Doc.73-634 Filed l-10-73;8:45 am] ing amounts: (1) District Director, District Office ______$500,000 (2) Disaster Branch Manager, as INTERSTATE COMMERCE SMALL BUSINESS assigned ______500,000 (3) Chief and Assistant Chief, COMMISSION Financing Division, Re­ ADMINISTRATION gional Office______500,000 [Notice 153] [Delegation of Authority No. 30—Region I; (4) Supervisory Loan Officer, Re­ ASSIGNMENT OF HEARINGS Amdt. 2] gional Office______50, 000 (5) Chief, Financing Division, January 8,1973. DISTRICT DIRECTOR, DISTRICT OFFICE District Office______350,000 Cases assigned for hearing, postpone­ ET A L 4. To appoint as a processing repre­ment, cancellation, or oral argument ap­ Delegation of Authority To Conduct sentative any bank in the disaster area: pear below and will be published only (1) District Director, District Office. once. This list contains prospective as­ Program Activities in the Field Offices (2) Disaster Branch Manager, as as­ signments only and does not include Delegation of Authority No. 30—Re­ signed. cases previously assigned hearing dates. gion I (37 FR 17590), as amended (37 FR (3) Chief and Assistant Chief, Fi­ The hearings will be on the issues as 26557) is hereby further amended to ex­ nancing Division Regional Office. presently reflected in the Official Docket pand disaster loan authority. of the Commission. An attempt will be Effective Date: July 1, 1972. made to publish notices of cancellation Part II—D isaster P rogram D avid P. Heilner, of hearings as promptly as possible, but Section A. Disaster Loan Authority. Regional Director, Region 7. interested parties should take appropri­ 1. To decline direct disaster and imme­ [FR Doc.73-617 Filed l-10-73;8:45 am] ate steps to insure that they are noti­ diate participation disaster loans in any fied of cancellation or postponements of amount and to approve such loans up to hearings in which they are interested. the total SBA funds of (1) $50,000 per No amendments will be entertained after household for repairs or replacement of TARIFF COMMISSION the date of this publication. the home and/or not to exceed an addi­ [ TEA—W—170] tional $10,000 allowable for household MC 136884, James J. Hamilton doing business as Hamilton’s Towing Service, now assigned goods and personal items, but in no event ANDAL SHOES, INC. January 15, 1973, at Chicago, HI., is can­ may the money loaned for physical loss Workers’ Petition for a Determination; celed and reassigned January 15, 1973, will or damage exceed $55,000 for a single be held at the Kirkwood Hotel, Fourth and disaster on home loans, except for funds Notice of Investigation Walnut Streets, Des Moines, Iowa. to refinance prior liens or mortgages, On the basis of a petition filed under MC 66886 Sub 30, Belger Cartage Service, which may be approved in addition to section 301(a)(2) of the Trade Expan­ Inc., now assigned January 15, 1973, at the foregoing limits for amounts up to sion Act of 1962, on behalf of the former Kansas City, Mo., is postponed indefinitely. $50,000; and (2) $500,000 on disaster workers of Andal Shoes, Inc., Haverhill, MC-121495 Sub 5, Englewood Transit Co., business loans (excluding displaced busi­ Mass., the U.S. Tariff Commission, on now assigned January 31, 1973, at Denver, ness loans, coal mine health and safety, Colo., is canceled and application dismissed. January 5, 1973, instituted an investiga­ AB-5 Sub 47, Penndel Co. and George P. occupational safety and health, and eco­ tion under section 301(c) (2) of the Act nomic injury disaster loans in connection Baker, Richard C. Bond, Jervis Langdon, Jr., to determine whether, as a result in and Willard Wirtz, trustees of the property with declarations made by the Secretary major part of concessions granted under of Penn Central Transportation Co., debtor, of Agriculture for natural disasters) ex­ trade agreements, articles like or directly abandonment between New Castle and cept to the extent of refinancing of a competitive with footwear for women (of Houston Junction, in Mercer and Lawrence previous SBA disaster loan : the types provided for in Items 700.43, Counties, Pa., now being assigned hearing (1) District Director, District Office. 700.45, and 700.55 of the Tariff Schedules March 1, 1973 (2 days), at New Castle, Pa., (2) Disaster Branch Manager, as in a hearing room to be later designated. assigned. of the United States) produced by said firm are being imported into the United MC—115311 (Sub-No. 134), J & MTransporta­ (3) Chief and Assistant Chief, Fi­ tion Co., Inc., now assigned February 5, States in such increased quantities as to 1973, will be held in Room 305, 1252 West nancing Division, Regional Office. cause, or threaten to cause, the unem­ (4) Supervisory Loan Officer, Re­ Peachtree Street NW., Atlanta, GA. gional Office. ployment or underemployment of a sig­ MC 63792, Tom Hicks Transfer Co., Inc., now nificant number or proportion of the (5) Chief, Financing Division, District assigned January 23, 1973, at Jackson, Office. workers of such firm or an appropriate Miss., will be held in Room 536, U.S. Post subdivision thereof. Office and Courthouse, East Capitol and I dcchne direct disaster and in The optional public hearing afforded Southwest Streets. «mediate participation disaster loans (es by law has not been requested by the MC 136468 Sub 1, Virginia Air Freight Inc., «eluding displaced business loans, coi petitioners. Any other party showing a now assigned January 29, 1973, at Roanoke, r f ® health and safety, occupations proper interest in the subject matter of Va., will be held in Room 301, U.S. Post isaiety and health, and economic injur the investigation may request a hearing, laisaster loans in connection with decla Office Building, 212 Church Avenue SW., provided such request is filed within 10 MC 115841 Sub 413, Colonial Refrigerated L«i!0ns ^ ade by the Secretary of Agri days after the notice is published in the Transportation, Inc., now assigned Feb­ | ulture for natural disasters) in an F ederal R egister. I f « and to aprove such loans up t ruary 5, 1973, at Washington, D.C., is post­ The petition filed in this case is avail­ poned indefinitely. I the total SBA funds of $50,000: able for inspection at the Office of the (l) District Director, District Office. Secretary, U.S. Tariff Commission, [ seal] R obert L. O swald, L i 2l Disaster Branch Manager, as as Eighth and E Streets NW., Washington, Secretary. 15lgn6CL D.C., and at the New York City office of [FR Doc.73-612 Filed l-10-73;8:45 am]

No. 7—Pt. I-----8 FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1320 NOTICES [Rev. S.O. 994; ICC Order 78, Amdt. 4] Protestant’s interest in the proceeding FOURTH SECTION APPLICATIONS FOR (including a copy of the specific por­ RELIEF LONG ISLAND RAILROAD CO. tions of its authority which protestant January 8,1973. Rerouting or Diversion of Traffic believes to be in conflict with that sought in the application, and describing An application, as summarized below, Upon further consideration of ICC has been filed requesting relief from the in detail the method—whether by join­ requirements of section 4 of the Inter­ Order No. 78 (the Long Island Railroad der, interline, or other means—by which state Commerce Act to permit common Co. ) and good cause appearing therefor: protestant would use such authority to carriers named or described hi the ap­ It is ordered, That: provide all or part of the service pro­ plication to maintain higher rates and ICC Order No. 78 be, and it is hereby posed), and shall specify with particu­ charges at intermediate points than those amended by substituting the following larity the facts, matters, and things re­ sought to be established at more distant paragraph (g) for paragraph (g) there­ lied upon, but shall not include issues or allegations phrased generally. Pro­ points. of: Protests to the granting of an appli­ (g) Expiration date. This order shall tests not in reasonable compliance with cation must be prepared in accordance expire at 11:59 p.m., January 19, 1973, the requirements of the rules may with Rule 1100.40 of the general rules unless otherwise modified, changed, or be rejected. The original and one (1) of practice (49 CFR 1100.40) and filed suspended. copy of the protest shall be filed with the within 15 days from the date of publi­ It is further ordered, That this amend­ Commission, and a copy shall be served ment shall become effective at 11:59 p.m., concurrently upon applicant’s repre­ cation of this notice in the F ederal R eg­ January 5, 1973, and that this amend­ sentative, or applicant if no representa­ ister. PSA No. 42598—Methylene chloride ment shall be served upon the Associa­ tive is named. If the protest includes a from points in Texas and Louisiana. Filed tion of American Railroads, Car Service request for oral hearing, such requests by Southwestern Freight Bureau, agent Division, as agent of all railroads sub­ shall meet the requirements of section (No. B-375), for interested rail carriers. scribing to the car service and car hire 247(d) (4) of the special rules, and shall Rates on methylene chloride, in tank- agreement under the terms of that agree­ include the certification required there­ car loads, as described in the application, ment, and upon the American Short Line in. from Nadeau and Texas City, Tex., to Railroad Association; and that it be filed Section 247(f) of the^ Commission’s Chicago, HI., and points taking same with the Director, Office of the Federal rules of practice further provides that rates, also from specified points in Louisi­ Register. each applicant shall, if protests to its ap­ ana and Texas, to East St. Louis, 111., plication have been filed, and within 60 Issued at Washington, D.C., January 4, days of the date of this publication, no­ and St. Louis, Mo. 1973. tify the Commission in writing: (1) Grounds for relief—Market competi­ nterstate ommerce I C That it is ready to proceed and prosecute tion. C ommission, the application, or (2) that it wishes to Tariffs—Supplements 23 and 165 to [ seal! R. D. P fahler, Southwestern Freight Bureau, agent, tar­ Agent, withdraw the application, failure in which the application will be dismissed iffs ICC 5044 and 4899, respectively. Rates [PR Doc.73-611 Filed l-10-73;8:45 am] are published to become effective on Feb­ by the Commission. Further processing steps (whether ruary 1,1973. FSA No. 42599—Resin plasticizers to [Notice 2] modified procedure, or oral hearing, or points in Florida. Filed by Southwestern other procedures) will be determined Freight Bureau, agent (No. B-368), for MOTOR CARRIER, BROKER, WATER generally in accordance with the Com­ interested rail carriers. Rates on resin CARRIER AND FREIGHT FOR­ mission’s general policy statement con­ plasticizers, in tank-car loads, as de­ WARDER APPLICATIONS cerning motor carrier licensing proce­ scribed in the application, from Bayport dures, published in the Federal R egister January 5,1973. and Houston, Tex., to specified points in issue of May 3, 1966. This assignment will be by Commission order which will Florida. The following applications (except as Grounds for relief—Market competi­ otherwise specifically noted, each appli­ be served on each party of record. Broadening amendments will not be ac­ tion. cant (on applications filed after March Tariff—Supplement 39 to Southwest­ 27,1972) states that there will be no sig­ cepted after the date of this publication ern Freight Bureau, agent, tariff ICC nificant effect on the quality of the hu­ except for good cause shown, and re­ 5019. Rates are published to become ef­ man environment resulting from ap­ strictive amendments will not be enter­ fective on February 12,1973. proval of its application), are governed tained following publication in the Fed­ FSA No. 42600—Salt and related arti­ by special rule 1100.2471 of the Commis­ eral R egister of a notice that the cles to points in southern territory. Filed sion’s general rules of practice (49 CFR, proceeding has been assigned for oral by Traffic Executive Association-Eastern as amended), published in the F ederal hearing. Railroads, agent (E.R. No. 3030), for in­ R egister issue of April 20,1966, effective No. MC 1042 (Sub-No. 8), filed Novem­ terested rail carriers. Rates on salt and May 20,1966. These rules provide, among ber 16, 1972. Applicant: C.P.T. salt compounds and mixtures, salt, com­ other things, that a protest to the grant­ FREIGHT, INC., 2600 Calumet Avenue, mon (sodium chloride), in bulk, in car­ ing of an application must be filed with Hammond, IN 46320. Applicant’s repre­ loads, as described in the applicataion, the Commission within 30 days after sentative: E. H. Heisterberg (same ad­ from Seneca Lake, Retsof, and Ludlow- date of notice of filing of the application dress as applicant). Authority sought to ville, N.Y., to points in southern territory. is published in the F ederal R egister. operate as a common carrier, by motor Grounds for relief—Market competi­ Failure seasonably to file a protest will vehicle, over irregular routes, transport­ be construed as a waiver of opposition tion. ing: Iron and steel articles, and contrac­ and participation in the proceeding. A tors’ m achinery, equipment, materials Tariff—Supplement 108 to Traffic Ex­ protest under these rules should comply ecutive Association-Eastern Railroads, with section 247(d)(3) of the rules of and supplies, between Indian Oaks, 111., agent, tariff ICC A-907. Rates are pub­ practice which requires that it set forth and points in Indiana. Note: Applicant lished to become effective on February 7, specifically the grounds upon which it states that the requested authority can­ 1973. is made, contain a detailed statement of not be tacked with its existing authority. By the Commission. If a hearing is deemed necessary, appli­ i Copies of Special Rule 247 (as amended) cant requests it be held at Chicago, 111. [ seal] R obert L. O swald, can be obtained by writing to the Secretary, Secretary. Interstate Commerce Commission, Washing­ 7 No. MC 1263 (Sub-No. 17) (Correc­ tion) , filed October 17, 1972, published in [PR Doc.73-610 Piled l-10-73;8:45 am] ton, D.C. 20423.

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY IT , 1973 •NOTICES 1321

the Federal R egister issue of Novem­ ber 21,1972, and republished as amended common carrier, by motor vehicle, over ber 16, 1972, and republished as cor­ this issue. Applicant: GEORGE TRANS­ irregular routes, transporting: (1) rected this issue. Applicant: MCCARTY FER AND RIGGING COMPANY, IN­ Treated and untreated poles, posts, pil­ TRUCK LINE, INC., 17th and Harris, CORPORATED, Interstate 83 at Route ing, ties, and lumber, from Flathead Trenton, Mo. 64683. Applicant’s repre­ 439, Baltimore, Md. 21120. Applicant’s County, Mont., to points in North Dakota, sentative: Frank W. Taylor, Jr., 1221 representative: John Guandolo, 1000 South Dakota, Colorado, and Wyoming; Baltimore Avenue, Kansas City, MO 16th Street NW., Washington, DC 20036. and (2) forest products, from points in 64105. Authority sought to operate as Authority sought to operate as a com ­ Montana to points in the United States a common carrier, by motor vehicle, over mon carrier, by motor vehicle, over ir­ (including Alaska and excluding Hawaii) regular routes, transporting: General regular routes, transporting: General on and west of a line beginning at the commodities (except those of unusual commodities (except those of unusual mouth of the Mississippi River, and ex­ value, classes A and B explosives, house­ value, classes A and B explosives, house­ tending along the Mississippi River to hold goods as defined by the Commission, hold goods as defined by the Commission, its junction with the Ohio River at the commodities in bulk, commodities re­ commodities requiring special equipment Illinois State line, thence along the Ohio quiring special equipment, and those in­ and those injurious or contaminating to River to its intersection with the eastern jurious or contaminating to other lading) other lading), between the site of appli­ State boundary of Indiana, thence north­ serving all points within 10 miles of St. cant’s terminal at or near South Hill, ward along the eastern State boundary of Joseph, Mo., and 15 miles of Platte City, Va., on the one hand, and, on the other, Indiana, to its intersection with the Mo., as off-route points in connection points in North Carolina, serving South Michigan State line, and thence eastward with McCarty’s regular route operations Hill, Va., for purpose of joinder only. along the Michigan State line to Lake between Kansas City and St. Joseph, Mo. N ote: Applicant presently holds author­ Erie. Note: Applicant states that the re­ Note : The purpose of this republication ity as above described between Victoria quested authority can be tacked with the is to delete the phrase “for operating con­ and Kenbridge, Va., on the one hand, authority it holds in certificate No. MC venience only, serving no intermediate and, on the other, points in North Caro­ 26396 at points in Wyoming within a 100- points,” which was erroneously pub­ lina, Applicant presently holds authority mile radius of Bridger, Mont., to serve lished. If a hearing is deemed necessary, to transport a number of special com­ points in Montana. If a hearing is deemed applicant requests it be held at Kansas modities between Virginia, on the one necessary, applicant requests it be held at City, Mo. hand, and, on the other, points in the Billings, Mont. following States: Delaware, Kentucky, No. MC 1641 (Sub-No. 99), filed No­ No. MC 30844 (Sub-No. 445), filed vember 20, 1972. Applicant: PEAKE Maryland, New Jersey, New York, Ohio, Pennsylvania, Virginia, West Virginia, November 20,1972. Applicant: KROBLIN TRANSPORT SERVICE, INC., Box 366, REFRIGERATED XPRESS, INC., Post Chester, NE 68327. Applicant’s repre­ and the District of Columbia. Under its existing certificates it is presently au­ Office Box 5000, Waterloo, IA 50704. Ap­ sentative: Einar Viren, 904 City National plicant’s representative: Truman A. Bank Building, Omaha, NE 68102. Au­ thorized to tack at either Victoria or Kenbridge to permit through movements Stockton, The 1650 Grant Street Build­ thority sought to operate as a common ing, Denver, CO. Authority sought to carrier, by motor vehicle, over irregular of traffic between North Carolina, on the one hand, and, on the other, points in the operate as a common carrier, by motor routes, transporting: (1) Fertilizer, fer­ vehicle, over irregular routes, transport­ tilizer materials and ammonium nitrate, States named above. Applicant states it does intend to continue to tack the two ing: Foodstuffs from Ames, Iowa, to in bulk, or in bags from Farmland Indus­ points in Connecticut, Delaware, Maine, tries, Inc., plant or warehouse located at authorities involved but over the addi­ tional gateway of South Hill, Va. If a Maryland, Massachusetts, Michigan, New or near Hastings, Nebr., to points in Hampshire, New Jersey, New York, Penn­ Colorado, Kansas, South Dakota, and hearing is deemed necessary, applicant requests it be held at Washington, D.C. sylvania, Rhode Island, Vermont, Vir­ Wyoming; and (2) liquid asphalt, road ginia, West Virginia, and the District oils, and residual fuel oils, in bulk, in No. MC 26396 (Sub-No. 65), filed No­ of Columbia, restricted to shipments tank vehicles from the Sioux City, Iowa- vember 24, 1972. Applicant: POPELKA originating at the facilities of Carriage South Sioux City Nebraska commercial TRUCKING CO., doing business as, THE House Meat & Provision Co., Inc. Note: zone, including Bridgeport industrial WAGGONERS, Post Office Box 990, Liv­ park, to points in Iowa, Minnesota, Common control may be involved. Ap­ ingston, MT 59047. Applicant’s repre­ plicant states that the requested author­ Nebraska, and South Dakota. Note: sentative: Jacob P. Billig, 1108 16th Applicant states that the requested au­ Street NW., Washington, DC 20036. Au­ ity cannot be tacked with its existing thority cannot be tacked with its exist­ thority sought to operate as a common authority. If a hearing is demed neces­ ing authority. If a hearing is deemed carrier, by motor vehicle, over irregular sary, applicant requests it be held at Des necessary, applicant requests it be held routes, transporting: Wood fence and Moines, Iowa, or Washington, D.C. at Kansas City, Mo., or Omaha, Nebr. materials and wood poles, from points No. MC 30844 (Sub-No. 446), filed No. MC 2202 (Sub-No. 420) (Amend­ in St. Regis, Superior, Troy, Montana; November 20,1972. Applicant: KROBLIN and Idaho, Boundry, Bonner, Kootenai, REFRIGERATED XPRESS, INC., Post ment), filed October 10, 1972, published Shoshone, Ada, Benewah, Latah, Clear­ in the Federal R egister issue of Novem­ Office Box 5000, Waterloo, IA 50704. Ap­ ber 16, 1972, and republished in part as water, Lewis, Nez Perce Counties, Idaho, plicant’s representative: Truman A. to points in Indiana, Michigan, Ohio, Ne­ Stockton, The 1650 Grant Street Build­ amended this issue. Applicant: ROAD­ braska, Minnesota, Iowa, Missouri, Kan­ WAY EXPRESS, INC., 1077 Gorge ing, Denver, CO. Authority sought to Boulevard, Post Office Box 471, Akron, sas, Illinois, Wisconsin, Oklahoma, Wy­ operate as a common carrier, by motor OH 44309. Applicant’s representative: oming, Colorado, New Mexico, Arizona, vehicle, over irregular routes, transport­ James W. Connor (same address as ap­ Utah, Montana, Washington, Oregon, ing: Meats, meat products, meat by­ North and South Dakota. Note: Appli­ plicant). Note: The purpose of this products, and articles distributed by meat partial republication is to show (1) as cant states that the requested authority packinghouses, as described in Sections cannot be tacked with its existing au­ A and C of Appendix I to the report in follows: From Davenport over U.S. High­ thority. If a hearing is deemed necessary, w ay 61 to the junction of U.S. Highway Descriptions in Motor Carrier Certifi­ applicant requests it be held at Portland, cates, 61 M.C.C. 209 and 766 (except hides 61 and Missouri 19, thence over Missouri Oreg. Highway 19 to the junction of Missouri 19 and commodities in bulk), from Man­ mm U.S. Highway 54, thence over U.S. No. MC 26396 (Sub-No. 67), filed No­ kato, Kans., to points in Connecticut, Highway 54 to the junction of U.S. High­ vember 27, 1972. Applicant: POPELKA Delaware, Illinois, Indiana, Iowa, Maine, ways 54 and 40, and return over the same TRUCKING CO., doing business as, THE Maryland, Massachusetts, Michigan, route. The rest of the application remains WAGGONERS, a corporation, Post Office Minnesota, New Hampshire, New Jersey, the same. Box 990, Livingston, MT 59047. Appli­ New York, North Carolina, Ohio, Penn­ No. MC 8535 (Sub-No. 44) (Amend­ cant’s representative: Jacob P. Billig, sylvania, Rhode Island, South Carolina, ment) , filed November 9,1972, published 1108 16th Street NW., Washington, DC Vermont, Virginia, West Virginia, Wis­ in the Federal R egister issue of Decem­ 20036. Authority sought to operate as a consin, and the District of Columbia.

FEDERAL REGISTER, VOL. 3«, NO. 7—-THURSDAY, JANUARY 11, 1973 1322 NOTICES

Note: Common control may be involved. Minnesota. Note: Common control may unrestricted grant of authority. Appli­ Applicant states that the requested au­ be involved. Applicant states that the re­ cant further states it has various dupli­ thority cannot be tacked with its exist­ quested authority could be tacked with cative items of authority under various ing authority. If a hearing is deemed nec­ various subs of MC 51146 and it will tack ' subs but does not seek duplicative author­ essary, applicant requests it be held at with its MC 51146 where feasible, but ity. If a hearing is deemed necessary, Kansas City, Kans., or Washington, D.C. does not identify the points or territories applicant requests it be held at San which can be served through tacking. Francisco, Calif. No. MC 30844 (Sub-No. 447), filed Persons interested in the tacking possi­ No. MC 51146 (Sub-No. 304) filed De­ November 20,1972. Applicant: KROBLIN bilities are cautioned that failure to op­ REFRIGERATED XPRESS, INC., Post cember 11,1972. Applicant: SCHNEIDER pose the application may result in an TRANSPORT, INC., 2661 South Broad­ Office Box 5000, Waterloo, IA 50704. Ap­ unrestricted grant of authority. Appli­ plicant’s representative: Truman A. way, Green Bay, WI 54304. Applicant’s cant further states it has various dupli­ representative: Charles Singer, Suite Stockton, The 1650 Grant Street Build­ cative items of authority under various ing, Denver, CO. Authority sought to 1000, 327 South La Salle Street, Chicago, subs but does not seek duplicative au­ IL 60604. Authority sought to operate as operate as a common carrier, by motor thority. If a hearing is deemed necessary, vehicle, over irregular routes, transport­ a common carrier, by motor vehicle, over applicant requests it be held at Chi­ irregular routes, transporting: Canned ing : Footwear, footwear accessories, and cago, 111. footwear display cases, (1) from Brock­ goods, from the plant and warehouse ton, Mass., to points in Colorado and No. MC 51146 (Sub-No. 301), filed De­ sites of Tri-Valley Growers located at Oklahoma and (2) from Norwood, Mass., cember 7, 1972. Applicant: SCHNEIDER Madera, Modesto and at or near Stock- to points in Colorado, Illinois (except TRANSPORT, INC., 2661 South Broad­ ton, Calif., to points in Texas, Louisiana, Chicago and points in the Chicago com­ way, Green Bay, WT 54304. Applicant’s Arkansas, Mississippi, and Alabama, re­ mercial zone), Iowa, Kansas, Louisiana, representative: Charles Singer, Suite stricted to traffic originating at the Minnesota, Missouri, Nebraska, North 1000, 327 South La Salle Street, Chicago, named plant and warehouse sites and Dakota, Oklahoma, South Dakota, Texas, IL 60604. Authority sought to operate as destined to points in the above named and Wisconsin. Note: Common control a common carrier, by motor vehicle, over States. Note: Common control may be may be involved. Applicant states that irregular routes, transporting: New fu r­ involved. Applicant states that the re­ the requested authority cannot be tacked niture, from Lenoir, N.C., to points in the quested authority could be tacked with with its existing authority. If a hearing Upper Peninsula of Michigan and points various subs of MC 51146 and it will tack is deemed necessary, applicant requests in Illinois on and north of U.S. Highway with its MC 51146 where feasible, but it be held at New York, N.Y., or Wash­ 30 (except points in Chicago, 111., com­ does not identify the points or territories which can be served through tacking. ington, D.C. mercial zone as defined by the Commis­ sion). Note: Common control may be Persons interested in the tacking possi­ No. MC 46737 (Sub-No. 48), filed involved. Applicant states that the re­ bilities are cautioned that failure to op­ December 5, 1972. Applicant: GEO. F. quested authority could be tacked with pose the application may result in an ALGER COMPANY, a corporation, 3050 various subs of MC 51146 and it will tack unrestricted grant of authority. Appli­ Lonyo Road, Detroit, MI 48209. Appli­ with its MC 51146 where feasible, but cant further states it has various dupli­ cant’s representative: Robert A. Sullivan, does not identify the points or territories cative items of authority under various 1800 Buhl Building, Detroit, Mich. 48226. which can be served through tacking. subs but does not seek duplicative au­ Authority sought to operate as a common Persons interested in the tacking possi­ thority. If a hearing is deemed necessary, carrier, by motor vehicle, over irregular bilities are cautioned that failure to op­ applicant requests it be held at San routes, transporting: Gypsum and gyp­ pose the application may result in an Francisco, Calif. sum products, and materials and sup­ unrestricted grant of authority. Appli­ No. MC 52460 (Sub-No. 117), filed plies used in the installation or distribu­ cant further states it has various dupli­ November 26, 1972. Applicant. HUGH tion thereof, from the plantsite and cative items of authority under various BREEDING, INC., Post Office Box 9515, facilities of United States Gypsum Co. subs but does not seek duplicative au­ at River Rogue, Mich., to points in Tulsa, OK 74107. Applicant’s representa­ thority. If a hearing is deemed necessary, tive: Steve B. McCommas (same address Illinois, Kentucky, Pennsylvania, West applicant requests it be held at Chicago. as applicant). Authority sought to oper­ Virginia, and Wisconsin. Note: Applicant 111. ate as a common carrier, by motor ve­ states that the requested authority can­ No. MC 51146 (Sub-No. 303), filed hicle, over irregular routes, transporting: not be tacked with its existing authority. (1) Materials and supplies used in manu­ If a hearing is deemed necessary, ap­ December 11,1972. Applicant: SCHNEI­ DER TRANSPORT, INC., 2661 South facturing of carpeting; (a) from Toccoa, plicant requests it be held at Washington, Ga., to points in Arkansas, Kansas, Mis­ D.C., or Chicago, 111. Broadway, Green Bay, WI 54304. Appli­ cant’s representative: Charles Singer, souri, Oklahoma, and Texas; and (b) No. MC 51146 (Sub-No. 300), filed No- Suite 1000, 327 South La Salle Street, from Rome, Dalton, Oxford, and Colum­ vember 27,1972. Applicant: SCHNEIDER Chicago, IL 60604. Authority sought to bus, Ga., to Poteau, Okla.; (2) rugs and TRANSPORT, INC., 2661 South Broad­ operate as a common carrier, by motor carpeting; (a) from Bristow, Okla., to way, Green Bay, WI 54304. Applicant’s vehicle, over irregular routes, transport­ points in Arkansas, Kansas, Missouri, representative: Charles Singer, Suite ing: Canned goods, from the plant and Texas, and Louisiana; and (b) from 1000, 327 South La Salle Street, Chicago, warehouse sites of Tri-Valley Growers Poteau, Okla., to Des Moines, Iowa, Kan­ IL 60604. Authority sought to operate as located at Madera, Modesto and at or sas City, Kansas-Missouri commercial a common carrier, by motor vehicle, over near Stockton, Calif., to points in North zone and Dallas, Tex.; and (3) finished irregular routes, transporting: Prefin­ Dakota, South Dakota, Iowa, Minne­ carpeting, from Columbus, Ga., to points ished and unfinished plywood, (1) from sota, Wisconsin, Michigan, Illinois, Mis­ in Arkansas, Kansas, Louisiana, Missouri, Baltimore, Md., Camden and Newark, souri, Indiana, Ohio, and Pennsylvania, Oklahoma, and Texas. Note: Applicant N.J., to points in Massachusetts, Rhode restricted to traffic originating at the states that the requested authority can­ Island, Connecticut, New York, Pennsyl­ named plant and warehouse sites and not be tacked with its existing authority. vania, New Jersey, Delaware, Maryland, destined to points in the above named If a hearing is deemed necessary, appli­ Virginia, North Carolina, South Caro­ States. Note: Common control may be cant requests it be held at either Okla­ lina, West Virginia, Ohio, Kentucky, involved. Applicant states that the re­ homa City, Okla.; Atlanta, Ga.; or Little Tennessee, Illinois, Indiana, Michigan, quested authority could be tacked with Rock, Ark. Wisconsin, Minnesota, Iowa, and Mis­ various subs of MC 51146 and it will tack No. MC 52574 (Sub-No. 45), filed souri, and (2) from Joliet and Chicago, with its MC 51146 where feasible, but December 4, 1972. Applicant: ELIZA­ 111., St. Louis, Mo., St. Paul, Minn., and does not identify the points or territories BETH FREIGHT FORWARDING Louisville, Ky., to points in Tennessee, which can be served through tacking. CORP., 120 South 20th Street, Irvington, Kentucky, Ohio, Michigan, Indiana, Persons interested in the tacking possi­ NJ 07111. Applicant’s representative: Wisconsin, Illinois, Arkansas, Oklahoma, bilities are cautioned that falure to op­ Edward F. Bowes, 744 Broad Street, Kansas, Nebraska, Missouri, Iowa, and pose the application may result in an

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 NOTICES 1323

Newark, NJ 07102. Authority songht to applicant requests it be held at Okla­ Tennessee. Note: Applicant states that operate as a contract carrier, by motor homa City, Okla. the requested authority cannot be tacked vehicle, over irregular routes, transport­ No. MC 76266 (Sub-No. 123), filed De­ with its existing authority. If a hearing ing: Bakery products, f rom Totowa, N.J., cember 1, 1972. Applicant: ADMIRAL- is deemed necessary, applicant requests to Somerset, Altoona, and Pittsburgh, Pa., MERCHANTS MOTOR FREIGHT, it be held at Little Rock, Ark. Dover, Del., and Berlin, Md., under a INC., 2625 Territorial Road, St. Paul, No. MC 104523 (Sub-No. 53), filed De­ continuing contract, or contracts, with MN 55114. Applicant’s representative: cember 10, 1972. Applicant: HUSTON S. B. Thomas, Inc., at Totowa, N.J. Note: Cecil L. Goettsch, 11th Floor Des Moines Applicant presently holds permanent TRUCK LINE, INC., Friend, Nebr. 68359. Building, Des Moines, Iowa 50309. Au­ Applicant’s representative: David R. contract carrier authority to transport thority sought to operate as a common Parker, Post Office Box 82028, Lincoln, similar commodities for S. B. Thomas, carrier, by motor vehicle, over irregular NE 68501. Authority sought to operate Inc., from Totowa, N.J., to various points routes, transporting: General commodi­ as a common carrier, by motor vehicle, in Maryland, Pennsylvania, and the Dis­ ties (except those of unusual value, over irregular routes, transporting: trict of Columbia. If a hearing is deemed classes A and B explosives, household Stone; and landscaping, building and necessary, applicant requests it be held goods as defined by the Commission, at New York, N.Y., or Newark, N.J. stone products, materials and supplies, commodities in bulk and those requiring from points in Colorado, New Mexico, No. MC 61592 (Sub-No. 293), filed special equipment) serving the ware­ and Utah to points in Arkansas, Colo­ November 24, 1972. Applicant: JENKINS house site of Western Electric located rado, Idaho, Illinois, Indiana, Iowa, TRUCK LINE, INC., 3708 Elm Street, at or near Underwood, Iowa, as an off- Kansas. Louisiana, Michigan, Minne­ Bettendorf, IA 52722. Applicant’s repre­ route point in connection with appli­ sota, Missouri, Montana, Nebraska, New sentative: Donald Smith, 900 Circle cant’s regular-route operations via Mexico, North Dakota, Ohio, Oklahoma, Tower Building, Indianapolis, Ind. 46204. Omaha, Nebr. Note: Common control South Dakota, Texas, Utah, Wisconsin, Authority sought to operate as a common may be involved. If a hearing is deemed and Wyoming. Note: Applicant states carrier, by motor vehicle, over irregular necessary, applicant requests it be held that the requested authority can be routes, transporting: Plywood, from the at St. Paul, Minn.; Omaha, Nebr.; or tacked with its existing authority in MC Port of New Orleans, La., and the plant- Des Moines, Iowa. 104523 (Sub-No. 40). If a hearing is site of Plywood Pahels, Inc., at or near No. MC 85465 (Sub-No. 53), filed No­ deemed necessary, applicant requests it New Orleans, La., to points in Alabama, vember 30, 1972. Applicant: WEST NE­ be held at Denver, Colo., or Albuquerque, Florida, Georgia, Mississippi, and Ten­ BRASKA EXPRESS, INC., The 1650 N. Mex. nessee. Note: Applicant states that the Grant Street Building, Denver, CO requested authority cannot be tacked No. MC 106644 (Sub-No. 145), filed 80203. Applicant’s representative: Stock- November 13, 1972. Applicant: SUPE­ with its existing authority. Common con­ ton and Lewis (same address as appli­ trol may be involved. If a hearing is RIOR TRUCKING COMPANY, INC., cant). Authority sought to operate as a Post Office Box 916 (2770 Peyton Road deemed necessary, applicant requests it common carrier, by motor vehicle, over be held at New Orleans, La. NW.), Atlanta, GA 30301. Applicant’s irregular routes, transporting: M eat, representative: Fred Coffman, Post Of­ No. MC 61592 (Sub-No. 294), filed meat products, meat by-products, and fice Box 80806, Lincoln, NE 68501. Au­ November 27,1972. Applicant: JENKINS articles distributed by meat packing­ thority sought to operate as a common TRUCK LINE, INC., 3708 Elm Street, houses as described in Sections A and C carrier, by motor vehicle, over irregular Bettendorf,. IA 52722. Applicant’s repre­ of Appendix I to report in Descriptions routes, transporting: Sufitch gears, cir­ sentative: Donald Smith, 900 Circle in Motor Carrier Certificates, 61 M.C.C. cuit breakers, bus bar systems and recti­ Tower Building, Indianapolis, Ind. 46204. 209 and 766 (except hides and commodi­ fiers; parts of the above named com­ Authority sought to operate as a common ties in bulk, in tank vehicles), from m odities, from Camden, N.J., and Phila­ carrier, by motor vehicle, over irregular Huron, S. Dak., to points in Wyoming delphia, Pa., to points in the United routes, transporting: Lumber and lumber and Colorado. Note: Common control States (including Alaska, but excluding products, from points in Beaverhead, may be involved. Applicant states that Hawaii). Note: Applicant holds contract Fergus, Flathead, Gallatin, Granite,. the requested authority cannot be tacked carrier authority under MC 104724 Lake, Lincoln, Mineral, Missoula, Mussel­ with its existing authority. If a hearing (Sub-No. 13), therefore dual operations shell, Powell, Ravalli, Rosebud, and is deemed necessary, applicant requests and common control may be involved. Sanders Counties, Mont., and Salmon, it be held at Minneapolis, Minn., or Applicant states that the requested au­ Idaho, to points in Colorado, Illinois, Rapid City, S. Dak. thority can be tacked with its existing Indiana, Iowa, Kansas, Michigan, Min­ No. MC 103498 (Sub-No. 30), filed De­ authority, but indicates that it has no nesota, Missouri, Nebraska, North Da­ cember 6,1972. Applicant: W. D. SMITH present intention to tack and therefore kota, Ohio, South Dakota, Wisconsin, and TRUCK LINE, INC., Post" Office Drawer does not identify the points or territories Wyoming. Note: Applicant states that C, De Queen, Ark. 71832. Applicant’s rep­ which can be served through tacking. the requested authority cannot be tacked resentative: Donald T. Jack, Jr., 1550 Persons interested in the tacking pos­ with its existing authority. Common con­ Tower Building, Little Rock, AR 72201. sibilities are cautioned that failure to trol may be involved. If a hearing is Authority sought to operate as a com ­ oppose the applications may result in deemed necessary, applicant requests it mon carrier, by motor vehicle, over ir­ an unrestricted grant of authority. If a be held at Billings, Mont. regular routes, transporting: Boards hearing is deemed necessary, applicant No. MC 61592 (Sub-No. 295), filed No­ composed of wood fiber and cement com­ requests it be held at Washington, D.C. vember 27, 1972. Applicant: JENKINS bined and accessories therefor, when No. MC 106748 (Sub-No. 10), filed No­ TRUCK LINE, INC., 3708 Elm Street, moving incidental to and in the same vember 24, 1972. Applicant: GOD­ Bettendorf, IA 52722. Applicant’s repre­ vehicle with subject boards, returned of DARD’S TRANSPORTATION, INC., sentative: Donald Smith, 900 Circle rejected and damaged materials; and Route 4, Fair Haven, Vt. 05743. Appli­ Jower Building, Indianapolis, Ind. return commodities used in the manu­ cant’s representative: John P. Monte 46204. Authority sought to operate as a facture and distribution of the above- 61 Summer Street, Barre, VT 05641. Au­ common carrier, by motor vehicle, over named commodity, from the plantsite thority sought to operate as a common irregular routes, transporting: Liquors, and warehouse of the Gold Bond Build­ carrier, by motor vehicle, over irregu­ wines, and spirits, excluding beer and ing Products, Division of National lar routes, transporting: Crushed, malt beverages, from Louisville, Frank- Gypsum Co., at or near Arkadelphia, ground, and broken limestone in dump Jort, Bardstown, and Ownesboro, Ky., to Ark., to points in Louisiana, Texas, vehicles, from points in Rutland County, luisa and Oklahoma City, Okla. Note: Oklahoma, Iowa, Illinois, Wisconsin, Vt., to points in Connecticut, Massa­ Applicant states that the requested au- Missouri, Kansas, Alabama, Colorado, chusetts, New Hampshire, New Jersey, nonty cannot be tacked with its existing Georgia, Minnesota, Mississippi, Ne­ New York, Pennsylvania, and Rhode Is­ authority. Common control may be in­ braska, New Mexico, North Dakota, land. N ote: Applicant states that the volved, If a hearing is deemed necessary, South Dakota, Florida, Kentucky, and requested authority cannot be tacked

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1324 NOTICES with its existing authority. If a hearing No. MC 107743 (Sub-No. 19), filed necticut, Delaware, Florida, Georgia, is deemed necessary, applicant requests October 12, 1972. Applicant: SYSTEM Illinois, Indiana, Kentucky, Maine, it be held at either (1) Montpelier, Vt.; TRANSPORT, INC., East 6523 Broad­ Maryland, Massachusetts, Michigan, (2) Concord, N.H.; or (3) Boston, Mass. way, Spokane, WA 99206. Applicant’s Mississippi, New Hampshire, New Jer­ representative: Gordon Roberts, Kearns sey, New York, North Carolina, Ohio, j No. MC 107012 (Sub-No. 167), filed Building, Salt Lake City, Utah 84101. Pennsylvania, Rhode Island, South Caro­ November 30, 1972. Applicant: NORTH Authority sought to operate as a com ­ lina, Tennessee, Vermont, Virginia, West AMERICAN VAN LINES, INC,, Post Of­ mon carrier, by motor vehicle, over ir­ Virginia, Wisconsin, and the District of fice Box 988, Lincoln Highway East and regular routes, transporting: Lumber, Columbia. Note: Common control may ; Meyer Road, Fort Wayne, IN 46801. Ap­ wood products, and millwork, from be involved. If a hearing is deemed neces­ plicant’s representative: Donald C. Lewis points in Washington, Idaho, and Ore­ sary, applicant requests it be held at (same address as applicant). Authority gon, to points in Ohio, Michigan on, south Chicago, 111. sought to operate as a common carrier, and west of U.S. Highway 10 and Port by motor vehicle, over irregular routes, No. MC 110988 (Sub-No. 291), filed No- i Huron, Mich. Note: Applicant states vember 24,1972. Applicant: SCHNEIDER transporting: Carpet and carpet pad­ that the requested authority cannot be ding, from Greenville, S.C., to Charleroi TANK LINES, INC., 200 West Cecil tacked with its existing authority. If a Street, Neenah, WI 54956. Applicant’s and Clarion, Pa. Note: Common control hearing is deemed necessary, applicant and dual operations may be involved. Ap­ representative: E. Stephen Heisley, 666 requests it be held at Spokane, Wash., 11th Street NW., Washington, DC 20001. plicant states that the requested author­ or Portland, Oreg. ity cannot be tacked with its existing Authority sought to operate as a common authority. If a hearing is deemed neces­ No. MC 107743 (Sub-No. 20), filed No­ carrier, by motor vehicle, over irregular . sary, applicant requests it be held at vember 21, 1972. Applicant: SYSTEM routes, transporting: Corn products and New York, N.Y., or Washington, D.C. TRANSPORT, INC., East 6523 Broad­ blends thereof, in bulk, in tank or hop­ way, Spokane, WA 99206. Applicant’s per-type vehicles, from Dayton, Ohio, to No. MC 107012 (Sub-No. 169), filed representative: S. J. Cully, Jr., Post Of­ points in Alabama, Connecticut, Dela­ November 30, 1972. Applicant: NORTH fice Box 3456TA, Spokane, WA 99220. ware, Florida, Georgia, Illinois, Indiana, AMERICAN VAN LINES, INC., Post Of­ Authority sought to operate as a com ­ Kentucky, Maine, Maryland, Massa­ fice Box 988, Lincoln Highway East and mon carrier, by motor vehicle, over ir­ chusetts, Michigan, Mississippi, New Meyer Road, Fort Wayne, IN 46801. Ap­ regular routes, transporting: Iron and Hampshire, New Jersey, New York, North plicant’s representative : Donald C. Lewis steel and iron and steel articles (except Carolina, Ohio, Pennsylvania, Rhode (same address as applicant). Authority those, the transportation of which, be­ Island, South Carolina, Tennessee, Ver­ sought to operate as a common carrier, cause of their size or weight, require the mont, Virginia, West Virginia, Wiscon­ by motor vehicle, over irregular routes, use of special equipment, and except sin, and the District of Columbia. Note: I transporting: Fiberglass bathtub and pipe as described in Mercer Extension- Applicant states that the requested au- I shower enclosures, from Cordele, Ga., to Oil Field Commodities, 74 M.C.C. 459), thority cannot be tacked with its exist- I points in Louisiana, Arkansas, Tennes­ from points in California to points in ing authority. Common control may be I see, Mississippi, Alabama, Georgia, Oregon, Washington, Idaho, and Mon­ involved. If a hearing is deemed neces- I Florida, North Carolina, and South Caro­ tana. Note : Applicant states that the re­ sary, applicant requests it be held at I lina. Note: Common control and dual quested authority cannot be tacked with Columbus, Ohio, or Washington, D.C. operations may be involved. Applicant its existing authority. If a hearing is No. MC 110988 (Sub-No. 292), filed No- I states that the requested authority can­ deemed necessary, applicant requests it not be tacked with its existing authority. vember 24,1972. Applicant: SCHNEIDER I be held at San Francisco or Los Angeles, TANK LINES, INC., 200 West Cecil I If a hearing is deemed necessary, appli­ Calif. cant requests it be held at Atlanta, Ga., Street, Neenah, WI 54956. Applicant’s I representative: E. Stephen Heisley, 666 I or Washington, D.C. No. MC 109172 (Sub-No. 10), filed No­ vember 30, 1972. Applicant: NATIONAL 11th Street NW., Washington, DC 20001. I No. MC 107478 (Sub-No. 16), filed De­ TRANSFER, INC., 4100 East Marginal Authority sought to operate as a common I cember 6, 1972. Applicant: OLD DO­ Way S., Seattle, WA 98134. Applicant’s carrier, by motor vehicle, over irregular I MINION FREIGHT LINE, a corpora­ representative: James T. Johnson, 1610 routes, transporting: Com products and I tion, Post Office Box 1189, High Point, IBM Building, Seattle, Wash. 98101. Au­ blends, in bulk, in tank or hopper-type I NC 27261. Applicant’s representative: thority sought to operate as a common vehicles, from the plantsite of the Hu- I Francis W. Mclnerny, 1000 16th Street, carrier, by motor vehicle, over irregular binger Co. at or near Elk Grove Village, I NW., Washington, DC 20036. Authority routes, transporting: General commodi­ 111., to points in Illinois, Indiana, Ken- I sought to operate as a common carrier, ties, in cargo vans and containers only; tucky, Michigan, Minnesota, Ohio, Ten- I by motor vehicle, over regular routes, and empty cargo vans and containers; nessee, West Virginia-, and Wisconsin. I transporting: General commodities (ex­ (1) between points in King, Pierce, Lewis, Note: Applicant states that the re- I cept those of unusual value, dangerous Clark, and Cowlitz Counties, Wash.; and quested authority cannot be tacked with I articles, household goods, commodities (2) between points in King, Pierce, its existing authority. Common control I in bulk, commodities requiring special Lewis, Clark, and Cowlitz Counties, may be involved. If a hearing is deemed I equipment, and those injurious or con­ Wash., on the one hand, and, on the necessary, applicant requests it be held I taminating to other lading), (1) between other, points in Multnomah, Clackamas, at Chicago, 111., or Washington, D.C. Richmond, Va., and Henderson, N.C., Yamhill, Washington, and Marion Coun­ No. MC 111545 (Sub-No. 178), filed I from Richmond over Interstate High­ ties, Oreg. Note: Applicant states that December 10, 1972. Applicant: HOME I way 95 to its junction with Interstate the requested authority cannot be tacked TRANSPORTATION COMPANY, INC, I Highway 85, thence over Interstate with its existing authority. If a hearing 1425 Franklin Road, Marietta, GA 30062. I Highway 85 to Henderson, N.C., and re­ is deemed necessary, applicant requests turn over the same route; and (2) be­ it be held at Seattle, Wash. Applicant’s representative: Robert E. I tween Richmond, Va., and Roanoke Bom, Post Office Box 6426, Station A, I Rapids, N.C., from**Richmond over In­ No. MC 110420 (Sub-No. 669), filed Marietta, GA 30062. Authority sought to I terstate Highway 95 and/or U.S. High­ November 22,1972. Applicant: QUALITY CARRIERS, INC., Post Office Box 186, operate as a common carrier, by motor I way 301 to Roanoke Rapids, and return vehicle, over irregular routes, transport- I over the same route, as alternate routes Pleasant Prairie, WI 53158. Applicant’s for operating convenience only in con­ representative: Fred H. Figge (same ad­ ing: Plastic pipe and tubing, iron and I nection with applicant’s presently held dress as applicant). Authority sought to steel pipe and tubing and fittings for pip* I regular-route authority and serving no operate as a common carrier, by motor and tubing, from the plantsite of Tex- I intermediate points. Note: If a hearing vehicle, over irregular routes, transport­ Tub Division, Detroit Steel Corp., a di- I is deemed necessary, applicant requests ing: Corn products and blends thereof, in bulk, over irregular routes, from Day- vision of Cyclops Corp., at or near Hous- I it be held at Washington, D.C., or High ton, Tex., to points in the United States I Point, N.C. ton, Qhio, to points in Alabama, Con­

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 NOTICES 1325

[ (except Alaska and Hawaii). Note: Ap­ Nebraska, Kansas, and Missouri to St. points in Ada County, Idaho, to points in plicant states that the requested au- Paul and Minneapolis, Minn., under con­ Baker, Grant, Harney, Malheur, Uma­ I thority can be tacked with its existing tract with Hoemer, Waldorf Corp. Re­ tilla, Union, and Wallowa Counties, [ authority, but indicates that it has no striction: Restricted to traffic originating Oreg., and points in Nevada; and (b) present intention to tack and therefore at or destined to the plantsites or ware­ from points in Nevadajfco points in Ada does not identify the points or territories house facilities utilized by Hoerner Wal­ County, Idaho; and (4) corrugated steel I which can be served through tacking. dorf Corp. at St. Paul and Minneapolis, pipe and steel storage tanks, from points [ Persons interested in the tacking possi- Minn. Note: The purpose of this republi­ in Ada County, Idaho, to points in I bilities are cautioned that failure to op- cation is to redescribe the authority Baker, Grant, Harney, Malheur, Uma­ [ pose the application may result in an un- sought. If a hearing is deemed necessary, tilla, Union and Wallowa Counties, Oreg. I restricted grant of authority. If a hearing applicant requests it be held at Omaha, Note: Applicant states that portions of I is deemed necessary, applicant requests Nebr. the requested authority can be tacked I it be held at Houston, Tex. No. MC 113855 (Sub-No. 264), filed with applicant’s presently held authority No. MC 111812 (Sub-No. 482), filed November 24, 1972. Applicant: INTER­ but has no present intention of tacking. November 27, 1972. Applicant: MID­ NATIONAL TRANSPORT, INC., 2450 Persons interested in the tacking possi­ WEST COAST TRANSPORT, INC., 900 Marion Road SE„ Rochester, MN 55901. bilities are cautioned that failure to West Delaware, Post Office Box 1233, Applicant’s representative: Alan Foss, oppose the application may result in an Sioux Falls, SD 57101. Applicant’s repre­ 502 First National Bank Building, Fargo, unrestricted grant of authority. If a sentative: Donald L. Stern, 530 Univac N. Dak. 58102. Authority sought to op­ hearing is deemed necessary, applicant Building, 7100 West Center Road, erate as a common carrier, by motor ve­ requests it be held at Boise, Idaho. Omaha, NE 68106. Authority sought to hicle, over irregular routes, transporting: No. MC 115092 (Sub-No. 22), filed operate as a common carrier, by motor Mining equipment and construction November 8, 1972. Applicant: WEISS vehicle, over irregular routes, transport­ equipment, and attachments and parts TRUCKING, INC., Post Office Box 0, ing: Frozen foods, from Chicago and of mining equipment and construction Vernal, UT 84078. Applicant’s repre­ Deerfield, HI., to points in California, re­ equipment, between Salt Lake City and sentative: Mark K. Boyle, 345 South stricted to traffic originating at the plant- Monticello, Utah; Lebanon, Mo.; and State Street, Salt Lake City, UT 84111. sites and warehouses utilized by the Rock, Mich., on the one hand, and, on the Authority sought to operate as a common Kitchens of Sara Lee at the above-named other, points in the United States (ex­ carrier, by motor vehicle, over irregular origin points and destined to California. cept Hawaii but including Alaska). Note : routes, transporting: (1) Torches and a c­ Note: If a hearing is deemed necessary, Applicant states that the requested au­ cessories, metal heating or melting fur­ applicant requests it be held at Chicago, thority can be tacked with its existing naces, liquefied petroleum gases in steel Hk authority but indicates that it has no cylinders, portable gas stoves, lanterns, No. MC 112750 (Sub-No. 291), filed present intention to tack. Persons inter­ engine starters, steel tool boxes, hard­ December 11, 1972. Applicant: AMERI­ ested in the tacking possibilities are ware, camping equipment and accessor­ CAN COURIER CORPORATION, 2 Ne­ cautioned that failure to oppose the ap­ ies including, but not limitd to barrack, vada Drive, Lake Success, NY. Appli­ plication may result in an unrestricted duffel, clothing or sleeping bags, water­ cant's representative: John M. Delaney grant of authority. If a hearing is deemed proofing compound, mattresses, tents, (same address as applicant). Authority necessary, applicant requests it be held tent poles or stakes, cotton piece goods, sought to operate as a contract carrier, at Salt Lake City, Utah. cloth awnings, tarpaulins, cotton cloth- by motor vehicle, over irregular routes, No. MC 114045 (Sub-No. 374), filed iug, portable toilet seats, folding camp transporting: Commercial papers, docu­ August 25, 1972. Applicant: TRANS­ seats, portable alcohol stoves, pads, cots ments, written instruments, and business COLD EXPRESS, INC., Post Office Box and umbrellas, from Sycamore, HI., to records (except currency and negotiable 5842, Dallas, TX 75222. Applicant’s rep­ points in Arizona, California, and Nevada securities) as are used in the business resentative: J. B. Stuart (same address and (2) tents and accessories, from Bell- of banks and banking institutions, be­ as applicant). Authority sought to oper­ wood, HI., to same destinations as (1) tween Adrian, Mich., and Toledo, Ohio, ate as a common carrier, by motor ve­ above. Note: Applicant states that the under contract with banks and banking hicle, over irregular routes, transporting: requested authority cannot be tacked institutions. Note: Applicant holds com­ Petroleum lubricating oils, cleaning, and with its existing authority. If a hearing mon carrier authority under MC 111729 polishing compounds, in vehicles equipped is deemed necessary, applicant requests and subs thereto, therefore dual opera­ with mechanical refrigeration, from Bal­ it be held at Chicago, HI. tions may be involved. Common control timore, Md., to points in Texas. Note: may also be involved. If a hearing is No. MC 116459 (Sub-No. 46), filed Applicant states that the requested au­ November 30, 1972. Applicant: RUSS deemed necessary, applicant requests it thority cannot be tacked with its ex­ be held at Detroit, Mich. TRANSPORT, INC., Post Office Box 4022 isting authority. If a hearing is deemed Chattanooga, TN 37405. Applicant’s rep­ | No. MC 113382 (Sub-No. 15) (Amend necessary, applicant requests it be held resentative : Leonard A. Jaskiewicz, Suite £ e?t),m ed October 11, 1972, publishe at Washington, D.C., or Chicago, HI. 501,1730 M Street NW., Washington, DC m me Federal R egister issue of Novem No. MC 114840 (Sub-No. 13), filed 20036. Authority sought to operate as a [oer 9 1972, and republished as amende November 27, 1972. Applicant: EUGENE common earner, by motor vehicle, over I Issue‘ Applicant: NELSEN BROS EBY, GLENN EBY AND WAYNE EBY, irregular routes, transporting: Animal ? ffice Box 613> Nebraska Citj a partnership, doing business as, EBY and poultry feed ingredients in bulk, in U/T „ 10* Applicant’s representative:^ BROTHERS, Route 2, Boise, ID 83702. •tank vehicles and packages, from Chat­ Max Harding, Post Office Box 82028, Lin Applicant’s representative: Kenneth G tanooga, Tenn., to points in Alabama, I cohi, NE 68501. Authority sought to oper Bergquist, Post Office Box 1775, Boise, Arkansas, Florida, Georgia, Kentucky, ate as a contract carrier, by motor ve ID 83701. Authority sought to operate Louisiana, Mississippi, Missouri, North I m DVer irre^ular routes, transporting as a common carrier, by motor vehicle, Carolina, Tennessee, South Carolina, and Intij :per awd PaPer products, product over irregular routes, transporting: (l) Virginia. N ote: Common control may be I L or distributed by manufactur Lumber, lumber products, particle board, involved. Applicant states that the re­ converters of paper and pape and poles, from points in Baker, Grant, quested authority cannot be tacked with P ^ucts, fr°m Minneapolis, Minn., t Harney, Malheur, Morrow, Umatilla, Un­ its existing authority. If a hearing is S T ? i 1,South Dakota, Nebraska, Kan ion, and Wallowa Counties, Oreg., and deemed necessary, applicant requests it and (2 ) Materials am points in Idaho to points in Nevada; (2) be held at Nashville, Tenn., or Atlanta, .**d in the manufacture am precast and prestressed concrete prod­ Ga. I istnbution of the commodities in (I ucts, from points in Ada County, Idaho, No. MC 116544 (Sub-No. 137), filed la ove (except commodities in bulk am to points in Baker, Grant Harney, Mal­ pmtaodities which by reason of size o: November 2, 1972. Applicant: WILSON heur, Umatilla, Union, and Wallowa BROTHERS TRUCK LINE, INC., 700 rf quire the use of special equip Counties, Oreg., and points in Nevada; I uu, from points in South Dakota East Fairview Avenue, Post Office Box (3) stone and clay products, (a) from 636, Carthage, MO 64836. Applicant’s

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1326 NOTICES representative: Floyd F. Knutson (same states that no duplicating authority is to operate as a common carrier, by motor address as applicant). Authority sought sought. Common control may be in­ vehicle, over irregular routes, trans­ to operate as a common carrier, by motor volved. If a hearing is deemed necessary, porting: Canned citrus products (other vehicle, over irregular routes, transport­ applicant does not specify a location. than frozen) and dried citrus pulp, from ing: Frozen foods, from Hampton, Iowa, No. MC 118457 (Sub-No. 9), filed No­ points in Cameron, Hidalgo, Starr, and to points in Florida, Georgia, Alabama, vember 30, 1972. Applicant: ROBBINS Willacy Counties, Tex., to points in the Mississippi, and Louisiana. Note: Com­ DISTRIBUTING COMPANY, INC., West United States (except Alaska, Hawaii, mon control may be involved. Applicant 145 South 6550 Tess Corners Drive, Arkansas, Colorado, Illinois, Iowa, Kan­ states that the requested authority can­ Muskego, WI 53150. Applicant’s repre­ sas, Minnesota, Missouri, Nebraska, not be tacked with its existing authority. sentative: William C. Dineen, 710 North North Dakota, Oklahoma, South Dakota, If a hearing is deemed necessary, ap­ Plankinton Avenue, Milwaukee, WI Texas, and Wisconsin). Note: Applicant plicant requests it be held at Chicago, 53203. Authority sought to operate as a states that the requested authority can­ 111. common carrier, by motor vehicle, over not be tacked with its existing authority. If a hearing is deemed necessary, appli­ No. MC 117169 (Sub-No. 4), filed irregular routes, transporting: (1) Frozen foods, from Chicago Heights, HI., cant requests it be held at Harlingen, November 29, 1972. Applicant: BEAS­ Tex., or Washington, D.C. LEY’S HOT SHOT SERVICE, INC., Post to points in Wisconsin, Indiana, Ohio, Office Box 161, Farmington, NM 87401. and the Lower Peninsula of Michigan No, MC 119789 (Sub-No. 137), filed Applicant’s representative:- Edward T. and (2) meat, meat products and meat December 1, 1972. Applicant: CARAVAN Lyons, Jr., 420 Denver Club Building, byproducts and articles distributed by REFRIGERATED CARGO, INC., Post Denver, Colo. 80202. Authority sought to meat packinghouses, as described in sec­ Office Box 6188 (1612 East Irving Boule­ operate as a common carrier, by motor tions A and C of Appendix I to the report vard) , Dallas, TX 75222. Applicant’s rep­ vehicle, over irregular routes, transport­ in Descriptions in Motor Carrier Certifi­ resentative: James K. Newbold, Jr., (same ing: Machinery, equipment, materials cates, 61 MCC 209 and 766 (except hides address as applicant). Authority sought and supplies used in or in connection and commodities in bulk), from the town ' to operate as a common carrier, by motor with, the discovery, development, produc­ of Paris, Kenosha County, Wis., to points vehicle, over irregular routes, transport­ tion, refining, manufacture, processing, in minois, Indiana, Iowa, Ohio, Ken­ ing: Playground apparatus, recreational storage, transmission, and distribution tucky, Missouri, the Lower Peninsula of equipment,, and sporting goods, from of natural gas and petroleum and their Michigan, and Minnesota. Note: Appli­ Bossier City, La., to points in North Caro­ products and by-products, and machin­ cant states that the requested authority lina, South Carolina, Georgia, Florida, ery, materials, equipment, and supplies cannot be tacked with its existing au­ Virginia, Alabama, and Mississippi. Note: used in or in connection with, the con­ thority. If a hearing is deemed necessary, Applicant states that the requested au­ struction, operation, repair, servicing, applicant requests it be held at Mil­ thority cannot be tacked with its existing maintenance, and dismantling of pipe­ waukee, Wis., or Chicago, 111. authoriy. If a hearing is deemed neces­ lines (except the stringing or picking up No. MC 118989 (Sub-No. 83), filed De­ sary applicant requests it be held at of pipe in connection with main or trunk cember 1, 1972. Applicant: CONTAINER Shreveport, La., or Washington, D.C. pipelines), between points in Arizona, TRANSIT, INC., 5223 South Ninth No. MC 123048 (Sub-No. 239), filed that part of Colorado on and south of Street, Milwaukee, WI 53221. Applicant’s November 27, 1972. Applicant: DIA­ U.S. Highway 50, New Mexico and Utah. representative: Robert H. Levy, 29 South MOND TRANSPORTATION SYSTEM, Note : Applicant states that the authority La Salle Street, Chicago, IL 60603. Au­ INC., 1919 Hamilton Avenue, Racine, WI sought could be tacked at points in San thority sought to operate as a common 53401. Applicant’s representative: Paul C. Juan County, N. Mex., with existing au­ carrier, by motor vehicle, over irregular Gartzke, 121 West Doty Street, Madison, thority in its Sub-No. 1, to provide service routes, transporting: Metal containers WI 53703. Authority sought to operate to and from Nevada and that part of (cans) and parts related thereto, from as a common carrier, by motor vehicle, Wyoming on and south of U.S. Highway Indianapolis, Ind., to Sheboygan, Apple- over irregular routes, transporting: Pre­ 26. If a hearing is deemed necessary, ap­ ton, and Plymouth, Wis. Note: Appli­ finished and unfinished plywood, (1) plicant requests it be held at Denver, cant states that the requested authority from Baltimore, Md., Camden and New­ Colo. cannot be tacked with its existing au­ ark, N.J., to points in Illinois, Indiana, thority. If a hearing is deemed neces­ No. MC 117574 (Sub-No. 221), filed Iowa, Kentucky, Michigan, Minnesota, sary, applicant requests it be held at Missouri, Ohio, Tennessee, Wisconsin, October 19, 1972. Applicant: DAILY FIX- Chicago, m .‘ PRESS, INC., Post Office Box 39, Car­ and those in Pennsylvania on and west of lisle, PA 17013. Applicant’s representa­ No. MC 119789 (Sub-No. 134), filed U.S. Highway 219, and (2) from Louis­ tive: James W. Hagar, 100 Pine Street, November 30, 1972. Applicant: CARA­ ville, Ky., St.. Paul, Minn., and St. Louis, Post Office Box 1166, Harrisburg, PA VAN REFRIGERATED CARGO, INC., Mo., to points in Illinois, Iowa, Indiana, 17108. Authority sought to operate as Post Office Box 6188, 1612 East Irving Kentucky, Michigan, Minnesota, Mis­ a common carrier, by motor vehicle, over Boulevard, Dallas, TX 75222. Applicant’s souri, Nebraska, Ohio, Tennessee, and irregular routes, transporting: Tractors representative: James K. Newbold, Jr., Wisconsin. Note: Applicant states that (except truck tractors), tractor parts Post Office Box 6188, Dallas, TX 75222. the requested authority cannot be tacked and attachments therefor, from Romeo, Authority sought to operate as a common with its existing authority. If a hearing Mich., to points in that part of Illinois carrier, by motor vehicle, over irregular is deemed necessary, applicant requests east of U.S. Highway 51 and north of routes, transporting: Foodstuffs, in con­ it be held at Chicago, HI., or Washington, U.S. Highway 50; Indiana, Ohio, that tainers (except frozen foods), from Cros- D.C. part of Kentucky east of U.S. Highway well and Edmore, Mich., to points in No. MC 124078 (Sub-No. 535)*, filed De­ 127, that part of New York west of a line Texas, Oklahoma, Arkansas, Louisiana, cember 11, 1972. Applicant: SCHWER- beginning at the New York-Pennsylvania Kansas, and Missouri. Note: Applicant MAN TRUCKING CO., a corporation, State line and extending along U.S. states that the requested authority can­ 611 South 28 Street, Milwaukee, WI Highway 219 to Hamburg, N.Y., and not be tacked with its existing authority. 53246. Applicant’s representative: James thence along U.S. Highway 62 to Ni­ If a hearing is deemed necessary, appli­ R. Ziperski (same address as applicant). agara, N.Y., that part of Pennsylvania cant requests it be held at Newark, N.Y., Authority sought to operate as a com­ west of U.S. Highway 219, and that part or Dallas, Tex. mon carrier, by motor vehicle, over ir­ No. MC 119789 (Sub-No. 135), filed regular routes, transporting: Corn prod­ of West Virginia west of U.S. Highway ucts and blends thereof, in bulk, from 219. Restriction: The authority sought November 14,1972. Applicant: CARAVAN Dayton, Ohio, to points in Alabama, hereinabove is restricted to the trans­ REFRIGERATED CARGO, INC., Post Connecticut, Delaware, Florida, Georgia, portation of shipments originating at the Office Box 6188 (1612 East Irving Boule­ Illinois,, Indiana, Kentucky, Maine, plantsite of Ford Motor Co. at Romeo, vard) , Dallas, TX 75222. Applicant’s rep­ Maryland, Massachusetts, Michigan, Mich., and destined to the named desti- resentative: James K . Newbold, Jr. (same Mississippi, New Hampshire, New Jer* • nation points above. Note: Applicant address as applicant). Authority sought sey, New York, North Carolina, Ohio,

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 NOTICES 1327

Pennsylvania, Rhode Island, South Caro­ No. MC 128527 (Sub-No. 32), filed tions in Motor Carrier Certificates, 61 lina, Tennessee, Vermont, Virginia, West November 27, 1972. Applicant: MAY M. C.C. 209 and 766, from the town of Virginia, Wisconsin, and the District of TRUCKING COMPANY, a corporation, Harmony (located in Chautauqua Columbia. Note: Applicant states that Post Office Box 398, Payette, ID 83661. County), N.Y. to points in Adams, Alle­ the requested authority can be tacked Applicant’s representative: C. Marvin gheny, Armstrong, Beaver, Bedford, with its existing authority but indicates May (same address as applicant). Au­ Blair, Bradford, Butler, Cambria, Cam­ that it has no present intention to tack thority sought to operate as a common eron, Centre, Clarion, Clearfield, Clinton, and therefore does not identify the carrier, by motor vehicle, over irregular Columbia, Elk, Fayette, Forest, Frank­ points or territories which can be served routes, transporting: Meat and meat lin, Fulton, Greene, Huntingdon, Indiana, through tacking. Persons interested in products, from Caldwell, Idaho, to points Jefferson, Juniata, Lawrence, Lycoming, the tacking possibilities are cautioned in Oregon west of the Cascade Mountain Mercer, Mifflin, Montour, Northumber­ that failure to oppose the application Range. Note: Applicant states that the land, Perry, Potter, Schuylkill, Snyder, may result in an unrestricted grant of requested authority cannot be tacked Somerset, Sullivan, Susquehanna, Tioga, authority Common control may be in­ with its existing authority. If a hearing is Union, Washington, Westmoreland, Wy­ volved. If a hearing is deemed neces­ deemed necessary, applicant requests it oming Counties, Pa., to points in Ashta­ sary, applicant requests it be held at be held at Boise, Idaho. bula, Columbiana, Mahoning, and Trum­ Columbus, Ohio. No. MC 134097 (Sub-No. 2), filed No­ bull Counties, Ohio, under a continuing No. MC 124813 (Sub-No. 100), filed No­ vember 27, 1972. Applicant: HAHN contract with Fairbank Farms, Inc. vember 20, 1972. Applicant: UNTHUN TRANSPORTATION, INC., New Market, Note: If a hearing is deemed necessary, TRUCKING CO., a corporation, 910 Md. 21774. Applicant’s representative: applicant requests it be held at Buffalo, South Jackson Street, Eagle Grove, IA Francis J. Ortman, 1100 17th Street NW., N. Y. 50533. Applicant’s representative: Wil­ Suite 613, Washington, DC 20036. Au­ No. MC 134922 (Sub-No. 38), filed De­ liam L. Fairbank, 900 Hubbell Building, thority sought to operate as a contract cember 11, 1972. Applicant: B. J. Mc- Des Moines, Iowa 50309. Authority carrier, by motor vehicle, over irregular ADAMS, INC., Route 6, Box 15, North sought to operate as a common carrier, routes, transporting: Gasoline, in bulk, Little Rock, AR 72118. Applicant’s rep­ by motor vehicle, over irregular routes, in tank vehicles, from Baltimore, Md., to resentative: L. C. Cypert (same address transporting: (1) Soybean flour and feed the gasoline stations of Cheker Oil Co. as above). Authority sought to operate ingredients, from points in Illinois to in Winchester, Va., Harrisburg, and Mid­ as a common carrier, by motor vehicle, Muscatine, Iowa, and (2) feed, from dletown, Pa., under contract with Cheker over irregular routes, transporting: Dundee, 111., to points in Iowa, Minne­ Oil Co. Note: Applicant also holds com­ Foodstuffs, from Clifton, N.J., to points sota, and Missouri. Note: Applicant mon carrier authority under MC 56388 in Alabama, Florida, Georgia, Louisiana, states that the requested authority can and subs, therefore dual operations may Mississippi, North Carolina, and South be tacked at Muscatine to transport feed be involved. If a hearing is deemed nec­ Carolina. Note: Applicant states that ingredients to points in Kansas, Mis­ essary, applicant requests it be held at the requested authority cannot be tacked souri, and Nebraska and at Eagle Grove, Washington, D.C. with its existing authority. If a hearing Iowa, to transport feed to Nebraska, No. MC 134369 (Sub-No. 3), filed De­ is deemed necessary, applicant requests South Dakota, Colorado, and Wyoming. cember 6, 1972. Applicant: CARLSON it be held at Clifton, N.J., or Little Rock, If a hearing is deemed necessary, appli­ TRANSPORT, INC., Post Office Box R, Ark. cant requests it be held at Kansas City, Byron, IL 61010. Applicant’s representa­ Mo., Des Moines, Iowa, or Chicago, ¿1. No. MC 135220 (Sub-No. 4), filed De­ tive: Carl L. Steiner, 39 South La Salle cember 6, 1972. Applicant: MORRIS No. MC 125777 (Sub-No. 139), filed Street, Chicago, IL 60603. Authority MILLER, 288 Maple Avenue, Cassadaga, November 13, 1972. Applicant: JACK sought to operate as a common carrier, NY 14718. Applicant’s representative: GRAY TRANSPORT, INC., 4600 East by motor vehicle, over irregular routes, William J. Hirsch, Suite 444, 35 Court 15th Avenue, Gary, IN 46403. Appli­ transporting: Sand, in bulk, from (1) Street, Buffalo, NY 14202. Authority cant’s representative: Axelrod, Good­ Michigan City, Ind., to points in the sought to operate as a common carrier, man, Steiner & Bazelon, 39 South La Lower Peninsula of Michigan, Waukegan by motor vehicle, over irregular routes, Salle Street, Chicago, IL 60603, Authority and North Chicago, HI., and points in the transporting: Printed matter, and news­ sought to operate as a common carrier, Chicago, HI., commercial zone as defined paper supplements otherwise exempt by motor vehicle, over irregular routes, by the Commission. Points in Ohio; (2) from economic regulation pursuant to transporting: Coke, in dump vehicles, points in Berrien County, Mich., to points section 203(b) (7) of the Act when trans­ from Chicago, HI., to points in Michigan. in Indiana, points in Ohio and that part ported in mixed loads with printed mat­ Note: Applicant states that the re­ of Illinois north of U.S. Highway 36, and ter, from the plantsites of the Greater quested authority cannot be tacked with (3) Oregon, HI., to points in Indiana, Buffalo Press, Inc., at Buffalo and Dun­ its existing authority. If a hearing is points in the Lower Peninsula of Michi­ kirk, N.Y., to points in Connecticut, Illi­ deemed necessary, applicant requests it gan and points in Ohio, restricted to nois, Indiana, Iowa, Massachusetts, be held at Chicago, m. traffic originating at the plantsite and Michigan, Minnesota, Missouri, Ne- No. MC 128375 (Sub-No. 87), filed No­ facilities of Martin-Marietta Corp. Note: braka, New Hampshire, New York, Ohio, vember 30, 1972. Applicant: CRETE Applicant states that the requested au­ Pennsylvania, Rhode Island, Vermont, CARRIER CORPORATION, Box 249, thority cannot be tacked with its exist­ and Wisconsin, and returned shipments Crete, NE 68333. Applicant’s representa­ ing authority. If a hearing is deemed on return. Note: Applicant states that necessary, applicant requests it be held the requested authority cannot be tacked tive: Ken Adams (same address as appli­ at Chicago, 111. cant). Authority sought to operate as a with its existing authority. If a hearing contract carrier, by motor vehicle, over No. MC 134601 (Sub-No. 4), filed Oc­ is deemed necessary, applicant requests irregular routes, transporting: Motor ve­ tober 26, 1972. Applicant: GOOSE it be held at Buffalo, N.Y. hicle “parts and accessories, and those CREEK TRANSPORT, INC., Rural De­ No. MC 135423 (Sub-No. 2), filed No­ commodities used in the manufacture, livery No. 1, Ashville, N.Y. 14710. Appli­ vember 24, 1972. Applicant: FRANKLIN production, and distribution of motor cant’s representative: Kenneth T. John­ GORDON, Rural Route 1, Manilla, Ind. vehicle parts and accessories (except in son, Bankers Trust of Jamestown Build­ 46150. Applicant’s representative: Rob­ bulk) between Ripley, Tenn., on the one ing, Jamestown, N.Y. 14701. Authority ert W. Loser II, 1009 Chamber of Com­ hand, and, on the other, points in the sought to operate as a contract carrier, merce Building, Indianapolis, Ind. 46204. United States (including Alaska and by motor vehicle, over irregular routes, Authority sought to operate as a contract Hawaii), under a continuing contract transporting: Meats, meat products and carrier, by motor vehicle, over irregular meat by-products, dairy products and routes, transporting: Animal and poul­ with the Maremont Corp. Note: If a articles distributed by meat packing­ hearing is deemed necessary, applicant try feed, feed supplements, and feed in­ houses (except hides and commodities in gredients, between Rushville, Ind., on the requests it be held at Lincoln, Nebr., or bulk) as described in Sections A, B, and Chicago, Hi. one hand, and, on the other, points in C of Appendix I to the report in Descrip­ Ohio; and Anderson, Boone, Bourbon,

No. 7—Pt. I- FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY I I , 1973 1328 NOTICES

Bracken, Bullitt, Campbell, Carroll, Smith, 33 East 10th Avenue, Post Office hand, and, on the other, points in Con­ Fayette, Franklin, Gallatin, Grant, Box 334, Eugene, OR 97401. Authority- necticut, Delaware, Illinois, Indiana, Hardin, Harrison, Henry, Jefferson, Jes­ sought to operate as a contract carrier, Maine, Maryland, Massachusetts, Min­ samine, Kenton, Larue, Marion, Mercer, by motor vehicle, over irregular routes, nesota, New Hampshire, New Jersey, New Nelson, Nicholas, Oldham, Owen, Pen­ transporting: Reinforcing steel, from York, Ohio, Pennsylvania, Rhode Island, dleton, Robertson, Scott, Shelby, Spencer, McMinnville, Oreg. (Cascade Steel Roll­ Vermont, and Wisconsin; (2) paperboard Trimble, Washington, and Woodford ing Mills), to San Jose, Calif., under con­ boxes, folding cartons, and papermill Counties, Ky. Restriction: The opera­ tract with Cascade Steel Rolling Mills. supplies, between Saratoga, N.Y., on the tions authorized herein are limited to a Note: If a hearing is deemed necessary, one hand, and, on the other, points in transportation service to be performed applicant requests it be held at Eugene, New Jersey, Nassau, and Suffolk Coun­ under a continuing contract, or con­ McMinnville or Portland, Oreg. ties, N.Y., and New York City; and (3) tracts, with Cargill, Inc., Nutrena Feed No. MC 136769 (Sub-No. 3), filed No­ paper and paper mill supplies, between Division. Note: If a hearing is deemed vember 13, 1972. Applicant: POP Greenwich, N.Y., on the one hand, and, necessary, applicant requests it be held TRUCKING, INC., 20 North Main Street, on the other, points in New Jersey, Nas­ at Indianapolis, Ind., or Cincinnati, Cornelia, GA. Applicant’s representative: sau and Suffolk Counties, N.Y., and New Ohio. Guy H. Postell, Suite 713, 3384 Peachtree York City, under contract with Sandy Hill Corp., Hollingsworth & Vose Co., and No. MC 135553 (Sub-No. 6), filed De­ Road NE., Atlanta, GA 30326. Authority sought to operate as a contract carrier, the A. L. Gerger Co. Note: Applicant also cember 6, 1972. Applicant: HENRY AN­ holds common carrier authority under DERSEN, INC., 1618 College Avenue, by motor vehicle, over irregular routes,, Fredericksburg, VA 22401. Applicant’s transporting: (1) Nonalcoholic bever­ MC 119297 and subs, therefore dual op­ erations may be involved. If a hearing is representative: Chester A. Zyblut, 1522 ages, in containers, and nonalcoholic beverage concentrate and syrup, other deemed necessary, applicant requests it K Street NW., Washington, DC 20005. be held at Albany or New York, N.Y. Authority sought to operate as a contract than frozen, in containers, from Augusta, carrier, by motor vehicle, over irregular Ga., Inman, S.C., and the plant and No. MC 136980, filed August 3, 1972. routes, transporting: (1) Meats, meat warehouse sites of Custom Canners, Inc., Applicant: TERRANCE W. SHEARER, products, and meat "byproducts and ar­ located at points in Gwinnett and De Rural Delivery No. 1, Hinsdale Highway, ticles distributed by meat packinghouses, Kalb Counties, Ga., to points in Arkan­ Box 337, Olean, NY 14760. Applicant’s as described in Sections A and C of Ap­ sas, Illinois, Indiana, Missouri, Ohio, representative: David P. Feldman, 714 pendix I to the report in Descriptions in Pennsylvania, and Texas; and (2) mate­ Genesee Building, Buffalo, NY 14202. Au­ Motor Carrier Certificates, 61 M.C.C. 209 rials, supplies, and equipment used in the thority sought to operate as a contract and 766 (except commodities in bulk), production and distribution of nonalco­ carrier, by motor vehicle, over irregular (a) from Dogue, Va., to points in Texas; holic beverages (except commodities in routes transporting: Engines, pumps, and (b) from North Bergen, N.J., to bulk), from the destination points named compressors, and turbines, and parts of Washington, D.C.; and (2) fresh pork above to Augusta, Ga., Inman, S.C., and said commodities', and equipment and and pork bellies and frozen pork prod­ the plant and warehouse sites of Custom materials used in the manufacture or as­ ucts, from points in Illinois, Iowa (except Canners, Inc., located at points in Gwin­ sembly of said commodities, in units not Ottumwa and Sioux City), Kansas, Ne­ nett and De Kalb Counties, Ga. Restric­ exceeding 15,000 pounds in weight, from braska, Kentucky, Georgia, Indiana, tion: The Service authorized herein is shipper plantsite and warehouse in North Carolina, Wisconsin (except subject to the following conditions: The Olean, Cattaraugus County, N.Y., to Cudahy), Michigan (except Detroit), operations herein are limited to trans­ points in Allegany, Cattaraugus, Cayuga, Ohio (except Greenfield), Missouri (ex­ portation service to be performed, under Chautauqua, Delaware, Erie, Monroe, cept St. Louis), New Jersey (except Jer­ a continuing contract, or contracts, with Nassau, Niagara, Onondaga, Ontario, sey City), Pennsylvania (except Phila­ Custom Canners, Inc., of Gwinnett Orleans, Oswego, St. Laurence, Steuben, delphia) , and New York (except Buffalo) County, Ga. Further the authority Wayne, Wyoming, and Yates Counties, to Dogue, Va., under contract with White granted herein shall be subject to the N.Y.; New York, N.Y.; Newark, N.J.; and Packing Co., Inc. Note: If a hearing is right of the Commission, which is hereby points in Essex County, N.J., under con­ deemed necessary, applicant requests it expressly reserved, to impose such terms,' tract with Clark Bros. Co., Division of be held at Washington, D.C. conditions or limitations in the future as Dresser Industries, Inc. Note: If a hear­ No. MC 136030 (Sub-No. 3), filed De­ it may find necessary in order to insure ing is deemed necessary, applicant re­ cember 1, 1972. Applicant: CAVALIER that carrier’s operations shall conform quests it be held at Olean, N.Y., Buffalo, TRANSPORTATION CO., INC., Post to the provisions of section 210 of the N.Y., or Washington, D.C. Office Box 7, Riverside, NJ 08075. Appli­ Act. Additionally, the operations author­ No. MC 138020, filed September 5,1972. ized herein are subject to the condition cant’s representative: Bert Collins, 140 that any transportation service per­ Applicant: E. & S. TRUCKING, INC. 43 Cedar Street, New York, NY 10006. Au­ West Calhoon Street, Memphis, TN thority sought to operate as a common formed by the carrier from and to the 38100. Applicant’s representative: David carrier, by motor vehicle, over irregular points set forth above shall only be per­ D. Brunson, 419 Northwest Sixth Street, routes, transporting: (1) Gypsum prod­ formed under authority of and in accord­ ance with the terms, express or implied, Oklahoma City, OK 73102. Authority ucts (except in bulk), and building mate­ sought to operate as a common carrier, of the permit issued hereunder. Note: If rials as described in Appendix VI to the by motor vehicle, over irregular routes, report in Descriptions in Motor Carrier a hearing is deemed necessary, applicant requests it be held at Atlanta, Ga. transporting: General commodities (ex­ Certificates, 61 M.C.C. 209 (except com­ cept those of unusual value, class A and B modities in bulk), from the plantsite of No. MC 136879 (Sufo-No. 1), filed explosives, livestock, household goods as the Kaiser Gypsum Co., Inc., at Delanco, November 24, 1972. Applicant: PAUL R. defined by the Commission, commodities N.J., to points in Illinois, Iowa, Indiana, GARNSEY and PAUL Z. GARNSEY, do­ in bulk, and those requiring special Kentucky, Ohio, Wisconsin, Missouri, ing business as PAUL GARNSEY & SON, equipment of expeditious transporta­ Michigan, Minnesota, and Tennessee and Post Office Box 55, Rural Delivery 1, (2) Materials, supplies, equipment and Schuylerville, NY 12871. Applicant’s rep­ tion), between Memphis, Tenn., on the returned, rejected shipments in the re­ resentative: Julius Braun, Port Adminis­ one hand, and, on the other, points in verse direction. Note: Applicant states tration Building, Albany, NY 12202. Au­ Tennessee, Mississippi, and Arkansas, that the requested authority cannot be thority sought to operate as a contract restricted to shipments having prior and/ tacked with its existing authority. If a carrier, by motor vehicle, over irregular or subsequent movements in interstate hearing is deemed necessary, applicant routes, transporting: (1) Manufactured commerce by railroads, air and barge requests it be held at New York, N.Y. shipping containers, fabricated steel units, shipping rigs, pulp and paper transportation systems. Note: If a hear­ No. MC 136476 (Sub-No. 2), filed May ing is deemed necessary, applicant re­ 18,1972. Applicant. TRANSPORT WEST, manufacturing machinery and parts INC., 2115 Birchwood, Eugene, OR 97401. thereof, and rough and finished castings, quests it be held at Memphis, Tain., Applicant’s representative: Hector E. between Hudson Falls, N.Y., on the one Jackson, Miss., or Oklahoma City, Okla.

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 NOTICES 1329

No. MC 138050 (Sub-No. 2), filed De­ and equipment used in the manufacture deemed necessary, applicant requests it cember 10, 1972. Applicant: STILWELL of tobacco products, from points in Cali­ be held at Washington, D.C. CANNING COMPANY, INC., Post. Office fornia, to points in Florida. Note: If a Box 432, Stilwell, OK 74960. Applicant’s hearing is deemed necessary, applicant A pplication for F reight F orwarder representative: Wilburn Williamson, 280 requests it be held at Tampa or Miami, No. FF-330 (Sub-No. 1) (Amendment) National Foundation Life Building, 3535 Fla. (HOME-PACK TRANSPORT, INC., ex­ Northwest 58th, Oklahoma City, OK No. MC 138249, filed August 31, 1972. tension—domestic service), filed Decem­ 73112. Authority sought to operate as a Applicant: R. C. TRANSFER, INC., 833 ber 1, 1972, published in the F ederal common carrier, by motor vehicle, over R egister issue of December 21, 1972. irregular routes, transporting: Canned Northeast Second Avenue, Fort Lauder­ dale, FL. Applicant’s representative: and republished, in part, as amended this goods, from points in Indiana, Iowa, John P. Bond, 30 Giralda Avenue, Coral issue. Applicant : HOME-PACK TRANS­ Michigan, and Wisconsin to Arkansas Gables, FL 33134. Authority sought to PORT, INC., 57-48 49th Street, Maspeth, City and Wichita, Kans., and Enid, Okla. operate as a common carrier, by motor NY 11378. Applicant’s representatives: Note: If a hearing is deemed necessary, vehicle, over irregular routes, transport­ Alan F. Wohlstetter, 1700 K Street NW., applicant requests it be held at Okla­ ing: New crated furniture, between Washington, DC 20006 and Edward M. homa City, or Tulsa, Okla. points in Dade, Broward, and Palm Alfano, 2 West 45th Street, New York, No. MC 138164 (Sub-No. 1), filed No­ Beach Counties, Fla.; all shipments to NY 10036. Note: The purpose of this vember 27, 1972. Applicant: CAN-AM have a prior or subsequent movement by partial republication is to include Mr. MARINE TRANSIT LTD., Cote St. motor or rail carrier. Note : If a hearing Alfano’s name as applicant’s represen­ Charles Road, Post Office Box 145, Hud­ is deemed necessary, applicant requests tative in addition to Mr. Wohlstetter. son Heights, PQ, Canada. Applicant’s it be held at Miami, Fla., or Fort Lauder­ A pplication for B rokerage L icense representative: J. P. Vermette, 250 Na­ dale, Fla. poleon-Provost Street, Repentigny, PQ, No. MC 130185, filed December 1, 1972. Canada. Authority sought to operate as No. MC 138253, filed December 1, 1972. Applicant: CRAWFORD COUNTY AU­ a common carrier, by motor vehicle, over Applicant: MONFORT TRANSPORTA­ TOMOBILE CLUB, 314 South Sandusky irregular routes, transporting: Sailboats TION COMPANY, a corporation, Post Avenue, Bucyrus, OH 44820. Applicant’s and ancillary equipment, using special­ Office Box G, Greeley, CO 80631. Appli­ representative: Gerald P. Wadkoski, 85 ized equipment (extra low bed trailers cant’s representative: Edward T. Lyons, East Gay Street, Columbus, OH 43215. or trucks with specially designed racks), Jr., 420 Denver Club Building, Denver, For a license (BMC-5) to engage in op­ from ports of entry on the international CO 80202. Authority sought to operate erations as a broker at Bucyrus, Ohio, in boundary line between the United States as a contract carrier, by motor vehicle, arranging for transportation in inter­ and Canada in Minnesota, Michigan, over irregular routes, transporting: (1) state or foreign commerce in the trans­ New York, Vermont, and Maine, to Meats, meat products and meat byprod­ portation o f: Passengers and their points in Maine, Connecticut, Delaware, ucts, and articles distributed by meat baggage, in all expense round trip tours, Illinois, Indiana, Kentucky, Massachu­ packinghouses as described in sections in special and charter operations, begin­ setts, Maryland, Michigan, Minnesota, A and C of Appendix I to the report in ning and ending at points in Crawford, New Hampshire, New Jersey, New York, Descriptions in Motor Carrier Certifi­ Morrow, Marion, and Wyandot Counties, North Carolina, Ohio, Pennsylvania, cates, 61 MCC 209 and 766, and such Ohio, and extending to points in the Rhode Island, Vermont, Virginia, Wis­ other commodities as are usually dealt United States including Alaska and consin, and the District of Columbia, re­ in, or used by restaurants and restaurant Hawaii. stricted to traffic in foreign commerce supply houses, from Denver and Greeley, Colo., to points in the United States A pplication I n W hich H andling W ith ­ originating in the Province of Quebec, out O ral H earing H as B een R equested Canada: Note: If a hearing is deemed (except Alaska and Hawaii) ; and (2) necessary, applicant requests it be held materials, equipment, and supplies, and No. MC 113908 (Sub-No. 248) (Correc­ at Montpelier, Vt., or Albany, N.Y. such other commodities as are used, or tion), filed November 17, 1972, published in the F ederal R egister issue of Decem­ No. MC 138192, filed October 27, 1972. dealt in by persons (as defined in section ber 21,1972, and republished as corrected Applicant: JAMISON MOTOR LINES, 203 (a) of the Interstate Commerce Act) this issue. Applicant: ERICKSON INC., 516 Warren Avenue, Dade City, FL engaged in the production and distribu­ TRANSPORT CORPORATION, .2105 33525. Authority sought to operate as a tion of the commodities named in (1) East Dale Street, Springfield, MO 65804. common carrier, by motor vehicle, over above, from points in the United States Applicant’s representative: B. B. White- irregular routes, transporting: (1) To­ (except Alaska and Hawaii), to Denver head (same address as applicant). Note : bacco products, advertising and promo­ The purpose of this republication is to. and Greeley, Colo., under a continuing show that this .application has been as­ tional material including redemption contract or contracts with Monfort Pack­ signed No. MC 113908 Sub-No. 248 in lieu premiums, and merchandise used in the ing Co.; Monfort Portion Foods, Inc.; of MC 113908 Sub 247 which was in error. sale and distribution of tobacco products, Monfort Food Distributing Co.; Monfort The rest of the notice remains as previ­ from points in Florida, to points in Ari­ International Sales Corp.; Monfort Feed ously published. zona, California, Oregon, Washington, Lots, Inc.; Monfort-Gilcrest, Inc., and By the Commission. Montana, Idaho, Utah, New Mexico, Monfort of Colorado International, Inc. [seal] R obert L. O swald, Colorado, Wyoming,', and Nevada; and Note: Common control and dual opera­ Secretary. (2) cigar boxes and materials, supplies tions may be involved. If a hearing is [FR Doc.73-528 Filed l-10-73;8:45 am]

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1330 FEDERAL REGISTER CUMULATIVE LIST OF PARTS AFFECTED—-JANUARY

The following numerical guide is a list of parts of each title of the Code of Federal Regulations affected by documents published to date during January.

Page Page Page 3 CFR 10 CFR 17 CFR 240...... 1121 P roclamations : o...... 1271 3548 (see Proc. 4177). 2 0 ______1271 P roposed R ules: 3558 (see Proc. 4177). 30 ------1271 240______56, 894,1125 3562 (see Proc.^4177). 31 ______1271 249a______1125 3597 (see Proc. 4177). 32 ------1271 270- ______1284 3709 (see Proc. 4177). 34 ______1271 3790 (see Proc. 4177). 35 ______1272 18 CFR 36 ______1272 3822 (see Proc. 4177). 201______,______— 755 3856 (see Proc. 4177). 40-______1272 50______1272 204 ______755 3870 (see Proc. 4177). 205 —______755 3884 (see Proc. 4177). 55______1272 4026 (see Proc. 4177). 70 ______1272 P roposed R ules: 4138 (see Proc. 4177). 71 ______1272 2______809 4177______73______1272 154______1055 100______1273 201______1055 E xecutive O rders: 115______1273 260______1055,1125 3256 (see PLO 5323)______- 735 140______1273 11694______729 150______1273 19 CFR 5 CFR P roposed R ules: 16______1018 19 ...... 802 213______— 953.1115,1269 20 ______805 21 CFR 49 6 CFR 50______3______853 19______1176 101______962 12 CFR 51______1177 300_...... —______- __ — 1173, 1269 P roposed R ules: 121______11,1177 Rulings______— ------1115,1270 21______...... 31 128______854 216______54 131______853 7 CFR 326______51 135______1274 ______963545 ______—______. 891 135b...... 1273 10- 135c______856, 1273 3 2 - ______964 546 ______1334 ______843 563______1334 135e____ 1274 301. 135g______1274 711. ______967 563a______...... 53 ______967 563b______1334 146c______1178 722. 301______756 730. ______844 571______1334 ______844 308______757, 856, 857, 953 811. 316______757 812. ______845 13 CFR 814. ______846 P roposed R ules: 1174 907 ...... - ____- _____744,1270 301______3______799 910...... 847, 1115 11______— 1019 912 ______847 14 CFR 19______-______1218 913 ______848 39 ______850, 851,1117 121______47 971______1H6 71 ______298, 851, 852, 1118, 1273 130______.______...... 885 1050______849 73______298, 1273 135c______1219 1421______968 75______298 141a______- ___ 1219 1822______— H74 91 ______852,1175 146a______1219 1864______1174 97______852,1176 191______799 P roposed R ules: 242______;______744 273______48 44 885 288______745 5 ll______798 385______1118 22 CFR 722______1053 389______1119 86______- ...... 30 C h.IX------1197 399______754 P roposed R ules: 1032______1202 P roposed R ules: 1050______1202 39 ...... 888, 1124 1062______1202,1281 71______889-891, 1124, 1125 2 4 CFR 1064______- _____ 1202 73______891,1283 1910...... 1001 1065-______1202 91______800 1914 ______859, 1001 1421______1054 241...... 1125 1915 ______1002 1427___ 1053 298______50 1430______799 1701______1055 25 CFR 15 CFR 233______758 9 CFR 1000. 9 76...... - 849,1116 2 6 CFR 16 CFR P roposed R ules: 1______12, 21, 758, 767, 860 13...... 968-971, 1120, 1273 445 ______1104 13______767,860 446 _ 1104 P roposed R ules: 31______i______866 447 ____ 1104 433_...... - 892 53...... 768, 868

THURSDAY, JANUARY 11, 1973 WASHINGTON, D.C.

Volume 38 ■ Number 7

PART II

FEDERAL HOME LO A N BANK BOARD

FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION

Conversions of Insured Institutions From M utual Into Stock Associations 1334 PROPOSED RULE MAKING

[ 12 CFR Parts 563, 563b, 571 1 foregoing, the Board in September 1972 FEDERAL HOME LOAN BANK BOARD directed tile preparation of proposed re­ [No. 73-26] vised conversion regulations and decided [1 2 CFR Part 546 ] FEDERAL SAVINGS AND LOAN that the moratorium is terminated effec­ [No. 73-25] INSURANCE CORPORATION tive upon the final adoption of revised conversion regulations. FEDERAL MUTUAL SAVINGS AND Conversions of Insured Institutions The proposed regulations would revoke LOAN ASSOCIATIONS From Mutual Into Stock Associations said § 563.22-1 and replace it by adding a new Part 563b of the rules and regula­ Mutual to Stock Conversions J anuary 3, 1973. tions for insurance of accounts. A com­ January 3, 1973. The third unnumbered paragraph of panion proposal would revoke § 546.5 of section 5 (i) of the Home Owners’ Loan The third unnumbered paragraph of the rules and regulations for the Federal Act of 1933, as amended (12 U.S.C. 1464 savings and loan system. New Part 563b section 5(i) of the Home Owners’ Loan (i)), among other things, authorizes Fed­ Act of 1933, as amended (12 U.S.C. 1464 would be applicable to both federally eral mutual savings and loan associations chartered and State-chartered FSLIC- (i)), among other things, authorizes Fed­ to convert to the stock form upon an eral mutual savings and loan associations insured associations. Part 563b would equitable basis and subject to the ap­ govern only ordinary conversions in to convert to the stock form upon an proval by regulations or otherwise of the equitable basis and subject to the ap­ which the converted institution is insured Federal Home Loan Bank Board and the by the FSLIC. It would not govern con­ proval by regulations or otherwise of the Federal Savings and Loan Insurance Cor­ Federal Home Loan Bank Board and the versions involving mergers and holding poration (FSLIC). This authority has companies and conversions in which the Federal Savings and Loan Insurance been implemented by § 546.5 of the rules Corporation. This authority has been im­ converted institution is not insured by and regulations for the Federal savings the FSLIC. In addition, certain related plemented by § 546.5 of the Board’s rules and loan system (12 CFR 546.5). The and regulations for the Federal savings amendments dealing with management laws of somewhat less than half the contracts, stock options, and Federal and loan system (12 CFR 546.5). States permit the chartering of both mu­ In a companion proposal made on the charter amendments are not proposed at tual and stock savings and loan associa­ this time. Proposed regulations on related same date as this proposal, the Board tions and the conversion of mutual asso­ proposes to replace its existing regula­ matters are being prepared and it is ciations into stock associations. Under expected that they will be proposed at a tions dealing with mutual to stock con­ Title IV of the National Housing Act, as versions with a new Part 563b of its rules later date during the comment period for amended (12 U.S.C. 1724 et seq.) the this proposal. and regulations for insurance of accounts Board, as operating head of the Federal (12 CFR Part 563b). If that companion Included in these proposals are three Savings and Loan Insurance Corpora­ forms, form PA, form PS, and form FA, proposal were adopted it would not be tion, has authority to regulate any such necessary for the Board to continue to to be used in connection with conver­ conversion involving an association sions and dealing respectively with pre­ provide for conversions of Federal asso­ whose accounts are insured by the Cor­ ciations to the stock form under the rules liminary approval, proxy and informa­ poration. This authority has been imple­ tion statements, and final approval. and regulations for the Federal savings mented by § 563.22-1 of the rules and and loan system. An extended preamble Because of their integral and significant regulations for insurance of accounts (12 relationship to the operation of Part 563b, to that companion proposal describes the CFR 563.22-1), whose requirements are contents of proposed Part 563b and the they are published for comment in the substantially similar to those of said same manner as the proposed regula­ Board’s reasons for making the proposal. § 546.5. For the reasons specified above and in Since December 5, 1963, the Board has tions. that companion proposal, the Board maintained a moratorium on conversions The general contents of proposed Part would amend Part 546 of the Federal reg­ of all FSLIC-insured institutions, both 563b may be summarized as follows: Sec­ ulations by revoking § 546.5 thereof. federally chartered and State-chartered, tion 563b.l deals with the scope of the Interested persons are invited to sub­ from the mutual to the stock form. This proposed regulations and § 563b.2 con­ mit written data, views, and arguments moratorium was imposed primarily be­ tains necessary definitions. Section 563b.3 to the Office of the Secretary, Federal cause of abuses arising from earlier con­ sets forth the general sequence of proc­ Home Loan Bank Board, 101 Indiana versions and because of the absence of essing applications for conversion and Avenue NW., Washington, DC 20552, by sufficient information and knowledge on provides for numerous administrative re­ March 12, 1973, as to whether this pro­ how conversions can occur in a safe and quirements such as number of copies, fair manner and without undue injury to place of filing, format for filings, amend­ posal should be adopted, rejected, or ments, and incorporation by reference. modified. Written material submitted the stability of the financial and man­ agerial structure of the savings and loan Section 563b.3 is modeled on regulation will be available for public inspection at industry. C of the Securities and Exchange Com­ the above address unless confidential During the time that such moratorium mission (SEC) (17 CFR 230.400-494) and treatment is requested or the material has been in effect, the Board has engaged is designed in part to insure that the fil­ would not be made available to the public three detailed studies of this difficult sub­ ings under Part 563b can be used by insured institutions without substantial or otherwise disclosed under § 505.6 of ject (the so-called Scott report, Hester additional expense to meet the formal the general regulations of the Federal report, and Friend report). In order to filing requirements of the SEC. Section Home Loan Bank Board (12 CFR 505.6). gain further information and experience, 563b.4 deals with notice of filing and (Sec. 5, 48 Stat. 132, as amended; 12 U.S.C. the Board in February 1972 approved a confidentiality of filings. Section 563b.4 1464. Reorg. Plan No. 3 of 1947, 12 PR 4981, test conversion involving Citizens Federal also deals with the difficult question 3 CFR, 1943-48 Comp., p. 1071) Savings and Loan Association of San of what statements may be made by the insured institution prior to preliminary By the Federal Home Loan Bank Francisco, Calif. In an additional effort approval of the plan of conversion. The Board. to obtain information and experience in Corporation is concerned that improper \ [ seal] G renville L. M illard, Jr., this area, the Board in July 1972 called statements made prior to such approval Assistant Secretary. for study applications. Five such applica­ may subject the association to serious [FR Doc.73-460 Filed 1-10-73; 8; 45 am] tions were received. On the basis of the liability.

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 PROPOSED RULE MAKING 1335

Section 563b.5 is one of the most sig­ meeting of members to consider the plan (3) Applicant. An “applicant” is an in­ nificant sections of proposed Part 563b. of conversion. Section 563b.9 deals with sured institution which has applied to Primarily, it deals with prohibited and pricing and distribution of securities in­ convert pursuant to this part. optional provisions in plans of conversion cident to conversion. A primary require­ (4) Associate. The term “associate,” and specifies a formula for determining ment of this section is that the prices be when used to indicate a relationship with the eligibility of accountholders to par­ arrived at only after thorough and inde­ any person, means (i) any corporation or ticipate in the conversion distribution pendent appraisal. Section 563b.l0 deals organization (other than the applicant and for calculating the amount of the with certain reports to be filed following or a majority-owned subsidiary of the distribution to which eligible account- conversion. applicant) of which such person is an holders are entitled. In general, eligibility In order to carry out these proposals, officer or partner or is, directly or indi­ would be determined as of a fixed distri­ the Board would amend Subchapter D rectly, the beneficial owner of 10 percent bution record date and such date would of Chapter V of Title 12 of the Code of or more of any class of equity securities, be shifted annually an automatically to Federal Regulations substantially as set (ii) any trust or other estate in which December 31 of each succeeding year. In forth below: such person has a substantial beneficial general, the formula for determining the interest or as to which such person amount of distribution is a system of for­ FART 563— OPERATIONS serves as trustee or in a similar fiduciary ward time-weighting which operates to § 563.22-1 [Revoked] capacity, and (iii) any relative or spouse discount more recent deposits. It is the of such person, or any relative of such present conclusion of the Board that 1. It is proposed to revoke § 563.22-1. spouse, who has the same home as such shifts of funds on a destabilizing scale person or who is a director or officer of may occur among insured institutions the applicant or any of its parents or unless some system of time-weighting or PART 563b— CONVERSIONS subsidiaries. time-averaging is employed uniformly 2. It is proposed to add a new Part (5) Association members. The term throughout the industry. It is also the 563b to read as follows: “association members” refers to persons present conclusion of the Board that Sec. who, pursuant to the charter or bylaws weighting or averaging on the basis of 563b.1 Scope of part. of the applicant, are eligible to vote at past deposits over any extended period 563b.2 General definitions. the applicant’s meeting at which con­ of time is probably not feasible. It ap­ 563b.3 General procedures. version will be voted upon. pears that it would be too expensive for 563b.4 Notice of filing, public statements, (6) Board. The term “Board” refers insured institutions to reconstruct their and confidentiality. to the Federal Home Loan Bank Board. past deposit records far enough back­ 563b.5 General principles for conversions. (7) Capital stock. The term “capital wards in time for weighting for averaging 563b.6 Solicitation of proxies and use of stock” includes permanent stock, guar­ to be sufficiently effective in discouraging proxy and information form. 563b.7 Form and content of financial state­ anty stock, permanent reserve stock, or shifts of funds. ments. any similar certificate evidencing non- Section 563b.6 deals with proxies, 563b.8 Vote by members; application to the withdrawable capital. solicitations of proxies, and the use of corporation for final approval. (8) Charter. The term “charter” in­ proxy and information statements pre­ 563b.9 Distribution of capital stock. cludes articles of incorporation, articles pared in accordance with form PS. This 563b.l0 Post-conversion reports. of association, or any similar instrument, section and form PS are based on regu­ Authority: Secs. 402, 403, 407, 48 Stat. 1256, as amended, effecting (either with or lation 14A, schedule 14A and form 10 1257, 1260, as amended; 12 U.S.C. 1725, 1726, without filing with any governmental of the Securities and Exchange Commis­ 1730; Sec. 5, 48 Stat. 132, as amended; 12 agency) the organization or creation of sion (17 CFR 240.14a-l to 14a-12, U.S.C. 1464. Reorg. Plan No. 3 of 1947, 12 an incorporated or unincorporated 240.14a^l01, and 239.7 respectively). It is FR 4981, 3 CFR, 1943-48 Comp., p. 1071. person. the intent of the Board that this section § 563b. 1 Scope of part. (9) Control. The term “control” (in­ and form PS should operate to give eligi­ cluding the terms “controlling,” “con­ ble accountholders and association mem­ This part shall govern conversions from trolled by,” and “under common control bers all the information they may need a federally-chartered mutual insured in­ with” ) means the possession, direct or to vote intelligently on the plan of con­ stitution to a State-chartered stock in­ indirect, of the power to direct or cause version and to make informed investment sured institution and conversions from a the direction of the management and decisions with respect to the securities State-chartered mutual insured institu­ policies of a person, whether through the distributed incident to conversion. It is tion to a State-chartered stock insured ownership of voting securities, by con­ also the intent of the Board that § 563b.6 institution. Except as provided in this tract, or otherwise. and form PS should operate to produce part, a Federal or a State-chartered (10) Corporation. The term “Corpora­ a document which insured institutions mutual insured Institution may not con­ tion” refers to the Federal Savings and may use without substantial additional vert to a stock institution. Any provision Loan Insurance Corporation. expense to meet the registration require­ in a form prescribed under this part and (11) Dealer. The term “ dealer” means ments of section 12(g) of the Securities covering the same subject matter as any any person who engages either for all Exchange Act of 1934. provision in this part shall be controlling. or part of his time, directly or indirectly, Section 563b.7 deals with form and § 563b.2 General definitions. as agent, broker, or principal, in the content of financial statements to be filed business of offering, buying, selling, or under item 17 of form PS. This section (a) As used in this part and in the forms under this part, the following defi­ otherwise dealing or trading in securi­ is based on regulation S-X of the SEC ties issued by another person. (17 CFR Part 210). It should be clearly nitions apply, unless the context other­ that § 563b.7, unlike other parts wise requires: (12) Director. The term “director” ° prol>osal» is designed to be appli­ ( 1 ) Affiliate. An “affiliate” of, or a per­ means any director of a corporation or cable to conversions involving mergers son “affiliated” with, a specified person, any person performing similar functions and holding companies, as well as ordi­ is a person that directly, or indirectly with respect to any organization whether nary conversions . Therefore, some parts through one or more intermediaries, con­ trols, or is controlled by, or is under com­ incorporated or unincorporated. °i § 563b.7 will not be relevant to ordi­ (13) Eligible account holders. The nary conversions. It should also be noted mon control with, the person specified. mat some parts of item 17 will not be (2) Amount. The term “amount,”term “eligible account holders” refers to relevant to most insured institutions when used in regard to securities, means those persons who are eligible to receive under Present circumstances their the principal amount if relating to evi­ a pro rata distribution of the ownership suDsidiaries considered as a whole do not dences of indebtedness, the number of interest in the applicant upon its con­ nstitute a significant subsidiary, shares if relating to shares, and the num­ version pursuant to this part. fJ?CC«on *>63b.8 concerns requirements ber of units if relating to any other kind (14) Employee. The term “employee” or v°ting by members and notice of the of security. does not include a director or officer.

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1336 PROPOSED RULE MAKING

(15) Equity security. The term “equity account, certificate of deposit, or in gen­ may be obtained from any Federal home security” means any stock or similar se­ eral, any instrument commonly known loan bank or the Office of the Secretary curity; or any security convertible, with as a “security” ; or any certificate of in­ of the Board. or without consideration, into such a se­ terest or participation in, temporary or (b) Return of improperly executed or curity, or carrying any warrant or right interim certificate for, receipt for, or materially incomplete filings. Any appli­ to subscribe to or purchase such security; warrant or right to subscribe to or pur­ cation for preliminary approval that is or any such warrant or right. chase, any of the foregoing. improperly executed, or that does not (16) Insured institution. The term “in­ (26) Solicitation; solicit. The terms contain copies of a (1) plan of conver­ sured institution” has the same meaning “solicitation” and “solicit” refer to (i) sion, (2) preliminary proxy and infor­ as in § 561.1 of this subchapter. any request for a proxy whether or not mation statement with signed financial (17) Material. The term “material,” accompanied by or included in a form of statements and (3) form of proxy, shall when used to qualify a requirement for proxy; (ii) any request to execute, not not be accepted for filing and shall be the furnishing of information as to any execute, or revoke a proxy; or (iii) the returned to the applicant. Any applica­ subject, limits the information required furnishing of a form of proxy or other tion for preliminary approval containing to those matters as to which an average communication to association members a materially incomplete plan of conver­ prudent investor ought reasonably to be under circumstances reasonably calcu­ sion, proxy and information statement or informed before purchasing an equity lated to result in the procurement, with­ form of proxy may be returned by the security of the applicant, or matters^ as holding, or revocation of a proxy. The Corporation to the applicant. to which an average prudent association terms do not apply, however, to the fur­ (c) Number of copies; place of filing; \ member ought reasonably to be informed nishing of a form of proxy to an associa­ binding; signatures. (1) Whenever a re­ in voting upon the plan of conversion of tion member upon the unsolicited request quirement is made under this part for j the applicant, or matters as to which an of such association member, the per­ the filing of four copies of any document average prudent eligible account holder formance of acts required by § 563b.6(f), with the Corporation, one copy shall be ought reasonably to be informed in de­ or to the performance by any person of filed with the Supervisory Agent and termining whether to purchase, sell, or ministerial acts on behalf of a person three copies with the Office of the Secre- j retain the securities being issued inci­ soliciting a proxy. tary of the Board. Whenever a require­ dent to the plan of conversion of the (27) Subsidiary. A “ subsidiary” of a ment is made under this part for the applicant. specified person is an affiliate controlled filing of 10 or more copies of any docu­ (18) Member. The term “member” by such person, directly or indirectly ment with the Corporation, three copies " means any person qualifying as a mem­ through one or more intermediaries. (See shall be filed with the Supervisory Agent ber of an insured institution pursuant also “majority-owned subsidiary,” “sig­ and the remaining copies, with such Office I to its charter or. bylaws. nificant subsidiary” and “totally-held of the Secretary of the Board. Whenever (19) Offer. The term “ offer,” “offer subsidiary” in § 563b.7.) a requirement is made under this part to sell,” or “offer of sale” shall include (28) Supervisory agent. The term that a document to be filed be manually I every attempt or offer to dispose of, or “Supervisory Agent” means (i) the presi­ signed, one manually signed copy shall j solicitation of an offer to buy, a security dent of the bank of the Federal home be filed with the Supervisory Agent and I or interest in a security, for value. These loan bank district in which the applicant another with such Office of the Secre- j terms shall not include preliminary ne­ has its principal office, or (ii) any other tary. Each of the copies filed under this j gotiations or agreements between an ap­ person who is specifically designated as part shall be bound, in one or more parts, | plicant and any underwriter or among a supervisory agent by the Corporation without stiff covers. The binding shall be I underwriters who are or are to be in priv­ to act in its behalf in the administration made on the side or stitching margin in ity of contract with an applicant. of this part. such manner as to leave the reading I (20) Officer. The term “officer” means (29) Underwriter. The term “under­ matter legible. the chairman of the board, president, (2) At least two copies of every appli- ] writer” means any person who has pur­ cation and every amendment thereto I vice-president, secretary, treasurer or chased from an applicant with a view principal financial officer, comptroller or filed shall be manually signed by (i) a I to, or offers or sells for an applicant in duly authorized representative of the I principal accounting officer, and any connection with, the distribution of any other person performing similar func­ applicant on its behalf, (ii) its principal | security, or participates or has a direct executive officer, (iii) its principal finan- j tions with respect to any organization or indirect participation in the direct or whether incorporated or unincorporated. cial officer, (iv) its principal accounting 1 indirect underwriting of any such under­ officer, and (v) at least two-thirds of its I (21) Person. The term “person” means taking; but such term shall not include a an individual, a corporation, a partner­ board of directors or persons performing I person whose interest is limited to a com­ similar functions. ship, an association, a joint-stock com­ mission from an underwriter or dealer pany, a trust, any unincorporated orga­ (3) If any name is signed to an appli- 1 not in excess of the usual and customary cation or any amendment thereto pur- I nization, or a government or political distributors’ or sellers’ commission. subdivision thereof. suant to a power of attorney, four copies I (22) Proxy. The term “proxy” includes § 563b.3 General procedures. of such power of attorney, including two I manually signed, shall be filed with the I every form of authorization by which a (a) (1) Preliminary approval. An ap­ person is, or may be deemed to be, desig­ application. plicant that desires to convert in accord­ (4) (i) Except as provided in para- I nated to act for an association member ance with this part shall file an applica­ in the exercise of his voting rights in the graph (c) (4) (ii) of this section, the fil- I tion for preliminary approval in 10 copies ing of any application or amendment I affairs of an insured institution. Such an on forms prescribed by the Corporation. authorization may take the form of fail­ thereto under this part shall constitute a I Copies of such forms may be obtained representation of the applicant by its I ure to dissent or object. from any Federal home loan bank or the (23) Purchase. The terms “purchase” duly authorized representative, the ap- I Office of the Secretary of the Board. plicant’s principal executive officer, the I and “buy” include every contract to pur­ (2) Approval of members. The plan of chase, buy, or otherwise acquire a secu­ applicant’s principal financial officer, | rity or interest in a security for value. conversion shall' not be submitted to a and the applicant’s principal account­ (24) Sale. The terms “sale” and “sell” vote of the members in accordance with ing officer, and each member of the ap­ include every contract to sell or other­ § 563b.8, until the Corporation has given plicant’s board of directors (whether or preliminary approval of the plan of con­ wise dispose of a security or interest in a not such director has signed the appli­ version. cation or any amendment thereto) sev­ security for value. (3) Final approval. Upon approval by erally that (A) he has read such applica­ (25) Security. The term “security” in­ association members of a plan of convert tion or amendment, (B) in the opinion of cludes any note, stock, treasury stock, sion, an applicant may file an applica­ each such person, he has made such ex­ bond, debenture, transferable share, in­ tion for final approval in accordance with amination and investigation as is nec­ vestment contract, voting-trust certifi­ § 563b.8 in 10 copies on forms prescribed essary to enable him to express an in­ cate, passbook savings account, savings by the Corporation. Copies of such forms formed opinion that such application or

FEDERAL REGISTER, VOL. 38, NO. 7—-THURSDAY, JANUARY 11, 1973 PROPOSED RULE MAKING 1337 amendment complies to the best of his ties are those ordinarily performed by and information statements, including knowledge and belief with the applica­ holders of such positions or offices. all notes to financial statements and ble requirements of this part and forms (g) Additional information. In addi­ other tabular data included therein, shall prescribed thereunder, and (C) each tion to the information expressly re­ be in roman type at least as large and as such person holds such informed opinion. quired to be included in any application legible as 10-point modem type. How­ (ii) The representations specified in under this part, there shall be added ever, to the extent necessary for con­ paragraph (c) (4) (i) of this section shall such further material information, if venient presentation, financial state­ not be deemed to have been made by any any, as may be necessary to make the re­ ments and other tabular data, including director of the applicant who did not quired statements, in the light of the tabular data in notes, may be in roman sign the application or any amendment circumstances under which they are type at least as large and as legible as thereto, if, and only to the extent that, made, not misleading. 8-point modem type. All such type shall such director files with the Corporation (h) Information unknown or not rea­ be leaded at least 2 points. within 10 business days after the filing sonably available. Information required (1) Presentation of information. (1) of such application or amendment a need be given only insofar as it is known The information required in a proxy and statement describing those portions of or reasonably available to the applicant. information statement need not follow such filing as to which he does not so If any required information is unknown the order of the items or other require­ represent. and not reasonably available to the ap­ ments in the appropriate form. Such (d) Requirements as to paper and plicant, either because the obtaining information shall not, however, be set printing. (1) Applications shall be filed thereof would involve unreasonable ef­ forth in such fashion as to obscure any on good quality, unglazed, white paper, fort or expense, or because it rests pe­ of the required information or any in­ approximately 8Y2 by 13 or 8 Yz by 11 culiarly within the knowledge of another formation necessary to keep the required inches in size, insofar as practicable. person not affiliated with the applicant, information from being incomplete or However, 'tables, charts, maps, and fi­ the information may be omitted, subject misleading. Where an item requires in­ nancial statements may be on larger to the following conditions: formation to be given in tabular form it paper if folded to such sizes, and the plan (1) The applicant shall give such in­ shall be given in substantially the tabular of conversion and proxy and information formation on the subject as it possesses form specified in the item. statement may be on smaller paper if the or can acquire without unreasonable ef­ (2) All information contained in a plan applicant so desires. fort or expense, together with the sources of conversion and proxy and informa­ (2) Applications and, insofar as prac­thereof. tion statements shall be set forth under ticable, all papers and documents filed as (2) The applicant shall include a state­ appropriate captions or headings reason­ a part thereof, shall be printed, litho­ ment either showing that unreasonable ably indicative of the principal subject graphed, mimeographed, or typewritten. effort or expense would be involved or matter set forth thereunder. Except as However, applications or any portion indicating the absence of any affiliation to financial statements and other tabular thereof may be prepared by any similar with the person within whose knowledge data, all information set forth in any process which, in the opinion of the Cor­ the information rests and stating the form under this part shall be divided poration, produces copies suitable for result of a request made to such person into reasonably short paragraphs or a permanent record. Irrespective of the for the information. sections. process used, all copies of any such ma­ (i) Incorporation of certain informa­ (3) . Every proxy and information state­ terial shall be clear, easily readable tion by reference. (1) Where an item in ment shall include in the forepart thereof and suitable for repeated photocopying. an application calls for information not a reasonably detailed table of contents Debits in credit categories and credits required to be included in the proxy and showing the subject matter of its various in debit categories shall be designated so information statement, matter contained sections or subdivisions and the page as to be clearly distinguishable as such in any part of the application, including number on which each such section or on photocopies. exhibits, may be incorporated by ref­ subdivision begins. (e) Method of preparation. Every ap­ erence in answer, or partial answer, to (4) All information required to be in­ plication shall furnish information in such item. No information may be in­ cluded in a proxy and information state­ item-and-answer form in response to the corporated by reference in a proxy and ment shall be clearly understandable items of the appropriate form, and shall information statement, unless the docu­ without the necessity of referring to the include the captions of the form, but ment containing such information is at­ particular form or to the regulations omit the text of all items and instruc­ tached thereto or is summarized or out­ under this part. Except as to financial tions. Every proxy and information lined as provided in paragraph ( j ) of this statements and information required in statement shall present information as section. tabular form, the information set forth provided in paragraph (k) of this sec­ (2) Material incorporated by referencein a proxy and information statement tion in response to the items of the ap­ shall be clearly identified in the refer­ may be expressed in condensed or sum­ propriate form in lieu of furnishing the ence. An express statement that the marized form. Financial statements are information in item-and-answer form, specified matter is incorporated by refer­ to be set forth in comparative form, and and shall omit the captions and text of ence shall be made at the particular place shall include the notes thereto and the all items and instructions. Every pre­ in the application where the information accountants’ certificate or certificates. liminary application shall include a is required. Matter shall not be incor­

FEDERAL REGISTER, VOL. 38, NO. 7—-THURSDAY, JANUARY II, 1973 1338 PROPOSED RULE MAKING such order and the applicable regula­ or employee thereof, shall advertise, di­ Loan Bank Board or the approval of the tions and forms in effect at the time such rectly or indirectly, the benefits of con­ appropriate State authority or authori- j prohibition ceases to be effective. version generally or of any plan of con­ ties will be obtained, and also no assur­ (n) Consents of experts. (1) If any ac­ version, whether its own, or another ance that the favorable tax rulings or countant, attorney, investment banker, institution’s. tax opinion will be received; appraiser, or other persons whose profes­ (b) Information prior to preliminary (vili) State the proposed record date sions give authority to a statement made approval of plan of conversion. (1) An for determining the eligible account in any application under this part is insured institution which is considering holders entitled to receive the distribu- ] named as having prepared, reviewed, converting pursuant to this part and its tion; passed upon, or certified any part directors, officers, and employees shall (ix) Describe briefly the proposed dis­ thereof, or any report or valuation for maintain such consideration in confi­ tribution terms under the proposed plan use in connection therewith, the written dence to the extent consistent with the of conversion; . consent of such person shall be filed with need to prepare information for filing an (x) State that the proposed distribu­ the application. If any portion of a re­ application for preliminary approval. If tion will be in satisfaction of the eligible ] port of an expert is quoted or sum­ a public statement should become essen­ account holders’ ownership interest in ] marized as such in any filing under this tial as a result of rumors prior to the the institution in its mutual form and part, the written consent of the ex­ adoption of a plan of conversion by briefly describe the nature of such owner- j pert shall expressly state that the the applicant’s board of directors, such ship interest; expert consents to such quotation or statement shall only be made with the (xi) State the title, par value (if any) summarization. prior approval of the General Counsel of and approximate amount of securities to j (2) All written consents filed pursuant the Corporation. be distributed under the proposed plan I to this paragraph (n) shall be dated and (2) Promptly after the adoption of a of conversion; signed manually. A list of such consents plan of conversion by its board of direc­ (xii) Describe briefly the extent to I shall be filed with the application. Where tors, the insured institution shall (i) which directors, officers and employees ] the consent of the expert is contained in notify its members of such action by will participate in the distribution of se- j issuing a press release and/or mailing a curities incident to the conversion; his report, a reference shall be made in (xiii) State that savings account hold- I the list to the report containing such letter to each of its. members and (ii) have copies of the adopted plan of con­ ers will find their deposits in the con- | consent. verted institution identical as to dollar I (o) Consents of persons about to be­ version available for inspection by its members at its home office and each amount, rate of return and general terms, I come Directors. If any person who has and that their accounts will continue to 1 not signed an application is named in branch office. Copies of the proposed press release and letter are not required be insured identically by the Federal Sav- 1 the proxy and information statement as ings and Loan Insurance Corporation; about to become a director, the written to be filed with the Corporation, but may be submitted for comment to the Office of (xiv) State that the institution will I consent of such person shall be filed with also continue to be a member of the Fed- I the appropriate form. General Counsel. Copies of the definitive press release and letter shall be filed with era! Home Loan Bank System; (p) Date of filing. The date on which (xv) State that borrowers’ loans will 1 any documents are actually received by the Corporation as part of the applica­ tion for preliminary approval. be unaffected by conversion, and that the J the Office of the Secretary of the Board amount, rate, maturity, security and I shall be the date of filing thereof. (3) The press release and letter, unless otherwise authorized by the Corporation, other conditions will remain contrac- 1 (q) Amendments. All amendments to tually fixed as they existed prior to I any application under this part shall be shall only: (i) State that the board of directors conversion; filed under cover of an appropriate facing (xvi) State that the normal business j sheet, shall be numbered consecutively in has adopted a proposed plan to convert the institution from a Federal (or State, of the institution in accepting savings J the order in which filed, and shall con­ and making loans will continue without I form to all pertinent regulations applica­ as the case may be) mutual association to a State-chartered stock association; interruption; that the converted institu- I ble to the type of application which they tion will continue after conversion to I amend. (ii) State that the proposed plan of conversion must be approved by at least conduct its present services to savings I (r) Pre-filing conferences uAth appli­ account holders and borowers under cur- 1 cants. (1) The staff of the Board and the two-thirds of the votes eligible to be cast by association members at a meeting at rent policies to be carried on in existing 1 Supervisory Agent will be available for offices and by the present management I conferences with prospective applicants which the plan will be submitted for their approval; and staff; and that an election of direc- 1 or their representatives in advance of tors for the converted institution will 1 filing an application to convert. These (iii) State that existing proxies held by the institution will not be voted with occur at its first annual meeting after I conferences may be held for the purpose the adoption of the proposed plan of I of discussing generally the problems con­ respect to the conversion, and that new proxies will be solicited for voting on the conversion (unless State law requires the 1 fronting an applicant in effecting con­ election of directors at the meeting at I version or to resolve specific problems of proposed plan of conversion; (iv) State that a proxy and informa­ which conversion is voted, in which case I an unusual nature. so state); I (2) Pre-filing review of an application tion statement setting forth more de- tailed information with respect to the (xvii) State that the proposed plan of I may be refused by the staff of the Board conversion, including the proposed dis- I and the Supervisory Agent if such review proposed plan of conversion will be sent to association members prior to the tribution terms, may be substantively I would delay the examination and proc­ amended by the board of directors as a I essing of material which has already meeting of members; (v) State that the proposed plan of result of comments from the regulatory I been filed or would favor certain appli­ authorities or otherwise prior to the meet- I cants at the expense of others. In any conversion must be approved by the Fed­ eral Home Loan Bank Board and by the ing, and that the proposed plan may also I conference under this paragraph (r), the be terminated by the board of directors | staff of the Board and the Supervisory appropriate State regulatory authority or authorities (naming such an authority or prior to such meeting; and Agent will not undertake to prepare ma­ authorities) before such plan can become (xviii) State that questions of mem- 1 terial for filing but will limit itself to effective; bers will be answered in the proxy ma- I indicating the kind of information re­ (vi) State that the proposed plan of terial to be sent after the regulatory ap- I quired, leaving the actual drafting to the conversion is also contingent upon ob­ provals of the proposed plan of conver- I applicant and its representatives. sion have been obtained and that any I taining favorable tax rulings from the questions at tills time may be answered I § 563b.4 Notice of filing, public state* Internal Revenue Service or an appro­ by telephoning or writing to the institu- I ments, and confidentiality. priate tax opinion; tion. I (a) Advertising of conversions. No in­ (vii) State that there is no assurance (4) Such press release and letter shall I sured institution, or any director, officer that the approval of the Federal Home not in any manner solicit proxies, include I

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 PROPOSED RULE MAKING 1339

financial statements, or describe the Part 505 of this chapter. The Corpora­ (10) Would result in the issuance of benefits of conversion or the value of the tion will withhold the public availability fractional shares; capital stock of the institution upon con­ of preliminary copies of proxy soliciting (11) Provides for the distribution of version. In replying to inquiries, the in­ materials without the necessity of their capital stock, rather than cash, to eli­ sured institution should limit its answers being bound and labeled as “confi­ gible accountholders entitled to less to the matters listed in subparagraph (3) dential.” The applicant will be advised of than 25 shares, unless such account- of this paragraph (b ). any decision by the Corporation to make holders elect under the plan of conver­ (c) Notice of filing. (1) Promptly afterpublic information designated as “confi­ sion to purchase a sufficient number of filing an application for preliminary ap­ dential” by the applicant. Even though shares to round up to at least 25 shares; proval, the applicant shall publish a sections of the application are con­ (12) Would require eligible account- notice of such filing in a newspaper sidered “confidential” as far as public holders to purchase shares of capital printed in the English language and inspection thereof is concerned, to the ex­ stock to round up to more than 100 having general circulation in each com­ tent it deems necessary the Corporation shares in order to receive shares in the munity in which an office of the appli­ may comment on such confidential sub­ distribution, or to pay more than $1,000 cant is located, as follows: missions in any public statement in con­ to purchase shares in order to round up Notice of Piling of A pplication for Pre­ nection with its decision on the ap­ to the minimum number of shares to be liminary Approval T o Convert to a Stock plication without prior notice to the distributed; Savings and Loan A ssociation applicant. (13) Provides for the distribution to Notice is hereby given that, pursuant to § 563b. 5 General principles for conver­ eligible accountholders of a number of Part 563b of the, rules and regulations for sions. shares of capital stock, the expected ini­ Insurance of Accounts______tial price of which would be less than $5 (fill in name of applicant) (а) Prohibited provisions in plans. No per share or more than $40 per share has filed an application with the Federal plan shall be approved which: (based on a reasonable price earnings Savings and Loan Insurance Corporation for (1) Would result in any reduction of multiplier applied to prior earnings of preliminary approval to convert to the stoek the Federal insurance reserve or would the applicant); form of organization. Copies of the applica­ cause the applicant to fail to meet any tion have been delivered to the Office of the (14) Does not provide for the initial Secretary of said Corporation, 101 Indiana net worth requirement of § 563.13 of price of the capital stock to be based on Avenue NW., Washington, DC 20552 and to this subchapter; an independent valuation of such stock the Office of the Supervisory Agent of said (2) Would result in a taxable reor­ at the expense of the applicant; Corporation at the Federal Home Loan Bank ganization of the applicant under the (15) Does not contain, if the applicant of :______:______, ______;____ _ Internal Revenue Code of 1954, as proposes to distribute subscription (street address) (city) amended, or in the distribution of any rights or warrants to eligible account- securities under the plan of conversion holders, adequate provision to insure (State) ’ (Zip Code) " being a taxable event to eligible account- Written comments from any member of that such holders who do not exercise or the applicant will be considered by the Cor­ holders; transfer such rights or warrants will re­ poration if filed within 10 business days after (3) Does not provide for the contin­ ceive fair value for their pro rata inter­ the date of this publication. Three copies of uance of the present board of directors est in the applicant, and that such value such comments should be sent to the afore­ of the converting institution until the is supported by an independent valua­ mentioned Office of the Secretary with one first annual meeting of the converted tion at the expense of the applicant; copy to said Office of the Supervisory Agent. institution under its new charter and (16) Provides that under the charter The proposed plan of conversion is available bylaws, unless Sate law requires an elec­ for inspection by any savings account holder of the converted association its savings at said Office of the Secretary and at said tion of directors at the meeting of the accountholders and borrowing members Office of the Supervisory Agent. A copy of the members to consider the plan of con­ will have any vote unless State law re­ plan may also be inspected at the home of­ version; quires or in such case more than the fice and any branch office of the applicant. (4) Would result in the converted in­ minimum number of votes required; stitution not being insured by the Cor­ (17) Does not provide that under the If a significant number of the applicant’s poration; members speak a language other than charter of the converted association the (5) Does not provide that each ac- applicant will solicit the proxies of the English and a newspaper in that language countholder of the converting institu­ lis published in the area served by the ap­ savings accountholders and borrowing tion shall receive, without any payment, members who have voting rights, if any, plicant, an appropriate translation of a withdrawable account or accounts in such notice shall also be published in in the same manner as the applicant I such newspaper. the converted institution equal in with­ solicits the proxies of its capital stock­ drawable amount to such accounthold- holders; or I (2) Promptly after publication of the er’s withdrawable account or accounts in ■notice or notices prescribed in subpara­ (18) Contains any other provision the converting institution; that the Corporation finds to be detri­ graph (1) of this paragraph (c), the ap- (б) Does not provide that each eligible file four copies thereof mental to the applicant, its account- accountholder’s entitlement under the holders and management, other insured Iwith the Corporation accompanied by an plan respecting his ownership interest affidavit of publication from each pub­ institutions, or the public generally. lisher. in the association shall be pro rata to (b) Optional provisions. Unless State his interest in the association calculated law otherwise requires, a plan of conver­ L ^ ) Confidential information. Should in accordance with paragraphs (c), (d), tne applicant desire to submit any in- sion may provide, among other things, and (e) of this section; for: lormation it deems to be of a confi- (7) Would constitute a preferential aential nature regarding the answer to (1) Issuance to eligible accountholders distribution to management on the basis without payment on a pro rata basis cal­ f r 1? or a part any exhibit in- of past services; maed in any application under this culated in accordance with paragraphs (8) Would result in a charge to eligible (c), (d), and (e) of this section of sub­ such information pertaining to such accountholders other than normal un­ shall be separately bound scription warrants or rights to purchase derwriting discount, commissions, or the capital stock representing the owner­ ■r labeled “confidential.” Only general fees, a warrant subscription price, or the i^CTence thereto need be made in that ship of such holders; cost of purchasing the necessary num­ (2) Issuance without payment of sub­ R E ”??* the application which the ap- ber of shares to round up to a minimum uiino«' deems n°t to be confidential. Ap- scription warrants or rights to borrowing number of shares; members, eligible accountholders, asso­ avaniui18 ? nder this part shall be made (9) Does not provide a mechanism E 5 - ble for inspection by the public, ciation members, and directors, officers lahpwi u Peytons which are bound and whereby each eligible accountholder and employees of the applicant to pur­ Cornalti confidential” and which the may realize in cash the market value of chase additional capital stock to be sold determines to withhold from the securities to be distributed if he so incident to the plan of conversion: Pro­ public availability under 5 U.S.C. 552 and desires; vided, That the exercise price of such

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1340 PROPOSED RULE MAKING

warrants or rights shall not be less than average of all qualifying deposits during (7) For plans adopted during 1976, the the price of the capital stock represent­ such period; distribution of securities will be made to ing the ownership interest in the appli­ (iv) The term “predecessor account” persons having accounts on December 31, cant, and the exercise period shall not means (A) a given account which is not 1975. Fifty-five percent of the securities exceed 90 days from the date of final ap­ open on the distribution record date and wil be distributed on the basis of their proval of the plan of conversion; from which funds were transferred to qualifying deposits on December 31, 1972; (3) Sale of additional capital stock in­ an account open on the distribution rec­ 20 percent on the basis of the quarterly cident to the plan of conversion: Pro­ ord date at the time of or prior to the average of their qualifying deposits dur­ vided, That the purchase price upon the closing of such given account, and (B) a ing 1973; 15 percent on the basis of the sale of such additional capital stock shall given account which is not open on the quarterly average of their qualifying de­ not be less than the price of the capital record date and from which funds were posits during 1974; and 10 percent on the stock representing the ownership inter­ transferred to a predecessor account un­ basis of the quarterly average of their est of eligible accountholders; der paragraph (d) (1) (iv) (A) of this sec­ qualifying deposits during 1975. (4) Internal matching of purchase and tion at the time of or prior to the closing (8) For plans adopted during 1977, sell orders from eligible accountholders of such given account; the distribution of securities will be made with respect to the securities represent­ (v) The term “ qualifying deposits” to persons having accounts on Decem­ ing their ownership interest and any means deposits in accounts open on the ber 31, 1976. Thirty percent of the secu­ additional capital stock; distribution record date plus deposits in rities will be distributed on the basis of (5) The mandatory payment of cash predecessor accounts; and their qualifying deposits on December 31, to eligible accountholders who do not (vi) Whenever a fixed date is used, the 1972; 25 percent on the basis of the quar­ return order forms or similar instru­ phrase “or earlier” should be under­ terly average of their qualifying depos­ ments within the time limits specified in stood, in accordance with paragraph its during 1973; 20 percent on the basis the plan of conversion, and who are en­ (d) (2) of the section. of the quarterly average of their quali- titled to 25 or more shares and less than (2) The amount of securities to whichfiying deposits during 1974; 15 percent 100 shares in the distribution; and each eligible accountholder is entitled on the basis of the quarterly average of (6) Authorization of management em­ shall be calculated in accordance with their qualifying deposits during 1975; ployment contracts and adoption of a this paragraph (d ), whose operation may and 10 percent on the basis of the quar­ stock option or stock purchase plan at be summarized in the following table: terly average of their qualifying depos­ the meeting at which the plan of con­ fin percent] its during 1976. version is voted upon and to take effect (9) For plans of conversion adopted after conversion. Plans -of July Dec. Average during any given year following 1977, (c) Distribution record date. The dis­ conversion 13, 31, ------the distribution of securities will be tribution record date for eligible account- adopted during 1972 1972 1973 1974 1975 1976 1977 made, in accordance with paragraph (c) holders means, for plans adopted in any year of this section, to persons having ac­ given year, (1) December 31 of the pre­ counts on the December 31 of the year 1972...... 100 ...... vious calendar year, or (2) such earlier 1973...... '...... 90 10 ...... ' preceding such given year. Thirty per­ date as the applicant may select with the 1974 ...... 75 15 1 0 ...... cent of the securities will be distributed 1975 ...... 0 75 15 10 ...... approval of the Corporation or State law 1376...... 0 55 20 15 10 ...... on the basis of the quarterly average of may require. No person shall be an eligi­ 1977 0 30 25 20 15 10 ___ their qualifying deposits during the fifth ble accountholder unless such person had 1978 ...... 0 0 30 25 20 15 10 calendar year preceding such given year; an account in the applicant on the distri­ 25 percent on the basis of the quarterly bution record date. An applicant’s plan (3) For plans adopted during 1972,100 average of their qualifying deposits dur­ of conversion may employ more than one percent of the securities will be distrib­ ing the fourth calendar year preceding distribution record date, a distribution uted to eligible accountholders on the such given year; 20 percent on the basis record period, or distribution record peri­ basis of their qualifying deposits on of the quarterly average of their qualify­ ods, but only with the approval of the July 13,1972. ing deposits during the third calendar Corporation and only if none of such (4) For plans adopted during 1973, year preceding such given year; 15 per­ dates and no part of such period or the distribution of securities will be made cent on the basis of the quarterly aver­ periods is later than the date specified to persons having accounts on December age of their qualifying deposits during in paragraph (c) (1) of this section. 31, 1972. Ninety percent of the securities the second calendar year preceding such (d) Distribution of securities. (1) For will be distributed on the basis of their given year; and 10 percent on the basis the purposes of this paragraph— qualifying deposits on July 13,1972; and of the quarterly average of their qualify­ (i) The term “ adopted” means adopted 10 percent on the basis of their qualifying ing deposits during the year preceding by the applicant’s board of directors; deposits on December 31,1972. such given year. (ii) The term “average” refers to the (5) For plans adopted during 1974, the (e) Permissible variations and special result reached by dividing a sum by the distribution of securities will be made rules. With respect to the system pre-1 number of its addends; to persons having accounts on December scribed by paragraph (d) of this sec-1 (iii) The phrase “on the basis of quali­ 31, 1973. Seventy-five percent of the se­ tion— fying deposits” means, with respect to an curities will be distributed on the basis (1) An applicant which had adopted I eligible accountholder having an account of their qualifying deposits on July 13, a plan during 1972 may refile during I on a fixed date, the amount of securities 1972; 15 percent on the basis of their 1973 and employ the 1973 percentages if I obtained by multiplying the appropriate qualifying deposits on December 31,1972; the applicant can show that no unusual I percentage of the total securities to be and 10 percent on the basis of the quar­ inflows of funds occurred during the pe-1 distributed by the ratio of the amount of terly average of their qualifying deposits riod between July 13, 1972 and Decern-1 his qualifying deposits on such date to during 1973. ber 31, 1972; the total amount of qualifying deposits (6) For plans adopted during 1975, the (2) An applicant may employ per" I on such date. The phrase “on the basis distribution of securities will be made to centages different than those specified in I of the quarterly average of qualifying de­ persons having accounts on December 31, paragraph (d) of this section if such I posits” means, with respect to an eligible 1974. Seventy-five percent of the securi­ different percentages do not operate to I accountholder having an account open ties will be distributed on the basis of give greater weight to any more recent I dining all or part of a period, the amount of securities obtained by multiplying the their qualifying deposits on December 31, deposits. An applicant may, for example, I appropriate percentage of the total se­ 1972; 15 percent on the basis of the quar­ employ 85 percent, 10 percent, and 5 per' I curities to be distributed by the ratio of terly average of their qualifying deposits cent for plans adopted during 1974, but I the amount of the quarterly average of during 1973; and 10 percent on the basis may not employ 70 percent, 20 percent, I his qualifying deposits during such-pe­ of the quarterly average of their qualify­ 10 percent for plans adopted during I riod to the total amount of the quarterly ing deposits during 1974. 1974;

FEDERAL REGISTER, V O L 38, NO. 7— THURSDAY, JANUARY 11, 1973 PROPOSED RULE MAKING 1341

(3) An applicant may compute aver­ applicant has furnished to the Corpora­ (c) Information to be furnished asso­ ages on a basis more frequent than tion an agreement, in form satisfactory ciation members. No solicitation subject quarterly; to the Corporation, from each of the ap­ to this section shall be made unless each (4) If the qualifying deposits or quar­ plicant’s present directors and officers person solicited is concurrently fur­ terly average of the qualifying deposits and each person who incident to the con­ nished, or has previously been furnished, of any officer, director, or associate version will become directly or indirectly a written proxy and information state­ thereof on a 10 percent date or during the beneficial owner of more than 10 per­ ment the use of which has been author­ a 10 percent period are greater than his cent of its capital stock, that (1) each ized by the Corporation. qualifying deposits or the quarterly av­ such person will file statements with the (d) Requirements as to proxy. (1) The erage of his qualifying deposits during Corporation in the same manner as such form of proxy (i) shall indicate in bold the preceding 90 percent date, 15 per­ person would be required to file with the face type whether the proxy is solicited cent date, or 15 percent period, as the Securities and Exchange Commission if on behalf of the management, (ii) shall case may be, the excess is to be disre­ section 16(a) of the Securities Exchange provide specifically designated blank garded in determining the amount of se­ Act of 1934, as amended, and the rules spaces for dating and signing the proxy, curities that is to be distributed to him and regulations under such section, ap­ (iii) shall identify clearly and impar­ for such 10 percent date or period. plied to the applicant immediately upon tially each matter or group of related (5) If the quarterly average of the conversion and (2) any profit realized by matters intended to be acted upon, (iv) qualifying deposits of any eligible ac- such person from any purchase and sale, shall be clearly labeled “Revocable countholder (other than an officer, direc­ or any sale and purchase, of any equity Proxy” in bold face type (at least as large tor, or associate thereof) during a 10 security of the applicant within any pe­ as 18 point), (v) shall describe any char­ percent period is greater than his quali­ riod of less than 6 months shall inure ter or State law requirement restricting fying deposits or the quarterly average to and be recoverable by the applicant or conditioning voting by proxy, (vi) shall of his qualifying deposits on the preced­ as if section 16(b) of the Securities Ex­ contain an acknowledgement by the per­ ing 15 percent date or during the preced­ change Act of 1934, as amended, and the son giving the proxy that he has received ing 15 percent period, as the case may rules and regulations under such section, a proxy and information statement prior be, the distribution with respect to the applied, to the applicant immediately to signing the form of proxy, (vii) shall 10 percent period shall be based on the upon conversion. No plan of conversion contain the date, time and place of meet­ cumulative average of his qualifying de­ shall be approved, unless the applicant ing, if practicable, and (viii) shall pro­ posits during such 10 percent period and has furnished to the Corporation an vide by a box or otherwise, a means during such 15 percent period or during agreement, in form satisfactory to the whereby the person solicited is afforded such 10 percent period and on such 15 Corporation, that the applicant will an opportunity to specify by ballot a percent date, as the case may be; and promptly obtain and furnish to the Cor­ choice between approval or disapproval (6) In determining the amount of poration similar agreements from each of each matter referred to therein as in­ qualifying deposits or the quarterly av­ person who subsequent to the conversion tended to be acted upon. erage of qualifying deposits, the appli­ becomes a director, officer or beneficial (2) No proxy subject to this section cant shall deduct the amount of any owner directly or indirectly of more than shall confer authority to vote at any share loans and may deduct or include 10 percent of the applicant’s capital meeting other than the meeting (or interest and dividends provided such de­ stock. The requirements of this para­ any adjournment thereof) to vote on duction or inclusion is performed con­ graph shall automatically terminate conversion. A proxy may be deemed to sistently for all accounts. whenever the applicant becomes regis­ confer authority to vote with respect to (f) Dividend and repurchase restric­ tered tinder section 12(g) of the Securi­ matters incident to the conduct of such tions. Without the prior approval of the ties Exchange Act of 1934, as amended. meeting. If the plan of conversion is con­ Corporation, no insured institution that § 563b.6 Solicitation o f proxies and use sidered at an annual meeting, existing has converted under this part shall for o f proxy and information statement. proxies may be voted with respect to 5 years after the date of such conversion matters not related to the plan of (1) repurchase any of its capital stock (a) Solicitations to which rules apply. conversion. from any director, officer, former director This section applies to every solicitation of a proxy from an association member (3) The proxy and information state­ or officer, or associate thereof or (2) de­ ment or form of proxy shall provide that clare or pay a cash dividend on, or re­ of an insured institution for the meeting at which a conversion plan will be voted the votes represented by the proxy will purchase, any of its capital stock in an be voted and that, where the person amount exceeding 25 percent of its upon, except the following: (1) Any solicitation made otherwise solicited specifies by means of a ballot earned surplus accumulated after the provided pursuant to paragraph (d) (1) date of conversion; except that there than on behalf of the management of (viii) of this section a choice with respect shall be no such declaration, payment or the insured institution where the total number of persons solicited is not more to any matter to be acted upon, the votes repurchase unless the insured institution, will be voted in accordance with the upon giving effect thereto, shall satisfy than 50; (2) Any solicitation through the me­ specifications so made. the net worth requirements contained in (e) Material required to be filed. (1) § 563.13(b) of this subchapter. dium of a newspaper advertisement which informs association members, fol­ Applicants shall file preliminary copies (g) Manipulative and deceptive de­ of such proxy materials as are required vices. In the offer, sale or purchase of lowing preliminary approval of the plan of conversion, of a source from which by the appropriate form for applying for stock issued incident to its conversion, preliminary approval to convert under n° msured institution, or any director, they may obtain copies of a proxy and this part. information statement, form of proxy, officer or employee thereof, shall (1) em­ (2) Ten preliminary copies of any ad­ ploy any device, scheme, or artifice to or any other soliciting material and does no more than (i) name the insured in­ ditional soliciting material subject to this defraud, or (2) obtain money or property section including soliciting material in oy means of any untrue statement of a stitution, (ii) state the reason for the material fact or any omission to state a advertisement, (iii) identify the proposal the form of press releases, and radio or material fact necessary in order to make or proposals to be acted upon by associa­ television scripts, to be used or furnished tion members, and (iv) urge the mem­ to association members subsequent to the statements made, in the light of the furnishing the proxy and information rcumstances under which they were ber to vote at the meeting. made, not misleading, or (3) engage in (b) Use of proxy soliciting material statement, shall be filed with the Cor­ poration at least 5 business days prior nfKa • transaction, practice, or course to be authorized. No proxy soliciting ma­ business which operates or would op­ terial required to be filed with the Cor­ to the date on which the Corporation is requested to authorize the use of such erate as a fraud or deceit upon a pur­ poration prior to use shall be furnished chaser or seller. to association members or otherwise re­ material. Speeches may, but need not be, leased for distribution until the use of filed with the Corporation prior to use. (h) Reports and trading. No plan of such material has been authorized in (3) Twenty-five copies of the proxy conversion shall be aproved, unless the writing by the Corporation. and information statement and 10

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY IT , 1973 No. 7— Pt. i i ---- 2 1342 PROPOSED RULE MAKING copies of the form of proxy and all other (1) A statement of the approximate (4) If a nonmanagement solicitation soliciting material, in the form in which number of association members who violates any provision of this section, the such material is furnished to association have been or are to be solicited on behalf applicant shall be entitled with the con­ members, shall be filed with or mailed for of the management, or any group of such currence of the Corporation to disregard filing to the Corporation not later than holders which the association member any proxy given in response to such so­ the date such material is first sent or shall designate. licitation and may employ any other given to association members. All ma­ (ii) An estimate of the cost of mailingremedy available to it. terials filed pursuant to this paragraph a specified proxy and inf ormation state­ (h) Prohibition of certain solicita­ (e) (3) of this section shall be accom­ ment, form of proxy or other communi­ tions. No person soliciting a proxy from panied by a statement of the date on cation to such association members. an association member for the meeting which copies of such materials are to be (2) (i) Copies of any proxy and in­ to vote on conversion shall solicit: released to association members. formation statement, form of proxy or (1) Any undated or post-dated proxy; (4) If the solicitation is to be made in other communication furnished by the or whole or in part by personal solicitation, association member and as approved by (2) Any proxy which provides that it 10 preliminary copies of all written in­ the Corporation shall be mailed by the shall be deemed to be dated as of any structions or other material which dis­ applicant to such of the association date subsequent to the date on which it cusses or reviews, or comments upon the members specified in paragraph (f) (1) is signed by the association members; j merits of, any matter to be acted upon (i) of this section as the association or and which is to be furnished to the in­ member shall designate. (3) Any proxy which is not revocable dividuals making the actual solicitation (ii) Any such material which is fur­ at will by the association member giving for their use directly or indirectly in con­ nished by the association member shall it; or nection with the solicitation shall be filed be mailed with reasonable promptness (4) Any proxy which is part of any with the Corporation at least 5 days prior by the applicant after receipt of the ma­ other document or instrument (such as to the date on which the Corporation is terial to be mailed, envelopes or other an account card). requested to authorize the use of such containers therefor and postage or pay­ § 563b.7 Form and content of financial material. ment for postage. statements. (iii) Neither the management nor the (5) All preliminary copies of material (a) Application of this section. This filed pursuant to subparagraphs (1), (2), applicant shall be responsible for such proxy and information statement, form section states the requirements as to the and (4) of this paragraph (e) shall be form and content of all financial state­ clearly marked on the cover page “Pre­ of proxy or other communication. (g) False or misleading statements. ments to be furnished with forms pur­ liminary Copy.” Such preliminary copies suant to this part. The term “financial shall be for the information of the Cor­ (1) No solicitation of a proxy by the ap­ plicant, its management, or any other statements” shall be deemed to include poration only and shall not be deemed all notes to the statements and related available for public inspection except person for the meeting to vote on con­ version shall be made by means of any schedules. ~ that such material may be disclosed to (b) Definitions of terms used in this any department or agency of the U.S. proxy and information statement, form of proxy, notice of meeting or other com­ § 563b.7. Unless the context otherwise Government or appropriate State gov­ requires, terms defined in § 563b.2 or in ernment and the Corporation may make munication, written or oral, containing any statement which, at the time and in the instructions to the applicable form, such inquiries or investigation in regard when used in this § 563b.7 shall have the to the material as may be necessary for the light of the circumstances under which it is made, is false or misleading respective meanings given in such sec­ an adequate review thereof by the tions or instructions. In addition, the fol­ Corporation. with respect to any material fact, or which omits to state any material fact lowing terms shall have the meanings (6) Unless requested by the Corpora­ indicated in this section unless the con­ tion, copies of replies to inquiries from necessary in order to make the state­ ments therein not false or misleading text otherwise requires. members of the insured institution and (1) Accountant’s report. The term copies of communications which do no or necessary to correct any statement in any earlier communication with respect “accountant’s report”, when used in re­ more than request that forms of proxy gard to financial statements, means a theretofore solicited be signed and re­ to the solicitation of a proxy for such meeting which has become false or mis­ document in which an independent pub­ turned need not be filed pursuant to this lic or certified public accountant indi­ paragraph (e). leading. (2) The fact that a proxy and infor­ cates the scope of the audit (or exami- I (7) Where any proxy and information nation) which he has made and sets I statement, form of proxy or other ma­ mation statement, form of proxy or other soliciting material has been filed with or forth his opinion regarding the financial I terial filed pursuant to this paragraph statements taken as a whole, or an as- I (e) is amended or revised, four copies of examined by the Corporation and au­ thorized for use shall not be deemed a sertion to the effect that an overall I such amended or revised material filed opinion cannot be expressed. with the Corporation shall be marked finding by the Corporation that such ma­ terial is accurate or complete or not (2) Audit tor examination). The term I to indicate clearly and precisely the “audit” (or “examination” ), when used I changes effected therein subsequent to false or misleading, or that the Corpo­ in regard to financial statements, means I the last prior filing. ration has passed upon the merits of or an examination of the statements by an I approved any proposal contained there­ independent accountant in accordance I (f) Mailing communications for asso­in. No representation contrary to the ciation members. If the management of with generally accepted auditing stand- I foregoing shall be made by any person. ards for the purpose of expressing an I the applicant has adopted a plan of con­ (3) If a solicitation by management version, the applicant shall perform such violates any provision of this sectioii, the opinion thereon. of the following acts as may be duly re­ (3) Fifty-percent-owned person. The I Corporation may require remedial meas­ term “50-percent-owned person”, in re-1 quested in writing with respect to a mat­ ures including : ter to be considered at the meeting to lation to a specified person, means a I vote on the plan of conversion by any (i) Correction of any such violation by person approximately 50 percent of I means of a retraction and new solicita­ whose outstanding voting shares is I association member who will defray the tion; reasonable expenses to be incurred by owned by the specified person either di- I the applicant in the performance of the (ii) Rescheduling of the meeting for rectly, or indirectly through one or more I act or acts requested. a vote on the conversion; intermediaries. ' I (1) The applicant shall mail or other­ (iii) Withholding final approval of the (4) Fiscal year. The term “fiscal year” I wise furnish to such association member conversion; and means the annual accounting period or I the following information as promptly as (iv) Any other actions the Corpora­ if the applicant has previously used an I practicable after the receipt of such tion may deem appropriate in the cir­ audit period in connection with its cer- I request: cumstances in order to insure a fair vote. tified financial statements which does

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 PROPOSED RULE MAKING 1343 not coincide with its fiscal year, such au­ a subsidiary substantially all of whose whether the audit was made in accord­ dit period may be used in place of any outstanding voting shares are owned by ance with generally accepted auditing fiscal year requirement provided it its parent and/or the parent’s other standards; and (ii) shall designate any covers a full 12 months’ operations and wholly owned subsidiaries. auditing procedures deemed necessary by is used consistently. (c) Qualifications of accountants. (1) the accountant under the circumstances (5) Majority-owned subsidiary. The For the purpose of this part, the Cor­ of the particular case, which have been term “majority-owned subsidiary” poration will not recognize any person omitted, and the reasons for their omis­ means a subsidiary more than 50 per­ as a certified public accountant who is sion. Nothing in this subparagraph shall cent of Whose outstanding voting shares not duly registered and in good standing be construed to imply authority for the is owned by its parent and/or the as such under the laws of the place of his omission of any procedure which inde­ parent’s other majority-owned subsi­ residence or principal office. For the pur­ pendent accountants would ordinarily diaries. poses of this part, the Corporation will employ in the course of an audit made (6) Parent. A “parent” of a specified not recognize any person as a public ac­ for the purpose of expressing the opin­ person is an affiliate controlling such countant who is not in good standing and ions required by subparagraph (3) of this person directly, or indirectly through entitled to practice as such under the paragraph. one or more intermediaries. laws of the place of his residence or prin­ (3) Opinion to be expressed. The ac­ (7) Principal holder of equity securi­ cipal office. countant’s report shall state clearly: (i) ties. The term “principal holder of (2) For the purposes of this part, the The opinion of the accountant in respect equity securities”, used- in respect of an Corporation will not recognize any certi­ of the financial statements covered by applicant or other person named in a fied public accountant or public account­ the report and the accounting principles particular statement or report, means a ant as independent who is not in fact and practices reflected therein; and (ii) holder of record or a known beneficial independent. For example, an account­ the opinion of the accountant as to the owner of more than 10 percent of any ant will be considered not independent consistency of the application of the ac­ class of equity securities of the appli­ with respect to any person or any of its counting principles, or as to any changes cant or other person, respectively, as of parents, its subsidiaries, or other affiliates in such principles which have a material the date of the related balance sheet (i) in which, during the period of his effect on the financial statements as re­ filed. professional engagement to examine the quired to be set forth in the appropriate (8) Share. The term “share” means a financial statements being reported on proxy and information statement. share of stock in a corporation or unit or at the date of his report he or his firm (4) Exceptions. Any matters to which of interest in an unincorporated person. or a member thereof had, or was com­ the accountant takes exception shall be (9) Significant subsidiary. The term mitted to acquire, any direct financial clearly identified, the exception thereto “significant subsidiary” means a subsi­ interest or any material indirect finan­ specifically and clearly stated, and, to diary or a subsidiary and its subsidiaries, cial interest or (ii) with which, during the extent practicable, the effect of each which meet either of the conditions de­ the period of his professional engage­ such exception on the related financial scribed below based on the most recent ment to examine the financial state­ statements given. annual financial statements, including ments being reported on, at the date of (e) Examination of financial state­ consolidated financial statements, of his report or during the period covered ments of persons other than the appli­ such subsidiary which would be re­ by the financial statements, he or his cant. If an applicant is required to file quired to be filed if such subsidiary were firm or a member thereof was connected financial statements of any other person, an applicant and the most recent an­ as a promoter, underwriter, voting such statements need not be examined if nual consolidated financial statements trustee, director, officer, or employee, ex­ examination of such statements would of the applicant being filed: cept that a firm will not be deemed not not be required if such person were itself (i) The parent’s and the parent’s independent in regard to a particular an applicant. other subsidiaries’ proportionate share person if a former officer or employee of (f) Examination of financial state­ of the total assets (after intercompany such person is employed by the firm and ments by more than one accountant. If, eliminations) of the subsidiary, or their such individual has completely disassoci­ with respect to the examination of the investments in and advances to the ated himself from the person and its financial statements of the applicant, the subsidiary exceed 10 percent of the affiliates and does not participate in principal accountant relies on an audit total assets of the parent and consoli­ auditing financial statements of the per­ made by another accountant of certain dated subsidiaries. son or its affiliates covering any period of the accounts of such applicant or its (ii) The parent’s and the parent’s of his employment by the person. For the subsidiaries, the report of such other ac­ other subsidiaries’ proportionate share purposes of this section the term “mem­ countant shall be filed (and the provi­ of the total sales and revenues (after ber” means all partners in the firm and sions of paragraphs (c) and (d) of this intercompany eliminations) of the sub­ all professional employees participating section shall be applicable thereto); sidiary exceed 10 percent of the total in the audit or located in an office of the however, the report of such other ac­ sales and revenues of the parent and firm participating in a significant por­ countant need not be filed (1) if no refer­ consolidated subsidiaries. tion of the audit. ence is made directly or indirectly to (10) Totally held subsidiary. The term, (3) In determining whether an ac­ such other accountant’s audit in the totally held subsidiary” means a subsid­ count may in fact be not independent principal accountant’s report, or (2) if, iary (i) substantially all of whose out­ with respect to a particular person, the having referred to such other account­ standing equity securities are owned by Corporation will give appropriate con­ ant’s audit, the principal accountant + + Parent and/or the parent’s other sideration to all relevant circumstances, states in his report that he assumes re­ totally held subsidiaries, and (ii) which including evidence bearing on all rela­ sponsibility for such other accountant’s J no^ indebted to any person other than tionships between the accountant and audit in the same manner as if it had ts parent and/or the parent’s other that person or any affiliate thereof, and been made by him. otally held subsidiaries, excepting in­ will not confine itself to the relationships (g) Form, order, and terminology. debtedness incurred in the ordinary existing in connection with the filing of course of business which is not overdue (1) Financial statements may be filed in reports with the Corporation. such form and order, and may use gen­ th Jhich matures within 1 year from (d) Accountants’ reports— (1) Techni­ e date of its creation, whether evi­ erally accepted terminology, as will best cal requirements. The accountant’s re­ indicate their significance and character denced by securities or not. Indebtedness port (i) shall be dated; (ii) shall be n a ®u~s*diary which is secured by its in the light of the provisions applicable signed manually; (iii) shall indicate the thereto. nr *5: ky guarantee, pledge, assignment city and state where issued; and (iv) nnc-a er vise *s excluded for pur- shall identify without detailed enumera­ (2) All money amounts required to be shown in financial statements may be secfio °f paragraph (a) (10) (ii) of this tion the financial statements covered by the report. expressed in whole dollars, in thousands , ^ Wholly owned subsidiary. The of dollars or in hundred thousands of (2) Representations as to the audit. dollars, as appropriate: Provided, That erm ‘wholly-owned subsidiary” means The accountant’s report (i) shall state when stated in other than whole dollars,

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1344 PROPOSED RULE MAKING references shall be made in the appro­ been subsequently cured, shall be stated. fin indication to that effect is inserted Notation of such default or breach of immediately beneath the caption of the priate financial statements to the appli­ cable portion of such single statement. covenant shall be made in the financial statement or schedule, or at the top of statements and the entire amount of the money columns, or at an appropriate (n) Valuation and qualifying ac­ counts. Valuation and qualifying ac­ obligations to which the default or point in narrative material. breach relates shall be classified as a cur­ (3) Negative amounts (red figures) counts shall be shown separately in the financial statements as deductions from rent liability if said default or breach shall be shown in brackets or parentheses accelerates the maturity of the obliga­ and so described in the related caption, the specific assets to which they apply. (o) Basis of determining amounts— tions and makes it current under the columnar heading or a note to the state­ terms of the related indenture or agree­ ment or schedule, as appropriate. book value. If an instruction requires a statement as to “the basis of determining ment. If a default or breach exists, but (h) Items not material. If the amount acceleration of the obligation has been which would otherwise be required to be the amount,” the basis shall be stated specifically. The term “book value” will waived for a stated period of time beyond shown with respect to any item is not not be sufficiently explanatory unless, in the date of the most recent balance sheet material, it need not be separately set a particular instruction, it is stated to be being filed, state the amount of the obli­ forth. acceptable with respect to a particular gation and the period of the waiver. (i) Inapplicable captions and omission item. (7) Pension and retirement plans. A of unrequired or inapplicable financial (p) General notes to financial state­ brief description of the essential provi­ statements. (1) No caption need be ments. If present in regard to the appli­ sions of any employee pension or retire­ shown in any financial statements as to cant for which the financial statements ment plan and of the accounting and which the items and conditions are not are filed, the following shall be set forth funding policies related thereto shall be present. on the face of the appropriate statement given. The estimated cost of the plan for (2) Financial statements not required or in notes appropriately captioned and each period for which an income state­ or inapplicable because the required mat­ referred to in such statement. The infor­ ment is presented shall be stated. ter is not present need not be filed. mation shall be provided for each state­ (8) Restrictions which limit the avail­ (3) Financial statements omitted and ment requited to be filed, except that the ability of reserves and undivided profits the reasons for their omission shall be information required by paragraphs (p) for dividend purposes. Describe the most indicated in the list of financial state­ (4), (6), (7), and (8) of this section, shall restrictive of any such restrictions, indi­ ments required by the applicable form. be provided as of the most recent audited cating briefly its source, its pertinent pro­ (j) Omission of substantially identical statement of financial condition and any visions, and, where appropriate and de­ notes. If a note covering substantially the subsequent unaudited balance sheet be­ terminable, the amount of reserves and same subject matter is required with ing filed. When specific statements are undivided profits (i) so restricted or (ii) respect to two or more financial state­ presented separately the pertinent free of such restrictions. These restric­ ments relating to the same or affiliated notes shall be attached unless cross- tions would include absolute restrictions, persons, for which separate sets of notes referencing is appropriate. such as those imposed by State laws or are presented, the required information ( 1 ) Principles of consolidation or com­ credit agreements as well as those restric­ may be shown in a note to only one of bination. With regard to consolidated or tions resulting from any additional in­ such statements: Provided, That a clear combined financial statements, refer to come tax requirements before payment and specific reference thereto is made in paragraph (q) of this section for require­ of dividends and disclose the amount of each of the other statements with respect ments for supplemental information in income tax which would become payable. to which the note is required. notes to the financial statements. (9) Commitments and contingent lia­ (k) Additional information. The infor­ (2) Plan of conversion. A brief de­ bilities. (i) If material in amount, there mation required with respect to any state­ scription of the plan of conversion and shall be disclosed, the pertinent facts ment shall be furnished as a minimum the financial statement implications in­ relative to firm commitments for the ac­ requirement to which shall be added such cluding any subsequent dividend restric­ quisition of permanent or long-term in­ further material information as is neces­ tions. Reference may be made to other vestments (excluding normal commit­ sary to make the required statements, in descriptions contained in the form. ments made during the ordinary course the light of the circumstances under (3) Principles of translation of items of business) and property, plant and which they are made, not misleading. in foreign currencies. When items in for­ equipment and for the purchase, repur­ (l) Changes in accounting principles eign currencies are included in the finan­ chase, construction, or rental of assets and practices and retroactive adjust­ cial statements being presented, there under material leases. ments of accounts. (1) Any change in an shall be stated (i) a brief description of (ii) Where the annual rentals or ob­ accounting principle or practice, or in the principles followed in translating the ligations under noncancelable leases the method of applying any accounting foreign currencies into United States cur­ which have not been recorded as assets principle or practice, made during any rency and (ii) the amount and disposi­ and liabilities are in excess of 1 percent period for which financial statements tion of the unrealized gain or loss. of total sales and revenues of the most are being filed which materially affects (4) Assets subject to lien. Assets mort­ recent fiscal year, there shall be shown comparability of such financial state­ gaged, pledged, or otherwise subject to (A) the minimum annual rentals for the ments with those of prior periods, and lien, and the approximate amounts current and each of the 5 succeeding the effect thereof upon the net income of thereof, shall be designated and the obli­ years; (B) the nature and effect of any the period in which such change is made gations collateralized briefly identified. provisions that would cause the annual and, if practicable, of the prior periods (5) Intercompany profits and losses. rentals to vary from the minimum for which financial statements are being rentals; and (C) a description of the The amount, and the effect upon any bal­ types of property leased, important ob­ filed, shall be disclosed in an appropriate ance sheet item, of profits or losses re­ ligations assumed or guarantees made, manner. sulting from transactions with affiliated and any other significant provisions oi (2) Any material retroactive adjust­ companies and not eliminated shall be stated. If impracticable of accurate de­ such leases. ment made in income statements during (iii) a brief statement as to conting­ any period for which financial state­ termination without unreasonable effort ent liabilities not reflected in the balance ments are being filed, and the effect or expense, give an estimate or explain. sheet shall be made. thereof upon net income of prior periods (6) Defaults. The facts and amounts (10) Bonus, profit sharing, and otner shall be disclosed in a note to the appro­ concerning any default in principal, in­ similar plans. Describe the essential pro­ priate financial statements. terest, sinking fund, or redemption pro­ visions of any such plans in which only (m) Summary of accounting princi­visions with respect to any issue of secu­ directors, officers or key employees may ples and practices. Information required rities or credit agreements, or any breach participate, and state, for each of tne in notes as to accounting principles and of covenant of a related indenture or fiscal periods for which income state­ practices reflected in the financial state­ agreement, which default or breach ex­ ments are required to be filed, the ag­ gregate amount provided for all plans pj ments may be presented in the form of a isted at the date of the most recent bal­ charges to expense. single statement. In such case, specific ance sheet being filed and which has not

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY I t , 1973 PROPOSED RULE MAKING 1345

(11) Significant changes in bonds, charges, if any, reflected in income with of the periods combined and of the sales mortgages, and similar debt. Any sig­ respect thereto. or revenues, net income before extraor­ nificant changes in the authorized or is­ (14) Income tax expense. Disclosure dinary items and net income of any in­ sued amounts of bonds, mortgages and shall be made, in the income statement terim periods excluded from or included similar debt since the date of the latest or a note thereto, of the components of more than once in results of operations balance sheet being filed for a particu­ income tax expense, including: (i) Taxes as a result of such recasting. lar person or group shall be stated. currently payable; (ii) the net tax ef­ (iii) The 93-day requirement specified (12) Depreciation, depletion, obsoles­ fects, as applicable, of (iii) timing dif­ in paragraph (q) (1) (i) (B) (I) of this cence, and, amortization. State the policy ferences and (iv) operating losses; and section is not applicable to the recog­ followed with respect to: (v) the net deferred investment tax nition of earnings or losses of 50 per­ (i) The provision for depreciation, de­ credits. The applicant’s status as a “sav­ cent or less owned persons, the invest­ pletion, obsolescence, and amortization ings and loan association” as defined ments in which are accounted for by the of physical properties and capitalized in section 593 of the Internal Revenue equity method of accounting. leases, including the methods and, if Code, as amended, shall be stated in a (2) Group financial statements of sub­ practicable, the rates used in computing note referred to in the appropriate state­ sidiaries not consolidated and 50 percent the annual amounts; ments. Such note shall also indicate or less owned persons. There may be filed (ii) The provision for depreciation briefly the principal present assumptions financial statements in which majority- and amortization of intangible assets or on which the applicant has relied in owned subsidiaries not consolidated with the lack of such provision, including the making or not making provisions for the parent are consolidated or combined methods and, if practicable, the rates such taxes. Amounts applicable to Fed­ in one or more groups, and 50 percent used in computing the annual amounts; eral income taxes and to other income or less owned persons the investments (iii) The accounting treatment for taxes shall be stated separately for each in which are accounted for by the equity maintenance, repairs, renewals, and bet­ component, unless the amounts applica­ method are consolidated or combined in terments; and ble to other income taxes do not exceed one or more groups, pursuant to princi­ (iv) The adjustment of accumulated5 percent of the total for the component ples of inclusion or exclusion which will depreciation, depletion, obsolescence, and and a statement to that effect is made. clearly exhibit the financial position and amortization at the time the properties (15) Warrants or rights outstanding. results of operations of the group or are retired or otherwise disposed of, in­ Information with respect to warrants or groups. cluding the disposition of any gain or rights outstanding at the date of the re­ loss on sale of such properties. lated balance sheet shall be set forth (3) Statement as to principles of con­ as follows: solidation or combination followed, (i) (13) Capital stock optioned, sold or A brief description of the principles fol­ offered for sale to directors, officers and (i) Title of issue of securities called for by warrants or rights. lowed in consolidating or combining the key employees, (i) A brief description of separate financial statements, including the terms of each option arrangement (ii) Aggregate amount of securities called for by warrants or rights out­ the principles followed in determining shall be given including (A) the title and the inclusion or exclusion of (A) sub­ amount of securities subject to option; standing. (iii) Date from which warrants or sidiaries in consolidated or combined (B) the year or years during which the financial statements and (B) companies options were granted; and (C) the year rights are exercisable and expiration date. in consolidated or combined financial or years during which the optionees be­ statements, shall be stated in the notes to came, or will become, entitled to exercise (iv) Price at which warrant or right the options. is exercisable. the respective financial statements. (q) Consolidated and combined fi­ (ii) As to each consolidated financial (ii) State (A) the number of shares statement and as to each combined finan­ under option at the balance sheet date, nancial statements. This section shall and the option price and the fair value govern the presentation of consolidated cial statement, if there has been a change thereof, per share and in total, at the and combined financial statements. in the persons included or excluded in dates the options were granted; (B) the (1) Consolidated financial statements the corresponding statement for the pre­ number of shares with respect to which of the applicant and its subsidiaries, (i) ceding fiscal period which has a material options became exercisable during each The applicant shall follow in the con­ effect on the financial statements, the period presented, and the option price solidated financial statements principles persons included and the persons ex­ and the fair value thereof, per share and of inclusion or exclusion which will cluded shall be disclosed. If there have in total, at the dates the options became clearly exhibit the financial position and been any changes in the respective fiscal exercisable; (C) the number of shares results of operations of the applicant periods of the persons included made with respect to which options were exer­ and its subsidiaries: Provided, however, during the periods of the report which cised during each period, and the option That the applicant shall not consolidate: have a material effect on the financial price and the fair value thereof, per (A) Any subsidiary which is not ma­ statements, indicate clearly such changes share and in total, at the dates the op­ jority owned; or and the manner of treatment. tions were exercised; and (D) the num­ (B) Any subsidiary whose financial (4) Reconciliation of investment of a ber of unoptioned shares available, at the statements are as of a date or for peri­ person in subsidiaries not consolidated beginning and at the close of the latest ods different from those of the applicant, and 50 percent or less owned persons ac­ period presented, for the granting of op­ unless all the following conditions are counted for by the equity method, and tions under an option plan. met; (I) Such difference is not more equity of such person in their net assets. than 93 days; (2) the closing date of the (iii) A brief description of the terms A statement shall be made in a note to oi each other arrangement covering subsidiary is expressly indicated; and the latest balance sheet of the amount (3) the necessity for the use of different and the accounting treatment of any dif­ shares sold or offered for sale to only closing dates is briefly explained. rotors, officers, and key employees ference between (i) the investment of a snail be given, including the number of (ii) Notwithstanding the 93-day re­ person and its consolidated subsidiaries, snares and the offered price and the fair quirement specified in paragraph (q) (1) as shown in the consolidated balance value thereof per share and in total, at (i) (B)(1) of this section, in connection sheet, in the unconsolidated subsidiaries me dates of sale or offer to sell, as with the retroactive combination of the and 50 percent or less owned persons ac­ appropriate. financial statements of entities following counted for by the equity method and a “pooling of interests,” the financial (ii) their equity owned persons as shown (iv) The required information should statements of the constituents may be n . summarized and tabulated, as appro­ in their financial statements. combined even if their respective fiscal (5) Intercompany items and transac­ priate, with respect to all option plans periods do not end within 93 days, except ,a Sroup and other plans for shares tions. In general, there shall be elimin­ old or offered for sale as a group. that the financial statements for the lat­ ated intercompany items and transac­ est fiscal year shall be recast to dates tions between persons included in the (i) ®tate the basic of accounting for which do not differ by more than 93 days, b arrangements and the amount of consolidated financial statements being if practicable. Disclosure shall be made filed and, as appropriate, (ii) unrealized

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1346 PROPOSED RULE MAKING tations at the balance sheet date. When the related consolidated statement of financial intercompany profits and losses on trans­ original cost of securities purchased on a condition are eliminated and not eliminated. actions between persons for which finan­ yield basis has been properly adjusted to re­ (12) Other security investments. State the cial statements are being filed and flect amortization of premium or accumu­ basis of determining the amount shown in persons the investment in which is lation of discount since acquisition, the ba­ the balance sheet and state, parenthetically presented in such statements by the sis of determining their amount may be de­ or otherwise, the alternate of the aggregate equity method. If such eliminations are scribed “as cost” with appropriate footnote cost or the aggregate amount on the basis of not made, a statement of the reasons and disclosures. Show separately (a) other se­ market quotations at the balance sheet date. the methods of treatment shall be made. curities and investments and (b) securities (13) Investment in stock of the Federal of affiliates. Home Loan Bank. Indicate basis for deter­ (6) Consolidation of financial state­ (4) Loans secured by savings accounts. In­ mining amount shown in the balance sheet, ments of an applicant and its subsidiaries clude the balance of loans secured by the (14) Other Investments. State separately, engaged in diverse financial activities. pledge of its savings account. by class of investments, any items in excess (i) If the applicant and its subsidiaries (5) Mortgage loans. State separately here, of 5 percent of total assets. or in a note referred to herein, each major (15) Premises and equipment..State sepa­ are engaged in one or more types of fi­ rately here, or in a note referred to herein, nancial activities, e.g., banking, insur­ class, such as FHA and VA loans, conven­ tional loans, loans to facilitate sales of real if practicable, each major class, such as land, ance, finance, and savings and loan estate foreclosed, unimproved land, con­ buildings, machinery and equipment, lease­ subsidiaries, consolidated financial state­ tracts to facilitate the sale of real estate. holds, or functional grouping such as revenue ments may be filed unless deemed inap­ Indicate any amounts pledged to secure debt. producing equipment or industry categories, propriate: Provided, That, when more (6) Other loans. Include (i) improvement and the basis of determining the amounts. than one type of financial activity is in­ loans both insured and uninsured, (ii) edu­ (16) Accumulated depreciation, depletion volved, separate audited financial state­ cation loans, (iii) mobile home loans, (iv) and amortisation of property, plant and ments for each significant financial other loans. Show separately any significant equipment. Show separately on the state­ category. ment of financial condition or in a separate subsidiary or each significant group of (7) Accrued interest receivable on loans. note. financial subsidiaries shall be presented. Accrued interest receivable should be shown (17) Prepayment to FSLIC Secondary Re­ Savings and loan and other direct or in­ separately. serve. In a separate note indicate the nature direct subsidiaries of savings and loan (8) Valuation allowance. Loans known to of this asset. holding companies engaged in savings be uncollectible shall be excluded from the (18) Intangible assets. State separately and loan related finance activities are assets as well as from the valuation allow­ each major class, such as goodwill, franchises, considered to be one type of financial ac­ ance. patents or trademarks, and the basis of de­ (9) Real estate owned. State, parenthet­ termining their respective amounts. Indicate tivity for the purpose of this rule. ically or otherwise, (i) the basis of determin­ if any of these amounts have been required (ii) If the applicant and its subsidi­ ing the amount shown on the balance sheet, to be written off for purposes of reports to aries are engaged in (A) manufacturing, (ii) a description of the real estate owned the Corporation and the consequent effect on merchandising or other nonfinancial ac­ including if it was acquired by foreclosure, net worth requirements. tivities as well as in (B) financial activi­ by deed in lieu of foreclosure, in judgment (19) Accumulated amortization of intangi­ ties as described in paragraph (6) (i) and subject to redemption, or for develop­ ble assets. Show separately any applicable ment or resale. Any accumulated deprecia­ amortization indicating the policy for such of this section, the subsidiaries related tion or valuation allowances should be shown amortization. to whichever of group (A) or (B) is less separately. (20) Other assets. State separately (i) each significant shall not be consolidated with (10) Accounts and notes receivable, (i) pension or other special fund; and (ii) any the operations of the major group; how­ other item not properly classed in one of State separately amounts receivable from the preceding asset captions which is in ex­ ever, the group of lesser significance may (o) parents and subsidiaries; (b) other af­ cess of 5 percent of total assets. be included in the consolidated financial filiates and other persons the investments (21) Preoperating expenses deferred orga­ statements if its activities are principally in which are accounted for by the equity nization expense and similar deferrals. State for the benefit of the operations of the method; (c) underwriters, promoters, di­ separately each major class and, in a note major group. In interpreting the signifi­ rectors, officers, employees, and principal referred to herein, the policy for deferral and holders (other than affiliates) of equity se­ amortization. Indicate whether any of these cance of the groups above, the applicant curities of the person and its affiliates; and should consider factors in addition to amounts have been required to be written (d) others. Exclude from (c) amounts for off for purposes of the Corporation. those in the definition of significant sub­ purchases by such persons subject to usual sidiary including the primary business (22) Deferred debt expense. State, in a trade terms, for ordinary travel and expense note referred to herein, the policy for deferral activities of the registrant, trends, and advances and for other such items arising in and amortization. other pertinent matters. the ordinary course of business. With re­ (23) Deferred commissions and expense on (r) Financial statements for savings spect to (c) and (d ), state separately in the capital shares. State, in a note referred to applicant’s balance sheet the amounts which herein, the policy for deferral and amortiza­ and loan associations— (1) Application in the related consolidated balance sheet of this section. All financial statements tion. These items may be shown as deduc­ are eliminated and not eliminated. tions from additional capital. shall be prepared in accordance with (11) For receivables maturing after 1 year, (24) Total assets and, when appropriate, generally accepted accounting principles state in a note to the financial statements other debits. and practices applicable to the savings the amount thereof and, if practicable, the and loan industry and the accounting amounts maturing in each year. Interest Liabilities, R eserves and Stockholders' rules prescribed by the Board. Except as rates on major receivable items maturing Equ ity otherwise permitted by the Corporation, after 1 year, or classes of receivables so ma­ (25) Savings Accounts. Include accrued in­ applicants shall comply with the follow­ turing, shall be set forth, or an indication terest, if appropriate. of the average interest rate, or the range of (26) Loans in Process. Include the amount ing provisions: rates, on all receivables shall be given. of all undisbursed loan proceeds only where Statements op F inancial Condition A ssets (iii) Receivables from a parent, a sub­ a clear liability exists. (2) Cash and cash items. State separately sidiary, an affiliate or other person desig­ (27) Advance payments by Borrowers for (1) cash on hand and demand deposits; (ii) nated under subdivisions (i) (c) and (i) (d) Taxes and Insurance. funds subject to repayment on call or im­ above shall not be considered as current un­ (28) Advances from Federal Home Loan mediately after the date of the balance sheet less the net current asset position of such Bank. State separately here, or in a note required to be filed; (iii) time deposits; and person justifies such treatment. referred to herein, such information as will (iv) If the aggregate amount of notes re­ indicate (i) the general character of each (iv) other funds, the amounts of which are type of debt including the rate of interest, known to be subject to withdrawal or usage ceivable exceeds 10 percent of the aggregate restrictions, e.g., as compensating balances amount of receivables, the above informa­ (ii) the date or dates of maturity and the or special purpose funds. The general terms tion shall be set forth separately for ac­ amounts maturing as of each date. Any assets and nature of such repayment provisions counts receivable and notes receivable. pledged should be noted. and withdrawal or usage restrictions shall (11) Securities of affiliates and other per­ (29) Accounts and notes payable, (i) State be described in a note referred to herein. sons. Include under this caption amounts separately amounts payable to (a) banks, io (3) U.S. Government and Federal agency representing investments in affiliates and in­ borrowings; (b) trade creditors; (c) Par?P" obligations. State, parenthetically or other­ vestments in other persons which are ac­ and subsidiaries; (d) other affiliates and otn * counted for by the equity method, and state persons the investments in which are ac- wise, the basis of determining the amount counted for by the equity method; (e) under­ shown in the balance sheet and state the the basis of determining these amounts. State separately in the applicant’s statement of writers, promoters, directors, officers, em­ alternate of the aggregate cost or the ag­ ployees, and principal holders (other tn gregate amount on the basis of market quo- financial condition the amounts which in the

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 PROPOSED RULE MAKING 1347

affiliates) of equity securities of the person herein, the changes in each class of capital ing separately, if material, any significant and its affiliates; and (/) others. Exclude shares for each period for which an income items. from (e) amounts for purchases from such statement is required to be filed. (44) Other income. State separately any persons subject to usual trade terms, for (37) Other stockholders’ equity, (i) Sepa­ material amounts indicating clearly the na­ ordinary travel expenses, and for other such rate captions shall be shown for (a) paid-in ture of the transaction out of which the items arising in the ordinary course of busi­ additional capital, (b) other additional capi­ items arose. Other income may be stated net ness. With respect to (c) and (d), state sepa­ tal, and (c) retained earnings (1) appro­ of applicable expenses, provided that any ma­ rately in the applicant’s balance sheet the priated and (2) unappropriated. terial amounts are set forth separately. amounts which in the related consolidated (ii) If undistributed earnings of uncon­ sheet are eliminated and not elimi­ solidated subsidiaries and 50 percent or less E xpenses nated. , owned persons are included, state the (45) Interest on Savings Accounts. Include (ii) If the aggregate amount of notes pay­ amount in each category parenthetically or all interest or dividends paid or accrued on able exceeds 10 percent of the aggregate in a note referred to herein. savings accounts. amount of payables, the above information (iii) For a period of at least 10 years sub­ (46) Interest on Borrowings. Include all shall be set forth separately for accounts sequent to the effective date of a quasi­ interest paid or accrued on borrowings. payable and notes payable. reorganization, any description of retained (47) General and Administrative Expenses. (30) Accrued liabilities. State separately earnings shall indicate the point in time (See § 563b.7(r) (58).) (i) payrolls; (ii) taxes, indicating the cur­ from which the new retained earnings dates (48) Other expenses. Indicate separately rent portion of deferred income taxes; (iii) and for a period of at least 3 years shall any material items. Interest (indicating nature of accrual); and indicate the total amount of the deficit (49) Income or loss before income tax ex­ (iv) any other material items, indicating any eliminated. pense and appropriate items below. liabilities to affiliates. (iv) A summary of each account under (50) Income Tax Expense. (See § 563b.7 (31) Other liabilities. State separately (i) this caption setting forth the information (p)(14).) This caption only taxes based on dividends declared; (ii) any other item in prescribed in 563b.7(r) (39) shall be given for income. Show separately current and deferred excess of five percent of liabilities, indicating each period for which a statement of opera­ income taxes, if significant. Explain the na­ any liabilities to affiliates. The remaining tions is being filed. ture of major items relating to deferred in­ items may be shown in one amount. (38) Total liabilities, and stockholders’ come taxes. Explain the method of calculat­ (32) Bonds, mortgages and similar debt. equity. ing the bad debt deduction and the fact that State separately here, or in a note referred the allowable deduction will be declining in to herein, each issue or type of obligation Statem ent op Stockholders’ Equity future years. Include the amount of stock­ and such information as will indicate (i) the (39) A summary shall be given for each holders’ equity for which no income taxes general character of each type of debt in­ class of stockholders’ equity set forth in the have been paid and explain the significance cluding the rate of interest; (ii) the date related statement of financial condition. in terms of dividend payments on capital of maturity, or if maturing serially, a brief (1) Balance at beginning of period. State stock. indication of the serial maturities, such as separately the adjustments to the statement (51) Minority interest in income of con­ “maturing serially from 1980 to 1990” ; (iii) of financial condition at the beginning of solidated subsidiaries. if the payment of principal or interest is the first period of the report for items which (52) Equity in earnings of unconsolidated contingent, an appropriate indication of such were retroactively applied to periods prior to subsidiaries and 50 percent or less owned contingency; (iv) a brief indication of prior­ that period. person. The amount reported under this cap­ ity; (v) if convertible, the basis; and (vi) the (ii) Net income or loss from statement of tion shall be stated net of any applicable tax combined aggregate amount of maturities operations. (See § 563b.7(r) (55).) provisions. State, parenthetically or in a note and sinking fund requirements for all issues, (iii) Other additions. State separately any referred to herein, the amount of dividends each year for the 5 years following the date material amounts, indicating clearly the na­ received from such persons. If justified by of the balance sheet. For amounts owed to ture of the transactions out of which the circumstances, this item may be presented In affiliates, state separately in the applicant's items arose. a different position and a different manner. balance sheet the amounts which in the re­ (iv) Dividends. For each class of shares (53) Extraordinary items, less applicable lated consolidated balance sheet are elimi­ state the amount per share and in the aggre­ tax. State separately any material items and nated and not eliminated. gate. Show separately cash and other (spec­ disclose, parenthetically or otherwise, the The amounts of unamortized debt discount ify) dividends. tax applicable to each. and premium applicable shall be deducted (v) Other deductions. State separately any (54) Cumulative effects of changes iii ac­ from or added to the face amounts of the material amounts, indicating clearly the na­ counting principles. State separately, any issues under the particular caption either ture of the transactions out of which the material items and disclose parenthetically individually or in the aggregate, but if the items arose. or otherwise, the tax applicable to each. aggregate method is used the face amounts (vi) Balance at end of period. The balance (55) Net income or loss. (See § 563b.7(r) of the individual issues and the applicable at the end of the most recent period pVm.ii (39) (ii).) unamortized discount or premium shall be agree with the related statement of financial (56) Allocation of net income. Indicate shown parenthetically or otherwise. condition caption. the amounts of net income allocated to (i) (33) Deferred credits. State separately appropriated retained earnings and (ii) un­ amounts for (i) deferred income taxes, (ii) Statem ent op Operations appropriated retained earnings. deferred tax credits, and (iii) material items (57) Earnings per share data. Show sepa­ of deferred income. All items of profit and loss given recogni­ tion in the accounts during each period cov­ rately: (i) Earnings before any extraordi­ (34) Commitments and contingent liabili­ ered by the statement of operations, except nary items, (ii) earnings applicable to ex­ ties. (See § 563b.7(p) (9).) retroactive adjustments, shall be included in traordinary items, and (iii) net earnings per share. In connection with any subsequent Minority I nterests the statement of operations for each such period (see ! 563b.7(l) ). Only items entering capital stock distributable to eligible account (35) Minority interests in consolidated into'thé deterniination of net income or'loss holders pursuant to a plan of conversion, re­ subsidiaries. State separately in a note re­ may be included. flect earnings per share data on a retroactive ferred to herein, amounts represented by pre­ basis. Set forth in reasonable detail the com­ ferred stock and the applicable dividend re­ I ncome putation of per share earnings. quirements if the preferred stock is material (40) Interest on loans. Include amortiza­ (58) Supplementary Information to the m relation to the consolidated stockholders tion of any premium. Statement of Operations. Furnish the follow­ equity. ing schedule for each statement of opera­ (41) Interest and Dividends on Invest­ tockholders qu ity tions in which operating revenues were of S ’ E ments. Show separately interest or dividends (36) Capital shares. State for each class significant amount. This schedule may be from affiliates. Exclude from this caption omitted if the information required by Col­ . _ ares the title of issue, the number of dividends from both subsidiaries and invest­ umn B and Instructions 3 and 4 thereof is hares authorized, the number of shares is- ments which are accounted for by the equity method. furnished in the statement of operations or «inn- °r outstanding, as appropriate, and the in a note thereto. This information shall be tKavf ^mount thereof, and, if convertible, (42) Loan Origination Fees. Include fees provided for each of the 3 fiscal years pre­ «inL; * .of conversion. Show also the dollar and charges received in connection with the ceding the date of the latest statement of hut ** an7» oi capital shares subscribed making or acquisition of mortgage loans not financial condition filed and for the period, and ekew the deduction of subject to deferral by regulation. if any, between the close of the latest of BUbscrtptiong receivable therefrom. Show (43) Other fees. Include loan servicing fees, i or in a note or statement referred to such fiscal years and the date of the latest prepayment charges, late charges, etc. show­ statement of financial condition filed.

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY IT , 1973 1348 PROPOSED RULE MAKING

Supplementary I nform ation t o t h e § 563b.8 Vote by members; application § 563b.9 Pricing and distribution of Statement of O peration s1 to the Corporation for final approval. securities. Column A Column B * (a) Vote at special meeting. Following Ca) General. No sale or distribution of Charged to Corporation approval of an application securities of the applicant pursuant to general and for preliminary approval, the plan shall the plan of conversion may be made administrative prior to final approval of the plan pursu­ expenses be submitted to a special meeting of mem­ and other bers, unless State law requires that the ant to § 563b.8. No offer to sell or offer Item accounts plan be considered at an annual meeting to buy such securities may be made prior to preliminary approval of the appli­ 1. Maintenance and repairs— - of members. 2. Depreciation, depletion and (b) Determining members eligible to cant’s plan of conversion by the Cor­ amortization of premises vote. The record date for determining poration. This paragraph shall not ap­ and equipment------those members eligible to vote at the ply to preliminary negotiations or agree­ 3. Depreciation and amortiza­ meeting called to consider a plan of con­ ments between an applicant and any tion of intangible assets—_ version shall be not more than 60 nor underwriter or among underwriters who 4. Taxes, other than income less than 35 days prior to the date of are or are to be in privity of contract taxes 3------such meeting, unless State law requires with the applicant. 5. Rents *______—----- (b) Distribution of proxy and infor­ 6. Royalties ______a different voting record date. 7. Advertising costs 5------(c) Notice to members. Notice of the mation statement. The appropriate 8. Provision for doubtful ac­ meeting to consider a plan of conversion proxy and information statement shall counts and notes------shall be given by the proxy and informa­ be distributed to eligible account hold­ 9. Expenses of conversion------tion statement authorized for use by the ers at the same time it is mailed to as­ sociation members pursuant to § 563b.8 Statement of C hanges in F inancial Corporation not more than 50 nor less C ondition than 30 days prior to the date of the (c ). Only one proxy and information meeting to each association member and statement need be distributed to any (59) The statement of changes in financial person who is both an eligible account condition shall summarize the sources from each eligible account holder, postage pre­ which funds have been obtained and their paid, at his last address as shown on the holder and an association member. application. Material changes in the com­ books of the applicant, unless State law (c) Specification of price in proxy and ponents of net funds shall be shown in the requires a different notice period. information statement. The proxy and statement or in a supporting tabulation. As (d) Required vote. The plan shall be information statement shall set forth a a minimum, the following shall be reported: approved by a vote of at least two-thirds price range for the securities of the ap­ (1) Sources of funds: of the total outstanding votes of the ap­ plicant to be distributed to eligible ac­ (a) Funds provided from operations plicant’s association members, unless count holders under the plan of conver­ (showing separately net income or loss and sion. The maximum of such price range the addition and deduction of specific items State law requires a higher percentage, which did not require the expenditure or re­ in which case the higher percentage shall be no more than 10 percent above ceipt of funds; e.g., depreciation and amorti­ shall be used. Voting may be in person or the average of the minimum and maxi­ zation, deferred income taxes, undistributed by proxy. mum of such price range and the mini­ earnings or losses of unconsolidated persons, (e) Application for final approval. (1) mum shall be no more than 10 percent etc.). Upon approval by the association mem­ below such average. (b) Principal payments on loans. bers of the plan of conversion in ac­ (d) Final pricing. Prior to or at the (c) Sale of loans, if material. time of final approval the applicant (d) Sale of other assets (identifying sepa­ cordance with the vote required by para­ graph (d) of this section, the applicant shall fix an actual price or a final price rately such items such as real estate owned, range for the securities to he distributed fixed assets, intangibles, etc.). shall submit to the Corporation an ap­ (e) Issuance of longterm debt. plication for final approval of the plan under the plan of conversion. The maxi­ (/) Increase in savings accounts. of conversion on the appropriate form mum of the price range under this para­ (gf) Loan fees deferred. prescribed by the Corporation, as soon as graph shall be no more than 3 percent (ii) Application of funds: practicable after the meeting. above the average of the minimum and (a) Origination and purchase of loans (2) No plan of conversion under this maximum of such price range and the (showing separately if material). part shall be implemented following ap­ minim um shall be no more than 3 (b) Purchase of other assets (identifying percent below such average. Following separately such items as investments, fixed proval of the plan by the members, un­ assets, intangibles, etc.). less an application for final approval final approval only an actual price (c) Repayment of longterm debt. shall have been approved by the Corpora­ within such range may be used. (60) Schedules to financial statements. Notion. (e) Representations as to pricing. The schedules to financial statements, other than (3) Approval by the Corporation of Corporation will review the price ranges Supplemental Information to the Statement the application for final approval termi­ and actual prices described in para­ of Operations, are required to be furnished. graphs (c) and (d) of this section in However, the Corporation may request that nates the Federal charter of an 9 appli­ cant effective upon the issuance to it of determining whether to give preliminary additional schedules be filed in order that the and final approval to plans of conver­ financial statements not be misleading or to a stock charter under the laws of the insure that all information as would be State in which the home office of the ap­ sion. No representations may be made in meaningful be included. The applicant may plicant is located. Such Federal charter any manner by the applicant that such consider the furnishing of such schedules as shall promptly be surrendered to the price ranges or actual prices have been are required for any additional filings with Board for cancellation. approved by the Corporation. the Securities and Exchange Commission. (4) Every applicant under this part (f) Underwriting expenses. The price shall promptly file with the Corporation ranges and actual prices described in 1 State, for each of the items noted in Col­ a copy of the stock charter issued to it. paragraphs (c ) and (d) of this section umn A which exceeds 1 percent of total reve­ Conversion shall be deemed to have oc­ shall be net of any actual or estimated nues as reported in the related statement of curred on the date of issuance of the underwriting commissions, fees and dis­ operations, the amount called for in Column stock charter. Upon the granting of final counts. Such underwriting com m is­ B. approval by the Corporation the ac­ sions, fees and discounts shall not ex­ * Indicate amounts charged to other ac­ ceed an amount or percentage per share counts indicating account such as real estate counts of the converted institution shall be insured to the same extent and in the acceptable to the Corporation. owned or other income—from real estate (g) Pricing materials. (1) In consider­ operations. same manner as the accounts of the 3 State separately each category of tax converting institution. The certificate of ing price ranges and actual prices under which exceeds 1 percent of total revenues. insurance of the converting institution paragraphs (c) and (d) of this section, * Include rents applicable to leased per­ shall promptly be surrendered to the the Corporation will apply the following sonal property. Corporation for cancellation, and the guidelines to the materials in support ox BThis item shall include all costs related Corporation shall promptly issue a new such price ranges and prices: to advertising the company’s name, products (i) The materials shall be prepared by or services in newspapers, periodicals or other certificate of insurance to the converted persons independent of the applicant, advertising media. association.

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY IT , 1973 PROPOSED RULE MAKING 1349

experienced and expert In the area of determined in accordance with para­ thus gives insured institutions desiring corporate appraisal, and acceptable to graph (c) or (d) of this section, (iv) to convert ample notice that they should the Corporation; provide specifically designated blank establish the necessary internal controls. (ii) The materials shall contain data spaces for dating and signing the form, (b) The Corporation nevertheless an­ which are sufficient to support the con­ (v) contain an acknowledgment by the ticipates that there will be insured insti­ clusions reached therein; person completing the form that he has tutions which will form an intent to con­ (iii) The materials shall contain a received a proxy and information state­ vert at a later date and which will not complete and detailed description of the ment prior to signing the form, (vi) in­ have previously established the necessary appraisal methodology employed; and dicate the effect of failing to complete internal controls. Such institutions will (iv) To the extent that the appraisal and return the form, and (vii) describe then be in the posture of having to trace is based on comparison of the proposed the eligible account holder’s right to re­ predecessor accounts as though the Cor­ securities of the applicant with outstand­ vise a choice made on an earlier form. poration had initially adopted a require­ ing securities of existing stock associa­ (i) Exercise and distribution periods.ment of back time averaging and weight­ tions, the materials must demonstrate The minimum exercise period for sub­ ing with respect to them. The Corpora­ the appropriate comparability of the form scription warrants and rights shall be tion therefore anticipates that it will re­ and substance of such outstanding se­ 16 calendar days after the mailing of ceive requests from such institutions for curities and the appropriate comparabil­ such warrants or rights is completed. a relaxation of time weighting and aver­ ity of such existing stock associations in Distribution of the converted associa­ aging requirements. terms of such factors as size, market area, tion’s capital stock and such cash or (c) It wili be the policy of the Corpora­ competitive conditions, profit history, credits to accounts as may be payable tion not to consider such requests fa­ and expected future earnings. under the plan of conversion shall be vorably. The Corporation is of the view (2) In addition to the information re­ completed as promptly as possible but that only a system of time adjustment quired in paragraph (g) (1) of this sec­ no later than 30 calendar days after the which is applied on a uniform and con­ tion, the applicant shall submit infor­ later of (1) final approval of the con­ sistent basis is sufficient to discourage mation demonstrating to the satisfaction version „by the Corporation, or (2) the shifts of savings funds on a destabilizing of the Corporation the independence and expiration date of such warrants or scale as a result of conversions. The Cor­ expertise of any person preparing mate­ rights, or (3) commencement of a public poration encourages insured institutions rials under this paragraph. However, a offering of the applicant’s securities, if to establish promptly the internal con­ any, pursuant to the plan of conversion. trols necessary to trace predecessor ac­ person will not be considered as lacking counts whether or not the institution has independence for the reason that such § 563b.10 Post-conversion reports. any plans to convert. person will participate in effecting a dis­ tribution of securities under the plan of (a) Itemized expenses. Within 90 days 4. In connection with proposed new conversion. after distribution of capital stock under Part 563b, the Board proposes to adopt and employ the following forms: (h) Order forms. (1) Concurrentlythis part, the insured institution shall file with or after the distribution of the ap­ the information required by the item in F orm PA propriate proxy and information state­ the appropriate proxy and information statement form relating to expenses in­ [Facing Sheet] ment pursuant to paragraph (b) of this FEDERAL HOME LOAN BANK BOARD section, the applicant may distribute to curred in converting to a stock associa­ all eligible account holders and such as­ tion. Such information shall be final, Federal Savings and Loan Insurance and the expenses shall be separately sociation members who may have rights Corporation under the plan of conversion forms upon stated to the extent required by such which such account holders and members form. Washington, D.C. 20552 may indicate decisions as to choices ex­ (b) Additional reports. The insured in­ Application for Preliminary Approval of ercisable under the applicant’s plan of stitution shall file such other reports Conversion conversion. concerning its conversion as the Corpo­ (2) The applicant may make provision ration may require. (Exact name of applicant as specified in for such order forms to be binding on charter) such account holders and members even though such order forms, as permitted PART 571— STATEMENTS OF POLICY (Street address of applicant) in paragraph (c) of this section, state a 3. It is proposed to adopt a new State­ price range. However, an order form stat­ ment of Policy, § 571.8, as follows: (City, State, and ZIP code) ing a price range as permitted in para­ graph (c) of this section shall not be § 571.8 Maintenance o f records for con­ binding if it orders the purchase of se- versions. (Date of application) ^nties, and if the actual price fixed G eneral I nstructions (a) Section 563b.5 of the rules and by the applicant under paragraph (d) of A. RULE AS TO USE OF FORM PA this section is not within such range. regulations for insurance of accounts re­ Eligible account holders and association quires in part that, in the conversion of Form PA shall be used by any insured in­ members may also revise a choice made an insured institution to the stock form, stitution seeking Federal Home Loan Bank on an earlier form up to the time of the specified percentages of conversion se­ Board or Federal Savings and Loan Insurance curities be distributed on the basis of Corporation preliminary approval of conver­ meeting, if the form is distributed after sion from the mutual to the stock form of J1® niceting, the minimum exercise pe- eligible accountholders’ qualifying depos­ its and/or the quarterly average of their organization pursuant to Part 563b of the nod shall be 16 calendar days after com­ rules and regulations for insurance of ac­ pletion of the mailing of the forms. The qualifying deposits over certain periods. counts. This system of time adjustment for de­ appropriate proxy and information state- B. APPLICATION OF RULES AND REGULATIONS ment shall contain a description of the termining the amount of conversion se­ conditions under which order forms will curities to which each eligible account- Attention is directed to insurance § 563b.3. holder is entitled is basically a system of That section contains general requirements llri and of the circumstances unaer which order forms may be revised. forward time averaging and weighting, regarding preparation and filing of this form. as opposed to back time averaging and The definitions in insurance § 563b.2 also nnioL p°rms distributed pursuant to weighting. This system was selected be­ should be noted. (1) of this section shall (i) cause it appears that most insured insti­ Item 1. Form of application. Set forth an ann«a+? total number of securities application for preliminary approval of the tutions do not have internal controls applicant’s plan of conversion in the fol­ S ? L 0r^d to the particular eligible ac- sufficient to trace predecessor accounts lowing form: to whom the form is ad- as defined in § 563b.5 of this chapter, for S V ì i ? mdicate the period for ex- any extended period prior to July 13, (City) ’ (State)" r 2 S ? the form, (iii) state the price 1972, except at prohibitive cost. A system g or actual price of the securities of forward time averaging or weighting (Date)

No. 7—Pt. n ——8 FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1350 PROPOSED RULE MAKING

F ederal H ome Loan Ba n k B oard Item 5. Sequence and timing of the plan. Item 10. Expenses of conversion. With re­ Set forth the expected chronological order of spect to the applicant’s estimated expenses FEDERAL SAVINGS AND LOAN INSURANCE the events connected with the applicant’s of conversion set forth pursuant to Item 5 CORPORATION plan of conversion beginning with the filing of Form PS, describe briefly any transactions Washington, D.C. of this application through distribution of or proposed transactions giving rise to such the capital stock certificates pursuant to expenses in which any of the following per­ The undersigned hereby makes applica­ § 563b.9(i). Indicate the expected timing of sons had or is to have a direct or indirect tion for preliminary approval to convert into any requisite approvals by State authorities. material interest, naming such person and a stock association, and submits herewith a If there will be an underwritten public stating his relationship to the applicant, the statement of its proposed plan of conversion offering of the applicant’s securities as part nature-of his interest in the transaction and, and other information and exhibits as re­ of the plan of conversion, indicate the pro­ where practicable, the amount of such in­ quired by Part 563b of the rules and regula­ posed timing of all aspects of such offering terest ; tions for insurance of accounts of the Federal beginning with the distribution of prelimi­ (a) Any director or officer of the appli­ Savings and Loan Insurance Corporation. nary offering circulars. For purposes of com­ cant; and In submitting this application the appli­ pleting this item, the applicant should allow (b) Any relative or spouse of any of the cant understands and agrees that, if further a minimum of 30 business days after filing of foregoing persons, or any relative of such examinations or appraisals, or both, are re­ this application for receipt of comments from spouse, who has the same home as such per­ quired by the Federal Home Loan Bank Board the Corporation’s staff and a minimum of 10 son or who is a director or officer of any sub­ or the Federal Savings and Loan Insurance business days after filing amendments in re­ sidiary of the applicant. Corporation, they will be conducted by, or as sponse to such comments for preliminary Instructions. 1. No information need be approved by .'the Board or the Corporation at approval of the plan of conversion by the given in response to this Item 10 as to any the expense of the applicant; and applicant Corporation. remuneration or other transaction reported will, pay the costs thereof as computed by the Item 6. Record date and percentages. If in response to Item 7 of Form PS. Board or the Corporation. the applicant’s plan of conversion contains 2. No information need be given in an­ This application has been approved by at a distribution record date earlier than the swer to this Item 10 as to any specified per­ least two-thirds of the board of directors of latest such date approved by the Corpora­ son if the total direct and indirect material the applicant. In accordance with § 563b.3(c) tion, state the reasons for the selection of the interest of such person in transactions or (4) of the rules and regulations for insurance earlier date. If the applicant’s plan contains proposed transactions giving rise to the ap­ of accounts, by the filing of this application, more than one distribution record date, a plicant’s conversion expenses is less than the applicant by its duly authorized repre­ distribution record period, or distribution $5,000. sentative, the undersigned officers and each record periods, state the reasons for the se­ 3. It should be noted that this item calls lection of such provisions. If the applicant’s for disclosure of indirect, as well as direct, member of the applicant’s board of directors material interests in transactions. A person severally represent, except to the extent plan of conversion contains percentages for otherwise provided in said section, (1) that allocation of stock which vary from the per­ who has a position or relationship with a centages specified in the table contained in firm, corporation, or other entity, which en­ each such person has read this application; gages in a transaction with the applicant (2) that in the opinion of each such person, § 563b.5, state the reasons for such variation. It should be noted that such, percentage var­ related to the applicant’s conversion ex­ he has made such examination and investi­ penses may have an indirect interest in such gation as is necessary to enable him to iation may be made only in accordance with § 563b.5(e) (2). transaction by reason of such- position or re­ express an informed opinion that this appli­ lationship. However, a person shall be cation compilés to the best of his knowledge Item 7. Savings account balances of per­ sonnel. In the case of plans of conversion deemed not to have a material interest in a and belief with the applicable requirements transaction within the meaning of this Item of Part 563b of the rules and regulations for adopted during 1972 through 1977, for each insurance of accounts and forms thereunder; director and officer of the applicant, and for 10 where— each employee of the applicant whose total (a) The interest arises only (i) from such and (3) that each such person holds such person’s position as a director of another informed opinion. account balances, including the balances of each associate of such employee, as of the corporation or organization (other than a Attest ; distribution record date were more than partnership) which is a party to the trans­ $20,000, set forth in tabular form his total action, or (ii) from the direct or indirect ownership by such person and all other per­ Applicant account balances as of (1) the end of each quarterly period during 1972, unless the end sons specified in paragraphs (a) and (b) of B y ------of any such quarterly period is subsequent to this Item 10, in the aggregate, of less than a (Duly Authorized the distribution record date under the ap­ 10 percent equity interest in another person Representative ) plicant’s plan of conversion; (2) the distri­ (other than a partnership) which is a party bution record date under the applicant’s to the transaction, or (iii) from both such plan of conversion; and (3) any other date position and ownership; (Principal Executive Officer) or dates during 1972 as of which stock is (b) The interest of such person arises to be allocated under the plan of conver­ solely from the holding of an equity inter­ (Principal Financial Officer) sion. This item need not be completed as est (including a limited partnership inter­ to any officer, director, employee, or associ­ est but excluding a general partnership in­ ate who is not an eligible account holder terest) or a creditor interest in another per­ (Principal Accounting Officer) under the applicant’s plan of conversion. son which is a party to the transaction with Item 8. Management syndicate. If the di­ the applicant or any of its subsidiaries and (Two-thirds of the Board of rectors and officers of the applicant propose the transaction is not material to such other Directors) to form a group or syndicate for the purpose person. of purchasing the applicant’s securities pur­ 4. The amount of the interest of any speci­ Item 2. Plan of conversion. Furnish the suant to the plan of conversion, give a de­ fied person shall be computed without re­ complete formal written plan adopted by the tailed description of any financing arrange­ gard to the amount of the profit or loss in­ board of directors of the applicant for con­ ments to be employed. If the applicant pres­ volved in the transaction. Where it is not version of the applicant to the stock form of ently proposes to issue new stock within 1 practicable to state the approximate amount organization. The terms of the plan sub­ year following conversion and if the directors of the interest, the approximate amount in­ mitted pursuant to this Item will be a basis and officers of the applicant are to receive volved in the transaction shall be indicated. for the Corporation’s approval and the plan any priority right to purchase such stock, Item 11. Indemnification of Directors and as approved will be distributed as an attach­ give a detailed description of such proposal Officers. State the general effect of any char­ ment to the proxy and information statement and of any financing arrangements to be ter provisions, bylaw, contract, arrangement, distributed to association members and to employed. statute, or regulation ' to be in effect after 'eligible account holders. Item 9. Subscription warrants or rights. If conversion under which any director or of' Item 3. Proxy and information statement. subscription warrants or rights are to be em­ fleer of the converted association will be in­ Furnish preliminary copies of the proxy and ployed pursuant to the applicant’s plan of sured or indemnified in any manner against information statement to be distributed by conversion, give a complete and detailed de­ any liability which he may incur in his ca­ the applicant to association members and to scription of the operation and the feasibility pacity as such. eligible account holders. Attention is di­ of the use of such warrants or rights in ad­ Exhibits rected to § 563b.6(e) regarding additional dition to the information summarized in the requirements for filing of proxy solicitation proxy and information statement. The in­ The following exhibits shall be attached to materials. formation called for by this item should this form. explain fully how the applicant proposes to Exhibit 1. Resolution of Board of Direc­ Item 4. Form of proxy. Furnish preliminary tors. Set forth a certified copy or copies of a copies of the form of proxy to be distributed insure that fair value will be received by persons who do not exercise their warrants resolution or resolutions of the applicants to association members by the applicant’s board of directors (1) adopting the plan o management. or .rights.

ISTE?*, VOL. 33, MO. 7— THURSDAY, JANUARY 11, 1.773 PROPOSED RULE MAKfNG 1351

conversion filed with this application; (2) conversion is not substantially similar to Item 9. Description of the applicant’s plan authorizing the filing of this application; plans of conversion which have received of conversion. and (3) applying for continued insurance favorable rulings. The Corporation may also Item 10. Description of capital stock. of accounts by the Federal Savings and require that such a ruling be obtained if the Item 11. Opposition to the plan of conver­ Loan insurance Corporation and continued applicant's plan of conversion contains novel sion. membership in the appropriate Federal provisions or there is otherwise a question Item 12. Capitalization. Home Loan Bank. The action adopting the as to the Federal income tax consequences of Item 13. Use of proceeds. plan of conversion and authorizing the fil­ the plan. Item 14. Options, warrants or rights. ing of this application must be approved by (b) Furnish an opinion of the applicant’sItem 15. New charter, bylaws or other docu­ two-thirds of the applicant’s board of tax advisor as to any tax consequences of ments. directors. the plan of conversion under the laws of the Item 16. Other matters. Exhibit 2. Copies of documents, contracts State in which the applicant will be char­ Item 17. Financial statements. and agreements. Furnish the following doc­ tered upon conversion. Such opinion should Item 18. Consents of experts and reports. uments, contracts and agreements: (a) Pro­ relate to the applicant, to eligible account Item 19. Attachments. posed capital stock certificates to be issued; holders, and to such association members who (b) proposed order forms, and the sub­ may have rights under such plan. F orm PS scription warrants and rights; (c) proposed Exhibit 5. Appraisal materials. Furnish the charter and bylaws of the applicant to take materials required by § 563b.9(g) regarding INFORMATION REQUIRED IN CONVERSION PROXY effect upon conversion; (d) any proposed appraisal of the applicant. AND INFORMATION STATEMENT stock option plan and form of option, any Exhibit 6. Notice to members prior to fil­ proposed stock purchase plan and form of ing. Furnish the notice to the applicant’s Note: A. Except as otherwise specifically agreement, and any proposed management members required by § 563b.4(b) (2). provided, where any item calls for informa­ employment contracts; (e) any contract de­ Exhibit 7. Statement as to account bal­ tion for a specified period in regard to di­ scribed in response to Item 7(e) of Form PS; ances of management. Attach a statement by rectors, officers or other persons holding (f) the agreements executed pursuant to an independent public accountant that he specified positions or relationships, the in­ §563b.5(h); (g) contracts or agreements has reviewed the information furnished pur­ formation shall be given in regard to any with paid solicitors described in response to suant to Item 7 of this Form relating to person who held any of the specified posi­ Item 3(b) of Form PS; (h) any material account balances of officers, directors, employ­ tions or relationships at any time during the loan agreements relating to borrowings by ees and their associates and the procedures period. However, information need not be in­ the applicant other than from a Federal followed to obtain that information, and cluded for any portion of the period during Home Loan Bank and other than subor­ that, based on such review, he is aware of which such person did not hold any such dinated debt securities approved by the Cor­ no reason to believe that the information position or relationship provided a statement poration; (i) proposed underwriting con­ furnished was misleading. to that effect is made. tracts and agreements among underwriters;' Exhibit 8. Other materials, (a) If informa­ Item 1. Notice of meeting. The cover page (J) any contracts or agreements among the tion required by an appropriate form is not of the proxy and information statement shall members of the group or syndicate regard­ given for the reasons specified in § 563b.3(h), give notice of the meeting of the association ing the purchase of the applicant’s securities furnish the statement required for each such members called by the board of directors to described in response to Item 9(g) of Form omission by § 653b.3(h) (2). act upon the conversion. The cover page shall PS; and (k) any documents referred to in the (b) Furnish all consents required to be include the date, time, and place of the meet­ answer to Item 11 of this form. Documents, filed by § 563b.3 (n) and (o ). ing, a brief description of each matter to be contracts, and agreements which are fur­ (c) If applicable, furnish the statement acted upon at the meeting, the date of record nished in proposed form pursuant to this required by the Instruction to Item 6(e) of for association members entitled to vote at item, shall be furnished in final form prior Form PS regarding events which occurred the meeting, the date of the statement, and to final approval by the Corporation. within the last ten years to directors of the the full address, zip code and telephone num­ Exhibit 3. Opinions of Counsel. Furnish applicant. ber of the applicant. opinions by counsel for the applicant re­ Item 2. Revocability of proxy. State that garding each of the following matters: (a) (d) If information required by Item 17(h) of Form PS relating to historical financial the person giving the proxy has the power to The legal sufficiency of the applicant’s pro­ revoke it before the proxy is exercised at the posed capital stock certificates, order forms, information is omitted, furnish the state­ ment required by Item 17(h) (1) of Form PS. meeting. If the right of revocation is subject and subscription warrants and rights, (b) to compliance with any formal procedure, State law requirements applicable to the ap­ (e) Furnish any powers of attorney em­ briefly describe such procedure. Briefly de­ plicant’s plan of conversion including cita­ ployed pursuant to § 563b.3(c) (3). scribe any charter or State law requirement tions to applicable State law and whether (f) Furnish the cross reference sheet otherwise restricting voting by proxy. State such requirements will be fulfilled by the referred to in § 563b.3 (e). that the proxy is solicited for that meeting, plan, (c) the legal sufficiency of the appli­ and any adjournment thereof, and will not F orm PS cant’s proposed charter and bylaws, (d) the be used for any other meeting. (See also effect of any State escheat law or other ap­ [Facing Sheet] § 563b.6(d) (3).) plicable law on securities or cash distribu­ tions to eligible account holders who cannot FEDERAL HOME LOAN BANK BOARD Item 3. Persons making the solicitation. he located by the applicant, (e) the type and (a) State whether the solicitation is made by Federal Savings and Loan Insurance the management of the applicant. Give the extent of each class of voting rights in the Corporation applicant after conversion, including any re­ name of any director of the applicant who quirement of State law that savings account Washington, D.C. 20552 has informed the management in writing that he intends to oppose any action intended holders or borrowers have voting rights in Proxy and Information Statement the converted institution, and (f) the le­ to be taken by the management and indicate gality and Federal income tax effect to the the action which he intends to oppose. applicant of any proposed stock option plan (Exact name of Applicant as specified in (b) If the solicitation is to be made other­ , T.00,1 purchase plan described in response charter) wise than by the use of the mails, describe to Item 14 of Form PS. the methods to be employed. If the solicita­ tion is to be made by specially engaged em­ 4- Federal and State tax opinions (Street address of applicant) •^rulings, (a) Furnish an opinion of the ployees or paid solicitors, state the material applicant s tax advisor as to the Federal in- features of any contract or arrangement for come tax consequences of the applicant’s plan (City, State and Zip Code) such solicitation and identify the parties. coivn?vfrfi°n to the aPPHcaut. to eligible ac- (c) If the solicitation is made otherwise v... holders, .and to such association mem- Proxy and I n form ation Statement F orm than by the management of the applicant, who may have rights under such plan. INDEX TO ITEMS so state and give the names of the persons by whom and on whose behalf it is made. 1> The applicant should obtain Item 1. Notice of meeting. tirm income tax opinion prior to adop- Any such solicitation normally need not re­ Item 2. Revocability of proxy. spond to items 6 through 19, but must in­ ofdirectors Plan °f conversion by the board Item 3. Persons making solicitation. clude such information as to make such Item 4. Voting rights and vote required for solicitations comply with § 563b.6(g) (1). ann’nÜ16! c °rP°ration recommends that al approval. Item 4. Voting rights and vote required for ment oftTv°btain a ruling from the depart Item 5. Expenses incident to the conversion. approval, (a) Describe briefly the voting reeardtn»1^ ? 81117 Internal Revenue Servio Item 6. Directors and Executive Officers. rights of each class of association members. quences o f 6 Pederal income tax conse Item 7. Remuneration and other transac­ State the approximate total number of votes The 2*5 applicant’s plan of conversion tions with management and entitled to be cast at the meeting, and the r a i i n ? K f f ? 11 mfty require that such , others. g be obtained if the applicant’s plan o approximate number of votes to which each Item 8. Business of the applicant. class is entitled.

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1352 PROPOSED RULE MAKING

(b) As part of the description give the (e) Describe any of the following events (b) Furnish the following information in which occurred during the past 10 years and substantially the tabular form indicated as date of record for association members en­ to all annuity, pension or retirement benefits titled to vote at the meeting. which are material to an evaluation of the (c) As to each matter which will be sub­ ability and integrity of any director of the proposed to be paid to the following persons mitted to a vote of association members, applicant: in the event of retirement at their normal state the vote required for its approval. (1) A petition under the Bankruptcy Act retirement dates pursuant to any existing Item 5. Expenses incident to the conver­ or any state insolvency law was filed by or plan provided or contributed to by the appli- sion. (a) Provide in substantially the tabular against, or a receiver, fiscal agent or similar cant or any of its subsidiaries: form indicated below the estimated expense officer was appointed by a court for the busi­ (1) Each director or officer named in an­ of the conversion and the estimated expense ness or property of, such person, or any part­ swer to paragraph (a) (1), naming each such to the applicant of the public offering, if any, nership in which he was a general partner person. of the applicant’s securities incident to the at or within 2 years before the time of such (2) All directors and officers of the appli­ cant as a group, stating the number of per­ conversion: filing, or any corporation or business associa­ tion of which he was an executive officer at sons in the group without naming them. Allocable Allocable or within 2 years before the time of such to con- to public Total filing; (A) (B) (C) version offering (2) Such person was convicted in a crimi­ Nameofindi- Amount set aside Estimated annual nal proceeding or is the subject of a criminal vidual or num- or accrued benefits upon proceeding which is presently pending (ex­ Legal...... ber of persons during appli- retirement Postage and mailing...... cluding proceedings for traffic violations and in group cant’s last fiscal Printing...... other minor offenses); or year Escrow or agent fees...... (3) Such person was the subject of any Underwriting fees______order, Judgment, or decree of any court of Appraisal fees____------Transfer agent fees...... competent jurisdiction permanently or tem­ Auditing and accounting. porarily enjoining him from acting as an Proxy solicitation fees investment adviser, underwriter, broker or Advertising ...... dealer in securities, or as an affiliated person, Instructions. (1) The term "plan” in this Other expenses...... director or employee of any investment com­ paragraph and in paragraph (c) includes all Total______pany, bank or insurance company, or re­ plans, contracts, authorizations or arrang- moving him from office and/or prohibiting ments, whether or not set forth in any formal (b) State by whom the costs itemized him from further participation in any man­ document. above are to be borne, directly or indirectly. ner in the conduct of the affairs of an insured (2) Column (B) need not be answered If the solicitation is conducted other than by institution, or from engaging in or continu­ with respect to payments computed on an management of the applicant, the informa­ ing any conduct or practice in connection actuarial basis under any plan which provides tion required in paragraph (a) shall be lim­ with any such activity or in connection with for fixed benefits in the event of retirement ited to the cost of such solicitation. the purchase or sale of any security, or was at a specified number of years of service. In Instructions—T. As to paragraph (a), the the subject of any order of a Federal or State such case, Columns (A) and (C) need not applicant shall exclude costs represented by authority barring or suspending, for more be answered with respect to directors and salaries and wages of regular employees and than 60 days, the right of such person to be officers as a group. officers, and a statement to that effect shall engaged in any such activity, which order (3) The information called for by Column be included in the proxy statement. The cost has not been reversed or suspended. (C) may be given in the form of a table of solicitation by specially engaged employees Instruction. If any event specified in para­ showing the annual benefits payable upon or paid solicitors under paragraph (b) of graph (e) has occurred but information in retirement to persons in specified salary Item 3 shall be stated under “Proxy Solicita­ regard thereto is omitted on the ground that classifications. tion Pees” in paragraph (a) of this item. it is not material, the applicant shall furnish, (4) In the case of any plan (other than 2. If the applicant has any category of ex­ as supplemental information and not as a those specified in Instruction (2) where the I pense exceeding $10,000 which is not specified part of the statement the reasons for the amount set aside each year depends upon in paragraph (a), such expense shall be omission of information in regard thereto. the amount of earnings of the applicant or itemized rather than including it under the (f) State whether control of the applicant its subsidiaries for such year or a prior year, category “ Other Expenses.” has been exercised through the use of proxies or where it is otherwise impracticable to Item 6. Directors and Executive Officers. and the nature of such control. state the estimated benefits upon retirement, (a) List the names and ages of all directors Item 7. Remuneration and other transac­ there shall be set forth, in lieu of the infor­ of the applicant, indicate all positions and tions with management and others. Note: mation called for by Column (C ), the aggre­ offices with the applicant held by each such Refer to Note 2 of Item 17 of this form. gate amount set aside or accrued to date, person, state his term of office as director and (a) Furnish the following information inunless it is impracticable to do so, in which the period during which he has served as substantially the tabular form indicated case there shall be stated the method of com­ such and briefly describe any arrangement or below as to all direct remuneration paid by understanding between him and any other the applicant and its subsidiaries during the puting such benefits. person pursuant to which he was selected as applicant’s last fiscal year to the following (c) Describe briefly all remuneration pay­ ments (other than payments reported in (a) a director. persons for services in all capacities: (1) Each director of the applicant whose or (b) of this Item) proposed to be made (b) List the names and ages of all execu­ in the future, directly or indirectly, by the tive officers of the applicant and indicate all aggregate direct remuneration exceeded $30,- 000, and each of the three highest paid offi­ applicant or any of its subsidiaries pursuant I positions and offices held with the applicant to any existing plan or arrangement to (1) by each such person. cers of the applicant whose aggregate direct remuneration exceeded that amount, naming each director or officer named in answer to Instruction. The term “executive officer” paragraph (a) (1), naming each such person, means the president, vice president, secre­ each such director and officer. (2) All directors and officers of the appli­ and (ii) all directors and officers of the appli- i tary, treasurer, controller, principal account­ cant as a group without naming them. ing officer, any officer in charge of a principal cant as a group, stating the number of per­ loaning or savings function, and any other sons in the group without naming them. Instruction. Information need not be m- I officer or person who performs similar policy eluded as to payments to be made for, or benefits to be received from, group life I making functions for the applicant. (A) (B) (Cl accident insurance, group hospitalization or (c) State the nature of any family rela­ Name of individual Capacities in Aggregate similar group payments or benefits. If, « “ tionship between any director or executive or number of per- which remunera- direct impracticable to state the amount set asiae sons in group tion was received remuneration officer and any other director or executive or accrued to date in respect of such pay­ officer. ments shall be stated, together with an ex­ Instruction. The term “family relation­ planation of the basis for future payments. ship” means any relationship, by blood, mar­ (d) State as to each of the follow ing per­ riage, or adoption, not more remote than first sons who was indebted to the applicant or cousin. subsidiaries at any time during the last (d) Give a brief account of the business Instructions. (1) The information is to be given on an accrual basis if practicable. The years, (i) the largest aggregate amount w experience during the past 5 years of each indebtedness and the nature of the tran- director and each executive officer, including tables required by this paragraphs (a) and (b) below may be combined if the applicant action in which it was incurred, (M JZ his principal occupations and employments amount thereof outstanding as of the large during that period and the name and prin­ so desires. practicable date, and (iii) the annual P® cipal business of any corporation or other (2) Do not include remuneration paid to a partnership to which any director or officer centage rate paid or charged thereon l organization in which such occupations and computed under 12 CFR Part 226); employments were carried on, was a partner, but see paragraph (e) below.

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 PROPOSED RULE MAKING 1353

(1) Bach director and officer of the appli­ interest in a transaction within the meaning applicant was organized and whether its cant; and of this Item 7(e) where— present charter was issued by the State or (2) Any relative or spouse of any of the (a) The interest arises only (i) from such Federal Government. Describe briefly any foregoing persons, or any relative of such person’s position as a director of another previous conversion of the applicant. spouse, who has the same home as such per­ corporation or organization (other than a (b) Selected statement of financial condi­ son or who is a director or officer of any sub­ partnership) which is a party to the transac­ tion and other items. As of the end of each sidiary of the applicant. tion, or (ii) from the direct or indirect of the periods covered by the statements of instructions. (1) Include the name of each ownership by such person and all other per­ operations required by item 17(b) (1) and as person whose indebtedness is described and sons specified in subparagraphs (1) and (2) of the date of the latest statement of finan­ the nature of the relationship by reason of of paragraph (e ), above, in the aggregate, of cial condition required by item 17(a), set which the information is required to be less than a 10 percent equity interest in forth in tabular form the amounts of the given. another person (other than a partnership) following items: (1) total assets, (2) real (2) This paragraph does not apply to which is a party to the transaction, or (iii) estate loans outstanding, (3) savings ac­ amounts due a person for ordinary travel and from both such position and ownership; counts, (4) advances from the Federal Home expense advances and similar transactions. (b) The interest of such person arises Loan Bank, (5) other borrowed money, if (3) If the loans to such persons (a) are solely from the holding of an equity interest material, (6) net worth and (7) number of secured by a first lien on a single-family (including a limited partnership interest but offices indicating any which are less than full dwelling owned and occupied by a director excluding a general partnership interest) or service. The applicant may use other sub­ or officer of the applicant at the time of mak­ a creditor interest in another person which stantially similar captions, and may include ing the loan and such loan at such time did is a party to the transaction with the appli­ other items such as number of real estate not exceed the amount then specified in sec­ cant or any of its subsidiaries and the trans­ loans outstanding and number of savings tion 5(c) of the Home Owners’ Loan Act of action is not material to such other person. accounts. 1933, as amended, with respect to single- 4. The amount of the interest of any spec­ (c) Mergers and acquisitions. Indicate in family dwellings if applicable or (b) are ified person shall be computed without re­ tabular form, any mergers, bulk purchase of fully secured by a savings account, and if the gard to the amount of the profit or loss in­ assets and similar acquisitions which have lender is the applicant, such disclosure may volved in the transaction. Where it is not occurred in the periods covered by statements consist of a statement, if such is the case, practicable to state the approximate amount of operations required by item 17(b). With that the loans to such persons (i) were made of the interest, the approximate amount in­ respect to each such acquisition, give names in the ordinary course 6f business, (ii) were volved in the transaction shall be indicated. of the association involved, its location, its made on substantially the same terms, in­ 5. In describing any transaction involving total assets immediately prior to such acqui­ cluding interest rates and collateral, as those the purchase or sale of the assets to the pur­ sition, the number of offices acquired, the prevailing at the time for comparable trans­ chaser and, if acquired by the seller within method of accounting for such acquisition, actions with other persons, and (iii) did not 2 years prior to the transaction, the cost and any excess of cost over the net assets involve more than normal risk of collectibil­ thereof to the seller. acquired (goodwill) included in the latest ity or present other unfavorable features. 6. The foregoing instructions specify cer­ balance sheet. The information provided in (4) Computation of the annual percentage tain transactions and interests as to which this section should be referenced to any ap­ rate under paragraph (d) (iii) is to be done information may be omitted in answering propriate notes to the financial statements as though 12 CFR Part 226 was applicable to paragraph (e) of this item. There may be required by item 17. the transaction. situations where, although the foregoing in­ (d) Lending activities. (1) Describe briefly (è) Describe briefly any transactions dur­ structions do not expressly authorize non­ applicable regulations (both State and Fed­ ing or since the applicant’s last 3 fiscal years disclosure, the interest of a specified person eral) on the lending activities of the appli­ or any proposed transactions, to which the in the particular transaction or series of cant including any applicable State usury applicant or any of its subsidiaries was or is transactions is not a material interest. In laws or any other Federal or State laws to be a party, in which any of the following that case, information regarding such inter­ affecting mortgage loan interest rates. De­ persons had or is to have a direct or indirect est and transaction is not required to be dis­ scribe the applicant’s general policy concern­ material interest, naming such person and closed in response to this item. ing loan to value ratios. Describe briefly the stating his relationship to the applicant, the (f) Describe briefly any transactions during applicant’s customary methods of obtaining nature of his interest in the transaction and, or since the applicant’s last 3 fiscal years loan originations such as the use of loan con­ where practicable, the amount of such or any presently proposed transactions, to sultants and approval of security properties interest: which any pension, retirement or similar and use of a loan committee, if any. Describe (1) Any director or officer of the applicant; plan provided by the applicant or any of its briefly the applicant’s policies as to requiring (2) Any relative or spouse of any of the subsidiaries, was or is to be a party, in which title insurance and fire and casualty insur­ foregoing persons, or any relative of such any of the following persons had or is to ance on security properties. spouse, who has the same home as such per­ have a direct or indirect material interest, (2) As of the end of the periods covered son or who is a director or officer of any sub­ naming such person and stating his relation­ by the statements of operations required by sidiary of the applicant. ship to the applicant, the nature of his in­ item 17(b)(1) and as of the date of the Instructions. 1. No information need be terest in the transaction and, where prac­ latest statement of financial condition re­ given in response to this Item 7(e) as to any ticable, the amount of such interest: quired by item 17(a), set forth in tabular remuneration or other transaction reported (1) Any director or officer of the applicant; form the amount and percentage of the loan in response to Item 7 (a), (b), (c), or (d), (2) Any relative or spouse of any of the portfolio of the applicant (i) by type of loan or as to any transaction with respect to foregoing persons, or any relative of such and (ii) by type of security. which information may be omitted pursuant spouse, who has the same home as such Instructions. 1. For the classification re­ to instructions relating to such Items. person or who is a director or officer of any quired by subparagraph (2) (i) , separate types 2. No information need be given in answersubsidiary of the applicant; or of loans into real estate loans and loans for to this Item 7(e) as to any transaction (3) The applicant or any of its subsidi­ other purposes. Also, separate real estate where— aries. loans into conventional loans and FHA-VA (a) The amount involved in the transac­ Instructions. 1. Instructions 2, 3, 4, and 5 loans, and conventional loans shall be sep­ tion or a series of similar transactions, in­ to Item 7(e) shall apply to this Item 7(f). arated into loans for construction, loans on cluding all periodic installments in the case 2. Without limiting the general meaning existing property and loans refinanced. of any lease or other agreement providing of the term “ transaction” there shall be in­ 2. For the classification required by sub- for periodic payments or installments, does cluded in answer to this Item 7(f) any re­ paragraph (2) (ii), type of security shall be not exceed $30,000; or muneration received or any loans received separated into residential and other types. or outstanding during the period, or proposed Residential loans shall be separated into (b) The interest of the specified person to be received. single-family dwellings, two-to-four family arises solely from the ownership of savings 3. No information need be given in answer dwellings, and other dwelling units. Also, accounts of the applicant and the specified to this paragraph (f) with respect to— indicate any material classification of other person receives no extra or special benefit (a) Payments to the plan, or payments to loans such as mobile home loans, home im­ not shared on a pro rata basis by all savings beneficiaries, pursuant to the terms of the provement loans, home equipping loans, account holders as a class. plan; passbook loans, commercial or industrial fiwNJiÜl sk°ul(* be noted that this Item calls (b) Payment of remuneration for services loans, and undeveloped land loans. r disclosure of indirect, as well as direct, not in excess of 5 percent of the aggregate 3. For each of the periods covered by the . ferial interests in transactions. A person remuneration received by the specified per­ statements of operations required by item , ° “ as a position or relationship with a son during the applicant’s last fiscal year 17(b), set forth in tabular form the amount ’ ^rporation, or other entity, which en- from the applicant and its subsidiaries; or for each period of (i) loans originated, (ii) fto a transaction with the applicant or (c) Any interest of the applicant or any loans purchased, (iii) loans sold, and (iv) in cu~~c^ai’ies may have an indirect interest of its subsidiaries which arises solely from total net loan activity. Also describe briefly transaction by reason of such posi- its general interest in the success of the plan. the applicant’s total activity as of the date hA H°r rela,ti°nship. However, a person shall Item 8. Business of the applicant— (a) of the latest statement of financial condition eemed not to have a material indirect Organisation. State the year in which the required by item 17(a), and the applicant’s

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1354 PROPOSED RULE MAKING intended future activities in secondary mort­ (7) As of the end of each of the periods the applicant’s position with respect to those gage markets including transactions with the covered by the statements of operations re­ requirements. quired by Item 17(b) (1) and as of the date (h) State Savings and Loan Association Federal Home Loan Mortgage Corporation, Law. Describe briefly applicable provisions of the Federal National Mortgage Association, or of the latest statement of financial condi­ tion required by Item 17(a), set forth in State law which have a material effect on mortgage bankers. If significant, indicate the business of the applicant. loan service fee income as a percentage of tabular form loan origination fees charged to borrowers expressed as a percentage of the (i) Federal and State taxation. Describe gross income for the year ended as of the briefly the Federal income tax laws appli­ latest statement of financial condition re­ total amount of loans originated. (8) Describe briefly the applicant’s method cable to the applicant including (1) permis­ quired by item 17(a). sible bad debt reserves, (2) the applicant’s Instructions. 1. For the classification re­ of loan origination fee and discount amor­ tization and the total of such balances de­ position with respect to the maximum bad quired by subparagraph (3 )(i), loans orig­ debt reserve limitations as of the date of inated shall be separated into real estate ferred by the applicant as of the date of the latest statement of financial condition re­ the latest statement of financial condition loans, loans for other purposes, and total required under Item 17(a), (3) future in­ loans originated. Real estate loans shall be quired by Item 17(a). Describe briefly the volatile nature of loan fee income. creases in the effective income tax rate, (4) further separated into conventional loans and the date through which the applicant’s Fed­ FHA-VA loans, and conventional loans shall (9) Describe briefly the regulatory classifi­ cations of scheduled items and the appli­ eral income tax returns have been audited be separated into loans for construction, by the Internal Revenue Service, and (5) loans on existing property, and loans cant’s customary procedures regarding delinquent loans. As of the end of each of the tax effect to the applicant of the pay­ refinanced. ment of cash dividends on capital stock of 2. For the classification required by sub- the periods covered by the statements of operations required by Item 17(b)(1) the applicant after conversion. Also describe paragraph (3) (ii), loans purchased shall be briefly the State taxation of the applicant. separated into real estate loans, loans for and as of the date of the latest statement of financial condition required by Item 17 (a ), (j) Competition. Describe the material other purposes, and total loans purchased. sources of competition for savings and loan Real estate loans shall be further separated set forth in tabular form the amounts and categories (slow loans, real estate owned, associations generally and indicate to the into conventional loans and FHA-VA loans. extent practicable the applicant’s position 3. For the classification required by sub- loans to facilitate, and others) of scheduled items and the ratio of such scheduled items in its princpal lending and savings markets. paragraph (3) (iii), loans sold shall be (k) Office and other material properties. separated into whole loans, participation to specified assets and to total assets. Where real estate owned is a significant portion of (1) Furnish the location of the applicant’s loans, and total loans sold. home office and each existing and approved 4. For the classification required by sub- scheduled items, include a brief description of the major properties included therein and branch office and other office facilities (such paragraph (3) (iv), total net loan activity as mobile or satellite offices). State the total ¡gftfvP be equal to total loans originated plus a statement as to the applicant’s probable loss, if any, upon disposition of such proper­ net book value of all such offices as of the total loans purchased minus total loans date of the latest statement of financial con­ ties. sold. (e) Savings activities. (1) As of the datedition required by Item 17(a). If any such (4) As to the lending area of the applicant, office is leased, state the expiration dates of describe briefly (i) the lending area restric­ of the latest statement of financial condi­ tion required by Item 17(a), set forth in such leases. tions applicable to the applicant, (ii) the (2) Describe briefly undeveloped land areas in which the applicant normally lends tabular form the "amounts and percentages of savings accounts by categories of interest owned by the applicant, including location, and areas in which it has a policy not to net book value, and prospective use and lend, and (iii) any material loan concentra­ rate. As to certificates of deposit, indicate the term and minimum balances required holding period. If the applicant or a subsidi­ tion areas of the applicant. Such descriptions ary owns or leases electronic data processing may include a map illustrating one or more for each. As of the date of the latest state­ equipment principally for its own use, de­ of these areas. Furnish an estimate of the ment of financial condition required by Item scribe briefly such equipment indicating net housing vacancy rates in areas where the 17(a) , also set forth in tabular form the book value if owned or the principal lease applicant’s loan concentrations are located, amounts of such certificates maturing by quarter for each of the subsequent five terms if leased. if practicable. (l) Employees. State the number of per* (5) Describe briefly the general long term quarters and the total maturing thereafter, sons employed fulltime by the applicant in­ nature of investment in mortgage loans and the percentage of such amounts to total cluding executive officers listed under Item the consequent effect upon the earnings savings. 6. State whether employes are represented spread of savings and loan associations. State (2) Describe the applicant’s methods of by a collective bargaining group and whether the normal maturity of loans made by the computing and paying interest for both pass­ the applicant’s relations with its employees applicant on the security of single-family book savings accounts and certificates of de­ is satisfactory. Describe briefly any loans, dwellings and furnish an estimate as to the posit. State that the maximum rate of inter­ profit sharing, retirement, medical, hospital!* est which the applicant may pay is estab­ zation or other remuneration plans provided average length of time such loans are out­ lished by the Board. State that in the event standing. , for employees not already included pur­ of liquidation of the applicant after conver­ suant to Item 7. (6) As of the end of each of the periods sion, savings account holders will be en­ covered by the statements of operations re­ (m) Service corporations. Describe briefly titled to full payment of their accounts prior the applicant’s investment in any subsidiary quired by Item 17(b) (1) and as of the date to payment to stockholders. Also, indicate of the latest statement of financial condi­ and the major lines of business (including the percentage of total savings accounts any joint ventures) of the subsidiary which tion required by Item 17(a), set forth ifi which are from out-of-state sources, if such tabular form, excluding origination fees, dis­ are material to its operations. total is significant. (n) Pending legal proceedings. Briefly counts and premiums on real estate loans (f) Insurance of accounts. (1) Describe originated, the following: (i) weighted aver­ describe any material pending legal pro­ briefly insurance of accounts and the gen­ ceedings, other than ordinary routine liti­ age of return on loans originated and pur­ eral regulatory authority of the Corpora­ chased during each period, (ii) weighted gation incidental to the business, to which average rate of return on loans held at the tion. the applicant or any of its subsidiaries end of each period, (iii) weighted average (2) Describe the Federal insurance reserve is a party or of which any of their prop­ interest cost of savings at the end of each requirements, the results of failure to meet erty is the subject. Include the name of period, (iv) weighted average interest cost those requirements, and the applicant’s. Fed­ the court or agency in which the proceed­ of Federal Home Loan Bank advances and eral insurance reserve account position in re­ ings are pending, the date instituted, the other borrowings during the period, (v) total lation to those requirements. Also describe principal parties thereto, a description of weighted average interest cost of savings the annual insurance premium payment and the factual basis alleged to underly the and borrowings for the period (the total of prepayment requirements. proceeding and the relief sought. Include (iii) and (iv )), and (vi) the gross margin (g) Federal Home Loan Bank System. (1) similar information as to any such proceed­ * ( (ii) minus (v) ). Describe briefly the Federal Home Loan Bank ings known to be contemplated by govern­ Instruction. As an example of the calcula­ System and state that the applicant is a mental authorities. tion of the weighted average rate, the fol­ member. Such description shall include (i) (o) Additional information. The Corpora­ lowing method should be used to calculate limitations on borrowings, (ii) recent loan tion may, upon the request of the appli' the weighted average interest rate on savings: policies of the applicant’s Federal Home cant, and where consistent with the protec­ 1. Determine the percentage of total sav­ Loan Bank and current interest rates, and tion of eligible account holders and others, ings represented by each type of savings in­ (iii) Federal Home Loan Bank stock pur­ permit the omission of any of the informa­ strument, chase requirements and the applicant’s po­ tion required by this item or the furnishing 2. Multiply these percentages by the con­ sition with respect to those requirements. in substitution therefor of appropriate in­ tractual interest rate the applicant is com­ (2) Describe briefly applicable liquidity re­ formation of comparable character. The mitted to pay on such instruments. quirements under section 5A of the Fed­ Corporation may also require the funishing 3. The resulting percentages áre then eral Home Loan Bank Act, as amended, the of other information in addition to, or totaled, giving the weighted rate. regulations thereunder, and State law. State in substitution for, the information required

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 PROPOSED RULE MAKING 1355

by this Item in any case where such infor­ dredths, etc.), that fractional shares will not (3) State the number of shares to be al­ mation is necessary or appropriate for an be Issued, and what provision will be made located to all directors and officers of the adequate description of the applicant’s busi­ for disposition of fractional share interests applicant as a group, stating the number of ness done or intended to be done. on behalf of . eligible account holders, (ii) persons in the group without naming them. Item 9. Description of the applicant’s plan state the minimum number of shares which of conversion, (a) The following statement will be issued and describe the provision un­ (A) (B) (C) phaii be inserted in the proxy and informa­ der which eligible account holders will be tion statement immediately preceding the entitled to purchase additional shares to Name of individual Positions held Total shares to information required by this item: “ The reach the minimum, or to sell allocated or number of per- in association be allocated Federal Home Loan Bank Board (FHLBB) shares less than the minimum, and (iii) fur­ sons in group has given preliminary approval to this plan nish an example of the computation of the of conversion. However, the FHLBB pre­ capital stock entitlement to a hypothetical liminary approval does not constitute a rec­ eligible account holder. ommendation or endorsement of this plan. (4) If rights or warrants to purchase capi­ Final approval of this plan will not be given tal stock are to be distributed, or are to be Item 10. Description of capital stock. Fur­ by the FHLBB unless at least two-thirds of distributable, to eligible account holders, (i) nish the following information concerning the outstanding votes of the association’s furnish the information called for by sub-, the capital stock of the applicant to be is­ members are cast for this plan.” paragraph (3) above, (ii) describe in detail sued upon conversion: (b) The proxy and information statement the nature of such rights or warrants in­ (a) Outline briefly (1) dividend rights and shall contain a description of the applicant’s cluding such matters as transferability and plan of conversion. Such description shall restrictions; (2) voting rights; (3) liquida­ expiration, (iii) state the price at which the tion rights; (4) preemptive rights; (5) liabil­ contain the Information required by para­ rights or warrants may be exercised, and (iv) graphs (c) through (h) of this Item and ity to further calls or to assessment by the describe briefly the reasons for using rights applicant; and (6) other material provisions. such additional information as may be nec­ or warrants. essary to accurately describe the material (b) If the rights of holders of such capital (5) In addition to the information fur­ stock may be modified otherwise than by a provisions of the plan. nished under paragraph (d), (1) describe (c) Briefly describe the effects of conver­ vote of a majority or more of the capital briefly the use of the order forms which are stock outstanding, voting as a class, so state sion from a mutual association to a stock enclosed with the proxy and information association including the following informa­ and explain briefly. statement or which will be mailed to eligible (c) Outline briefly any restrictions on the tion: (1) Describe the ownership interest of account holders at a later date, (2) describe a savings member of a mutual association repurchase or redemption of capital stock, to the extent practicable present manage­ or any part thereof, by the applicant. and state that the purpose of the plan is to ment intentions with respect to listing the preserve that ownership interest on an equi­ Instructions. 1. This, item requires only a capital stock on an exchange or otherwise brief summary of the provisions which are table basis in conjunction with converting providing a market for the purchase and the applicant to a stock institution; (2) pertinent from an investment standpoint. A sale of the capital stock in the future, (3) complete legal description of the provisions state that savings accounts of the applicant describe briefly the tax effect of the con­ will not be affected by the conversion with referred to is not required and should not version both to the applicant and to eligible be given. Do not set forth the provisions of respect to such matters as balances in the account holders, and (4) state that the plan accounts and the extent of FSLIC insurance the governing instruments verbatim; only a of conversion as approved by the Corpora­ succinct resume is required. of savings accounts; (3) state whether sav­ tion is attached as an exhibit to the proxy ings and borrowing members of the appli­ 2. If the rights evidenced by the capital and information statement and should be stock will be materially limited or qualified cant will continue to have voting rights in consulted for further information. the applicant after conversion, and describe by the rights of savings account holders or (f) If the applicant proposes at or shortly borrowers, include such information re­ the voting rights they will have; (4) state after the time of conversion to issue capital that the rights and obligations of borrow­ garding such limitation or qualification as stock in addition to the capital stock repre­ will enable investors to understand the ers from the applicant will not be changed senting the ownership interest of eligible in any manner; (5) state that capital stock rights evidenced by the capital stock. account holders, (1) state the number of ad­ Item 11. Opposition to the plan of con­ issued by the applicant will not be insured ditional shares which will be offered and by the Corporation; (6) state that none of version. (a,) If any association member fur­ state the expected price or price range of nishes to the applicant within 10 days after the assets of the applicant will be distributed such additional shares or how that price in order to effect the conversion other than publication of notice of filing for preliminary will be determined, (2) state whether such approval under §563b.4(c) a statement in to pay expenses incident thereto; (7) state additional capital stock will be offered on a briefly the reasons why management is rec­ opposition to the applicant’s plan of conver­ preferential basis to eligible account holders sion, or any part thereof, the applicant, upon ommending the conversion, including any and other members, and describe the terms advantages to the community served by the the written request of the association mem­ applicant. of the offer, and (3) describe the dilution ber, shall Include such statement in its proxy of the ownership interest of eligible ac­ (d) With respect to the determination, and information statement. Any statement count holders as a result of issuing such in opposition so included by the applicant valuation and distribution of the ownership additional shares. of eligible account holders, furnish the fol­ need not be longer than 100 words exclusive lowing information: (g) If in connection with making a mar­ of the name and address of the associa­ (1) State (i) the record date(s) or record ket for capital stock, rights, or warrants to tion member or members who furnished such period(s) for determining the savings ac- be distributed, or for additional capital statement. count holders eligible to receive a distribu­ stock, directors and officers of the applicant (b) The proxy and information statement tion of the ownership interest, and (ii) the. and their associates, intend to purchase as a shall either include the name and address of formula used to determine the pro-rata group or individually more than 5 percent of the association member who submitted the ownership interest for each eligible account the total capital stock to be outstanding, statement in opposition or state that such holder. state the price per share that will be paid information will be furnished by the appli­ (2) As to the valuation of the ownership and set forth in tabular form the name of cant, orally or in writing as requested, interest of eligible account holders, (i) de­ each such purchaser, his position or relation­ promptly upon receipt of any oral or writ­ scribe briefly the results of the appraisal of ship with the applicant, and the number of ten request therefor. If the name and address ne association made by an independent ap­ shares he intends to purchase. is omitted from the proxy and Information praiser, (U) as of the end of each of the pe- (h) Furnish the following information in statement, it shall be furnished to the Cor­ ods covered by the profit and loss state- substantially the tabular form indicated be­ poration at the time of filing the preliminary ments required by Item 17(b) (1) and as of low as to capital stock representing the proxy and information statement with the ownership interest of eligible accounthold- appropriate application for preliminary ap­ . aate the latest balance sheet required proval, or as an amendment thereto. Item VT(a), set forth in tabular form ers to be allocated to the directors and of­ ®!*rnlngs per share of capital stock rep- ficers of the applicant, in their capacities as (c) (i) The applicant shall not include in esenting the ownership interest of eligible eligible accountholders, under the plan of its proxy and information statement any conversion: statement in opposition which, if imple­ inn holders on a pro-forma basis, and mented, would have the result of causing the «¡ho!*68 oi ^he date of the latest balance (1) As to each director and officer named applicant’s plan of conversion to violate any vaw required fey Item 17(a), state the book in Item 7(a )(1), name him, state his posi­ Î 6 Per share of capital stock representing applicable State or Federal law or regulation, tion, and state the number of shares al­ (ii) The applicant may omit any statement hnwi>WnerslliP hiterest of eligible account located to him. in opposition with the prior approval of the l/af a Pro-formA basis, (2) As to any director or officer not named Corporation, (iii) The applicant may com­ is ? caPital stock is to be distributed, or in Item 7(a)(1) but who will be allocated bine statements in opposition which are sub­ h0^ * J i8tribut*bl° ’ to eligible account 100 shares or more, name him, state his posi­ stantially similar. I , ers* " ) state to what extent fractional tion, and state the number of shares to be sres will be computed (i.e., tenths, hun­ (d) The applicant may set forth a response allocated to him. to any statement in opposition included in

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1356 PROPOSED RULE MAKING the proxy and information statement pursu­ information statement immediately after the tions and is used consistently. The Board un­ ant to paragraph (a) of this item, statements in opposition included pursuant derstands that this procedure is also accept­ (e) Neither the applicant nor its manage­to paragraph (a) of this item. able to the Securities and Exchange Com­ ment shall be responsible for any statement Item 12. Capitalization. Set forth in sub­ mission in fulfilling the requirements of the in opposition included in the proxy and in­ stantially the tabular form indicated below Commission’s Form 10 for registration of the formation statement, and a statement to that the dollar amounts of the capitalization of applicant’s capital stock under section 12(g) effect shall be set forth in the proxy and the applicant: of the Securities Exchange Act of 1934. (a) Statements of financial condition of (D) (E) the applicant. (1) Furnish a certified state­ (A) (B) (C) ment of financial condition as of the close of Capitalization Adjustments as Pro-forma Adjustments Capitalization the applicant’s latest fiscal year. (2) If the as of latest a result of capitalization for additional after issuance statement furnished under (1) iff in excess of balance sheet conversion after giving stock (if of additional 120 days from the date of filing for prelimi­ date effect to the applicable) stock (if conversion applicable) nary approval, furnish an additional state­ ment of financial condition as of a date within 120 days of such filing. This addi­ tional statement need not be certified. Subordinated debt Instruction. The capital section of the 3. statements of financial condition should give retroactive effect for the stock to be issued to eligible account holders in connection Federal insurance with the conversion, if practicable, with an 7. explanation of the financial statement im­ 8. Other reserves and plications of the plan in a separate footnote. (b) Statements of operations and state­ T t 1 ments of stockholders’ equity. Furnish in comparative columnar form statements of operations and statements of stockholders’ Instruction —With respect to capital stock, indicate in the table or in a footnote the total number of shares to be authorized, the par or stated value of such shares, the number of shares to be issued as part of the conversion and the equity of the applicant (1) for each of the number of additional shares, if any, to be issued. 5 fiscal years preceding the date of the state­ ment of financial condition filed under para­ Item 13. Use of proceeds. If in connection Instructions. 1. The term “plan” as used in this Item means any plan as defined in graph (a) and (2) for the period, if any, with the conversion the applicant will issue between the close of the latest of such fiscal securities for cash, state the principal pur­ Instruction 1 to Item 7(b). 2. Paragraphs (b) and (c) do not apply years and the date of the statement of fi­ poses for which the net proceeds to the ap­ nancial condition filed under paragraph (a). plicant from such securities are intended to to warrants or rights to be issued to stock­ holders of the converted association as such Furnish a statement of operations for the be used and the approximate amount for period comparable to (b)(2) in the imme­ each such purpose. on a prorata basis. 3. If the options described in answer to diately preceding fiscal year. Statements for Instruction. Details of proposed expendi­ the three latest fiscal years under (b)(1) tures are not to be given. There need be this Item are to be issued pursuant to a furnished, for example, only a brief state­ plan which is set forth in a written docu­ shall be certified. ment, three copies of such documents are to Instructions. 1. Reflect information or ex­ ment of any activity of the applicant which planation of material significance to inves­ will be affected materially by availability of be filed at the time the proxy statement and form of proxy are filed with the appropriate tors in appraising the results shown, or refer the proceeds. to such information or explanation set forth Item 14. OptionSi warrants, or rights. If form for preliminary approval. Item 15. New charter, bylaws or other elsewhere in the proxy and information action is to be taken with respect to the statement. Include comparable data for any granting to directors, officers and employees documents. Describe, briefly any material dif­ ferences between the provisions of existing additional fiscal years necessary to keep the of any options, warrants or rights to pur­ statements from being misleading. The state­ chase capital stock of the converted asso­ charter, bylaws and any similar documents of the applicant and those which will take ments shall reflect the retroactive adjust­ ciation to take effect after conversion, furnish ment of any material items affecting the the following information: effect after conversion. Instructions. This Item requires only a comparability of the results. (a) State (1) the title and amount of brief summary of the provisions which are 2. In connection with capital stock dis­ securities to be called for by such options, pertinent from both an investment stand­ tributable to the eligible account holders warrants or rights; (2) the prices, expira­ point and a voting standpoint. A complete pursuant to the plan of conversion, the tion dates, and other material conditions legal description of the provisions referred statements shall reflect earnings that would upon which the options, warrants or rights to is not required and should not be given. have been applicable to such outstanding may be exercised; (3) the consideration to Do not set forth the provisions verbatim; stock. be received by the converted association for only a succinct resume is required. (c) Statements of changes in financial po­ the granting of the options, warrants or Item 16. Other matters, (a) State condi­ sition. Furnish certified statements of rights; and (4) in the case of options, the tions under which the applicant will be re­ changes in financial position (1) for each of Federal income tax consequences of the is­ quired to register its capital stock under the the 3 fiscal years preceding the date of the suance and exercise of such options to the Securities Exchange Act of 1934, as amended, latest statement of financial condition filed recipient and to the converted, association. and that upon such registration the appli­ under paragraph (a) and (2) for the period, (b) State separately the amount of op­ cant will be subject to the proxy rules, in­ if any, between the close of the latest of such tions, warrants or rights to be received by sider trading restrictions, reporting, and fiscal years and the date of the latest state­ the following persons, naming each such other requirements of that Act. ment of financial condition filed under para­ person: (i) each directe«: or officer named in (b) Describe briefly the general terms and graph (a). ^ answer to Item 7(a); (2) each associate of (d) Omission of applicant’s statements m effect of the agreements executed by direc­ certain cases. Notwithstanding paragraphs such directors or officers; and (3) each other tors and officers of the applicant pursuant person who is to receive five percent or more to section 563b.5 (h ). (a), (b), and (c), the individual financial of such options, warrants or rights to be statements of the applicant may be omitted received by all directors and officers of the Instruction. The instruction to Item 15 if (1) the conditions specified in either of converted association as a group, without applies to paragraph (b) of this Item. the following paragraphs are met, and (2) naming them. Item 17. Financial statements. the Corporation is advised as to the reasons (c) Furnish such information, in addi­ No te : 1. The following instructions spec-' for such omission. tion to that required by Item 7, as may be ify the statements of financial condition, (1) The applicant is primarily an operat­ necessary to describe adequately the provi­ the statement of operations and statements ing company and all subsidiaries included sions already made pursuant to all bonus, of stockholders’ equity required to be in­ in the consolidated financial statements .filed profit sharin g, pension, retirement, deferred cluded in the proxy and information state­ are totally-held subsidiaries; or compensation or other remuneration or in­ ment. Section 563b.7 governs the certifica­ (2) The applicant’s total assets, exclusive centive plans, now in effect or in effect with­ tion, form and content of such financial of investments in and advances to the con­ in the past five years, for (i) each director statements including the basis of consolida­ solidated subsidiaries, constitute 85 percent or officer named in answer to Item 7(a) tion. or more of the total assets shown by the con­ who may participate in the plan to be acted 2. If the applicant has previously used an solidated statement of financial condition upon; (ii) all directors and officers of the audit period in connection with its certified filed and the applicant’s total gross revenues applicant as a group, if any director or offi­ financial statements which does not coincide for the period for which its statements of cer may participate in the plan, and (iii) with its fiscal year, such audit period may be operations would be filed, exclusive of inter­ all employees, if employees may participate used in place of any fiscal year requirement est and dividends received from the consoli­ dated -subsidiaries, constitute 85 percent or in the plan. provided it covers a full 12 months’ opera-

FEDERAL'REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 PROPOSED RULE MAKING 1357

more of the total gross revenue shown by the cession and the statement of financial con­ investments, in property, plant and equip­ consolidated statements of operations filed. dition of the applicant after giving effect to ment, or in intangible assets, resulting from (e) (1) Consolidated statements. Furnish the plan of succession. By a footnote or revaluing such assets, state: (a) In what consolidated statements for the same periods otherwise, a brief explanation of the changes year or years such revaluations were made; and as of the same dates as would be re­ shall be given. (b) the amounts of such increases or de­ quired for the applicant. These statements (iii) This subparagraph (1) shall not applycreases, and the accounts affected, including shall be certified as would be required for with respect to the applicant’s succession to all related entries; and (c) if in connection the applicant’s statements. (Paragraphs (a ), the business of any totally held subsidiary, with such revaluations any related adjust­ (b),and (c) above.) or to the acquisition of one or- more busi­ ments were made in reserve accounts, state (2) Unconsolidated subsidiaries and other nesses by purchase if such businesses, con­ the accounts and amounts with explanations. persons. Subject to § 563b.7(q) (2) regarding sidered in the aggregate as a single sub­ (li) Information is not required as to ad­ group statements of unconsolidated subsidi­ sidiary, would not constitute a significant justments made in the ordinary course of aries, there shall be set forth for each major­ subsidiary. business, but only as to major revaluations ity owned subsidiary of the applicant not (2) Acquisition of other businesses, (i) made for the purpose of entering on the books consolidated the financial statements which There shall be set forth for any business di­ current values, reproduction cost, or any would be required if the subsidiary were itself rectly or indirectly acquired by the applicant values other than original cost. an applicant. Insofar as practicable, these after the date of the statement of financial (iii) No information need be furnished financial statements shall be as of the same condition set forth pursuant to paragraph (a) with respect to any revaluation entry which dates or for the same periods as those of the and for any business to be directly or indi­ was subsequently reversed or with respect applicant. rectly acquired by the applicant, the finan­ to the reversal of a revaluation entry recorded (3) Fifty-percent-owned persons and other cial statements which would be required if prior to the period if a statement as to the persons. If the applicant owns directly or such business were an applicant. reversal is made. indirectly approximately 50 percent of the (ii) The acquisition of securities shall be (4) Other changes in surplus. If there were voting securities of any person and approxi­ deemed to be the acquisition of a business if any material Increases or decreases in sur­ mately 50 percent of the voting securities of such securities give control of the business plus, other than those resulting from transac­ such person is owned directly or indirectly or combined with securities already held give tions specified above, the closing of the profit by another single interest, or if the applicant such control. In addition, the acquisition and loss account or the declaration of pay­ takes up the equity in undistributed earn­ of securities which will extend the appli­ ment of dividends, state (i) the year or years ings of any other unconsolidated person, cant’s control of a business shall be deemed in which such increases or decreases were there shall be set forth for each such person the acquisition of the business if any of the made; (ii) the nature and amounts thereof; the financial statements which would be capital stock of the applicant is to be offered and (iii) the accounts affected, including all required if it were an applicant, subject to in exchange for the securities to be acquired. material related entries. Paragraph (3) (iii) |563b.7(q) (2) regarding group statements. (iii) No financial statements need be set shall also apply here. The statements set forth for each person forth pursuant to this subparagraph (2), (5) Predecessors. The information shall be shall identify the other single interest, or however, for any business acquired or to be furnished, to the extent it is material, as to other interests in any person operated acquired from a totally held subsidiary. In any predecessor of the appllbant from the Jointly. addition, the statements of any one or more beginning of the period to that date of suc­ (4) Omission of statements required by businesses may be omitted if such businesses, cession, not only as to the entries made re­ paragraphs (2) and (3). Notwithstanding considered in the aggregate as a single sub­ spectively in the books of the predecessor or paragraphs (2) and (3), there may be omitted sidiary, would not constitute a significant the successor, but also as to the changes ef­ from the proxy and information statement subsidiary. fected in the transfer of the assets from the all financial statements of any one or more (g) Filing of other statements in certain predecessor. However, no information need be unconsolidated subsidiaries or 50-percent- cases. The Corporation may, upon the request furnished as to any one or more predecessors owned persons or other persons: (1) If all of the applicant, and where consistent with which, considered in the aggregate, would not such subsidiaries and 50-percent-owned and the protection of eligible account holders constitute a significant predecessor. other persons for which statements are so and others, permit the omission of one or (6) Omission of certain information, (i) omitted, considered in the aggregate as a sin­ more of the statements herein required or No information need be furnished as to any gle subsidiary, would not constitute a sig­ the filing in substitution therefor of ap­ subsidiary, whether consolidated or uncon­ nificant subsidiary; or (2) if the income from propriate statements of comparable char­ solidated, for the period prior to the date on the subsidiary reported by the applicant does acter. The Corporation may also require the which the subsidiary became a majority- not exceed 10 percent of the consolidated net inclusion of other statements in addition to, owned subsidiary of the applicant or of the income for the latest fiscal year for which or in substitution for, the statements herein predecessor for which information is required income statements are filed. required in any case where such statements above. (f) Special provisions—(1) Succession to are necessary or appropriate for an adequate (ii) No information need be furnished to other business, (i) If during the period for presentation of the financial condition of any one or more unconsolidated subsidiaries which its statements of operations are re­ any person whose financial statements are for which separate financial statements are quired, the applicant has by merger, con­ required, or whose statements are otherwise filed if all subsidiaries for which the infor­ solidation or otherwise succeeded to one or necessary for the protection of eligible ac­ mation is so omitted, considered in the ag­ more businesses, the additions, eliminations count holders and others. gregate as a single subsidiary, would not and other changes effected in the succession (h) Historical financial information—(1 ) constitute a significant subsidiary. shall be appropriately set forth in a note Applicability of paragraph (h). The informa­ (iii) Only the information specified in or supporting schedule to the statements of tion required by this paragraph (h) shall be paragraph (3) need be given as to any miancial condition set forth. In addition, included in the proxy and information state­ predecessor or any subsidiary thereof if im­ statements of operations' for each constitu­ ment if in the opinion of the applicant it is mediately prior to the date of succession ent business, or combined statements if ap­ material to the understanding of its finan­ thereto by a person for which information propriate, shall be set forth for such period cial condition. If the applicant determines to is required, the predecessor or subsidiary was j prior to the succession as may be necessary omit the information required by this para­ in insolvency proceedings. when added to the time, if any, for which graph, it shall file with the appropriate form Item 18. Consents of experts and reports. statements of operations after the succes­ for preliminary approval a statement briefly (a) The proxy and information statement sion are set forth to cover the equivalent of explaining 6uch omission. shall briefly describe all consents of experts the period specified in paragraphs (a), (b), (2) Scope of paragraph (h). The infor­ filed pursuant to section 563b.3 (n ). and (c) above. mation required by paragraph (h) shall be (b) The statement shall contain a report .(I1) If the applicant by merger, consoli- furnished for the 7-year period preceding of the independent public accountants who uation or otherwise is about to succeed to the period for which statements of operations have certified the financial statements and one or more businesses, there shall be filed are set forth, as to the accounts of each other matters in the statement. or the constituent businesses financial person whose statement of financial condi­ Instruction. The instruction to item 15 to mv11*8’ combined, if appropriate, which tion is set forth. The information is to be shall apply to paragraph (a) of this item. he required by these instructions. In given as to all of the accounts specified Item 19. Attachments. There shall be at­ m«ÌÌÌ0?’ there 811511 be se* forth a state­ whether they are presently carried on the tached to the proxy and information state­ vi«?* 0i financlal condition of the applicant books or not. Paragraph (h) does not call ment distributed to eligible account holders effect to the plan of succession. These for an audit, but only for a survey or review and association members a copy of the ap­ of financial condition shall be set of the accounts specified. It should not be plicant’s plan of conversion as preliminarily win such form* preferably columnar, as detailed beyond a point material to eligible approved by the Corporation. There may also o f «« 0W 111 related manner the statements accountholders and others. be attached to such statement a copy of npp7~?Cial condition of the constituent busl- (3) Revaluation of property. (1) If there any stock option or stock purchase plan de­ 831 tùe changes to be effected in the suc­ were any material increases or decreases in scribed tinder item 14.

FEDERAL REGISTER, VOL. 38, NO. 7— »THURSDAY, JANUARY 11, 1973 No. 7— P t. EC- 1358 PROPOSED RULE MAKING

F o rm F A transfer agent that: (1) Such accountant or support, of the information contained in transfer agent has mailed, or supervised the Item 2. [F a cin g S h e e t ] mailing of, the proxy and information state­ Exhibit 4. Attach a certified copy of each FEDERAL HOME LOAN BANK BOARD ments, order forms, proxy forms, and war­ resolution adopted at the meeting of the rants or rights, if applicable, to eligible members to consider the plan of conversion. Federal Savings and Loan Insurance account holders and association members in Exhibit 5. Attach copies of all exhibits and Corporation accordance with §§ 563b.8 and 563b.9; (2) other information réquired by Form PA and Washington, D.C. 20552 such accountant or transfer agent has re­ Part 563b and not previously submitted. ceived the completed proxy forms; (3) such (Secs. 402, 403, 407, 48 Stat. 1256, 1257, 1260 Application for Final Approval of Conversion accountant or transfer agent has reviewed as amended'; 12 Ü.S.C. 1725, 1726,1730; sec. 5, the applicant’s systems and procedures for 48 Stat. 132, as amended; 12 U.S.C. 1464. calculating the pro rata entitlement of eligi­ (Exact name of applicant as specified ble account holders, has completed a test Reorg. Plan. No. 3 of 1947,12 FR 4981, 3 CPE, in charter) check of such calculation and has reviewed 1943-48 Comp, p. 1071) written inquiries received by the applicant Interested persons are invited to sub­ (Street address of applicant) respecting the amount of the securities allo­ cated to inquiring eligible account holders mit written data, views, and arguments, on a test basis for the purpose of stating to the Office of the Secretary, Federal (City, State, and zip code) that, based on his review, he is aware of no Home Loan Bank Board, 101 Indiana indications that the entitlements were cal­ Avenue NW„ Washington, DC 20552, by (Date of application) culated in a manner inconsistent with the March 12, 1973, as to whether this pro­ plan; (4) all votes cast by proxy were cast in posal should be adopted, rejected, or I t e m s accordance with the choice or choices made modified. Written material submitted Item 1. With respect to each matter voted on each proxy form; and (5) in his opinion, will be available for public inspection at upon at the meeting of members to consider the results reported pursuant to Item 1 of this form accurately reflect such choices. the above address unless confidential the plan of conversion and related to such treatment is requested or the material plan, state the total number of votes eligible Exhibit 2. Attach an opinion of counsel to to be cast; the total number of votes cast in the effect that: (1) The meeting of members would not be made available to the pub­ favor of each such matter; and the per­ was held in accordance with all requirements lic or otherwise disclosed under § 505.6 of centage of votes necessary to approve each of applicable State and Federal law and regu­ the general regulations of the Federal such matter. lation; and (2) all requirements of State law Home Loan Bank Board (12 CFR 505.6). Item 2. State the actual price proposed by applicable to the conversion, including State the applicant pursuant to § 563b.9(d). If it and Canadian securities laws, have been com­ By the Federal Home Loan Bank is not feasible to state such actual price, state plied with, except to the extent that the Board. the final price jange pursuant to $ 563b.9(d). granting of final approval by the Corporation [ seal] G renville L. M illard, Jr., E x h ib it s - is such a requirement. Assistant Secretary. Exhibit 3. Attach a copy of the pricing Exhibit 1. Attach a statement by an inde­ [FR Doc.73-461 Filed 1-10-73;8:45 am] pendent public accountant or independent materials required by section 563b.9(g) in

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 NOTICES 1359

that the latest date the Board will ap­ FEDERAL HOME LOAN BANK BOARD prove as the date for determining the eligibility of account holders to receive PLANS OF CONVERSION stock under a plan to convert a federally insured mutual savings and loan associa­ Change in Distribution Record Date tion to the stock form of organization January 3, 1973. is changed from July 13, 1972, or earlier to December 31, 1972, or earlier. Pursuant to section 5 of the Home v Owners’ Loan Act of 1933, as amended By the Federal Home Loan Bank Board. (12 U.S.C. 1464), and title IV of the [seal] G renville L. M illard, Jr., National Housing Act, as amended (12 Assistant Secretary. U.S.C. 1724, et seq.), the Federal Home Loan Bank Board hereby gives notice [FR Doc.73-462 Filed 1-10-73; 8:45 am]

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973

THURSDAY, JANUARY 11, 1973

ENVIRONMENTAL PROTECTION AGENCY

NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM

Notice of Proposed Rule Making 1362 PROPOSED RULE MAKING exclusions listed in these regulations, do Subpart A— General ENVIRONMENTAL PROTECTION not require discharge permits. These proposed regulations do not ap­ § 125.1 Definitions. AGENCY ply in any State where the Administra­ Except as otherwise specifically pro­ tor has granted authority to a State to vided, [4 0 CFR Part 125 3 carry out a State permit program pur­ (a) The term “Act" means the Federal suant to section 402(a) (5) of the Act or Water Pollution Control Act, as amended, NATIONAL POLLUTANT DISCHARGE where the Administrator has approved Public Law 92-500. i H a State program pursuant to section ELIMINATION SYSTEM (b) The term “Administrator” means 402(b) of the Act. In such cases, the Ad­ the Administrator of the U.S. Environ­ Notice of Proposed Rule Making ministrator will suspend issuance of per­ mental Protection Agency. mits pursuant to his authority, except (c) The term “applicable effluent Notice is hereby given that the regula­ with respect to Federal agencies and in­ standards and limitations” means all tions set forth in tentative form below strumentalities, for which the Adminis­ State and Federal effluent standards and are proposed by the Environmental Pro­ trator will continue to process permit ap­ limitations to which a discharge is sub­ tection Agency. The proposed regula­ plications in accordance with these regu­ ject under the Act, including, but not tions describe, pursuant to the authority lations and will be the exclusive source limited to, effluent limitations, standards contained in sections 402 and 405 of the of permits. of performance, toxic effluent standards Federal Water Pollution Control Act Section 405 of the Act provides that and prohibitions, and pretreatment Amendments of 1972 (86 Stat. 816 et any discharge of sewage sludge that re­ standards. seq.; Public Law 92-500 (1972)) (herein­ sults in any pollutant from the sewage (d) The term “applicable water qual­ after referred to as the “Act” ) , the policy sludge entering the navigable waters is ity standards” means all water quality and procedures for issuing or denying prohibited, except in accordance with a standards to which a discharge is subject permits under sections 402 and 405 of permit issued by the Administrator un­ under the Act and which have been (1) the Act. approved or permitted to remain in effect Section 402 of the Act creates a Na­ der section 405. These proposed regula­ by the Administrator following submis­ tional Pollutant Discharge Elimination tions apply to the discharge of sewage sion to him pursuant to section 303(a) of System under which the Administrator sludge. the Act, or (2) promulgated by the Ad­ of the Environmental Protection Agency Prior to the adoption of the proposed ministrator pursuant to section 303 (b) or may, after opportunity for public hear­ regulations consideration will be given 303(c) of the Act. ing, issue permits for the discharge of any (e) The term “contiguous zone” means pollutant or combination of pollutants, to any comments, suggestions, or objec­ tions thereto which are submitted In the entire zone established or to be es­ upon condition that such discharge will tablished by thé United States under meet all applicable requirements of the writing to the Office of Enforcement and Article 24 of the Convention of the Terri­ Act relating to effluent limitations, water General Counsel, Washington, D.C. torial Sea and the Contiguous Zone. quality standards and implementation 20460 by February 12, 1973. (f) The term “ discharge” when used plans, new source performance stand­ W i l l i a m D. R u c k e l s h a u s , without qualification includes a dis­ ards, toxic and pretreatment effluent charge of a pollutant and a discharge of standards, inspections, monitoring and Administrator. pollutants. entry provisions, and guidelines estab­ J anuary 5, 1973. lishing ocean discharge criteria. (g) The term “discharge of pollutant” Subpart A— General and the term “ discharge of pollutants” Prior to the promulgation of guide­ Sec. each means: (1) Any addition of any lines specifying the requirements of the 125.1 Definitions. pollutant to navigable waters from any Act indicated in the preceding para­ 125.2 Scope and purpose. 125.3 Law authorizing permits. point source, (2 ) any addition of any graph, the Administrator may issue pollutant to the waters of the contiguous permits under conditions which he deter­ 125.4 Exclusions. 125.5 Delegation of authority. zone or the ocean from any point source mines áre necessary to carry out the pro­ other than a vessel or other floating visions of the Act. Permit holders (for Subpart B— Processing of Permits all point sources, other than publicly craft. 125.11 General provisions. (h) The term “ effluent limitations” owned treatment works) are required to 125.12 Application for permit. achieve, not later than July 1, 1977, means any restriction established by a 125.13 Access to facilities. State or the Administrator on quantities, effluent limitations which require the ap­ 125.14 Distribution of application and plication of best practicable (waste) permit. rates, and concentrations of chemical, control technology currently available. 125.15 State certification. physical, biological, and other constitu­ ents which are discharged from point Publicly owned treatment works are re­ Subpart C— Terms and Conditions of Permits quired to achieve secondary treatment by sources into navigable waters, the waters the same date. In addition, all point 125.21 Prohibitions. of the contiguous zone, or the ocean, in­ source dischargers must comply with ap­ 125.22 Conditions o f permits. cluding schedules of compliance. 125.23 Schedules of compliance. (i) The term “ Environmental Protec­ plicable water quality standards re­ 125.24 Effluent limitations in permits. quirements. 125.25 Duration of permit. tion Agency” means the U.S. Environ­ All discharges from point sources into 125.26 Special categories of permits. mental Protection Agency. the navigable waters, the waters of the 125.27 Monitoring, recording and reporting. (j) The term “interstate agency” means an agency of two or more States contiguous zone, and the oceans are un­ Subpart D— Notice and Public Participation lawful unless the discharger possesses a established by or pursuant to an agree­ valid permit or is excluded from cover­ 125.31 Formulation of tentative determina­ ment or compact approved by the Con­ tions. gress, or any other agency of two or age by law or regulation. Dischargers re­ 125.32 Public notice. quired to obtain permits include, among 125.33 Fact sheets. more States, having substantial powers other point sources, municipal and other 125.34 Hearings and appeals. or duties pertaining to the control of publicly owned waste treatment works, 125.35 Public access to information. pollution as determined and approved by the Administrator. industries discharging directly to navi­ Subpart E— Miscellaneous gable waters, and concentrated animal (k) The term “municipality” means a feeding operations. 125.41 O bjections to perm it by another city, town, borough, county, parish, dis­ state. trict, association, or other public body Industrial, commercial, and residential 125.42 Other legal action. discharges to municipal or other pub­ 125.43 Environmental impact statements. created by or pursuant to State law and licly owned waste treatment works, having jurisdiction over disposal of sew­ A u t h o r i t y : Secs. 402, 405 of the Federal properly functioning marine engines, and age, Industrial wastes, or other wastes, Water Pollution Control Act Amendments of or an Indian tribe or an authorized In­ certain discharges to wells associated 1972 (86 Stat. 816 et. seq.; Publio Law 92- dian tribal organization, or a designated with oil and gas production, among other 500).

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 PROPOSED RULE MAKING 1363 and approved management agency under covers only radioactive materials which are process or is used for ultimate disposal of section 208 of the Act. not encompassed in the definition of source, residues resulting from such treatment. by-product or special nuclear materials as (l) The term “National Pollutant Dis­ defined by the Atomic Energy Act of 1954, § 125.2 Scope and purpose. charge Elimination System” (hereinafter as amended, and regulated pursuant to the referred to as “NPDES” ) for the purpose latter Act. Examples of radioactive materials (a) These regulations prescribe the of these regulations means the system not covered by the Atomic Energy Act and, policy and procedures to be followed in for issuing, conditioning, and denying therefore, included within the term “pol­ connection with applications for feder­ permits for the discharge of pollutants lutant” are radium and accelerator produced ally issued permits authorizing dis­ from point sources into the navigable isotopes. (H.R. Rep. 92-911, 92d Cong. 2d charges into the navigable waters, the waters, the contiguous zone, and the sess., 131, Mar. 11, 1972; 117 Cong. Rec. 17401, waters of the contiguous zone, and the daily ed„ Nov. 2, 1971; 118 Cong. Rec. 9115, oceans, during the periods that the Ad­ oceans, by the Administrator of the En­ daily ed., Oct. 4,1972.)) vironmental Protection Agency pursuant ministrator of the Environmental Pro­ to section 402 of the Federal Water Pol­ (t) The term “pollution” means the tection Agency may be authorized to issue lution Control Act, as amended. man-made or man-induced alteration of such permits pursuant to sections 402 (m) The term “navigable waters” the natural chemical, physical, biological, and 405 of the Act. means the waters of the United States and radiological integrity of water. (b) These regulations do not prescribe including the territorial seas. (u) The term “Regional Administra­ policy or procedures where the Adminis­ (n) The term “new source” means any tor” means one of the Regional Adminis­ trator has authorized a State program building, structure, facility, or installa­ trators of the U.S. Environmental Pro­ pursuant to section 402(a) (5) of the Act tion from which there is or may be the tection Agency. or where the Administrator has approved discharge of pollutants, the construction (v) The term “schedule of compli­ a State program pursuant to section 402 of which is commenced after the publi­ ance” means a schedule of remedial (b) of the Act. cation of proposed regulations pre­ measures including an enforceable se­ § 125.3 Law authorizing permits. scribing a standard of performance un­ quence of actions or operations leading der section 306 of the Federal Water Pol­ to compliance with an effluent limitation, (a) Section 301 (a) of the Act provides lution Control Act, as amended, which other limitation, prohibition, or standard. that discharges without permits are un­ will be applicable to such source, if such (w) The term “sewage” means human lawful. This section states, in part, that standard is thereafter promulgated in body wastes and the wastes from toilets “Except in compliance with this section accordance with section 306. and other receptacles intended to receive and sections 302, 306, 307, 318, 402, and 404 of this Act, the discharge of any pol­ (o) The term “ocean” means any por­ or retain body wastes. (x) The term “sewage sludge” shall lutant by any person shall be unlawful.” tion of the high seas beyond the con­ (b) Section 402 of the Act establishes tiguous zone. mean the solids and precipitates sepa­ rated from wastewater by unit processes. the National Pollutant Discharge Elimi­ (p) The term “permit” means any per­ nation System (NPDES). This section mit or equivalent document or require­ (y) The term “ State” means a State, provides in part that “the Administrator ment issued to regulate the discharge of the District of Columbia, the Common­ may, after opportunity for public hear­ pollutants. wealth of Puerto Rico, the Virgin Islands, ing, issue a permit for the discharge of (q) The term “person” means an indi­ Guam, American Samoa, ant’ the Trust Territory of the Pacific Islands. any pollutant, or combination of pol­ vidual, corporation, partnership, asso­ lutants, * * * upon condition that such ciation, State, municipality, commission, (z) The term “State water pollution discharge will meet either all applicable or political subdivision of a State, or any control agency” means the State agency requirements under sections 301, 302,306, interstate body. designated by the Governor, having re­ 307, 308, and 403 of (the) Act, or prior (r> The term “point source” means sponsibility for enforcing State laws re­ to the taking of necessary implementing any discernible, confined and discrete lating to the abatement of pollution. actions relating to all such requirements, conveyance, including but not limited to (aa) The term “ territorial seas”such conditions as the Administrator any pipe, ditch, channel, tunnel, conduit, means the belt of the seas measured from determines are necessary to carry out well, discrete fissure, container, rolling the line of ordinary low water along that the provisions of (the) Act.” stock, concentrated animal feeding oper­ portion of the coast which is in direct (c) Section 405 cf the Act prohibits ation, or vessel or other floating craft, contact with the open sea and the line the discharge of sewage sludge into from which pollutants are or may be marking the seaward limit of inland navigable waters except in accordance discharged. waters, and extending seaward a distance with a permit issued by the Administra­ (s) The term “pollutant” meansof 3 miles. tor under section 405. This section pro­ dredged spoil, solid waste, incinerator (bb) The term “trade secrets” shall vides in part that “in any case where the residue, sewage, garbage, sewage sludge, mean a secret method or process, not disposal of sewage sludge resulting from munitions, chemical wastes, biological patented, but known only to certain indi­ the operation of a treatment works * * * materials, radioactive materials, heat, viduals using it in compounding some (including the removal of in-place sew­ wrecked or discarded equipment, rock, article of trade having a commercial age sludge from one location and its sand, cellar dirt and industrial, munici­ value. deposit at another location) would result pal, and agricultural waste discharged (cc) The term “treatment works” in any pollutant from such sewage sludge into water. It does not mean (1) “sewage means any devices and systems used in entering into the navigable waters, such from vessels” or (2 ) water, gas or other the storage, treatment, recycling, and disposal is prohibited except in accord­ material which is injected into a well to reclamation of municipal sewage or in­ ance with a permit issued by the Ad­ facilitate production of oil or gas, or dustrial wastes of a liquid nature to im­ ministrator under this section.” water derived in association with oil or plement section 201 of the Act, or neces­ (d) Unless specifically noted to the gas production and disposed of in a well, sary to recycle or reuse water at the most contrary, all provisions of these regula­ if the well used either to facilitate pro­ economical cost over the estimated life tions concerning permits under section duction or for disposal purposes is ap­ of the works, including intercepting sew­ 402 of the Act, are applicable to permits proved by authority of the State in which ers, outfall sewers, sewage collection sys­ under section 405 of the Act. the well is located, and if such State de­ tems, pumping, power, and other equip­ termines that such injection or disposal ment, and their appurtenances; exten­ § 125.4 Exclusions. will not result in the degradation of sion, improvement, remodeling, addi­ The NPDES does not apply tor ground or surface water resources. tions, and alterations thereof; elements (a) Sewage from vessels (section 502 (Comment. The legislative history of the essential to provide a reliable recycled (6 )); ederal Water Pollution Control Act amend­ supply such as standby treatment units (b) Any addition of any pollutant to ments reflects that the term “radioactive and clear well facilities; and any works, the waters of the contiguous zone or the .?r*a^s” 83 included Within the definition including site acquisition of the land that ocean from any vessel or other floating 01 pollutant” in section 502 of the Act will be an integral part of the treatment craft (section 502(12) (B)) ;

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1364 PROPOSED RULE MAKING

(c) Discharges from properly func­ under sections 301, 302, 306, 307, 308, and covered under the NPDES must apply tioning marine engines *; 403 of the Act, the Administrator may for a permit on or before April 16,1973. (d) Water, gas, or other material issue permits under such conditions as he (d) Any persons wishing to discharge which is injected into a well to facilitate determines are necessary to carry out the into waters covered by the NPDES on or production of oil or gas, or water derived provisions of the Act. Any permit issued after June 16, 1973 (but who is not now in association with oil or gas production shall include any conditions necessary to discharging into such waters) must and disposed of in a well, if the well used insure compliance with any applicable re­ apply for a permit not later than 180 either to facilitate production or for dis­ quirements of sections 301, 302, 306, 307, days in advance of the date on which it is posal purposes is approved by authority 308, and 403 that become applicable desired to commence the discharge. If of the State in which the well is located pripr to the issuance of the permit. Fore­ persons desire to discharge on or before and if such State determines that such most among other factors to be consid­ June 15, 1973, they shall give at the injection or disposal will not result in ered prior to the taking of the necessary minimum a 60-day notice; and if such the degradation of ground or surface implementing actions is the requirement notice is impossible they shall apply to water resources (section 502(6)); for abatement measures designed to the Regional Administrator for a (e) Aquaculture projects (section achieve, not later than July 1, 1977, best variance. 318); and practicable (waste) control technology (e) An application submitted by a cor­ (f) Dredged or fill material (section currently available for the particular poration must be signed by an official of 404). point source (other than publicly owned the rank of corporate vice president or treatment works) as determined by the above. In the case of a partnership or a § 125.5 Delegation o f authority. Regional Administrator based upon in­ sole proprietorship the application must (a) Subject to the appeal provisions formation available to him to date and be signed by a general partner or the of § 125.34 and the national security his professional judgment taking into proprietor respectively. In the case of a responsibility provision of § 125.35(c), account the intent of sections, 301, 302, municipal, State, Federal, or other pub­ the authority to issue and condition per­ 306, 307, 308, and 403 of the Act. Likewise, lic facility, the application must be mits or to deny applications for dis­ publicly owned treatment works must signed by the official having responsi­ charges covered by the NPDES and by achieve secondary treatment by July 1, bility for the overall operation of the section 405 of the Act, is hereby delegated 1977, or in accordance with the period facility. to each of the Regional Administrators specified in section 301(b) (1) (B) of the (f) Except as provided below, a fee of of the Environmental Protection Agency Act. Furthermore, any permit issued shall $100 will be charged in connection with for the area which he administers. include any more stringent condition each application for a permit which in­ (b) The authority granted to the Ad­ pursuant to section 301(b)(1)(C) of the volves no more than one outlet from ministrator by sections 308(a) and 308 Act necessary to insure compliance with which a discharge will flow. If there is, (b) of the Act, is hereby delegated to any limitation, including those necessary more than one outlet from which the each of the Regional Administrators for to meet applicable water quality stand­ discharge will flow, an additional $50 the area which he administers. ards, treatment standards, or schedules will be charged for each additional out­ of compliance, established pursuant to let. Agencies or instrumentalities of Fed­ Subpart B— Processing of Permits any State law or regulation (under au­ eral, State, or local governments will § 125.11 General provisions. thority preserved by section 510 of the not be required to pay any fee in connec­ Act) or any other Federal law or regula­ tion with the filing of an application for (a) All discharges of pollutants or tion, or required to implement any appli­ a permit. combination of pollutants from all point cable water quality standard established (g) Minor discharges are those whose sources into the navigable waters, the pursuant to the Act. The likely impact or discharge on every day of the year is waters of the contiguous zone, or the the existing impact of the discharge on less than 50,000 gallons unless their en­ ocean are unlawful and subject to the the quality and uses of the receiving body vironmental impact, as determined by penalties provided by the Act, unless the of water where no adequate water quality the Regional Administrator, is not insig­ discharger has a permit or is specifically standards exist also may have to be taken nificant. If there is more than one dis­ relieved by law or regulation of the into account. In many cases the pos­ charge from a facility and the total ag­ obligation of having a permit. When a sibility of occurrence and the probability gregate discharge from all discharges permit has been issued, discharges must of effects of spills of materials from the exceed 50,000 gallons on any day of the be consistent with the terms and con­ point source are very important. In those year then no discharge will be considered ditions of such permit. Discharges in cases spills should be considered. The ob­ minor. Minor discharges will pay a fee of violation of permit terms and conditions jections of any State or interstate agency $10 per application. Where an applica­ may result in the institution of proceed­ whose waters may be affected by the dis­ tion is filed for a permit for a minor dis­ ings under the Act. charge shall be duly considered when charge and where after review of the (b) The decision as to whether or on making any permit decision. application the Regional Administrator what conditions a permit authorizing a § 125.12 Application for a permit. believes that due to the particular char­ discharge will issue will be based upon acteristics of this discharge, it should an evaluation as to how such discharge (a) An applicant for a permit must secure the required application form(s) not be considered to be a minor dis­ will meet applicable requirements under charge, the applicant shall be advised of the Act, or other applicable laws and from the Regional Administrator. Appli­ cation form(s) must also be filed with this determination and within a reason­ regulations. Subsequent to the taking of able period of time, of not less than 30 necessary implementing actions relating the Regional Administrator. days, shall be required to complete the to such requirements, all discharges in (b) Any person who applied for a per­ normal application forms and provide order to receive a permit must meet the mit under the Refuse Act Permit Pro­ gram operating under rules promulgated the normal fees specified in these requirements of sections 301, 302, 306, regulations. 307, 308, and 403, and all regulations in the F e d e r a l R e g i s t e r on April 7, 1971 (33 CFR 209.131) and whose application (h) The fee structure set forth above pertaining thereto. will be reviewed from time to time as (c) In the period of time prior to the has not been denied need not reapply for a permit under these regulations unless experience with the program is devel­ taking of necessary implementing actions the discharge described in the applica­ oped, and such fees may be revised. Fees relating to all applicable requirements tion for a Refuse Act permit has sub­ collected shall be used to help defray stantially changed in nature, volume, or the cost of administering the program. 1 See Congressional Record for Oct. 10,1972; frequency. Such Refuse Act permit Checks should be made out to the order page E8454, Extension of Remarks; Congress­ application shall be considered to be an of “Environmental Protection Agency.’’ man Robert E. Jones of Alabama, Chairman application under the NPDES and shall of the Conference Committee “ (The Confer­ be treated accordingly. (i) Permittees who wish to continue to ence Committee) would not expect the Ad­ (c) Any person now discharging whose discharge subsequent to the expiration ministrator to require permits to be ob­ date of their permit must apply for re­ tained for any discharges from properly func­ discharge was not covered by the Refuse tioning marine engines.” Act Permit Program but which is now issuance of the permit using proper

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY U , 1973 PROPOSED RULE MAKING 1365 forms, not less than 180 days prior to the granting of a permit, such permit will appropriate, from the interstate water permit expiration date. be denied and the applicant shall be so pollution control agency having juris­ notified. Where the District Engineer ad­ diction over the navigable waters at the § 125.13 Access to facilities and further vises the Regional Administrator that point where the discharge originates or information during evaluation of the the imposition of specified conditions will originate, that any such discharge application. upon the permit is necessary to avoid any will comply with the applicable provi­ Permit application forms are designed substantial impairment of any of the sions of sections 301, 302, 306, and 307 to fit the normal situation for most fa­ navigable waters, then the Regional Ad­ of this Act. In the case of any such ac­ cilities in the United States. Therefore, ministrator shall impose upon the permit tivity for which there is not an applicable in many cases, further information in­ those conditions so specified by the Dis­ effluent limitation or other limitation un­ cluding site visits may be necessary in trict Engineer. Where the District Engi­ der sections 301(b) and 302, and there order to evaluate the discharge com­ neer notifies the Regional Administrator is not an applicable standard under sec­ pletely and accurately. When the Re­ that more time is needed for his evalua­ tions 306 and 307, the State shall so gional Administrator determines that tion, more time will be granted where it certify.” Where certification is required, either further information or a site visit appears that the public interest warrants no license or permit shall be granted un­ is necessary in order for the Environ­ such extension. til the certification has been obtained or mental Protection Agency to evaluate the (c) Upon receipt of an application has been waived. A waiver occurs when discharge, he shall so notify the appli­ which does not include a State certifica­ the certifying agency fails or refuses to cant and in addition provide a date no tion where such certification is required act on a request for certification, within later than 60 days hence by which time by section 401 of the Act, the Regional a reasonable period of time (which shall the requested information will be re­ Administrator will make available one not exceed 1 year) after receipt of such ceived and/or the site visit will be ac­ copy of the application form to the State request. Three months shall generally be complished. In the event that a satis­ water pollution control agency for the considered to be a reasonable period of factory response is not received the per­ State in which the discharge will occur. time. If, however, special circumstances mit application may be issued or denied Accompanying the application will be a identified by the Regional Administrator and the applicant so notified. Sections statement by the Regional Administra­ require that action on a permit applica­ 308, 309, and 402 (k) of the Act, also pro­ tor that a request for a permit has been tion be taken within a more limited pe­ vide for sanctions in the event of non- received by the Environmental Protec­ riod of time, the Regional Administrator compliance with reasonable requests for. tion Agency, and that before such permit shall determine a reasonable lesser pe­ additional information. can issue, the State must certify that the riod of time, advise the certifying agency discharge will comply with the applicable of the need for action by a particular § 125.14 Distribution of application and provisions of sections 301, 302, 306, and date and that, if certification is not re­ permit. 307 or that there are no applicable efflu­ ceived by the date established, it will be (a) When an application for a permit ent or other limitations under sections considered that the requirement for is received Regional Administrators shall 301 and 302 and there are no applicable certification has been waived. Similarly, determine if the applicant has provided standards under sections 306 and 307, or if it appears that circumstances may all of the information required by the deny such certification or waive its right reasonably require a period of time application form and by this section. to certify or deny. The Regional Admin­ longer than 3 months, the Regional Ad­ (b) In order to assure that the Secre­ istrator must also state that such certi­ ministrator may afford the certifying tary of the Army acting through the fication or denial must be received within agency up to 1 year to provide the re­ Chief of Engineers has adequate time to a reasonable period of time or a waiver quired certification before determining evaluate the impact of the proposed dis­ will be deemed to have occurred. that a waiver has occurred. Where such charge on anchorage and navigation, (d) If a permit issues, a copy of the extension of time is made at the request Regional Administrators will forward to permit and, if not previously transmitted, of the certifying agency, the request must the District Engineer in the appropriate a copy of the application forms, shall be be in writing and must include the rea­ District one copy of the application form transmitted to the State in which the dis­ sons for the request. The Regional Ad­ immediately upon its receipt in the Re­ charge is located. Copies of these docu­ ministrator shall check with the certify­ gional Office in completed form. Accom­ ments shall be available for observation ing agency at the end of the allotted pe­ panying the application will be notice and reproduction by the public in the riod of time before determining that a that the Environmental Protection Regional Office. waiver has occurred. Agency has received a request for a per­ (e) Regional Administrators shall as­ (b) Any certification provided shall set mit to discharge and that the District sist applicants for permits in coordinat­ forth any effluent limitations and other Engineer has a stated number of days to ing the requirements of the Act, with limitations, and monitoring requirements those of appropriate public health necessary to insure compliance with any evaluate the impact of granting such agencies. permit upon anchorage and navigation applicable effluent limitations and other and to advise the Regional Administrator (f) Whenever the provisions of the limitations, under section 301 or 302 of of his evaluation. District Engineers of Fish and Wildlife Coordination Act, 16 the Act, standard of performance under the Corps of Engineers will normally be U.S.C. 662, apply, Regional Administra­ section 306 of the Act, or prohibition, ef­ given 30 days to evaluate the impact on tors shall consult with appropriate offi­ fluent standard, or pretreatment stand­ anchorage and navigation. Where the cials of the U.S. Department of the In­ ard under section 307 of the Act, and with Regional Administrator finds that less terior and the U.S. Department of Com­ any other appropriate requirement of time should be allowed he should so ad­ merce, and with the head of the agency of State law set forth in such certifi­ vise the District Engineer of such lesser exercising administration over the wild­ cation. period of time while at the same time life resources of the State in which the (c) Discharges from agencies or instru­ outlining his reasons for such lesser pe- discharge will occur. mentalities of the Federal Government, as provided in section 401(a) (6 ) of the 40® ^me- In all cases the Regional § 125.15 State certification. Administrator should advise the District Act, do not require certification pursuant ^mgineer that failure to answer within (a) Section 401(a) (1) of the Act, pro­to section 401. Regional Administrators tne allotted period of time will be deemed vides that “Any applicant for a Federal will, however, make available one copy of o be a finding that anchorage and navi­ license or permit to conduct any activity any application from any Federal point gation will not be substantially impaired including, but not limited to, the con­ source to the State in which the dis­ oy granting of this permit. Where the struction or operation of facilities, which charge is located and will request that the District Engineer advises the Regional may result in any discharge into the State, within a reasonable time, comment navigable waters, shall provide the li­ upon compliance of the discharge with dministrator that anchorage and navi­ censing or permitting agency a certifica­ the provisions of sections 301, 302, 306, gation of any of the navigable waters tion from the State in which the dis­ and 307 and any other applicable State would be substantially impaired by the charge originates or will originate, or, if and local water quality requirements.

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1366 PROPOSED RULE MAKING

Subpart C— Terms and Conditions of (2) That the permit may be modified, (b) Permits shall also include such Permits suspended, or revoked in whole or in part special conditions as the Regional Ad­ during its term for cause including, but ministrator considers necessary or appro­ § 125.21 Prohibitions. not limited to, the following: priate to specify and to assure compli­ (a) No permit shall issue in cases (i) Violation of any terms or condi­ ance with applicable effluent limitations where the applicant, pursuant to section tions of the permit; or other water quality requirements in­ 401 of the Act, is required to obtain a (ii) Obtaining a permit by misrepre­ cluding schedules of compliance, treat­ State or other appropriate certification sentation or failure to disclose fully all ment standards and such other condi­ that the discharge will comply with the relevant facts; and, tions as the Regional Administrator con­ applicable provisions of sections 301, (iii) A change in conditions or the ex­ siders necessary or appropriate to carry 302, 306, and 307 and such certification istence of a condition which requires out the provisions of the Act. Permits was denied (section 401(a)). either a temporary or permanent reduc­ shall also contain such other conditions (b) No permit shall issue where pur­ tion or elimination of the authorized as the District Engineer of the Corps of suant to section 401(a)(2) of the Act, discharge; Engineers considers to be ncessary to in­ the imposition of conditions cannot in­ (3) That the permittee shall permit sure that navigation and anchorage will sure compliance with the applicable wa­ the Regional Administrator or his au­ not be substantially impaired. Also, con­ ter quality requirements of all involved thorized representative, and/or the au­ ditions recommended by State water pol­ States. thorized representative of the State lution control officials or other govern­ (c) No permit shall issue if, in the water pollution control agency in the mental officials may be added to permits judgment of the Secretary of the Army case of non-Federal facilities, upon the if the Regional Administrator believes acting through the Chief of Engineers, presentation of his credentials: such recommended conditions will aid in anchorage and navigation of any of the (i) To enter upon permittee’s premises carrying out the purposes of the Act. navigable waters would be substantially in which an effluent source is located or Furthermore, all permits will be condi­ impaired by the discharge (section 402 in which any records are required to be tioned upon achieving compliance with (b )(6 )). kept under terms and conditions of the any applicable effluent limitations and (d) No permit shall issue for the dis­ permit; other limitations, and monitoring re­ charge of any radiological, chemical, or (ii) To have access to and copy any quirements set forth on any certification biological warfare agent or high-level records required to be kept under terms pursuant to section 401 of the Act. radioactive waste into the navigable wa­ and conditions of the permit; (iii) To inspect any monitoring equip­ § 125.23 Schedules of compliance in ters (section 301(f)). permits. (e) No permit shall issue for any dis­ ment or method required in the permit; charge from a point source in conflict or, Regional Administrators shall follow with a plan approved pursuant to section (iv) To sample any discharge of the procedures below in setting sched­ 208(b) of the Act (section 208(e)). - pollutants. ules of compliance in permits : (f) No permit shall issue for any dis­ (4) That the permit may not be trans­ (a) With respect to any discharge charge to the territorial sea, the waters ferred to a third party without the prior which is not in compliance with applica­ of the contiguous zone, or the oceans written approval of the Regional Ad­ ble effluent standards and limitations, prior to the promulgation of guidelines ministrator. Such prior written approval applicable water quality standards, and under section 403(c) of the Act unless will be granted by the Regional Admin­ other , applicable requirements, the per­ the Regional Administrator determines istrator where the transferee acquires a mittee shall be required to take specific it to be in the public interest (section property interest in the point source and steps to achieve compliance with the fol­ 403(a)). agrees in writing to fully comply with all lowing: (g) No permit shall issue for any dis­ the terms and conditions of the permit (1) Any schedule of compliance con­ charge to the territorial sea, the waters and the Act. Where the discharge is not tained in (i) applicable effluent stand­ of the contiguous zone, or the oceans in compliance with the terms and con­ ards and limitations; or, (ii) water qual­ after promulgation of guidelines under ditions of the permit or the Act at the ity standards, if more stringent; or (iii) section 403(c) except in compliance with time of the transfer, the transferee must any other applicable requirements, if such guidelines (section 403(a)). agree in writing to bring the discharge more stringent; or (h) No permit shall issue for any dis­ into compliance with the terms and con­ (2) In the absence of any applicable charge to the territorial sea, the waters ditions of the permit and the Act, with­ schedule of compliance in the shortest, of the contiguous zone, or the oceans, in the shortest reasonable period of time reasonable period of time, such period subsequent to the promulgation of guide­ as determined by the Regional Ad­ not to be extended beyond July 1, 1977. lines pursuant to section 403(c) of the ministrator. (b) In any case where the period of Act, where insufficient information exists (5) That the permittee shall at all time for compliance specified in para­ to make a reasonable judgment as to times maintain in good working order graph (a) of this section exceeds 9 whether the discharge complies with any and operate at maximum efficiency any months one or more interim dates shall such guidelines (section 403(c) (2)). facilities or systems of control installed be specified for which the permittee shall by the permittee to achieve compliance achieve interim requirements; in no § 125.22 Conditions of permits. with the terms and conditions of the event shall more than 9 months elapse (a) Regional Administrators shall in­permit. between interim dates. Interim dates and sure that the terms and conditions of all (6) The issuance of a permit does not the final date for compliance shall fall on issued permits provide for and insure the convey any property rights either in real the last day of February, April, June, following: estate or material, or any exclusive priv­ August, October, and December. (1) That all discharges authorized byileges, nor does it authorize any injury (c) Not later than fourteen (14) days the permit shall be consistent with the to private property or invasion of rights, following each interim date and the final terms and conditions of the permit; that nor any infringement of Federal, State, date of compliance the permittee shall facility expansions, production increases, or local laws or regulations; nor does it provide the Regional Administrator with or process modifications which result in obviate the necessity of obtaining State written notice of the permittee’s compli­ new or increased discharges of pollutants or local assent required by law for the ance or noncompliance with the interim must be reported by submitting a new discharge authorized. or final requirements. application; that the discharge of any (7) That each permittee shall within pollutant not identified and authorized 30 days from the day the permit was is­ § 125.24 Effluent limitations in permits. by the permit or the discharge of any sued agree in writing to comply with all In the application of effluent standards pollutant more frequently than or at a the terms and conditions of the permit and limitations, water quality standards, level in excess of that identified and au­ and the Act. Such agreement of the and other applicable requirements, the thorized by the permit shall constitute permittee may be subject to the reserva­ Regional Administrator shall for each a violation of the terms and conditions tion of all of the permittee’s rights permit, specify average and maximum of the permit; under section 509 of the Act. daily quantitative limitations for the

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 PROPOSED RULE MAKING 1367 level of pollutants in the authorized dis­ full compliance with section 307 require­ strumentation and calibration and charge of terms of weight or other ap­ ments. maintenance records. This period of re­ propriate expression. Where a schedule of § 125.27 Monitoring, recording' and re­ tention shall be extended during the compliance is included as a condition in porting. course of any unresolved litigation re­ a permit, effluent limitations shall be in­ garding the discharge of pollutants by cluded for the interim period as well as (a) Any permit shall be subject to such the permittee or when requested by the for the period following the final com­ monitoring requirements as may be Regional Administrator. pliance date. reasonably required by the Regional Ad­ (e) The Regional Administrator shall ministrator, including the installation, require periodic reporting (at a fre­ § 125.25 Duration o f permit. use, and maintenance of monitoring quency of not less than once per year) (a) No permit will issue for a period equipment or methods (including, where on the proper NPDES reporting form of longer than 5 years. appropriate, biological monitoring meth­ monitoring results obtained by a permit­ (b) Permits of less than 5 years dura­ ods). tee pursuant to monitoring requirements tion may issue in appropriate cases and (b) Any discharge which in a permit. Such reporting periods, Regional Administrators shall give great (1) Averages more than 50,000 gal­ whose length shall be determined by the weight to the advice of State or interstate lons per operating day, Regional Administrator, shall end on water pollution control officials on the (2) The Regional Administrator re­ the last day of February, April, June, appropriate duration for particular quires to be monitored, or August, October, and/or December. permits. (3) Contains toxic pollutants for which (c) All permits will be for a fixed term. an effluent standard has been established Subpart D— Notice and Public by the Administrator pursuant to section Participation § 125.26 Special categories o f permits. 307 (a) of the Act, shall be monitored by (a) Disposal of pollutants into wells. § 125.31 Formulation o f tentative deter­ the permittee for at least the following: minations. If an applicant for a permit proposes to (i) Plow (in gallons per day); and dispose of pollutants into wells as part (ii) All of the following pollutants; The Regional staff shall formulate and of a program to meet the proposed terms (A) Pollutants (measured either di­ prepare tentative determinations with and conditions of a permit, the Regional rectly or indirectly through the use of respect to a permit in advance of public Administrator shall specify additional accepted correlation coefficients or notice of the proposed issuance or denial terms and conditions in the permit which equivalent measurements) which are of the permit. Such tentative determina­ shall (1) prohibit the proposed disposal, subject to reduction or elimination un­ tions shall include at least the following: or (2) control the proposed disposal in der the terms and conditions of the per­ (a) A proposed determination to issue order to prevent pollution of ground and mit; or to deny a permit for the discharge de­ surface waters and to protect the public (B) Pollutants which the Regional Ad­ scribed in the application; and, health and welfare. ministrator finds, on the basis of infor­ (b) If the determination proposed in (b) Discharges from publicly owned mation available to him, could have a paragraph (a) of this section is to issue treatment works. (1) If the permit is for significant impact on the quality of the permit, the following additional ten­ a discharge from a publicly owned treat­ navigable waters; tative determinations; ment works, the Regional Administrator (C) Pollutants specified by the Admin­ (1) Proposed effluent limitations for shall require the permittee to provide istrator, in regulations issued pursuant to those pollutants proposed to be limited; notice to the Regional Administrator of the Act, as subject to monitoring; the following: (2) A proposed schedule of compliance, (c) Each effluent flow or pollutant re­ as explained in § 125.23, including interim (1) Any new introduction of pollutants quired to be monitored pursuant to Para- into such treatment works from a source raph (b) of this section shall be moni­ dates and requirements, for meeting the which would be a new source as defined tored at intervals sufficiently frequent proposed effluent limitations; and, in section 306 of the Act if such source to yield data which reasonably charac­ (3) A brief description of any other were discharging pollutants; terizes the nature of the discharge of the proposed special conditions (other than (ii) Any new introduction of pollutants monitored effluent flow or pollutant. Vari­ those required by § 125.22) which will which exceeds 10,000 gallons on any one able effluent flows and pollutant levels have a significant impact upon the dis­ day into such treatment works from a shall be monitored at more frequent in­ charge described in the application. source which would be subject to section tervals than relatively constant effluent § 125.32 Public notice. 301 of the Act if such source were dis­ flow and pollutant levels which may be charging pollutants; and monitored at less frequent intervals. (a) Public notice of every complete ap­ (iii) Any substantial change in volume (d) The Regional Administrator shall plication for a permit shall be circulated or character of pollutants being intro­ specify recording requirements for any in a manner designed to inform inter­ duced into such treatment works by a permit which requires monitoring of the ested and potentially interested persons source introducing pollutants into such authorized discharge consistent with the of the discharge and of the proposed de­ works at the time of issuance of the following: termination to issue or to deny a permit permit. (1) The permittee shall maintain for the discharge. Public notice of public (2) Such notice shall include informa­ records of all information resulting from hearings ¿hall be circulated in a manner tion on— any monitoring activities required of him designed to inform interested and poten­ (i) The quality and quantity of effluent in his permit; tially interested persons of the discharge to be introduced into such treatment (2) Any records of monitoring activi­ and of the intention to hold a public works, and ties and results shall include for all hearing on the matter of a permit being (ii) Any anticipated impact of such samples; issued for the discharge. Procedures for change in the quantity or quality of ef­ (i) The date, exact place, and time of the circulation of public notice shall in­ fluent to be discharged from such pub- sampling; clude at least the following: flciy owned treatment works. (ii) The dates analyses were per­ (1) Notice shall be circulated within . , Th® permittee shall require any formed; the geographical area of the proposed naustrial user of such treatment works (iii) Who performed the analyses; discharge; such circulation shall include /? C01flply with the requirements of sec- (iv) The analytical techniques/meth- any one of the following: a« .204(b), 307, and 308 of the Act. ods used; and, (i) Posting in the post office and pub­ Any industrial user subject to the re­ (v) The results of such analyses; lic places of the municipality nearest the quirements of section 307 of the Act shall (3) The permittee shall be required to premises of the applicant in which the o w /^ i^ d ky the permittee to prepare retain for a minimum of 3 years any effluent source is located; d transmit to the Regional Adminis- records of monitoring activities and re­ (ii) Posting near the entrance to the rator periodic notice (over intervals not sults including aH original strip chart applicant’s premises and in nearby exceed 9 months) of progress toward recordings for continuous monitoring in- places; and,

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 1368 PROPOSED RULE MAKING

(iii) Publishing in local newspapersrequired by section 401 of the Act wish (b) Initiation of hearings. Any af­ and periodicals, or, if the local newspa­ to alter into agreements for joint public fected person may within 30 days of the per is not a daily newspaper, in a daily notice concerning proposed discharges, first day of public notice of an applica­ newspaper of general circulation; the Regional Administrator may, after tion for a permit pursuant to § 125.32 re­ (2) Notice shall be mailed to any per­ consulting with Headquarters, approve quest the Regional Administrator to hold son or group upon request; and mutually satisfactory agreements and a public hearing to consider the issuance (3) The Regional Administrator shall such agreements, once published in the of a permit under this part. Upon receipt add the name of any person or group F ederal R egister, shall supersede this of any such request, stating with particu­ upon request to a mailing list to receive § 125.32. larity any objections to the issuance of copies of notices for all applications (e) Any public notice issued under thisthe proposed permit, and the issues of within the State or within a certain geo­ section may describe more than one dis­ fact, law, or policy which are proposed to graphical area. charge except that each discharge will be considered at the hearing, the Re­ (4) Regional Administrators shall no­ be described separately. gional Administrator shall fix a time and place for the public hearing. After the tify other appropriate government agen­ § 125.33 Fact sheets. cies of each complete application for a filing of the initial request, any other permit and of public hearings and shall Prior to issuance of public notice the affected person may file a request under provide such agencies an opportunity to Regional Administrator shall prepare this subsection. Regional Administrators submit their written views and recom­ and, following public notice, shall send, shall deny any requests not meeting the mendations on each complete applica­ upon request to any person a fact sheet requirements of this subsection. Such tion. with respect to the application described denial shall be accompanied by a brief (b) (1) Where notice is being given in the public notice. The contents of such written statement setting forth the rea­ of an application for a permit, the Re­ fact sheets shall include at least the fol­ sons for his denial. gional Administrator shall provide a pe­ lowing information: (c) Location of hearings. All proceed­ riod of not less than thirty (30) days fol­ A sketch or detailed description of ings conducted pursuant to this section lowing the date of the public notice dur­ the location of the discharge described in shall be held in the State of the dis­ ing which time interested persons may the application; charge or other appropriate area. submit their written views concerning (b) A quantitative description of the (d) Notice of hearing. Public notice of the tentative determinations or request discharge described in the application the public hearing shall be given as pro­ that a public hearing be held. All written which includes at least the following: vided for by § 125.32. comments submitted during the 30-day (1) The rate or frequency of the pro­ (e) Presiding Officer. After granting comment period shall be retained by the posed discharge; if the discharge is con­ a public hearing in accordance with par­ Regional Administrator and considered tinuous, the average daily flow in gallons agraph (b) of this section the Regional in the formulation of his final determi­ per day or million gallonsper day; Administrator shall appoint a qualified nations with respect to the application. (2) The average summer and winter person to serve as Presiding Officer for (2) Where notice is being given of atemperatures of the discharge in degrees such hearing. No official who participated public hearing, the Regional Adminis­ Fahrenheit; and, in the development of proposed condi­ trator shall provide a period of not less (3) The average daily discharge in tions for the permit to be considered at than 30 days following the date of the pounds per day of any pollutants which such hearing may serve as Presiding public notice during which time inter­ are present in significant quantities or Officer. ested persons may prepare themselves which are subject to limitations or pro­ (f) Hearing file. Upon his appointment for the hearing. hibition under sections 301, 302, 306, or pursuant to paragraph (e) of this sec­ (c) The contents of public notice shall 307 of the Act and regulations published tion, the Presiding Officer shall estab­ include at least the following: thereunder; lish a hearing file. The hearing file shall (1) Name, address, phone number of (c) The tentative determinations re­ include the permit application and sup­ Regional Office issuing the public no­ quired under § 125.31; porting data, the staff recommendation tice; (d) A brief citation, including a brief for proposed permit conditions, the re­ (2) Name and address of each appli­ identification of the uses for which the quest or requests for the hearing, any cant; receiving waters have been classified, of data or material submitted in justifica­ (3) Brief description of each appli­ the water quality standards and effluent tion thereof, and such other material as cant’s activities or operations which re­ standards and limitations applied to the the Presiding Officer deems relevant to sult in the discharge described in the proposed discharge; and, the hearings. The hearing file shall be application (e.g., municipal waste treat­ (e) A more detailed description of the available for inspection by any person ment plant, steel manufacturing, drain­ procedures for the formulation of final subject to the requirements of § 125.35. age from mining activities); determinations than that given in the (g) Representation. At the hearing, (4) Name of waterway to which each public notice including: any party may appear on his own behalf, discharge is made and a short descrip­ (1) The term of the 30-day comment or may be represented by counsel or by tion of the location of each discharge on period required by § 125.32 and the ad­ any other authorized representative. the waterway; - dress where comments will be received; (h) Prehearing conferences. (1) In the (5) A statement of the Regional staff’s (2) Procedures for requesting a public discretion of the Presiding Officer, pre- I tentative determination to issue or deny hearing and the nature thereof; and hearing conferences may be held prior I a permit for the discharge described in (3) Any other procedures by which the to any hearing or hearing on appeal held I the application; public may participate in the formulation pursuant to this section. All parties will (6) A brief description of the proce­ of the final determinations. be given reasonable notice of not less dures for the formulation of final deter­ § 125.34 Hearings and appeals. than 10 days of the time and location of minations, including the 30-day com­ the conference. In the discretion of the ment period required by paragraph (b) (a) Definitions. (1) “Party” means Presiding Officer, persons other than | of this section and any other means by any affected person who files a request parties may be included in attendance. which interested persons may influence for a hearing meeting the requirements At the conference, the Presiding Officer or comment upon those determinations; of paragraph (b) of this section and may: and whose request is not denied. (i) Obtain stipulations and admis­ (7) Address and phone number of (2) “Affected person” means the En­ sions, and identify disputed issues of premises at which interested persons vironmental Protection Agency; the fact and law. may obtain further information, request water pollution control agency of any (ii) Mark and admit exhibits. a copy of the fact sheet described in State or States in which the discharge (iii) Set a hearing schedule which in­ § 125.33, and inspect and copy all ap­ or proposed discharge shall originate, or cludes definite or tentative times for as plication forms and related documents. which may be affected by such discharge; many of the following as are deemed (d) If individual States In connec­ the applicant; and any foreign country, necessary by the Presiding Officer: tion with applications for certification or other interested person or persons. (A) Oral and written statements.

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 11, 1973 PROPOSED RULE MAKING 1369

(B) Submission of written direct testi­ trator with regard to the application for adequate opportunity to rebut opposing mony as required by the Presiding a permit unless within 10 days of the evidence. Officer. date of the Presiding Official’s decision, To insure fair and expeditious con­ (C) Oral direct and cross-examination, any party files with the Regional Ad­ sideration of all material issues, the if any is permitted. ministrator a request for a hearing on Presiding Officer shall have discretion to (D) Oral argument, if any is permitted. appeal or for findings and opinion. If no limit the time allowed for examination (E) Submission of proposed findings such request is filed, the Regional Ad­ and cross-examination. The Presiding of fact. ministrator shall issue the permit Officer may exclude any testimony not (2) The results of any conference shall promptly with conditions established by relevant to the issues specified by the be reduced to writing by the Presiding the Presiding Officer or shall deny the Administrator pursuant to paragraph Officer and made part of the hearing file. permit according to the decision of the (k) (2) of this section. (1) Conduct of hearings. (1) Hearings Presiding Officer. (6) Hearings on appeal shall be re­ shall be conducted by the Presiding Offi­ (k) Availability of hearing on appeal. ported verbatim. Copies of transcripts of cer in an orderly but expeditious man­ (1) Any party requesting a hearing on proceedings may be purchased by any ner. Any party shall be permitted to sub­ appeal shall submit his request in writ­ person from the Environmental Protec­ mit oral or written statements concern­ ing to the Administrator through the tion Agency. ing the proposed permit, and to present Regional Administrator. Any such re­ (7) All written statements, charts, views and recommendations thereon. In quest shall set forth in détail the basis of tabulations, and similar data offered in the discretion of the Presiding Officer, the request, and shall identify any ex­ evidence at the hearing shall, upon a other persons may be allowed to present pert witnesses which are requested to showing satisfactory to the Presiding oral statements for the hearing record. testify, and any issues of fact concern­ Officer of their relevancy, and material­ All persons will be allowed to present ing the proposed discharge with respect ity, be received in evidence and shall written statements for the hearing rec­ to which cross-examination of further constitute a part of the hearing file. ord. testimony of witnesses, or further evi­ (8) Parties' shall have the right to (2) The Presiding Officer shall have dence or argument in rebuttal is neces­ present for the record oral argument, and discretion to establish reasonable limits sary. The Administrator shall grant the argument or evidence in rebuttal, within upon the time allowed for statements request for a hearing on appeal if he reasonable time limits set by the Presid­ of witnesses, and for arguments of par­ determines : ing Officer. ties, or their counsel or representatives. (1) That the request presents material (9) The decision of the Presiding Offi­ (3) In view of the need for an expe­ 'issues of fact relating to the issuance of cer in a hearing on appeal shall be ditious hearing, and the cross-examina­ the proposed permit; and issued according to the provisions of tion provided in paragraph (1) (5) of this (ii) That such issues require cross- paragraph (j) of this section. section, no cross-examination shall be examination or further evidence, testi­ (m) Official notice. In any hearing or mony, or argument. permitted in hearings held pursuant to hearing on appeal under this section, paragraph (b) of this section, except as (2) Upon granting a request for a the Presiding Officer may take official provided in paragraph (i) (6) of this hearing on appeal the Administrator section, notice of any general, technical or scien­ shall specify in writing those issues tific fact or material within the special­ (4) Hearings shall be reported verba­ which meet the requirements of para­ ized knowledge of the Environmental tim. Copies of transcripts of proceedings graphs (k) (1) (i) and (ii) of this section. Protection Agency. All parties shall be may be purchased by any person from (l) Conduct of hearing on appeal. (1) notified of any fact or material so The Administrator shall designate an of­ the Environmental Protection Agency. noticed, and shall be afforded an oppor­ (5) All written statements, charts, ficial of the Environmental Protection tunity to contest such facts or material. Agency to serve as Presiding Officer for tabulations, and similar data offered in (n) Findings of fact and opinion. At evidence at the hearing shall, upon a the hearing on appeal. No official who participated in the initial hearing and any time prior to 10 days following the showing satisfactory to the Presiding issuance of the decision of the Presiding Officer of their relevancy and materiality, decision under this section, or who par­ ticipated in the development of proposed Officer in a hearing or hearing on ap­ be received in evidence and shall consti­ peal held pursuant to this subpart, any tute a part of the hearing file. conditions for the permit considered at such hearing, may serve as Presiding party may request the Presiding Officer (6) In the discretion of the Presiding Officer on appeal. to issue findings of fact and an opinion with regard to issues raised at the hear­ Officer exercised before the hearing be­ (2) The Presiding Officer shall con­ gins, the hearing may be held in con­ duct the hearing on appeal in an orderly ing or hearing on appeal. The party shall formity with the requirements of para- but expeditious manner. The parties may specify the issues on which findings and graphs (1), (m), (n) of this section. If offer oral or written testimony, subject an opinion are requested. In the discre­ the hearing is held in conformity with tion of the Presiding Officer, parties may to the exclusion by the Presiding Officer such requirements, no request for a hear­ be required to submit proposed findings of irrelevant, immaterial, and repetitious ing on appeal may be filed under para­ evidence. of fact within a period of not more than 20 days. The Presiding Officer shall issue graphs (k) and (n) of this section and (3) The hearing on appeal shall be any issues specified in the requests for his findings of fact and opinion no later hearings shall be considered. confined to those issues specified by the than 20 days following the receipt of a Administrator pursuant to paragraph request for such findings and opinion un­ (j ) Initial decision. On the basis of t] (k) (2) of this section. hearing file and the evidence adduced less he requires the submission of pro­ the hearing, the Presiding Officer shi (4) Witnesses shall be required to posed findings of fact. Where the sub­ make oath or affirmation. determine whether the proposed pern mission of proposed findings of fact are conditions meet the requirements of t: (5) Witnesses may, in the discretion required the Presiding Officer shall issue -J*. determines that the propos of the Presiding Officer, be examined or his findings of fact and opinion no later conditions do not meet such requir cross-examined by the Presiding Officer, than 20 days following the énd of the ments, he shall set forth such conditio the parties, or their representatives. period he specified for receipt of such ? he determines are necessary to cor Among the factors to be considered by proposed findings. The findings of fact cv^if^h the requirements of the Act, the Presiding Officer in determining and opinion shall become part of thè . a~: determine that the permit shou whether or not to allow cross-examina­ record, and shall be made available to all d^Aled- The decision of the Presi tion are : parties participating in the hearing or mg Officer shall be provided to all pa (i) Whether witness credibility, verac­ hearing on appeal. In the case of a hear­ and he available to the public with ity, and demeanor are relevant to a fair ing under paragraph (b) of this section, days of the completion of the hearir any party may submit a request for a resolution of factual issues; and hearing on appeal within 10 days follow­ Such initial decision shall constitute t: (ii) Whether, without cross-examina­ ing the issuance of the findings and al decision of the Regional Admini tion, parties would otherwise have an opinion.

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, JANUARY 1>, 1973 No. 7—pt. n i-— 2 1370 PROPOSED RULE MAKING

§ 125.35 Public access to information. (c) Notwithstanding paragraphs (a) (b) Each affected State shall be af­ and (b) of this section, the Adminis­ forded an opportunity to submit written (a) Certifications pursuant to section trator, when the national security re­ recommendations to the Regional Ad­ 401 of the Act, the comments of all gov­ quires, may withhold any information ministrator which the Regional Admin­ ernmental agencies on a permit applica­ from the public. istrator may incorporate into the permit tion, and all information and data pro­ if issued. Should the Regional Adminis­ vided by an applicant or a permittee Subpart E— Miscellaneous trator fail to incorporate any written identifying the nature and frequency of § 125.41 Objections to permit by an­ recommendations thus received, he shall a discharge shall be available to the pub­ provide to the affected State or States a lic without restriction. All other informa­ other State. (a) Whenever following receipt of the written explanation of his reasons for tion (other than effluent data) which failing to accept any of the written may be submitted by an applicant in certification described in § 125.14 the Regional Administrator determines that recommendations. connection with a permit application or (c) Where an interstate agency has which may be furnished by a permittee a discharge may affect the quality of the waters of any State other than the State authority over waters that may be af­ in connection with required periodic re­ fected by the issuance of a permit, it shall ports shall also be available to the public that made the certification, the Regional Administrator shall, within 30 days of be afforded to rights of a State pursuant unless the applicant or permittee specifi­ to paragraphs (a) and (b) of this section. cally identifies and is able to demonstrate such certification, notify such other to the satisfaction of the Regional Ad­ State and the applicant of his determina­ § 125.42 Other legal action. ministrator or his authorized representa­ tion and shall transmit to such other Except as provided in section 402(k) of tive that the disclosure of such informa­ State a copy of the fact sheet described the Act, the mere filing of an application tion or a particular part thereof to the in § 125.22 and upon request a copy of for a permit to discharge into waters cov­ general public would divulge methods or the application. If such other State de­ ered by the NPDES will not preclude processes entitled to protection as trade termines that the discharge will affect legal action in appropriate cases for secrets. the quality of its waters so as to violate violation of the Federal Water Pollution (b) Where the applicant or permittee any water quality requirement in such Control Act. Hie institution of either a is able to demonstrate to the satisfaction State such other State shall have a period civil or criminal action by the United of the Regional Administrator or his of 60 days beginning with the date notice States may not preclude the acceptance authorized representative that the dis­ from the Regional Administrator was re­ or continued processing of a permit closure of the information or a particular ceived within which to notify the Re­ application. part (other than effluent data) thereof gional Administrator in writing of its would result in methods or processes en­ objection to the issuance of a permit and § 125.43 Environmental impact state­ titled to protection as trade secrets being to request a public hearing on the objec­ ments. divulged, the Regional Administrator tion. Upon receipt of such request, the Section 511(c) (1) of the Act provides shall treat the information or the par­ Regional Administrator shall hold a that with the exception of permits for hearing in conformity with § 125.34 ticular part (other than effluent data) new sources as defined in section 306, no herein. Based upon the record, the Re­ action of the Administrator taken pur­ as confidential and not release it to any gional Administrator shall issue a per­ suant to the Act shall be deemed a major unauthorized person. Such information mit: Provided, That if the imposition of Federal action significantly affecting the may be divulged to other officers, em­ conditions cannot assure compliance with quality of the human environment within ployees, or authorized representatives of the applicable water quality requirements the meaning of the National Environ­ the United States concerned with carry­ of all of the involved States, the Regional mental Policy Act of 1969. ing out the Act. Administrator shall deny the permit. [PR Doc.73-569 Piled 1-10-73:8:45 am}

FEDERAL REGISTER, VOL. 38, NO. 7— THURSDAY, ¡JANUARY I t , 1373

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