NOMINATIONS 1970 HEARINGS BEFORE THE COMMITTEE ON COMMERCE UNITED STATES SENAIE NINETY-FIRST CONGRESS SECOND SESSION ON NOMINATIONS OF AUGUST 25, 1970 RUDOLPH A. PETERSON, TO BE A MEMBER OF THE BOARD OF DIRECTORS OF THE COMMUNICATIONS SATELLITE CORPORATION JOHN HAY WHITNEY, JACK WRATHER, SAUL HAAS, FRANK SCHOOLEY, AND TOM MOORE, TO BE MEMBERS OF THE BOARD OF DIRECTORS OF THE CORPORATION FOR PUBLIC BROADCASTING iSEPTEMBER 30, 1970 VDR. GEORGE F. MANSUR,JR., TO BE DEPUTY DIRECTOR, OFFICE OF TELECOMMUNICATIONS POLICY WILLARD J. SMITH, TO BE ASSISTANT SECRETARY OF TRANSPOR- TATION FOR SAFETY AND CONSUMER AFFAIRS OCTOBER 1 AND 6, 1970 DAVID S. DENNISON, JR., TO BE A COMMISSIONER OF THE FEDERAL TRADE COMMISSION Serial No. 91-89 Printed for the use of the Committee on Commerce U.S. GOVERNMENT PRINTING OFFICE 52478 WASHINGTON : 1970 COMMITTEE ON COMMERCE WARREN G. MAGNUSON,Washington, Chairman JOHN 0. PASTORE,Rhode Island NORRIS COTTON,New Hampshire VANCE HARTKE,Indiana HUGH SCOTT,Pennsylvania PHILIP A. HART,Michigan WINSTON PROUTY,Vermont HOWARD W. CANNON,Nevada JAMES B. PEARSON,Kansas RUSSELL B. LONG,Louisiana ROBERT P. GRIFFIN, Michigan FRANK E. MOSS, Utah HOWARD H. BAKER, JR., Tennessee ERNEST F. HOLLINGS,South Carolina CHARLES E. GOODELL,New York DANIEL K. INOUYE,Hawaii MARLOW W. COOK,Kentucky JOSEPH D. TYDINGS,Maryland WILLIAM B. SPONG, JR., Virginia FREDERICK J. LORDAN, Staff Director MICHAEL PERTSCHUK, Chief Counsel ARTHUR PANKOPF, Jr., Minority Staff Director HENRI F. RUSH, Jr., Minority Stab' artallice (XI) CONTENTS Page Opening statements of Senator Pastore 1, 23 CHRONOLOGICAL LIST OF WITNESSES AUGUST 25, 1970 Haas, Saul, statement by 13 Biographical sketch 13 Moore, Thomas W., statement by 21 Biographical sketch 20 Peterson, Rudolph A., statement by 2 Biographical sketch 3 Schooley, Frank, statement by 16 Biographical sketch 15 Whitney, John Hay,statement by 18 Biographical sketch 17 Wrather, J. D., Jr., statement by 20 Biographical sketch 18 SEPTEMBER 30, 1970 Mansur, Dr. George Frank, Jr., statement by 30 Biographical sketch 30 Prepared statement 32 Symington Hon. Stuart, U.S. Senator from Missouri, letter of Septem- ber 30, 1970 31 Tower, Hon. John G., U.S. Senator from Texas, letter of September 29, 1970 31 Opening statement by Senator Spong 35 Smith, Adm. Willard J., statement by 38 Biographical sketch 36 OCTOBER 1, 1970 Opening statement by Senator Hart 45 Dennison, David S., Jr., statement by 49 Biographical sketch 47 Saxbe, Hon. William B., U.S. Senator from Ohio 47 OCTOBER 6, 1970 Cain, Mrs. Clarissa, president, Consumers Education & Protective Associa- tion International, Inc., Philadelphia, Pa 70 Dempsie, Garlen, chairman, Consumers Education & Protective Asso- ciation International, Inc 66 Rice, Mrs. Florence M., president, Harlem Consumer Education Council 68 Weiner, Max, executive director, Consumer Education and Protective Association 77 Prepared statement 84 ADDITIONAL ARTICLES, LETTERS, AND STATEMENTS Angevine, Erma, executive director, Consumer Federation of America, let- ter of October 4, 1970 63 Bryant, Agnes, telegram 65 Consumer Federation of America, press release 58 Dennison, David S., Jr., letter 84 (m) Iv Page Executive Order 11556, article from the Federal Register 26 Frazier, Howard, president, Consumer Federation of America, letters of: October 5, 1970 64 September 31, 1970 64 September 8, 1970 74 Magnuson, Hon. Warren G., chairman, Senate Commerce Committee, let- ter of September 1, 1970 40 Reorganization Plan No. 1 of 1970, message from the President 23 Rice, Florence, president, Harlem Consumer Education Committee, let- ter of September 26, 1970 65 Shapiro, Esther K., consumer affairs specialist, telegram of October 5, 1970 65 Volpe, Hon. John, Secretary, Department of Transportation, letter of Sep- tember 9, 1970 41 Whitehead, Dr. Clay T., Director, Office of Telecommunications Policy, letter of November 23, 1970 32 Young, Hon. Stephen M., U.S. Senator from Ohio, letter of October 6, 1970_ 65 RUDOLPH A. PETERSON, TO BE A MEMBER OF THE BOARD OF DIRECTORS OF THE COMMUNICATIONS SATELLITE CORP.; AND JOHN HAY WHITNEY, JACK WRATH:ER, SAUL HAAS, FRANK SCHOOLEY, AND TOM MOORE, TO BE MEMBERS OF TILE BOARD OF DIRECTORS OF THE CORPORATION FOR PUBLIC BROADCASTING TUESDAY, AUGUST 25, 1970 U.S. SENATE, COMMITTEE ON COMMERCE, Washington, D.C. The committee met at 2:35 p.m. in room 5110, New Senate Office Building,Hon. John O.Pastore, presiding. Present: Senators Pastore, Magnuson (chairman of the committee), Baker,and Goodell. Senator PASTORE. Having passed by 5 minutes the hour of 2:30, I think we can proceed. I have a very short opening statement. OPENING STATEMENT OF SENATOR PASTORE Senator PASTORE. Today the committee considers the nomination of Mr. Rudolph A. Peterson to be a member of the Board of Directors of the Communications Satellite Corp., and the nominations of Mr. John Hay Whitney,Mr. Jack Wrather,Mr. Saul Haas, Mr. Frank Schooley, and Mr. Tom Moore to be members of the Board of Directors of the Corporation for Public Broadcasting. Two of the gentlemen—Mr. Haas and Mr. Schooley—are reappointments, both having served with distinction on the Board of Directors of the Corporation for Public Broadcasting since its creation. During the course of this hearing, I would hope that they will give the committee their assessment of the Corporation's progress and future plans, or submit your views for in- clusion in the record at a later date. The Communications Satellite Corp. was created by the Communica- tions Satellite Act of 1962,and the Corporation was incorporated under District of Columbia law on February 1,1963. Under the provisions of that act three of the 15-member Board of Directors of the Corporation are appointed by the President with the advice and consent of the Senate. Mr. Peterson has been appointed to the Board of Directors by the President to succeed Mr. William Hagerty. The advances in communications technology in the post-World War II era have been nothing short of stupendous, and none is greater than the ability to communicate via satellite. From the beginning the United States, through its chosen instru- ment in the international field—the Communications Satellite Corp.— has been the leading developer and user of this new technology—all countries of the world have been its beneficiaries, however. (1) 2 Currently the United States and other member nations of the Inter- national Telecommunications Satellite Consortium are meeting in a plenipotentiary conference to adopt definitive arrangements for a global satellite system. I have repeatedly urged that the United States not. give away its birthright in these negotiations, and I mention it again today not only to emphasize my concern, but to impress its im- portance on Mr. Peterson and all members of the board of directors of the corporation. Despite our leadership in international satellite communications, a domestic satellite system for the United States is still not a reality. The reasons, of course, are not technological, they have to do with matters of policy. Nevertheless, our failure to have such a system is a loss to the _American people. Recently the FTC has indicated that it is prepared to process appli- cations for domestic satellite systems and I would hope that soon the people of our country will have the benefits of a domestic system. No less important, and in its own way just as innovative, is the Cor- poration for Public Broadcasting created by the Public Broadcasting Act of 1967. The corporation is a federally chartered, independent, nonprofit corporation whose mandate is to encourage and facilitate the expansion and development of noncommercial broadcasting and pro- gram diversity in that medium. The board of directors consists of 15 members, appointed by the President, with the advice and consent of the Senate. Not more than eight may be members of the same political party. All are distinguished Americans, from the business, broadcast, and educational sectors of our society. And,I must say, the nominees before us today are in that same illustrious mold. The Corporation for Public Broadcasting—its directors and officers, and the men and women who have devoted their time and talent to its operation—have illustrated once again that American talent and inge- nuity, if given the necessary, support and encouragement, cannot only mirror the ideal but achieve it. The potential of public broadcasting is, of course, far from being realized. Essential to its full development is a plan for long-range financing. This committee has urged this administration and its prede- cessor to submit such a plan. Again—just as with our failure to develop a domestic satellite system—the American people are the losers when we fail to utilize our potential. I again wish to express my hope that during the course of these hear- ings all of the nominees will feel at liberty to express their views and anyideas or opinions they might have. Mr. Rudolph Peterson will be the first one we will call upon and then all the nominees of the Corporation for Public Broadcasting in successive order. Mr.Peterson, first of all, we welcome you to this hearing. STATEMENT OF RUDOLPH A. PETERSON Mr.PETERSON. Thank you,sir. Senator PASTORE. We congratulate the President of the United States for the wisdom and the judgment that he has displayed in choosing you. You are an illustrious man of tremendous renown in 3 the banking community and we know, that is the members of this committee know,that you will render distinguished service to this new public service. Mr.PETERSON. Thank you. Senator PASTURE. We have your biography which we will place in the record which is a very imposing one. (The biographical sketch follows:) BIOGRAPHICAL SKETCH OF RUDOLPH A. PETERSON • When Rudolph A. Peterson was born, December 6, 1904, Bank of America was seven weeks old, and had on the books in its single office in San Francisco's North Beach section only $68,761 in deposits.