FE DERAL REGISTER...FE DERAL REGISTER VOLUME 36 NUMBER 80 Saturday, April 24, 1971 Washington, D.C....

FE DERALREGISTERVOLUME 36 NUMBER 80Saturday, April 24, 1971 Washington, D.C.

Pages 7731-7826Part I

(Part II begins on page 7775)

Agendcs in this issue-Agricultural Research ServiceAtomic Energy CommLslonCivil Aeronautics BoardCivil Service CommissionCommerce DepartmentConssmer and Marketing ServiceDefence DepartmentDomestic Commerce BureauEnvironmental Protection AgencyFederal Register Administrative

CommitteeFederal Communications CommissionFederal Power CommizzionFederal Rezerve SystemFederal Trade CommiionFish and Wildlife ServiceFood and Drug AdministrationFood and Nutrition ServiceGeneral Servicez Admin'strationGeological SurveyHealth, Education,

and Welfare Department;Internal Revenue ServiceInterstate Commerce CommissionMaritime AdministrationNarcotics and Dangeroas Drugs BureauNational Highway Tralc Safety

AdministrationNational Oceanic and Atmospherc

AdministrationPackers and Sto-yards

AdministtionSecurltes and EZchange Commission

-Detailed litt of Contents appears inside.

. No. 80-Pt. I- 1

Current White House Releases

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ContentsAGRICULTURAL RESEARCH

SERVICERules and RegulationsBrucellosis; modified certified

areas -....--.........- ----- 7737Hog cholera and other communi-

cable swine diseases; areasquarantined (3 documents).. 7736, 7737

AGRICULTURE DEPARTMENTSee Agricultural Research Serv-

ice; Consumer and MarketingService; Food and NutritionService; Packers and StockyardsAdministration.

ATOMIC ENERGY COMMISSIONNoticesConsolidated Edison Company of

New. York, Inc.; order con-vening conference and eviden-tiary hearing -------------- 7761

Consumers Power Co.; order con-vening evidentiary hearing---- 7761

Consumers' Union et al.; petitionto establish model rules of prac-tice for citizen participating inagency proceedings ..--------- 7761

Vermont Yankee Nuclear PowerCorp.; order confirming orderfor prehearing conference ---- 7761

CIVIL AERONAUTICS BOARDNoticesHearings, etc.:

International Air TransportAssociation -------------- 7761

Royalair Ltd ..- ---- 7762

CIVIL SERVICE COMMISSIONRules and RegulationsEmployee responsibilities and con-

duct; gifts etc.; correction ... 7735Excepted service:

Economic Opportunity Office.-. 7735Inter-American Social Develop-

ment Institute ------------ 7735Navy Department ----------- 7735

COMMERCE DEPARTMENTSee also'Domestic Commerce Bu-

reau; Maritime Administration;National Oceanic and Atmos-pheric Administration.

NoticesDuty-free entry of scientific arti-

cles; decisions on applica-tions:

NYS Institute for Basic Re-search in Mental Retardation. 7760

University of MissourL ------- 7759U.S. production of .soluble coffee;

solicitation of certified informa-tion -------------------- 7760

CONSUMER AND MARKETINGSERVICE

Rules and RegulationsLemons grown in California and

Arizona; handling limitations-- '735Type 62 shade-grown cigar-leaf

tobacco grown in designatedproduction areas of Florida andGeorgia; expenses and rate ofassessment ---------------- 7736

Proposed Rule MakingAilk in Massachusetts-Rhode Is-

land-New Hampshire marketingarea; decision ----- - 7744

DEFENSE DEPARTMENTNoticesSecretary of the Army et al.; dele-

gation of authority regardingcontracts for procurement ofpublic utility services ....... 7759

DOMESTIC COMMERCEBUREAU

Proposed Rule MakingUse of priority ratings for inven-

tory replacement; notice of pro-posed change In time period-- 7751

ENVIRONMENTAL PROTECTIONAGENCY

NoticesShell Chemical Co.; extension of

temporary tolerance ....... 7762

FEDERAL COMMUNICATIONSCOMMISSION

Rules and RegulationsTelevision stations; limitation of

access to programs of more thanone national network; correc-tion -- - 7741

FEDERAL POWER COMMISSIONNoticesHearings, etc.:

Atlantic Richfield Co. et aL___ 7762Boston Gas Co. (2 documents) - 7765Cornutt, Dana P. et al........ 7765MissLsippi River TransmissIon

Corp 77G6Southern Natural Gas Co..... 77G6Southwestem Power Adminis-

tration, Department of In-terior ------- ....----------- 766

FEDERAL REGISTERADMINISTRATIVE COMMITTEE

NoticesHighlights listing; notice of excep-

tions --------------.... -- 7- 1757FEDERAL RESERVE SYSTEMRules and RegulationsCredit to contribute capital to

brokers and dealers; exceptionsto general rule-_, 7738

Proposed Rule MakingCredit to contribute capital to

brokers and dealers ..... 7751

FEDERAL TRADE COMMISSIONProposed Rule MakingLabeling and advertis-ing require-

ments for detergents; notice ofrevlzed and additional hear n _ 7756

FISH AND WILDLIFE SERVICERules and RegulationsJ. Clark Salyer National Wildlife

Refuge, N. D k.; sport fishin-g_ 7742

FOOD AND DRUGADMINISTRATION

Rules and RegulationsAntibiotic drugs; penicllglmine__ 7739Food additives: correction regard-

ing rodium nitrite------ 7739Proposed Rule MakingSterile rodium colistimethate;

propozal regarding certificationrequirements 7752

FOOD AND NUTRITIONSERVICE

NoticesFood Stamp Proram; masi-

mum monthly allowable incomestandards and basis of couponi suance in Ha waii, correction__-. 7759

GENERAL SERVICESADMINISTRATION

NoticesSecretary of Dafense; delegation

of authority- --------- 7767

GEOLOGICAL SURVEYNoticesGeothermal Steam Act of 1970;

known geothermal resource3areas, partial list; correction- 7759

HEALTH, EDUCATION, ANDWELFARE DEPARTMENT

See aLso Food and Dr-ug Admin-istration.

NoticesOffice of M ,anagement; change of

office title 7761INTERIOR DEPARTMENTSce Fish and Wildlife Service;

Geolouical Survey.

INTERNAL RWENUE SERVICERules and RegulationsExcize taxes; election to subject

certain debt obligations to tax- 7739Manufacture of opium for smoh-

ing Purpozes etc.; rezcizsion ofcertain parts; cro s reference 7741

(Cartinuct or. next page)

7733

7734

NoticesGrants of relief regarding fire-

arms:Calderon, Maurice N ---------- 7757Finn, Herbert Jerome --------- 7757Leverett, Paul L ------------- 7758Ruse, Claude A -------------- 7758Vigorito, Antonio ------------ 7758

INTERSTATE COMMERCECOMMISSION

Rules and RegulationsAbandonment of railroad lines-- 7741NoticesCentral Railroad Company of New

Jersey; rerouting or diversion oftraffic ---------------------- 7769

JUSTICE DEPARTMENTSee Narcotics and Dangerous

Drugs Bureau.

MARITIME ADMINISTRATIONProposed Rule MakingProposed method for determina-

tion of construction-differentialsubsidy by type of vessel ------ 7751

CONTENTS

NARCOTICS AND DANGEROUSDRUGS BUREAU

Rules and RegulationsRegulations implementing the

Comprehensive Drug AbusePrevention and Control Act of1970 ----------------------- 7776

NATIONAL HIGHWAY TRAFFICSAFETY ADMINISTRATION

Proposed Rule MakingExtension of time for filing com-

ments regarding:Indirect visibility ------------ 7753Rearview mirrors ------------ 7753

NATIONAL OCEANIC ANDATMOSPHERICADMINISTRATION

NoticesFrostman, James H.; notice of

loan application ------------- 7759

PACKERS AND STOCKYARDSADMINISTRATION

NoticesDale County Swine Breeder's

Assm. et al.; deposting of stoc-yards ---------------------- 7759

SECURITIES AND EXCHANGECOMMISSION

NoticesHearings, etc.:

Brokerage Data ProcessingCorp --------------------- 7707

Columbia Gas System, Ine. etal ------------------------ 7768

Missouri-Kansas Pipe Line Co. 77609

TRANSPORTATION DEPARTMENTSee National Hlghvmy Traffio

Safety Administration.

TREASURY DEPARTMENTSee Internal Revenue Service.

List of CFR Parts AffectedThe 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.

A cumulative guide is published separately'at the end of each month. The guide lists the parts and sections

affected by documents published since January 1, 1971, and specifies how they are affected.

5 CFR213 (3 documents) -------------- 77351001 --------------------------- 7735

7 CFR910 .. ...... ' -------------------- 77351201 --------------------------- 7736

PROPOSED RULES:1001 -------------------------- 7744

9 CFR76 (3 documents) ----------- 7736,773778 ----------------------------- 7737

12 CFR221 ---------------------------- 7738

PROPOSED RULES:

207 --------------------------- 7754220 --------------------------- 7754221 --------------------------- 7754

16 CFRPROPOSED RULES:

434 -----------.--------------- 7756

21 CFR121 ---------------------------- 7739145 ---------------------------- 7739301 ---------------------------- 7778302 ---------------------------- 7778303 ---------------------------- 7778301 ---------------------------- 7778305 ---------------------------- 7778306 ---------------------------- 7778307 -------------------------- 7778308 ---------------------------- 7778311 ---------------------------- 7778312 ---------------------------- 7778315_= -------------------------- 7778316 ---------------------------- 7778320 ---------------------------- 7778330 ---------------------------- 7778

PROPOSED RULES:

148c --------------------------- 7752

26 CFR147 --------------------------- 7739150 ---------------------------- 7741151 ---------------------------- 7741152 --------------------------- 7741

32A CFRPROPOSED RULES:

Ch. VI ------------------------ 7751

46 CFRPROPOSED RULES:

Ch. II ------------------------ '751

47 CFR73 ----------------------------- 7741

49 CFR1121 -------------------------- 7741

PROPOSED RULES:

571 (2 documents) ------------- 7753

50 CFR33 ----------------------------- 7742

7735

Rules and RegulationsTitle 5-ADMINISTRATIVE

PERSONNELChapter I-Civil Service Commission

PART 213-EXCEPTED SERVICE

Department of the NavySection 213.3308 is amended to show

that one position of Special Assistant tothe Special Civilian Assistant to the Sec-retary is excepted under Schedule C. Ef-fective on publication in the FEDERALREGISTER (4-24-71), subparagraph (11)is added to paragraph (a) of § 213.3308as set out below.§ 213.3303 Department of the Navy.

(a) Office of the Secretary. * * *(11) One Special Assistant to the

Special Civilian Assistant to the Secre-tary.(5 U.S.D. 3301, 3302, E.O. 10577; 3 CFR 1954-58 Camp., p. 218)

UhNED STATES CIVI SEaV-ICE COMMISsION,

ESEAL] JAMS C. SPRY,Executive Assistant to

the Commissioners.DR Doc.71-5735 iled 4-23-71;8:47 am]

PART 213-EXCEPTED SERVICEInter-American Social Development

InstituteSection 213.3320 is amended to show

that the following positions are exceptedunder Schedule C: One Private Secre-tary to the General Counsel; one PrivateSecretary to the Director, Office of Oper-ations; and one Private Secretary to theDirector, Office of Resources and Re-search. Effective on publication in theFEDERAL REGISTER, (4-24--71), para-graphs (b), (c), and (d) are added to§ 213.3320 as set out below.§ 213.3320 Inter-American Social Devel-

opment Institute.

(b) One Private Secretary to the Gen-eral Counsel.

(c) One Private Secretary to the Di-rector, Office of Operations.

(d) One Private Secretary to the Di-rector,-Office of Resources and Research.(5 U.S.C. 3301, 3302, E.O. 10577; 3 CFR 1954--58 Camp., p. 218)

UNITED STATES CIVIL SERV-ICE COiMXTSSONT,

[SEAL] JAMMS C. SPRY,Executive Assistant to

the Commissioners.IFR Doc.71-5734 Fred 4-23-71;8:47 am]

PART 213-EXCEPTED SERVICEOrace of Economic Opportunity

Section 213.3373 Is amended to showthat the position of Executive Secretaryis no longer excepted under Schedule C.This section Is further amended to showthat the following positions formerly re-porting to the Executive Secretary nowreport to the Chairman, Planning andReview Committee: Three Special Assist-ants (interdepartmental activities), oneConfidential Staff Assistant (interde-partmental activities), and two Secre-taries (interdepartmental activities).Effective on publication in the FonnALREGISTER, (4-24-71), subparagraph (1)is revoked and subparagraphs (11), (26),and (28) of paragraph (a) are amendedas set out below.§ 213.3373 Office of Economic Oppor-

tunity.(a) Offe of the Dircctor. •(1) [Revoked] * *(11) Three Special Asistants to the

Chairman, Planning and Review Com-mittee (interdepartmental activities).

(26) One Confidential Staff Assistantto the Chairman, Plkning and ReviewCommittee (interdepartmental activi-ties).

(28) Two Confidential Secretaries tothe Chairman, Planning and ReviewCommittee (interdepartmental activi-ties).

(5 U.S.C. 3301, 3302. E.O. 10577; 3 CR1954-53 Camp., p. 218)

UNITED STATES CIVIL SEnV-ICE CoM ssNor;,

[SEAL] JMIEs C. SPRY,Executive Assistant to

the Commissioners.[FR Doo.71-5736 Filed 4-23-71;8:47 am]

PART 1001-EMPLOYEE RESPONSI-BILITIES AND CONDUCT

Gifts, Entertainment, and Favors;Correction

In the FEDERAL REGISTER of Friday,April 9, 1971 (F.R. Doc. 71-4788) on page6875, paragraph (e). of § 1001.735-202,"Decision B-128517 of the ComptrollerGeneral dated March 7, 1907," shouldread "Decision B-128527 of the Comptrol-ler General dated March 7, 1907."

UZrTe STATES CVIL SERV-ICE ColnxssxoN,

[SEAL] JAMEs C. SPAY,Executive Assistant to

the Commissioners.[FR Doc.71-5733 Filed 4-23-71;8:47 am]

Title 7- AGRICULTUREChapter IX-Consumer and Market-

ing Service (Marketing Agreementsand Orders; Fruits, Vegetables,Nuts), Department of Agriculture

IL-man Peg. 4771

PART 910-LEMONS GROWN INCALIFORNIA AND ARIZONA

Limitation of Handling

§ 910.777 Lemon Regulation 477.(a) Findings. (1) Pursuant to the

marketing agreement, as amended, andOrder No. 910, as amended (7 CFR Part910), regulating the handling of lemonsgrown In California and Arizona, effec-tive under the applicable provisions ofthe Agricultural Marketing AgreementAct of 1937, 2s amended (7 U.S.C. 601-674), and upon the basis of the recom-mendations and information submittedby the Lemon Administrative Commit-tee, established und r the said amendedmarketing ogreament and order, andupon other available information, it ishereby found that the limitation ofhandling of such lemons, as hereinafterprovided, will tend to effectuate the de-clared policy of the act.

(2) It is hereby further found that itIs impracticable and contrary to the pub-lic interest to give preliminary noticeengage in public rule-making pro edure,and postpone the effective date of thissection until 30 days after publicationhereof in the FEDm,= RISTzR. (5 U.S.C.553) because the time intervening be-tween the date when information uponwhich this section is based became avail-able and the time when this section mustbecome effective in order to effectuatethe declared policy of the act is ins-ffl-clen, and a reasonable time is permitted,under the circumstances, for prepara-tion for such effective time; and goodcause exists for making the provisionshereof effectve as hereinafter set forth.The committee held an open meetingdurzin the current week, after giving duenotice thereof, to consider supply andmarket conditions for lemons and theneed for regulation; interested personswere afforded an opportunity to submitInformation and views at this meeting;the recommendation and supporting in-formation for regulation during- the pe-riod specified herein were promptlysubmitted to the Department after suchmeeting was held; the provis-ions of thissection, including Its effective time, areIdentical with the aforesaid recommen-dation of the committee, and informa-tion concerning such provisions and

FEDERAL REGISTER, VOL 36, NO. S0-SATURDAY, APRIL 24, 1971

RULES AND REGULATIONS

effective time has been disseminatedamong handlers of such lemons; it isnecessary, in order to effectuate the de-clared policy of the act, to make thissection effective during the period hereinspecified; and compliance with this sec-tion will not require any special prepara-tion on the part of persons subject heretowhich cannot be completed on or beforethe effective date hereof. Such commit-tee meeting was held on April 20, 1971.

(b) Order. (1) The respective quanti-ties of lemons grown in California andArizona which may be handled duringthe period April 25, 1971, through May 1,1971, are hereby fixed as follows:

(I) District 1: 1,000 Cartons;(ii) District 2: 224,000 Cartons;(iII) District 3: Unlimited.(2) As used in this section, "handled,"

"District 1," "District 2," "District 3,"and "carton". have the same meaning aswhen used in the said amended market-ing agreement and order.(Sees. 1-19, 48 Stat. 31, as amended; 7 U.S.C.601-674)

Dated: April 23, 1971.

PAuL A. NICHOLSON,Deputy director, Fruit and Veg-

etable Division, Consumer andMarketing Service.

[FR Doc.71-5882 Filed 4-23-71; 11:25 am]

Chapter XI-Consumer and Market-ing Service (Marketing Agreementsand Orders: Miscellaneous Com-modities), Department of Agricul-ture

PART 1201-TYPE 62 SHADE-GROWNCIGAR-LEAF TOBACCO GROWN INDESIGNATED PRODUCTION AREAOF FLORIDA AND GEORGIA

Subpart-Expenses and Rate ofAssessment

Notice was published in the FEDERALREGISTER on March 31, 1971 (36 F.R.5917), that there were under considera-tion proposals regarding expenses of theControl Committee (established underthe Amended Marketing Agreement andAmended Order No. 195 (7 CFR Part1201)) regulating the handling of Type62 shade-grown cigar-leaf tobacco grownin designated production area of Floridaand Georgia and related rate of assess-ment for the fiscal period ending Jan-uary 31, 1972. The amended marketingagreement and amended order are effec-tive under the Agricultural MarketingAgreement Act of 1937, as amended (7U.S.C. 601 et seq.).

After consideration of all relevant mat-ters presented, including the aforesaidnotice, it is hereby found as follows withrespect to the expenses of the ControlCommittee for the fiscal period endingJanuary 31, 1972, and the related assess-ment rate:

§ 1201.300 Expenses and rate of assess-ment for the fiscal period ending Jan-uary 31, 1972.

(a) Expenses: Expenses in the amountof $7,200 are reasonable and likely to beincurred by the Control Committee forits maintenance and functioning duringthe fiscal period ending January 31, 1972.

(b) Rate of assessment. The rate ofassessment which each handler shall pay,in accordance with the applicable pro-visions of said amended marketing agree-ment and amended order, as his pro ratashare of the aforesaid expenses is herebyfixed at $1.60 per 1,000 pounds of tobaccohandled by such handler as the firsthandler thereof during the fiscal periodending January 31, 1972.

(c) Terms used in this section shallhave the same meaning as when usedin said amended marketing agreementand amended order.

It is hereby further found that goodcause exists for not postponing the effec-tive time of this action until 30 daysafter publication in the FEDERAL REGISTER(5 U.S.C. 553) in that (a) the relevantprovisions of said amended marketingagreement and amended order requiethat the rate of assessment fixed for aparticular fiscal period shall be applicableto all assessable tobacco handled duringsuch fiscal period, and (b) the currentfiscal period began February 1, 1971, andthe rate of assessment herein fixed willautomatically apply to all such assess-able tobacco beginning with such date.(Sees. 1-19. 48 Stat. 31, as amended; 7 U.S.C.601-674)

Dated: April 21, 1971.JAcK THomAsoN,

Director, Tobacco Division,Consumer and Marketing Service.

[FR Doc.71-5719 Filed 4-23-71;8:46 am]

Title 9- ANIMALS ANDANIMAL PRODUCTS

Chapter I-Agricultural ResearchService, Department of Agriculture

SUBCHAPTER C-INTERSTATE TRANSPORTATIONOF ANIMALS AND POULTRY

[Docket No. 71-546]

PART 76-HOG CHOLERA ANDOTHER COMMUNICABLE SWINEDISEASES

Areas QuarantinedPursuant to provisions of the Act of

May 29, 1884, as amended, the Act ofFebruary 2, 1903, as amended,. the Actof March 3, 1905, as amended, the Actof September 6, 1961, and the Act ofJuly 2, 1962 (21 U.S.C. 111-113, 114g,115, 117, 120, 121, 123-126, 134b, 134f),Part 76, Title 9, Code of Federal Regula-tions, restricting the interstate move-ment of swine and certain products

because of hog cholera and other com-municable swine diseases, Is herebyamended in the following respects:

1. In § 76.2, the reference to the Statesof New Mexico and Virginia In the intro-ductory portion of paragraph (o) andparagraphs (e) (6) relating to the Stateof New Mexico and (e) (11) relating tothe State of Virginia are deleted, andparagraph (W is amended by addingthereto the names of the States of NewMexico and Virginia.

2. In § 76.2, In paragraph (0) (10)relating to the State of Texas, subdivision(i) relating to El Paso, Harris, Galves-ton, Liberty, Montgomery, and SanJacinto Counties is amended to read:

(10) Texas. (i) All of Harris, Galves-ton, Liberty, Montgomery, and SanJacinto Counties.(Secs. 4-7, 23 Stat. 32, as amended, cesn. 1,2, 32 Stat. 791-702, as amended, s.e 1-4,33 Stat. 1264, 1265, as amended, sco. 1, 76Stat. 481, sees. 3 and 11, 70 Stat, 130, 132:21 U.S.C. 111, 112, 113, l14g, 110, 117, 120,121, 123-126, 134b, 134f; 29 I.R. 10210, aSamended)

Effective date. The foregoing amend-ments shall become effective uponissuance.

The amendments exclude a portion ofDona Ana County, N. Mex.; a portionof Isle of Wight County, Va,; and ElPaso County, Tex., from the areasquarantined because of hog cholera,Therefore, the restrictions pertaining tothe Interstate movement of swine andswine products from or through quaran-tined areas as contained In 9 CFR Part76, as amended, will not apply to theexcluded areas, but will continue to applyto the quarantined areas described In§ 76.2(e). Further, the restrictions per-taining to the Interstate movement ofswine and swine products from non-quarantined areas contained In said Part76 will apply to the excluded areas. Noareas In the States of New Mexico andVirginia, or in El Paso County, Tex.,remain under the quarantine.

The amendments add New Mexico andVirginia to the list of hog cholera eradi-cation States In § 76.2(f), and the spe-cial provisions pertaining to the Inter-state movement of swine and swine prod-ucts from or to such eradication Statesare applicable to New Mexico andVirginia.

Insofar as the amendments relievecertain restrictions presently imposedbut no longer deemed necessary to pre-vent the spread of hog cholera, theymust be made effective immediately tobe of maximum benefit to affected per-sons. Insofar as they impose restrictions,they should be made effective promptlyin order to prevent the spread of hogcholera. It does not appear that publicparticipation In this rule making pro-ceeding would make additional relevantinformation available to this Depart-ment. Accordingly, under the adminis-trative precedure provisions In 5 U.S.C.553, it is found upon good cause that

FEDERAL REGISTER, VOL 36, NO. 80-SATURDAY, APRIL 24, 1971

7736


notice and other public procedure withrespect to the amendments are imprac-ticable and unnecessary, and good causeis found for making them effective lessthan 30 days after publication in theFEDERAL REGISTER.

Done at Washington, D.C., this 21stday of April 197L

F. J. MULEazN,Acting Administrator,

Agricultural Research Service.[FR Doo.71-5749 Filed 4-23-71;8:49 am]

[Docket No. 71-547]


Areas Quarantined

Pursuant to provisions of the Act ofMay 29, 1884, as amended, the Act ofFebruary 2, 1903, as amended, the Actof March 3, 1905, as amended, the Actof September 6, 1961, and the Act ofJuly 2, 1962 (21 U.S.C. 111-113, 114g, 115,117, 120, 121, 123-126, 134b, 1341), Part76, Title 9, Code of Federal Regulations,restricting the interstate movement ofswine and certain products because of-hog cholera and other communicableswine diseases, is hereby amended in thefollowing respects:

1. In § 76.2, the reference to the Stateof Arkansas in the introductory portionof paragraph (e) and paragraph (e) (1)relating to the* State of Arkansas aredeleted, and paragraph (f) is amended byadding thereto the name of the State ofArkansas.

2. In § 76.2, in paragraph (e) (7) relat-ing to the State of North Carolina, sub-division (i) relating to Forsyth Countyis deleted.(Sees. 4-7. 23 Stat. 32, as amended, sees. 1,2, 32 Stat. 791-792, as amended, secs 1-4,33 Stat. 1264, 1265, as adiaended, sec. 1, 75Stat. 481, secs. 3 and 11, 76 Stat. 130, 132;21 U.S.C. 111, 112, 113, ll4g, 115, 117, 120,121, 123-126, 134b, 134f; 29 F.R. 16210, asamended)

Effective date. The foregoing amend-ments shall become effective upon issu-ance.

The amendments exclude a portion ofMississippi County. Ark., and a portionof Forsyth County, N.C., from the areasquarantined because of hog cholera.Therefore, the restrictions pertaining tothe interstate movement of swine andswine products from or through quaran-tined areas as contained in 9 CFR Part76, as amended, will not apply to the ex-cluded areas, but will continue to applyto the quarantined areas described in§ 76.2(e). Further, the restrictions per-taining to the interstate movement ofswine and swine products from non-.quarantined areas contained in said Part76 will apply to the excluded areas. Noareas in the State of Arkansas or in:Forsyth County, N. remain under thequarantine.

The amendments add Arkansas to thelist of hog cholera eradication States in§ 762(f), and the special provisions per-

taining to the interstate movement ofswine and swine products from or to sucheradication States are applicable toArkansas.

Insofar as the amendments relieve cer-tain restrictions presently Imposed butno longer deemed necessary to preventthe spread of hog cholera, they must bemade effective Immediately to be of max-imum benefit to affected perzons. Insofaras they Impose restrictions, they shouldbe made effective promptly in order toprevent the spread of hog cholera. Itdoes not appear that public participationin this rule making proceeding wouldmake additional relevant informationavailable to this Department Accord-ingly, under the administrative proce-dure provisions in 5 US.C. 553, Itis foundupon good cause that notice and otherpublic procedure with respect to theamendments are impracticable and un-necessary, and good cause is found formaking them effective less than 30days after publication In the FEDERALREGISTER.

Done at Washington, D.C., this 21stday of April 1971.

F. J. MUL=I,Acting Administrator,

Agricultural Rescarch Service.[FR Doc.71-5750 Filed -23-71;8:49 am]

[Docket No. 71-543]


Areas Quarantined

Pursuant to provisions of the Act ofMay 29, 1884, as amended, the Act ofFebruary 2, 1903, as amended, the Actof March 3, 1905, as amended, the Actof September 6, 1961, and the Act ofJuly 2, 1962 (21 U.S.C. 111-113, 114g, 115,117, 120, 121, 123-126, 134b, 134f), Part76, Title 9, Code of Federal Regulations,restricting the interstate movement ofswine and certain products because ofhog cholera and other communicableswine diseases, is hereby amended In thefollowing respects:

In § 76.2, the introductory portion ofparagraph (e) is amended by adding thename of the State of Indiana and a newparagraph (e) (2) relating to the Stateof Indiana is added to read:

(2) Indiana. The adjacent portions ofDe Kalb and Allen Counties comprised ofall of Butler Township in De Kalb Countyand the adjoLing portion of Perry Town-ship in Allen County bounded by a linebeginning at the junction of State High-way 3 and the Allen-Dc Kalb Countyline; thence, following State Highway 3in a southeasterly direction to the CedarCanyon Road; thence, following the'Cedar Canyon Road in a generally east-erly direction to Vandalaha Road:thence, following Vandalaha Road n aneasterly direction to the Perry-CedarCreek Township line; thence, followingthe Perry-Cedar Creek Township line ina northerly direction to the Allen-DeKalb County line; thence, following the

7737

Allen-Da MKaIb County line In a westerlydirection to Its junction with State Hi'-h-way 3.(Scs. 0-7, 23 Stat. C2, 1a m.nded. az. 1,2. 32 Stat. 791-702, =amzndcd, c2cz. 1-4. 33Stat. 120, 1203. -,. am ,ndci, rca. 1. 75 Stat.41, ersc. 3 and 11, 7G Stat. 130, 132; 21U.S.C. 111-113. 1142. 115. 117. 12, 121, 122-120. 134b, 134f; 23 F.. 1G210, = dedt)

Effectire date. The foregoing amend-ment shall bccome effective upon iz-'Ualnce.

The amendment quarantines portionsof Da 1b and Allen Counties in India",-because of the "'4 'tence of hog cholera.This action is deemed nccas-ary to pre-vent spread of the dizease. The restric-tions pertlining to the interstate move-ment of swine and swine products fromor through quarantined areas as can-taincd in 9 CFR Part '76, as amended,will apply to the quarantined portions ofsuch counties.

The amendment imposes certain fur-ther restrictions necessary to prevent theinterstate spread of hog cholera and mustbe made effective immediately to accom-plizh It-, purpose in the public interest.Accordingly, under the administrativeprocedure provisions in 5 U.S.C. 553, it isfound upon good cause that notice andother public prozedure with respect tothe amendment are impracticable andcontrary to the public interest, and goodcause is found for making It effective lessthan 30 days after publication in theFEDE AL REscszn.

Done at Washington, D.C., this 21stday of April 197L

F. J. MUL-ZM , -Acting Administrator,

Agricultural Research Serviee.[FR Da71-3751 Filed 4-23-71;8:43 am]

PART 78-BRUCELLOSIS

Subpart D-Designation of ModifiedCertified Brucellosis Areas, PublicStockyards, Specifically ApprovedStockyards, and Slaughtering Es-tablishments

MonDiro C=Tn w BaucELLosis Arr sPursuant to . 78.16 of the regulations

in Part 78, as amended, Title 9, Codeof Federal Re-ulations, containing re-strictions on the interstate movementof rniml because of brucellosis, undersections 4,5, and 13 of the Act of May 29,1884, as amended; sections 1 and 2 of theAct of February 2,1903, as amended; andsection 3 of the Act of March 3, 1905,as amended (21 U.S.C. 111-113, 114a-1,120, 121, 125), r 78.13 of said regulationsdesAinating Modified Certified Brucel-loais Area- Is hereby amended to readas follows:§78.13 Modified certified Lrucellosis

The following States, or specified por-tions thereof, are hereby designated asModified Certifled Brcellosis Areas:

Alabama. The entire State;Alael:a. The entire State;Arkona. The entire State;

- FEDERAL REGISTER, VOL 36, NO. 80--SATURDAY, APRIL 24, 1971


Arkansas. The entire State;California. The entire State;Colorado. The entire State;Connecticut. The entire State;Delaware. The entire State;Florida. The entire State;Georgia. The entire State;Hawaii. The entire State;Idaho. The entire State;Illinois. The entire State;Indiana. The entire State;Iowa. The entire State;Kansas. The entire State;Kentucky. The entire State;Louisiana. The entire State;Maine. The entire State;Maryland. The entire State;Massachusetts. The entire State;Michigan. The entire State;Minnesota. The entire State.Mississippi. The entire State;Missouri. The entire State;Montana. The entire State;Nebraska. The entire State;Nevada. The entire State;New Hampshire. The entire State;New Jersey. The entire State;New Mexico. The entire State;New York. The entire State;North Carolina. The entire State;,North Dakota. The entire State;Ohio. The entire State;Oklahoma. The entire State;Oregon. The entire State;Pennsylvania. The entire State;Rhode Island. The entire State;South Carolina. The entire State;South Dakota. Aurora, Beadle, Bennett,

Beon Heromme, Brookings, Brown, Brule, Buf-falo, Butte, Campbell, Charles Mix, Clark,Clay, Codington, Corson, Custer, Davison,Day, Deuel, Dewey, Douglas, Edmunds, FallRiver, Faulk, Grant, Gregory, Haakon,Hamlin, Hand, Hanson, Harding, Hyde, Jack-son, Jerauld, Jones, Kingsbury, Lake, Law-rence, Lincoln, Lyman, McCook, McPherson,Marshall, Meade, Mellette, Miner, Minne-haha, Moody, Pennington, Perkins, Potter,Roberts, Sanborn, Shannon, Spink, Stanley,Todd, Tripp, Turner, Union, Walworth,Washabaugh, Yankton, and Zeibach Coun-ties; and Crow Creek Indian Reservation;

Tennessee. The entire State;Texas. Anderson, Andrews, Angelina,

Aransas, Archer, Armstrong, Atascosa, Austin,Bailey, Bandera, Bastrop, Baylor, Bee, Bell,Bexar, Blanco, Borden, Bosque, Bowie, Brazos,Brewster, Briscoe, Brooks, Brown, Burleson,Burnet, Caldwell, Calhoun, Callahan, Cam-eron, Camp, Carson, Cass, Castro, Chambers,Cherokee, Childress, Clay, Cochran, Coke,Coleman, Conin, Collingsworth, Colorado,Comal, Comanche, Concho, Cooke, Coryell,Cottle, Crane, Crockett, Crosby, Culberson,Dallam, Dallas, Dawson, Deaf Smith, Delta,Denton, Dickens, Dimmit, Donley, Duval,Eastland, Ector, Edwards, Ellis, El Paso,Erath, Falls, Fannin, Fayette, Fisher, Floyd,Foard, Franklin, Freestone, Frio, Gaines, Gal-veston, Garza, Gillespie, Glasscock, Goliad,Gray, Grayson, Gregg, Guadalupe, Hale, Hall,Hamilton, Hansford, Hardeman, Hardin, Har-rison, Hartley, Haskell, Hays, Hemphill, Hen-derson, Hidalgo, Hill, Hockley, Hood, Houston,Howard, Hudspeth, Hunt, Hutchinson, Irion,Jack, Jackson, Jasper, Jeff Davis, Jefferson,JimHogg, Jim Wells, Johnson, Jones, Karnes,Kaufmann, Kendall, Kent, Kerr, Kimble,King, Kinney, Knox, Lamar, lamb, Lampasas,Lee, Leon, Limestone, Lipscomb, Live Oak,Llano, Loving, Lubbock, Lynn, MeCullouch,McLennan, McMullen, Madison, Marion,Martin, Mason, Maverick, Medina, Menard,Midland, Milam, Mills, Mitchell, Montague,Montgomery, Moore, Morris, Motley, Naca-doches, Navarro, Newton, Nolan, Ochiltree,Oldham, Orange, Palo Pinto, Panola, Parker,

Parmer, Pecos, Polk, Potter, Presidio, Rains,Randall, Reagan, Real, Red River, Reeves,Refugio, Roberts, Robertson, Rockwall, Run-nels, Rusk, Sabine, San Augustine, SanJacinto, San Saba, Schlelcher, Scurry,Shackelford, Shelby, Sherman, Smith, Somer-vell, Starr, Stephens, Sterling, Stonewall,Sutton, Swisher, Tarrant Taylor, Terrell,Terry, Throckmorton, Tom Green, Travis,Trinity, Tyler, Upshur, Upton, Uvalde, ValVerde, Van Zandt, Walker, Ward, Washington,Webb, Wheeler, Wichita, Wilbarger, William-son, Wilson, Winkler, Wise, Wood, Yoakum,Young, Zapata, and Zavala Counties;

Utah. The entire State;Vermont. The entire State;Virginia. The entire State;Washington. The entire State;West Virginia. The entire State;Wisconsin. The entire State;Wyoming. The entire State;Puerto Rico. The entire area; andVirgin Islands of the United States. The

entire area.

(Seas. 4, 5, 23 Stat. 32, as amended; sees. 1, 2.32 Stat. 791-792, as amended; see. 3, 33 Stat.1265, as amended; see. 2, 65 Stat. 693; 21U.S.C. 111-113, 114a-1, 120, 121, 125; 29 F..16210, as amended, 9 CTTI 78.16)

Effective date. The foregoing amend-ment shall become effective upon publi-cation in the FEDERAL REGISTER (4-24-71).

The amendment adds the followingadditional area to the list of areas desig-nated as Modified Certified Brucellosis'Areas because it has been determinedthat such area comes within the defini-tion of § 78.1(i): Franklin County inTexas.

Avoyelles Parish in Louisiana was de-leted from the list of areas designated asModified Certified Brucellosis Areas onJanuary 14, 1971, because it was deter-mined that such parish no longer camewithin the definition of § 78.1(1); theamendment restores Avoyelles Parish tosuch list because it has been determinedto come within the definition of § 78.1(1),thereby restoring the entire State ofLouisiana to the list of Modified CertifiedBrucellosis Areas.

The amendment imposes certain re-strictions necessary to prevent the spreadof brucellosis in cattle and relieves cer-tain restrictions presently imposed. Itshould be made effective promptly inorder to accomplish its purpose in thepublic interest and to be of maximumbenefit to persons subject to the restric-tions which are relieved. Accordingly,under the administrative proceduresprovisions of 5 U.S.C. 553, it is foundupon good cause that notice and otherpublic procedures with respect to theamendment are impracticable, unneces-sary, and contrary to the public interest,and good cause is found for making theamendment effective less than 30 daysafter publication in the FEDERALREGISTER.

Done at Washington, D.C., this 20thday of April 1971.

R. S. SHARwAx,Director, Animal Health Divi-

sion, Agricultural ResearchService.

[FR Doc.71-5752 Filed 4-23-71;8:49 am]

Title 12- BANKS AND BANKINGChapter lI-Federal Reserve SystemSUDCHAPTER A-BOARD OF GOVERNORS OF

THE FEDERAL RESERVE SYSTEM

Re1g. Ul

PART 221-CREDIT BY BANKS FORTHE PURPOSE OF PURCHASING ORCARRYING MARGIN STOCKS

Credit To Contribute Capital to Brokersand Dealers

1. Effective immediately, §221.2 isamended by deleting "and" at the end ofparagraphs (j) and (k), by deleting theperiod at the end of paragraph (1) andinserting in its place "; and", and byadding a new paragraph (m) as follows:§ 221.2 Exceptions to General Rule.

Notwithstanding the provisions of§ 221.1, a bank may extend and maymaintain any credit for the purposespecified in § 221.1, without regard to thelimitations precrlbed therein, or In§ 221.3(t), if the credit comes within anyof the following descriptions.

(m) Any credit extended to or main-tained for a customer for the purpose ofmaking a loan or contribution of capitalto a broker or dealer subject to Part 220of this chapter (Regulation T) if theloan or contribution Is in conformity withthe requirements regarding satisfactorysubordination agreements or equities Inthe accounts of partners of a rule of theSecurities and Exchange Commislilon(Rule 15c3-1 (c) (2) (A), (o) (4), and(c) (7)) (17 CFR 240.15c3-1 (o) (2) (A),(c) (4), and (c) (7)) or the capital rulesof an exchange of which the broker ordealer is a member If the membersthereof are exempt therefrom by Rule15c3-1(b)(2) of the Commission (17CPR 240.15c-1(b)(2)) or to purchasestock in a creditor which Is a corpora-tion: Provided, That any such credit ex-tended after April 16, 1971, shall becomesubject upon renewal to such additionalrestrictions as the Board of Governorsmay impose by regulation concerning theconditions upon which credit may be ex-tended for the purpose of making suchloan or contribution: And provided fur-ther, That (1) all of the proceeds ofsuch extension of credit are so loaned orcontributed to the capital of the brokeror dealer, and (2) that the proceeds ofany withdrawal of such loan or contribu-tion of capital from the broker or dealerby the customer or redemption of suchstock shall be used to reduce or retiresaid extension of credit.

2a. These amendments are issued pur-suant to section 7 of the Securities E,-change Act of 1934 (15 U.S.C. 78g), Thechanges are to permit banks to extendor maintain credit for th6' purpose ofenabling the customer to contribute cap-ital to a broker/dealer firm whether inthe form of a subordinated loan, equitiesin the accounts of partners or a purchase


7738


of stock-in a corporation or otherwise,-without regard to the initial marginrequirements of §§ 221.1 and 221.4 (theSupplement to Regulation U). Credit6xtended after April 16, 1971, and priorto adoption of proposed amendments toRegulation U, published concurrentlyherewith in th& FED--. REGISTER undernotice of proposed rule making, wouldbecome subject upon subsequent renewalto the restrictions imposed by suchamendments- This action is taken tofacilitate the raising of capital by broker/dealer firms and to encourage the per-manency of such capital.

b. The requirements of section 553(b)of title 5, United States Code, with re-spect to notice, public participation, anddeferred effective date were not followedin connection with these amendmentsbecause following such requirementswould have prevented the Board's actionfrom becoming effective as promptly asnecessary in the public interest. -

By order of the Board of Governors,April 16, 1971.

[sEAi] KENwE A. KEmyor,DeputySecretary.

[FR Doc.'I-572 Piled 4-23-71;8:47 am]

Title 21-FOOD AND DRUGSChapter I-Food and Drug Adminis-

tration, Department of Health, Ed-ucation, and Welfare

SUBCHAPTER B-FOOD AND FOOD PRODUCTS

PART 121-FOOD ADDITIVES

Subpart D-Food Additives Permittedin Food for Human Consumption

SoD-I= NnrrSection 12L1064 of the food additive

regulations provides for the use of sodiumnitrite as a preservative and color fix-ative in smoked cured tunafish productsso that the level of the additive does notexceed 10 parts per million in the finishedproduct. It has come to the attention ofthe Commissioner of Food and Drugs that§ 121.1064(a) (1) inadvertently refers touse of the additive as a preservative.Since no substantial evidence supportsuse of the additive as a preservative atthe prescribed level, a correction is inorder.

Therefore, pursuant to provisions ofthe Federal Food, Drug, and CosmeticAct (sees. 409, 701, 52 Stat. 1055, 72 Stat.1785-88, as amended; 21 U.S.C. 349, 371)and under authority delegated to theCommissioner (21 CBB 2.120), § 121.1064(a) (1) is revised to read as follows:

§ 121.1064 Sodium nitrite.

(a) * * *(1) As a color fixative in smoked cured

tunafish products so that the level ofsodium nitrite does not exceed 10 partsper million (0.001 percent) inthe finishedproduct.

Since this amendment is a correction,notice and public procedure are not pre-requisites to this promulgation.

Effectire date. This order shall be ef-fective upon publication in the F .rRAREoirTsr (4-24-71).(Secr. 409. 701, 52 Stat. 1005. 72 Stat. 1785-838,as amended; 21 U.S.C. 34-9. 371)

Dated: April 15,1971.

S.a D. Fnr,Associate Commissioner

for Compliance.[FR Dcc.71-5727 F ed 4-23-71;8:47 am]

SUBCHAPTER C-DRUGSPART 145-ANTIBIOTIC DRUGS; DEF-

INITIONS AND INTERPRETATIVEREGULATIONS

PenicillaminePursuant to provisions of the Federal

Food, Drug, and Cosmetic Act (sec. 507.59 Stat. 463, as amended; 21 U.S.C. 357)and under authority delegated to theCommissioner of Food and Drugs (21CFR 2.120)' Part 145 Is amended to adddefinitions for penicllamine and penlcl-lamine master and working standards,as follows:

1. In § 145.2, by adding a new subpara-graph to paragraph (a), as follows:§145.2 Definitions of antibiotic

substances.

(a) * a 0(35) Penicillamine. Penidillamine I- a

hydrolysis product of penicillin.2. In § 145.3, by adding to paragraphs

(a)' and (b) a new subparagraph each,as follows:§ 145.3 Definitions of master and work-

ingstandards.(a) * *(43) Penfcillamlne. The term "peni-

cillamine master standard" means aspecific lot of penlcillamine that Is dezig-nated by the Comminsioner as the stand-ard of comparison in determining thepenicillamine content of the penicil-lamine working standard.

(b) * " "(43) Penicillamine. The term "penl-

cillamine working standard" means a lotof a homogeneous preparation of pent-cillamine. ,

3. In § 145.4(b), by adding the follow-ing new subparagraph:§ 145.4 Definitions of the terms "unit"

and "microgram" as applied to anti-biotic substances.

(b)***

(46) Peniciflamine. Trhe term "micro-gram" applied to penicilamine meansthe amount of penlclamine in 1.000microgram of the ponicillanilne masterstandard. The master standard has apurity of 100 percent.

Since this order merely adds defini-tions of penlcilamine and Its master andworking standards to allow designationof a master standard and Is noncontro-

7739

verJaI in nature. notice and public pro-czdure and delayed effective date areunnec_=ary prerequis-tea to this order.

Effectire date. This order shall be ef-fectiv upon publication in the FzrarzrPxs=a (4-241-71).(Sc. G7. 9 Stat. 43, a3 amended; 21 U.S.C.~357)

Dated: April 12,1971.H. F. Snnro-s,

Dircceor, Bureal of Drugs.[-R D:c.71-57G3 rPIed &-23--71;8:45 am]

Title 26--INTERNAL REVENUEChapter I-Internal Revenue Service,

Department of the TreasurySUB CHAPTEK D-MISCRIANEOUS EXCISE

TAXESIT.D. 7103g

PART 147-TEMPORARY REGULA-TIONS UNDER THE INTERESTEQUALIZATION TAX ACTEredion To Subject Certain Debt

Obligations to TaxIn order to prescribed regulations pro-

viding rules for certain domestic cor-porations and partnerships to elect 1ohave certain debt obligations subject tothe Interest; Equalization Tax undersubection (c) of cection 4912, asamended by the Interest EqualizationTax Extension Act of 1971, the Tem-porary Regulations under the InterestFqualization Tax Act (26 CFR 147) areamended by adding the followmg newrection:§ 147.10-1 Flection to treat certain deLL

obligations as subject to tax.(a) In gcneral Section 4912(c) per-

mlt, a domestic corporation or a d3-mestlo partnership to elect with respectto any issue of Its debt oblgations tohave such debt obligations, whether ornot convertible into or exchangeable forstock, and whether or not having a pe-ri d to maturity of at least 1 year,(1) Which are part of anew or oriinala

isze, or(2) Which are pait of an Issue out-

standing on April 1, 1971, and whichsince such date have been treated underrection 4912(b) (3) as debt obligations ofa foreICn obligor,treated as debt obliUations of a forelynobligor. See paragraph (b) (3) for rulesrelating to when an -asumption of oneor more debt obligations will be treatedas a new or original issuance. Te ac-qulsition by a U.S. parson (other thathe issuer) of debt obligations for whichan election has been made will, not-withstanding any other provision ofchapter 41 of the Internal Revenue Code(relating to the interezt equalizationtax). be subject to the tax impoSedby Eection 4911 at the rate applicableon acquisition of outztanding stock

FEDERAL REGISTER, VOL 36, NO. 80--SATURDAY, APRIL 24, 1971'No. 80-Pt. 1-2


under section 4911(b). Thus, for ex-ample, the exemption for prior Ameri-can ownership under section 4918 willnot be applicable on the acquisition bya U.S. person of any such debt obliga-tions: However, refund or credits, as pro-vided for in section 4919, will remainapplicable in connection with the acqui-sition of obligations for which an elec-tion has been made under section 4912(c). For purposes of this paragraph, anacquisition pursuant to a right to con-vert or exchange a debt obligation forstock or in discharge of the obligationof a guarantor shall be treated as anacquisition by the issuer, provided suchright or guarantee arises no later thanthe time such obligation first becomessubject to a section 4912(c) election.

(b) Deftnitions-(1) Issue. For pur-poses of this section, debt obligations(including a single instrument) will betreated as constituting an issue if theycomprise a separately identifiable classor series of bonds, debentures, or otherdebt obligations.

(2) Original or* new issue. For pur-poses of this section, an issue of debtobligations shall be treated as an orig-inal or new issue if none of the debtobligations in thi issue has been acquireidprior to the effective date of an electionmade under this section with respect tosuch debt obligations.

(3) Debt obligations assumed. Forpurposes of paragraph (a) of this sec-tion, the assumption by a domestic cor-poration of all of an issue of debt obli-gations of an affiliated corporation isto be treated as the issuance of a new ororiginal issue of debt obligations by suchdomestic corporation, and such domesticcorporation shall be treated as the issuerof such new or original isdue. A domesticcorporation is to be treated as affiliatedwith another corporation if both cor-porations are members (or would bemembers if they were both domesticcorporations) of the same controlledgroup (within the meaning of section48(c) (3) (C)).

(c) Time and manner of making elec-tion-() Time of election. An electionunder paragraph (a) (1) of this sectionshall be made prior to the issuance ofany debt obligation which is part of anoriginal or new issue (or prior to theassumption of an issue of debt obliga-tions specified In paragraph (b) (3) ofthis section). An election under para-graph (a)(2) of this section may bemade at any time.

(2) Manner of election. An electionunder this section shall be made by fil-ing a statement containing the informa-tion required in subparagraph (3) of thisparagraph together with a sample ofthe instruments evidencing the debtobligations to be subject to the election(with an indication or endorsement oftaxability as provided in paragraph (d)of this section) with the Commissionerof Internal Revenue, Attention: CP :A:O,Washington, D.C. 20224. Such statementshall indicate that a section 4912(c)

'election is being made, and shall besigned by an individual authorized tosign Federal income tax returns of the

electing person. The election shall bedeemed to be made at the time it is filedwith the Commissioner and shal be ef-fective with respect to debt obligationswhich are part of a new or original issue(other than an issue described in para-graph (b) (3) of this section) as of thedate on which interest begins to accrueon the debt obligations for which suchelection is being made, but in no eventshall such effective date be later thanthe date on which such debt obligationsare issued. The effective date with re-spect to debt obligations for which anelection is being made shall be, for debtobligations described in paragraph (a)(2) of this section, the date on whichsuch election is filed, and, for debt obli-gations specified in paragraph (b) (3) ofthis section, the date on which suchdebt obligations are assumed.

(3) Information to be furnished. Thestatement of election shall contain thefollowing information:(i) The name, address, employer iden-

tification number, and principal place ofbusiness of the corporation or partner-ship making the election;

(ii) The total face amount of theclass or series of debt obligaflons whichis to be subject to the election, as well asthe date of maturity of such debt obli-gations, and their date or dates of issu-ance, issue price, interest rate, designa-tion by which separately identifiable, anda brief description of such debt obliga-tions including whether they are con-vertible into or exchangeable for stock,and, if so, the type of stock into whichor for which the debt obligations can beconverted or exchanged and the earliestdate on which such conversion or ex-change privilege may be exercised.

(iii) A statement that all instrumentsevidencing the debt obligations subjectto the election have an indication or en-dor'sement of taxability which meets therequirements of paragraph d) of thissection.In the case of obligations described inparagraphs (a) (2) and (b) (3) of thissection, the foregoing Information (ifapplicable) shall be provided with re-spect to the debt obligations subject toan election both as of the time of theirinitial issuance and at the time the elec-tion is made.(d) Indication or endorsement of tax-

ability. Debt obligations for which anelection is made under this section shallcontain the following indication or en-'dorsement of taxability.(1) New or original issue. On the face

of each document evidencing any debtobligation which is part of such new ororiginal issue (other than an issuetreated as new or original under para-graph (b) (3) of this section) for whichan election has been made there ismarked the following or substantiallysimilar language: "This debt obligationis to be treated as the debt obligation ofa foreign obligor for purposes of the U.S.interest equalization tax and its acquisi-tion by a U.S. person shall subject suchperson to tax liability, without regard toany exemption or exclusion in chapter 41of the Internal Revenue Code, at the rate

of tax applicable upon the acquisition ofoutstanding stock,"

(2) Debt obligations under section4912(b) (3). On the face of each docu-ment evidencing any debt obligationwhich is part of an issue outstanding onApril 1, 1971, and which since such datehas been treated under section 49112(b)

'(3) as a debt obligation of a foreignobligor there is marked the following orsubstantially similar language: "Thisdebt obligation is to be treated as thedebt obligation of a foreign obliger forpurposes of the U.S. Interest equalizationtax and Its acquisition by a U.S. personshall subject such person to tax liabilityto the extent provided in chapter 41 ofthe Internal Revenue Code." In addition,in any instance where as a result of themutilation, destruction, loss, or theft ofdebt obligations, or for any other reason,the domestic corporation or partnershipmaking an election under this section ex-ecutes after the election is made one ormore documents in substitution for oneor more documents which were part of anissue for which an election was madeunder paragraph (a) (2) of this section,such corporation or partnership shall addas an endorsement on the face of the newdocument evidencing such obligation thefollowing or substantially similar lan-guage: "This debt obligation Is subject tothe provisions of section 4912(c) of theInternal Revenue Code of 1054. Therate of tax applicable to the acquisitionof this debt obligation by a U.S. personshall be equal to the rate of tax appli-cable upon the acquisition of outstand-ing stock."

(3) Debt obligations which are as-sumed. Any document evidencing a debtobligation which is assumed under thissection shall, if such debt obligation wasissued by-

(i) A domestic corporation, haveclearly marked upon Its face a statementsimilar to the language in the first sen-tence of subparagraph (2) 'of this para-graph indicating that the acquisition ofsuch debt obligation by a U.S. person Issubject to the interest equalization tax;

(i) A foreign corporation, be clearlyevident from Its face that It is a debtobligation of a foreign obliger.In addition, in any instance where as aresult of the mutilation, destruction, loss,or theft of debt obligations, or for anyother reason, the domestic corporation orpartnership making an election underthis section executes after the election ismade one or more documents in substi-tution for one or more documents whichwere part of an issue for which an elec-tion described in paragraph(b) (3) of thissection was made, such corporation orpartnership shall add as an endorsemonton the face of the new document evidenc-ing such obligation the following or sub-stantially similar language: "This debtobligation is to be treated as the debtobligation of a foreign obliger for pui-poses of the U.S. Interest equalization taxand its acquisition by a U.S. person shallsubject such person to tax liability, with-out regard to any exemption or exclusionin chapter 41 of the Internal Revenue

FEDERAL REGISTER, VOL. 36, NO. 80-SATURDAY, APRIL 24, 1971

7740


Code, at the rate of tax applicable uponthe acquisition of outstanding stock."

Because of the need for immediateguidance with respect to the provisionscontained in this Treasury decision, it isfound impracticable to issue it with no-tice and public procedure thereon undersubsection (b) of section 553 of title 5of the United States Code or subject tothe effective date limitation of subsection(d) of thatsection.(Section 7805 of the Internal Revenue Codeof 1954; 68A Stat. 917; 28 U.S.C. 7805)

[SEAL] RANDOLPu W. THRERm,Commissioner of Internal Revenue.

Approved: April 22,197L

Enwi S. COH=,Assistant Secretary

of the Treasury.IF& Doc.71-5817 Filed 4-,23-71;8:50 am]

PART 150-MANUFACTURE OFOPIUM FOR SMOKING PURPOSES

PART 151-REGULATORY TAXES ONNARCOTIC DRUGS

PART 152-REGULATORY TAXES ONMARIHUANA

CRoss REFERENCE: For a document re-scinding Parts 150, 151, and 152 of thistitle, see F.R. Doe. 71-5688, appearing asPart II of this issue,

Title 47-TELECOMMUNICATIONChapter ]-Federal Communications

Commission[Docket No. 18927; FCC 71-3221

PART 73-RADIO BROADCASTSERVICES

Limitation of Television Stations'Access to Programs of More ThanOne National Network

Correction

In F.R. Doe. 71-4712 appearing atpage 6507 in the issue of Tuesday,April 6,1971, in the first line of § 73.658(1) (1) (i) the word "television" should beinserted between the words "commercial"and "station".

Title 49-TNSPORTATION-Chapter X--Interstate Commerce

Commission

-SUBCHAPTER B-PRACTICE AND PROCEDURE[Ex Parte No. 2741

PART 1121-ABANDONMENT OFRAILROAD LINES

In the matter of regulations governingapplications under section L, paragraphs(18) to (20), inclusive; of the InterstateCommerce Act for certificates of publicconvenience and necessity authorizing

the abandonment of a line of railroad,or the operation thereof.

At a General Sesion of the InterstateCommerce Commission, held at Its oficein Washington, D.C., on the 31st day ofMarch, AMD. 1971.

It appearing, that inasmuch as theregulations In §§ 1121.1 to 1121.5, inclu-sive, contemplated herein are directedonly to rules of agency organization, pro-cedure, or practice, further notice andpublic procedure are unnecezsary. Andgood cause therefor appearing:

It is ordered, That Part 1121, be andit is hereby, revised to read as follows:

AX'LIMTcO oiSee.1121.1 Information to be containcd In ap-

plication.1121.2 Preparation of application.1121.3 Verification of application.1121.4 Filing of application.1121.5 Notice and ELrvica of application.

Aunoarrv: The provisions of ths Part1121 issued under rcc 12, 24 Stat. 363. asamended; 41 Stat. 470, as amended; 49 U.S.C.12.1.

§ 1121.1 Information to be contained inapplication.

Applications for certiflcates of publicconvenience and necessty permittingthe abandonment of railroad lines orthe operation thereof shall et forthfull and complete responses to the follow-ing questions:

(a) Fxact corporate name of the ap-plicant.

(b) Whether the applicantis a carrier-by railroad subject to the InterstateCommerce Act.

(c) Route and termini of the line pro-posed to be abandoned with Its totallength in miles naming each county inwhich any portion Is situated.

(d) Whether abandonment of the lineitself, or only of its operation is sought.

(e) Name, title, and post ofice addressof counsel or officer to whom correpond-ence in regard to the application shouldbe addressed.

(f) The present state of maintenanceof the line, estimated deferred mainte-nance or rehabilitation costs, If any, andannual avoidable maintenance cozL,with the bases of these costs.

(g) The estimated net salvage valueof the line, with the basis of the estimate.

(1) A brief description of the prezenttrain service on the line. and of Impor-tant changes made in the past 2 calendaryears.

(I) The names of all stations on theline, stated in order with milepost num-bers, with the approximate populationof each, and the authority for the infor-mation, showing for each place thenanes of all other railroads by which itis served, or its distance by highway fromthe nearest other railroad. Distinguiz-hnonagency stations and connections withother railroads for interchange of traflc.

i) A detailed statement of the loca-tion and nature of the highways avail-able for movement of the trafile nowhandled by the line, and of the commoncarrier truck service on such highways,if any.

(L) 'Ihi nure of the industries inthe triLutary territory (smch as farm-ing, mining, lumb:ring, man"fcturing,etc.), how long established, and the ex-tent to which each is dependent uponthe line ior tran-sportation. State laca-tion and ether facts conzerning the mostImportant plann served.

(l) If c suc - service is provideden the wvil the ccrvica be via analternat2 rcute (route should be de-tailcd, or ha'e appropriata stepz be.ntai.n fer dz:cn:in1 n:e pur.ant tos:ction 13a (1) and (2) of the act-or_Tran-patain Act of 1970 or does thecervice fall within purview of PublicL.-a: 91-5.0.

Cm Tie feCiht tonnage handled bythe ine for each o: the last 2 calendaryearo, and for that part of the currentyear for v;h.ah the information is avail-able, choaming tie number of cars andthe tonnage of carlmad frelght, cl.asi-Ced by principal czmmodities, and thetonnage of less-than-carload freight.Shsv' in c2parate statements (1) localfreight ori-gnzted at and destined topoint: on the line, (2) freight movedb-tween pAnts on the line and pointsbeyond it, and (3) freight neither origi-nated at nor destined to points on theline (overhead or bridj-e traffic).

(n) (1) If the line to be abandoned isles than the entire mileage operated bythe applicant, a statement showing theeffect of the proposed abandonment onthe net railway operating income of theapplicant. The statement should includefor cach of the lat 2 calendar years andfor that part of the current year forwhich the information Is available:

(I) The applicant's total railway op-erating revenue from traffic shown inparagraph (m) of this section, main-taini g the separation between para-graphs (m) (1), un) (2) and if traffic isto be abandoned. (m) (3) of this section,vdth further ceparation of the operatingrevenue that should be assigned to theline proposcd to be abandon2d and be-yond limitz of said line with a statementof the methods for such asigment. Therevenues from freight and other servicesshould be shown separately;

(I) The avoldable costs of maintain-ing and ope'ating the line proi'osed to beabndoned, including payroll taxes,stated by appropriate primary account-,actual so far as pv-z-ble and otherwizeapproximated, vith a full statement ofthe methods used;

(ill) Other Items entering into the ap-plicant's income account and assignableto the line propo:d to be abandoned.with methods of assignment;

(iv) The co -sts of movina the trafli inparagraph (in) (2) of this sctiom, and iftrafc is to. be abandoned, paragraph(m) (3) of this scotlon, beyond the limitsof the line propsscd to be abandoned onother parts of the applicant's lines, withmethod of determination;

(v) If trala in parag7raph (m) (i D ofthis Eection i- not to be retained, thecosts of moving the trffic via alternate


7741


routes, with methods of determination;and

(vi) Property taxes of line to beabandoned with method of determina-tion.

(2) If the applicant's line is operatedas part of a system under common con-trol and management, a statement forthe same period as required in subpara-graph (1) of this paragraph showing theeffect of the proposed abandonment onthe net railway operating income of theother unit members of the system. T hisstatement should show the revenues ac-cruing to the other unit members fromtraffic moving to 'and from the line pro-posed to be abandoned and the costs ofhandling such traffic. The methods ofdetermining such revenues and costsalso should be shown.

(o) If the volume of freight or passen-ger traffic of the line has decreased dur-ing recent years, any reasons therefor.

(p) If the line is operated as a jointfacility, and abandonment of the appli-cants' operation only is proposed, statefully the facts as to operation by othersand the extent to which it will supplythe place of the operation it is proposedto abandon.

(q) State what effort has been madeto dispose of the line so as to insure itscontinued operation, and what, if any,transportation service will remain ormay be substituted for that proposed tobe discontinued.

(r) A summary statement of the rea-sons for the application.

(s) The application and each copythereof shall be accompanied by the fol-lowing exhibits:

(1) A situation map on a sheet notlarger than 16 x 21 inches, preferably8 x 10 A inches or some multiple thereof.This map must be drawn to scale and theScale shown thereon. It must cover a suf-ficient territory, showing the railroads,water routes, and important points there-in, and in clear relief, the line it is pro-posed to abandon, and its principal sta-tions.

(2) A copy of the applicant's generalbalance sheet of the latest date avail-able, and a copy of the applicant's in-come account for each of the last 2 calen-dar years, and for that portion of thecurrent year for which the information isavailable.

(3) Draft of notice of filing. In addi-tion, three extra copies of the draft ofnotice should be submitted, unbound, foruse of the Commission. The draft shallbe in the following form:

NOTICE.(Name of applicant) hereby gives notice

that on the - day of ----------- , itfiled with the Interstate Commerce Commis-sion at Washington, D.C., an application fora certificate of public convenience and ne-cessity permitting abandonment of a line ofrailroad extending from railroad milepost

near (station name) in a ...........direction to (the end of line or railroad mile-post) near (station name), a distance of------ miles, in ------------ County(les),(state). The line for which the abandon-ment application has been filed includes thestations of (1ist all stations in question 9).This application has been assigned Finance

Docket No . --.- The proceeding will behandled without public hearings unless pro-tests are received which contain informa-tion indicating a need for such hearings. Anyprotests submitted shall be filed with theCommission no later than (here insert, onall notices, date thirty (30) days from date offirst publication).

(Name of applicant)(If this application is being filed concur-

rently with an application for constructionand/or trackage, the notices should be modi-fied to include all details.)As provided in § 1121.3, the applicationshall contain verification in the follow-ing form:

VERIFICATION

State of ------------County of-----------

(Name of a-at)makes oath and says that he Is the ......

-------------------------- of the --------(Title of affmant)

-applicant herein;(Corporate name of applicant)that he has been authorized by proper cor-porate action on the'part of said applicant, orby the proper court, to verify and file withthe Interstate Commerce Commission theforegoing application in Finance Docket No.

------ ; that he has carefully examined all ofthe statements referred to in said applica-tion aiid the exhibits attached thereto andmade a part thereof; that he has knowledgeof the matters set forth in such applicationand that all such statements made and mat-ters set forth therein, are true and correctto the best of his knowledge, information,and belief.

Subscribed and sworn to before me ------

------ in and for the State and County abovenamed, this - day of ----------- 19._.

Aly commission expires ------------§ 1121.2 Preparation of application.

The application shall be prepared Intypewritten or printed form on paper ap-proximately 8% x 11 inches, with 1/ 2inch margin at the left side for binding.Carbon copies, hectographed copies,white line blue prints, or copies preparedby similar processes will not be accepted.§ 1121.3 Verification of application.

The original application shall be signedby an executive officer of the applicanthaving knowledge of the matters andthings therein set forth, shall be veri-fied under oath, and shall show, amongother things, that the affiant is duly au-thorized by the corporation or court toverify and file the application.§ 1121.4 Filing of application.

The original application and six (6)copies for the use of the Commission shallbe filed with the Interstate CommerceCommission, Washington, D.C. 20423.Each copy shall bear the dates and sig-natures that appear in the original andshall be complete in itself; the signa-tures in the copies may be stamped ortyped, and the notarial seal may beomitted.§ 1121.5 Notice and service of applica.

tion.(a) Upon receipt of the application,

the Commission will review the notice,

enter the assigned docket number anddate filed on the draft notice of filing at-taclled to the application and transmitsame to the applicant, which notice shallbe published by the applicant at leastonce during each of three (3) conscou-tive weeks in some newspaper of generalcirculation in each county in which anypart of the line of railroad sought to bDabandoned is situated. Copy of noticeshall also be posted in a conspicuousplace at each agency station on the linesought to be abandoned. If there Is noagency station on the line sought to beabandoned, the notice shall be posted atthe agency station on the applicant's linethrough which business for the linesought to be abandoned is handled. Proofof publication and posting of the noticeshall be filed promptly by the applicants;

(b) Upon receipt of notice of filingfrom the Commission, the applicant shallserve, by first class mail, a conformedcopy of the application on the governorand public service commission of eachState in which any part of the line ofrailroad sought to be abandoned Is situ-ated, accompanied by a stbtement thatif they desire to be heard In the matterthey should advise' the Commissionwithin 20 days of their interest In theproceeding. A certificate of such serviceshall be filed promptly with thisCommission.

It is further ordered, That the§§ 1121.1 to 1121.5, inclusive, hereinadopted, shall supersede and suspend thepresent sections of part 1121 (Q§ 1121.1to 1121.9, inclusive), as adopted by orderof the Commission of November 27, 1941,as amended;

It is further ordered, That this ordershall become effective on the date hereofand shall continue in effect until furtherorder of this Commission; and

It is further ordered, That notice ofthese regulations be given to the generalpublic by posting copies at the InterstateCommerce Commission, Washington,D.C. 20423, and by filing with the Di-rector of the Office of the Federal Regis-ter, Washington, D.C.

By the Commission.[SEAL] RonERT L. OSWALD,

Secretary,[FR Doc.71-5748 Filed 4-23-71;8 :48 aml

Title 50-WILDLIFE ANDFISHERIES

Chapter I-Bureau of Sport Fisheriesand Wildlife, Fish and WildlifeService, Department of the Interior

PART 33-SPORT FISHING

J. Clark Salyer National WildlifeRefuge, N. Dak.

The following special regulation Is Is-qued and is effective on date of publica-tion In the FEDERAL RnOIsTEa (4-24-71).


7742


§ 33.5 Special regulations; sport fish-ing; for individual wildlife refugeareas.

NORTH DAKOTA

J. CLARK SALTER NATIONAL WLDLIFEREFUGE

Sport fishing on the J. Clark SalyerNational Wildlife Refuge, N Dak., is per-mitted only on the areas designated bysigns as open to fishing. These open areas,comprising 900 acres or 8 percent of thetotal water area of the refuge, are de-

lineated on a map and dezcrlbed In aleaflet available at the refuge head-quarters and from the office of the Re-gional Director, Bureau of Sport Fisher-ies and Wildlife. Federal Building, FortSnelling, Twin Cities, MN 55111. Sportfishing shall be in accordance with allapplicable State regulations subject tothe following special condition:

(1) The open season for sport flshingon the refuge extends from May 1, 1971,through September 14, 1971, daylichthours only.

The pro.Uions of this sp.cal regula-tion supplement the regulations whichgovern fizhing on wildlife refuge areasgenerally which are set forth in Title 50,Part 33, and are effective through Sep-tember 14,1970.

RoD=n, C. Fnars,.Rfuga MracgcrJ. Clark Salyer.

National Wildlife Refuge,Ulzharn,N.DaT.

Ax'nm 19. 171.

JIM D)Z.7n-731 F11Cd1--23-71;8:47 aml


7 743

7744

Proposed Rule MakingDEPARTMENT OF AGRICULTUREConsumer and Marketing Service

[7 CFR Part 1001 1[Docket Nos. AO 14--A49, AO 14-A49-ROl

MILK IN MASSACHUSETTS-RHODEISLAND-NEW HAMPSHIRE MAR-KETING AREA

Decision on Proposed Amendments toMarketing Agreement and to Order

A public hearing was held upon pro-.posed amendments to the marketingagreement and the order regulating thehandling of milk in the Massachusetts-Rhode Island-New Hampshire marketingarea. The hearing was held, pursuant tothe provisions of the Agricultural Mar-keting Agreement Act of 1937, asamended (7 U.S.C. 601 et seq.), and theapplicable rules of practice (7 CFR Part900), at Concord, N.H., on October 7-10,1970, and reconvened at Boston, Mass.,on December 15, 1970, pursuant tonotices thereof issued on September 4,1970 (35 F.R. 14325), and November 9,1970 (35 P.R. 17663), respectively.

This proceeding was reopened March30, 1971, in New York City, in connectionwith a joint hearing held for this orderand orders 2, 4, and 15 regulating thehandling of milk in the New York-NewJersey, Middle Atlantic, and Connecticutmarketing areas, respectively, for thelimited purpose of considering proposalsto:

(1) Revise the butterfat differentials;(2) Revise the classification provisions

as they relate to the definition of "fluidmilk products"; and

(3) Omit the recommended decisionon these two issues for reason of emer-gency marketing conditions.

The joint four-market hearing washeld at New York City on March 30-31,and April 1, 1971, pursuant to noticethereof (Massachusetts-Rhode Island-New Hampshire, AO 14-A49-RO1 et al.)issued on March 12, 1971 (36 P.R. 5141).The findings and conclusions hereinafterset forth are based solely on the recordof the originally scheduled hearing heldin Concord, N.H., and Boston, lass. Thematters considered at the reopening ofthe hearing in New York City onMarch 30, 1971, are reserved for a laterdecision.

Upon the basis of evidence introducedat the hearing held in Concord, N.H., andBoston, Mass., and the record thereof,the Deputy Administrator, RegulatoryPrograms, on March 1, 1971, filed withthe Hearing Clerk, U.S. Department ofAgriculture, his recommended decisionContaining notice of the opportunity tofile written exceptions thereto.

The material issues, findings and con-clusions, rulings, and general findings of

the recommended decision are hereby ap-proved and adopted and are set forth infull herein.

The material issues on the record ofthe hearing relate to:

1. Extension and redesignation of ,themarketing area.

2. Modification of pooling standardsfor supply plants.

3. Modification of diversion provi-sions.

4. Modification of assignment provi-sions.

5. Producer-handier definition andexemption of "own farm" production.

6. Miscellaneous.FnwIIGs AD CONCLUSIONS

The following findings and conclusionson the material issues are based on evi-dence presented at the hearing and therecord thereof:

1. Extension and redesignation ofthe Massachusetts-Rhode Island-NewHampshire marketing area. The Massa-chusetts-Rhode Island-New Hampshiremarketing area should be extended to in-elude 23 additional towns in Massachu-setts, 29 additional cities and towns inNew Hampshire, and 37 towns inVermont.

This area of expansion encompassesFranklin County, Massachusetts, exceptthe towns of New Salem, Orange, andWarwick; Sullivan County except thetown of Plainfield, and the remaining un-regulated area of Cheshire County, all inNew Hampshire; three towns in Ben-nington County, 12 towns in WindsorCounty, and all of Windham County ex-cept for the unorganized territory ofSomerset, all in Vermont.

Since, with this extension, the mar-keting area will now encompass parts of4 states, it should be redesignated as theBoston Regional marketing area.

The total area of extension as set forthin the proposals contained in the hear-ing notice included, in addition to theterritory herein proposed: The remain-ing towns in Franklin County, Mass.(i.e., the towns of Orange, Warwick, andNew Salem), the towns of Athol, Peter-sham, Phillipston, and Templeton inWorcester County, Mass.; the town ofPlainfield in Sullivan County, the city ofLebanon and 20 additional towns insouthern Grafton County, all in NewHampshire; the towns of Barnard,Bethel, Bridgewater, Hartford, Hart-land, Norwich, Pomfret, Royalton,Sharon, and Woodstock, in WindsorCounty, and the towns of Bradford,Corinth, Fairlee, Newbury, Randolph,Strafford, Thetford, Topsham, Tun-bridge, and West Fairlee, in OrangeCounty, all in Vermont.

Proponents of area expansion (12cooperative associations with member-ship among producers under the existingorder) requested the regulation of Frank-

lin County, Mass. (except for the townsof Orange, New Salem, and Warwick)and a corridor of cities and towns in theConnecticut River Valley region runningnorthward to and including the towns ofSharon and Norwich in Vermont, andHanover, Canaan, Orange, and Alex-andria in New Hampshire.

Proposals for additional territory,made individually by three proprietaryhandlers and conditional on the exten-sion of regulation to encompass the co-operatives' proposal, included the re-maining three towns in Franklin County,Mass., four towns in Worcester County,Mass., an additional corridor of Vermonttowns west of and contiguous to the areaincluded in the cooperatives' proposal,and additional Vermont and New Hamp-shire territory extending northwardalong the Connecticut River to and in-cluding the towns of Topsham and New-bury in Vermont and the Haverhill,Piermont, Warren, Ellsworth, Thornton,and Waterville tier of towns In NewvHampshire.

Proponent cooperatives' primary con-cern was extension of Federal regulationinto that area of Franklin County, Mass.,where there is presently extensive dis-tribution of fluid milk from two unregu-lated plants (one in Springfield, Vt., andthe other in Portsmouth, N.H.) in directcompetition with regulated handlers.The regulation of that area was mostrecently considered at a hearing held atSturbridge and Boston, mass., during theperiod October 21-28, 19069. On the basisof that record the Acting Assistant SeC-retary recognized that, due to the pro-curement practices of and the volume offluid sales by the two dealers, the situa-tion in Franklin County was the leaststable of any portion of the area thenunder consideration. He concluded, how-ever, that regulation of Franldin Countyappropriately should not be accomplishedwithout a further hearing "in whichthere would be opportunity to adjust themarketing area boundaries to moreclosely reflect the primary sales area ofthe handlers to be regulated."

Proponents' current proposal was ad-vanced to overcome the deficiency of theprevious proceeding.

Official notice is taken of that part ofthe Acting Assistant Secretary's decisionof April 3, 1970 (35 F.R. 5695) dealingwith the extension of regulation.

Over a period of many years thehandling of milk in the New Englandstates has been subject to state and/orFederal regulation. Federal regulationwas initially confined to the Boston areabut over the years it has been graduallyextended to include essentially all ofsouthern New England (including south-ern New Hampshire), except westernMassachusetts. Concurrently, with theinstitution of Federal regulation inRhode Island and Connecticut, State


regulation there was withdrawn. In thecase of New Hampshire, Federal regula-tion was instituted immediately follow-ing the removal of State regulation. TheStates of Massachusetts, Maine, andVermont continue to have active milkcontrol agencies.

The extension of Federal regulation inMassachusetts beyond the greater Bostonarea essentially has been a step-by-stepaction, as necessitated for the purposeof maintaining orderly marketing. Al-most every such action originated withthe decision of some dealer(s) serving aparticular local market to circumventeffective state regulation through theprocurement of milk from out-of-statesources. Originally, separate regulationwas instituted in the Fail River, Lowell-Lawrence (Merrimack Valley), Spring-field, Worcester, and Southeastern NewEngland markets. The separate regula-tions were subsequently combined withthe Boston regulation into a single orderand in recent years most of the inter-vening and neighboring territory hasbeen gradually added to the marketingarea as the situation required.

The preponderance of dairy farmersin New England are producers underthis, or the Connecticut, order. In theNew England area as a whole more than80 percent of the milk is under Federalregulation. Almost 90 percent of the Ver-mont production is Federal order milk.Only those dairy farmers having a ClassI outlet withlocal State-regulated dealersare not associated with Federal regula-tion. The-Federal orders carry essentiallythe total reserve milk supply for all ofNew England with the exception of cer-tain remote Maine markets. Only in theState of Maine, where about 40 percentof the milk is priced under the Federalorder, is there any significant number ofdairy farmers under State regulation. Be-cause prices under the several Stateorders are closely correlated with Federalorder prices, orderly marketing has gen-erally prevailed in the State-controlledareas as long as local dealers purchasedessentially only intrastate milk. An un-stable market situation develops whendealers circumvent effective regulationby dropping local producers and relyingon an out-of-State supply source, or bysupplementing their local milk with out-of-State purchases.

Several of the larger handlers underthe present order distribute essentiallythroughout New England and operateboth pool and nonpool plants. Wheneverthe competition in a local Massachusettsmarket has turned to the use of out-of-State milk, these handlers in most cir-cumstances have had the flexibility toadjust their distribution patterns as be-tween their regulated and unregulatedplants to maintain a competitive posi-tion. Other single plant handlers, how-ever, in many circumstances have beenseriously disadvantaged because of theirhigher procurement costs at minimumprices fixed under the terms of the order.The pool has suffered through loss ofClass I sales, and in many circumstanceshas been burdened with the addition of

PROPOSED RULE MAKING

the milk of those dairy farmers who losttheir local market.

This was precisely the circumstancewhich prompted the request for extensionof regulation into Franklin County in1969. A substantial handler operatingboth pool and nonpool plants and dis-tributing milk through his own dairystores opened several such stores inFrandIn County serving them from hisPortsmouth, N.IL, unregulated procezsngplant with -ilk procured from the Stateof Maine at prices well below the mini-mitn Federal order Class I price.

By coincidence or as a result of thedeteriorating market situation, in Juno1969 (between the time of the hearingrequest and the opening of the hearing)the only remaining substantial Stateregulated dealer in Franklin County coldhis business in Greenfield, Mass., to aSpringfield, Vt., partially regulated han-dler. The Greenfield plant was clo:ed andall processing was concentrated in theSpringfield plant. The 27 producers pre-viously supplying the Greenfield opera-tion were left without a market and lack-ing other alternatives became producersunder Order No. 1. The more than 000,000pounds per month Class I sales madethrough the Greenfield plant (now a di-tribution depot) have been largely sup-plied by purchases of milk from a Port-land, Maine, plant and occasionally bypurchases from a Bangor, Maine, plant.

On occasion, tankloads of milk so pur-chased from Maine dealers in exces ofthe Springfield dealer's Immediate needshave been received at the Sprinafleldplant and then reshipped back to Maine.While the record does not disclose thecircumstances of'such transactions, theprocedure effectively circumvents boththe Vermont and Maine lprice regula-tions, to the advantage of both dealers.

During the period July 1969 throughJune 1970, this dealer purchased ap-proximately 7 million pounds of non-federally regulated milk from Mainedealers. This milk cost him f.o.b. hisplant in Springfield a little less than theOrder 1, 21st zone blend price. Since thesimple average of the monthly zone 21order blend prices for the first half of1970 was $5.84, his costs were a minimumof 47 cents less than the price which hewas required to pay for local VermontState controlled milk during the sameperiod and about $1.62 below the effec-tive Order 1 Clas I price in the 12thzone (Springfield).

It is not possible on the basis of thisrecord to specifically construct the totalreceipts or sales of this dealer. It i-apparent, however, that he, like otherlocal dealers, operates preponderantlyonly a Class I business. During the periodJuly 1969 through June 1970 his totalreceipts were in excess of 38 millionpounds. Thus, notwithstanding his sub-stantial purcbaes of Maine mlk and ofFederal order milk, his predominantsource of supply is local dairy farmers.

The quantity of milk which this dealerreceived from Maine sources during the3 months immediately precedlng theOctober session of the hearing was sub-

7745

stantially below his average ionthlyrezeipta from such sources during theprevious 12-month period. He testified toreceiving only 230,521 pounds of Mainemilk during the period July throughSeptember 1970, a monthly average of7.000 pounds, or about 10 p.:rcant of his

average monthly recaipts from suchsource during the preceding 12 months.

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