Official Document Text
Source: The American Presidency Project (UCSB Archive)
On August 15, 1971, I issued Executive Order 11615 establishing a freeze on prices, rents, wages and salaries for a period of 90 days from the date of that order and establishing the Cost of Living Council as the agency with primary responsibility for administering the Economic Stabilization Program. Subsequently, I issued Executive Order 11627 which continued the Cost of Living Council and established a Pay Board and a Price Commission. Under the terms of that order, the Cost of Living Council established broad stabilization goals for the Nation and the Pay Board and Price Commission, acting through their respective Chairmen, prescribed specific standards, criteria and regulations and made rulings and decisions aimed at carrying out goals of the Economic Stabilization Program. On December 22, 1971, I signed into law amendments to the Economic Stabilization Act of 1970. To reflect changes made by these amendments and to reaffirm the existing delegation of authority to the Cost of Living Council, I substituted Executive Order 11640. As the result of efforts under the Economic Stabilization Program, by public officials and private citizens alike, the rate of inflation has been significantly reduced. However, in furtherance of the goals and for the reasons set forth in my message to the Congress of this date, I have determined that to continue to stabilize the economy, reduce inflation, minimize unemployment, improve the Nation's competitive position in world trade, and protect the purchasing power of the dollar, all in the context of sound fiscal management and effective monetary policies, the Economic Stabilization Program should be continued, building upon the solid foundation of achievement accomplished in the past and redirecting our efforts to respond to the needs of the current year. Now, THEREFORE, by virtue of the authority vested in me by the Constitution and statutes of the United States, particularly the Economic Stabilization Act of 1970, as amended, it is hereby ordered as follows: SECTION 1. (a) The Cost of Living Council (hereinafter referred to as the "Council"), established by section 2 of the Executive Order 11615 of August 15, 1971, is hereby continued. (b) The Council shall be composed of the following members: The Secretary of the Treasury, the Secretary of Agriculture, the Secretary of Commerce, the Secretary of Labor, the Secretary of Health, Education, and Welfare, the Secretary of Housing and Urban Development, the Director of the Office of Management and Budget, the Chairman of the Council of Economic Advisers, the Director of the Office of Emergency Preparedness, the Special Assistant to the President for Consumer Affairs and such others as the President may, from time to time, designate. The Secretary of the Treasury shall serve as Chairman of the Council and the Chairman of the Council of Economic Advisers shall serve as Vice Chairman. The Chairman of the Board of Governors of the Federal Reserve System shall serve as adviser to the Council. (c) There shall be a Director of the Cost of Living Council who shall be appointed by the President, be a member of the Council, be a full-time official of the United States, be the Council's Chief Executive Officer, and be compensated at the rate prescribed for Level III of the Executive Schedule by section 5314 of Title 5 of the United States Code. SEC. 2. (a) Except as otherwise provided in subsection (b) of this section, all the powers and duties conferred upon the President by the Economic Stabilization Act of 1970, as amended, are hereby delegated to the Chairman of the Council, including, without limitation, the power and duty to make the determinations and take the actions required or permitted by the act. (b) The authority conferred by or pursuant to this order shall not extend to the prices charged for raw agricultural products until after the first sale thereof. (c) The Council shall develop and recommend to the President policies, mechanisms and procedures to achieve in making determinations under that act and related statutes. (ii) In order to assure that unacceptable wage rates shall not be utilized in Federal or federally related construction, the heads of all Federal departments and agencies, subject to the direction and coordination of the Chairman of the Cost of Living Council: (1) shall review all plans for construction and financial assistance for construction in localities in which wage or salary increases have been certified by the Chairman of the Cost of Living Council to be unacceptable and shall, on the basis of that review, determine whether such plans can be approved or continued; and (2) shall review current and prospective construction contracts for Federal construction and for construction on projects receiving Federal financial assistance in the area affected by a certification by the Chairman of the Cost of Living Council and shall, on the basis of such review, determine whether such contracts can be awarded or continued. SEC. 6. (a) There is hereby established the Cost of Living Council Committee on Health to be composed of the Director of the Council, who shall be its Chairman, the Vice Chairman of the Council, the Secretary of the Treasury, the Secretary of Health, Education, and Welfare, the Director of the Office of Management and Budget, and such others as the President may, from time to time, designate. The Committee shall review Government activities significantly influencing health care expenses and make recommendations to the Chairman of the Council concerning these matters. (b) There is hereby established a Health Industry Advisory Committee. This Committee shall be composed of such members as the President may, from time to time, appoint. The President shall designate the Chairman of the Committee. The Committee shall provide advice to the Council on the operation of the Economic Stabilization Program in the health industry and other matters related to health care expenses. SEC. 7. (a) There is hereby established the Cost of Living Council Committee on Food which shall be composed of the Chairman of the Council, who shall be its Chairman, the Vice Chairman of the Council, the Director of the Council, the Secretary of Agriculture, the Director of the Office of Management and Budget and such others as the President may, from time to time, designate. The Committee shall review Government activities significantly affecting food costs and prices and make recommendations to the Chairman of the Council concerning these matters. (b) There is hereby established a Food Industry Advisory Committee. This Committee shall be composed of such members as the President may, from time to time, appoint. The President shall designate the Chairman of the Committee. The Committee shall provide advice to the Council on the operation of the Economic Stabilization Program in the food industry and other matters related to food costs and prices. SEC. 8. There is hereby established a Labor-Management Advisory Committee. This Committee shall be composed of such members as the President may, from time to time, appoint. The Committee shall provide advice to the Chairman of the Council on methods for improving the collective bargaining process and for assuring wage and salary settlements consistent with gains in productivity and the goal of stemming the rate of inflation. SEC. 9. The Committee on Interest and Dividends established by section 9 of Executive Order 11627 is hereby continued. The Committee shall be composed of the Chairman of the Board of Governors of the Federal Reserve System, the Secretary of the Treasury, the Secretary of Commerce, the Secretary of Housing and Urban Development, the Chairman of the Federal Deposit Insurance Corporation, the Chairman of the Federal Home Loan Bank Board, and such others as the President may, from time to time, designate. The Chairman of the Board of Governors of the Federal Reserve System shall serve as Chairman of the Committee. This Committee shall, subject to review by the Council, formulate and execute a program for obtaining voluntary restraints on interest rates and dividends. SEC. 10. (a) The Pay Board and Price Commission established by sections 7 and 8 of Executive Order 11627 are hereby abolished effective not more than 90 days from the date of this order or such earlier date as the Chairman of the Cost of Living Council may designate. The Board and the Commission during this transition period shall provide for winding up any outstanding matter involving them subject to the direction of the Chairman of the Council. (b) The Committee on the Health Services Industry established by section 10 of Executive Order 11627 is hereby abolished. (c) The Committee on State and Local Government Cooperation established by section 11 of Executive Order 11627 is hereby abolished. (d) The Rent Advisory Board established by section 11A of Executive Order 11627, as amended, is hereby abolished. (e) The Chairman of the Council shall make appropriate provision for the disposition of the records, property, personnel, and funds relating to the agencies and committees abolished by this section. (f) In order that the confidential status of any records affected by this order shall be fully protected and maintained, the use of any confidential records transferred pursuant to this section shall be so restricted by the Chairman of the Council as to prevent the disclosure of information concerning individual persons or firms to persons who are not engaged in functions or activities to which such records are directly related, except as provided for by law or as required in the final disposition thereof pursuant to law. SEC. 11. (a) Whoever willfully violates this order or any order or regulation continued or issued under authority of this order shall be subject to a fine of not more than $5,000 for each such violation. Whoever violates this order or any order or regulation continued or issued under authority of this order shall be subject to a civil penalty of not more than $2,500 for each such violation. (b) The Chairman of the Council may in his discretion request the Department of Justice to bring actions for injunctions authorized under section 209 of the Economic Stabilization Act of 1970, as amended, whenever it appears to him that any person has engaged, is engaged, or is about to engage in any acts or practices constituting a violation of any regulation or order continued or issued pursuant to this order. The relief sought may include a mandatory injunction commanding any person to comply with any such order or regulation and restitution of monies received in violation of any such order or regulation. (c) The Chairman of the Cost of Living Council, or his duly authorized agent, shall have authority for any purpose related to the Economic Stabilization Act of 1970, as amended, to sign and issue subpoenas for the attendance and testimony of witnesses and the production of relevant books, papers, and other documents, and to administer oaths, all in accordance with the provisions of section 206 of the Economic Stabilization Act of 1970, as amended. SEC. 12. Executive Order 11588 of March 29, 1971, Executive Order 11640 of January 26, 1972, Executive Order 11660 of March 25, 1972, and Executive Order 11674 of June 29, 1972, are hereby superseded. RICHARD NIXON The White House, January 11, 1973.