have that now. Whether it takes the form of an expanded FPC, or whether it takes the form of the new environmental agency with totally new powers in an emergency of that kind I am not prepared to say. It does require straightening out.

Mr. CONTE. In conjunction with the repeal, or doing away with the import restrictions on No. 2 oil, you mention in vour statement the Louisiana and Texas compact. the so-called Connally Hot Oil Act. This definitely should be repealed, should it not, in order to increase production of this oil for the people of New York and New England? Mayor LINDSAY. Correct.

Mr. CONTE. In closing I again want to compliment you, Mr. Mayor. I agree with you that the situation is serious. And not only is the present quota system a cruel hoax on the taxpayers of this country, but the money that it is costing the consumer is just unbelievable.

I was just talking with an industry representative last week, and he said that his company's new contract for No. 6 oil is going to cost them $830,000 more than the price that they had to pay last year.

I think there has been a conspiracy here among the oil companies of this country not to produce this No. 6 oil just to drive the price up to where they want it.

Mr. EVINS. Will the gentleman yield?

This is the preliminary conclusion that I have reached. And I share that reasoning with him. The Government has taken no action. But all reports of the Federal Power Commission, the Office of Emergency Preparedness, the Department of the Interior and the President's adviser, pointed up the shortage, pointed up the need. We all know that the import system is still working, that the oil production is limited. The coal reserves are estimated to be abundant, and there are adequate supplies of coal if we could get distribution. But the environmentalists have moved into the act, and they don't want nuclear power development because of the fear of nuclear radiation, and they don't want steam power built because of the pollution aspects. And the President's science adviser has just come out with a report that came to my desk this morning-and I am going to ask that it be evaluated and put in the record-calling for a balanced system of producing more electricity, and at the same time controlling the environmental aspects.

So we have got to move ahead if we are going to have a power supply for this country. Estimates are that the demand is doubling every 10 years. Actually the private power companies, Commonwealth, Edison and the rest of the group, don't want any more electric powerplants built. They fight every power project that is proposed and advanced in Congress. They don't want any public power built. And the coal people have advanced their prices. So this is another reason the cost of electricity is going up.

Somebody writes to me and asks; who is setting the policy on the prices on electricity today? Electricity is going up. It used to be going down, and now it is going up.

I am pleased to report, and I hope the mayor is pleased, that public power from the TVA area is helping serve the crisis in New York. Mayor LINDSAY. It is.

Mr. EVINS. So I would say, Mr. Mayor, that we not only need public power, but we need private power in this country, and all that

the private power people can build. I want to urge the private power people to build more electric powerplants. And I want to urge that the coal reserves be used. And we are looking for a solution.

Mr. SMITH. Mr. Addabbo.

Mr. ADDABBO. Thank you for coming down, Mr. Mayor, especially in view of our crisis back in New York, and a big one in my own county of Queens. I understand that you have taken care of it pretty well.

Mayor LINDSAY. You are OK.

Mr. ADDABBO. I think these hearings are very opportune at this time, because we just went through brownouts here in Washington and up in New York. And you can just imagine the catastrophe that we would have had if we had had a brownout, or blackout during these last 3 days of crisis that you just went through up in the city of New York. And what we experienced in the city of New York can be experienced in any State, because with a population of 8 million we would be equal to about No. 12 ranking as a State. New Mexico. claims that they were undercut by a hundred thousand population claiming they have a million people instead of 900,000 people. And right in the county of Queens we have over 2 million people.

And as far as we are concerned with it today the crisis is whether the Government is actually willing to take the steps necessary to assure that every citizen, no matter where they are, can obtain the basic necessities of life. We have heard the various agencies talking about it. But it all boils down to one thing. They are like the three monkeys. They hear, see and talk of no evil, but they know it is there. And we know it has been growing. I think that it is time that the President and his advisers stop ignoring the question and do something about it.

I think your recommendations presented to the New York congressional delegation a couple of weeks ago and to our committee today are very important.

This committee in particular is interested in the small businessman. In your statement you spoke about priorities. In the event of a real shortage, where would the small businessman come in the list of priorities?

Mayor LINDSAY. Obviously the priorities are first to the most basic needs, which is the distribution of electric power and heat. Those are the first things.

And then all of our emergency services-and New York City, as you know has 19 vast public hospitals and another 60 or 70 voluntary private hospitals. These are all priority areas. Our big school systems and the city university system are critical areas. Those areas where there are masses of people living in multiple dwellings or working in businesses are high up on any priority list. The small business man might be the man that would be hit the hardest if there is real rationing of fuel. He is like the individual person living at home.

Mr. ADDABBO. You also mention the statement that was made about the dealing for natural gas. When you speak of dealing for natural gas, are you speaking of the same companies, that is would you have to go to the same companies as far as the fuel oil and natural gas are concerned, are you speaking of the same group?

Mayor LINDSAY. There are severe shortages of natural gas, as you know. We just got through cutting the ribbons on a massive-I guess it is the world's biggest-tank in Staten Island to store liquified natural gas which will be used for space heating and also for emergency periods, peakload problems when air pollution is at its worse. Then you use reserves of natural gas that you have stored. We are going to be building another one of those big storage arrangements in this same area pretty soon.

Mr. ADDABBO. And in purchasing natural gas, are you purchasing it from the same concern that you will be purchasing fuel oil from? Mayor LINDSAY. Yes. The gas for this one that was just built will be supplied by Texas Eastern Transmission Co. With the shortages, this creates a great budgetary problem for us as far as the costs are concerned. The costs are big. We think that clean fuel is vastly more important than the cost of it. We think the cost is worth it. But is big. It does cost more. It costs more than electric power. In New York City the government is the biggest consumer of electric power. Our subway system alone is a very heavy consumer. The costs are astronomical when that electricity is supplied through clean fuels. The costs are going up. But it is a price that you have to pay, providing the regulatory arrangements are such that the public is protected against prices that are too high.

Mr. ADDABBO. I thank you, Mr. Mayor.

Thank you, Mr. Chairman.

Mr. SMITH. Mr. Horton.

Mr. HORTON. Thank you, Mr. Chairman. I have an opening statement which I would like to insert at this point in the record. (The statement follows:)

OPENING REMARKS BY REP. FRANK HORTON

Mr. Chairman, I want to join the distinguished senior member of our committee, Mr. Conte, in commending you for your decision to hold these timely hearings. I know of no state that confronts this present fuel and energy crisis more seriously than does my own. We in New York have been advised by the Chairman of our state Public Service Commission that there is a real possibility that New York City, along with other cities in the nation, may be required to ration fuel oil and gas, and therefore electricity as well, due to the existing shortage.

I also want to join Mr. Conte in identifying the fundamental source of our petroleum shortage problem-the mandatory oil import quota program. I was pleased to cosponsor his bill which would eliminate this program. As long as Americans are denied nearly total access to foreign oil imports we will remain at the mercy of our overprivileged oil industry.

The subject of our fuel and energy needs has been of particular concern to me in the past year. I was privileged to have served on a Republican Task Force on Earth Resources and Population under the auspices of the House Republican Research Committee.

For a year and a half our Task Force conducted an inquiry into this problem. Mr. Chairman, I would like to submit a copy of our report for the record at the close of my statement.

If I may at this point, I would like to highlight some of our findings that relate specifically to our fuel and energy needs.

Our Task Force found that our demand for electric power increased nationwide by nine percent in each of the past two years. Projecting a similar increase we would have a doubling of the demand in less than nine years, and eight times present needs by the year 2000.

While we will increasingly have to depend on nuclear energy, our need for fossil fuels will remain great. The outlook for natural gas resources, our Task Force found, is at this point uncertain. The same may be true of coal where supplies are virtually unlimited, but their full use made doubtful because of the polluting effect of sulphur oxide.

The remaining fossil fuel, petroleum, will increasingly be called upon to meet our energy needs. Fortunately, here the Task Force found that there are ample sources of potential exploitation. A major problem, however, as the Task Force report states, is that, "The gap between domestic supply and demand is widening rapidly and it appears unlikely that we will be able to restore our position of selfsufficiency in petroleum energy."

Mr. Chairman, I consider this finding one more damning indictment of our mandatory oil import quota program. Ostensibly created to prevent undue dependence on foreign oil and to encourage domestic exploration, we find that it has not accomplished these purposes, but has succeeded only in adding an additional 40 billion dollars in artificially high prices to consumers.

These developments reinforced my reasons for joining with my colleague, Mr. Conte, in sponsoring his bill to end the quotas.

Our Task Force did find, as I have indicated, that there are ample sources for petroleum exploration and development. Leaving aside our untapped Alaskan North Slope, the Task Force found that oil shales in Colorado, Utah and Wyoming may contain as much as 1.8 trillion barrels.

It may well be that a specific government subsidy might be needed to stimulate technological development to extract the oil from shale. Such a subsidy to my mind would be far more preferable to our present quota system which taxes the consumer and is disproportionately imposed on those of us in the Northeast.

In closing, I want to say, Mr. Chairman, that I am pleased that the committee will have as its first witness, the distinguished mayor of New York, John Lindsay. Mayor Lindsay, and his dynamic Commissioner of Consumer Affairs, Mrs. Bess Myerson Grant, have been working on this problem for some time, joining in support of many efforts designed to prevent the crisis we now face.

I look forward to hearing from the mayor and the many other distinguished witnesses we have scheduled for the next three days, and I am hopeful that we can identify some meaningful remedies which will provide relief not only to the hard-pressed small businessman, but to all American consumers.

(The Task Force Report referred to follows:)

EARTH RESOURCES AND POPULATION-PROBLEMS AND DIRECTIONS (Report and recommendations of the Republican Task Force on Earth Resources and Population, House Republican Research Committee)

Robert Taft, Jr.,

HOUSE REPUBLICAN RESEARCH COMMITTEE

Chairman.

TASK FORCE ON EARTH RESOURCES AND POPULATION

George Bush, Texas, Chairman; Tim Lee Carter, Kentucky; Louis Frey, Jr., Florida; James G. Fulton, Pennsylvania; Charles S. Gubser, California; Frank Horton, New York; Hastings Keith, Massachusetts; Donald E. Lukens, Ohio; Paul N. McCloskey, California; Charles A. Mosher, Ohio; Jerry L. Pettis, California; Howard W. Pollack, Alaska; Ogden R. Reid, New York; Guy Vander Jagt, Michigan; John Wold, Wyoming.

TESTIMONY

The Task Force heard testimony from the following persons:

6/5/69: Dr. Philander P. Claxton-Special Assistant to the Secretary of State for Population Matters. Dr. John Kepple-Director of Population Activities, United Nations Development Programs.

6/11/69: Dr. J.L. McHugh-Director, International Decade of Ocean Exploration, Dr. William Pecora-Director, U.S. Geological Survey, Dr. Donald Dunlap-Assistant and Science Adviser to the Secretary of Interior, Dr. S. Fred Singer-Deputy Assistant Secretary for Science Programs, Department of Interior.

6/12/69: Dr. Gary London-Director of Health Services, Office of Economic Opportunity.

6/17/69: Dr. R. T. Ravenholt-Director, Population Service, Agency for International Development.

6/19/69: Dr. Martin Forman-Director, Nutrition and Child Feeding Service, Agency for International Development, Mr. George Parman-Director, Food from the Sea Service, Agency for International Development.

6/24/69: Dr. James Cavanaugh-Deptuy Assistant Secretary for Health and Scientific Affairs, HEW, Dr. Carl Shultz-Director, Office of Population and Family Planning, HEW.

6/26/69: Dr. Thomas O. Paine-Administrator, National Aeronautics and. Space Administration, Dr. John Naugle-Associate Administrator for Space Applications, NASA.

7/8/69: Dr. Arthur A. Cambell-Deputy Director, Center for Population Research, NIH, Dr. Norman A. Himar-Chief, Program Liaison Branch, Center for Population Research, NIH.

7/10/69: Dr. Lee A. DuBridge Science Advisor to the President, Dr. John Buckley-Technical Assistant, Office of Science Technology, Dr. Donald R. King-Technical Assistant, OST, Dr. Eric B. Ward-Executive Secretary, Federal Council on Science and Technology,

7/15/69: General William H. Draper, Jr.-National Chairman, Population Crisis Committee, Col. Frank Borman-NASA.

7/17/69: Mr. J. Steele Culbertson-Director, National Fishmeal and Oil Association.

7/24/69: Dr. William Moran-President, Population Reference Bureau. E/29/69: Mr. Oscar Harkavy-Program Officer in Charge, Population Activities, Ford Foundation.

7/31/69: Dr. William McElroy-Director, National Science Foundation. Dr. Louis Levin-Executive Associate Director, NSF.

8/5/69: Dr. William Shockley-Professor, Stanford University, Dr. Arthur Jensen-Professor, University of California at Berkeley.

8/7/69: Earth Resources Survey Program Review Committee: Dr. John Naugle, NASA, Chairman, Mr. Leonard Jaffee, NASA, Dr. William Pecora, Interior, Dr. T. C. Byerly, Agriculture, Dr. Robert M. White, Commerce, Dr. William MacDonald, Navy, Mr. Robert Porter, NASA.

8/12/69: Dr. Paul R. Ehrlich-Professor, Stanford University.

9/9/69: Dr. Howard Tanner-Director of Natural Resources, College of Agriculture and Natural Resources, Michigan State University.

9/23/69: Dr. Bruce W. Halstead-Director, World Life Research Institute. 10/9/69: Dr. Roger O. Egeberg-Assistant Secretary for Health and Scientific Affairs, HEW.

10/28/69: Dr. George A. Doumani-Geologist, Science Policy Research, Legislative Reference Service, Library of Congress.

11/6/69: Dr. Daniel P. Moynihan-Counsellor to the President.

11/13/69: Hon. Donald Rumsfeld-Director, Office of Economic Opportunity. 11/20/69: Dr. Jean Mayer-Director, White House Conference on Food, Nutrition, and Health.

11/25/69: Hon. Shirley Chisholm-Member of Congress.

2/4/70: Dr. Harold L. James-Chief Geologist, U.S. Geological Survey, accompanied by Mr. Thor Kiilsgaard, Mr. David Davidson, Mr. Harild Kirkemo, and Mr. V. E. McKelvey.

2/19/70: Hon. Hollis Dole-Assistant Secretary for Mineral Research, Department of Interior, Mr. Gene Morrell-Deputy Assistant to the Secretary, and Mr. Jack Rigg, Special Assistant to the Assistant Secretary.

3/4/70: Mr. W. W. McClanahan-Executive Vice-President, National Coal Policy Conference, Mr. Claude D. Curlin-Information Director, Mr. B. L. Thompson Staff Economist, and Mr. W. A. Raleigh-Congressional and Government Relations.

3/11/70: Dr. Orris Herfindahl-Mineral Economist, Respources For the Future. 3/18/70: Dr. Raymond Ewell-Vice President for Research, University of New York at Buffalo, and Dr. Jack Lippes—Medical Director of Planned Parenthood Center, Buffalo, New York.

3/25/70: Mr. Allen Overton-Executive Vice President, American Mining Congress.

4/7/70: Hon. Russell E. Train-Chairman of the President's Council on Environmental Quality.

4/15/70: Mr. David S. Freeman-Director of the Energy Policy Staff of the Office of Science and Technology.

4/21/70: Mr. Skip Spensley-Director of Environmental! Inc., Washington, D.C.

5/12/70: Mrs. Jeannie Rosoff-Manager, Washington Office, Planned Parenthood-World Population.