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BIOGRAPHICAL SKETCH OF CAPT. AUSTIN C. WAGNER, U.S. COAST GUARD
Born on May 24, 1919, in New York, Austin C. Wagner attended Mount Vernon

High School, Mount Vernon, N.Y., Severna School, Severna Park, Md., and nie? Lehigh University, Bethlehem, Pa.

He graduated from the U.S. Coast Guard Academy, New London, Conn., with a B.S. degree and a commission as ensign on December 19, 1941, shortly after the bombing of Pearl Harbor.

During World War II, he served his first assignment on board the Coast Guard 17. dt 13 combat cutter Campbell on North Atlantic convoy escort duty until June 1943, er and qe during which the cutter attacked four submarines and sank a fifth in February

of 1943. During the remainder of the war he served first as executive officer and
then as commanding officer of the destroyer escort U.S.S. Rhodes (DE-381) in
the North Atlantic. He received a commendation ribbon for outstanding duty
while commanding that vessel during the rescue of six survivors from oil and
gasoline surface fires resulting from the collision between the tankers Nasbulk
and Saint Mihiel on April 9, 1945.

Between August 1945 and August 1948, he served as adviser and instructor ded to in the establishment of a Coast Guard for the Korean Government. During the

following 2 years, he was director of the Coast Guard Auxiliary and recruiting
officer in the Chicago area of the Ninth Coast Guard District. In September 1950,
he became executive officer of the Coast Guard cutter Dexter, a 311-foot ocean
station patrol vessel operating out of Alameda, Calif.

From September 1951 to July 1955, he was stationed at the Coast Guard
Academy as instructor of seamanship and navigation and as sailing coach. He
next commanded the 311-foot cutter Castle Rock out of Boston, Mass., on ocean

station patrol in the North Atlantic until August 1957. At that time he was n internet reassignel to the first district office in Boston as diretcor of auxiliary and as il pidime public information officer.

In July 1960, he was assigned to Coast Guard Headquarters, Washington, D.C., as a where he first served as assistant chief and then as chief, special services division,

office of personnel, for 4 years. His duties in that post dealt with medals and MADTo awards, morale and discipline, survivors benefits, and personnel security among

Captain Wagner served his next tour of duty as commandant of the cadets at Captain the Coast Guard Academy from July 1964 to July 1967. At that time he assumed be raise his post as commanding officer of the Coast Guard Base, St. George, Staten

Island, N.Y.

In June 1968, he became commanding officer, Coast Guard Base, Governors ty Tin Island, NÀY.

Captain Wagner's World War II campaign service medals and ribbons include ci il the following: American Defense; American Area; European-African-Middle une liste Eastern Area (with three battle stars) ; Asiatic-Pacific;. Navy Occupation for alis his Korean service, as well as the Navy Commendation Ribbon. He also has the Bosto. National Defense Service Medal and Ribbon.

He was promoted in rank as follows: Cadet, August 5, 1938; ensign, Decem-al and ber 19, 1941 ; lieutenant (jg.), October 1, 1942; lieutenant, May 15, 1943; lieutenant

commander, October 3, 1945; commander, June 1, 1956; captain, July 1, 1963.

Captain Wagner was married on August 7, 1942, to the former Elaine C. WagHe sa mer correct) of Delmar, N.Y., a graduate of the Connecticut College for Women.

They have three sons, Keith (Feb. 16, 1944) ; Cort (Dec. 10, 1919); Craig (March Drittet 24, 1951).

Nominated for rank of rear admiral, June 5, 1970.

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Senator HARTKE. Mr. Brewer, do you have a statement you would like to make this morning?

Mr. BREWER. Thank you Mr. Chairman. I believe not.

Senator HARTKE. Mr. Brewer, we are involved in a time in which the thie pe Interstate Commerce Commission is the subject of some discussion,

especially in light of the recent events concerning the Penn Central Railroad and the potentials of what may happen to some of the other railroads.

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Senator Hartke. Have you read the Nader report o
Mr. Bazwer. The testimony. I have not read the re
I
Senator Hartke

. Do you have any views as to wh

nk you can make a valuable contribution

Mr. Brewer

. I think very careful studies have service on the ICC?

Thether conglomerates are good or bad, whether the Mr. Chairman. I am delighted to have whether they don't. I am reminded, as just a bac pre you and to answer your questions.

+ the Bank Holding Act of 1956, which was created experience in Government, many years

Tavern Bancorporation and I have some feeling of with transportation problems, 10 years

her company should have other interests. ut the United States and Alaska, as an

I would want to find out whether there was disi nistrator for many years, as regional

in.reda, diverting funds into other areas. I don't kn partment with 1,400 post offices, 18,000

are some of the problems we have, some of the questi ntain area that was facing very many

sk

. I do not pose as being knowledgeable in this sportation of mail, I have ridden many

vald vant to ask those questions and try to get the d people, negotiated contracts with many ncial area as president of a corporation read the transcript of his testimony. other means of transportation. ' viewpoint, I know the problems of the

of the problems of trying to get your and be a public counsel for the IOC? mpany we had a fleet of our own common r trucks, which seems to me to be some of their problems. at a considerable amount of time dealing that. I would like to find out a little bit more about 5, particularly in the Four Corners ares. a comprehensive plan, a long-range Of that Commission was development of the well and very broadly.

Four Corners Commission.

for the underdeveloped areas of the Naybe I would be able, hopefully, to gather Senator Hartke. This appointment is for 7 years

information and assess it and make any has been open since the first of January of this ! wer, have you made any special studies

stances surrounding the ICC's hearingsr. BrzwER. Yes, sir. sight? ead the hearings you presided over, and

litman about the Federal Railroad Administratio as carefully as I could in the time I have a ning very shortly.

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Mr. Brewer. The ombudsman type thing?
Senator Hartke. Well, public counsel

, call it what Mr. Brzwer. Well, that is what we use. I don't have

It's my impression that the ICC should be the ad ser fest

, and the shipper and of the carrier, keepi alysophy of the national transportation policy, wh Joznat say at this point whether I have a strong hat, as to whether or not it should have a public cour

probably a little less. But it is your intention to serv

Sestor Hartke. I might remark that the same w

It
. Bawza. In view of Senator Baker's stateme

k it would be probably a little presump-
ve come to any definite conclusions.
an input, as much information as I could

the other committees.

ou come to any conclusions about what I might not be able to serve out the 7 years. posals, if any, you might have for the Stator Baker. Let me hasten to say to the witnes

partly facetious. I think as you probably know, t moment was to authorize the creation of a commiss bility of a consolidation of functions of the o

(unigaion, and the ICC. I couldn't resist that ji you have made a valuable contribution in 10 admiration for this witness, Mr. Chairmai

wator Hartke, Senator Cotton, do you have any asumer view point, from the shipper vier

30:Cotton. Yes, I have a few questions, Mr. C I think we are in a crisis in transportation cing with the other commissioners I would

inter, and had an interesting conversation w cion by finding solutions to some of thes Du studied the ICC staff study on conglom

18. tour investments. As is our custom, that -ot. I do have some views on conglomerates

Dend of this proceeding but will be retaine

W use when I get on the Commission. re some of those views?

may I say that I have

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Mr. BREWER. I think very careful studies have to be made as to

whether conglomerates are good or bad, whether they solve anything Tigiteht or whether they don't. I am reminded, as just a background thought, Fur Clå

of the Bank Holding Act of 1956, which was created when I was with

Western Bancorporation and I have some feeling of whether or not a blema carrier company should have other interests.

I would want to find out whether there was disinvestment in the railroads, diverting funds into other areas. I don't know this. But these are some of the problems we have, some of the questions I would want to ask. I do not pose as being knowledgeable in this area at all, but I would want to ask those questions and try to get the answers.

Senator HARTKE. Have you read the Nader report on the ICC?

Mr. BREWER. The testimony. I have not read the report in detail, but fa corpo

I read the transcript of his testimony.

Senator HARTKE. Do you have any views as to whether or not there
should be a public counsel for the IOC?

Mr. BREWER. The ombudsman type thing?
Senator HARTKE. Well, public counsel, call it what you will.

Mr. BREWER. Well, that is what we use. I don't have any strong views
on that. I would like to find out a little bit more about it.

It is my impression that the ICC should be the advocate of the consumer first, and the shipper and of the carrier, keeping in mind all the philosophy of the national transportation policy, which seems to cover rather well and very broadly.

I cannot say at this point whether I have a strong opinion, I do not have, as to whether or not it should have a public counsel.

Senator HARTKE. This appointment is for 7 years, although the va-
cancy has been open since the first of January of this year, so that means
probably a little less. But it is your intention to serve out the complete
term?

Mr. BREWER. Yes, sir.
Senator HARTKE. I might remark that the same would apply to Mr.

Whitman about the Federal Railroad Administration. I understand he
Led one is leaving very shortly.

Mr. BREWER. In view of Senator Baker's statement a few moments ago, I might not be able to serve out the 7 years.

Senator BAKER. Let me hasten to say to the witness that I was being partly facetious. I think as you probably know, that the bill I introduced was to authorize the creation of a commission to consider the

feasibility of a consolidation of functions of the CAB, the Maritime isloc Commission, and the ICC. I couldn't resist that jibe, because I have

such an admiration for this witness, Mr. Chairman, having had him
before other committees.

Senator HARTKE. Senator Cotton, do you have any questions?
Senator Cotton. Yes, I have a few questions, Mr. Chairman.
First
may

I say that I have gone into your record with some care
Mr. Brewer, and had an interesting conversation with you. I am per-
sonally very much impressed by your background and capability.

Mr. Brewer. Thank you, Senator.
Senator Cotton. Now I assume you have filed with the committee,
a list of your investments. As is our custom, that list will not be put
into the record of this proceeding but will be retained in the files of the
committee.

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year ended December 31, 1969, operating revenues of ng of course is open to the inspection of het inome after taxes of $1,628,375. e it here.

Acordingly it would appear that the subsidiary p your point of view you have any invest stributes to the consolidate company approximately you or might be regarded as a possible

perennes and 9 percent of the net income of all the co duties as an Interstate Commerce

Sol am not aware of any other holdings that are su

nisson and I would disqualify myself immediately, that is no at this time. I need to quality Company or any of its subsidiaries become invo nto this very carefully and in my letter to win the Commission

The pipeline regulation, I am told by members of a Williams Bros. upon my confirmation medievalnation. Since 1961 only nine pipeline

I detailed all of my holdings. exclusively a pipeline company.

to your

he company. It deals with oil pipelines as base I think unfair inferences may

the ICC General Counsel's office upholds

ya under consideration involving a pipeline?

Mr. Brewer. Right.

bare been protested amounting to 0.00037, so it is m

Bet the advice I have from the General Counsel of OS., a small company in Oklahoma. I but the de minimus rule, is there is no way I could

casting any kind of a vote in the matter. you say the nature of that company was! Senator Cotton. I don't like to go into these ma

be drawn,

bu - letter promptly upon contour answer that : First, a very, very

minimal

part

Company's activities are regulated by the Commission th Ashland Oil and Refining Company of Kr. Brewer. Yes.

Szator Corrow. Second, your stock ownership is y carefully and I have discussed the mattist proportionately to the outstanding stock of

of the Interstate Commerce Commission Mr. Brewer. Right. Dunsel. And the answer is that there is not Nerator Cotton. And, third, it would be your inten _ve any great impact. In fact, the de mini elf from participating in any case which the C El are traded on the New York Stock Ex Senator Cotton. I think that attitude is entirely cor olders of shares of common stock. Based on commission in a position where they must 30, 1968, there were 5,335 holders of share Ion't like to see the situation arise where wes 1969, Ashland Oil, Inc, had on Septemmer situation, because it would be so infrequent]

of which I hold 2,733 shares and the Commissioner would have to disqualify hin Ending as of September 30, 1968, 20,426,76 Ils gather that although your holdings in Ashla

far less than 1/10 of 1 percent. According they are rather substantial compared with you that company as minimal could be consid

Cortos. And if you had to dispose of th shland Oil, Inc. for the year ended Decem*Bezwer. A very great sacrifice at this point.

vator Coor. May I say, Mr. Chairman, along t] ssets of $70,310,861. As to total net as M. Brewer, we Kentuckians are kind of

to the Interstate Commerce Commission _vere $846,412,000. This would indicate

that his stock, but knowing the activities sites to the consolidate company appros position that if he were forced to dis Inc. on a consolidated balance sheet as ollentucks-based corporation. I have no idea

as from participating in certain classes of cases.

148 shares of $2.40 cumulative convertible to do it. But a Commission could get into a sit

ilable to me, and upon examination of dings are very very low. In fact my tota which I hold 1,465 shares and this would

Kistratirely intolerable.

wmpared with the total amount of stock outsta

ments of the Ashland Pipe Line Company

bitert substantial loss at this time. tal assets of all the companies. The pared solidated income account for the fiscal yestos. I wasn't suggesting that he disp

alkland. I am sure that if we need any assurance net sales and revenues of $1,151,499,000 and

the company it has been furnished by =52,343,000. The subsidiary reported for the

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year ended December 31, 1969, operating revenues of $14,326,709 and
net income after taxes of $4,628,375.

Accordingly it would appear that the subsidiary pipeline company ce contributes to the consolidate company approximately 1 percent of the as revenues and 9 percent of the net income of all the companies.

So I am not aware of any other holdings that are subject to the Com

mission and I would disqualify myself immediately should Ashland eddy Oil Company or any of its subsidiaries become involved in anything in or before the Commission.

The pipeline regulation, I am told by members of the Commission,
Posis is mostly evaluation. Since 1961 only nine pipeline rate adjustments

have been protested amounting to 0.00037, so it is mostly evaluation.

But the advice I have from the General Counsel of ICC, who talked | Oklot about the de minimus rule, is there is no way I could benefit myself by

casting any kind of a vote in the matter.

Senator Cotton. I don't like to go into these matters too deeply oil pipe because I think unfair inferences may be drawn, but I gather from pelin your answer that: First, a very, very minimal part of the Ashland

Company's activities are regulated by the Commission?
Mr. BREWER. Yes.

Senator Cotton. Second, your stock ownership is a very minimal mondi amount proportionately to the outstanding stock of the corporation?

Mr. BREWER. Right.

Senator COTTON. And, third, it would be your intention to disqualify act, these yourself from participating in any case which the Commission might

have under consideration involving a pipeline?
Mr. BREWER, Right.

Senator Cotton. I think that attitude is entirely commendable. HowZolders ever, I don't like to see the situation arise where we start having memostat bers of a commission in a position where they must disqualify themer selves from participating in certain classes of cases. I am not thinking

of your situation, because it would be so infrequently that you would
have to do it. But a Commission could get into a situation where this

or that Commissioner would have to disqualify himself from almost in fare every decision, which could develop into a situation that would be

administratively intolerable.

I also gather that although your holdings in Ashland are very mini

mal compared with the total amount of stock outstanding in the comIt doit pany, they are rather substantial compared with your other holdings?

Mr. BREWER. Precisely.

Senator COTTON. And if you had to dispose of that stock, it would be a great personal sacrifice.

Mr. BREWER. A very great sacrifice at this point.

Senator Cook. May I say, Mr. Chairman, along that line, that in all fairness to Mr. Brewer, we Kentuckians are kind of partial to Ashland Oil, a Kentucky-based corporation. I have no idea at what price Mr. Brewer bought his stock, but knowing the activities of the market, he could be in a position that if he were forced to dispose of it, it would mean a very substantial loss at this time.

Senator Cotton. I wasn't suggesting that he dispose of his holdings in Ashland. I am sure that if we need any assurance about the respectability of the company it has been furnished by the Senator from Kentucky

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