Mr. PICKLE. I just want to add my word of thanks to Dr. Heath and Mr. McCracken for being with us. I think your request is in line, and I hope the committee will keep that in mind when it considers it.

Mr. VAN DEERLIN. Dr. Harry Malin, who is your association spokesman in San Diego, Calif., called me to say that they wanted this language included that you have indicated. He says that, even without this language, he would expect that optometry would automatically be included. This would be an assumption on their part. This is an assumption on which you don't rely too strongly?

Dr. HEATH. That is correct, sir.

Mr. VAN DEERLIN. You would like to have it spelled out?

Dr. HEATH. We think that to be specifically included avoids any possible later misinterpretation of congressional intent.

Mr. VAN DEERLIN. Thank you.

The CHAIRMAN. Thank you very much. We are pleased to have your statements.

I think we will give opportunity, if there is no objection, to anyone who would like to file a statement for the record or who would like to supplement his statement for this record. The record will be held open this week for that purpose.

The next witness will be Mr. Charles O. Reville, Jr., vice president in charge of sales, and you have with you Mr. Lyle Lodwick, director of marketing of the Williams & Wilkins Co., Baltimore.

STATEMENTS OF CHARLES 0. REVILLE, JR., VICE PRESIDENT IN CHARGE OF SALES, AND LYLE LODWICK, DIRECTOR OF MARKETING, WILLIAMS & WILKINS CO., BALTIMORE, MD.

Mr. REVILLE. Mr. Chairman, mine is a summary statement.

The CHAIRMAN. Your statement which you have passed around will be included in the record.

Mr. REVILLE. Yes, sir. And since it contains some points that have not been touched on before, I will read partially from it, but in consideration of the people who will follow me, I will skip a good

deal of it.

The CHAIRMAN. All right.

Mr. REVILLE. I am Charles O. Reville, Jr., and with me is my colleague Lyle Lodwick. I am vice president for sales and Mr. Lodwick is director of marketing of the Williams & Wilkins Co., of Baltimore, Md., which is a private corporation devoted primarily to the publication and distribution of medical books and journals.

Medical education and communications, as represented by books: and journals, are our stock in trade, and medical library facilities are essential links in this chain of communications. Obviously the passage of H.R. 3142 would have a direct and desirable effect on our financial well-being. A portion of increased funds available for book and journal acquisition-dependent on the value of our publications and our abilities to produce and distribute them-would certainly show up favorably in our sales figures. Even if we did not. agree entirely with the compelling philosophical, educational, and humanistic arguments for this bill, the effect of it on our own profit

and-loss statement would incline us toward at least considering endorsement. All considered, we are more than inclined.

The Williams & Wilkins Co., like so many of our good friends in medical education, strongly supports the intent and purposes of H.R.

-3142.

We would ask, however, that an amendment be added as follows in section 397 on page 18 following line 24:

(C) to refrain from purchasing from foreign booksellers those publications originating outside the United States when these publications are available through recognized trade channels domiciled within the United States.

This amendment is quite frankly aimed at a practice in the publishing industry known as "buying 'round." Buying 'round occurs when a publisher or agent such as ourselves contracts with a foreign publisher to sell a book or a series of books in the United States, such titles being originally published outside the United States. And, after the agent assumes in one way or another all risks and cost of importingincluding duties-plus warehousing and extensive promotion, we are bypassed or brought 'round by the book buyer and the sale is consummated not by us, the agent, but by a bookseller in London or somewhere else outside the United States. Estimates in the medical library market alone range from $200,000 to $400,000 annually in this type of business. Now this may seem a very minor amount of dollars in this era of the "megabuck," but it all depends on whose ox is being gored. At the moment, along with other U.S. publishers and booksellers, our corporate ox is being gored by a frisky yearling. But, given the passage of this bill, which we endorse coupled with such factors as the almost algebraic increase in scientific information and the need to retrieve it-we will wind up being wounded by a full-grown bull.

Beside this threat to our own pocketbook, we feel there are very clear principles involved.

First of all, the practice of buying 'round by librarians, institutions, and others contributes to the dollar drain and, even if in a small way, to the depletion of our country's gold reserves. We're sure it is not the intent of H.R. 3142 that these funds be spent directly outside the United States.

Secondly, when books are purchased directly from overseas by libraries, while in theory the books are dutiable, in practice rarely is any duty collected by the post office. But, as purchasers of large lots for resale, we must pay a duty currently set at 4 percent. Increased buying 'round continues to remove this source of revenue from the U.S. Treasury.

Thirdly, when we import unfinished books-as is our majority purchase the finishing of these products supplies good taxpaying jobs. The allowance or even the tacit endorsement of direct sales from overseas to our libraries removes this wage-earning potential. It is common practice to have a "buv American" clause in Federal contracts. Why not in a bill supporting medical libraries?

Fourth, as a small business we are part of a distribution system of small businesses. On this very committee the States represented by you gentlemen account for 60 percent of the active medical schools in the United States. Each one of these is served by a local bookstore or distributor who is bypassed if a library buys directly from overseas. Isn't it desirable that Federal funds allocated locally should be,

wherever possible, expended locally, creating employment and tax revenue locally?

From the economic point of view, the medical book distribution industry in the United States has been a strange sort of an hermaphrodite by necessity rather than design. The manufacturer (i.e., publisher) is forced to sell directly to the purchaser as well as through bookstores. A strong bookstore-distributor complex seems desirable for medical communication as well as for local enterprise. We as a corporation have made positive efforts in this direction. Certainly it is not the intent of H.R. 3142 to condone the weakening of local, small business by tacitly allowing buying 'round.

Fifth, we feel that without a restrictive amendment to H.R. 3142, scientific communication will suffer indirectly. As mentioned above, the much-needed bookstore complex will be discouraged. But also the efforts of the U.S. agent/publisher makes known by direct mail, advertising, Library of Congress cataloging, and other sources the availability of various publications. When publications are bought 'round, the fruit of these efforts by U.S. publishers and bookstores go directly outside the American economy.

Aside from contributing to the economy by the sheer mechanics of "making known," we are also contributing to the scientific societies by advertising imported publications in their periodicals and displaying them at their meetings. Increased buying 'round can significantly decrease or even eliminate these meaningful promotion expenditures. Will commensurate efforts and expenditures come into the United States from booksellers overseas? Not likely.

Sixth, it would seem to be in the general interest of the libraries and the medical community in general to discourage buying 'round. With the increasing threat removed or diminished, publishers could afford to import larger quantities, promote with more assurance and— with the added sales now escaping over the transom-lower prices.

In summary I would like to say that we urge this amendment be added. It would reduce the U.S. dollar drain, increase customs revenue, encourage small business.

We are here to answer any of your questions. Thank you. (Mr. Reville's full statement follows:)

STATEMENT OF THE WILLIAMS & WILKINS CO., BY CHARLES O. REVILLE, JR.

Mr. Chairman and members of the committee, I am Charles O. Reville, Jr., and with me is my colleague, Lyle Lodwick. I am vice president for sales and Mr. Lodwick is director of marketing of the Williams & Wilkins Co., of Baltimore, Md., which is a private corporation devoted primarily to the publication and distribution of medical books and journals.

Medical education and communications, as represented by books and journals, are our stock in trade, and medical library facilities are essential links in this chain of communications. Obviously the passage of H.R. 3142 would have a direct and desirable effect on our financial well-being. A portion of increased funds available for book and journal acquisition (dependent on the value of our publications and our abilities to produce and distribute them) would certainly show up favorably in our sales figures. Even if we did not agree entirely with the compelling philosophic, educational, and humanistic arguments for this bill, the effect of it on our own profit and loss statement would incline us toward at least considering endorsement. All considered, we are more than inclined. The Williams & Wilkins Co., like so many of our good friends in medical education, strongly supports the intent and purposes of H.R. 3142.

We would ask, however, that an amendment be added as follows in section 397 on page 18 following line 24:

"(C) To refrain from purchasing from foreign booksellers those publications originating outside the United States when these publications are available through recoginzed trade channels domiciled within the United States."

This amendment is quite frankly aimed at a practice in the publishing industry known as "buying 'round." Buying 'round occurs when a publisher or agent such as ourselves contracts with a foreign publisher to sell a book or a series of books in the United States, such titles being originally published outside the United States. And, after the agent assumes in one way or another all risks and cost of importing (including duties), plus warehousing and extensive promotion, we are bypassed or bought 'round by the book buyer and the sale is consummated not by us, the agent, but by a bookseller in London or somewhere else outside the United States. Estimates in the medical library market alone range from $200,000 to $400,000 annually in this type of business. Now this may seem a very minor amount of dollars in this era of the "megabuck," but it all depends on whose ox is being gored. At the moment, along with other U.S. publishers and booksellers, our corporate ox is being gored by a frisky yearling. But, given the passage of this bill-which we endorse-coupled with such factors as the almost algebraic increase in scientific information and the need to retrieve it-we will wind up being wounded by a full grown bull.

Besides this threat to our own pocketbook, we feel there are very clear principles involved.

First of all, the practice of buying 'round by librarians, institutions, and others contributes to the dollar drain and, even if in a small way, to the depletion of our country's gold reserves. We're sure it is not the intent of H.R. 3142 that these funds be spent directly outside the United States. Second, when books are purchased directly from overseas by libraries, while in theory the books are dutiable, in practice rarely is any duty collected by the Post Office. But, as purchasers of large lots for resale, we must pay a duty currently set at 4 percent. Increased buying 'round continues to remove this source of revenue from the U.S. Treasury.

Third, when we import unfinished books (as is our majority purchase), the finishing of these products supplies good taxpaying jobs. The allowance or even the tacit endorsement of direct sales from overseas to our libraries removes this wage-earning potential. It is common practice to have a "Buy American" clause in Federal contracts. Why not in a bill supporting medical libraries?

Fourth, as a small business we are part of a distribution system of small businesses. On this very committee the States represented by you gentlemen account for 60 percent of the active medical schools in the United States. Each one of these is served by a local bookstore or distributor who is bypassed if a library buys directly from overseas. Isn't it desirable that Federal funds allocated locally should be, wherever possible, expended locally, creating employment and tax revenue locally?

From the economic point of view, the medical book distribution industry in the United States has been a strange sort of an hermaphrodite by necessity rather than design. The manufacturer (i.e., publisher) is forced to sell directly to the purchaser as well as through bookstores. A strong bookstore-distributor complex seems desirable for medical communication as well as for local enterprise. We as a corporation have made positive efforts in this direction. Certainly it is not the intent of H.R. 3142 to condone the weakening of local, small business by tacitly allowing buying 'round.

Fifth, we feel that, without a restrictive amendment to H.R. 3142, scientific communication will suffer indirectly. As mentioned above, the much-needed bookstore complex will be discouraged. But also the efforts of the U.S. agent/ publisher makes known by direct mail, advertising, Library of Congress cataloging and other sources the availability of various publications. When publications are bought 'round, the fruits of these efforts by U.S. publishers and bookstores go directly outside the American economy. Aside from contributing to the economy by the sheer mechanics of "making known," we are also contributing to the scientific societies by advertising imported publications in their periodicals and displaying them at their meetings. Increased buying 'round can significantly decrease or even eliminate these meaningful promotion expenditures. Will commensurate efforts and expenditures come into the United States from booksellers overseas? Not likely.

Sixth, it would seem to be in the general interest of the libraries and the medical community in general to discourage buying 'round. With the increas

ing threat removed or diminished, publishers could afford to import larger quantities, promote with more assurance and-with the added sales now escaping over the transom-lower prices.

It might be well to speak about prices at this point. Are imported books priced higher when bought in this country than when bought directly from abroad? Of course they are, on an average of about 35 percent higher. If they weren't, why then a good deal of the reasons for buying 'round would be removed. And why are these prices higher? For about the same reasons that we pay more in the United States for Volkswagens, Scotch whisky, and indeed for hospital beds, appendectomies and the services of librarians, as well as the wages of publishers. Speaking of Volkswagens and Scotch whisky, can any one of us order by mail either of these commodies and have them sent to us duty free at the price charged in the country of origin? I doubt it. But a medical or scientific book can be bought in precisely that manner.

Is it the intent of H.R. 3142 to encourage such practices? We think not. Therefore we urge that you consider the adoption of the aforementioned proposed amendment. Such action would—

(a) Reduce the U.S. dollar drain;

(b) Increase custom revenue collected by the Bureau of Customs;

(c) Encourage and promote small business;

(d) Enhance the medical publications distribution system and hence medical communications; and

(e) Ultimately lower the list price of imported books distributed in the United States.

Also, such efforts against buying 'round have the endorsement of overseas publishers. In some cases, the U.S. market accounts for 40- to 50-percent of the entire foreign publishers' output. Most statements indicate that these foreign publishers feel that strong, unencumbered U.S. agents are desirable.

Finally, we're certain the Williams & Wilkins Co. as well as other U.S. publishers, will benefit and for this we'd be grateful.

Mr. Chairman and members of the committee, we have appreciated and enjoyed this opportunity to present our views on this very important legislation. We will gladly attempt to answer any questions the committee may have.

Mr. O'BRIEN. Mr. Chairman, I think one question should be asked: Are you aware of the provision on page 18 which provides that grants under this section shall be made only to medical libraries which agree to make available photoduplicated or facsimile copies of biomedical material which qualified requesters may obtain? You are publishers of biomedical books and journals. Do you regard this service by libraries as good or bad for your business?

Mr. LODWICK. I would like to answer that. We have been previously testifying on a completely different bill, the copyright law, and photoduplicating is a live issue. If the libraries are going into economic competition with the authors, scientific societies or publishers who are publishing scientific books and journals which the libraries use, I think then appropriations for this section should be reviewed very carefully. I think really the responsibility is on the National Library of Medicine, the Association of Medical Colleges, the Medical Library Association, to insure that books and journals will not go out of business because of this economic competition by the photoduplicating and other facsimile machines.

Mr. O'BRIEN. You think it is more a matter of agreement, courtesy, and understanding than to attempt to draft any specific language? Mr. LODWICK. Precisely, sir.

Mr. O'BRIEN. Thank you.

The CHAIRMAN. Thank you very much.

Mr. REVILLE. Thank you, Mr. Chairman.

Mr. MACDONALD (presiding). The editor and secretary of the Council on Education of the American Podiatry Association, Dr. Rubin.