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Hearings held on-

April 23, 1963.

April 24, 1963

April 25, 1963

April 26, 1963

May 14, 1963.

May 15, 1963

Text of H.R. 3669.

Report of-

Agriculture Department.

Bureau of the Budget..

Commerce Department.

Small Business Administration..

Statement of-

Alger, Hon. Bruce, a Representative in Congress from the State of


Battin, Hon. James F., a Representative in Congress from the State

of Montana

Buffington, J. V., Assistant to the Chairman, Federal Trade Com-


Burch, Ray, sales promotion manager, Arnold, Schwinn & Co.

Cederberg, Hon. Élford A., a Representative in Congress from the

State of Michigan..

Celler, Emanuel, a Representative in Congress from the State of New


Courtland, Roger, executive director, National Association of Mass


Cruger, Frank M., chairman, National Small Business Association..

Dent, Hon. John, a Representative in Congress from the State of


Dinardi, Ann, pharmacist, Morgantown, W. Va-

Dixon, Hon. Paul Rand, Chairman, Federal Trade Commission.

Draper, Ann, economist, American Federation of Labor and Con-

gress of Industrial Organizations..

Eckle, L. Griffin, Tulsa, Okla --

Fair, Clinton, legislative representative, American Federation of Labor

and Congress of Industrial Organizations.--

Fort, Charles F., Food Town Ethical Pharmacies, Inc.--.

Foulkrod, S. Walter, Jr., executive director and counsel, Council for

Ethical Trade Practices.

Friedel, Hon. Samuel N., a Representative in Congress from the

State of Maryland..

Glenn, Hon. Milton W., a Representative in Congress from the State

of New Jersey--

Gosnell, John A., general counsel, National Small Business


Harvey, Hon. Ralph, a Representative in Congress from the State of

Hayman, J. Lester, professor, West Virginia University School of


Holifield, Hon. Chet, a Representative in Congress from the State of


Horan, Hon. Walt, a Representative in Congress from the State of

Washington --

Humphrey, Hon. Hubert H., a U.S. Senator from the State of


Page 359





230 249

74, 91

10 237



144 198

32 249 346


Statement of-Continued

Hutton, William R., deputy director, National Council of Senior

Citizens, Inc.
Jarman, Hon. John, a Representative in Congress from the State of

Jehle, Philip F., Washington representative and associate general

counsel, National Association of Retail Druggists.--
Karoll, Sam, director, National Association of Retail Clothiers and

Kuntz, Walter N., Jr., president, National Wholesale Druggists'

Lee, Stewart M., chairman, Department of Economics and Business

Administration, Geneva College, Beaver Falls, Pa...
Leichter, Franz, on behalf of National Bellas Hess, Inc.
Loevinger, Hon. Lee, Assistant Attorney General, Antitrust Division,

Department of Justice.
Madden, Hon. Ray J., a Representative in Congress from the State

of Indiana
Mashaw, William G., National Retail Hardware Association.-
May, Hon. Catherine, a Representative in Congress from the State

of Washington.--
McDonald, Angus, assistant director of legislative services, National

Farmers Union.---
Mermey, Maurice, director, Bureau for the Advancement of Irde-

pendent Retailing--
Murphy, Thomas H., president, the Home Shop, Richmond, Va...
Nelsen, Hon. Ancher, à Representative in Congress from the State of

Nevole, George J., on behalf of National Bellas Hess, Inc..
Newman, Sarah H., general secretary, National Corsumers League..
Nygaard, Hon. Hjalmar C., a Representative in Congress from the

State of North Dakota..
Oxenfeldt, Alfred R., professor of marketing, Columbia University

Graduate School of Business...
Pelly, Hon. Thomas M., a Representative in Congress from the State

of Washington
Proxmire, Hon. William, a U.S. Senator from the State of Pennsylvania.
Rooke, Ralph E., chairman, committee on national legislation, National

Association of Retail Druggists ---
Rothschild, Louis, executive director, National Association of Clothiers

Roudebush, Hon. Richard L., a Representative in Congress from the

State of Indiana.
Schwegman, John, Jr.
Stubblefield, Hon Frank A., a Representative in Congress from the

State of Kentucky-
Tollefson, Hon. Thor C., a Representative in Congress from the State

of Washington.--
Triggs, Matt, assistant legislative director, American Farm Bureau

Weston, Glen E., on behalf of American Bar Association.
Wheelock, John, Executive Director, Federal Trade Commission.

White, John H., National Oil Jobbers Council.
Additional information submitted for the record by-

Policy resolution on consumer protection adopted December

Policy resolution on fair trade adopted September 1959--
Statement on Federal resale price maintenance legislation,

February 24, 1959.-
American Pharmaceutical Association, statement of
American Watch Association, Inc., letter from William H. Fox,






38 204



351 305 171 133

337 337 Additional information submitted for the record by-Continued

executive secretary --Anson, Inc., statement of Olof V. Anderson, president.. Automotive Wholesalers Association of New England, Inc., letter

from R. J. Harrison, executive secretary, transmitting statement.. Bedell, Clyde, statement of..

336 417

119 443

4 46 424

Page Bellaire Merchants Association, resolution of

453 Botany Industries, Inc., statement of Michael Daroff, president

422 Brown-Forman Distillers Corp., statement of...

412 Bureau for the Advancement of Independent Retailing: Consumer price studies.

152 Letter from Maurice Mermey, director.

152 Celler, Hon. Emanuel: Comparison of fair-trade and non-fair-trade prices

59 Price quality comparisons.

60 Statements from several State court opinions declaring State resale maintenance laws unconstitutional..

57 Champion Spark Plug Co., statement of II. B. Speyer, vice president and treasurer

414 Chemical Research & Manufacturers, Inc., letter from Dr. W. Langer, president

449 Chesebrough-Ponds, Inc., letter from R. F. Mitchell, Jr., counsel 443 Christian Booksellers Association, Inc., letter from W. F. Moore--- 452 Cooperative League of the USA, statement of Dwight D. Townsend, director, Washington office..

412 Corning Glass Works, statement of R. Lee Waterman, vice presidentmanager, consumer products division.

420 Cortney, Philip, statement of

429 Electric Appliance Dealers Association, letter from 0. A. Glasgow, managing director..

450 Florida State Retailers Association, letter from K. K. Kennedy, president, and Dallas L. Hostetler, executive director

451 Fri, James Lloyd, statements of...

429, 431 G. & C. Merriam Co., letter from Gordon J. Gallan, president.

447 General Federation of Women's Clubs, statement of Mrs. Dexter Otis Arnold, president.-

420 Green Shoe Manufacturing Co., letter from S. L. Slosberg, president - 442 Hanes Hosiery Mills, letter from Gordon Hanes, president

454 Hart, Schaffner & Marx, statement of John D. Gray, president.

426 Helena Rubinstein, Inc., statement of Oscar Kolin, vice president. 415 Holifield, Hon. Chet, quality stabilization legislation is in accord with these propositions.

263 Humphrey, Hon. Hubert H., appraisal of quality stabilization bill by Legislative Reference Service, Library of Congress..

64 Independent Garage Owners of America, Inc., statement of James A. Hueser, manager--

414 Independent Garage Owners of Ohio, Inc., statement of

421 Independent Shoemen, statement of Mike Carosella, chairman.

425 Indiana State Electronic Service Association, Inc., letter from Frank J. Teskey, secretary, transmitting statement.

441 Justice Department: Business failure rate per 10,000 listed concerns, 1962

81 Distribution of business failures per 10,000 listed concerns within

fair trade, nonsigner invalid, and free trade States, 1946
through 1962, table.

82 Kayser-Roth Hosiery Co., Inc., letter from Arnold M. Raphael, vice president and general manager..

445 Laundry & Cleaners Allied Trades Association, statement of Edward Ewell, president --

426 Lehn & Fink Products Corp., statement of Walter N. Plant, president. 439 Lincoln Metal Products Corp., letter from Harry Schwartz, vice president, sales.

438 Massachusetts Consumer Association, resolution of

437 Maxam, Inc., statement of Paul D. Dichter, president.

322 McEwen, Robert J., telegram from..

328 Mc Monagle & Rogers, Inc., letter from W. R. Moore, president. 451 Meier's Wine Cellars, Inc., letter from Henry 0. Sonneman, managing director..

447 Miller, Hon. Jack, “What Is the Future of Fair Trade Legislation?" from Congressional Record, February 19, 1963.

323 Mirro Aluminum Co., letter from G. C. Kubitz, senior vice president, marketing


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Additional information submitted for the record by-Continued

National Association of House to House Installment Cos., Inc., Page
memorandum from Edward L. Sard, executive director.--.

National Association of Tobacco Distributors, statement of John D.
Kelly, executive coordinator..


National Council of Senior Citizens, Inc., newspaper articles.. 365-373

National Industrial Distributors' Association, statement of Robert C.

Fernly, executive secretary -


National Office Machine Dealers Association, letter from Harold

Mann, executive secretary-


National Outerwear and Sportswear Association, Inc., letter from

Jules Goldstein, secretary--


National Retail Furniture Association, letter from Derek Brooks, vice
president and director of Government relations...


National Retired Teachers Association and American Association of

Retired Persons, statement of Dr. Ethel Percy Andrus, president... 331

National Shoe Retailers Association, statement of Edward J. McDon-
ald, executive vice president...


National Small Business Association:

Letter from John A. Gosnell, general counsel..


Statement of Frank M. Cruger, chairman of the board.


Supplemental statement of Dr. James F. Bender and Dr. David

H. Arbeit.


National Sporting Goods Association, statement of.


Paint & Wallpaper Association of America, Inc., statement of Robert

E. Petit, executive vice president.


Palm Beach Co., letter from Elmer L. Ward, chairman of the board
and president -

Pennsylvania Association of Independent Business, letter from E.

Lynn Carter, executive secretary -

Phillips-Van Heusen Corp., statement of Lawrence S. Phillips, execu-

tive vice president-


Prince Gardner, letter from H. W. Whiteaker, president.


Proprietary Association, statement of Dr. Howard A. Prentice, execu-

tive vice president..


Quality Brands Associates of America, Inc., statement of John W.
Anderson, president.--

Retail Jewelers of America, Inc., letter from James C. Lucas, esecu-
tive vice president, transmitting letters from members.--


Rubbermaid, Inc., letter from Donald E. Noble, president.

Rust-Oleum, letter from Robert A. Fergusson, president-

4 16

Schreiner, J. D., letter from..


Sears, Richard N., statement of


Seifert, Randolph J., statement of


Simmons Co., statement of John W. Hubbell, vice president..


South Carolina Retail Council, letter from W. A. Collins, president.. 448

Stephen F. Whitman & Son, Inc., letter from J. Harold Roth, vice

president, sales -


Tacoma (Wash.) Retail Trade Bureau, letter from Ned McMahon,

acting president.


Trade-Mark Service Corp., letters from Paul Struven, president -- 440, 445

Tulsa (Okla.) Executives Association, letter from Roy Roller -


Watch Material Distributors Association of America, letter from
Stanlev G. House, executive director.--


White Stag Manufacturing Co., letter from Harold S. Hirsch, pres-



Wisconsin Automotive Wholesalers Association, Inc., letter from
R. C. Salisbury, executive secretary-

Zenith Sales Corp., statement of Leonard C. Truesdell, president.. 411
Zippo Manufacturing Co., statement of G. G. Blaisdell, president.. 411




Washington, D.O. The subcommittee met, pursuant to call, at 10 a.m., in room 1334, Longworth House Office Building, Hon. Harley O. Staggers (chairman of the subcomittee) presiding.

Mr. STAGGERS. The committee will come to order.

The Subcommittee on Commerce and Finance of the House Committee on Interstate and Foreign Commerce will begin hearings this morning on several bills to promote price and quality stabilization. These bills are H.R. 3669, introduced by the distinguished chairman of our committee, Mr. Harris, of Arkansas, and 22 identical bills.

The bills are:
H.R. 3670, by Mr. Madden, of Indiana.
H.R. 3690, by Mr. Horan, of Washington.
H.R. 3701, by Mr. Nelsen, of Minnesota, a member of this committee.
H.R. 3743, by Mr. Tollefson, of Washington.
H.R. 3745, by Mrs. May, of Washington.
H.R. 3790, by Mr. Pelly, of Washington.
H.R. 3797, by Mr. Toll, of Pennsylvania.
H.R. 3849, by Mr. Cederberg, of Michigan.
H.R. 3863, by Mr. Holifield, of California.
H.R. 3929, by Mr. Dent, of Pennsylvania.
H.R. 3943, by Mr. Friedel, of Maryland, a member of this committee.
H.R.3983, by Mr. Roudebush, of Indiana.
H.R. 3998, by Mr. Stinson, of Washington.
H.R. 4184, by Mr. O'Konski, of Wisconsin.
H.R. 4221, by Mr. Bray, of Indiana.

H.R. 4312, by Mr. Glenn, of New Jersey, a member of this committee.

H.R. 4477, by Mr. Stubblefield, of Kentucky.
H.R. 4541, by Mr. Nygaard, of North Dakota.
H.R. 4626, by Mr. Clark, of Pennsylvania.

H.R. 4703, by Mr. Jarman, of Oklahoma, a member of this committee.

H.R. 4930, by Mr. Battin, of Montana.
H.R. 5032, by Mr. Harvey of Indiana.

The purpose of this legislation is to promote quality and price stabilization, to define and restrain certain unfair methods of distribution, and to confirm, define, and equalize the rights of producers and resellers in the distribution of goods identified by distinguishing

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