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COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE

OREN HARRIS, Arkansas, Chairman
JOAN BELL WILLIAMS, Mississippi JOHN B. BENNETT, Michigan
KENNETH A. ROBERTS, Alabama

WILLIAM L. SPRINGER, Illinois
HARLEY O, STAGGERS, West Virginia PAUL F. SCHENCK, Ohio
WALTER ROGERS, Texas

J. ARTHUR YOUNGER, California SAMUEL N. FRIEDEL, Maryland

MILTON W. GLENN, New Jersey TORBERT H. MACDONALD, Massachusetts SAMUEL L. DEVINE, Ohio GEORGE M. RHODES, Pennsylvania

ANCHER NELSEN, Minnesota JOHN JARMAN, Oklahoma

HASTINGS KEITH, Massachusetts LEO W. O'BRIEN, New York

WILLARD S. CURTIN, Pennsylvania JOHN E. MOSS, California

ABNER W. SIBAL, Connecticut JOHN D. DINGELL, Michigan

GLENN CUNNINGHAM, Nebraska
PAUL G. ROGERS, Florida

JAMES T. BROYHILL, North Carolina
ROBERT W. HEMPHILL, South Carolina DONALD G. BROTZMAN, Colorado
DAN ROSTENKOWSKI, Illinois
JAMES C. HEALEY, New York
HORACE R. KORNEGAY, North Carolina
W. R. HULL, JR., Missouri
GILLIS W. LONG, Louisiana
LIONEL VAN DEERLIN, California

W. E. WILLIAMSON, Clerk
KENNETH J. PAINTER, A8sistant Clerk

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ANDREW STEVENSON
KURT BORCHARDT

Professional Staff

GEORGE W. PERRY
JAMES M. MENGER, Jr.

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SUBCOMMITTEE ON COMMERCE AND FINANCE

HARLEY 0. STAGGERS, West Virginia, Chairman JOHN D. DINGELL, Michigan

MILTON W. GLENN, New Jersey JAMES C. HEALEY, New York

HASTINGS KEITH, Massachusetts GILLIS W. LONG, Louisiana

WILLARD S. CURTIN, Pennsylvania LIONEL VAN DEERLIN, Callfornia

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CONTENTS

127

38

171

241

34

387
180

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

Texas..

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

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

mission

Burch, Ray, sales promotion manager, Arnold, Schwinn & Co.--
Cederberg, Hon. Elford A., a Representative in Congress from the

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

York...

Courtland, Roger, executive director, National Association of Mass

Merchandisers.
Cruger, Frank M., chairman, National Small Business Association -
Dent, Hon. John, a Representative in Congress from the State of

Pennsylvania --
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

Association.

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

Indiana.

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

Pharmacy

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

California,

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

Washington

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

Minnesota..

374
102
171

335
246

235
204

301

180

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343

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Statement of-Continued

Hutton, William R., deputy director, National Council of Senior Page
Citizens, Inc.

359 Jarman, Hon. John, a Representative in Congress from the State of Oklahoma.

31 Jehle, Philip F., Washington representative and associate general counsel, National Association of Retail Druggists..

269 Karoll, Sam, director, National Association of Retail Clothiers and Furnishers...

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

121 Lee, Stewart M., chairman, Department of Economics and Business Administration, Geneva College, Beaver Falls, Pa..

230 Leichter, Franz, on behalf of National Bellas Hess, Inc.

2 19 Loevinger, Hon. Lee, Assistant Attorney General, 'Antitrust Division, Department of Justice

74,91 Madden, Hon. Ray J., a Representative in Congress from the State of Indiana.

10 Mashaw, William G., National Retail Hardware Association.-- 237 May, Hon. Catherine, a Representative in Congress from the State of Washington.

41 McDonald, Angus, assistant director of legislative services, National

Farmers Union..
Mermey, Maurice, director, Bureau for the Advancement of Inde-
pendent Retailing -

14
Murphy, Thomas H., president, the Home Shop, Richmond, Va. 198
Nelsen, Hon. Ancher, a Representative in Congress from the State of
Minnesota

32 Nevole, George J., on behalf of National Bellas Hess, Inc.

249 Newman, Sarah H., general secretary, National Corsumers League

346 Nygaard, Hon. Hjalmar C., a Representative in Congress from the State of North Dakota...

35 Oxenfeldt, Alfred R., professor of marketing, Columbia University Graduate School of Business ...

283
Pelly, Hon. Thomas M., a Representative in Congress from the State
of Washington

36
Proxmire, Hon. William, a U.S. Senator from the State of Pennsylvania. 17
Rooke, Ralph E., chairman, committee on national legislation, National
Association of Retail Druggists --

269 Rothschild, Louis, executive director, National Association of Clothiers Furnishers.

108 Roudebush, Hon. Richard L., a Representative in Congress from the State of Indiana--

38 Schwegman, John, Jr.

204 Stubblefield, Hon Frank A., a Representative in Congress from the State of Kentucky.

37 Tollefson, Hon. Thor C., a Representative in Congress from the State of Washington.

334 Triggs, Matt, assistant legislative director, American Farm Bureau Federation..

351 Weston, Glen E., on behalf of American Bar Association -

305 Wheelock, John, Executive Director, Federal Trade Commission.

171 White, John H., National Oil Jobbers Council..

133
Additional information submitted for the record by-
AFL-CIO:

Policy resolution on consumer protection adopted December
1961.--

337
Policy resolution on fair trade adopted September 1959--
Statement on Federal resale price maintenance legislation,
February 24, 1959-

336 American Pharmaceutical Association, statement of_

417 American Watch Association, Inc., 'letter from William H. Fox, executive secretary

149 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..

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337

443

446 424

Additional information submitted for the record by--Continued

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, Ilon. 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 H. 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
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.

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

426 Lehn & Fink Products Corp., statement of Walter N. Plant, president.

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

438

81

323

the Public Health Service which was initiated by the former Surgeon General,
Dr. Leroy E. Burney. Among the recommendations contained in the final report
is the establishment of a Bureau of Environmental Health and a Bureau of
Community Services which would replace the Bureau of State Services.

While the association has not taken a position on the final report and there
fore does not necessarily agree with all the recommendations contained in it,
it does agree that the Surgeon General should have authority to adapt the or-
ganizational structure of the Public Health Service to meet significant program
variations and increased responsibilities withou necessity of seeking new
legislation. The great advances in technology, which have resulted in new and
emerging public health problems, and the remarkable progress in medical science,
which promises solutions to problems that have long plagued mankind, can be
expected to continue into the foreseeable future. If the Public Health Service
is to meet its responsibilities to the people of this Nation, it must be able to
adapt to these changing conditions.

In endorsing the amendment contained in section 2 of H.R. 2410, the associa-
tion assumes that the Surgeons General of the future will consult with interested
medical groups, as well as with outside management experts, as did Dr. Burney's
study group.

With respect to the provision we have designated as the second part of H.R.
2410, subsection 3(b), as presently written, is a source of concern to the Ameri-
can Medical Association, It appears to take away the Surgeon General's exist-
ing authority to appoint the Director of the National Institutes of Health, the
Chief of the Bureau of Medical Services, and the chiefs of new bureaus estab-
lished under clause (5) of the proposed section 202(a).

The association believes that the language of subsection (b) will weaken the
authority proposed to be granted to the Surgeon General in section 2. Further,
the elimination of the requirement that the individuals selected for these key
positions be made from among officers of the regular corps of the Public Health
Service is not, in our opinion, in the best interest of the Service. We beliere
it could have a disastrous effect on the recruiting activities of the Service and
in the maintenance of a stable regular corps. Such an effect could, in turn,
result in a loss of efficiency on the part of the Service through the appointment
of individuals who lack a complete background of the agency's mission. The
American Medical Association believes that the selection of individuals for top-
level positions in the Public Health Service should be made from career-oriental
officers of the regular corps. The positions should be filled by individuals who
have had responsibility for a substantial number of important programs orer a
period of years in both the United States and in foreign assignments. Their
acquired knowledge, experience, and familiarity with the multiplicity of opera-
tions of the Service will do much to assure satisfactory performance and the
continuity of related interests both within and without the Government.

For these reasons, the American Medical Association respectfully suggests that
the committee give consideration to an amendment which would continue the
Surgeon General's sting authority to assign commissioned officers from the
regular corps to be, respectively, the Director of the National Institutes of
Health, the Chief of the Bureau of Medical Services, the chief of any bureau
established pursuant to clause (5) of section 202(a), the Chief Medical Officer
of the U.S. Coast Guard, the Chief Dental Officer of the Service, and the Chief
Sanitary Engineering Officer of the Service.

The amendment merely seeks to continue the Surgeon General's existing au-
thority and to relate it to the amendment contained in section 2 of the bill.

The American Medical Association again thanks you for this opportunity to
present the views of the physicians of America on this important legislation.
We shall be pleased to be of further service should the committee require from
the association any additional information or comment.
Sincerely,

F. J. L. BLASIXGAME, M.D.
(Whereupon, at 12:10 p.m., the hearing recessed, subject to the call
of the Chair.)

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