in the great State of Ohio, we find that it is mandatory that this quality stabilization bill be given favorable consideration by your commitee and passed by legislation to become a law as soon as possible. With our own vineyards located on Isle St. George, which is an island in western Lake Erie, and operating two wineries, one at Sandusky and one here at Silverton, just outside of Cincinnati, I, as the managing director of our company, have the task of keeping economically alive. To do this, first, I must see that the grape grower and the apple grower and the blackberry grower make a profit on their operations. Then our own winery operation must be financially sound; then the wholesaler of our product and his salesmen must operate successfully, financially. Then the retailer, scattered throughout all of these 50 States. must have his profit, as otherwise the whole chain of making a fine bottle of wine is broken. These are the strong elements in the American economy that have made it what it is today. Let us keep these channels of economy open on a normal basis. Many thanks for your consideration for the passage of this bill. Sincerely yours, HENRY O. SONNEMAN, Managing Director. WATCH MATERIAL DISTRIBUTORS ASSOCIATION OF AMERICA, W. E. WILLIAMSON, DEAR MR. WILLIAMSON: This letter is in reference to the quality stabilization bill currently before the House Interstate and Foreign Commerce Committee. We of the Watch Material Distributors Association of America strongly urge enactment of this bill in 1963 as a matter of economic survival for our customers, some 25,000 independent retail jewelers, and our member wholesalers. At its annual convention in Chicago, members of WMDAA declared their approval and endorsement of the quality stabilization bill and its principal purpose, namely, to provide a major step in stopping price-cutting and dishonest practices that are destroying our distributive economy. A resolution to this effect was unanimously passed by the Convention assembly. We hope and trust that all efforts to pass the quality stabilization bill are successful. To further emphasize our strong position for passage of this bill. we would greatly appreciate the incorporation of this letter into the record of hearings on the quality stabilization bill. Sincerely yours, STANLEY G. HOUSE, Executive Director. SOUTH CAROLINA RETAIL COUNCIL, Mr. W. E. WILLIAMSON, Clerk, House Interstate and Foreign Commerce Committee, DEAR MR. WILLIAMSON: This organization, being interested in the passage of quality stabilization legislation during 1963, requests the following statement be included in the House Commerce Committee record of hearings on the present bill, S. 774: "The enactment of the quality stabilization bill is vital to retailing's effort to regulate itself without Government mandate. A free enterprise approach to price maintenance is embodied in the bill, due to cooperation and strengthening within the channels of distribution. A minimum of price maintenance is preferable to price chaos." Enactment of resale price maintenance on designated merchandise is urgent for the stability of distribution and as a protection of consumers against volatile pricing. Very sincerely yours, W. A. COLLINS, President. MR. W. E. WILLIAMSON, CHEMICAL RESEARCH & MANUFACTURERS, INC., Clerk of the House Interstate and Foreign Commerce Committee, DEAR MR. WILLIAMSON: In connection with the current hearing on the quality stabilization bill now pending, I would appreciate your including our statement in your record of the hearings, as follows: "The proposed quality stabilization bill is the only legislation so far that has offered any real protection to manufacturers in connection with their products, brand names and trademarks." I hope your committee meets with continuing success in this important legislation. Sincerely yours, Dr. W. LANGER, President. Mr. W. E. WILLIAMSON, Clerk, Interstate and Foreign Commerce Committee, NEW YORK, April 15, 1963. DEAR MR. WILLIAMSON: We respectfully request that this statement be incorporated in the record of the hearings on the quality stabilization bill being held before the Commerce and Finance Subcommittee of the House Interstate and Foreign Commerce Committee on April 23–25, inclusive. The members of this association comprise a substantial segment of the watch importer-assembler industry in this country and include a number of companies whose trademarks and brand names are nationally known and advertised, such as Longines-Wittnauer, Benrus Watch, Omega Watch, Movado Watch, and many others. The watches sold by these companies are fine quality products and they are vitally interested not only in maintaining the quality of their watches but also in having the right to proceed against those who by means of unethical and predatory selling practices threaten the very existence of their brand names and trademarks. The watch industry is one of the most competitive industries in this country. At the retail level, the consumer has the choice of selecting a watch either from among dozens of well known nationally advertised brand names or from literally hundreds of lesser known brands, and at prices ranging from a few dollars to hundreds of dollars per watch. Most of the manufacturers of trademarked watches pursue a policy of suggesting prices, with the result that the consumers have come to have confidence in the quality of trademarked watches and the prices established by their manufacturers. This situation provides a fertile ground for the merchandiser at retail who, in "bait" or "loss leader" advertising, features respected brand name watches at prices 40 percent to 50 percent below their normal selling prices. He knows that this will induce customers to patronize his store where they will expect to find other quality goods at similar low prices. Much of the time, however. only a limited quantity of the featured watches are available and he usually proceeds to sell some other watch on which more often than not he realizes a handsome profit. In the meantime, the maker of the trademarked watch has suffered serious injury. If other retail dealers in the same trade area also cut their prices of the trademarked watch, to meet the competition of the first discounter, it is not long before that particular brand loses the confidence and good will of the consumers. On the other hand, if the other dealers do not cut their prices, they encounter serious resistance in trying to sell the trademarked watch at its suggested price in the face of the much lower price of the discounter. In either case, the manufacturer is damaged because the orderly distribution of his product has been disrupted. Likewise, the business of the small retail dealer has been adversely affected by the price cutting discounter. The quality stabilization bill provides a fair and equitable means of dealing with this grave problem. It gives the manufacturer of trademarked goods the privilege of taking certain action against the price cutter of his product, but only after certain conditions have been met by the manufacturer. More over, there is nothing in this bill that requires the manufacturer to take any action whatsoever if he does not wish to do so. The consumer will still enjoy his freedom of choice respecting the article he wants to buy, the price he wishes to pay for it, and the place where he wants to buy it. There is no restriction on the ethical retail dealer with respect to the nature of the business operations he wishes to engage in. Monopoly is not created because each of the trademarked products is still competing against all of the other trademarked products, as well as against the other products in the same category which are not so protected. It is our view that legislation is sorely needed that will give the manufacturer the right to protect his trademarks and brand names from the widespread abuses being practiced by certain merchandisers at the retail level. The enactment of the quality stabilization bill will provide that right. Accordingly, we respectfully urge that the adoption of the bill be recommended by the committee. Respectfully submitted. AMERICAN WATCH ASSOCIATION, INC., Mr. W. E. WILLIAMSON, NATIONAL OFFICE MACHINE DEALERS ASSOCIATION, Clerk of the House Interstate and Foreign Commerce Committee, DEAR MR. WILLIAMSON: It is our understanding that there will be hearings April 23, 24, 25 held by the House Interstate and Foreign Commerce Committee on the quality stabilization bill, and our association would appreciate having the following statement included in the record of the hearing: "To prevent the complete extermination of the independent retail dealer who sells brand-name products of quality, it is absolutely essential that the quality stabilization bill be passed at this session of Congress. Sanity must be returned to the marketplace to assure that the proud owner of his own independent business will not be driven from the American scene by the long tentacles of discounterism, which at the moment is a highly disturbing and predatory condition existing in our Nation today. The backbone of American retail, the independent dealer, must be maintained and strengthened, hence the necessity for the immediate passage of this bill." Thank you very much, Mr. Williamson, for your giving this statement your very good attention. Cordially yours, HAROLD MANN, Executive Secretary. ELECTRIC APPLIANCE DEALERS ASSOCIATION, Mr. W. E. WILLIAMSON, Clerk of House Interstate and Foreign Commerce Committee, DEAR MR. WILLIAMSON: We urge an early enactment of the quality stabilization bill. Please include the following statement from the Minneapolis Electric Appliance Dealers Association in your record of the hearings in the House Commerce Committee, scheduled for April 23-25, 1963: "We need the Quality Stabilization Act for business survival. Please work hard for its passage and resist all opposition, and help stop bait advertising now killing small business. We appreciate your vigorous support." Sincerely, O. A. GLASOW, Managing Director. WISCONSIN AUTOMOTIVE WHOLESALERS ASSOCIATION, INC., Mr. W. E. WILLIAMSON, Clerk, House Interstate and Foreign Commerce Committee, House Office Building, Washington, D.C. DEAR MR. WILLIAMSON: I am informed that hearings on the quality stabilization bill are scheduled for April 23, 24, and 25. I wish that you would include in the record of the hearings the sentiment of the board of directors of the association I represent as executive secretary. That statement is: "The need is now for all-out support to pass this much needed legislation and to have it enacted at the earliest date possible." Very truly yours, R. C. SALISBURY, Executive Secretary. FLORIDA STATE RETAILERS ASSOCIATION, Winter Park, Fla., April 8, 1963. HOUSE INTERSTATE AND FOREIGN COMMERCE COMMITTEE, Washington, D.C. GENTLEMEN: The innocent American consumer will continue to get less and less for his money until quality stabilization legislation is enacted to put an end to predatory retail practices which force manufacturers to squeeze quality out of their honored products. Merchants throughout Florida, expressing their views through the Florida State Retailers Association, strongly and vigorously support the quality stabilization bill now pending before your committee and urge its early enactment. Respectfully, K. K. KENNEDY, President. DALLAS L. HOSTETLER, Executive Director. NATIONAL OUTERWEAR & SPORTSWEAR ASSOCIATION, INC., Re quality stabilization bill. The quality stabilization bill is the best step in the direction of preventing the public from being misled by the promotional type of store, including the discount operation, which takes well-known branded merchandise and uses it as a loss leader in order to draw the consumers into the store to sell them an inferior kind of merchandise. Brand name merchandise is assurance to the consumer that the product is an honest one, and both the maunfacturer and the consumer should be protected from the practice of pawning off an inferior product upon the consumer once he is led into the store by the offering of a quality brand name as a loss leader. We earnestly hope that this bill will be passed by the current session of Congress. JULES GOLDSTEIN, Secretary. MCMONAGLE & ROGERS, INC., Middletown, N.Y., March 27, 1963. Re quality stabilization bill, Harris-Madden bill No. 3669. Messrs. OREN HARRIS and RAY J. MADDEN, House Office Building, Washington, D.C. GENTLEMEN: It is our understanding that the quality stabilization bill has been introduced in both the House and Senate of the 88th Congress. This important bill has to do with the future existence of the small retailers that go to make up such a large segment of our business enterprises in the United States. We strongly urge you to favor this bill. The giant outlets of distribution that have been gradually growing toward monopoly of general commodities are rapidly crushing out the existence of the small businessman. This has also brought about the destruction of established trademark goods as well as price chaos in the marketplace of reputable commodities. Before any more damage is created, the quality stabilization bill should become law. We urge your full support of this measure during this session of the Congress. Respectfully, W. R. MOORE, President. CHRISTIAN BOOKSELLERS ASSOCIATION, INC., Chicago, Ill., April 16, 1963. DEAR SIRS: The Government of the United States has for many years been aware of the importance of the small businessman in the American economy. Special legislation and many fine publications from the Small Business Administration have been a real help and encouragement to every small businessman. The Christian Booksellers Association is not seeking legislation that will protect the inefficient merchant, but rather we seek legislation that will provide the necessary protection against the encroachment of unfair competition by unscrupulous merchants. It is our considered opinion that the early enactment of the quality stabilization bill is needed. Please give this bill your all-out support, and I am sure that the small merchant in your community will be most grateful. Your task is not an easy one, but it carries real responsibility to all of the American people. Legislation such as the quality stabilization bill enacted with your help will aid in strengthening our economy at a very critical time in the history of the United States. Sincerely yours, W. F. MOORE. TACOMA RETAIL TRADE BUREAU, HOUSE COMMERCE COMMITTEE, Washington, D.C. GENTLEMEN: This organization, comprised of approximately 150 retailers in downtown Tacoma, Wash., went on record last year in support of the quality stabilization bill which was Senate Joint Resolution 159 at the last session. Now that the bill has been reintroduced and is the subject of a hearing before your committee, this statement is written to reiterate our unqualified endorsement of the measure. As you are aware, this bill would reaffirm a principle established in a unanimous decision of the U.S. Supreme Court to the effect that a manufacturer's property rights in this trademark continue in effect when his merchandise is purchased by wholesalers and retailers. The bill is specific in permitting manufacturers to revoke the right of a reseller to use his trademark if the latter misrepresents the merchandise, cuts the established retail price or utilizes the branded articles in so-called bait merchandising. Members of our organization, in common with most established retailers, are adversely affected by price cuts and by unethical practices on the part of discount houses and so-called fly-by-night operators who conduct alleged distressed merchandise sales. This legislation will be a major step in checking practices which are definitely hurting the established methods and institutions of our distributive economy. This is not an attempt to reenact fair-trade laws and this bill will be workable without any expense to the Federal Government since enforcement will rest with manufacturers who will be permitted injunctive relief through the courts. We join the 70-some national trade associations who have gone on record in support of this measure and respectfully urge your committee to report the measure to the floor of the House for favorable action. Respectfully yours, NED MCMAHON, Acting President. |