TULSA EXECUTIVES' ASSOCIATION, CHAIRMAN, COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE, House of Representatives, Washington, D.C. Whereas it is recognized that many retail outlets are engaging in unfair and deceptive practices by way of bait merchandising, misrepresentations as to quality, model, etc., particularly in the cases of brand names; and Whereas many small businesses are being destroyed by such practices, due to lack of protective laws; and Whereas small businesses are essential to the economy of our Nation and to our community and must therefore be afforded protection by law in order to survive; and Whereas it is believed that H.R. 3669, which is presently before the House Interstate and Foreign Commerce Committee, will afford a measure of protection: Be it therefore Resolved, That we go on record as favoring prompt enactment of this bill and that a copy of this resolution be forwarded to the House Interstate and Foreign Commerce Committee. ROY ROLLER. RESOLUTION CHAIRMAN, INTERSTATE AND FOREIGN COMMERCE COMMITTEE, Whereas it is recognized that many small businesses are being destroyed by the unfair and deceptive practices of many retailers by way of bait merchandising, misrepresentations as to quality, size, model, year of manufacture, etc.; and Whereas it is believed that adequate protection for said small businesses is not afforded by present laws; and Whereas our Nation has been built by small business concerns and must have adequate protection by law in order to survive; and Whereas it is believed that H.R. 3669, before the House Interstate and Foreign Commerce Committee at this time, will provide a measure of such protection: Be it therefore Resolved, That we go on record as favoring its prompt enactment and that a copy of this resolution be forwarded to the House Interstate and Foreign Commerce Committee. TULSA, OKLA. Mr. W. E. WILLIAMSON, BELLAIRE MERCHANTS ASSOCIATION, By L, G. ECKEE, President. WHITE STAG MFG. CO., Portland, Oreg., April 18, 1963. Clerk of the House Interstate and Foreign Commerce Committee, House Office Building, Washington, D.C. DEAR MR. WILLIAMSON: Will you please include my following statement in the record of the House Commerce Committee hearings on the quality stabilization bill, which I understand are scheduled April 23, 24, and 25 of 1963: As president of a company which has for 79 years produced high-quality textile products. and distributed among quality stores throughout the United States, at published wholesale prices, and at nationally advertised and suggested retail prices, I want to go on record as favoring the proposed Quality Stabilization Act. Our main interest is to check disastrous price cutting and the deliberate misrepresentation of merchandise to the unsuspecting American public, who, of necessity, gets substitute merchandise foisted upon it, which is the "bait and switch" tool of the price cutter. If this can't be prevented in an orderly way, price wars result, and disorderly distribution, instead of orderly distribution, takes over with its downward spiral of prices, and the consequent cheapening of quality (in order for price cutters to exist), and finally, a bitterly disillusioned public. We prefer to maintain the standards of quality that have upheld our name for almost eight decades, and made it almost a household byword, synonymous with quality. If we were forced to fool the public by cheapening our merchandise, and hence depreciating our name, and if our dealers were forced to cut our suggested retail prices to meet the cheapened prices of deliberately misrepresented merchandise, our name would soon be worth nothing to the consuming public, nor to our dealers, and neither would our company be worth anything as a producer any longer. In the past, there have been better business bureaus at the local level, trying to prevent misrepresentation to the public, but these too often are emasculated by local pressures. Only a national Quality Stabilization Act that is above attack, and above reproach, can be effective in preventing piracy by unscrupulous purveyors. We try to price our products legitimately, without inflation, we try to encourage our dealers to sell them in the same manner. Neither we nor the stores selling our products can command more than fair prices, because both competition and supply and demand factors, quality for quality, naturally hold us in line. We must maintain the public confidence in our marketplace, instead of the ruthless disorder of the street bazaar which could take over if we don't protect ourselves from quality misrepresentation in an orderly way. We therefore seek a national act which will make it unlawful to misrepresent or bootleg merchandise proclaimed to be the same or similar, but at lower prices. It's OK for a standard brand and standard quality with standard prices to become the target for vendors who can give the same quality for lower prices, but when prices are cut, and inferior merchandise is claimed to be the same, that must be stopped to prevent havoc in the marketplace. Elimination of standard brands and standard quality would remove the very guideposts on which the American consumer has long depended. HAROLD S. HIRSCH, President. P.S. If you will remember in the old days of prohibition, the public was offered branded Scotch "or similar" at cut prices, but usually discovered that the brands had been faked, and that the word "similar" was a complete myth, that the only thing which had been cut was the quality of the ingredients, which had been cut with water. No one could control this, because it was all undercover during prohibition, and no purchaser dared complain because the purchaser himself was breaking the law and had no legal protection. Today, he is not breaking the law by buying a substitute product at cut prices, and he should be protected legally if he discovers he has been duped. Hon. HARLEY O. STAGGERS, NORTH CAROLINA GENERAL ASSEMBLY, Chairman, Subcommittee on Commerce and Finance, Raleigh, April 19, 1963. DEAR CONGRESSMAN: I am no less convinced this year than I was last that some legal protection must be afforded the owner of a legitimate and respected brand name. Our experience during the past 12 months has convinced all of us at Hanes Hosiery that the quality stabilization bill is more needed than ever. It is our hope that you will give this matter your most serious consideration. Sincerely yours, WINSTON-SALEM, N.C. GORDON HANES, President, Hanes Hosiery Mills. RETAIL JEWELERS OF AMERICA, INC., Mr. W. E. WILLIAMSON, Clerk, House Interstate and Foreign Commerce Committee, House Office Building, Washington, D.C. DEAR Mr. WILLIAMSON: Rather than submit a formal statement in support of the quality stabilization bill, in which the House Interstate and Foreign Commerce Committee has been holding hearings, the Retail Jewelers of America, which have endorsed the quality stabilization bill are submitting the letters of many of their members which indicate the urgent and vital need for Federal legislative assistance now. We would appreciate it if you would incorporate this letter and its attachments in the record of the hearings on the quality stabilization bill. Sincerely, JAMES C. LUCAS, Executive Vice President. CARROLL'S, Coral Gables, Fla., May 13, 1963. Mr. JAMES C. LUCAS, Executive Vice President, Retail Jewelers of America, DEAR Mr. LUCAS: Gordon Smith, president of the Florida Jewelers Association has asked me to sum up the reaction of our membership with reference to price-cutting activities of many stores, etc., on brand name goods. Among the average small retailer the result has worked a terrible hardship. While we are sure no merchant worth his salt wants a "crutch" nonetheless he neither wants the price war to erupt in his neighborhood-one that is so often the result of one chain fighting another. Each are "loaded" with various and sundry advantages he cannot have, such as extra discounts, allowances for quantity purchases advertising bonuses, etc., etc. In our personal case we make it a policy not to feature or even show very many advertised brands, because of this condition. Over 60 percent of our sales are unbranded or little-known names-as a matter of fact in some lines we sell 80 percent of that type of goods with our own name on same. This is a name we know no one else can offer at any price. Yet you may be sure our prices are very competitive and meet with practically no resistance. The name brand manufacturer who wants us to feature his product has to offer us some assurance that his merchandise will not be "footballed" to the extent that we are made to look foolish. The survival of many small merchants-taxpayers-depends upon some such protection, and many manufacturers need it too. Very truly yours, Mr. JAMES C. LUCAS, CARROLL C. SEGHERS. LITTLE RIVER JEWELRY, MIAMI, FLA., May 14, 1963. Executive Vice President, Retail Jewelers of America, DEAR MR. LUCAS: We are in the retail jewelry business, and we are having a very hard time meeting our bills. We believe that one of the reasons is that the customer has lost all confidence in the trademark on merchandise. Many firms have used the reputable trademark to get customers in their stores. By using this trademark as bait (selling it a little under cost to leave the impression that all the merchandise is priced the same way). We, the retailer, need the reputable manufacturer as well as he needs us for an outlet for his merchandise. But, when his trademark is destroyed so is the manufacturer. The question that we hear most today is "What is wrong with this product? I see so many different prices on it." We have had to drop many of our brands that we were handling because we felt that they were cheapening their product to fit the price that mass distributors demanded on the product. We like to sell a product that the customer has confidence in, that it is the best made to give service that the customer expects from the trademark. We can't say that this is the total answer to our staying in business, but it is a big question. We think that quality stabilization will be a step in the right direction. If we don't get help, we may be the next business to disappear off the American scene. GORDON E. SMITH. Mr. JIM LUCAS, W. W. PUTNAM JEWELERS, Executive Vice President, Retail Jewelers of America, DEAR MR. LUCAS: Will you do all you can to promote the adoption of the quality stabilization bill now being considered by Congress? We desperately need this legislation to keep the United States strong under the free enterprise system. We need it to eliminate, as much as possible, the gross misrepresentation and bait advertising of recognized lines of reputable manufacturers. It certainly has been hurtful to our business to have fine lines of merchandise advertised as bait to lure the customer into the competitor's store and then have the salesperson switch the customer to an inferior product. Thank you for doing all you can to eliminate unfair trade practices by seeking the passage of the quality stabilization bill. Sincerely yours, Mr. JIM LUCAS, Washington, D.C. W. W. PUTNAM, Director, Florida Jewelers Association. CHARLES G. RHODES & SON, DEAR MR. LUCAS: We would like to give you our considered opinion of the pending quality stabilization legislation and you are authorized to use this letter in any way you see fit to influence the passage of this legislation. The proposed quality stabilization bill would, we believe, be a giant step forward in bringing a greater degree of honesty to all retailing which most certainly would react to the advantage of the buying public. Retailing has not been able to clean its own house and rid itself of the unethical and downright dishonest persons who misrepresent and take advantage of the prestige of legitimate ethical retailers' hard-won reputations for integrity in merchandising. Your efforts in behalf of this legislation are sincerely appreciated. CHARLES G. RHODES. OHIO RETAIL JEWELERS ASSOCIATION, Mr. JAMES C. LUCAS, Executive Vice President, Retail Jewelers of America, Inc. DEAR JIM: I know, Jim, that you are sensitive to the real need for quality stabilization in order to rescue small business. Predatory pricing is murdering retail jewelers and as the respected Supreme Court Justice Brandeis pointed out in a decision many years ago, local prices resulting from predatory price cutting is only temporary because after the small ethical retailer is driven out of business, prices rebound to higher levels and the consumer has gained nothing. To stimulate you to even greater efforts in support of quality stabilization, I asked our directors just last week to write me some of their experiences resulting from the lack of fairness and ethics in today's marketplace. The enclosed letters speak for themselves and I hope you can use these letters to advantage in presenting some of our problems to our Congressmen who are considering quality stabilization legislation. Kind personal regards. Sincerely yours, CLARENCE MOSES, Executive Director. CLARENCE MOSES, THE COWELL & HUBBARD Co., Care of Ohio Retail Jewelers Association, Cleveland, Ohio. DEAR MR. MOSES: Reports indicate that the quality stabilization legislation is again up for consideration. It is my sincere hope that this can be enacted into law and that unlike many similar attempts, that this can be made to stick. More than 50 years of retailing have proven to me that quality stabilization is the only way to control many vicious and unfair trade practices. Many unethical schemes are automatically eliminated by such a bill. We have been through several cycles of bad business years caused by illegimate advertising and merchandising practices which cannot be controlled without such a law, unfortunately previous bills have had loopholes of escape. If I can be of any assistance in promoting the passage of this please let me know. Yours truly, CLARENCE MOSES, H. B. MCCAGUE, Vice President. HARRIS JEWELER, INC., Executive Director, Ohio Retail Jewelers, Cleveland, Ohio. DEAR MR. MOSES: I have been watching, with great interest, the action being taken in Washington regarding quality stabilization legislation. I have also talked to our Congressmen about this. I feel that quality stabilization is a matter of life and death to the small retailer. We find ourselves in the position of having our bread and butter items used by the larger stores as loss leaders or come-ons to get people into their stores. Take Remington shavers for example. The larger department stores advertise this at a retail price which is below my cost. A personal check of their prices in the jewelery field showed me they were charging from 10 to 25 percent more than we do for items in a nonnationally advertised category. This deliberate footballing of highly advertised standard brands is certainly unethical and an attempt to deceive the public into thinking that all of their prices are lower. The businessmen in Shelby County feel very strongly in favor of this legislation and have had several meetings to discuss our line of action. I feel that you, Mr. Moses, as executive director of our State organization, should take a strong stand on this matter. I will be more than happy to do anything within reason, to help in the passage of this bill. Very truly yours, HAROLD M. HARRIS. NEWSTEDT's, Cincinnati, Ohio, May 16, 1963. Mr. CLARENCE MOSES, Ohio Retail Jewelers Association, Cleveland, Ohio DEAR MR. MOSES: We are pleased to tell you how we feel about quality stabilization legislation. We feel that a manufacturer is entitled to protection against those who would use his product as a “leader" by selling such a product below the going price in a community. When this situation has arisen in our trading area, we have promptly discontinued the brand that is being footballed. We switch our support to another line that is not being discounted. It is obvious that the manufacturer suffers a loss of sales revenue but in addition, he is losing local support and local advertising. Such losses cannot help but have a far-reaching effect on his future. It is most unfortunate that a manufacturer has no redress against the price cutter whose actions have set this chain reaction into motion. We sincerely hope that Congress will see fit to correct this inequity. Very truly yours, E. L. SPITZNAGEL. |