1961 Chevrolet (18 models; 266,000 possible prices, 98,000,000 possible combinations of options) Caleb to abrod V-8 engine. Axle, rear, positraction. Battery, heavy duty.. Crankcase ventilating system. Cushion, airfoam.. Generator. Total Chevrolet combinations-98,000,000; range of possible prices, $2,285 to $4,993. 1961 Ford (16 models; 233,100 possible prices, 55,000,000 possible combinations of options) V-8 engine--- Backup lights.. Differential, equa-lock. Heater and defroster.. Power seat or manual seat, 4-way. Moulding, rocker panel.. "Padded dash. Paint, Tutone. Power steering. Power tailgate window. Power windows. Automatic transmission. Total Ford combinations, 55,000,000; range of possible prices, $2,371 to $4,702, Senator DOUGLAS. The first witness this morning is Mr. Andrew J. Biemiller, representing the American Federation of Labor and Congress of Industrial Organizations. Mr. Biemiller kindly stood aside yesterday in order that Mr. Morse and later in the afternoon Mr. Haring and Mr. Frey could testify. We are glad to have you here this morning. STATEMENT OF ANDREW J. BIEMILLER, DIRECTOR, DEPARTMENT OF LEGISLATION, ACCOMPANIED BY ANNE DRAPER, ECONOMIST, RESEARCH DEPARTMENT, AMERICAN FEDERATION OF LABOR AND CONGRESS OF INDUSTRIAL ORGANIZATIONS Mr. BIEMILLER. Mr. Chairman, my name is Andrew J. Biemiller, I am director of the department of legislation of the AFL-CIO, and I am appearing to present the views of that organization in support of S. 1740. I am accompanied by Miss Anne Draper, who is an economist with our research department. This subcommittee, under the leadership of its distinguished chairman, has performed a signal public service in bringing the truth about lending to the attention of the American public. The facts developed during your hearings last year clearly point to the need for the legislation proposed in this bill. We fully support the requirement of the bill that every consumer credit contract shall disclose the total finance charges being made and shall state such charges in terms of a simple annual rate on the outstanding unpaid credit balance. Our organization naturally has a very keen interest in the terms upon which credit is extended to consumers. Union members are among the most frequent users of installment credit. Special tabulations from the 1950 Survey of Consumer Finances, conducted by the University of Michigan, show that 65 percent of union families have installment debt. This contrasts with 48 percent among families in the population generally. While the bill applies to all consumer credit, it is in installment credit that it is most badly needed. Last year's hearings supplied convincing evidence of widespread public confusion about the true cost of credit, and most especially installment credit. This ignorance extends through all income and education levels of the population-from the poorest victims of unscrupulous debt-peddlers in New York City's lower East Side to welleducated suburbanites with college degrees. Even the Chairman of the Federal Reserve Board, William McChesney Martin, confessed his helplessness in understanding the intricacies of consumer credit costs. Senator DOUGLAS. With the aid of the quick credit cost computer he was less confused this year. Mr. BIEMILLER. I am delighted to hear that. We have been using that card ourselves. Senator BENNETT. May I interject that with the aid of the quick credit cost computer it was perfectly clear to him that if he depended on the computer his margin of error would have been between 20 and 25 percent. |