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FAIR TRADE

4 JUL A

HEARINGS

BEFORE A

SUBCOMMITTEE OF THE

COMMITTEE ON
INTERSTATE AND FOREIGN COMMERCE

HOUSE OF REPRESENTATIVES

EIGHTY-FIFTH CONGRESS

SECOND SESSION

ON

H. R. 10527, H. R. 10770, H. R. 10847, H. R. 11048,

H. R. 11216, and H. R. 11264
BILLS TO AMEND THE FEDERAL TRADE COMMISSION ACT,
AS AMENDED, SO AS TO EQUALIZE RIGHTS IN THE

DISTRIBUTION OF IDENTIFIED MERCHANDISE

APRIL 29, 30, MAY 1, 6, AND 7, 1958

Printed for the use of the Committee on Interstate and Foreign Commerce

58-61428

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COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE

OREN HARRIS, Arkansas, Chairman JOHN BELL WILLIAMS, Mississippi CHARLES A. WOLVERTON, New Jersey PETER F. MACK, JR., Illinois

JOSEPH P. O'HARA, Minnesota KENNETH A. ROBERTS, Alabama

ROBERT HALE, Maine MORGAN M. MOULDER, Missouri

JOHN W. HESELTON, Massachusetts HARLEY O. STAGGERS, West Virginia JOHN B. BENNETT, Michigan ISIDORE DOLLINGER, New York

JOHN V. BEAMER, Indiana WALTER ROGERS, Texas

WILLIAM L. SPRINGER, Minois MARTIN DIES, Texas

ALVIN R. BUSH, Pennsylvania SAMUEL N. FRIEDEL, Maryland

PAUL F. SCHENCK, Ohio JOHN J. FLYNT, JR., Georgia

JOSEPH L. CARRIGG, Pennsylvania TORBERT MACDONALD, Massachusetts STEVEN B. DEROUNIAN, New York GEORGE M. RHODES, Pennsylvania J. ARTHUR YOUNGER, California JOHN JARMAN, Oklahoma

WILLIAM H. AVERY, Kansas LEO W. O'BRIEN, New York

BRUCE AI GER, Texas
JOHN E. MOSS, California

WILL E. NEAL, West Virginia
JOHN D. DINGELL, Michigan
J. CARLTON LOSER, Tennessee

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

Professional Staff
ANDREW STEVENSON

SAM G. SPAL
KURT BORCHARDT

MARTIN W. CUNNINGHAM

SUBCOMMITTEE ON COMMERCE AND FINANCE

PETER F. MACK, JR., Illinois, Chairman MORGAN M. MOULDER, Missouri

JOHN B. BENNETT, Michigan ISIDORE DOLLINGER, New York

JOHN V. BEAMER, Indiana JOHN JARMAN, Oklahoma

WILLIAM H. AVERY, Kansas
JOHN E. MOSS, California

BRUCE ALGER, Texas
II

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R.V.8.300)

CONTENTS

19

10

10

9
7

189

310
530
109

174

496

Text of -

H. R. 10527

H. R. 11216.

Report of -

Agriculture Department -

Bureau of the Budget--

Commerce Department.

Justice Department.

Statement of

Abramowitz, Emil, president, Bronx County Pharmaceutical Associa-

tion, Inc

Akerman, Alex, Jr., Washington, D. C.

Ashley, Hon. Thomas L., a Representative in Congress from the State

of Ohio.

Bissell, M. R., II, president, Bissell Carpet Sweeper Co.

Bockovac, Joseph L., Kensington, Md...

Burger, George J., vice president, National Federation of Independent

Business.

Calamia, Eric, managing director, Retail Tobacco Dealers of America,

Inc..

Caldwell, James R., president, Rubbermaid, Inc.
Carretta, Albert A., on behalf of National Audio-Visual Association..
Despres, Jean, executive vice president, Coty, Inc.

Dressler, John, executive secretary, New Jersey Gasoline Retailers

Association and Allied Trades, Inc.-

Fisher, Paul C., president and owner, Fisher Pen Co..

Fleischaker, Joseph, president, National Appliance and Radio-TV

Dealers Association

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

Foulkrod, S. Walter, Jr., counsel, Pennsylvania Pharmaceutical

Association

Franzoni, F. Royce, chairman, committee on legislation, American

Pharmaceutical Association.

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

State of Maryland..

Graeff Carl E., president, National Retail Hardware Association-

Greenberg, Emil, general counsel, Pharmaceutical Society of the

State of New York.

Gwynne, Hon. John W., Chairman, Federal Trade Commission.
Herman, Edward S., associate professor of economics, Pennsylvania

State University--
Hubbell, John W., vice president, Simmons Co.
Incardona, Joseph, president, Malt Beverage Distributors of Penn-

sylvania

Kimbriel, Harry A., executive vice president, National Wholesale

Druggists' Association..

Klamon, Joseph M., on behalf of Consumers' Federation of St. Louis

and St. Louis County,

Lee, Stewart M., chairman, department of economics and business

administration, Geneva College-

Macdonald, Hon. Torbert H., a Representative in Congress from

the State of Massachusetts.

MacLachlen, James A., professor of law, Harvard University.

Mashaw, William G., executive vice president, National Retail Hard-

ware Association

11

237

57

602
506

111

Statement of-Continued

Page
McDevitt, Peggy, American Booksellers Association, Inc.

232
McEwen, Robert J., S. J., associate professor of economics, Boston
College

136
Mermey, Maurice, director, Bureau of Education on Fair Trade-

23
Nellis, Joseph L., National Association of Consumer Organizations,
Inc...

291

Patterson, Hon. James T., a Representative in Congress from the

State of Connecticut..

21

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

of Washington.--

12

Plesser, David, Roslyn Heights, N. Y

238

Prentice, Dr. Howard A., executive vice president, Proprietary Asso-

ciation.

198

Shutt, G. Marvin, secretary, National Sporting Goods Association.. 50

Smith, George F., president, Johnson and Johnson..

116

Teel, Forrest, executive vice president, Eli Lilly & Co.

122

Van Mell, Herman T., vice president and general counsel, Sunbeam

Corp.-

275

Waller, Herman S., legal counsel, National Association of Retail
Druggists..

355, 540, 571

Weigel, Stanley A., on behalf of California Pharmaceutical Associa-

tion..

69

Wilkinson, R. J., executive manager, Master Photo Dealers & Finishers

Association..

86

Wimmer, Ed, president, Forward America Publishing Guild, Inc., and

vice president, public relations director, National Federation of

Independent Business, Inc.--

303

Additional information submitted for the record by-

Adams, Walter, letter from, transmitting articles from Yale Law
Journal...

328

American Farm Bureau Federation, statement of Matt Triggs,

assistant legislative director.--

320

Arnold, Schwinn and Co., letter from W. F. Stoeffhaas, vice president
and general manager..

673

Association of American Railroads, statement of..

321

Bureau of Education on Fair Trade:

Bankruptcies in the United States, 1953 to 1957, inclusive,

table --

39

Letter from Maurice Mermey, director..

47
Total retail bankruptcies in United States, 1953 and 1957, table.. 40

California Pharmaceutical Association:

Excerpts from article by Louis D. Brandeis, from Harper's Weekly,

November 15, 1931

71

Letter from Cecil A. Stewart, executive secretary-

323

Proposed bill.

70

Carlston, Kenneth S., letter from.

669

Celler, Hon. Emanuel, letter from

642

Central Massachusetts Retail Association, Inc., letter from Sumner

Silver, counsel.---

674

Consumers' Federation of St. Louis and St. Louis County:

Are We Heading for a Federal Price-Fixing Law? from Consumer
Reports, May 1958.

211
Statement of
Johnson, Mrs. Loretta, vice president...

218
Kerber, Mrs. Rose, member, executive board..

220

Consumers Information Bureau, letters from Thomas F. Hall, Jr.,

executive director :

676-678

Cooperative League of the U.S. A., letter from Wallace J. Campbell.. 652
Dale System, Inc., statement of Addison H. Verrill, president-

663
Davis, 0. L., letter from.---

672
District of Columbia Pharmaceutical Association, Inc., letter from
Harold C. Kinner, executive secretary--

325
Edenton, Bruce C., Jr., letter from.

674

Page
662

672
675
655

618
643
669
273
644
647

167

Additional information submitted by-Continued

Fulda, Carl H., statement of -
General Electric Co., statement of housewares and radio receiver

division --

General Federation of Women's Clubs, letter from Mrs. R. I. C. Prout,

president.

Georgia Pharmaceutical Association, Inc., letter from Charles Hall

Evans, chairman, board of directors, transmitting resolution.----
Greenawalt's, letter from Earl C. Greenawalt, Sr., president.
Haring, Albert, letter from -
Herman, Edward S.: Free and Open Competition, from Stanford Law

Review, March 1957.-
Kansas Farm Bureau, letter from Clarence Rupp, director of research..
Machlup, Fritz, statement of ...
MacLachlen, James A., letter from..
Macy, R. H., & Co., statement of
Masters, Inc., statement of Stephen Masters, president.

McEwen, Robert J.:

Growing Concern, from American Druggist, December 30, 1957--

Retailers Battle To Keep Sales Up, by William M. Freeman, from

New York Times, April 13, 1955-

Small Grocers Keep a Foothold, by James J. Nagle, from New

York Times, March 16, 1958.

National Association of Retail Clothiers & Furnishers, statement of

Louis Rothschild, executive director

National Association of Retail Druggists, letter from Herman S.

Waller, transmitting statement_

National Association of Tobacco Distributors, Inc., statement of

Chester Inwald, general counsel.

National Congress of Petroleum Retailers, Inc., statement of William

D. Snow, general counsel.

New York State Bar Association, letter from Charles Wesley Dunn,

chairman, section on antitrust law..

Pharmaceutical Society of the State of New York, statement of

Nicholas S. Gesoalde, executive secretary-
Rawlings, Charles T., letter from..
Rostow, Eugene V., letter from..
Simmons Co., letter from Howard C. Heinz.

589

235

323
661
512

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