Evening star. [volume] (Washington, D.C.) 1854-1972, 1945-12-10
Citizens Groups
Win Hearings
On Cut-Rate Bill
Further Discussion
Scheduled by Senate
District Committee

District Committee
Representatives of % civic organi-
cations who oppose a bill to elimi-
nate cut-rate selling of trade name
products in the District today were
successful in having the Senate Dis
trict Committee schedule further
hearings on the measure in order
to hear expected opposition to the
measure from the Justice Depart
ment and the Federal Trade Com
mission.
Chairman Bilbo agreed to the re-
quest after witnesses objected to the
recent hearings on the measure by
Senate District subcommittee which
heard no opposition to the bill.
After the recent hearing, the
members of the subcommittee an
nounced they would vote favorably
on the measure. A storm of protest
from citizens organizations ensued
and Senator Bilbo scheduled today's
meeting to consider the question
further.
Opponents Surprised.
At today's session, Harry S. Wen
der, former president of the Fed
Grafton of Citizens Associations,
charged that prices in the District
would go up at least 20 per cent if
the bill passed. The bill authorizes
contracts between manufacturers,
wholesalers and retailers fixing min
imum retail prices on all kinds of
competitive products bearing trade
marks or brand names.
Mr.. Wender said the recent hear
ing by the subcommittee caught
those opposed to the bill by surprise
since they had no advance notice of
the hearing.
The witness offered into evidence
prices charged by Peoples Drug Co.
in the District and Virginia and
charged that under similar act in
Virginia, consumers pay approx
mately 20 per cent more for drug
products than they do in Washing
ton
MT. Wender declared that besides
drugs, liquor and groceries, the bill
would increase prices of furniture,
automobiles, electrical appliances
and every item that bears a trade
name"
As State Laws Cited.
Referring to the fact that As
States now have a similar law, Mr.
Wender charged that large manu-
facturers had spent money to in
fluence State Legislatures to pass
the bills. Senator Bilbo asked if
Mr.. Wender had proof to support
his charge and the witness replied
that he had.
The Senator said he would ask
Mr.. Wender to present his proof at
q subsequent hearing.
Another witness opposing the bill
was Miss Carolyn F. Ware, repre-
senting the District branch of the
American Association of University
Women.
Pointing out that living costs here
are generally higher than in other
cities, Miss Ware said the bill would
work a terrible hardship" on resi-
dents here. She called the bill "eco-
nomically unsound, anti-social in its
effects and special interest legiSla-
ton of a most dangerous sort"
Senator Bilbo said he had an
open mind" on the subject and was
convinced that further hearings
were needed in order to get a true
picture of the situation.
80 Per Cent Opposition Claimed.
John H. Conaughton, chairman of
the Law and Legislation Commit
tee of the Federation, estimated that
at least 80 per cent of District resi-
dents were against the measure. If
the citizens do not want it, the bill
should not be enacted" he said.
Il take issue with that statement"
Senator Bilbo said. 1T is not the
question of what the people want,
but what is good for them" The
Senator continued, For example,
the people here want the right to
vote, but we know that it is not good
for them"
DR.. Robert H. johnson, owner of
drugstore which sells products at
cut rates, denied the contention of
proponents of the measure that this
type of merchandising involves "loss
leader" type of selling.
In this type of selling dealer
offers one product below cost as
bait to lure customers into the store
In the hope of selling other mer-
chandise on which the price has
been marked up.
Il make a profit on every item I
sell because I buy in such huge
quantity" Mr.. johnson said. He
offered to open his books to the COM
mittee to show that he never dealt
in "loss leader" merchandising.
Among the other organizations
which went on record as opposing
the bill were: The Washington Ur-
ban League, the Washington FEEDER
alton of Churches, the League of
Women Shoppers, the Northwest
Council Citizens Association, CLIO
and AFL union groups, the FEEDER
alton of Womens Clubs, National
Farmers Union and the Union for
liam Ao%;oy,