Evening star., 1954-05-25
Senator's Hear
Arguments on
Fair Trade Bill
D. C. and National
Groups Testify
At Herring

AOCdj anu udLlO1lal BUSINESS
groups and spokesmen for con-
Sumers today staged a battle of
words before a Senate subcom-
mittee over the proposed enact
ment of a so-called Fair Trade"
law for the District.
The hearing was held by the
Business and Commerce sub
committee of the Senate District
Committee headed by Senator
Payne. Republican, of Maine.
Thirty-nine witnesses were
scheduled. Chairman Payne said
the record would be kept open
to June l for the filing of other
statements pro or con. The meas
ure, introduced by Senator Beall,
Republican, of Maryland, would
permit manufacturers of trade
marked products which are in
competition to make contracts
fixing minimum prices for the
resale of their goods. Opponents
traditionally have labeled such
measures price fixing" or price
raising" bills.
At the outset the proponents
won the support of one subcom-
mittee member, Senator Barrett.
Republican, of Wyoming, who
said he favored this type of
legislation.
Teamed up in support Of the
bill were the Merchants and
Manufacturers Association,
Board of Trade. Better Business
Bureau, a spokesman for the
Sunbeam Corp. from Chicago
and the Bureau of Education on
Fair Trade, New York.
Arrayed against the plan were
the District Commissioners, Mrs.
Leslie B. Wright of the Fedora
ton of Citizens Associations and
Lloyd C. Halverson, economist,
representing the National
Grange.
The hearing recessed shortly
after noon to resume at 10 am.
next Tuesday.
Summaries of testimony by
witnesses follows:
Senator Beall, Republican, of
Maryland-Fair trade is good
thing for both the people and
business, especially the small
business. Maryland and Virginia
are feeling the effects of unfair
competition that comes from
Washington.
Arthur j. Sundlun, president
of the Merchants and Manufac-
turers Association - Merchants
in Washington are facing a SER
ious situation because of dis
count houses. The operations Of
these houses is no more than
predatory price cutting.
George Kneipp, assistant cor
poration Counsel for the District
He placed a letter from the
Commissioners in the record that
said the fair trade plan would
enable the manufacturer to i'm
pose minimum prices at levels
fixed without relation to differ
ences in costs among different
dealers.
Mr.. HalversOn, National Grange
Discount houses are a legiti-
mate business. Competition be-
tween sellers creates greater
efficiency in retail and wholesale
distribution.
Leland S. Mccarthy, Better
Business Bureau - The bureau
supports the bill. It is needed as
cut-rate 'bait-price" advertising
is damaging price levels.
Maurice Mermey, Bureau of
Education on Fair Trade, New
York-Drugstore bankruptcies in
the District over the last six
years represented 3.8 per cent
of total retail bankruptcies COM
pared to IL per cent found in
the fair trade States. Nothing
shows that people pay more in
fair trade States.
H. T. Van Nell, Sunbeam Corp.
Department stores here have
about abandoned efforts to ham
die Sunbeam appliances because
of competition from discount
houses which sell at a little over
cost.
Emanuel Katz. Doeskin Prod
ucts, Inc.-Price cutting may
lead to Government control. It
has been established that price
cutting is one of the most ef-
fective means for eliminating
competition.