Hon. J. PERCY PRIEST, FREIGHT FORWARDERS INSTITUTE, Washington 4, D. C., February 6, 1956. Chairman, Committee on Interstate and Foreign Commerce, House of Representatives, House Office Building, Washington, D. C. DEAR CHAIRMAN PRIEST: It has been announced that on February 16 and 17 your committee will hold hearings on H. R. 4627, a bill prohibiting the transportation in interstate commerce of advertisements of alcoholic beverages. The freight-forwarding industry is not prepared to state a position with regard to the substance of the bill. However, the industry is very much concerned with that provision of the bill which would impose criminal penalties upon common carriers in the event they transport the prohibited items. Section 3 of the bill reads as follows: "SEC. 3. It shall be unlawful for any common carrier or for any private carrier for hire to transport from any State or Territory or the District of Columbia to any other State or Territory or the District of Columbia any newspaper, periodical, newsreel, photographic film, or record for mechanical reproduction advertising alcoholic beverages or containing the solicitation of any order for alcoholic beverages." We appreciate the fact that the penalties provided by section 7 of the bill apply only in the case of violations knowingly committed. Nevertheless, it is reasonable to anticipate that the bill would impose severe hardship upon the freight-forwarding industry. It would be virtually impossible for the managements of the companies to make and police regulations which would insure that none of the prohibited articles moved in their service. It is, of course, impossible for any common carrier physically to inspect each and every article moving in its service. Freight-forwarder personnel might be held responsible for acceptance of the prohibited items despite the best efforts of the companies to exclude them. It has been the rather universal practice, in other cases where certain articles have been excluded from interstate commerce, to exempt common carriers from the penalty provisions of the statutes. For example, Public Law 385, 83d Congress, prohibiting the transportation of fireworks, contains a provision reading: "This section shall not apply to a common or contract carrier * * *," etc. The legislation involving misbranded woolen goods contains a similar exemption (15 U. S. C. 68a). Other examples could be cited. When asked to comment upon such bills in the past the Interstate Commerce Commission has urged the exemption of common carriers, a fact which can be verified from the committee's files. It is, accordingly, strongly urged that section 3 of bill H. R. 4627 be revised so as specifically to exclude common carriers, or, in the alternative, that section 3 be entirely eliminated. Attention is directed to the fact that Senator Langer, who introduced S. 923, which is identical in terms with H. R. 4627, has caused to be printed a proposed amendment striking section 3 from the bill. Since the bill otherwise specifies the persons against which it is intended to apply, it is believed that the elimination of section 3 would have the effect of removing common carriers from the reach of the bill. Whatever method is used, the freight-forwarder members of the Freight Forwarders Institute strongly urge your committee to make certain that the penalty provisions of the bill do not apply against common carriers. We respectfully ask that this letter be received for the record as an expression of the views of the freight-forwarding industry. Yours very truly, G. MORROW, President. STATEMENT OF FRANK A. HARING, SECRETARY AND EDITOR, JOBSON PUBLISHING CORP., NEW YORK, N. Y. Mr. Chairman, my name is Frank A. Haring, secretary of the Jobson Publishing Corp., and editor of Liquor Store magazine, a national publication serving 42,000 liquor stores across the country. Liquor Store magazine is our only publication, and we are opposed to bill H. R. 4627 because it proposes the confiscation of our one and only income producing commodity-alcoholic beverage advertising. There are more than 50 local and national trade publications serving the alcoholic beverage industry, and as in our case, without advertising they will all be forced out of business. Unlike newspapers and magazines circulating among the general public and deriving their advertising from the producers of a tremendous variety of consumer goods, liquor trade books are confined to a single industry, producing a single product-alcoholic beverages. Trade publications serving the alcoholic beverage industry confine their circulation strictly to industry members. Their news and feature articles are confined to industry news, industry, industry education, and industry problems. While there can be no possible benefit in outlawing a communication media devoted to the raising of retailing standards in the liquor field, grave consequence would be certain to follow that would damage the industry socially and morally as well as economically if such a prohibition becomes effective. Our circulation, for instance, is made up of 42,000 liquor stores spread across the country. Imagine, if you will, an industry of more than 40,000 individual businesses, all deprived of their principal means of intercommunication, out of touch with their field, uninformed on industry developments, practices, products, responsibilities, taxes, laws, and regulations. Every industry in this country has its own trade press, and it has been clear that the growth of the trade press has kept pace with the growth of the industry it serves. By cutting off the liquor industry from its trade press, there would be interposed, a serious roadblock in the continued development of the industry. This roadblock would be welcomed by the prohibitionists, as it is clear that they have nothing against national publications as an institution or even trade publications in the liquor industry, but their role bias is against the industry itself, and specifically against the products that this industry sells. But, looking at it from the public interest, and on the assumption that the will of the majority of the people as well as Congress is for legal liquor, it is certainly in the public interest that the liquor industry have a healthy and vigorous trade press. Permit me to leave for the convenience of the committee a few typical liquor industry trade publications. They offer good examples of the type of editorial services that keep industry readers informed on legislative developments; on civic and social responsibilities; on the care of premises and on ethics in sales and merchandising. Although I regret the necessity of taking your time and my time-in view of the necessity, I deeply appreciate this opportunity of appearing before this committee to give testimony on a phase of this legislation that would mean the confiscation of our business and the closing of all liquor trade publications. NATIONAL ASSOCIATION OF ALCOHOLIC BEVERAGE IMPORTERS, INC., Hon. J. PERCY PRIEST, Chairman, Interstate and Foreign Commerce Committee, House of Representatives, Washington, D. C. DEAR MR. CHAIRMAN: I respectfully submit this communication for inclusion in the transcript of the hearing to be held on H. R. 4627. This association is a nonprofit, membership organization, incorporated under the laws of the State of New York, and comprises in its membership various corporations, companies, and individuals engaged in importing and distributing in the United States various types and kinds of alcoholic beverages. We believe that approximately 80 percent of all the foreign alcoholic beverages coming to the United States are brought here by our members. As a general rule, companies engaged in importing alcoholic beverages might well be classified as small-business enterprises. Their economic well-being depends not only on public acceptance of the various products imported, but also on rigid compliance with the innumerable laws imposed by both the Federal and State Governments on the importation and distribution of alcoholic beverages. Shortly after the repeal of prohibition, when this association was first formed and was managed, first by a code authority, and then by its own board of directors, the members of the association voluntarily adopted a resolution not to use the radio or any other advertising medium directly or indirectly for the purpose of advertising distilled spirits to women. Since that time, the membership have adopted various principles to guide them in advertising both wines and spirits to the general public. At no time have the members of this association used the radio or television for advertising distilled spirits. Under the terms of the 21st amendment to the Constitution and in accordance with various decisions made by the Supreme Court, the various States have reserved for themselves the police powers controlling the alcoholic beverage industry and the traffic in alcoholic beverages. The Federal Government, in addition to the necessary controls it exerts for the protection of the public revenue, also has retained control over the labeling and advertising of alcoholic beverages entering interstate commerce. H. R. 4627, if adopted by the Congress and approved by the President of the United States, would in effect signalize a new type of philosophy in government. It would mean that a minority whose social views have been rejected by the voters of the United States was still able to achieve its ends and objectives through the adoption of a law disguised as an act to control advertising, etc., which in effect should be called a law designed to bring about prohibition in the United States. It is more than 22 years since prohibition was repealed, and the 21st amendment to the Constitution adopted. It took 13 years of increasing law violation, of the breaking down of judicial and law enforcement segments of our Government, of destruction of the moral fiber of our people, to awaken the great majority of the voters of the United States to the necessity of repealing the constitutional amendment designed to take away from law-abiding citizens freedom of choice and freedom to live decent, orderly lives which apparently were not approved by a small, self-appointed and self-delegated minority which presumed for itself the right to interpret morals for the great mass of the citizens of our country. The written history of the prohibition era has not been destroyed, even though the persons who lived through it are passing on to their rewards, and the gangsterism and lawlessness which engulfed the United States and made its name a mockery throughout the world are fading into the dim recesses of the forgotten past. For 22 years the drys have maintained their fight to force prohibition on the people of the United States again. During those 22 years, there have been innumerable bills of all types and kinds introduced in behalf of the drys, and innumerable hearings have been held so as to give the drys their annual publicity, without which, undoubtedly, they would long have disappeared from the public scene. No one could possibly object to the preaching of true temperance in the United States. The objection comes to this group which far from preaching and teaching temperance, preaches and teaches intolerance. There is no need for the type of legislation provided for in the bill pending before your committee. We leave it to constitutional lawyers to determine whether, if enacted, the bill would be held constitutional. That, however, is not the important point. If this small minority is powerful enough to obtain legislation of this type with respect to the advertising of alcoholic beverages and is successful in drying up and eliminating such advertising, then it is obvious that other groups will demand similar legislation for other products to which they object, such as, for example, tobacco. The alcoholic beverage industry of our country is a well-run, law-abiding industry noted for its strict compliance with Federal and State laws and regulation. In contrast, the two dry States, Mississippi and Oklahoma, are noteworthy for there being conducted within their borders an illicit, illegal, industry, actually recognized in the State of Mississippi because of a tax being imposed on it. If these drys had set a record in the 2 States which they control, they would have at least some basis for coming to the Congress of the United States and demanding the imposition of prohibition, since the names and addresses of a large number of persons and companies engaged in the illegal transportation and sale of alcoholic beverages in the States of Mississippi and Oklahoma are a matter of record, because of the occupational tax stamps these persons must obtain from the Federal Government. In the fiscal year ended June 30, 1955, according to the report of the Internal Revenue Service, there were 48 wholesale liquor dealers in the State of Mississippi, and 1,442 retailers of liquor, in addition to 3,680 retail dealers of beer. In Oklahoma, there was only 1 occupational tax stamp for a wholesale liquor dealer, but there were 599 retail liquor dealers, in addition to 5,127 retailers of beer, which is legal in Oklahoma. These are the so-called dry States of the United States. They exemplify the hypocrisy of the drys who have fought so hard to keep them in the dry column, but have done nothing to bring about law enforcement in Oklahoma and in Mississippi to carry out the views of the drys with respect to the habits of others. Even in Mississippi and Oklahoma the drys were unable to bring about legislation to prevent the sale of beer. They are now atempting to do so, not through the police power which was reserved to the States, but through legislation by the Congress. If any advertising is issued for any alcoholic beverages, that advertising must comply, not with the views of the drys in any given region or State, but with the laws and regulations of the State government and the Federal Government controlling advertising. The major criticisms of advertising have come from the drys. All advertisements issued are most carefully scrutinized by State and Federal officials. In many States, they have to be approved in advance. It is repugnant to American tradition for a small group of private citizens to decide what is good for the great majority of our people. It is that type of thought and control which operates in Communist countries, and which was fostered by Hitler in Germany. The adoption of the proposed legislation is a step backward and would endanger the freedoms for which this country has fought so many times. Very truly yours, HARRY L. LOURIE, Executive Vice President. RESOLUTION WITH RESPECT TO ADVERTISING IN SUNDAY NEWSPAPERS "Resolved, That in the interest of good public opinion and relations members of the National Association of Alcoholic Beverage Importers, Inc., should refrain from advertising imported distilled spirits in Sunday newspapers or magazine supplements which are included and distributed with Sunday newspapers." STATEMENT OF PRINCIPLES OF ADVERTISING FOR THE NATIONAL In order to maintain a high degree of public respect for imported wines, dis tilled spirits, beer, and other alcoholic beverages, and to encourage and promote their use in moderation and as a contribution to gracious living; This association hereby adopts the following principles in order to furnish a guide of practices in advertising so as to avoid injury or offense to the public's respect for this industry and its products: 1. That the basis of all advertising of imported wines, distilled spirits, beer, and other alcoholic beverages should be good judgment, good taste, and sagacious, prudent, and diligent application of the usual and conventional social restraints. 2. That exaggerted claims and overstatements should be avoided, and no statements, claims, references, or innuendoes should be made through indirection with respect to any phase of advertising which by law or regulation is prohibited to be done directly. 3. That no advertising be used in any manner or in any media which is designed to appeal to minors. 4. That no suggestion be made that these products are used by athletes, nor should any implication be made that their use aids athletic powers. However, good advertising includes the association of these products with friendly and recreational activities. 5. That advertising of these products would exclude any exploitation of the human form in an immodest, vulgar, or sensuous manner. STATEMENT OF LEE W. MINTON, INTERNATIONAL PRESIDENT, GLASS BOTTLE BLOWERS ASSOCIATION OF THE UNITED STATES AND CANADA, AFL-CIO To the members of the House of Representatives' Committee on Interstate and Foreign Commerce, greetings: The Glass Bottle Blowers Association of United States and Canada, affiliated with the American Federation of Labor-Congress of Industrial Organizations, submits the following in support of its request that your committee deny the introduction of bill H. R. 4627. The Glass Bottle Blowers Association is a labor organization that represents all of the production workers in the glass bottle manufacturing industry in the United States. This organization has for more than 100 years represented the glass workers in this country, and has earned and enjoyed a spotless reputation for honesty, fair dealing and integrity as a national labor organization during its entire history. By reason of its long and continuous history as the labor organization representing the workers in the glass bottle manufacturing industry, it has a detailed and intimate knowledge of all the factors that affect the employment opportunities of its members and of those conditions that lead to the loss of job opportunities with the consequent adverse effects upon the national economy. We bring to the committee's attention the fact that during the prohibition era not more than 25 million gross of glass containers of all kinds were consumed annually in this country. This small usage resulted in job opportunities for fewer than 10,000 production workers in the entire industry in the country. Upon repeal of the prohibition laws, the glass bottle manufacturing industry was met with a substantial demand for glass bottles. As a result of such demand, plant facilities, long closed down, reopened; existing plant facilities were expanded; and the number of production employees in the industry rose to upward of 40,000, with an annual production of 135 million gross of glass containers. During World War II, our Government called upon the Glass Bottle Blowers Association and its membership for full participation in the production of glass containers around the clock, 7 days a week, so as to free critical materials formerly used in containers for necessary direct war materials, and for the purposes of supplying the demands of both the military and civilian population for containers for packaged goods. The union and all its membership unhesitatingly and completely cooperated in this request, and used its utmost energies in encouraging a maximum war effort. The introduction of H. R. 4627 and other similar bills which have for their purpose the limitation, if not the elimination, of the use of alcoholic beverages would substantially reduce job opportunities for the members of the glass bottle manufacturing industry who cooperated to the fullest for war production efforts. The ultimate purpose of H. R. 4627 is the restriction of the use of alcoholic beverages. If the distillers, brewers, and vintners are hampered by the proposed legislation in their advertising, which advertising is adequately controlled by other legislation, the use of alcoholic beverages will diminish in great measure. The result will, of course, be a substantial loss in work for our members and a return to the disasterous economic conditions of the prohibition era and the thirties. The union respectfully submits that H. R. 4627 is an opening wedge in the campaign of the prohibition forces which seek to reestablish the lawless and corrupt days of the prohibition era and the flagrant disregard of laws on our statute books that was so prevalent during those unfortunate days. We feel certain that your committee and the Congress of the United States does not desire to bring about a return of the conditions of the prohibition era. We further note that, if our country were to drift back to the conditions existing during the prohibition era, not only would the glass workers be adversely affected, but many other segments of our national economy. Workers in allied industries that produce, transport, and sell alcoholic beverages would suffer drastic diminution in their work opportunities. In particular, our farm population, which produces the raw materials used by brewers, vintners, and distillers, would suffer a sharp decline in their income from the effects of the proposed legislation. The decrease in the sale and distribution of alcoholic beverages will not only adversely affect the income of industrial and agricultural workers, but it will also cause a large decline in the taxes paid by the alcoholic beverage industry. Such substantial loss of revenue will increase the tax burden upon all citizens and place additional burdens upon the wage earners of our country. We also bring to your committee's attention that the pending bill known as H. R. 4627 is aimed to extend further the powers of the Federal Government, and to provide a dangerous precedent for further interference with the freedoms enjoyed by our people. For the reasons hereinabove stated, the Glass Bottle Blowers Association of the United States and Canada, affiliated with the American Federation of LaborCongress of Industrial Organizations is opposed to said H. R. 4627, and respectfully urges that your committee vote against its introduction on the floor of the House of Representatives. 74186-56-19 |