Laurie, G. W., chairman, highway policies committee, National Council of Private Motor Truck Owners, Inc. Lautenschlager, Lester, New Orleans Recreation Department, New, Law, Louis S., executive director, Caribbean Tourist Association__ Lea, Hon. Clarence F., representing Transportation Association of Leonard, William N., president, Federation for Pailway Progress. - Lifson, Edward A., president, National Retail Furniture Association Liljenquist, L. Blaine, Western States Meat Packers Association, Inc. Lindsey, Al., executive secretary, Arizona Retail Liquor Dealers Litzenberger, A. E., representing Roller Skating Rink Operators Manotas, Don Fabio A., president, Chamber of Commerce of the 2742 Martin, Robert D., secretary-treasurer, Roller Skating Rink Operators 2471 Maxwell, Paul E., executive secretary, West Virginia Glass and Pot- 2833 McDaniel, Glen, president, Radio-Electronics-Television Manu- 2315 McNutt, Paul V., McNutt & Nash, New York, N. Y 2377 2214 Miller, Dudley F., representing National Institute of Oilseed Products 2360 Mindel, Samuel, manager, Local 2, Fur and Leather Workers Union.. Moller, James W., president, El Dorado Oil Works, San Francisco, Mollin, F. E., executive secretary, American National Cattlemen. Morgan, George W., president, Association of American Ship Owners-- Morton, C. G., representing American Ski Manufacturers Association_ 2450 Nehemkis, Peter R., special counsel, appearing for W. R. Dabney, Netherton, Ross D., legislative counsel, American Automobile Associa- Nugent, Frank J., vice president, sales, Schaible Co., Cincinnati, Ohio. 2204 2417 2816 O'Neill, John E., general counsel, Brewers' Association of America.. Overmyer, J. Harold, vice president, Revco, Inc., Deerfield, Mich... 2220 Packard, Arthur J., representing American Hotel Association___ Parker, Lovell H., chairman, special tax committee, National Coal Parkinson, Fenton M., executive director, National Tobacco Tax Paul, Victor, chairman, Retail Jewelers Tax Committee, Inc.. Pinkney, James F., general counsel, American Trucking Associations, Porter, Frank M., president, American Petroleum Institute. Prendergast, Joseph, executive director, National Recreation Associa- tion_.. 2536 Purdon, Alexander, secretary-treasurer, National Federation of 2701 Reilly, James F., executive director, League of New York Theaters_2487, 2497 Riley, George D., national legislative committee, American Federation Rineheart, H. R., secretary, National Piano Manufacturing Associa- Ritzenthaler, A. B., representing Institute of Cooking and Heating Roberts, Austin L., Jr., acting general solicitor, National Association of Railroad and Utilities Commissioners__ Rubin, David A., tax accountant, Philadelphia, Pa. Ruml, Beardsley, member, board of directors, Bulova Watch Co., and 2190 Sayre, Harry D., president, United Paperworkers of America, CIO__ 2832 2332 Schulman, Samuel, president, Associated Fur Manufacturers, Inc... Schwarzstein, Jack H., representing National Ferryboat Operators Scudder, Hon. Hubert B., a Representative in Congress from the State 2682 Shapiro, Benjamin, president, National Handbag and Accessories 2635 Shiely, Vincent R., on behalf of Lawn Mower Institute, Inc---- 2294 2843 Smith, Clarice O., representing American Recreation Society and 2522 Smith, Hon. Howard W., a Representative in Congress from the 2689 Spitzer, Wilbur J., counsel, National Ferryboat Operators Associa- 2714 Stephenson, E. C., on behalf of National Retail Dry Goods Associa- 2558 Stone, Ellery W., president, American Cable & Radio Corp- 2671 2375 St. Thomas, William H., president, St. Thomas, Inc., Gloversville, Sullivan, Mark R., president, Pacific Telephone & Telegraph Co.... Sunshine, Theodore, representing United Fresh Fruit and Vegetable Sweet, Frederick, representing Hotel and Restaurant Employees and Tavano, Thomas J., Tavano's Travel Agency, Niagara Falls, N. Y.. Taylor, E. D., administrative vice president, Office Equipment Taylor, Greyton H., president, Bottle Fermented Champagne Pro- 2838 2815 Tomar, W. M., general counsel, Glass Bottle Blowers Association--- 2843 Totty, R. A., vice president, Seward Luggage Manufacturing Co., Trippe, Carl F., Chain of Rocks Amusement Park, Inc., St. Louis, 2477 Truax, Kenneth G., Kraft Travel Bureau, Buffalo, N. Y.. 2707 2692 Washburn, Watson, on behalf of Ballet de Russe de Monte Carlo, Inc. Williams, Hon. William R., a Representative in Congress from the Winn, Arthur L., Jr., La Roe, Brown & Winn, Washington, D. C. 2379 2622 Wise, F. B., secretary-treasurer, National Renderers Association___. Wishart, James H., research director, International Fur and Leather Wootton, Edward W., representing Wine Conference of America.. 2811 GENERAL REVENUE REVISION TUESDAY, JULY 28, 1953 HOUSE OF REPRESENTATIVES Washington, D. C. The committee met, pursuant to recess, at 7:25 p. m. in the Ways and Means Committee room, Hon. Noah M. Mason presiding. Mr. MASON. The meeting will come to order. TOPIC 40-EXCISE-TAX RATES The chairman of this committee is in the House asking unanimous consent for the passage of several noncontroversial bills. He will be here as soon as possible, and he asked me to start the meeting tonight. Tonight is the beginning of topic 40, excise tax rates. We are going to have 6 or 7 or more evening sessions on excises. The first witness is Mr. George C. Foerstner, who we are taking out of order. Is Mr. Foerstner here? Mr. FOERSTNER. Yes, sir. Mr. MASON. You may take the chair, please. If you will give your name and address and whom you represent to the scribe and then we will proceed. STATEMENT OF GEORGE C. FOERSTNER, EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER, AMANA REFRIGERATION, INC., AMANA, IOWA Mr. FOERSTNER. George C. Foerstner, Amana Refrigeration, Inc., Amana, Iowa. Mr. MASON. Proceed, Mr. Foerstner. Mr. FOERSTNER. Mr. Chairman and gentlemen of this honorable committee, my name is George C. Foerstner and I am executive vice president and general manager of Amana Refrigeration, Inc., of Amana, Iowa. We manufacture refrigerators and freezers, and a substantial portion of our products are of the type used in homes. Members of our industry welcome and appreciate the opportunity to appear here before this honorable committee and present the industry's point of view as to the effect of the existing excise tax on freezers and refrigerators not only upon the industry but upon the economy and welfare of all our citizens. At the present time there exists a 10 percent excise tax on freezers and refrigerators. The freezer industry was practically nonexistent 10 years ago. Its recognized inception dates from the end of World War II, when pro duction assumed a sizable proportion for the first time. Despite the increased sales since its inception, the industry is still in its infancy and can best be described as being very definitely in the promotional stage. Of all the common household appliances which are beneficial to the American public's health, welfare and economy, freezers and refrigerators may be said to constitute a major factor in raising the standards of American health through the proper preservation of food products. Even though these products do constitute a major factor in raising the standards of American health, they are one of the necessary and beneficial appliances presently taxed at a rate of 10 percent on the selling price. The freezer industry has been saddled with this tax during the years when it needed all the help it could muster in order to grow and become established. This additional tax burden has seriously retarded its growth in spite of the fact that sales of freezers have rapidly increased. The experience of our industry indicates very clearly that the use of freezers and refrigerators today in rural communities is a family necessity and not a luxury. Their use provides a method for the safe and economical preservation of food and prevention of spoilage and waste. It is well known that many bureaus of Federal and State Governments concerned wth health safeguards have advocated and urged the use of mechanical refrigeration, including home freezers. The widespread sale in America of electrical refrigerators for home use antedates freezers by some years. Previous Congresses have considered information and recommendations submitted by the Department of Agriculture and by our industry and by other interested groups indicating clearly that the excise tax on refrigerators was and is an important factor in preventing families in the Nation's lower income groups from owning refrigerators and thus enjoying the health safeguards and benefits provided. Based upon our industry's experience in more recent years with home freezers we can assure this committee that the excise tax on freezers has had a parallel effect. In fact the handicap imposed upon lower income groups by the excise tax on freezers is greater than in the case of refrigerators, because under normal course a farmer's or working man's family would buy a refrigerator before a freezer. Therefore, the increase in selling price resulting from the excise tax would constitute more of a burden to such a family in purchasing a freezer than in buying a refrigerator. I have no statistics on this point to submit to the committee at this time, but in givng ths information to the committee I am summarizing the experience of our distributors and dealers throughout the United States. If there is any skepticism here, or if for any other reason the committee would like to have affidavits or some form of statistics to support the information, I will be glad to furnish it. I do want to emphasize again that the low income families of farmers and working men are in persons who suffer most by reason of the excise tax on refrigerators and freezers. The freezer industry is highly competitive and the profit margin is small. A majority of the home freezers now being sold are manufactured by small companies like ourselves, either for direct sale or on contract with other manufacturers. All companies have aimed to produce their product at the lowest possible cost to the consumer and in order to survive have constantly employed cost reduction methods. |