The amendment mentioned by Mr. Greene, with explanatory statement, follows: I respectfully request the consideration of your committee of the following proposed amendment to Senate bill S. 1944: To aid in the administration of this act, associations or groups may present plans for self-regulation of their advertising practices to the Secretary of Agriculture, which he shall accept subject to the authority granted under the act provided that the Secretary shall find said groups or associations to be truly representative of their industries and that said plans tend to effectuate this act and are not designed to promote monopolies or to eliminate or oppress other enterprises. I offer this proposed amendment in behalf of the National Better Business Bureau, Inc., a nonprofit corporation located in the city of New York, which was established 22 years ago by the Associated Advertising Clubs of the World, now known as the Advertising Federation of America. The National Better Business Bureau is a membership organization composed of over 400 business firms consisting of national advertisers, publishers, and advertising agencies. purpose is to promote honesty and fairness in advertising and selling. It endeavors to fulfill this purpose by fostering ethical business practices and the discontinuance of unethical practices through the voluntary cooperation of the offenders. Its The principal reason for the creation of the bureau in 1911, known at that time as the National Vigilance Committee of the Associated Advertising Clubs of the World, was to combat the same type of advertising which this bill is intended to control and which at that time was much more prevalent. The Pure Food and Drugs Act of 1906 had been in operation for several years but it had not been successful in circumventing the numerous charlatans who were advertising bottled cures for tuberculosis, cancer, and other serious ailments. This exploitation of the public was induced through advertising of the rankest sort and the members of the advertising industry recognized that the public health was being jeopardized and that advertising was degraded and losing efficiency because of such abuses. They created the bureau with the intention of doing whatever they could collectively to protect their interests and the public's from those who used advertising to deceive and defraud. In this capacity, we have had numerous occasions to contact various lawenforcing bodies, including those in charge of the administration of the Pure Food and Drugs Act, and various State and city health officials, particularly the commissioner of health of New York City. I am pleased to say that we have always received splended cooperation from these Government agencies and we have had occasion many times to submit information that would be helpful to them. Owing to our being in New York City, we have our closest contacts with the New York City Health Department and the New York officeof the Federal Food and Drugs Administration. We are conversant with many of the advertising practices which the proposed act undertakes to correct, and we have a practical understanding of the many difficulties involved in obtaining satisfactory regulation of advertising in the broad field which this bill covers. In offering this amendment, we have no desire to in any way interfere with the administration of this act. However, we believe that with the inclusion of an amendment providing for self-regulation, the administrative authorities set up by law will gain the cooperative effort of many of those for whom the law is intended to regulate. The result of this joint regulation consisting of the Government and the cooperative interests of the advertising industry, will be to their mutual interest and provide a greater scope of protection for public health. I feel certain that my appeal amounts to a sympathetic response to President Roosevelt's request that Government and industry cooperate in their mutual interest and thereby provide the means to obtain a more wholesome industry in the public interest. We recognize that the right to practice self-regulation within the law exists despite the absence of a provision specifically permitting it. So the question might readily be asked-"If the opportunity for self-regulation exists without incorporating it in this law, why make the suggestion that it be included?” Our answer is that we believe all laws are effective to the extent that they are influential, and that the more law enforcement agencies can obtain the cooperation of those for whom the law is intended the more substantial will be the enforcement of the law. By making provisions for self-regulation you provide the ever present invitation to those for whom the law is intended to cooperate in their own interests with the administrative authorities to obtain the best possible regulation. To the extent that practical self-regulation programs are put into effect, the public is the beneficiary of the purpose and intent of the law, and likewise honest advertising interests are protecting themselves against unfair competition. To the same extent the Government is relieved of the cost and burden of regulation. The matters which the proposed advertising_sections_undertake to correct, generally speaking, divide themselves into two classes. One consists of the advertising of products which are harmful to public health or are exploited in such a manner as to invite the public to jeopardize its health. Such products and such advertising represent a small percentage of the whole, nevertheless they constitute a serious public menace and should have the prompt attention of the Government. The other group will be made up of the advertising of products which serve a useful purpose but which are advertised in a manner which has the capacity to mislead. Such transgressions could in most instances be corrected by suggestion, and close observation and contact with advertisers in this field would tend to keep the transgressions reduced to the minimum. We believe the suggested amendment would encourage the advertising interests included in the second group to set up plans of self-regulation that would prove very helpful in cooperation with the Government to provide the widest possible protection to public health that the proposed law undertakes to establish. Referring again to President Roosevelt's appeal for cooperation between industry and the Government, we submit that the proposed amendment will provide the means for the industries affected by this bill to help answer the request of our President in a practicable manner. STATEMENT OF LOUIS ROTHSCHILD ON BEHALF OF THE NATIONAL ASSOCIATION OF BETTER BUSINESS BUREAUS Mr. ROTHSCHILD. Mr. Chairman, my name is Louis Rothschild, director of the Washington Better Business Bureau, appearing on behalf of the National Association of Better Business Bureaus, which includes 50 such orgnaizations in the various cities, of which the National Better Business Bureau is a member. Our organization supports the general principle of this legislation. It was considered at the last annual convention, where this resolution was adopted. Resolved, That it is the unanimous opinion of the 19th annual conference of the Affiliated Better Business Bureaus, Inc., that there is a need to enlarge the scope of the Federal Food and Drug Act and that the effort being made with that objective in view by the present administration be endorsed and hereby so endorsed. The CHAIRMAN. The next speaker comes from my own native State, Michigan. I am sorry to have to limit any Michigan man. I have always resented it myself, when I have been put under limitation. Mr. Frank Gerber, from Michigan, representing the National Canners' Association. STATEMENT OF FRANK GERBER, ON BEHALF OF THE Mr. GERBER. Mr. Chairman and members of the committee. My name is Frank Gerber, of Fremont, Mich., a practical canner, and former president of the National Canners' Association and at present a member of its administrative council. The National Canners' Association was organized in 1907. It represents packers of more than 60 percent of the canned foods produced in the United States, not including milk. Its membership is about 650 firms, operating 1,070 plants. The association is in full sympathy with the purpose of the Department of Agriculture to correct such deficiencies as have been found to exist in the present Food and Drugs Act, and the recommendations it presents on behalf of the industry are based upon its desire to assist those responsible for legislation in formulating a measure that will accomplish the purposes desired without imposing unnecessary hardship. It is the opinion of the industry that many, if not most, of the new or revised provisions embodied in S. 1944 are more directly applicable to products other than foods, and for that reason we earnestly petition that you give consideration to the preparation of a separate food bill. Foods differ as widely from drugs and cosmetics both in nature and in character of control necessary over them that separate legislation would eliminate many of the problems involved in formulating and enforcing a law designed to cover all these classes of products. The suggestions and recommendations we have to make relate to the provisions as carried in S. 1944. If a separate food bill should be prepared, these suggestions and recommendations we request be embodied in that bill. As a general amendment, we recommend that wherever the word "health" is used there be substituted the words "public health.' The word "health" alone might be interpreted to mean the susceptibility of an individual to injury from a food that may be eaten with impunity by the normal person. Other specific recommendations are as follows: Section 2 (a), line 2, page 2. Add The term "canned food" shall mean all food which is in hermetically sealed containers and is sterilized by heat, except meat and meat food products which are subject to the provisions of the meat inspection act of March 4, 1907 (34 Stat. 1260), as amended, and except canned milk. The addition of this definition is because of revisions that will be word "may have." Delete the words "or may be." The canning industry believes that the determinations provided for in this section should be based upon fact rather than conjecture. Section 7 (a), line 19, page 8. After the word "food" insert the words "other than canned food." After line 24, page 8, add "If it be canned food and falls below the standard of quality or fill of container, promulgated by the Secretary for such canned food, and its package or label does not bear a plain and conspicuous statement prescribed by the Secretary of Agriculture indicating that such canned food falls below such standard." The addition of this paragraph is also requested because of recommendations that will be made in connection with section 11. Section 7 (f), line 6, page 9. Delete the phrase "in order of predominance by weight." This phrase is not necessary to accomplish the purpose of the paragraph which, we are advised, is for the protection of individuals suffering from some form of allergy. Moreover, it would appear to be confiscatory in view of the fact that it required practically a revelation of manufacturing formulae which are the private property of the producers. Section 11, line 14, page 15. After the word "food" insert "other than canned foods." Insert following section 11 the following as 11 (a): Section 11 (a). The Secretary is hereby authorized to fix, establish, and promulgate from time to time reasonable definitions of identity and a reasonable standard of quality and fill of container for each class of canned food as will in his judgment promote honesty and fair dealing in the interest of the consumer, and he is authorized to alter or modify such standard from time to time as in his judgment, honesty, and fair dealing in the interest of the consumer may require. Whenever the Secretary deems that for the purpose of this act any such standard would be established for any canned food, he shall give notice of a proposed standard and of the time and place of a public hearing to be held thereon not less than 30 days after the date of such notice. After such public hearing the Secretary may fix, establish, and promulgate such a standard for such canned food. The standard so promulgated shall become effective on a date fixed by the Secretary, which date shall not be prior to 90 days after its promulgation. Any such standard may be amended or repealed after notice and hearing as hereinbefore provided, and if amended or repealed the amendment or repeal shall become effective in the manner and at the time hereinbefore provided. The purpose of this proposed amendment is to continue in effect the provisions of the McNary-Mapes amendment to the Food and Drugs Act, which was proposed by the industry itself and enacted with the approval of the Department as a measure directly in the interest of the consumer. When the industry proposed the amendment it recognized the need of a mandatory labeling requirement enforceable under a criminal statute. It desired a mandatory provision because of the need of control over that small minority of manufacturers who, under a system of permissive labeling, might continue practices that are not in the consumer's interest. It desired a provision under a criminal statute so as to give greater strength to the enforcement of the law's requirements. It desired standards based upon tangible characteristics and qualities susceptible of accurate determination or measurement rather than upon personal judgments, opinions, or tastes, because of the difficulties and dangers involved in the enforcement of a criminal statute upon the grounds of personal opinion. To appreciate the truth and force of this statement it must be remembered that in connection with canned foods there are certain undefinable elements, and elements of major importance, such as flavor and appearance, which it is impossible to describe with the degree of accuracy necessary in connection with enforcement of a criminal statute. It desired a law that, while not attaining immediately the whole purpose of completely informative labeling, would affect improvement and thorough actual experience enable the industry and the Government to extend the program for better labeling. It desired, above everything else, to secure a law that could be and would be enforceable, rather than a law the enforcement of which would prove unfeasible and thus open the way to abuses more injurious to both the industry and the consumer than existed under former legislation. For these reasons the industry earnestly requests the retention of the McNary-Mapes provisions, in the belief that they represent a feasible, practical method of working out a solution of the labeling question as applied to canned foods, and that provisions going beyond the McNary-Mapes requirements and seeking to attain an immediate ideal solution of the problem will prove ineffective and unenforceable, and thus simply delay the improved conditions desired by both the industry and the consuming public. Section 12 (a), line 6, page 16. Delete words "the Secretary finds that"; line 12, page 16, delete word "he" and insert the word "are." These revisions are recommended in the belief that action by the Secretary of Agriculture should be based upon established facts rather than upon opinion. Section 13 (a) (2), lines 22 and 23, page 17, Delete the words "methods, processes." It is recommended that these be eliminated because their inclusion would give an opportunity for the acquirement of secret and confidential procedures which are not necessary to accomplish the purposes of the Act, and the dissemination of which would be greatly to the disadvantage of the manufacturer. Section 13 (b) (1), line 10, page 12. Delete the words "methods, processes" for reasons above stated. Section 17 (b). We recommend that the minimum fines provided for in lines 7 and 10, page 24, be eliminated. As written, the bill makes it mandatory to assess a heavy fine for a possibly trivial offense. It is believed that the penalties for trivial offenses should be less severe than are appropriate for offenses of a graver nature. Moreover, there will be difficulty in obtaining a conviction where conviction carries a comparatively heavy fine for an offense that may not be of a grave character. We also recommend the addition to this paragraph of a provision substantially the same as in the present Food and Drugs Act (section 2) relating to foods that are exported, to read as follows: Provided that no food not adulterated according to Section 3 (a) shall be deemed misbranded or adulterated within the provisions of this act when intended for export to any foreign country when no substance is used in the preparation or packing thereof in conflict with the laws of the foreign country to which said article is intended to be shipped; but if such food shall be, in fact, sold or offered for sale for domestic use or consumption, then this proviso shall not exempt such article from the operation of any of the other provisions of this Act. Section 18: It is the feeling of the industry that section 18, which makes no distinction between acts that are willfully criminal or due to criminal negligence, and acts that are inadvertent or accidental, may impose undue hardship upon officials and others who are endeavoring in every way to comply with the law. Section 21: We recommend that the words "and for the protection of the consumer against fraud," lines 2 and 3, page 29, be eliminated. The industry believes that the dissemination of precautionary information is justified when questions of public health are involved, but does not believe that beyond this there should be authority by publicity in advance of the findings of fact. Section 22: We ask the elimination of this section, as serving no useful purpose so far as canned foods are concerned. It seems futile and undesirable to set up machinery for certification of unenforceable definitions. To the extent that certification of quality standards for canned foods in connection with wholesale transactions is desirable, which desirability is not here questioned, the provisions of the warehouse act are available. This act provides for Federal examination of submitted samples and grade certification according to standards. |