Music Trade Review
Issue: 1953 Vol. 112 N. 12 - Page 30
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
Still Time to Urge Social Security
Freeze; Fair Trade Act Upheld
A cheer for the show . . •
with feathery wreaths the
forest is bound
And the hills are with
glistening diadems crown'd.
-ELIZA COOK
JCJACH year brings tous
fuller
appreciation of the bonds
forged by pleasant associations
.with all of you, our good friends
...We send you our good wishes
for a most pleasant holiday
season and a happy new year..
GULBRANSEN
COMPANY
2050 N. RUBY ST., MELROSE PARK, ILL.
30
The National Association of Music
Merchants issued a special request last
month to all members urging immedi-
ate action by them to contact Congress-
men by letters, wires, telephones or
personally, to urge the freezing of the
11/^% Social Security tax for the fol-
lowing reasons:
" 1 . The old-age and survivors insur-
ance trust fund—which represents the
excess of collections over benefits plus
interest—is now $18 billion. It is defi-
nitely stated in the law it was the in-
tent of Congress to keep the trust fund
as a small reserve, and not to pyramid
it into an astronomical amount. This is
clear from the part of the law which
directs the Secretary of the Treasury to
report to Congress whenever the fund is
greater than an amount equal to three
times the maximum annual benefits ex-
pected to be paid in any year of the
succeeding five years. The fund is now
more than seven times the annual bene-
fits paid in 1952.
"2. Careful consideration must be
given by the Congress as to the size
and purpose of the fund, and until
such time as Congress makes this de-
termination, the rate should not be
allowed to increase automatically. If
the present rate is frozen and no
change made, the fund would not be
depleted, even under the worst type
of employment conditions, until 1964
or until 1970 under the best. A sub-
committee of the Ways and Means
Committee, headed by Representative
Curtis (R., Neb.) is now engaged in
making a thorough study of the social
security system. There is, therefore,
no need to increase the tax rate at
present.
"3. More and more students of the
field have pointed out the desirability
of putting old-age insurance on a pay-
as-you-go basis, with perhaps a small
reserve. Actually, old-age benefits will
always be on such a basis, since bene-
fits will be paid out of current income.
If the current collections from the old-
age insurance tax are not sufficient to
pay benefits at any period, the balance
will have to be made up from general
revenue. This balance may be called
interest on the fund, but as a practical
matter, this interest will come from
current tax receipts.
"4. The increase in the tax rate will
divert about Si.5 billion from current
spending, half of it directly from con-
sumers pocketbooks, and half of it
from employers income (incorporated
and unincorporated employers) a re-
duction which might have serious ef-
fects on the economy.
As stated in The Review last month
Congress will convene the first week in
January. The Social Security rate is to
be increased from 1 ^ % to 2% on
January 1st unless Congress acts to
freeze it at
Fair Trade Act Upheld
The Supreme Court of the United
States has settled the Fair Trade ques-
tion by refusing to review the decision
of the 5th Circuit Court of Appeals
upholding the constitutionality of the
Louisiana Fair Trade Act and the Mc-
Guire Act (Schwegmann Bros. V Ely
Lilly & Co., No. 248, October 19, 1953.
The Court below held that the non-
signer provision of the Louisiana Act
coupled with the language and intent
of the McGuire Act, exempting such
provisions from the Sherman Act, do
not constitute an unconstitutional dele-
gation of price fixing powers to private
persons. Schwegmann's petition for re-
view asserted that the Louisiana Statute
was "coercive" as to non-signers and
was therefore "lacking in due process,
confiscatory, and void."
All manufacturers of branded mer-
chandise are now free to enter into
Fair Trade contracts on their products
in the overwhelming majority of the
states.
With the problem of discount houses
growing by leaps and bounds, it now
appears that the way is open for manu-
facturers to protect the rank and file
of their distributors from destructive
competition. Indeed, Fair Trade laws
seem to constitute the only legal meth-
od through which this problem may be
met.
Controls on Nickel—Nickel Silver
Revoked
Effective November 1, the Business
and Defense Services Administration
revoked its controls over the distribu-
tion of nickel and its use in the civilian
economy. Revoking the control order
does not in itself indicate an increase
in the overall supply of nickel for the
civilian market, but does return to pri-
vate industry the responsibility for the
equitable distribution of the available
supply after defense needs are met.
This action will directly benefit the
band instrument industry.
THE MUSIC TRADE REVIEW, DECEMBER, 1953
Still Time to Urge Social Security
Freeze; Fair Trade Act Upheld
A cheer for the show . . •
with feathery wreaths the
forest is bound
And the hills are with
glistening diadems crown'd.
-ELIZA COOK
JCJACH year brings tous
fuller
appreciation of the bonds
forged by pleasant associations
.with all of you, our good friends
...We send you our good wishes
for a most pleasant holiday
season and a happy new year..
GULBRANSEN
COMPANY
2050 N. RUBY ST., MELROSE PARK, ILL.
30
The National Association of Music
Merchants issued a special request last
month to all members urging immedi-
ate action by them to contact Congress-
men by letters, wires, telephones or
personally, to urge the freezing of the
11/^% Social Security tax for the fol-
lowing reasons:
" 1 . The old-age and survivors insur-
ance trust fund—which represents the
excess of collections over benefits plus
interest—is now $18 billion. It is defi-
nitely stated in the law it was the in-
tent of Congress to keep the trust fund
as a small reserve, and not to pyramid
it into an astronomical amount. This is
clear from the part of the law which
directs the Secretary of the Treasury to
report to Congress whenever the fund is
greater than an amount equal to three
times the maximum annual benefits ex-
pected to be paid in any year of the
succeeding five years. The fund is now
more than seven times the annual bene-
fits paid in 1952.
"2. Careful consideration must be
given by the Congress as to the size
and purpose of the fund, and until
such time as Congress makes this de-
termination, the rate should not be
allowed to increase automatically. If
the present rate is frozen and no
change made, the fund would not be
depleted, even under the worst type
of employment conditions, until 1964
or until 1970 under the best. A sub-
committee of the Ways and Means
Committee, headed by Representative
Curtis (R., Neb.) is now engaged in
making a thorough study of the social
security system. There is, therefore,
no need to increase the tax rate at
present.
"3. More and more students of the
field have pointed out the desirability
of putting old-age insurance on a pay-
as-you-go basis, with perhaps a small
reserve. Actually, old-age benefits will
always be on such a basis, since bene-
fits will be paid out of current income.
If the current collections from the old-
age insurance tax are not sufficient to
pay benefits at any period, the balance
will have to be made up from general
revenue. This balance may be called
interest on the fund, but as a practical
matter, this interest will come from
current tax receipts.
"4. The increase in the tax rate will
divert about Si.5 billion from current
spending, half of it directly from con-
sumers pocketbooks, and half of it
from employers income (incorporated
and unincorporated employers) a re-
duction which might have serious ef-
fects on the economy.
As stated in The Review last month
Congress will convene the first week in
January. The Social Security rate is to
be increased from 1 ^ % to 2% on
January 1st unless Congress acts to
freeze it at
Fair Trade Act Upheld
The Supreme Court of the United
States has settled the Fair Trade ques-
tion by refusing to review the decision
of the 5th Circuit Court of Appeals
upholding the constitutionality of the
Louisiana Fair Trade Act and the Mc-
Guire Act (Schwegmann Bros. V Ely
Lilly & Co., No. 248, October 19, 1953.
The Court below held that the non-
signer provision of the Louisiana Act
coupled with the language and intent
of the McGuire Act, exempting such
provisions from the Sherman Act, do
not constitute an unconstitutional dele-
gation of price fixing powers to private
persons. Schwegmann's petition for re-
view asserted that the Louisiana Statute
was "coercive" as to non-signers and
was therefore "lacking in due process,
confiscatory, and void."
All manufacturers of branded mer-
chandise are now free to enter into
Fair Trade contracts on their products
in the overwhelming majority of the
states.
With the problem of discount houses
growing by leaps and bounds, it now
appears that the way is open for manu-
facturers to protect the rank and file
of their distributors from destructive
competition. Indeed, Fair Trade laws
seem to constitute the only legal meth-
od through which this problem may be
met.
Controls on Nickel—Nickel Silver
Revoked
Effective November 1, the Business
and Defense Services Administration
revoked its controls over the distribu-
tion of nickel and its use in the civilian
economy. Revoking the control order
does not in itself indicate an increase
in the overall supply of nickel for the
civilian market, but does return to pri-
vate industry the responsibility for the
equitable distribution of the available
supply after defense needs are met.
This action will directly benefit the
band instrument industry.
THE MUSIC TRADE REVIEW, DECEMBER, 1953
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