And the Louisville Courier-Journal in Louisville, Ky., likewise denied me that privilege.

Senator REED. That is, entirely denied you, or restricted you as to the amount of space?

Mr. MORRIS. No, sir; they absolutely denied me wholly and completely. The only space I could get was a little 2-inch ad on the church page on Saturday, and then it had to be linked up to some kind of church service.

Senator REED. Thank you.

Mr. MORRIS. With the permission of the committee, unless you have further questions that you would like to ask me, I will be happy to submit my prepared document for the benefit of your committee.

And if your committee wants cuts for those maps to insert in its record, I will be happy to secure the cuts at my expense for the use of the committee.

Senator REED. We will let you know, Mr. Morris.

Mr. MORRIS. That is perfectly all right.

Senator REED. Normally, in very voluminous matters like petitions and lengthy pamphlets-this is a lengthy pamphlet, from some points of view-we place such material in the files of the committee and do not undertake to reproduce them in the printed testimony.

Mr. MORRIS.. May I say one other word of explanation?

You will see in the front of that a picture of 20,000 letters. I have been before other committees of Congress, and I asked my listeners to write to Congress, and they flooded the committee with such a flood of mail, which got tangled with other mail matters of the committee, and created such confusion that this time I just asked them to write me, and save the committee all the confusion that grows out of such a thing. Because we believe your committee is open to the arguments in the case, and we are not trying to put any pressure on you.

Senator REED. Some of your people failed to heed that admonition. Mr. MORRIS. Did they?

If I have any time left, we will reserve it for the later periods in the discussion.

Senator REED. All right, Mr. Morris.

Mr. MORRIS. Thank you, sir.

Senator REED. Bishop, will you call your next witness?

Bishop HAMMAKER. Mr. Chairman, I will ask Dr. R. H. Martin, who has made a very intensive study of liquor advertising, to tell you something of his conclusions.

STATEMENT OF DR. R. H. MARTIN, EDITOR IN CHIEF, THE CHRISTIAN STATESMAN, PITTSBURGH, PA.

Dr. MARTIN. Mr. Chairman, and members of the committee, my statement is limited to one phase of the subject under consideration; namely, the amounts spent in the advertising of alcoholic beverages. Due to the fact that the published estimates as to these amounts differed widely, and were little more than guesses, I decided to make an investigation of this subject and to go to nonpropaganda sourcesthe most reliable sources available-to obtain, as far as possible, the approximate amount spent from year to year by the alcoholic beverage industry in advertising its products.

For the last 5 years I have given considerable time and effort to this investigation. The sources to which I have gone for this information, a list of the organizations and publications from which the figures I have used were obtained, or based, is appended to this statement. These I have appended to the statement which I wish to file for this committee.

At the outset it should be stated that definite figures are obtainable only on the larger concerns engaged in the manufacture of alcoholic beverages whose advertising is in the upper brackets and, for the most part, on a national scale. The most extensive and thorough investigation I made was for the years 1944 and 1945. I found the advertising expense in 1945 to be approximately the same as in 1944. On the authority of the Alcohol Tax Unit of the Internal Revenue Department, the number of concerns licensed to manufacture alcoholic beverages, was at that time 1,470: Distilleries, 142; breweries, 463; wineries, 865. My investigation included only 142 of the largest of these companies, divided as follows: 63 distilleries and wineries, and 79 breweries.

The total advertising expense of these 142 companies we found to be approximately $76,600,000, while in the remaining companies, something over 1,700 of them, most of them smaller companies, what they spent in advertising, we do not know.

Certainly it would be sufficient to make a total of at least $100,000,000 for all of the companies engaged in the manufacture of alcoholic beverages.

A startling fact was brought to light in this investigation; namely, that the liquor industry is heading up into a gigantic monopoly, with a few powerful distilleries largely dominating the entire industry and capable of exerting a tremendous power on the financial, economic, social, and political life of America.

In recent years a few of the larger distilleries have been taking over smaller distilleries, and, more recently, wine-producing companies and even breweries.

For example, Schenley Distillers Corp. now has at least 50 subsidiary companies, including several wineries, and 1 brewery.

Here are the distilleries. Here are the advertising expenses of seven big distilleries in the million-dollar class of advertisers for the year 1944, in magazines, newspapers, and network radio, on which definite figures were obtainable. These 7 distilleries advertised over an average of 12 media. That leaves nine unaccounted for. And I have made an estimate I can't go into detail-as to what they spent over the nine others.

This is the estimate:

Outdoor advertising_-.
Transportation advertising.
Window and counter display.
Other media‒‒‒‒‒

The total is___.

$3, 000, 000 2,500,000 1,500,000 2, 000, 000

9, 000, 000

That would bring the total to $32,000,000 as the advertising expense of these seven distilleries.

Now, this is 42 percent of the advertising expense of the $76,600,000 of the 142 companies which my investigation covered, and one-third

of our estimate of $100,000,000 for the entire 1,470 companies engaged in the manufacture of liquor, wine, and beer.

Now, I have made an investigation for 1946.

I went to New York last week, and got Printers' Ink, and Advertising Age, and got advance copies of those. I have here the figures definitely for these seven distilleries. You will find them at the top of the next page, Seagrams, Schenley, National, and so on. And for 1946 their advertising expense for magazine, newspapers, and the radio went up from $23,000,000 to $27,000,000.

They advertised over an average of nine other media, and my estimate for those nine is $10,000,000, rather than $9,000,000, due to the fact that the advertising expense, our loor and other, has gone up.

So you add that $10,000,000 and you have these five distilleries with advertising expense over all media, amounting to the tremendous sum of approximately $57,000,000.

Following that, I have the table here to show the increase in the advertising expense of these seven distilleries over these three media, from 1942 to 1946, inclusive. The figure rises from about 15% million in 1942 to 27 million in 1946. That shows that there was an increase of 70 percent in the advertising expense of these companies over these media from 1942 to 1946; that the increase in expense of 1946 over 1945 was $3,296,632, or 14 percent.

The table is as follows:

There has been a decided increase in the advertising expense over magazines, something of an increase in radio, and I think a little decrease in newspaper advertising. But I estimate that the increase for all of them would be about 15 percent; and on that basis, for these 142 companies, for 1944-45, that would bring the $76,600,000 up to about $88,000,000.

Senator REED. Dr. Martin, do you know of any periodicals that have declined liquor advertising?

Dr. MARTIN. Oh, yes. Periodicals, you say? And the radio also; yes. I do not have those figures.

Senator REED. There are a lot of newspapers that do not accept it? Dr. MARTIN. A great many of them.

Senator REED. I did not know what the policy of the periodicals

was.

Dr. MARTIN. Some of these other gentlemen have the testimony. I do not have that. And there are quite a number of magazines, too; the Saturday Evening Post, and so on.

Mr. JOHNSON. We have that, Your Honor.

Senator REED. Now, Dr. Martin, your 5 minutes has expired. However, Mr. Morris did not use more than 22 minutes, so perhaps, Bishop, you might want to give Dr. Martin 2 minutes.

Dr. MARTIN. This would bring our estimate of the total advertising expense of all the companies manufacturing alcoholic beverages up to a grand total of about $112,000,000 for the year.

Now, just a word about magazines:

Among the many media that the liquor industry use, magazines stand clearly at the head, and that advertising is confined very largely to a few of the larger magazines, whose circulation mounts up into the millions.

Now, with the limitation of my time, I should like to speak of the magazines published by one company, Time, Inc., which publishes Life, and Time, and Fortune.

I went through the 52 issues of Time and of Life and the 14 issues of Fortune, to get the number of liquor advertisements-1,137.

Then, to get the revenues, I went to the Standard Rate and Data Service, and the tabulation on page 6 of my statement shows what I found.

Now, this is a one-time rate that I have here; and for frequency, as you know, there is a slight reduction.

For Life, it would approximate $6,000,000; and for Time and Fortune, about $2,000,000.

Now, they stand clearly at the top of the whole list. And the total for the three magazines, as shown here, is $8,422,852.

Now, I have herefore me an article by Mr. Gavin, who is the editor of Liquor, Inc., and he says that back in 1934, their total advertising expense was $3,000,000. That has mounted up until, as of 1945, he says that the expenditures of the liquor industry rank high in the first 10 of all industries.

Now, 10 years ago, the Department of Commerce published the percentage of the total sales of these different industries expended in advertising, and at that time they put liquor and beer up fourth from the top, I think it was, of 91 industries.

Senator REED. We have run over 10 minutes now, Dr. Martin.
Thank you very much.

Bishop HAMMAKER. Next we shall hear from Mr. Samuel Reid, of Philadelphia, who is a leader in the Presbyterian Church and an outstanding businessman.

Will you take the chair please, Mr. Reid?

STATEMENT OF SAMUEL REID, MODERATOR, PHILADELPHIA PRESBYTERY OF THE UNITED PRESBYTERIAN CHURCH OF NORTH AMERICA, PHILADELPHIA, PA.

Mr. REID. To the honorable members of the Senate Committee on Interstate and Foreign Commerce, in hearing on S. 265, Capper bill, greetings.

My name is Samuel Reid, of Philadelphia, now moderator of the Philadelphia presbytery of the United Presbyterian Church of North America.

At our meeting of general assembly, our highest church court, whose membership is elected by various presbyteries, consisting of pastors and laymen, in session at Tarkio, Mo., May 29 to June 3, 1946, took the

36

following action on June 3, 1946, and I quote from the official minutes, page 7659, part of the report of committee on reform:

Because of the increase in the use of alcoholic beverages and because of the brazen and often, untrue advertising of the liquor interests over radio and on billboards, and in publications, we would urge that ministers and laymen begin We would suggest that one at once to fight this evil more vigorously than ever. way of doing this is to write to your favorite radio station and protest against their programs being sponsored by liquor interests. We believe an overwhelming protest would have a tremendous influence, but it should be done at once.

Our denomination has historically and consistently protested the widening influence of the alcoholic beverage trade or industry in their use of such promotion aids as billboards, newspapers, magazines, radio, and other device that would tend to increase the use of alcoholic beverages.

Alcoholic beverages are a detriment to health, according to high medical authority; a detriment to morals, according to our Department cf Justice; a detriment to spiritual welfare, as the church has proved. The well-being of our citizens from youth to old age warrants the favorable action on S. 265, Capper bill, now before this committee.

If I might have an aside from that, there is a magazine that has come into our home for many years, one which never resorted to liquor advertising. Recently, they did a full page of advertising on rum and wine.

I wrote them, protesting, and they came back with a very quick reply, graciously worded, of course, that since wine was now a part of cooking formulas, they therefore were obliged to accept wine advertisements.

Senator REED. That was a pretty good story, was it not?

Mr. REID. Not to me, sir; nor, I think, to right-minded persons.

Senator REED. Under the rules of the Senate, a committee may not sit while the Senate is in session.

The Senate has been in session since 11 o'clock and will continue all day.

During the noon recess, I will ask permission of the Senate to continue this afternoon. So many people are here from out of town that we desire to carry out this hearing as expeditionsly as possible and meet the convenience of as many people as we can.

The committee will now recess until 2 o'clock.

(Whereupon, at 12:05 p. m., a recess was taken, to reconvene at 2 p.m. of the same day.)

AFTER RECESS

(Pursuant to the expiration of the recess, the committee reconvened at 2 p. m.)

Senator REED. The hearing will resume.

Bishop HAMMAKER. Miss M. Louise Gross, who is opposed to the bill, cannot easily be here tomorrow, and she has asked that the proponents of the bill waive 5 or 10 minutes and allow her to speak this afternoon.

With your consent and approval, we are very willing that she should be heard now.

Senator REED. When Miss Gross talked to me, it was my suggestion that she talk to you. I was quite sure you would accord her the We will take Miss Gross courtesy of a hearing this afternoon.

now.