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THE FARMERS AND STOCKMENS BANK OF CLAYTON,
Clayton, N. Mex., May 26, 1961.

Hon. EMANUEL CELLER,

Member, House Subcommittee, Washington, D.C.

DEAR SIR: We respectfully solicit your attention to H.R. 71 and hope that you will see fit to support the passage of this bill. Very truly yours,

F. H. CHILCOTE, President.

THE CITIZENS NATIONAL BANK,
Covington, Ohio, May 23, 1961.

Hon. EMANUEL CELLER,

House of Representatives, Washington, D.C.

DEAR SIR: I have studied a booklet published by the American Finance Conference, Inc., of Chicago, Ill., outlining the evils of GMAC and GMC financing and manufacturing. I would like to have you know that this bank and all of its officers have felt for a long time that something should be done to correct this situation.

I am a former employee of an independent finance company and am now assistant vice president and manager of the consumer loan department of this bank. I have personally talked to several people who have financed cars through GMAC, and I find the same problem exists as far as the rate they are paying and packing which the consumer has to pay.

GMAC also apparently will finance new or used cars, regardless of whether consumer can make the payments or not. I personally know of several cases where new cars have beeen financed through GMAC and repossessed in 90 days or less. GMAC can take a loss on these cars, and the loss can reflect on their operation as a subsidiary and will also reflect on their tax records for the end of the year.

Ford Motor Co., in the last few months, has reactivated their finance plan, very similar to GMAC. They also are putting pressure on their dealers to use Ford's plan. We have discussed this with a few Ford dealers who are friendly with our bank. These dealers feel that they are being pressured into using Ford's finance plan, and have resisted this pressure up to now, but sooner or later feel that they might have to submit to the pressure. When that happens they will lose their independence.

The banks in this vicinity of Ohio realize what can happen to us, especially to the consumer finance departments, as our bank does receive a good percentage of auto finance paper from Ford dealers. From GM dealers, we do not receive onetenth of our auto deals.

This bank has been very active in State and national movements to get tax equality for banks.

I would like for you to know that I heartily endorse H.R. 71.

If you have any more information available on this subject, I would appreciate receiving same from you.

Yours sincerely,

DONALD H. Cook, Assistant Vice President.

LIMA, OHIO, June 7, 1961.

Hon. EMANUEL CELLER,

Chairman, House Judiciary Committee,
Old House Building, Washington, D.C.:

Please accept my sincere commendation for your excellent efforts in connection with H.R. 71. The adverse effects of monopolistic power in the automotive industry to our economy and the American system of free enterprise are far reaching and dangerous and must be removed. For those reasons alone approval of H.R. 71 is vitally important. We must support your efforts 100 percent.

HARRY L. SOLOMON,

President, First National Bank & Trust Co

THE UNION BANK, Erie, Pa., August 3, 1961.

Re H.R. 71, a bill to prevent manufacturers of motor vehicles from financing and insuring the sales of their products.

Hon. EMANUEL CELLER,

House Office Building, Washington, D.C.

DEAR MR. CELLER: I refer to bill H.R. 71. I am sure that you have received many letters from banks and insurance companies relative to the captive finance companies and insurance companies of the automobile manufacturers, in which letters have been enumerated the many monopolistic practices of the automobile manufacturers as to the operation of their finance companies and insurance companies.

We are a small bank, as banks go-$25 million in total resources and we cannot compete because of this monopolistic control by the manufacturers. I ask that you vote in favor of H.R. 71.

Sincerely,

A. J. HARTLEB, President. THE NEFFS NATIONAL BANK, Neffs, Pa., August 1, 1961.

In re H.R. 71-bill to prevent manufacturers of motor vehicles from financing and insuring the sales of their products.

Hon. EMANUEL CELLER,

House Office Building, Washington, D.C.

DEAR CONGRESSMAN: Representing a small banking institution with a consumer credit department the last 25 years, we have found it next to impossible to finance General Motors products because the dealers were agents of the General Motors insurance company and got a substantial kickback from the affiliated finance company.

This monopolistic practice is not fair in a democracy and we are strongly opposed to it.

May we urge you to vote in favor of the above bill.
Yours truly,

I. H. LENGEL, President.

FIRST NATIONAL BANK IN SHARON,
Sharon, Pa., July 7, 1961.

Hon. EMANUEL CELLER,

Chairman, Judicial Committee,

House of Representatives, Washington, D.C.

DEAR CONGRESSMAN: I note that you have introduced and have been holding hearings on H.R. 71 which is directly aimed at the monopoly power of the auto mobile industry in relation to the direct financing of the sale of automobiles.

I am in favor of this bill; probably not for the same reasons that many other persons may write to you, but America is rapidly approaching the period where it can be easily brought to a complete economic collapse in the face of what we think is the greatest period of production that the country has ever had.

Feudalism of the middle centuries provided the monopolistic power of that time and had to pass out and make way for a new form of monopoly, but with the same object. We have tremendous corporations and cartels around the world and in the United States.

We do not have free enterprise in spite all of the laudatory addresses that are made in the name of free enterprise. Economical power always means political power; and in this particular instance, GMAC means that the small local bank cannot compete with the big finance companies that are financing their own company's cars. The finance company gives the kickback to the local dealer which the bank cannot give.

H.R. 71 only scratches the surface of this monopolistic power. However, for whatever it may be worth, I am in favor of it.

Very truly yours,

C. E. BROCKWAY, President.

PEOPLES BANK OF UNITY,
Unity, Pa., June 2, 1961.

Hon. EMANUEL CELLER,
House of Representatives,
Washington, D.C.

DEAR SIR: Our bank is under a competitive handicap in financing purchase of automobiles, because of the equivalent of tax-free status presently had by General Motors Acceptance Corp. In order to cure this inequality, we ask that you favor passage of H.R. 71. This bill will prevent auto manufacturers from owning finance companies.

Our thought is that the bill will serve the best interests of the Nation's economy and will assure a free marketplace in manufacturing, retailing, and consumer credit.

Yours very truly,

ELDER W. MARSHALL, President.

OKATON STATE BANK, Okaton, S. Dak., July 28, 1961.

Re H.R. 71—a bill to prevent manufacturers of motor vehicles from financing and insuring the sales of their products.

EMANUEL CELLER,

House Office Building,

Washington, D.C.

DEAR CONGRESSMAN CELLER: Naturally, we have an interest in having House of Representatives bill No. 71 become a law because we feel that it would stop automobile manufacturers from financing their own products, thereby, practically forcing their dealers to finance sales through an allied finance corporation instead of permitting the buyers to finance their purchases on the open market, as it were.

This would give the smaller finance companies and banks an opportunity to obtain their fair share of automobile and truck loans. We believe that such a situation would be a healthy one for all concerned, especially the buyers of automobiles.

Very truly yours,

Mrs. HAZEL A. DREW, President.

SOUTHERN BANK OF NORFOLK,
Norfolk, Va., July 17, 1961.

DEAR CONGRESSMAN: We favor the enactment of H.R. 71 and trust you will give it your vote and active support. Serious consideration must be given to the inroads being made by large corporations on smaller business enterprises. If the trend is not changed, there will be little, if any, business for the local merchant or institution. May we express the hope that you will give the objectives of H.R. 71 your earnest study? Be assured of our kind wishes and high respect.

Sincerely,

HARRY O. NICHOLS, President.

BANK OF CRADOCK AND NORFOLK COUNTY,
Norfolk County, Va., July 18, 1961.

DEAR CONGRESSMAN: This bank endorses H.R. 71 and writes to urge you to give it your vote and support. Big business is taking over the country's economy and Congress should act promptly to call a halt.

Smaller enterprises cannot compete with financial giants, such as the General Motors Corp., and these smaller businesses will cease to exist unless legislation is enacted to assist them in their efforts to remain alive. May we count upon your assistance?

Sincerely,

GEO. R. BINGHAM, Vice President.

FARMERS STATE BANK, Hillsboro, Wis., July 13, 1961.

Re H.R. 71-prevent General Motors and other auto concerns from financing and insuring sales of autos, etc.

Hon. VERNON THOMSON,

House Office Building, Washington, D.C.

DEAR SIR: I am writing to urge that you exert every possible (and proper) effort looking to enactment of above bill.

It is the viewpoint of myself and my banking associates, that if auto concerns like General Motors, Ford, Chrysler, etc., want to go in the banking business, then let them apply for a banking charter and come under banking supervision just like the rest of us in the financial business.

I hope you will agree with my viewpoint that above bill is constructive and squarely in the public interest.

Yours truly,

Hon. EMANUEL CELLER,

House Office Building, Washington, D.C.

W. B. RUNDELL, President.

THE FIRST NATIONAL BANK,
Decatur, Tex., July 28, 1961.

DEAR CONGRESSMAN CELLER: It is respectfully requested that you give your support to H.R. 71, a bill to prevent manufacturers of motor vehicles from fi nancing and insuring the sales of their products.

Very truly yours,

J. A. FERGUSON, President.

SOUTH FORT WORTH STATE BANK,

Fort Worth, Tex., June 12, 1961.

Hon. EMANUEL CELLER,

Chairman, House Judiciary Committee,

Old House Office Building, Washington, D.C.

DEAR MR. CELLER: I am writing to you with reference to the importance of the passing of H.R. 71 which is being sponsored by you in the House of Rep resentatives as an important bill for the American enterprise.

The financing institutions in this area are certainly well apprized of the importance of this proposed law, having recognized for many years the extreme unfair competition in the financing business as opposed to the GM-GMAC relationship.

We hope that all measures will be taken to proceed with the presentation and passing of this important legislation.

Yours very truly,

FRED D. THOMPSON, Vice President.

SAN FRANCISCO, CALIF., July 7, 1961.

EMANUEL CELLER,

Chairman, House Committee on the Judiciary,
House Office Building, Washington, D.C.:

Our attention has been directed to H.R. 71 and also to H.R. 7687 which expands the coverage of H.R. 71 to all manufacturers. We believe such legislation is unnecessary and would undesirably restrict freedom of competition. Also it would be detrimental to consumers in that it would prevent manufacturers from providing consumer financing in areas where such financing is not otherwise available. In California, where we are most active, the existence of companies such as GMAC and other captive finance companies has not restricted competition but has stimulated it. Insofar as the consumer is concerned, we know of no abuses by captive finance companies. They are subject to the same State legislation as other finance companies. Abuses by a captive finance company would tend to reflect on the product thus giving the company an additional incentive to avoid abuses. Our belief is that governmental control and interference should be avoided unless necessary to prevent abuses deterimental to the public. No such abuses appear in present situation.

BANK OF AMERICA NATIONAL TRUST & SAVINGS ASSOCIATION,
SAMUEL B. STEWART,

Executive Vice President and General Counsel.

Hon. WRIGHT PATMAN,

NATIONAL BANK OF DETROIT,
Detroit, Mich., July 27, 1961.

House Office Building,
Washington, D.C.

MY DEAR CONGRESSMAN: I note in the Congressional Record of July 17 that you express puzzlement as to why banks, banking associations, and the National Automobile Dealers Association have not been heard from in support of H.R. 71, which would prohibit General Motors and other automobile manufacturers from financing the sales of their automobiles.

As you must know by now, the National Automobile Dealers Association had submitted a statement in opposition to H.R. 71 prior to your July 1 address. As far as the banks are concerned, I think Congressman Meader accurately summed up their reaction when he reported they did not appear to consider the bill of immediate interest to them. I am impelled to write this letter because of the nature of your insinuations regarding the bank's silence, and your implied attack on the free enterprise system.

I was shocked at the cynicism implicit in your remark that you feel the banks should have joined in support of the bill because "it would help their business." It is probably true that adoption of H.R. 71 would result in an increase of the banks' share of this particular form of business. However, I have grave doubt that there would be any subtsantial benefit to banks in the long run. If the move resulted in a decrease in auto sales, as I think would be likely, the total effect would be harmful to banks as well as to the public at large.

As the leading bank in this automobile center, we have a large installment loan operation, the most important division of which is devoted to lending on automobiles. This includes loans made direct to car owners and automobile lien notes purchased direct from 331 new car dealers in the Detroit metropolitan area, including 118 dealers in General Motors cars. In this business we compete with no less than 6 finance companies operating on a national basis and 5 operating on a regional basis, as well as 18 banks and numerous other lending institutions.

We regard GMAC as a strong competitor, but a fair one. We feel that by providing a nationwide pool of credit, GMAC has held down the cost of auto financing for the average purchaser, and that the net result has been to enable more people to buy cars, to the benefit of labor, dealers, financial institutions, and the general economy.

From your remarks as printed in the Congressional Record, I gather that you believe the banks should be grateful to you and your colleagues for your efforts to prohibit automobile manufacturers from financing the sale of motor vehicles, and are puzzled at the banks' lack of gratitude.

I must admit that we would be happy to increase our portion of the automobile finance business. But we believe it is in our own interest-and in the interest of every American-that we achieve this through honorable competition rather than by special interest legislation.

Such an action by Congress would be no more constructive or desirable, we think, than if you were to legislate out of existence the bank across the street from us, the finance company down the block, and all the other organizations which vie with us to supply consumers with the means of enjoying the fruits of American production.

Sincerely yours,

Hon. LEONOR K. SULLIVAN,

House of Representatives, Washington, D.O.

D. F. VALLEY.

MERCANTILE TRUST Co.,
St. Louis, Mo., June 30, 1961.

DEAR LEONOR: We have been following with considerable interest the testimony before the Antitrust Subcommittee of the House Committee on the Judiciary relative to H.R. 71, which would prevent manufacturers of motor vehicles from financing and insuring the sales of their products.

While you know, in general at least, about the various lending activities of the Mercantile Trust Co. and its size and service to the community, nevertheless, it might not immediately occur to you what peculiar position we are in with respect to the proponents and opponents of this legislation. First, we are a major competitor of all finance companies and banks in the automobile financing

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