The

The legislative clerk read the amendment, as follows:

On page 58, line 17, strike out "reasonable". On page 58, line 17, insert "and such reasonable reimbursements immediately after "installations".

On page 58, line 18, strike out "(2)".

On page 57, lines 7 and 8, strike out "an increment of 2" and insert in lieu thereof "a reasonable reimbursement of not less than 1". On page 57, lines 19 and 20, strike out "an increment of 2" and insert in lieu thereof "a reasonable reimbursement of not less than

1".

Mr. MONRONEY. Mr. President, I have a small amendment, which I feel is not controversial. The bill provides that in the event a vehicle shall be found to be not in compliance with applicable safety standards, the manufacturer or distributor shall repair the equipment in order to protect the dealer, who would not be responsible for this condition.

The bill provides that the manufacturer shall reimburse the dealer or distributor all transportation charges, plus an increment of 2 percent a month of such price paid prorated from the date of notice of such nonconformance to the date of repurchase by the manufacturer or distributor. Also, in the event that the automobile is to be repaired and made safe, the manufacturer shall provide the parts, and the dealer shall receive 2 percent per month until the repairs have been made.

We asked the dealers and the manufacturers to check the cost carefully. They have agreed that they should have a reasonable charge of not less than 1 percent. In some instances this will not be sufficient to make the dealer whole.

Then they must negotiate the reasonableness of this amount. If that is not possible, my amendment provides that the reasonable value shall be fixed by the courts.

I believe that the committee will accept the amendment, because there is no objection to it on the part of the manufacturers or of the dealers, and it has no effect whatever on the safety features of the bill.

Mr. COTTON. Mr. President, will the Senator yield?

Mr. MONRONEY. I yield.

Mr. COTTON. I understand from the remarks of the Senator from Oklahoma that this provision, which deals so intimately with the relation between the manufacturers and the dealers, has been worked out and is reasonably satisfactory to both groups at this time, and it still adequately protects the public.

Mr. MONRONEY. I am informed that the dealers and the manufacturers are satisfied with the provision of not less than 1 percent at the present time. Some doubt exists as to the reasonableness of the 2-percent amount fixed by the committee when the bill was before it, and both groups are willing to agree to this amendment.

Mr. COTTON. I hope the amendment will be accepted.

The PRESIDING OFFICER (Mr. BREWSTER in the chair). Is all time yielded back?

Mr. MONRONEY. I yield back the remainder of my time.

Mr. MAGNUSON. I yield back the time under my control.

The PRESIDING OFFICER. All time is yielded back.

The question is on agreeing to the amendment of the Senator from Oklahoma.

The amendment was agreed to.