States Customs Appeals, and President Kennedy imposed a new tariff rate at 50% on foreign-made bicycles, a rate which remained in place until 1964. While every large bicycle manufacturer sponsored or participated in bicycle racing competition of some sort to keep up with the newest trends in technology, Schwinn had restricted its racing activities to events inside the United States, where Schwinn bicycles predominated. As a result, Schwinns became increasingly dated in both styling and technology. By 1957, the Paramount series, once a premier racing bicycle, had atrophied from a lack of attention and modernization. Aside from some new frame lug designs, the designs, methods and tooling were the same as had been used in the 1930s. After a crash-course in new frame-building techniques and derailleur technology, Schwinn introduced an updated Paramount with Reynolds 531 double-butted tubing, Nervex lugsets and bottom bracket shells, as well as Campagnolo derailleur dropouts. The Paramount continued as a limited production model, built in small numbers in a small apportioned area of the old Chicago assembly factory. The new frame and component technology incorporated in the Paramount largely failed to reach Schwinn's mass-market bicycle lines. In 1963 following the death of F. W. Schwinn, grandson Frank Valentine Schwinn took over management of the company. Marketing and antitrust issues By the late 1950s, Schwinn's exclusive marketing practices were well entrenched in the United States, practices that had ensured a dominant position in the United States bicycle market. In order to prevent competition among its wholesalers, Schwinn assisted them by dividing up the national market. Schwinn also strengthened its dealer network, shrinking the number of authorized dealers. Since Schwinn could decide who got their bikes and who didn't, the company rewarded the highest volume dealers with location exclusivity, as well as mandating service standards and layouts. In response, the company was sued by the Department of Justice in 1957 for restraint of trade. In a ten-year legal battle, many of Schwinn's practices were upheld by the courts: judges ruled they had the right to have their bicycles sold by retailers equipped to service the bikes as well as sell them. However, in a ruling by the Supreme Court of the United States in 1967, U.S. v. Arnold, Schwinn & Co., Schwinn was found guilty of restraint of trade by preventing distributors shipping bicycles to unapproved dealers. Though the Arnold decision would be essentially overturned in later rulings,