# Appendix — Brunswick Corp. v. Pueblo Bowl-O-Mat, Inc. > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385003_2160%3A06 ## Record - **Collection:** Supreme Court brief - **Document type:** Appendix - **Published:** January 1, 1977 - **Citation:** 429 U.S. 477 ## Text APPENDIX. Volume 5. Supreme Court of the United States October Term, 1975. No. 75-904 BRUNSWICK CORPORATION, Petitioner, v. PUEBLO BOWL-O-MAT, INC., BOWL-O-MAT PARAMUS OPERATIONS and HOLIDAY BOWL-O-MAT, INC., Respondents. On Writ of Certiorari to the United States Court of Appeals for the Third Circuit. PETITION FOR CERTIORARI FILED DECEMBER 24, 1975. CERTIORARI GRANTED FEBRUARY 23, 1976. International Printing Co., 711 So, 50th St., Phila., Pa. 19143 — Tel. (215) 727-8711 TABLE OF CONTENTS OF APPENDIX. Vol. 1 Page Relevant Docket Entries in the United States District Court for the District of New Jers gg Al Relevant Docket Entries in the United States Court of Appeals for the Third Circuit. A7 Z Al0 r = eee A29 Excerpts From Testimony: Daniel Parke Lieblich— r, KK .. A56 r eee 0 A81 Direct Examination (Continued) ................ A87 J od ncaneceueeeededeeeses A101 Direct Examination (Continued) ................ A103 J id cc denececcnseeesewens A116 Direct Examination (Continued) ................ Al21 J I cc cn ccccoeocserceveeess A272 Direct Examination (Continued) ................ A274 . 2 |. SE aSSRRES ERS ESS r peers srse pe A337 Direct Examination (Continued) ................ A341 Vol. 2 Page r lee A405 V o.oo nc oc canseeseuennesees A473 I ccccccccccececcccccccessesies A475 r A475 D, . dee enbed A483 William Edmund Kenney— rere 4490 ZET A516 Milton Mendelson— t A538 , ... ee A578 ̃* Examination ............ccccescsecess A593 TABLE OF CONTENTS OF APPENDIX (Continued). Vol. 2 Page rr. A605 Re-Cross- Examination A607 1 ccc csececcceseceseeeses A609 eg cc cccccccsscceseceneeess A610 Z To ccc cccccccscccccccceeess A611 Benjamin E. Bensinger (Deposition A612 1 A612 Rex Martin Golobic— i . . cvcedbeseeeereeecesseoe A652 D ˙ esse eee A681 John L. Hanigan (Deposition) ᷑ m wd. A684 JJ A684 Ruben A. Dankoff— r A8 A715 . fF 5 eRe rr rrr A755 Direct Examination (Continued) ................ A757 , ĩͤiů A760 D W 1166 A768 Porr 6 A782 John L. Hanigan (Deposition) (Resumed) ........... A784 Direct Examination (Continued) ................ A784 Milton Rudo (Deposition A795 Direct Examination A795 Vol. 3 Page Richard Davis— r ͤ QR... ͤ 00 A805 r ͥ Ü. ˙ m wu, A850 Re-Direct Examination A863 r —T—— Ä Ä Ä C C—̃ ᷣ˙—— A865 John A. Barron rt eee A871 Voir Dire Examination A879 Direct Examination (Continued) ................ A881 TABLE OF CONTENTS OF APPENDIX (Continued). Vol. 3 Page . gnc cv cccccccccccccsesesecs A882 Direct Examination (Continued) A884 WWU „„ b „ A886 Direct Examination (Continued) )) A892 rr cccccscccccccccccesss A893 Direct Examination (Continued) ) A902 J ono cc ccccccccccccccescees A903 Direct Examination (Continuedſ A905 Voir Dire Examination A906 Direct Examination (Continued) ) A908 J |. eee ener Te A912 Direct Examination (Continued) ................ A914 J I 0. ccc cccceccccccccescssces A914 Direct Examination (Continued) ................ A916 J ES onc ccc ccccccccccoesesesss A916 Direct Examination (Continued) ..............-. A917 J =... cc cccccccccccseccceces A926 Direct Examination (Continued) ................ A927 J gcc cccccccccccccssccess A933 Direct Examination (Continued) ..............-. A940 Voir Dire Examination A949 gg eee see eee 6660 A961 DDr cc ccc ccccccccsccccees 41014 Dr wc ccc ccc cccccccccccces A1018 Milton Rudo— JI 41019 r ¶ »⁰⸗T. A1138 Vol. 4 Page Cross-Examination (Continued- ) Al197 Bernard Rudo— J 1276 D es A307 r „0 A1325 TABLE OF CONTENTS OF APPENDIX (Continued). Kenneth Brooks Abernathy— . “Socvccecccnceesescsceesundunt A1325 r' ccc cccccccccccececes A1327 Joseph A. Rice-- D h A1328 Dr ek caneeneeuineveseus A1332 Re-Divect Emnmmimation .... ccc cccccccccccccccess A1355 PT UI... aeeeee eebeanaeie A1358 John L. Hanigan— r e A360 rt, . aseknued 41376 nne ccccccccccccscccccces A428 Z̃̃ ng ccc ccedccecesteseeescees A1432 Daniel Parke Lieblich (Recalled )— rr rene 41434 r A1446 r ²˙ im ·˙w-wẽ 600s 5see6unss0eseeeedie 41449 Summation on Behalf of Defendan t. 41450 Ie . . 451 1K———-» „ . 41543 Defendant's Motion for Directed Verdict or Verdicts at Close r e 41544 Defendant's Motion for Directed Verdict or Verdicts at Close ./ q 41545 District Court Judgment (May 23, 1973))))):; A1546 Motion of Defendant for Judgments Notwithstanding the Verdicts and in the Alternative for a New Trial ....... A1550 Opinion of the District Court (September 17, 1973) (Printed as Appendix B to Petition for Certiorari and Will Not Be Reprinted in the Appendix to the Briefs) District Court Order (October 1, 1973) .................. A1560 Defendant's Notice of Appeal (October 2, 1973) .......... 1562 Court of Appeals Opinion (August 14, 1974) ............. A1563 Court of Appeals Amended Judgment (September 5, 1974) .A1566 District Court Supplemental Order (September 17, 1974) . A567 TABLE OF CONTENTS OF APPENDIX (Continued). Defendant’s Notice of Appeal (September 26, 1974) ....... A1571 Opinion of the District Court (November 15, 1974 as amended November 25, 1974) (Printed as Appendix C to Petition for Certiorari and Will Not Be Reprinted in the Appendix to the Briefs ) Defendant’s Notice of Appeal (February 7, 1975) A1572 Court of Appeals Opinion (August 29, 1975) (Printed as Appendix A to Petition for Certiorari and Will Not Be Reprinted in the Appendix to the Briefs) Court of Appeals Judgment (August 29, 1975) 757 A1573 Vol. 5 Plaintiff's Exhibits. Page Drees ses s ese e esl 41574 reset sss rer tr rT ess ess A1575 ee PER gnc „„ 666666 „„ „„ 660 41577 C 1584 CCC A1587 Eo eee eee bee eee eee eee eee 41593 r „„ „„ „„ „„ „„ „„ A1598 ND, og cccccccccccevcsccsccecescscccocsessecsoeces A1599 TD. . ncccccebeusucsecceseuseecceseseseepseces A1601 hh TTTT TTT TTT „„ 60 A1602 I . eee eee eee s ses eds tees A1603 NN ggg eee eee esse ses s ese es eee A1604 ED Cn... eee se se ee eee tee ee ee e eee A1623 rere eee s esse ess s iT rts. A624 r „„ „„ 666 6 6 „ „ 6 66600 A625 An PIG 2... wc ccc „„ A1626 ee PU gg. cccccccccecvsccesvcccescecccescesocceses A1627 Bexhibit PET... ccc ccc ccc ccc ccccccescccresccscceceees A1628 Ser „„ „„ „6 A1632 ehh „„ „„ „„ „„ „„ „„ „„ A652 TABLE OF CONTENTS OF APPENDIX (Continued). Vol. 5 Page 00 ĩ—» ̃ ¶oùl!wÄÄ. sa! A661 1111%yyèẽ 41662 71111ſ%%%!õò 0 ˙⁰eĩR 1! A683 11111 w A1666 . cto) A1667 MEN N0LS66 sevedinaiatbidbbkbedise.ciesuucee. Jack A1668 7ܹͤ—ù2d ; A1669 sect npn sel OOO OE ͤ TS an A1671 AVT 1672 EME Snknsneinaneidipicadé pote saat ce ci sd A1673 EEE ncoessedduiddiekincokinticecedidadcu. ci niok A1674 DEEN Sibnunanumenwbideddded inert kt oe 41675 T ͤ AT— ³˙¹¹w u.ůʃ Al676 Vol. 6 Page %%%öͤöÜͤVVr ] ! A1683 %%% ũ ꝗ . . Ä ˙ ö A1700 OͤAT⅛f!! .... A1717 17 ³·⁰⸗AwA ]·¹wAͤ duʃ UN 41734 CCC A1735 CCC laa ideadss (Loum A1736 111% kwł th Ode tit. t Re A1737 npc pe cel OE EIEN EDTA es Tei aU A1738 % V OTE A A AME A1740 CCCCC11111TrTſyſyͤͥͥö;Bʃm. ͤ 1741 ;;³˙ i : cote 41742 17% ͤ dunes bt 41743 TT́ꝙTT—W hla) me 41744 7 A icc 41745 71ſTſyꝗ%äjßT A765 17 ³·˙A1] . ˙ A1766 2ͤ id.n) a A1776 „ . ss A1797 \ TABLE OF CONTENTS OF APPENDIX (Continued). Page D ̃ ¼ũ ———ö— — ATE RO me ey eee ON Aner NIE A1799 , a oa de A1800 ß ̃ TT.... De he A802 r ͤ— ] WM Ä. 7˙—r . A1835 , ̃ öÄoů—rr / A1836 , a el Set ok ee A1838 DE icciacescetGekscuadlcéuiae ces ead Senne A1839 RID i clan a gies eee he ue dace [he ee A1843 D reer mr nn OE ee Rr RT 41847 s ˙ a a ͤ — ˙ A850 ß ̃ ¾—.ʃ—ꝓÜ— .... Ce 41864 Vol. 7 Defendant's Exhibits. Page / T wee A1866 ß ̃ ...... Bee ae A1867 / ĩ ¼᷑ͤöüͤũj... ⅛—wG1ſi.... — aiol 4878 / wt... ̃%¾⅛ i;! A879 I hee pene ee ee ee eee eek ee eee A1880 . ͤd. Gahncieee dean ea A1881 r lr... EEN 41882 ff TTT A883 i ee ee ee ee ee eee ee A1884 ß Add ð hee REAMLenl A885 ae ia ake ae ce a cs A1886 ,, ne en Ek eee A1887 COMPUTATION OF PROPRIETOR'S INTEREST AND DEPRECIATION AND CASH NEED INTEREST Pinsetter Lane Price $8,100 $4,500 Down Payment 500 900 (202) Interest Factor 23% 14252 8\ 1,748 5 \513 yrs. yrs. 218 102 = $320 per year interest @ 6% DEPRECIATION Pinsetter $ 8,100 Lane 4,500 1 Carpet - Signs - Cash Regist Other 5 f en —— 2,400 Bar — Snack Bar - Intercom Safe - etc. $15,000 per lane $15,000 for 15 yrs = $1000 per lane per year CASH NEED Pinsetter. Lane Unpaid balance $ 7,600 $ 3,600 Interest 1,748 ae) 4 8 \9, 348 5 \4,113 2 461,168 re. $823 = $1,991 or $2,000 per lane * DEPRECIATION AND CHARCES FOR DETERMINATION OF NET INCOME BY BRUNSWICK BCOD CENTERS FOR PINSETTERS AND LANES AND BY BRUNSWICK'S CUSTOMERS BRUNSWICK'S CUSTOMERS Depreciation: Pinsetter $8,100 Lane 4,500 Other (carpet, signs, cash registers, bar, snack bar, intercom, safe, etc.) 2,400 $15,000 The composite useful life of this equipment is 15 years. Depreciation of $15,000 over 15 years equals $1,000 per year. Annual Depreciation $15,000 = 15 years. $1,000 per year Interest: Pinsetter $1,748 = $218 per year 8 yrs. Lane $ 513 = 102 per year 5 yrs. Total Annual Interest $1,320 per year Total Charges BRUNSWICK BCOD CENTERS Depreciation: $ 500 per year -O- per year $ 500 per year Interest Charged by Brunswick: Total Charges PL. EX. la (page 1) $ 320 per year Vid FEGEYUX] SZSLV CASH NEED FOR EACH LANE OPERATED BY BRUNSWICK BCOD CENTERS AND BY BRUNSWICK'S CUSTOMERS ORIGINA'. INVOICE — _ THE BRUNSWICK AUTOMATIC PINSETTER CORPORATION 4.4 623 SOUTH WABASH AVENUE BRUNSWICK'S CUSTOMERS gd F'9b4X3 Pinsetter Lane CHICAGO 5. ILLINOIS —— ene — „. „ concen — Sales Price $ 8,100 $ 4,500 66 20 22 Note Account Muskegon, Prepaid AP 6459 SOLD To: SHIP TO: Down Payment 500 900 Minneapolis Bowl-O-Mat, Inc. Same — 6/30/61 Apache Bowl-O-Mat Balance Due $ 7,600 $ 3,600 N. E. 37th Avenue & Silver Lake Road Minneapolis, Minnesota ness eave, 6/30/61. Interest 1,748 (237) 513 (14%7) Total Balance Due 8 yras 9,348 5 yrs. V 4,113 — A... + SeecaiPprion ans |S AMOUNT Annual Payment on 36 750000 BRUNSWICK AUTOMATIC PINSETTERS, B100.00| 36 291,600.00 Balance $ 1,168 823 INSTALLED for a total of $1,991 or $2,000 per lane LESS: Required Down Payment ; 18,000.00 273, 600,00 Finance Charge 62,928.00} Total Note 336,528. 00 BRUNSWICK BCOD CENTERS “ 4 — 2 Cash Need for equipment obligations — Set Brunswick 82 0 a 3 aly yu Sere i DL AX | Hay oe 2 CNN 2 | 3 3 . * PL. EX. 1A o> 5 (page 2) 2 i QP LLS\V ; 8 _, + April 3, 1962 101 JRE FROM; DP L . . RE; Minneapolis and Indianapolis A very — error was made in the computation of interest ia our lane contracts with Brunswick on each of these installations, My pricr understanding with Brunswick was that we would be charged 6% simple interest on the unpaid balance on our lane contracts, They tcld me some time ago that they computed this interest Waere we utilized a five year pay out (40 installments) by multiplying the unpaid balance by a factor of Qu: Indianapolis since the . principal balance was $140, 000 tre ) proper interest would be $19,450, Oey contract contains a present charge of $25,200, Thus there is an ever gomputation of interest of $5, 450, In the case of Minncapolis, where the unpaid balance was $136, 009 a correct interest charge would have bees $19, 360, Our present contract computes the interest at $24,480 an over payment of $5, 100, . I have just spoken with John Bartlett ct Brunswick in Chicago and he has agreed to correct those accounts to reflect the interest proporly computed, Please keep thie as a suspense item to make certain all is appre- priately accomplished, ald 210K 9481 — Marek 29, 1962 N aoe 3 Mr. Jchn Bartlett ner 9 ; “ “a ae 5353 2 Brenswick Corporation 5 621 Sc Wabash Aveme Chicago 3, Ilinois Rey Minneapolis Bowl-O-Mat, Inc, ‘Dear Achs , . 1 2 When I orcke with you last week while I was az Des Moinos, you said yes werd ca me in Patorsca trie Monday wita respect to the crap taticn cf (is interest charge in tale contract, Ve (WY) se ’ In the oummor ef 1950 I cecforred with you i Bill Bromor et y céfices in Catcago ond discussed a factor. K29 oleh woul] be ego in cor ler ccrtracts to sive us to 6% Harne charro ca (se ervsid belcree cf to centroct wicere we utiliced a forty instalimert psycut, Tie comp=cation was ctiliced ia the Pesislo Dowl-O-Mat purchase end it was my impression that it was being asod in Minceapolis as well, The prospectus that was publishod by Naticnal Dowl-O.)Mat Corporation in connectica with its public sale cf 229, 090 skares in April cf 1951 stated opccifically that its arrancements with Drunswick Corporatica oa the lane contracts included a 6% finarce charge. Ia view of euch stateo- ment, wa could not possibly pay more than 65, with respect to Minneapolis Bowl-O-Mat, since its purchase was contemplated by the prospectus, I shall appreciate it HI may hear from you by reply mail so that we may adjust the interest con:putation in this contract, | ) With all good wishes, ° , 8 Sincerely, NATIONAL BOWL-O-MAT MANAGEMENT CO, — . Daa Parke Lieblich - Gonsral Partnor DPL/es ö Je : . BEST COPY AVAILABLE G@id 2102 6ZSLV Buwaswick cosroeation CONT HAL cree gs tr. ** a April 24, 1962 AIR MAIL . 3 : SPECIAL DELIVERY ie: a . * a ~ Mr. Daniel Parke Lieblich 14. 0 National Bowl-O-Mat Management Company ~ 2 ° 152 Market Street 4 a 5 Paterson 1, New Jersey Y Dear Mr. Lieblich: 5 2 oo sae : . 0 ait * 0 ; : . - 3 4 . r e In reply to your letter of April 16, 1962 to Mr. J. Zartlett, please be advised that we heave altered the original finance charge of he bowling lane account #51037 Indianapolis Bowl-O-Mat, Inc.) to reflect an approximate simple 6Z interest charge or 1425 of\the original deferred balance, The original deferred balance of this account-waS $140,000,00. The finance charge at .1425 would be $19,950.00, or a to- tal note of $159,950.00, The payment schedule now reads $3998.75 each for forty equal installments, Since you have been making payments at the rate of $4130.00 per month, this change will have the net effect of prepaying a part of the April installment in the amount of $787.50. At this writing, we have not received the installmnent due April 1. 1962. The payment schedule will now read as follows: One at $3342.50, due April 1, 1962 Thirty-Three at $3998.75, commencing May 1, 1962 (excep- ting the months of June, July, August, and September) It has been brought to my attention also that a modernization account for Indian- apolis Bowl-O-Mat, namely account #61077, for refreshment tables and bowling chairs is pact dua, Payments in the amount of $189.60 each, numbering five, were to have cocnanced February 1, 1962, At this writing, three payments, or $568.50, are past ; due. I dave understood, through Mr. k. J. Zagone, and confirced through cy telephone convorretion of Monday, April 23, with Mr. Julian Goldstein, that uc extension pe- pera for Minneapolis Bowl-O-Mat, reflecting the sc change as ccntioned above for Indianapolis Bowl-O-Mat, bave been received at your office. We would appreciate ald 2'9b4X3 S72 ROUTH AAAS AVENUE CHmECAUYW % tLEES OES. U &,.4.' @mEveter © 3000 0881 * 8 8 IT we April 24, 1962 Mr. Daniel Parke Lieblich -2- National Bowl-O-Mat Management Company . Paterson 1, New Jersey 3 4 : Should you have any further questions, please call me. - . your co-operation io sible. executing these documents and returt lug them 4s soen 4s pos Thank you * Very truly yours, BRUNSWICK CORPORATION s. A. Rice . gional Collection Manager 91d 240K L8SLV | . — ; 28 oe * 8 * * 4 . a * — * i . am, * Buuaswick coaroaation * 4 * : = * , enue ’ ‘ ; . ‘ta se © ’ „ 5 0 SG | Or. 6’ @ Geshe ee 8 — AIP MAIL srrcial ura VV is , : _ April 26, 1962 1 .- . Mr. Yaniel Parke Liebliech 8 ue c tonal Bowl-O-Mat Management Company — . .% * 152 Market Ste. a* 9 « Paterson 1, New Jersey ‘ — ö Dear Mr. Liebliech: Ca Ae os * N : 2 I understand from Mr. J.M. Bartlett that you wish to pay the installments due on Minneapolis Bowl-O-Mat under the revised schedule of a 144% finance charge. Accordingly, setforth below are the revised figures. NY Deferred: balancttrk3ÿñ $136,000.00 Y 0 1447 Finance Charge ‚—U p 1½ a—aq— 2 12,289. 09 0 51 $155,380.00 1 ve — Payment schedule: 0 at $3884.50 ° Payments due 10/15/61 through 4/15/62 $ 27,191.50 Interest accrued through May 1, 1962 __ 475.85 Total amount due * 27. 7,667.35 We would appreciate it if you would give this account and the five payment note referred to in my letter of April 24th for Indianapolis Bowl-O-Mat your preferred attention. Thank you. ; : Very truly yours, BRUNSWICK CORPORATION * ‘ : * ‘ 1 os. 4 ce j 4 0 Regional Collection Manager JAR/al a N vf A ; - ‘ m 0 = * * 2 0 5 > N J f 26 2 ate ware. “th Le eee 2. 41900 * * * 7 . — = | wo 2881 9 ts 2 * 2 = SUMMARY OF BRUNSWICK! S COMPUTATION ON PUEBLO BOWL-O-MAT, INC, * . ° 0 ° N . ‘ g 0 898 2; ° — . . . — . Baste Lanes 3752, 096, 08 Elective Equipment & : ~~ Supplies 71, 312,42 ee, 4m i> os Drillis uiprnent . 4 . 3 2, 160. 65 a a _ Components : Total $165, 569,15 $38, 000, 00 Tools . N 122. 50 * 2, 230. 00 3, 000. 00 Grand Total ----- $208, 941, 65 18% down ͤ—— — — 3 31. sl, 29 Balance — — $177, 600, 40 5 year interest charge based at rate of .1425-}----- 3 25, 308, 06 06 m Total time balan 2 $202, 908, 46 a . . c= * The time balance of $202, 908, 46 is payable in 40 installments, each in — a o the armount of $5, 072. 71. i yer ; ODSFOIA eg. a Hoeveves ; I - AUTOMATIC PINSETTER CRDERS. . : 83-310 * ve. nee ad 4 ; 2 — 1 1 ° — ; ine | © 2 9 Y 4, ~ Saas | US? Gender 9 59 — — 52 — — e >, ao 2 47. — — — ° + +8. dz trO zu OPIRATIDG recess: 2 7 or A , 22 N , Iron PINSESITER ORDERS - g™, 2” 3-370 xemple 9. Totel Selling Price 0 — — weten 6417 R = 10 d£utomatic Pinsetters N , 98 — — N YO? undes 7 [eres Tax at 33 : $83,430.00 3 ; * * | a ä . Down Payment: .- went Ufc 8 becd ive 1. The objective of this procedure is to outline tne Reo td Sa vn) eae re oe . 7 reguirements for Automatic Pinsetter Orcers insofi> . Cash with order . 2s freight and drayege, cash payment, trade-in, | o : bd. . Monthly Minimim vewments - Cuarenteed Sent zz? since 3 70 1 — Ds Will ds 522 5. 00 per meachnins escn gon 8 7 2 i BEST COPY AVAILABLE the pericé Octoder trou say enc $56.CO 22222222 0 23 ae, m q each month during the pericd June thru Sepvercer. * 8 | 2. oy r. 2 0 a . : . w= REV: 715/38 |... ö 72 ‘ ——— „ 2˖ — 2 0 2 „* a „ 50 8 ws — Stile lI t lac lhl els 22227021 * * 5. whos . UAEFORN OPERATIOS seeds: 4 AUTOMATIC PINS=STTER ORDERS . ° ; vo leader ebe RB-210 Covern- ment and Saducetional Institution Discounts ‘ 10/1/5 10 > Wee 10. 11. e2llcwed to all educetions1 institutions proviéing 4 107 discount will be allowed to all government ‘agencies (Local, State and Federal) on Autoga tie Finsetter Orders. This seo mi will also be ati — the institution undertaxes the oblig ax n or opera sg the elleys. Uncer this policy, the "10% Giscount wiil apply only to the equipment purchased and not to freight, mechanic's expense, etc. No additional csn ' @iscounts nor trade-in 2llowence will be allowed ox pinsetter equipment. 4 2% cash discount will be allowed from the az Sound or net sale on all Automatic Ansetter sales zien a> peid for Within the regular discount period, with the excention of „overrgent and educational instivuvions receiving the 10% discount discussed in reer ~0. This discount Will also apply to 411 sales paid f prior to delivery. The net sale shall consist of only the equipment portion of the contract inclucins installation. This excludes taxes, freight, mechzuic’ expense, eto. ‘ ee . . * — ow — * “3 g * . n . . — => 8 * 2 ps a Oe —_— c— . — 08 * . oa wv ~ 5 N — qu” he pare Lbs C “us 2 28 — 3 22 ae: i a ; ee 9 2 7 : 6 FED. COURT FP . J . „ : \ 2 REPORTERS 775 gta St te: i | * 7 7 Vv N. 90 J. ** * — 52 P 2 * i N r *. „ 2 7 . 2 2 7 F 9 - * N l . F. ; eed ter, | ae * . ® 224 “ae A. „ 2 5 2 AR“A #ANALYSIS . , ie 0 4 est 2 49 712 5 . 2. , te4 € G- ad * 7. N 1 N 1 re “HE * ‘ 25 1 hy 1 1 5 3 rueblo, Colorado . r yy etna: rusble County, Colorudo | * ’ — e 5 6 0 ‘ * I xs # 0% ‘ 985 et had oe 12 And : . „* * 1 2 2. — * 8 175 „5 N.. ** ; "= @ is ST ell FFF pe As 7 ity * 7 5 6 . Z 25 — a 8 , : “a . aks 1 r.. eee. : 7 — 2 ˙ et ! : “a - * * ~ . ~ * * Fe. 0 2 2 ‘ 5 10 * a 2 1 é 78. 81. N * is 2 . 1 * 2 1 3 3 ° ‘A we “quae, * “> 2 ä 7 7 * 7 den. N 45 % Na ee e eee 5 8 „ EMSs 9 REE Scars, wale be ee 1 : * — 1 * N 22 e : J . * a . 4 * * 22 1 Se o> ~. ry 2 2 7 * 7 ot > ö . * ‘ Ovid 3. ai n og „: bs . 15 11 t 2 . t * Sad of ' * 7 4 * * ae 5 | N is 8 9 Rets 7 4 214. W. ‘ ; J j P j . . 2 842 3 * . . eee Si , ¢ N Fe + . ett : At. x 7 * * N 85 4 2° id ; 2 8 5 . * ‘ oe? — a . * a+ 7 r . 7 52.8 + . ae nr ee 0 * 5 « ° tr? mt: da — — — — ‘ = F 7 . — * * 22 , rh 82 205 . 0 ? oe © : 1 * 1 ; 9 4S * 28 14 1 * 3 * 1 8 ‘| A. 1. ie 15 ss a ; 1 Dir etl ane, eel Se Se Pee . ob te ae id 1144 * 22 * 221 KN ° @ : Se 1 ‘ * Be, 3 Ve 7 5 = 122 15 * ‘oe i + | , 1 * tyr. i 5 5 2 * ” 3 . * * 28 * 5 . i — 1 . — 1 see * .. sme; a . ** 7 : _ . * 5 g 2 % . ; 3° r hie Analysis Prepared h D bg a * * 2 = ** * * * ® TERCE - -£ a=. & * 1 : : 4 tee * 5 H. H. P . 75 8 oy a , : — * * . Real Estate Specialist | F , , BRUNSWICK CORPORATION ‘«-°. - n een. 1 — Y, 16th Avenue et sgt: | 15. Colorado > oor ope 1 2 ‘ ‘ : * 5 a-° ö 5 * 1. „ A. 3 ‘ 7 “ % R > 2 Mais be, . 2. % Boe. ; a 772,8 8 K. 1 4 ‘ * itr PRET. woke ee 7 fk — ‘ * 7 > 3 4 ts Ss . 25 * f 1 5 1 9 5 95 * 1. 4 dh * E. . 20 3 i, * . ‘ ‘ ¢ . : W. . a * 278. ; ° > - 6 Ss * RS N Next * * . : te as 34 22 g Ed 21 tu rz 4881 SCOPE OF SURVEY The area covered by thie survey includes Pueblo, Coloredo and Pueblo County, Colorado, located at the foot of the eastern slore of the Rocky Mountains in outheastern Colorado. Pueblo is a quick access to the mountain playsrounds of Colorado. The city is 114 miles south of Denver and serviced by U. 8. Highways 85-87 North and South, and U.S, Highway 50 East and Vest. Pueblo County has a gradual eastern slope of 10 feet to the mile from the high plains of Colorado. The City itself is lo cated at the confluence of the Arkansas and Fountain Rivers in the fertile Arkansas Valley. Pueblo County covers 2414.2 square ‘miles and the City covers over 18 square miles. Geographic description: 38°15' North, lonzitude 104°40' west. Altitude io 4690 Feet. i 5 — Ed 2 grun 8881 TABLE OF CONTENTS - — . contre STRUCTURE : . AGRICULTURE AND INDUSTRY ~\ POPULATION | NEED FOR ADDITIONAL’ BOWLING CENTER ** BELMONT GUBDIVISION AND ITS ACCESSIBILITY m ~~ — — — ct wo Ww — — uo O FOR ADDITIONAL BOWLING CENTER The exictins bowling establishments in Pueblo do not come close to filling the need in this City. Of the four bowling centers in the City, consisting of 94 lanes, only about 40 of these lanes would be considered ourrent in respect to desired service. Enumerating: PARK LANE - 10 alleys Street parking, obsolete, assorted equipment, and e facilities ‘ PAYBES LANES 12 Alleys Street parking, steel mill area, assorted equipment, overall operation not up to current desired gtandards rid * -> * BOWLERO LANES - 32 Alleys + “Difficult to see from anywhere other than ime- diate entrance. 25 winding steps underground which is not popular. 16 lanes beck to back with center island. This deal is built on a 7. former river bed and requires the use of water * punpe continuously. These facilities can be 2 * considered barely adequate but certainly not * | outstanding. 0 fOVL-OAUT 40 Alleys d This bowling center is the only one in the area to be considered as a current, adequate, desired type of operation. There is plenty of parking and all new modorn facilities. It 1% easily aco cegsible, visible, ground floor and a modern recreation center. ; : ‘These comments make it obvious of tho need and demand for more new modern bowling facilities in Pueblo, Ed F49b4X3 0681 q BELMONT SUBDIVISION AND ITS ACCESSIBILITY® Belmont area of Puoblo is 2.5 miles northeast from tho mid-down- town seotion of the City. It is easily accessible north and south by U. S. Highway 85-87, 2 four-lane freeway. Fast and west it is serviced by U. 3. Highway 50, on which it is located, and Forthern Avenue from south Pueblo and 4th Avenue from central Fueblo. Northern Avenue ande4th Avenue join the Freeway. The Belmont vection of Pueblo is ono of the newer sootions, and 16 adjacent to the million dollar Continental Fueblo Hotel. The gen- eral trend in building has been to this area and i: considered to have the greatest growth potential. There are presently between 6000 and 7000 people in this area consisting of workers from the Pueblo Ordnance Depot, Colorado State Hospital, downtown businesses, and upper echelon at Colorado Fuel. & Iron Corporation. Developers advise us of the construction of 200-more homes in the area this year. There is presently a large modern shopping center in con junction with this section. Every aspect of Belmont makes it desirable for a bowling center of the newest and modern decor. Distance from Belmont to existing bowling centers: PARK LANE — 2.3 miles K BOWLERO LANES — 2.8 miles PAYNES LANES — 3.8 miles . BOWL-O-UAT — 5.7 miles #-Accompanying map Ed 49443 L6SLV This analysis has been prepared on a completely objective basis, and each proposed operation is judged solely on its own merits, For 113 years Brunswick Corporation has been instrumental in the planning and building of thousands of recreation centers throuch- out the world. This experience well qualifies us for ju’ ing the merit of such an operation as proposed. Our diligence i —— stant ly exerted to keeping the bowling industry prooperous. The vol fare of the proprietor is as nuch a faotor to success as is our own. ‘ It would only be prudent to assume from the foregoing text that ö Pueblo can accommodate 50 more lanes of modern styling, combining _ the utmost comfort and convenience that the bowling business can offer. “The economic structure is sound and stable; agriculture is a main- stay, and industry is expanding, Ths population has inoreased constantly for years and every indi- cation points to more inoreases. The bowling population is also increasing yearly es more people join the ranks of weekly parti- cipants. This is stimulated by more and better facilities for people to take advantage of. Competition is limited in the Pueblo area by virtue of limited, modern facilities. | In-conclusion, considering all the facts as I have found them, it is my reocomméndation to build a new bowling center in this ares. d4ith proper management, such an installation should prove to be a profitable investment for the proprietor and ?runswick Corporation, now and for many years to come. ole Ed F494] 2681 WA \ em col.” 7 2 * AREA ANALYS18 / 2—. 51 1146. i cer tr E COL D — Pupblo is located 114 miles south of Denver, Colorado and 44 miles south of Colorado Springs, Colorado, on Highways 85 and 87, now a four-lane froeway between Pueblo and Denver. Puoblo County covers an area of 3,414 square miles and the city of Pusblo itsolf covers 17 square milos. Current estimates place the metropolitan population of Puoblo in excess of 110,000, U. 3. Consus figures for 1050 show a metropolitan population of 73,247, bowever, since that time Puoblo bas annexed 3,722 acres. During this same period building permits have been issued for the construction of 5,127 | new homes in the city mits; 626 now homes were construded in 1956, according to a 1957 survey made by the U.8, Post Office Dopartinent, mail is now being 5 delivered to 103, 653 residonts in the city. The Rotall Trade Area has a popu- lation of over 200,000, and the Wholesale Trade Area population exceeds 600,000. * . The State of Colorado is o oeritencing & — in population. Conservative cstimates place the population increase at $00 persons her week. The United states Poot Office at Pueblo reports Puoblo's metropolitan population, since 1950, bas grown steadily at an average of 5, 000 persous annually. Based on this trond, Puoblo should a aR | EX LT m ** — Unlike many Colorado citics, Pueblo doos not dopond on the tourist businoss for ita = > ° ~ ou economy. The buying power of Pusblo’s population is stcady throughtut the year, 28 2 ~ N ‘ x. = * * 18 1 at r m nent Total = 40,000 Manuiacturing 0 10, 500 Coastrucuon * 2,000 Transportation, Communloatioa & Public Utilides * ’ 5. 000 whobo sale and Rotail Trade 2 6, 900 Financo, Insurance and Real ESstas 1, 000 Servico ; 6,200 Government 5 7. 000 Agriculture * _ 8,400 All Other 5 15 000 -Oocupationally, these workers are emplayed ss follows: Profossional and Managerial 10 BSomi-Sidllod Clerical and Sales -- 11 | Un-Skilled Service . g 117 Acrioultural Sdilod ” „ „ Nunigtpal, 7 1 > U ye 8 2 „„ Sa 1 , ‘ Softball Diamonds 7 , ‘+ > Basketball Courts o — Golf Courses i : Picuis Arcas ‘6 = Tennis Courts 1 N Lj „%% Private, * 7 a * neg ft * * doll Courses eh ‘" ** Bwimming Pools 3 . . Ridicg otablos ce *. Roller Skating Rinks * * Bowling Lanes _ 8 (10 lane bouse) x 3 ‘ 5 (12 lane house) : Me Se “Es (32 lane house) : | “oy , ‘ * w “at vd 11810 v6slvV ati aupacl 1 Stadium 12,259 1 Bascball Park 5. 100 1 Municipal Auditorium 1,963 7 Motion Picture Theatres 4 Drive-In Theatres N Tho existing ten-lano house Is located on North Main Street and hae no parking odor than etroct parking. This opcration is doing the best it can with obsoloto oquipment and {nadoquate facilities, The existing twelve-lano house is located in the stcel mill arca and is also housed in an old building with nothing but stroet parking. Tuo facilitics hore - are also inadequate and do not measure up to current idoas regarding service, accomo= > dations, etc.. The 32 lano house is located in tho basement of tho now Sears Shopping Contor. DEQ eS with 16 lanos on each sido of tho — concourse. This installation is new and has only beon open for businass cinco February, 1959, The facilities can be considored as adoquate only, and not outatanding. Lolow ground level installations are not popular, and in some instances are to be avoldod. in Puoblo we have a ratio of ons alley bod por approximately 2,400 pooplo. Compared f with the accopted national ratio cf one bed por every 1,000 people, it becomos immo- diately apparent that thore is a definite need for more bowling facilities in this arca. ' Rocontly the Business Research Corporation of Chicago was commisstoncd by tho MacGregor Sports Products, Inc. to survey tho bowing business and its potential mtionally, u was dotormlnod by the Research Corporation ta 1957 that there wore 22,000,000 bowlurs in the United States and prodicated on thoir survey, — a participation of 28,000,000 bowlers by tho yoar 1000. Following you will find a projoctica of 1 71 vd 210 tux z S6SLV population increase made by this orgnalzation: 2 1050 188, 200, 000 „. 181, 000,090 5 1000 * 1170, 400, 000 _ 1903 . : 1093, 300, 000 1 5 3 209, 400, 000 Numbor of families with Incomes above ——- ver year. 1040 1:0. 00, 000 1956 238, 800, 000 (50% 1966 41,400,000 (45%) estimate Tho future potential in the sport of bowling sppears will follow the projectod future ocouony best expressed In the rase © "more people, with mere time, and more money", Tho population is increasing at the rate af almost 3,000,000 per yoar with projected accoleration im the futuro. To this may be addod the increase of leisure time, Tho 40 hour work week is today a rvality, and many places are on « 37-1/2 hour work . wek, It Is prodicted that by 1966 the $3 hour work wock will be within the realm cf : possibility, The factors, population growth, increased income and more Icisure time each provide an impact for the future recreational facilities of which bowling is a Pant. A primo factor is deciding the advisability of establishing a new entorprigo in any ſleld is predicated on tho need for that product or sorvice, Today, moro than any othor time, | i history, pecple demand and oxpect convenience, comfort and beauty, which only a ' modern business can offor, The bowling business is no exception, Bowling today is the | greatest individual participation sport in existence, and new bowlers are boing added | yearly at the rate of a million or more, Bowling has invaded the tolevised athlotic ovent ficld, to the extent that millions of people each week watch top bowling stars compote against each cther with thousands of dollars at stake, Brunswick is proud to have boon Vd EGEUXS 96SLV tho originator of the first tolevisod national bowling show "Champloaship Bowling", which das boon on television sorecns for some four yoars. Dowling proprictors all _ tio United States have loudly acclaimod this television show as having boon a strong forco in bolping to incroase their businoss. ern | ; ea . + ; = oe 2 . ; . . Tuo public today demands and eta comfort, convenicnce and styling which only a. | ~ modorn business can offor. The tndividual oF groups who invest in the bowling businoos havo found tho same to be true of this businoss, Therefore, u is necossary that any. . installation contemplated be the most modern in styling and equipment, The bowling propriotors who combine ths most modorn and comfortable surroundings and outstanding ’ gervices will have the establishment most desired by bowlers, * * — There is ouly one couclusion that can bo drawn from tho facta as presented in this analysis - a definite nood for additional bowling facilitiss, The area as analyzed will support up to 100 lanos at the prosent time, Presuming that future growth in tho arca keops pace _ with present growth, it is quite apparont that there will be an additional need for bowling „* . g * 5 11 7 4 = 2 25 ‘ and recreational f andes again in the ＋ D „nie, 3 34 f . 2 16 bee's! l 3 1 W 1 * e 27 „ ae “ea i > = oo 4.4 — * — * ata > * „ . @ — ten are . 4 25 aes , 1 W 2 . * 75 K* i 77 ’ * r * 5 7 ° > 2 al 4 =. mh “4 1. wre 6060 C2 & . 5. 5 „ 4 1 ees cae „ 1 3 = 2 2 N * — 7 77 „ * oe . — 2 * N 6 ” 4 . oe 0 _ 2 — — 32 7 75 Pasa 25 3. 0. callahan * . F n e r Salos Engincor ee eee — * Drinsvick-Dallo-Collender Compan => — a : 1 — aS P ’ 5 és g + 9 2 L6SLV 3 + = =the eed a a = — == =i) i” BOWL-O-hiAT » 40-B 7 Ei a 1 — 0 1285 N r > U 1 * cae aN — Eas = . \ cond les 12 1 V —— 1 — * "WS 8 N — ae er — | => 2 8 xe DA 2 N 7 ' N. J -_— PS 8 A1598 wy Exhibit 58 = / 2 | BELMONT — LANES -245B — pus — tr Wo * i 7 3 a — ee? } wt ) — 2 828 — — * 2 * ) N i STREET Map . PAYINES LANES = { i” ZANE POLEKO by 21% ma , 2 pA tye * 0 , - Rie PINSPOTTERS Wie. \ A SUBSIDIARY OF AMERICAN MACHINE & FOUNOD2Y COMPANY Westbury, Long Island, New York + EDgewood 3-6500 May 31, 1961 Ur. Daniel Parke Lieblich 152 Market Street * Paterson, N. J. Dear Mr, Liebl ich: Following your telephone call about ten days ago, I investigated the matter of proposed new bowling facilities in Pueble, Colorado, Our Denver office has advised me that there is a total population of approximately 90,000 being served by a total of 94 bowling lanes which includes your new 40 lane Bowl-O-Nat and a 24 lane house installed not too long ago by our company, It is my understanding that the Pueblo area population contains 25,000 people of extremely poor financial means and that the steel industry in Pueblo is operating at about 60% capacity. These facts alone would convince us that new bowling facilities for Pueblo are not justified, On the basis of those facts we cannot entertain additional new bowling lane business in the area at this time, I am told there is activity in the area now to install 24 lanes on the east side of town and further that the proposed operators have indicated a preference for competitive equipment, In order to protect your investment in the area you may want to contact the other supplier of equipment in order to determine their feelings in the matter, In any event, Nr, Lieblich, you may be assured that we do not consider Pueblo as a justifiable site for a new bowling center instaliation at this time. Thank you for contacting us and please feel free to call on us at any time we may be of assistance, With kindest personal regards, I am Sincerely yours, “jt r 72 A. Ze (Ors. J 6. Lindsay-Crum / | Asst. to Vice President-Sales n : GLC: oek „ EX 4 e y 4 ; ~ 8 » 0 9d 24 tun 6681 ee Nr ee Se ae ee XQ — * . * 1 J, — — / ' 9 at — ee ie car et coucsidvtaticn of dil (ie PAs La VCIV eu ; : ws : 4 ; 1 99 se isthe sel- lecaéloa tis) tou eln d la your — " „ #4 ~~ , » ? 14 * lertur of dy 29, Hong 2.60 gan dente : inst ai Tr ks g@oatruct 14 eudbwnbuice CO Puasa. ab sade BO . 1 W - — — ae 4 0 0 2 3 > ‘er vuo,retad, Che rau fer tule eee! t * ‘oul tus geen uy im eee er nee an 2 tite 28 1 : ‘thy sel 2. eas at tide (Kao. W 0 — Na AA i eandy ran of J ian 1 NN Gr \e 8 : .o centrastk HAs Baie Ge — | aoe 8 1 1 7 „ 7 54 Ante vy | l 2 * „eee. ner. bbs | wy iS 1 4460 N 1 5 — — * — * 1 dae se Ars Cen Mert ead cute? Ca eu. aoaei — — — —— — — — — BEST COPY AVAILABLE | 94 2184073 009Ly K 2 4 % ˙*»»»»:ĩñ Pf 4 er ee — 24 Lanes & % 6/5/62 Contract price Cash payment Deferred balance Finance charge Note Payment schedule Payment Record It appears that on 10/19/62 ae % 2 — ere Mug. COLORADO 183. 1149. 4) _ Bs. Lisy „Joes co — 90, 7 405,765 .\v 64 @ $6340.08 beginning 10/15/62 $1,000 was paid 1,000 was paid 1/10/63 » bbye. 02 r. fm 14 0 0 “be pt 2 &bty, « Contract was then rewritten sometime in Spring ? of 1964 with principal of § 334,523 Interest of _ 120,428 , $ 454,951 64 payments @ $7,109 commencing on 10/15/64, Payments made: 1/15/65 $300.00 rn * mn PLAIN Vines | al — 82 — 2 8 fal “ © „ YO / * — ao | —— Lineage per lane Operating Cash Income Interest Depreciation Organization Expense Income (Lose) Me ee ieee 9/9/04 = 8/91/85 53,815 33,484 51,260 2,034 (33,763) (25,3% (3,637) (40,967) (54,156) (75,916) (62,187) (61,697) (87,798) (50,093) (27,707) (17,302) (, 9,897 34 , 466 17,162 39,629 2,634 (13,307) 39,930 2,834 9,794 25,274 24,110 39,298 2,633 PUEBLO BOWL-O-MAT, INC. 16,182 Mee le ieee eee ieee een een «TOTAL 8,540 8,4% ę 7% 7,986 7% 98,0% 9,143 6.550 13,03 12,459 15,038 25,472 41,527 92,920 32,800 56, 100 540,33 3,07 3,2 33,439 23,140 39,559 39,590 39,743 39,749 39,960 40,356 40,440 A1602 Exhibit P8 EXO PUEBLO OML.-O-MAT 1965 * 1966 1 4967 1 1968 * 1969 Bowling $168,779 $157,068 $159,922 $150,210 $144,576 Shoe Rental 3,459 22 3,51, „ 3,325 @ 3,506 @ 3,445 Snack Bar 21,494 In 19,456 139% 25,943 16% 29,035 19% 27,791 Rar 44,704 26% 25,007 16% 24,410 15% 29,073 19% 27,194 Pro Shop 4,744 24 6,04 4% 5,777 K 4,052 M 3,352 Mach, 4 Mien. 5,196 32 6,192 48 1209 4% $248,776 $218,408 $226,586 $222,108 $214,344 Net Income I after cost of goods and labor! Bar Snack Bar Pro Shop 1972 551 211 37% 1971 54 201 161 1970 441 171 (30%) 1969 _ om 16% (30%) 1968 301 171 171 1967 , * 18% 111 1966 32% 0 42% 1965 ous 11 2 Total M25 122% 100% Right Year Aver. 4a 15% in Pop each adddttonal $1,000 of Bowling Revenue, net income increases! Bowling $1,000 @ 92 = § 900, Shoe Rental @e ne. 0 ¢ Oe 27. Snack Bar @ 22% * 200 @ ist 0. Bar @ 252% * 230 @ 40 * 1086, Pro Shop 9 ue 30 @ im * 4. Mach. 4 Mise, @ 4% * 40 @ 100k ͤ ». mh $171,098 6,950 4% 46,097 26% 64,465 30% 6,065 4% 6X 10,106 “7% _ 8,498 98 1 m $154 ,999 22 4,036 19% 96,972 1 4,24 1 3,672 $252,777 $307,513 un 1 EAabt Year Total $190,972 a $324,363 1603 Exhibit P9 $1,298,364 37,022 M 253,488 20% 323,748 25% 44,670 M $2,014,955 Ml — ~~ = — — — — REPORTING DATE: MARCH 29, 1965 Francis Olrector Management Services er, 2 * ** 1 * 2 1 „ — . 4 Manager - Management Services EVALUATION REPORT # 76 EVALUATION REPORT # 76 2 2M) | | 1 5 10 N a . * * LEMAR, INC, | 2 5 POUGHKEEPSIE, NEW YORK LEMAA, ' POUGHKEEPSIE, NEW ye . 1 Old 11d u rz 5 . e | E FILE COPY | Old 344984" eln — — — —— — CRITERIA CHECKLIST FOR BCOD OPERATING POLICIES , wane OF ESTABL1 SHMENT LEMAR, INC. CITY AND STATE POUGHKEEPSIE, NEW YORK EVALUATION NO. . DATE OF EVALUATION 3/29/65 ° BCOD INTEREST __X_YES NO x 1. Evaluated site is 16 lanes or more. 26 N (NUMBER OF LANES) x 2. Market drea.will generate sufficient lineage to be profitable. 780 to } ' ; . (RATION PER LANE) * 3. Evaluated site will generate a cash flow the first year of: , A. Positive Cash Flow §$ 28 389 - 8B. Negative Cash rio 3 — 4, Evaluated site will generate cumulative cash flow within 24 months after take- over of $ 62°895 > . 0 5. Negative cash flow In the first year does not exceed 81, 000 per lane. Negative - cash flow, per lane, In the first year is 8 — 4 6. Evaluated site will generate a profit la tite third’ year of $___ 29,293: 7. Lease for land and bullding does not exceed 34 months and contains an additional 10-year option and one or more S-year options. Evaluated site lease Is for 2 months with options of 2 years, 10 years, and 5 years. x 8. In the event of a sale to a third party, lease contains provisions to release Brunswick from lease obligations beyond the 34th month, x 9. Lease does not provide an element of profit on the Investment to the lessor. Lease Is restricted to a net amount of 5700-51 , 200 per lane. Evaluated site Is for $ 1,000 per lane. N/A lo. If not restricted, the long-term lease provides a 20% return on the 0 inves tnen t. X 1. Obligations for chattels are restricted to the lowest negotiable price not to exceed $1,000 per lane and if possible, do not require any cash outlay to obtain previously developed equity. ‘ Xx 12. No commitment has been made to an obligation for purchase or lease without copies of the legal documents or written representations as to the contents being furnished by contracting party. THE FOLLOWING COMPARISONS REFLECT COMPUTATIONS PRIOR TO ANY TAX ADJUSTMENTS: „ 6s „ BCOD CASH FLOW PROJECTIONS 1 859.395 801, 156 906. 765 ; COST OF PHYSICAL REMOVAL 4 22, 360 5 5 MeERIM LEASE REVENUE N 2 24,708 26,952 28,080 ,AYMENTS ON AN 8-YEAR CONTRACT 32,87 65,748 98.622 ORIGINAL SCHEDULED PAYHENTS 153.680 43 ,680 43 ,680 Old F4944X3 909LV . EVALUATION #76 This evaluation has been reviewed by the member of the Operations’ Section whose signature appears below: . COMMENTS : . June 18, 1965 I feel that this location will need considerable work-as it has been mismanaged ever since it was rebuilt in 1961. The physical plan is not the most ideal, but 1 think that this is offset by the fact that it has more walk-in business than most of its competitors. The rapid growth of the surrounding area as well as the change in _ road pattern definitely indicates that we should make an attempt to operate this location. m — — — > 9222 — oO * — — oO CONTENTS: APPENDIX SECTION: 1. 11. 111. C. ECONOMY EVALUATION #76 LEMAR, INC, POUGHKEEPSIE, NEW YORK BACKGROUND CONCLUSIONS AND RECOMMENDATIONS A. MARKET . OPERATION - d. COMPETI TION : E. PHYSICAL PLANT _ r. SITE ANALYSIS | 8. LEASE FINANCIAL ANALYSIS MANAGEMENT AND OPERATIONS ANALYSIS MARKET AND SITE ANALYSIS A. LOCATION B. SOCIO ECONOMIC c. POPULATION o. COMPETITION E. SITE F. PHYSICAL PLANT Old 3#$944X3 8091. rr A ESL POI, n 2 EVALUATION #76 . LEMAR, INC, POUGHKEEPSIE, NEW YORK BACKGROUND This 26 lune Gold Crown Center opened for business In the fall of 1962 as a Lence Lanes establishment. The house was 2 replacement for a 24 lane operation which was operated by Mrs. Ethel Levine, under the name of Dutchess Recreation Bowling Alleys, Inc., that was destroyed by fire in 1961. The Levine operation was originally established as a 16 lane center In 1945. Eight lanes were added around 1954, Lence Lanes was evicted by the landlord, Mrs. Levine, in the spring of 1963. They had made no payments to Brunswick. Mrs. Levine then purchased the equipment from Brunswick on an el ght year staggered payment program. Though payments have been made, no full year's payments were complete. it should be noted that Mrs. Levine feels that she was over- charged by approximately $85,000 for the equipment. She still feels that Brunswick will renegotiate the contract to compensate her for the alleged overcharge. The Credit Department has been unable to negotiate any payment program, within policy, that can be.met by the present Operation. , * - -4- m * — — — ct vo — O 6091 — k.... —— — — —— —— — — — — ltl ee — em —Vp— — — — : EVALUATION #76 RECOMMENDATIONS AND CONCLUSIONS it Is recommended that BCO take the necessary steps to assume control of this operation as soon as possible. This recommendation Is based on the following facts: A. Operation This estabiishment Is presently generating an In season lineage of 29+ lines per lane per day. The reason for the low annual lineage (22 lines per lane) is a drop of 65% during the summer months. It Is anticipated that solid summer programs will be successful in lowering this drastic decrease. a 8 * B. Market The population In the designated primary draw area Is presently 97,500, with an cffective total of 95,400 eliminating 50% of the non-whites due to social and economic considerations. This Is a lanes to person ratio of 780 to |. This is below the estimated proper ratio of 950 to for this type of market. C. Economy industry forms the base of the economy In this market. The international Business Machine Corporation is far and away the core with the employment of over 11,000. The City of Poughkeepsie is the retail] trading area for all of central Dutchess County and carries a sales activity index of 238 which is higher than that of New York City. Average household Incomes In the city are $7,390 compared to a county figure of $9,092 and a state figure of $8,279. Industrial development continues at a good pace. Land Is available and local financing programs have been set up for the use of Investors. — d. Competition | indirect competition during the winter months is low. During the summer months, a myriad of outdoor activities present severe competition, This is offset somewhat by an influx of tourists to this area. a There are four competitive commercial lanes In this market area. la addition, 18M has eight fully automated lanes on their premises for the use of thelr employees. This Is @ highly competitive bowling market. -5- ‘ Old 944%] OLOLV ae SES n 2 EVALUATION #76. E. ‘Site ve The subject establishment is located just north of the down town - area on the main north-south artery in a residential district. Travel to the site from the south and the east requires ‘ traversing the downtown area. This is a problem during the daytime hours, Monday through Saturday. A new roadway, circumventing the downtown area from the south, Is now under construction, This roadway will terminate within one quarter of a mile from the subject site, greatly improving _. access from the southern part of the market area. Fe Physical Plant Dutchess Lanes, the subject, Is housed In an older bullding of concrete and steel construction. The front exterior and the front entry arc attractive, The control counter, the snack bar and the cocktail lounge are attractive. me sides and rear walls of the exterior of the building need painting. The parking area is Inadequate. The lanes have been squeezed In through the use of rear wall machines, the . elimination of scoring chairs and the removal of some sections from the 211 seating arrangement. A garage has been annexed to the building. It provides for poor lavatory facilities, a combination locker room and nursery and a storage area. ° This Is not a good physical setup. Lease The landlord Is presently balking at the Brunswick lease offer of $26,000 gross annually, plus 10% of all gross income over $170 ,000. This guarantees the landlord approximately $3,500 annually over bullding costs. This bullding was formerly leased at an annual gross rate of 536,000. . | BEST COPY AVAILIBIE — — Old 34914x3 LLOLV 4 8 EVALUATION #76 A N . ' LEMAR, INC, ' | EVALUATION #76 POUGHKEEPSIE, NEW YORK LEMAR, INC, POUGHKEEPSIE, NEW YORK PRO FORMA BALANCE SHEET ss a: a So i or $102,950 $102,950 $112,300 $117,000 Shoe Rental 3,200 3,200 3,370 3,500 Pro Shop 3,200 3,200 3,370 3.500 * ASSETS: Snack Bar 22 ,600 22 ,600 24,700 25,700 — 1 Lounge 38 ,600 38 ,600 39,300 4) ,000 Current Assets: ther Revenue 1.550 9400 NI coh ont raventery 0 $ 10,400 $ 10,400 $ 10,400 Total Revenue " 0 9 1153-700 Elxed Assets: . Pro Shop $ 2,400 $ 2,400 $ 2,530 $ 2,625 Lanes & Pinsetters ; $221 ,000 * a+ — — . — * A. — 12 148 : Reserve for Depreciation 27.300 75 Tota! f d ; 3 108 ; x 180 $3) 875 a Rane — 8188905 : Cost of Goods 5 ’ ’ ’ Net Fixed Assets 9 GROSS PROFIT - $144 450 $144 450 $155,460 $161) ,835 149,500 Total Assets $204,100 222 2222 gts 5 Operating Expenses $ 97,319 $ 88,700 $ 86,700 $ 86,700 ' Brubswick Depreciation 34,700 27,300 27,300 27,300 LIABILITIES & NET WORTH del baia Renee : g Brunswick Investment $202 , 826 $167,086 $128,863) 1 ; — . , , g Ar La lg g 5 | Wet Profit (Loss) Before Taxes $ (15,269) $ 2,095 $ 13,856 $ 19,465 Total Liabilities & Ne . . N Federal income Tax $ (1,006) $ (6 ,650), $ (9,343) ' Net Profit (Loss) After Taxes $ 1,089 $ 7,206 $10,122 NOTE: Original Brunswick Investment: ' a 71 LIE 27.300 $ 27,300 $ 27,300 Cash and Inventory lanes @ $400 ' 5 8 d pl lanes @ $8500 NET CASH FLOW (DEFICIT) $28,389 $34,506 6 37,422 Lanes an nsetters 8 Oe . 1465 aa rtſen $ 17,472 $ 17,472 $ 17,472 Net Profit (Loss) Before Taxes 11.923 23.6855 29,293 Net Profit (Loss) After Taxes 6,200 12,316 15,232 Net Cash Flow (Deficit) 23.672 29,766 32,704 BEST OOPY AVAILABLE | " — ; mn — a „ Las 95 — ot ON 9 aay -8- 7 2 29 «J- — ° 8 05 , EVALUATION #76 LEMAR, INC, POUGHKEEPSIE, NEW YORK OPERATING STATISTICS. EVALUATION #76 LEMAR, INC, POUGHKEEPSIE, NEW YORK _ EXPENSE DETAIL a Bowling Lineage: Na. FORECAST Number of Lanes . 26 26 26 26 1964 1965 1 I. Deys Open 360 360 } 360 360 Operating Expenses: / Total Lineage 205 ,900 205 ,900 224 ,600 234 ,000 Salaries and Wages $ 49,500 $ 50,000 $ 50,000 $ $0,000 Average Linesye Per dane vr. 7,920 7,920 8,640 . 9,000 Payroll Taxes and Benefits 3,200 4,500 4,500 & , 500 Average Lineage Per Lane/Day 22 22 24 25 Licenses and Taxes 5,000 2.000 2,000 2,000 ' Insurance 4 885 2,600 2,600 2,600 Revenue Per Line $ «50 $ 50 $ +50 5 30 Utilities § ,000 9,000 9 ,000 9.000 Repair and Maintenance 9. 000 5,200 5,200 9,200 Total Bowling Revenue $102,950 $102,950 $112,300 $117,000 Advertising and Promotion 8,900 3,200 5.200 5,200 Supplies 4 834 5,200 5,200 5,200 N Other Expenses 1.000 3,000 3,000 3,000 tel! . : Start-Up Costs (A) 2,000 Per Cent to Bowling Revenue N N N N Total Operating Expense $ 97,319 $ 88,700 $ 86,700 § 86,700 bop! : ; * Per Cent to Bowling Revenue N N N * Depreciation: ar: N Per Cent to Bowling Revenue 22% 22% 22% 22% ktall : Total Brunswick Depreciation § 34,700 $ 27,300 $ 27,300 $ 27,300 Per Cent to Bowling Revenue 35% ‘35% 35% 35% N 14 Gross Profit Ratio: Bullding Rental $27,699 3 26,355 $ 27,604 1 285370 Pro Shop — — — — Snack Bar Cocktall Lounge 60% 60% 60% 60% NOTE: (A) Start-Up Costs = cleaning and painting bullding Interior, Other Revenue $ 3,000 $ 3,000 $ 3,000 § 3,000 * 20 10 mn — a — BP 9 20 * 1 — * — oO Old 24984*3 51817 BOWLING OPERATING STAFF & PAYROLL ' A1616 Exhibit P10 9 Sal, or Weekly Annual Title * Ur, Rate Total. Total 9 1011 12 1234567891011 12 123456789 uty BAYS OFF OUTER RBB . — , , F * 5 x VANE € OLOG, PAINT, | 2,00 | __ 92.00 4100 i= - ) ; e 1:80 —| 0608 a . f * i } 1 : $21,040 ‘Total SNACK BAR OR RESTAURANT 0 $1425 2). i __ = | GAILL/VAL TRESS | 1.25 1. DAYS OFF ‘ $7,200 Total COCKTAIL LOUNGE BARTENDER 1 00 500 — 1 ny an IL CA 1.75 1456 — e el 15. — * 49 3 % Total Payroll Totale! 1 GO Bowling; 4 l Snack Dar & Restaurant; J. 6% Cocktail Lounge, GRAND TOTAL ___ $50,000 EVALUATION #76 APPENDIX SECTION ELNANCIAL ANALYSIS The preceding financial statements are based on unverl fied statements for the period ending September, )964, given to Brunswick by the proprietor. The lineage projections are reasonable for this market and should be attained with e reasonable promotion program. The revenue per line Is on, s 50¢ basis. in actuality, lineage Is higher with « lower revenue per line, The 50¢ figure was used so that « leg! timate comparison could be made. The shoe rental, snack bar and cocktall lounge revenues ere based on present revenves increased at the same rate 46 the bow! Ing. a The start up, costs of $2,000 wil! be necessary to cover the costs of painting and cleaning the Interior of the bullding, plus license transfer costs, The Indicated lease cost of $26,000 gross was the Brunswick offer on the usual 2 year, 2 year, 10 yeer and 5 year program, in addition, Orunswick will pay 10% of all gross income over $170,000, This is @ legitimate offer and this should cover this lease, though it will probably teke forecful’ legal action to consummate this deal. This lease cost represents ® $10,000 annual reduction, MANAGEMENT AND OPERATION ANALYSIS A. Management The bowling center Is presently being managed by Mrs. Theodora Spler, „ married daughter of the landlord. Mes. Spler has been the manager since the reopening under the ownership of Lence Lanes. She has been working In and around bowling centers all of her life, She knows the business and she does an effective job of supervising the Interlor operation. She has also accomp! ished good results In the promotion of women daytime leagues. However, she is admittedly weak on the promotion and development of men's leagues. Old nennen Listy 1 EVALUATION #76 Operation During the league season, this establishment generates a lineage of 29 lines per lane per day. Approximately 75% of this Is in league lineage. There is a good daytime league progrem and a full first shift In the evening. However, the second shift is practically bare. The perscnne! appears to be careless In fulfilling their duties and do not pay sufficient attention to customer service. Housecleaning is only fair, though the machines appear to be well maintained, This Internal operation Is lacking In leadership and direction. : External promotion work among the men of the area has been sadly tacking. s a MARKET AND SITE ANALYSIS A. ccetion Poughkeepsie, county seat of Dutchess County, Is situated on the eastern shore of the Hudson River, approximately 100 miles north of New York City. For the purposes of this evaluation, the primary draw area is considered to be the City of Poughkeepsie and the townships of Poughkeepsie, Hyde Park, Pleasant Valley and La Grange. Soclo-Economic The economy of the Poughkeepste area Is industrially basec The International Business Machine Corporation Is far and away the economic core of this area with an employment of over 11,000. some of the other major products and the number of employees employed in their manufacture are bearings (2,500), pumps and separators (2,250), printing and lithography (1,800), electronic Instruments (1,400), and electrical products (370). | industrial development, spearsheaded by IBM, Is moving ahead in dramatic fashion. There Is land available and the local commission has various financing plans set up to aid Interested Industries. 2 ‘ -13- Old 34914%*3 8191 C. EVALUATION #76 The City of Poughkeepsie is the retall trading center for all of central Dutchess County. The sales activity index of 238 compared to a county Index of 105 indicates that the core city draws shoppers from all surrounding areas. | The average houschold income within the market area is $7,390 compared to a county average of $9,092, and a state average of $8,279. 44.7% of the households have incomes between $4,000 and $10,000, with an additional, 13.9% in the 527500 to $4,000 bracket. A high 21% have incomes over $10,000. This Is due to the influence of N. This Is a good economic profile upon which to develop a profitable bowling activity. a population The population of Dutchess County increased by 28.7% during the decade from 1950 to 1960 to a total of 176,008. it has continued to increase to its 1964 population of 192,493,.a gain of 9.4% since 1960, During this same period, the population of the City of Poughkeepsie decreased 6.6% to 38,330, while the popula- tion of the Town of Poughkeepsie increased 60.9% to 32,164. “Also during this period, the population of the Town of Hyde Park increased 106.7% to 12,681; the Town of La Grange increased 166.6% to 6.079; and the Town of Pleasant Valley Increased 47.1% to 4,064, These dramatic population increases were caused by the Industrial boom created by IBM, These population trends have been continuing at a slower rate since 1960. For example, the population of the core city has decreased to 37,300 In 1964, while the surrounding cities continue to grow. The 1964 estimated population for the outlined primary market area is 97,300. This Is expected to Increase to over 105,000 by 1970. Non-whites make up 9.6% of the population of the core city and 5.8% of the county. This locates the vast majority of non-whites within the core city. Because of social and economic considerations, 50% of these non-whites must be discounted from our total population. This leaves us an effective population of 95,400. This population breaks down into the following age groupings: 29.4% under 18 years - 57.1% between 18 and 64 - 13.5% 65 and over. This is a good population profile upon which to develop a profitable bowling activity. 4 ** — — ct -14- ; = = 6L9LV EVALUATION #76 d. Competition Indirect competition during the winter months is minimal In this area. Ouring the summer months, a myriad of outdoor activities presents severe compe tition. This is slightly offset by an Influx of tourists to the area, but It Is still a severe problem, There are three competitive bowling centers within the primary draw area and one on the southern fringe of the draw area which must be considered. A synopsis of these houses 3 as follows: Hoe Bow! County Lanes - (3 miles from subject) 30 AMF. lanes, cocktail lounge, snack bar, good concourse, adequate parking. This wes originally a 20 lane house to which 10 lanes ‘were added In 1963. There are presently ‘ 280 teams bowling In organized league play at this establishment. This establishment Is estimated to generate 30 lines per lane per day during the season. it should be noted that this house has closed down entirely during July and August during the past three years. . Hyde Park Lanes - (6 miles from subject) 16 lane Gold Crown establishment, modern in all respects, with cocktail lounge, snack bar and good parking. There are 120 teams bowling in organized league play. The estimated annual lineage generated at this house Is 22 lines per lane per day. . Mardi-80b Bow! - (24 miles from subject) 38 Tane AMF house, modern in every respect, cocktail! lounge, snack bar and good parking. There are presently 390 teams bowling in organized league play. The estimated annual lineage per lane is 32. This Is the best location in the market. . unliday Bowl-0-M3t - (8 miles from subject) 36 Anr tenes, modern in every respect, cocktal! lounge with enter tal üment four nights, snack bar and good parking. Ther. are 364 teams bowling in organized league play. The estimated annual lineage Is 32 lines per lane per day. This house Is located just beyond the southern fringe of the outlined primary draw area. Therefore, It Is considered only 40% effective in this market. 4 Old $944%3 0291 N EVALUATION #76 ' Including the subject 26 lanes, there are 125 effective lanes sorving a present population of 97,300 persons. This Is 0 lones to person ratio of 720 to l. The estimated proper lanes to person ratio In a market of this type Is 1,000 to I. The subject house should be able to attain and maintain the projected lineages; however, three of the competitive houses are almost completely double shifted five days @ week, Sito Analysis Dutchess Lanes, the subject house, Is located on the main northerm artery just outside downtown Poughkecpsic. It Is situated in tho heart of 2 heavy residential area. Travel to the site from the south and the east requires driving through the downtown area. This Is not a ser lous problem in the evenings, but it Is 2 problem weekdays and Saturdays. A new roadway circumventing the downtown arca from the south Is now under construction. This rozdway will terminate within one quarter of @ mile from the subject site and it will enhance the value of this location. Physical Plant The bullding In which the subject lanes are housed is of concrete and steel construction, The outside front and the entry way are attractive. This bullding originally housed 16 lanes. An addition of 8 lanes at right angles to the existing lanes was made in 1954. After the fire, 26 lanes were Installed in line. To accomplish this feat, rear woll machines were used, sections were removed from the 211 settee arrangement and no scoring chairs are used. Even with this arrangement, to reach the control counter from the main parking lot, a customer must walk In a six foot corridor behind the bowler's settces, the full width of the 26 lanes. When leagues ere bowling, this becomes an obstacle course. in 1963, an adjacent garage was purchased and Joined to tho main bullding. In this area, new tollets were installed (a poor setup), @ nursery and locker room was developed and the remaining area Is used for storage. The exterlor of the building needs a good cleaning. The parking lot Is unpaved and Inadequate. The control counter, the snock bar and the cocktall lounge are situated In the main entry. These are attractive and In good condition. -l6- Old 2$9$4%3 L29LV Tee 7172 — 22 22ND — * Daze Pile „ Ur EE Deo TT : 22 7 22 are nog ae? MeA2 207 © Muncges” - BEST COPY AVAILABLE —— — eer — — — — Old 218K 2291 10 4 4 0 „ ax BOWL-O 1965 1 196 1x 1967 2 1968 1969 Bowling $177,306 $181,841 $164,676 - $148,670. $141,620 Shoe Rentals 4,867 32 5,077 32 ~ 4,688" 32 4,706 32 5,556 Snack Bar 32,075 18% 295677 16% 22,574 144 19,772 11 18,958 Bar 115,984 631 100,229 55% 130,434 79 102,141 69% 102,217 Pro Shop 7,568 4 3,984 32 4,546 32 . 4,096 32 3,419 Mach. & Misc. 2 1 ---4,559 3% 5,840 22 4,517 32 3,074 „* . 2 oe & 0 * ; ° ‘ . , | $341,167 $327 , 367 $332,758 $283,902 $274 ,844 Net income 1 ter cost of goods and labor: é J 1972 — 106 3 1971 304 252 10 1970 341 30 22 . 1969 322 10% „ 2 3 — 1565 30 111 — 367 1 1967 57% 4 232828 1966 322 15% 131 1965 3552 23% + Oz . Total 4282 136% — 24 night Year Aver. * 171 31% For each additional $1,000 of Bowling Revenue, net income increases: Bowl ing $1,000 e 902 = $ 900. Shoe Rentals @ 4 = 40 @ 90% = 36. Snack Bar @ 15% = 150 @ 17% = 25. Bar „ 622 = 620 „ = 335. Pro Shop @ 4% = 40 @ 313 132. @ 2. 20 @ 1003 22. Mach. & Misc. 1970 z * $165,707 - 7,306 132% 24,352 721 85,984 121 5,978 121 er) $292,408 4 1971 - & * $198,421 3m 98,244 42 131 27,912 142% 321 82,417 422 * 12,40% (61 =z 6 AOR Od ‘$332,799 A1623 Exhibit Pil Yr . . 1972 Z Eight Year Total $226,123 961,404, 364 9,43 42 49,789 42 29,273 132% 204,393 15% 145,125 642 864,531 622 16,358. 7% 60,353 42 "$429,388 2,610,553 1624 Exhibit Pl2 = mnt ap YK 12 41a. 8/91/62 MM ie 8/91/65 191/66 eee eee eee 0/91/70 een eee TOTAL Lineage per lane 10,891 22,717 «12,220 20, 526 ‘10,213 10,040 9,026 8,098 7,513 %%% 9,754 10,526 or — Operating Cash Income 26,128 78,691 74,337 77,700 53,207' 4,429 48,219 (10,022) (20,480) 5,066 39,762 75,368 Interest 9,011 9,009 12,508 11,315 7,675 5,198 2,586 1,433 2,458 4,341 4,205 2,673 Depreciation 14,227 14,598 21,151 25,768 26,172 27,018 27,701 27,735 28,244 26,519 30 ,227 31,292 Organisation Expense 1,°69 2,095 2,095 2,098 2,100 372 -0- -0- -0- -0- -0- . -0- N 4 Income (LOss) 11 2,321 52,989 34,585 38,499 17,140 3,841 17,932 (39,190) (51,182) (27,098) 1,821 47,871 103,527 Lineage per lane Operating Cash Income Interest Depreciation Organization Expense Income (Lose) BOWL -O-MAT PARAMUS: O/21/6, 9/91/62 8/91/62 8/91/64 eee O/91/66 98/91/67 8/91/68 8/91/69. B/91/70. 8/91/74 13,630 105,460 18,0 47,461 1,657 37,746 12,192 73,278 17,461 36,757 1,621 17,419 11,250 50,269 15,299 37,342 1,550 (3,922) 10,70 62,745 * 10,476 97,427 -0- 14,840 9,355 6,117 7,490 6,029 6,063 6,906 6,996 43, 7,620 13 (13,572) (6,6%) (, 10,420 9,304 8,012 9,247 9,762 10,158 11,055 12,901 37,432 38,902 39,555 40,523 40,605 40,956 41,165 -0- -0- -0- -0- --- --- — 1 (1,644) (39,894) (48,649) (63,857) (55,409) (55,153) (44,536) 1625 Exhibit 713 7 O/91/72 TOTAL 6,780 43,207 12,554 42 ,466 (10,542) (253,601) NUN ER OF _ LANES 384 PARAMUS MARKET NAME OF CENTER Ten Pin Fairlawn Lodi Interstate Bowl -O-Mat Rt. 4 Esposito Martones Eclipse Bowler City Club 300 DISTANCE FROM BOWL-O-MAT 1/2 mile 3 miles 5 miles 7 1/2 miles 2 miles 1 1/2 miles 31/2 miles 4 miles 2 1/2 miles 5 1/2 miles 148 „ob has Sh of market ALL BCOD — Pid 10613 Nes 41627 Exhibit P15 5 14 1 14 e 1 Wel 1 tie * 12 1 1 (1972 & Eight Year Total Bowling $160,692 $143,437 $136,573 $125 ,667 $136,197 $138,674 $148,482 $195,775 $1,185 ,437 Shoe Rentals 5,298 NM 4,703 M 4,645 NM 4,251 N 5,452 4% 6,064 4% 7,981 32 10,939 6% 49,333 4% Snack Bar 35,318 22% 47,136 39% 61,558 45% 49,913 40% 50,1% 37% 51,093 37% 42,639 29% 40,886 21% 378,679 32% Bar 59,221 37% 60,131 42% 54,914 40% 49,097 39% 47,220 35% “4,891 25% 43,495 29% 36,867 29% 405,836 342% Machine & Misc. 4,006 21 4,617 @& 3,60, en 3,60, n 5,512 4,699 2,725 2% 3,058 2% 31,959 3% ° $264,535 $260 ,024 $261,491 $232,529 $244,457 $235,361 $245,322 $307 ,525 $2,051,244 Net income N after cost of goods and labor! Bar Snack Bar 1972 542 16% 1971 44% 19% 1970 31% 6% 1969 28% 6% 1968 32% * 1967 27% 22% 1966 37% 23% 1965 04 mth) Total 299% 116% Right Year Aver. 37% 15% Yor each additional $1,000 of Bowling Revenues, net income increases! Bowling $1,000 @ 90% = § 900. Shoe Rentals @ 4 40 @ 90% « 36 Snack Bar @ 32% * 320 @ 1st « 46. Bar @ Mie 40 9 xi 126. Mach, 4 Mise. ¢q we 0 1004 . I M NEW TO THIS bu-iness, and a lat is one of the reasons Why l am — . so pleased to be here with you todzy. I want io just accomptish two things: one is just to tale shout your business and the second is to introduce to you Jim Urlanek, who is the brand new president of our Bowling Division. Jim's Leen on the job for alout a week cad I thought it would be a little rough to ast: him to talk to you with that short experience. In talking business to you, | would like to review two things today. The dra thing that 1 want to go over are the new policies that the Brunswick Corporstion has adopted in the past year. And the second thing that I want to talx about at some length are the saide lines that our legal people have laid down for us in she concuct of our retail bowling operations that you ou ‘now of. I have been led to Letieve by many letters that this would Le of some. imetest to you and, therefore, I am going to 30 into it in sone detail. The first thing is our new policles. These consist of four dierent but te- Isted points. In the Ars: place we have ees sy for our bowling =. hrm eee second new policy is that — omy will we have Arm prices, but We weds, ws ll er e > . * 1 ' 2 > 80 32 Dee creer meee 'y — * « * . 141 \ rm! i N N — « ™ Provebly no single presentation during BPAA’s Sire bee conventisa 10 . thoroughly copturcd the inturost of oll BPAA members cs the speech éciverca by Joha L. Heron, president wf Stunswice Cocparction, sctare GA Spear seer Jon on June 24. Thurcicre, M. Hoaican’s cem ore reprinted dete iA Tee. . Another ccucle, decling with the. reaction of the 22AA. membership to ince remorks ond other tested ems, OpPIs‘s OA MEAT pg · Aso have, at this time, a more realis- 2 . -“~ nn on tie credit pelicy. These taree policies, Scitec tO mane suse that no- body in the bowling business gets frorm Brunswick 2 better deal thaa anyone else gets. And you can rest sssured that when you get our quotations ior prices, terms and conditions oi sale, that you have got the lest there is. The fourth new policy or decision that we have made in the past year is to oper ste some bowling centers courses; anct- EWU many ot you are con- cerned with this decision. When we made these policy decisions in the corporation, we suticipated some reaction irom the Loving proprietors. And I can assure you that we have not Leen disappointed. We ave convinced thet these changes are sound, and it may surprise you to know that some of the bowling propeieiors agree with us gud there ate also quite a few that don’t. The essen that I say that these decisions sud policies are sound is * . . 2 1 because they are for the good G d. whole industry. They ate simec .t making the bowling busicess a more profitable venture anc, therefore, they ee fer we tun. We evntly ate ia EXHIBIT A~| 4185 the business ol sclling to you money: maxing machines. Aad if they do tot they are suecessiul; end, we ore. And if they don’t, you * * Tue vast majority of prictors ate hapny with telt »esidess. They are happy with it Lecsnes it is profitable and id. -) are happy with it because they see a future. Aiiesting to this foct is the fact that more buw.az forward ww ex- 9 ome - — e Ste Ree bowl: pro- proprietors ate locking panding at some time in the iuꝛuse. There is a minority group, Sowever, that is not doing so weil. And ct c ing at this minority group who are un- able to meet Uieir obligations, we seve analyzed the situction and dete gte three causes for their truelles. za the first place, their establishment may » in the wrong iocstion, In the sews place there may here been 3 las of adequate capital in the business. In tre thied place there may be wainierested or inadequate muragement. d. gen- tenzen, these ate the tarce res-ons h : 3 ; ce PS + 0 * * — - beulinz csteblizh:aents zl. Now ween i we sre feced with the suction the: 2 propiistes is unsiie to psy bs wust be owes, we go ali oct and make an ex- be sstive scarves! will hir. e: Rt Nin reer!“ 5 3 6 3 99 — >) ~ — fm SS SL EASW ES: JISEUSSGS PUES WLC L2d 34944%3 B29LV EDU Dade ke W * — — ee ree —— — — N L. heslcoa, Inveswick Corporo- is) presidont, dee GA ODEN soe gon of SPAA's Sorc canvel ccavention 3 Sea Jon, Pente Rico. * of arranging things so that he can have a heathy and profitable business, be- cause it is only in this way that we can profit. When we have exhausted ail possibilities of helping, we are then izced with a decision. We can either re- nersesstie equipment or we can let him go on not paying. There are only those two things. We have cecided in these cases that the right answer is repossession. And the resson for this is that we think it is unfair to other bowling proprietors who are paying us or our competitors, to give some people a {ree ride. Alter we have tepossessed a house, we then analyze the situation by sending in 3 team of peopic who are prepared to do a thorough job. li the house is in the wrong location, there isn’t much that ve or anyene elze can do shout it. Aad in this case we have to physica.ly ge- move our equipment. II. however, ie problem is inadequate capital or man- agement, we then are facec with 3 fur- ther choice. We can either zeil the es- tablishinent or ojer.ie it. Now ii we can sell it, we will. But, as you know, at this time with investors, the bowling Lusiness does not have too good a repu- tation, I think it should have. I thcuk it's a very goud business; but. the fact is it doesn't have. And, therefore, sales are kind ef hard to come by. 80 in many cases, We sie then forces to op- erate. Now the things that I have just gone through, I would like to sum up an . put together. When we are in troul.le and a pro- prictor is in trouble we have jour choices: we can repossess and remove our equipment, we can icave it in place and not collect, we can sell it for the equipment price or we cga operate it and rehabilitate the business and seil it as a good business. We have had letters irom proprietors objecting to each of these four courses of action. And we decided you can't win them all and we might as well do the thing that is right ior the dowling business, because whatever is right for the bowling business is right ivr us. We beiieve that a house that is sick or that has been closed down is worse for your business then a heslthy con: petitor. And I wish you would think that over. We also believe because of this chat we should only pull our equip- ment out of the house physiccty as 2 last resort, Lecause this gives the busi- ness of bowling a Lad reputation in the area. The best toluion that we sce ior you and for us is to operate until these houses are profitcble and then to sell them on a multiple of earnings basis. A lot of people have said to me, “You'll never get that much.“ I don't see why net, because other businesies cre sold on this basis and I don't sce in what way the bowling business is dieren: in as far as being a business is con- cerned, The thing that this will do, to sell for a multiple of earnings, is get people out of the habit of thinking of bowling establishments as piczes of equipment. A well-run Lowliag estab- lishment is a going concern and has a much higher value than the simple value of the land, buildings or equip- ment that is installed thereia. And we intend to do everythiag that we can to make sure that we increase the value oi your investment in your business. So much for chat. When we decided to go into the op- erating business, we asked our legal counsel for advice as to what we must do to make sure that we obeyed the laws of the land. Lawyers can ge: pretty long-winded; Lut, I have 2 ieee ter irom our legal people (outside lege! counsel), whicn covers fouztcen points which they tay we must do in order to Le really right in this pusiness.:] am: Sse BRU NS wits, 179er 0 * 94. — ä—ä ↄ—55— — —— — 4% — 2 *** ——ͤ—ͤ—y— 2 — Led E9bUXG 629LV - Ww - J c * 3 ner (Wwntinae! jrom page 25) —— - d. ed. 1 * to you, Lecaure I wt tha: J get i: right and | think it’s ban that you ls. z. ine Stn in 6 think tsese cover a lat «f have heen worried vy cid for some of the prope that faa! hese in ike last few days. Tiere is a lot of pre- mite in this letter from the lawyers; get down to the meat oi » "Yuu have asked us to fur- lest — le lines for zuck howling establisimnents to be operated by — e Brunswick — sition. liere they ar 9 ee : * len CoveetiaV, zaun 4 se mes: zn, will io of. of % ¹˙ elects yuu 7 - „ 1 “+ ale, I no. th acd with I. Where any such bowling es- tablishaien: is to Le operated by Drunswickx Corporation di- + Fst} v. or sneirecuy throucn a {> — cor; Orate su! > id: y. 2 paratc ? * S hocks and records Cue de kept, ici ecring in Gazil the eani · tal investment, income and ex- penses Of egen such establish- meat. . Zehoseersed pinset ners and alleys "in entatiashimen e ys in 88.181 In: * — Wes Tor newly set up ior opera n we 101. 2 * Drun swieck Cor poration 1 Ab sh: Ould be can. tatized a: en — wick" 5 Current —.— prices 351 jnis cable to the resale to others of like repossessed goods in similar condition. l “3. Brunswick Corporation m — — econ. 2.0, mocernize or car B: ns- — arge SUT C18 Werte, using 1 — — ci: et new of 7 0 88 v — . —ĩů— Wick dn order to me * se Q funs- oc 5 — ͤ— ͤü—̃ —— . ‘Ss them more cela, attractive 7 1 — * and proſ.t ale. In such cases, tie so of such Brunswick \; — Vd” ont VN QY fe 205 ss! Lol, 28 be ch tharged to the Aides at BE A Wiss curren, 1 e zor ihe sale to “oilers of ne goocs in similar condition.“ i These three points really are pro tectinz e you fro: m unfair competition from bowling cenlefs Operate “d hy us. We set them up as if they were inde- pencent entities, Lecause that is the * ve are going io have to sell them. 1 point: 5 — Brunswick Corporation shou ia 30! consi: 16883 peel al: any — — 5 how! ang establishments in new 2 ' * a tien ior tie purpose of _ we — ol ac, ein hp eG Pa Se ieee — unless it has bees Ferm * a prepes survey in each case that 2 lo- ~~ JULYAUELUST, 777 ‘ 3 = (: * 1 9 f N om i . 14 8 „ 2 ‘ whee “tel ert S „Herta 25 3rEFfä — — —.— ee be. iA , A Nisdnge-es! Lu- lishusent in the “ica ad that * : : N Gthee person or entity is — — aun, gil Allee: * e ts tency, avic aud willing ty ohen an estab- Bene be and : lieliment in such iccation. . Brunswick Corporation should not A zulre 2 n am 3 Lowling esteltishmeat er- wise than through the aecess! ol repcssessing pinsetlers or a leys unless it should appear that such estaltishimnent had become a failing imisiness and ti: operator tnd Ned: wick Feri 7 * — on 4 “6. Bowling equipment “ahd suppiies received by any Druns- wick-operated establishment from Corporciion should be charged to t! lishment at Brunswick's current suggested list prices fo. the sate of sin silaz sup: ales Zud equin- ment to bowling e=tabiishmenis by Brunswick distridutozs. 7. In the event that any arti- cles of bowling equipment or supplies sold. by Bcunswick Corporation sl.culd be in short 55 2 Srunsv ick „ sie este ue avaioute supply in an equitable manner between Brunswick- operated extablslumeits and un- afiiliated Brunswick customers. S. A Brunsw ick · operated es- tsblishment may engage in d. vertising 3 and PTVMO! Gab 4a} wa level of expencitures compar- able to that of sounciy mana bowling establishmeats — ated by others. 9. Any sdver rtising or promo- tional cid given by Brunswick Corporstion to its own bowling establishments, spart from local advertising or promotion charged to ihe operating ex- penses of such establishmenis, a — + it shoul prorste Ui siioust be mace availabic on 2 — — — —— proportiayzie:y ejusl basis to Vell Giher buwuag De ονẽ operators who are Brunswick customers. “10. Linesze cl. arges of any Brunswi ICKY, ilo ment should be misintsinca at zs hich a level as local comncti- my” —— — = —.—. . ! es ssblishe tive vu: een — r er- — — 9 mit. Special prices, tera = id cona:tivis for league play shovid he according to a non- We think that our fair tr is a good one. you do. And we are going to fair trade. What ü. is means, gentle men, is that we can’t sel! Brunswick bails, bags and shoes, things Uist aze fair-tzaded ia our own estabuelrients. We are going to thing else under some other mark. Point 13. . “13. In the purchasing of jood, central buying agence diseriminatocy list adomted by such esialblislinent and should be compatalle to the prices, terms and conditions of repu- table compethon, as nearly 3s might be determinable. Induce- ments used to obtain leagues should not be so attractive and persistent as to smperit the business of any existing estab- lishment. “11. Balls, bags, ond other merchandise sold in’ Brunswick-onerated establiah- ments should be sold at Bruns- wick's suggested retail list prices for the retail sale thereof ia — bowling establishments. Shoes „ Brunswick bovling equip- — and supplies handled by Brunswick-operaied Lowling es- stablishments should not be iaiz- traded ia saies to other bewliag establishments in the same state.” . * liquor, merchandi-e and sup- plies from sources ot! her than Brunswick Corovuiten. wick > operaied should obtain writiea statements from the sellers thereof that the prices paid and i:uiucenients re- ceived by such establish. cus Je not — inst other bowling proprietors purchcsinz goods ‘of the same grade and quality [roza the same sellers. Purchasing for Brinswick-op- erated establishnients may Le centralized, provided that the should not induce or kaow.nzly receive, directly or indirectly, any un- Jawful discrimination ia prices. terms, conditions or services in connection with such buying 14. Neither Brunswick Corno - ration nor any subsidigry oper - ating a bowling cs:allishracg: 2 cuts estsbiisiments “3 3 > — - shoul 24. become a member of PAA } r of ony cca! Elisze thereof, or similar organization (continued on nex! poze) de pol ĩey And we think that to con:in ——— have to sch sCmce 4 L2d 3$914%3 OE9LV 2 16 * é | | | we oem «eo om ie ee P—üũ l.. Oe * 4 ore we mee 4. “eere * . , i „ Cantine from 2 vious pes) of bowling propricio’s. No one enpieyed by Brunswick Corpo- Tatien or a ider auh agree or cooperate with any such organisation or with any other howling establishment operator 10 Ex prices or to restrain or limit in any way er ion in the opening or ojeration of bowling establisuments. “In the event that the foregoiag guide lines do not suficicatly answer any questions which may arise with respect to particular circumstances or transactions. we suall Le ! lappy to dis- cuss such questions with you when they crise.” This last one, the one that has to do with the BPAA, has been taken up rather exhaustively with your execu- tive committee by our Geacra! Coun- sel the day Leiore yesterday. I think it is clear why we feel the way we do and what steps can be taken so that we can joi: the BPAA, which we would very much lixe to do. I know that some people are very Suspicious of our motives in sctting up — retail estalvishmenis. Peovle are aizeid that we are trying to dominate the luwting business. To give you some idea of how ungrounded these fears ate. we fizured out thet the investment that you have in howling estabiish- ments exclusive of —— and iaad is jour bition, four hundred million dallars. lf we were to tc aud acquire ten per cent of Lowl: establishments in the country, this woutd zuean that we would have to invest ia them four hun- Cred and forty mitten dollars. Cor mer Worth is two hunde tiason dullars. And this includes land and buildings and a lot of other businesses besides bowliag. So that in order iv have a len. per eeot ownership of the Lowling es- tablisiments in this country we would hove tw give up all our other Lusinesses and invest everything in that; this we are nut about to do. I mi; zht Say that these fourteen points that I Tead to yuu ai Tre tuw our F policies for Fis operation of Ont De- ters. These we will _Jollow, We think that the bowling business is a good business. We know that a tot of people in years gast have run it down. Pronrictors felt that they didn't 1 10 want 2 We Waitin 2. . ies i wrong. We think you ougli to 172 ties word. hroug! th the SPAA or cn 7 means that comes to heul us: a gen. business you are in, because if you co the valuc of your investment wei re. More peop'e e will come into the business, sure they will; Jad, that wil m:ean taa: you are in a growing dyazmie 1 ness and one that makes money. We think this is important aad we eve = lot of things coming along to uel you in this enucavor. Now I’m through. I just wanted to tell you, {som à corporsie s:an. hoi. :, how we felt about the Lowiing ness. We think it is great. We went to be in it. We want to Le leaders in ik os we have been in the past; and, we are going to do everyting spot. 1 285 * * 3 * „. * wv eee — 22 —2 224 — September! Back To Bowlin ee 12d 34944X%]3 LE9SLV A1632 Exhibit P29 * — — ee + * = +s ; "tho ln of og 82 20 Is: HOW TO MAKE MONEY 8 2 —— — — — cs oot ee it 2 * —— * 7 ————— ee. eee ee „ . . : . > * — —— Nen e 7 g 1 i | j pry 122 4 „ — — — — * ~ — 11 * 22 7 a * pes | I} Ae : 2 * — IZE * AA 2 22 EE IA ee iM 8. * * ds « 7 ge 3 “y ea — . iii 1 a 5 eee 5 | 1 122 * NASEN - — — 12 LI — — {iit) Tire to ti PT pepe tty i 1 i fa i LI 1 U | | U af * oe Trt 1 tT] i + 17 U * 7 { 1 r | 1 PLEX. (2 — TZ. B. A Cen 77071 I> Pg. k2g B ZU 2 orm COMVENTION . NEW YORK, tie / vo . — 15, 1857 * a . c „* : * 2 * 114 „ ee eee ! 3 Flor to Make Money: N First, analyze tha cntira operation PE in order to control exhon⁰ ss a4 | Second, proper pricing makes money 8 Third, incrcase volume throuch a market planning and promotion.......... ä _ Tho name of tho gamo Is Doing... .. . . . . 76 The Number 1 nam in the camo is Crunswick......18 een IT 41633 ———— 2 — — ß —«Æ«4k44.1. — — ——— — Exhibit P29 a | ' » 4 5 . + Se * H 4 7 . 1 N 4 5 2 a is } ‘sd oe 5 1 ae 5 3 . 1 ‘ oe = N : * 1 2 i , * 7 u n u . i i | | 1 Pons tte, 69-69 sf COPY AVAILABLE = L . — eer wl ee N tho pomo of of tho 6 fo: , HOW T0 MAKE MONEY 4 can also den your a of on * outstanding businessmen end prominent bowling operator once told us that we would never fully ucderstand this business until we got out there and actually operated a center. Now we are out there - and can agree this was a sound * observation. Although Crunswicl: hes Loon tho number one name in the industry for more than 65 years, we had never reclly — periicips. ted. 28 oy operetor wntll 1288. . vow Fruno- wicks | is ope operating bowling centers end through this expericnce wo are gatacring a conciderablo amount of information. Consequently, we and heve a much better idca of tho problems involved and how thcy may be solved. | _ Under our management we have x learned that most of the centers which we ere operating cen be profitable. Nen of eur centers, which were formerly hopelessly . 3 Eclinquent to our cicdit depart- av wy ‘| ment | ere NOW iW feli-custainina. ~-s0em — , These e centers are offered for ro- / cle to | indepcndent busincssiacn} — Duoere equity ia avaliable. 18 Brunswick rchabilitetes talling bowling centers by applying throo sound business principles: : i- : : 1) Catczorics of expense should N do anclyzed and controllcc. 2) A fal margin of profit should ba included In the price of all products end services. 3). All marketing and promotion efforts should be pre- planned. In the following peges you will sco ho we apply these three business . principles. All figures and ex- - amples are based on our expcri- enco In cporating bowling centers from coast to const. We hope this - basic information will provide a realistic checldist for comparison : with your operation. © 941634 Exhibit 29 -) aA - * Thoro nro throe typen ot exponsos in d boring contor: — Ocoouzancy oxponcos — First, awatyzs tho G poration in exdor to contvel OH ee * OCCUPANCY menen Occupancy expenses are gd and include rent or mortgege pay- ments, depreciation, insurance, license fees, and real and personal | property taxes. Once committed, management has little or no con- T-— trol over these expenses, which vary according to geographical location. wre — CONTROLLAPL= Ez ENS * _ Most expenses incurred in the average bowling center, however, ere controllable, end ere related to volume of business. £0% of . these controllable costs arc in- curred in payroll, meintenance and service, supplies and utilitics. . Here's how a Brunswick center mange ger should analyze his opera- tion and control these costs. TPoayroll Total payroll should not average higher then 25 of the tote] annual rovenno, denen hug ohen unlonz end Libor conditions; Lar payroll ot higher than 2593 of tue totel ber revenue; end restaurant pay- A1635 Exhibit P29 l — roll—aot Ligher than 359.) ef Ng taurant revenuc. If payroll costs run irrer tuen these averages, manacement should esk these. questions to know whero to reduce costs: y now meny hours should the center opcratc? 2) How many people are necécd | to operate the ccntcr? 9) How many jobs are cscenticl? 4) How many people are necded © to perform ell jobs? , Very often bowling ccntsz’s per- ' gonncl are employed for moro - hours then necded. For cumple, a restaurant or snec!: ber mey bo open during unprofitable tclecl: _ periods. Hours of operation can frequently bo reduced, thus re- ducing payroll costs. Payroll costs cen clso be reduced by carly plenuing of cui mer hours. Tho ebort on the cover cl evs tht | tiio dunner Dacre disp A ule cias in pri, whieh ners cu. mer hours end payroll raduzi's": shuld be In effect by dy. We _ Gccize ceverel months chend of tina what summer business hours will be and how many people ere absolutely essential, in order to reduce payrolls at the end of the regular league season. 40% of payroll costs is for main- . tenance labor (mechanic, pin- cheser, lane man and porter). If maintenance labor costs more than 4575 close look at jobs performed in order to reduce this cost. Perhaps one man can do severel jobs... perhaps the maintenence labor - force can be reduced during the summer. Ne intonanco, Horvics, end Supplics A major way to reduce mrinte- nance labor and su, ly costs is to follow proper preventive meinte- nance procedures. Our training fccllities are available for all pro- prisiors and their mechanics. In colon, we efer menavrcis on cvcry aspect of meintenenco, moantals which provide precedurcs ‘ 1 of total payroll, we take a . electricity costs. Once this training progrem is fully for propor preventive ‘sncintenence * with a minimum of labor costs. These recommenced procedures’ aro followed in on Brunswick centers. oe Most commercial centers buy con- tracts to service air conditioners, which usually cost $20 ‘to $27 a lane per year. Ve cre training our pinsotter mecheuica to meintein air conditioning and heating sys- tems, thus substantially reducing the cost of this service. When properly trained, the pinsctter me- chanic frequently is able to in- crease the efiiciency of tho air conditioning system, thus reducing developed, we plan to offer an air conditioning workshop to all com- mercial pinsette: mechenics. Upon essumption of the operation of a bowling center, Brunswick's policy calls for an overhaul of the physical layout and equipment. Once completed, the following ctenccrds, based on tho pp tion of our preventive maintenance program, ere estadlished for repair, ee ‘meintencace, supplics ‘end pin costs. These average steuderds will vary depending on gcograph- ical location, lineage and sizo Le of the center. a 41636 Exhibit P29 RIP MIR £99 Ey . . 777-8 rer tene Per Voor Sa et —— 1 ——— $ 200 Pinsattcr pr eee ne — 30. C0 ‘. ** * 45 Pin«ciler taolnlane nes supplics...... cosets , ee 1 ‘OU *.0-8 4a rs Lane mzintonanes tu“ 27 C0 1 Pin racintonance tuppliſt 3. paces 4.00 1. —5 Refele: are len c.. art —— 9.00 „ „ fur conditlonine & he-ting®®........ sccccccece™ § SSD Nag Duiluin:: Interior (fer inte tior painting l 2 * $6.09 per lan por h cocos 1620 * 1 A Other repair end iacona nes 2. 12.0 1 Vending toting... . + 20.60 (po we Cittiond equiipnraMt........eececseseceesseesede 97.09 (portable) Sen . —gL —([— . * ͤ rr a Rorty uront cgulpmant * 2 * elzed coii:s chon with Geraploysos we 0 Ue ie and 50 r -den no: kicludo : refelecration equlpment)........+. —— 200 05 (total denne Cor coulp: mont Giv2568 on 2 bartenders Re 35400 1520. C0 (tote! bar) 5 O. ZI: : CW. 2423 vor tens fer car lee Covding supn˖.ee . —y— ũ — “ 8 52.20 7. Ligsiny tuppfles . . — ° GD’: 06 * Junltori i aννονοννẽ 7 . 19.50 os Mitiard cube: 3 eeees —— 18.09 (por table) Restwerent cup ts: Gated on 1 2 SAME giro c αοποοο rr 1700.00 (total restaurant) Car zupa * on tara be thorg. 470.69 (e bar) 1 we: ese 17215 2 Eur pe em. nen ar. ree £0.C93 — 4 ‘tank: but not rc surfacing 079997 not Incieds cly-con-'laidns end corvice contracts BEST COPY AVAILABLE We continually leok for end do- velop new products which help reduce maintenance costs. Sev- eral new products are the ro- sult of ctucies mace in Prunsvick centers. Once developed, they are made evailcble to all commercial establishments. Exemples are: _ Brunswick Shield ell-purpose urethene coating and Brunswick Utilities i Utilities run as high as $33 per lene per month. Brunswick com- po rcd utility cocts in bowling con- ters with similar indus‘ries end discovered that by modifying or adding electrical equipr ieat, end dy consolidating feeder lines, utility costs, could be reduced througli re-evaluation of a center's electricel classification. In order to take advantage of this inform-tioa, cach utility company which serves a Mrunswiets center wos c', ed to rut: u recormcn- ation for mete cconomicel ways to onsrate the center and to check ‘the ecist bord classification cad util- ity aston. After electrical equipment wes modified as recommended, 20% of all Bruns wich centers received rete | reduections. The savings amounted to 10 of total utility cost in my of these centers. j A sample of the lotter which we Super Seal acrylic Floor Finish. ~ was submitted to the BPAA, and sent to local utility companics every member cen take edvan- tage of this opportunity to save utility costs. There are elso nationel consulting firms, available to bowling center manegement, which provide gulde- lines for reducing utility costs. Fees are usually based on a per- centage of savings realized. COST OF GOODS st of goods is « cost of products cold. The major products ere pro chop, feod end bevorages. Cost of goods is determined as follows: Lende plas purchase, runus velue of ending inventory, caur's theo cost ot goods, veau CF . 47 41637 Fxhihit P29 Tho cest of goods Is feat. U, measurcé cg t. porcont cs cg fer the product. Prunswick ccuicro cre budyetcd to mect the cost of gosd:, percentages chown at rant. ; In other words, when we coll a éollar’s worth of fcod, it costs 370 for the food product. Te determius food cost cf geods pcrecntrgo, divide total cost of goods by total sales of food. This percent indicates what regel items actually cost and is used cs © a control factor for aad to dry operetions. a g Rostcurent and Ber Cost of goods in rest-urent end ber varics according to the type c? restaurant operated. Co: t ef gooc.. should run under 3073 for snzc!: bars, under 359% for ceſico shops aud under 39% for full cervico restaurants. Cost of restavrant and bor (392. 2 0 Cia Lo cc: ‘cis 2. 27 . we’: edcauate controls, whiches1 tur. > locing oport uon into a proſit nin cr. — NAD Heo Here are several practice! control racthods used in Bruncwick _ Centers: J) Put one person in cherge. The bowling center manager can- not be expected to run the food end beverage operation. 7) Check inventory agrinst scles poriodicalty, 3) Sscurity is cf wiseoct Impsr- ug. De cure ali productc cro properly loc“ d. 1 Za . i | f * 5 M b 1 1 * 3 2 Pe : i ; : 1 | NUM NN N f : i , a 1 i e 12 ‘ 12 fi i i i 6 ti i e | | a i | 1 . 2 1 1 20% 40% 60% 60% 100% | 4) Remove oll slow-moving ites from tho Pen . : * 5) Provide people prepering food with menu cspccifications. In- clude correct portion per serv- ing ard cnecific dircetions on how to prepere cll food. 6) Disp!ny menu boards with coz- . rect pzices on rl foods. 7) Usa a each resister wiuch cz o- rates liquors, draft boer, 1. tod beer and fcod. oe 4 af ad * „ 6 » 1 cee cw eee hE eee oi Os BBS 00 = —U— u — — with cteacerd tacnu items and - prices. Tul increases cfcloncy control. Pro Choy In order order to control coct of pro shop [00 foods, 5, Wo maiaicin tekst ¢ con- trol oni inv vontory, irunswici: con- f ters carry a very short ball, bag and choc line of proven fact sellers. For the 1967-65 serson, the DCO line with color variations will be 16 balls, 11 bags and 3 chocs. ' This chort lize means: 1) Zach center hes fewer stock : .. keeping units, and onables each mennger to order cach unit in i depth. 2) Fnster inventory turnover. Each . Brunswick center is budgeted | for three to four turnovers a year in resale products. ) Freeh Pern viel center orders n lar qurutily ef uaits with c c tire reseiving the full Cochor chegunt. 8) Preprinteacel: Lerguestchecks © as well as serving as a cost 41638 Exhibit P29 41639 Exhibit P29 Socoud, progor pricing makos L — i. BS e* In order to rar.lio mone; tucro must bo a fale vac: of profit fu tho prico cf tio product. This 10 a coud. bucincss prinotplo and cp- plics to bowling co woll cs | any othor product. 1 In meny of the centers which Brungwicl: tool over, prices had been reduced prior to tate over in en attempt to increase linerge. This attempt usually failed. On the other hand, our expericnce has how that increasing prices ean increrse revenue without mate- rially reducing linèr go. Locel DCO * — ee lincege reteg pre at lecst com- —— — — Seti — perable to er. her. han rates ee * — ——— charged by soundly managed cen- — — — -_ ters in the arca. 3 Tho following chart chows the cficct of volume end price chenges on revenue. Let’s assume wo need. $5,099 por lane in revenue to pay expenses ond make a fair profit. The chert indicates how much vol- ume you must generate at different price points in order to gross $5,000. | Other Corrsc3 of Revenro A bowling ccnter is muy types of . businesses. Tho chart at right shows what share of the averego BCO revenue doller is generated by each type of business. For each doller of revcnuc, for example, 9.80 is generated by the restaurant. Cost of restaurant goods should never be lowered by ; buying inferior quality food prod- ucts. When a few cents moro is THN Ba GB GI: Away Nen N, ſelelt: IP Ban ai ne Si Gf 1 = F REEE ER. paid and hisher quality food is served at a fair pricc, business and profits can be increased. In the pro shop, sell only items which can competitively bear a fair mar- gin of profit. N 41640 Exhibit P29 TTG, GO VELERO al tha 4 re „ 128 20 * . 5 8 . 1 . ; . c 20 U mores planning ond F201 = | 3 1 2 gement should follow threo ctcp3 to ine=c=20 vol- umo through mericct plon- © ning ond promotion: Hol: o ouvro tho conteor 10 oporatod proporly Pro-p!cn tho progrema for a epeotfie merizot ‘ Follow through on all . promotions PROPER OPERATION A bowling ccnter must be operated properly before new bowlers cre . developed, or else new bowlers are lost r fest cs ticy ere dovolopod. At the right is ovr list of itcras Iich ere contienstly choked and rechesied to incke cure Drens- vlt centzr exe fi eder cad properly tic cd: 165 Exhibit P29 * . „ „ co CENTER CHECK LIST HALE OF LOCATIO: . CHICK: CLEANLONESS — conpition OF Deda U Tele t. 243 8 va Signs — Tele-Scores Lentz, Pin Decks Call Cie: Bachine Machine Area Pinsctters counter Pricins Disol-;cd +. CONTROL Dispicy Cord Fata Used BAR ARCA Condition of Reatat 8 5 Pomerch, Pilitets & .. of b. el. 1 men 125 Tyne of t Used 7 Promotions! Flyers in Evidence Use of PA. sancunccm.ats — RESTAURANT Scces of Food ~ AREA : Trau Mricins Conteg Vending Nechlen- Clegg f. Felt Clecatiness of Ui. ::, Cesip= nt, Filters, eic. Aprosch, Atteluds & Oe of Employers (ns: e dez) Check Food E Grversze Costs Quentico Sericd en Files Security of Lot end Core Approsch, Altstute & Dress of Eeployces (nene tors) sical Coaditucn of Tevles, * BILLIARD ron Pricing Disotz;e6 ez, etc. ter CONS cg ef Ten. 1 Sette, Ueto, eos 7 % S :e. PRO :: (A. -c. Olratzy: Pricing of “ 07.7: S cunts of 2° rel. oes Chseh. Sates dl. 9 ITCHANCE ck, Sccurity of f° tur of let Covcteamont Coz Keasure Prevress end Resets of Ler to Cond tad Lersws gls Scan — Loathty hro-otion A a — dev to Cot Clesses 26 Te: che fclicit=tiea Check A ep Teols and Latettals to Sea if Cꝛiag Urs iet iy Up-to- Date Stxtus of lers Schodule Cords, 2 and Gates Jun of Leacus All. ndzace Cards Bailing List File Isdn Feen, Tea Rensugtea Cords) Check Al! asses of Rational Tenuta: urn check Tou:artint He:ults Review it tat ead Plane Plortolioa; Centers Sc-etity a0 Sr: ty — Discuss Cor zztittwe Situstion, Price Suucture cu Eccnoralc Conditions of Auca Per sar -I Proviems Reiz Trsinins og us, ODcerve Vela l biu : Petty Cash Fundor stef Lest Report Fret z 2t:t Resting (ert — Leztbetact o. tg B orte C:rositSiip - Time Card Meck ws. 't le: joruing Pioget Use ef Coch I: + sists Aucit Score fhests, Poy „ One 8 3 11 — a Hecht od 2 122 Cheek Lena 13 end Linsss> end Ce te 3 etz 8 E. biz S K. 25 5. ay dnt Revicw P & L St-ter sat . Counter control staff must bo prop - ! 3 : it * 1 E erly trelned in order to perform ell jobs correctly. Below ere our Golden Rules for retail selling x which ere used in treining Bruns- wick Center staf: , 1 * - . . N ° . 15 N 0 0 i 99 . * 9 * 8 ° . 7 N „5 7 — * . 7” - . a 2 oe . nes ms 2 « 1 * 2. °° * ‘ . 4 8.9. Oey. 2 - = ry —— — 4 7. =? eren „ ° 1 : 9° .9: — 3 2 . . * * 2992 3225 yo „0 ‘ * * ‘ ~~ id + Oe tees ee * K. „ © 5. o 22.3 Mr ers 22 3 We * 6 0th 9 f * 9 1 5 0 1 . 2. v. 124 yore G20": ess ty acne, “4 ries * x 1. 9 2 su ra tt thon sy cade, *¢ 2. bites essen to 105 0 r er ..-: "ja i. Ct. gun. Pid * . N * 4 * 1 , LIC ter rc t. 1 f grose sete . ene Serko wica yoo fea @ Ri 2 * ese . * 4 — 9 — 54 5 : C, 77 , . * * P 92 A NIE SN I Te, ” a oe 27% ae ae „ N a? aig - 5 5 * sae 8 7 1 2 —— er 1 2 pat, . 52 * : 715 4 3 — © vas 5 e 5 9 1 tere 3 8 * Seep i at "© on 44 . 4 ot e . „eee * — af ° 8 15 ts 22 1.255 fox 12.2 84725 tt joke to “sy . your paca ta ein c: Of fils nisten 5 ent. Bore —— er. Hef cr? l. v Gost 10 2 cuerrenz C. g with the re In @ estes capes |: | K. K . n a 2 — 22 goalie’ 25 w 822 per: E. Sse — 4 a Oye: ty le relly bo cosh ce tomer ert you will, . 3 eL. 0 yous thave $9 lng zue GF tha cc. 4 „ Heco :. wits c fa your i:. Nardo * ohen. 7 nir f. — 5 Cy an Rete every 2 . — 4 — 2 sie . : 2 * ; A1642 MARKET PLANNING perly, the management should have d marl: Cot plan ler net bowlers tailor lored 65 U is"Spetiiic Brea. In Dronswicl: Centers a a plan is up- dated every four mouths. The plan includes a gl ſor as specific num- N Tn! hovlors for Se. 1 ester. As a result, en cverage : 0 350 “ people learn to_b bowl per_centor exch ye Leer. More ton 6396 of ‘these newcomers ere — to league bowlers. BCO follows the samo basic pian i provided to. commercial proprie- tors ct Drunswick Field Manage- ment Seminars. All bowler cevelop- ment is built eround Brunswick . Learn to Bowl cincses. Lerguo seles, door-to-door and telephone techniques cre all used, depend- ine en the tergot ret arses. League sles aro included in all 2 plans beenwso It is tho most oco- After the center is runuing pro- nomics! techniquo and produces groups of bowlers. Lercue sclcs appointments are made ono or two weeks ahead of cach cell. The pro- ppeet is offered bowling as a ser- vice with a freo bowling party as incentive to the croup. In developing a market plan, men-gement should ask itsclf, is it worth $4 to SS per bowler to devclop a new Iczgue bowler wh. cen generate $120 per year re- venuc? This cost for new bowlers should include Learn to Bowl in- struc tors, printed materials, door- to-door and telephone sales people, and miscellancous expenses. —-_coaeveer A1643 Exhibit P29 “PROlMéorion non“ All proraotioaal cetivitics la Rivws- vrick Conters are preplenued mony months in advence. Before enc event, all cmployses are elcites and trained, so that each prison knows what he or she will do dus- ing the event. Brunswick Centers will elso participate in the Nationa! Bowling Council “Bring a Friend“ program. In addition to Market Plonaing, Drunsvwick Centers have fovr boti: promotion prograsms: Tournemont Program Each Brunswick Center plens en ené runs d minimur of ci: nt T fowre: - a mente FdH cel overt: durſag u. a Da at. D ling 0 censor. A TI schedule is chown at right. Juno Program Lrunswick is helping — , new bowlers for tomorrow by a concentrated program aimed at the junior market todey. Each Brunswick Center has a yeer- round program for junior bowling shown at right. — In eddition, our Junior Provrem - Incluées support ¢. end 1 particination in the FPA E merieg Youtl Youth | Tov ure ment. tho wee _o of_rromo- tional junior, howlin shits, end patches, « birthday party promo- Lon er end ad “Jt unior infor Friendship Days” _ Days” . from from Mey May throyrh Auzu: Aucust.. * 91644 Exhibit P29 . . „ —A: — ———— ͤ— * gumtacz Program The summer program planning beging in December and is im- plemented beginning in February ö in Drunswie!: Centers. In addition to summer lergucs end open play hours, specicl Learn to Bowl Clesses are formed. Coupon boot:s, which ere redeem- able for one free game of open play per wet during the summer, ere given to ell qualified winter ler gue bowlers. Our past experzi- . ence is that appro: imately 15% of ell coupons distributed are re- cecmed, end more then two ad- ditional pod games ere bowled for each free game. This promotion provides an incen- tive for winter league bowlers to come in cnd Lowl regularly curing — the susamer. Es:vtor Programs In 1939 there wero 18 millioa per- sons in the United States 65 ye ö ol age or older. This is a Crow ing market for bowling end a spceial program has been ceveloped by Eco aimed at senior citizens celicd ~ “Clubhouse 55”. The object of this | promotion is to encourcco senior men and women—55 yeass and older—to participate regularly in ö the healthful sport of bowling and other activitics in our bowling centers. g N : i RESTAURANT 40ND DLN Our revenue from food end bever- age averages 20% of the total ro- venue netionclly, but reaches as _ hich as 50% in some of our bowl- ing centers. The higher revenue potential can be reached if mnunge- ment hes proper interest and knowled:;2, good controls, end pro- motes the food end boverage core. AU rer: ue i Per err val shovla he prepgrig tecieo* eo: how een A1645 Exhibit P29 to opprorch guests, tuo erécrs and cerve fcod and beverages. Be- low ore our Golden Rulcs for te- tail selling for restaurcnt and ber: > Go nc by etic: : pert lt, and wi @ . ien. tine? Ce. 289. 5 (2°01 td thet bo wit be ic: i. 2. . 9 L. 2. t len tabla er cn f eee lr Mba @ putieuter g E 4 2. Pty ; . =: * bet De . e e e „. . 7 „ 7 : lr. u u C8 „ „ „ 0 * * . ets 2 at «= „ 1. 5 0230 © See. 1 . „ nne 2 „ e rs s: 2000 r: . * * . „ „ * 1 out 2 * —ͤ—ͤ —äẽ— —— — Pr * E. „ tze ts |: 3° — * . —— — —— — owew — We do not expect a bowling man- ger to run the food and beverage opcrs.tion. A dificrent person is put yi charge of cur lerger food and Levcrege operations with a base celery plus bonus. In small snack: bers, the food and beverage man- ager is a working employee with . edciiional responsibility and au- thority. Women often make the best managers in smaller 22 tions. It is preferable to find a person who is familiar with restaurant and bor operations as manager. When this is not prectical, basic food and beverege knowledge can be ob- trined from literature offered by the National Restaurant Associla- tion. Additional training is avail- slic for managers of larger opera- tions at Cornell University and Michizen Stato. I. ling centers where food and ——U— D ee ae — — —— - . owe . . 2 „„ - eo '« tl — — T— — — on => — ae eee — ——— -- —— — - 7 2 —— 229 „„ soft drinks revenue avernges less than OI, 0 a month, we usually install full-line vending service in place of the restaurant or snack bar. This includes cofice, cold Grin'ts, snacks, cigarettes, candy, and in somo places, sandwiches. If a proprictor is considcring vond- | ing, he shovld shop the crea cere- fully, and base his choice of vendor on price,” qurlity, service aud re- putation. Vending operations should be carcfully controlled by supervising all collections and by - keeping a record of monthly sales. In eédition to contracts with na- tional 2nd local vendors, Pruns- wiel Is operating its own vending tcrvice in cevoral centers on a test besis. Results of this test will bo relayed to commerciel proprietors. '. RESALTS PRODUCTS A boring center has a butt tied . D bells, bags nd 7 it 7 ' Exhibit P29? + Ie. dirvizh: | » Proper displcy und — pro- motion — displays of balls, bags and shocs are kept clern, and changed every two or thrco | . wees. Flyers are railed to all 41646 ‘ton. This marl: ot can bo reached '. regular bowlers advertising product features. 2) Motivation of personnel—per- sonnel should be treined wow to sell and taught product {caturcs during regular mectings. In- centive contests are held with merchandise offered as prizes. 3) Proper selection of product a short line made up of ſast- selling items assures faster turnover. 4) Proper pricing—tho lino chiould include modium to hich-medi- um priccd reve All regalo rell a 11400 he ew 11. . tu fair maraln of prop t. COPY AVALABLE | 41647 | Exhibit P29 41648 Exhibit P29 —— ed te i . 1 rs ae SS . 66 ° * 1 * 829 1 * . . e 1 : 4 * a ! > . j . * 3 5 4 que ame 02 {330 6 CONG 1: . 1 r Aine D BUILVING TECENIQUES with a growing corps of qualified | Brunswick Centers provido a . 2 ö 501 Vi il ING Tu operation of bowling centers bowling center epeciclists who means of ficld-testing new supply ; * * ‘ee . | Nrovides a way to fost end Lo- monage according to the cound and equlpment producta. Products . * 1 a ment now business building men- business practices learned in ex- aro tested for timo and cost cav- NEW BUSINESS “method v70 provide the industry ' NEW PRODUCY TTSTING •*ͤ c . . : 7 rae gzemont technic ier, Since our pri- mary interest is to advence the bowling industry, sucecssful tech- tensive DCO training programs. To dato, Dm r e e.. ẽ -. f ings, extra income, and bowler : convenience. Products which prove successſul in field-test are ofiercd niques and innovations are being tant manggerg. have predicted for le to tho bowling industry. | | N * N mado available to the industry for from BCO training sessions. Over : NEW BOWLERS . re * | ecnerel use. 6553 ero co:mplctcly new to ue „ „ Oe. 8 5 ede 80205 ————ů— Moro then €2,009 newcomers have _ 122 — — bcen trained in CO Leorn to > "| Bowl classes cince Jenuery 1, ' 1966. Approz:imatcly 53,000 joincd ~ regular longus es a result. This ts Current techniques ate included | iu this report and new techniques will be relayed to you through NEW PROMovrrons SS ——ñ—— a ec ̃ — : ae a In ecdition to cn LA tre. t - —— — — — tus falling oomters t. ad co f ö tablichize a truo volt fe- |) Brunswick Ficld Management 30 ap, provides e_merne of a a significant cddition to the bowl- | commoroial ecutsra, NSS Seminars, Nentgoment Schools, 1 —— ing population at the grass roots —— tenting tates |: , . Goveloninn end testing promotional ä I bonctits the bo Brunswick Sales Representatives. rr ; | try in fivo othor vital cross: doas end proprems. Severel nov i 0 a . rograma aimed at the Junior end It every bowling center in tho Senior mertets are cu rrontly being country would teach 559 nevw- ia | MANAGEMENT comers how to bowl oach year, ‘ny 7% . tested in BCO Centers. Programs this would monn en inereaso of > „ 7 : a 2 PeNSONNSL TRAINING wish prove cuccessful will bo do- three end a half infliion new It is ovr yom nat to hire manago-—- veloped and oviercd tocommercir] bowlera por „err. And if ovory ‘ , . ‘ 0 1 a 1 ee of on * fe f pation renn , ,ν˙. te ts futuro, co contor oonvortea ct Isant 600% . 5 wer noes 0 ee 2 a ‘ 1 22 „ „n 92995 ae ° how! „centers, let i root end plans to Govelop end tect now pro- it route: mern 1,405,009 nor- ot: 12 “now Propte, * “Throven nue creme cimed ct the men’s HT-: ot. l: guo haters pov ys 120 Perahor 1 EU in e Game is: BLUNS ron Solling bowling cquip- Mont, ovupplios and cozviews to tho bewog dust fo ovr bucincss. ono lo why Dost bev te or- hes boson roeog- nica eo th Gti “aw viper 1 mannuineturcr of “bowing” Pres. Goo Yor mn VCO guortors A Sr ecntury: Dost of full Conversion: A1649 Exhibit P29 YULL-TIME PROUT RESWARCK AND DEVELOPMENT | 8 PROGRAM TO PROVIDE BETTER PRODUCTS Brunswick has spent millions c? cc. in the past decade for the def.: of new products and products iuaovs- tions. In 1°67 we introduced: | e Jot Nect: pinusotter_ronvercion that ends “Ito start” problems ct hali u. jet Flow serting that providea uc. styling, new comfort and nov ſlo: it of errangement. © Super Seal ecrylic fiocr fnis's t lasts longer and won't transfer to his 3 epprosaches. ® Shicld cll purpose urctiac cost . that cuts maiatenance cost and 1 tects your center equipracrt. © Nestle profit-metiers If 2 tee 17: nnen - %- temnorcad finish cad Cu scott sf". Trac-Luster bail Jere. PAcTZOTICI! GF Le TO CONSUMERS dollars e year to tlie promotion of bowil- ing. Included in this budget arc: „ Lifctine Sports Foundauon— Tho Foundation is dedicated to teaching at p tie school level and furthering the sports in which a player may partici- pate for his whole life. In more and more schools, bowling is now a part of the regular physical education cur- riculum. ® Drvnswick contributes to the BPAA — — 2 — — 2 .. * 2 for he eee eee eee 18. proprietors, ® Brunswick co-sponsors, through the Sport of Bowling Council, the BPAA All-America Youth Bowling Program. ® Diunswick has contributed equip- ment and promotionel dollars to the BP/A All-Star Dowling Tournement since 1941. The 1968 Milwaukee tour- ney will mark the fourth consecutive All-Star held in a Brunswick instaliation. ® Brunswick contributes to the Na- tions! Bowling Council for projects that tre designed to develop bowling and will help implement the “Dring a Fricud” pro:notion. V's williastcll the entire ADC Powl- in, Povwanment in 1060, sacrthing more thon co Bronce darun- fr ti ABC, 5 „ Brunswick contributes to the WIBC Druuswick allocates over 2 million » tate Go Git ¢ ce © bowling. 8 Gia | Sport of Bowling Council, the 109-Plus Progrem to attract youngsters to bovling. 0 | MANAGEMENT TRAINING . AVAILARLE TO ALL _ COMIZERCIAL PROPRULZTORS Brunswick has pioncered the Iden of management training to assist pro- prictors to operate more profitably. The orleinal Menagement School was initinted in 1953 and since then we have offered training in many areas. Hanegement School—Updeted this year to teach manezement techniques more effectively, ‘ho management school has traincd almost 6,099 pro- prietors end menagom in 118 schools. countc. Control Clinics—Designed to instruct counter personnel in how to perfor more effectively and more profitably. Certified Instructor Clinics—A two day traveling school cesigned to instruct -- teachers in how to properly teach bowl- ing end how to iasti!l the league spirit that converts more beginners into „ NN 41650 Exhibit P29 lcegne bor. lg,. Tilla, of courzs, soc263 moro bowliug and mero proat for the counters. Equipment [aintenance Clinlcs—To teach meintcnance personnel how to increese o rating eficiency and ro- - duce down time. Field Hanegement Seminers—Specifi- cally designed to teach market plan- ning, including the newest techniques and best methods of bowling center operation, so that proprictors will bo " able to get the most profit out of their operations. lane taintenanco Cliniss—Devcloped . this year to tet. chi all facets of tourna- ment lane meintcnance to echicve unl- form lane conditions for maximum scorcability. iI CONCLUSION The information in this bro- churo was provided te. miva you, tho indopondont bowling ; bust — — 2. Said r. n i ohicel: lis it “Loree Sen- Oe — — — partir: oa yet 11 San perg tion. IInrd work and conctrent devcl- opment aro requircd to mako moncy in tho bawling business. Onue_polieias rd rd practices, an detailed in di. i a brochuro, aro C red. feta remo ebintive= to bw’) tho here: 2 ind ust) . 9 323 @er * ~ c. 12 Se . ‘or . | 41651 Exhibit P29 A DISCUSSION OF SRU NSWICK CORPORATION ] ' aa by . ) John L. Hanigan, President and Chief Executive Officer . a before the | | New York Society of Security Analysts 1 I : - 118. Mocha :“, I.. COTS IAEA * 0 0 . i, : — 0 ) Fu. 11 BEST COPY AVAILABLE ) 2 FOR RELEASE AFTER 2:00 P.M. E. P. .). a ruin. JUNE 6, 1969 New York City Oed F49b4X3 2891 june 6, 1969 Thank you for this opportunity to meet with you and discuss my favorite subject --- BRUNSWICK. I'm going to make the assumption, which I hope is a — one, ; * you've all looked over the published data on our company, but in any case, it's in the kit that you will get on your way out. To put the recent past in pers pe tive, I think it might be useful to say, however, that in 1961 sales of the bowling pinsetter were $200 million and accounted * practically all profits; and 8 1963, they have been about $4 million per year and have i losses. So, we have had our own private depression in the business which generated the earnings to make our acquisitions. Since 1963, we have been getting along with no bowling earnings. I'd like to emphasize three additional points before we leave the past, because they are important in understanding our future. 1. We have reduced debt by over $200 million since it peaked in 1962. ; ö ees = “ee * Be “es * . . 4 „a as — * 9 . . 7 g 1 0 a * " es * ve” 8 2 * : *. 4 22 — A be ’ et 7 5 8 | — * hor N * —— , L 5 5 1 - . 2 2” - a * fe . 2 1 22 27 1 ate ne “ , — ae — 3 * ee 7 a * J. . - 223 1 * e. y * 39. . 7 se * t 9 ’ me re yn : * ee N * 1 * . -- : a ‘..e* =" — 0 . N 998 „ t 4 — *. ° . * * ; ; . * % . 2 re a . * 14. * 7 ” . % ee ee le eo Pe ds | 8. : 3 >. * . 7 — * 7 = » . . on s . - nal . * : 2 = . . . ~& .$'«@ . — * . . * „„ „„ — * — . 1 5 0 2 > 3 29. re * 7 & „ le. . - Mr. Job A. Souos 8? — — S FN. 2 0 e 499 2 „ ., — a. i on 1 - - : 3 ** b> - ® 3 2 — «te 99 — a . » , oO? oe @ *. > a S75 ee — — 5 * 7 53 a) * * . 7 2 9 „ 3 é " . * „ * WEL Mee e f. — „ 1 fo ‘t+ 7 * * „ee e o: r r. e. — 0 ° „ 5 * 8 ~ .~ © — o oe — > 0 « .« aL +: 8 ee . et * * 7 * U ‘ a * 8 2 3°, > ~*~ on — © a — 2 — 7 1 2 2 ° 4 * „ — * *. „ ee . 8 r * 2 ren „ ©... — * 7 ; . P . 4 * v6 8 4 1 0 1 ° . = ce 8 . 7 * 1 by _ Daa Lichlich was in Homo Orc the oh day and discussed wits mo Le. wa PEP NS czy of romoving some of his equipment fform 3 FNoziaaa 2 1 — — f — oti nee od aah ao. PT IS" Yoeeation to the White location on Roosevelt Doulovasd that L N= ' 90 27 a a — > ate — „ ~ rae 2 the S D bas besa closed. Apparently . zsebiich — coutnes — 4 ho ccazzol ths building and cal estate ons can — 29 cove 9 7 — 0 1 * : ‘ hg — * 1 : . » * * 2 * 0 . : 5 888 e ‘ 2 a % o ae . a * — lta te oor Lt eadled Al Meal sight awey ane got a fect chock on what tho lecotion. ll. dad aves look Hie. Leatled Mz. Lictlich oné told irn het in my * oon if was marginal but thet is would probably boss furthes invectie /f ws? . 2 * sul’ ; — 1 5 at oe. ie dee . * gotiea on kis past, espectaity if he couse got a good lense. _ ar hie ot ALA — ° . K Al a 5 5 1 « 5 3 ; 1 N I. — . — * . 1 9 « =, 1 — * 2 + = Dioase prepare a segulos azea curvey fox this location - Mz. Licbic= is goiag to come to Phiicdciphic the wock of November anc — yon dau tey to contact him to cet up a cate to moor him in Phitccelpnic ees ao ond chow him hie locotion cad o ago ond discuss the susvoy. . — oe. © — — - i — — - — eee * ee 7.0 ad 2 * * Mr. Licblich's chain. "Nations: Sowi-O-Mct, c. , is ons of the dest we \ Evo end hia exedit is exeetiext; if wo gan holp him colvo this cifteus F o—+e prodio in Flesics, wo Shou Co co. — A — * 9 2 = > a . - * * +. ote g 1 9 — 2 . : „pd asorceiate it Kon, if you would handle this personally, are you dave any qucstions plesse sive mo a coll. leace ge: in touca —_ | 2. Licblich in advance of his visit - following 10 informsticon oa : 133 — BT Lt 2. pasted Paske LO K̃ TE ye ot 48 86 2 — . co „6 Prost a 7.ꝙ . 2 * “J - Nations? Sowl-O-Niat, Ee. — 0 4 1 V2 5 D 152 Mazkst Ssscces oo sf ot * atevcon, Now IJ O ss 5 1 * 8 1 ** a : ? 5 0 : N 5 Phone = ARmozy g 0560 * . om : a a» „ . e* — 9 : . 2 0 930 a 2 * 2 — — 20 * —— * > 8 * * . . re l¼—Ä—— — 2991 bed 210 * BOWLING Ci. e Buunuick CORPORATION August 27, 1965 PLAINTIFE’s SES Mr. Daniel P. Lieblich National Bowl-O-Mat Corporation 152 Market Street Paterson, New Jersey Dear Dan: It appears that the "fickle finger of fate" is keeping our paths from crossing. As you know, I have been away from the office constantly since the first part of August and my travels have not taken me into an area where I would have an opportunity to meet with you and discuss - it appears - the many problems that seem to have arisen. I want you to be assured that correct- ive action has been instituted. Whether you believe it or not, ie National Bowl-O-Mat Corporation is a very valued customer of the Brunswick Corporation, and we here at the home office are quite concerned when aggravations arise that cause you to be unhappy. 1 also want to personally thank you for the nice commen [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385003_2160%3A06. Public record. Not legal advice.