Appendix — Federal Trade Commission v. Texaco Inc.
Supreme Court brief1968
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TABLE OF CONTENTS
Volume! .
Complaint (January 11, 1956) ....... : elias esta wed
- Order Designating Hearing Examiner (January
Answer of Seaventenk The Texas Coaupany
. ore 16, 1956) seageaneeeneenedipneennernnnnsnnenen
sone of Respondent The B. F. Goodrich Com- ’
pany (April 16, 1956) ...............-- panne
~~ .Order Sustaining Interlocutory Appeal (Novem-
oie epvtsriintinve
Exception of Respondent The Texas » Company
(December 7, 1956) ........:-.:::ssceescssseeessnegeaeeneeeens
‘Exception of Respondent The Bi F. Gevarich
Company (December 12, 1956) .. PERO ice eye
Motion of Respondent The Texas Company (De-
cember 31, ine): L ccecaciio risgonsonspilscgrinnstiseorrentopiey .
Answer of Soames eenvcting the ania in
Opposition to the Motion of December 31,
1956, Filed on Behalf of Respondent The
Texas Company (January 8, 1957 D ivinhoed ;
Order Denying Motion . by Respondent The
Texas Company for Disclosure of Names,
‘Addresses and Employers of Parties Inter-
viewed But Not Called as Witnesses Asana
(BT 9, 1DET) oecrecceceonecccsssssessnvecenscensesengiesnossnnenseee
JA 23
JA 26
JA 27
JA 28
JA 30
4 .
cles ie II
Volume an A
Motion % Strike of Respondent The Texas Com-
pany etal B, 1957) ees tecsegecnseeecssneeeen
_ Supplement. to Motion to Strike of The Texas
Company (November 19, 1957 I ieiccansigimMaacess
Motion to Strike of Respondent The B. F. Good.
rich Company (December 23; 1957 ) TRS
Order Disposing of Motions to Strike: Certain
Testimony and Exhibits Filed by the Re-
_ spondents (J aunery 2, 1958) ell ipa ode STN
Motion of the Texas. Company to Withdraw Is-
sues and to vial Evidence (February 7,
_— ARRIOLA eli MARE MOD Le aE
Order Denying Motion of the Texas 0 Oonipatiy to
Withdraw Issues and to Strike Evidence
(February 24, epics ee aren eee
Interlocutory Appeal by Siiiedlaces The Texas
| Company from Order of the Hearing Exam-
iner Denying Its Motion to Withdraw Issues
and to Strike Evidence (March 6, 1958)
Order Denying Interlocutory Appeal Cfarsh | 26,
ne
PPE HEE HEE HE EHEEEEEEEEE HEE EEE EEEEEEEEEEEEEEEEEEEEEEEEEEEEEED
" Proposed Findings of Fast and’ Conclusions’
Filed by Respondent The Texas Company
"(April 1, 1959)
hha ae)
" Proposed Findings of Fact, Oonaiystoais « of Law;
- and Order—Counsel Supporting the Com-
oe (ApH 1960) pete al
JA 100
JA 113
9]
Ii!
Volume 1
Initial Decision (October 23, SOO isis cinihist
Appeal Brief of Counsel Supporting the Cems, 7
_ ~plaint (Page 23) (ebraary 12, 1960) ..........
‘Order Remanding Pr ding to Hearing Exan- :
iner (March 9,- BD caiidisinateetencaipinnsaeeninn 7
Ceane s of the Commission (March 9, 1961) . aie
Order Setting Hearing Pursuant to ‘Remand by
the Commission (June 20, 1961) ............ sapdtich
Onder Cancelling Hearings (July 10, 1961) Secg i
_ Order Directing Proceedings | on Remand to be
Conducted Expeditiously Pand Setting Date
for Filing Initial Decision (June 19, 1962)
Order Setting Hearings sieved 27, 4963) degcodieald
Motion of Respondents (Saly 2, 1962) . hitenasiag a
Order Denying Respondents’ Motion to Cancel
Hearings and Requiring Certain Disclo-
sures (July 11, 1068) ..:...-.:.-.-0c0scecrsseinors saben
Tnitial Decision (September 2%, 1962) cue!
. Petition of The B. F. Goodrich Company for Be-
view (October 12, 1962) sense Lepladuiaresnadiaaieete
Petition of Texaco Ine. for Review (October a:
1962) (ssoutpasecplasieoscpeetanestveenanepdiarenideceesd sseenennean :
Order Gra ing Petitions For Review ies
_ ber-8, 1962 )nscsecssecsvocneeceosovseternborsesuseascenusvedenners® :
a
% Volume I ©
Exceptions Filed Pursttant to Rule 4.21 on Be-
half of Texaco Inc. (Formerly The Texas
Company) (January 8, 1963) Sebati ee ee
Texaco’s Motion to Disqualify Chairman Dixon
(February 18, am)
Order Denying Motion to. Disqualify (February
26, 1963).
SOOPER O HEE EH EEE HEHEHE EEEEEBEEEEEHEEEEEEEEEEEE
: ‘Minami of Chairman Dixon in Response to
the Motion of Respondent, Texaco, Inc., .
That He Withdraw From This Proceeding
| Motion of Texaco Inc. for Leave to File Memo-
randum Amplifying Answers to Certain
Questions Asked by ong gag During
Oral — (April 11, ee
eee eee eeeeeeeee
Memorandum of Texaco Ine. Amplifying An-
‘swers to Certain Questions Asked by Com-
missioners During Oral Argument (April
oe he sors ee |
< ad
Decision and Order (April 15, 1963)"
Peewee ee emer eeeeee
Excerpts from Testimony
FORO EOTHETEE HEE HREHEE EEE EEEES
Petition to Review and Set Aside an Order of
_ the. Federal Trade Commission ( Texaco
Ine.) (June NI iin sEpassirii cccwstceat coveted.
'. Petition ae Woview and Set Aside an Order 0 of
the Federal Trade Commission (The B. F.
Goodrich dren dd (June 17, oe
POR RCPS EEE See PES Cee eee eee eee
PAGE
JA 27 -
“JA 287
JA 290
JA 291
JA 293.
TESTIMONY ; “Side
Volume I |
Witnesses for the Commission:
| 4 PAGE
Maurice A. Wolfe: 2 5
SEE nak. pnneniiceononannalenl JA 307, JA1317 ©
Cross ..... Se me me ory nae? JA 313, JA 1322
I eco oassimuceast JA 315, JA 419, JA 1322
PROCTONE ss uiesecccetcenesensootiesoscorie scedennness JA 422 |
Charles BR. Froblin: — ,
ES EEA a ries: eT. Stee JA 318
1 Ne ame EE rs Es ERR JA 319
Ben ‘Halsell : : | :
. NBN sisccsnsgsennesess ausiscticcsaghttael JA 322, JA 1310
I Scooters chaseeaieoeens sesseseseseee OA Bad, JAISIG ©
Redirect ...JA333, JA 397, JA 417, JA 1316
PINE sinicccdeesevenssnnsapshucemneheinttinsces JA 410
S. C. Bartlett: oats Bes
; BI is8csortcasoesosessoumtantsassnncntet JA 350, JA 1305
Cross. ......... ESM ere Sf JA 391, JA 1308
SS OE LCR OO. JA 396, JA 1309 4
George H. Glenn: war ro ye é |
Direct ........... rieneasevebeonersonvesnlanest JA 423, JA 1295
Cross .....:.. scuoncodiinernnesesnssonnpati JA 432,’ JA 1323
J aia A. Hoban: a | F
re JA 434, JA 486, JA1336-
BSS cathnssevsanvisssvnicinnatinaviy pve A 492; JA 1344
Redirect. ...... snoneestaosnebnvesysnnsseria SA 497, JA 1349 ;
Volume I
PAGE
James L. Doss
ak Eanes ee 52 eR 2 SR JA 499
ee wecuschisabbdesionas JA-513
NE Liclaassichucseacnsdeacdosurshitoasl JA 519, JA 689
D Recross sesheseeestevnsnnennngnonstonnnescentsssnse a. SA 6%
Donald J. Knight: a4 | |
‘Direct ...... ET. ads wee «=SA 521
Se er aR eRe JA 527
ee JA 528
Amie L. Castistn: = | |
2 OI oe heeptheosaasbeconsbiibie sigue S Ae 581
EERE Ni iki P cscenen JA 537
I et ea co eS JA 540
Hubert J. Reichert :
Direct Fh AS ae snssseccsehasonsesersoee JA 542
Arthur V., Richmond: ) |
= EINER SEE IS, Ne Scene nr JA 545
RI 6 fobicisisensinespsatains jsetnernernennene * JA 554
EEL Se ARO R - JA 561
J Josept C. Arey: Ie. faery er eaten
i> Feo a rcicideapsnpsonsedenncsahiseninioedtl ~ JA 563
a imiehibildonin JA 568
Redirect BSR Ras | Wee en nae ohh JA 570
- Harold A. Gehrke: - - & | .
oa a cae RUE heal Bed . JA 570
ia ore 2. sacoongaeys IEG Ba hic dor ac JA 576
asin iid caliscsdeedtinsnvancalbiemrunts .. JA 584
Arthur Edelson: ~ :
? gp ECE OP a IE PTS a JA 585
i a JA 593
aes JA 618
. \ . .
7 .
Direct | ....%%;.:..,..9 TROD eTI AE Fre Ce
\
BIE Sctcnssosaptisng Sine cicacaie sicosiaiesunda
Carl H. Olsen: dy, ht une a
5) - Direct teeeeeeseeens dedeoncatsésdansbeankbabnienshaneenae
Direct ....... SEF SPOOR ED) aD
Raymond P. Jennings: :
DABOG « .0ncroessocceriecrsnsosnsersscoossonsvosseiaccoune
Frank A. Brusek: -
Direct ........... renestnineestnaanqenscaiiieiilitlendsnese
Volume I
vt PAGE
. Henry*Trauscht : ' |
Digest - ............ adeno Shien JA +708
le oe Keniicicstlossse JA 714
RSI EGAN ER Bays = JA 715
M. E. Burgess: '
OORT eres eee ere JA 717
| I eichebiepionnscssscssscbiie hctteiaitdekaibovies JA 733
[ Redirect ............... hii eae JA 740
RE Taemieeaianteennnees iaK ds o. ‘JA 743
‘Glen Cramer: eho
ie SUIT (sie secbiccicaenaoptipuiteccsadeuiies JA%43, JA 765
| eens east sctiatiiaed JA TAT, JA 766
Redirect .........,..... SIS Ne JA 748
Clifford Backencamp: _ .
ASAE RS eae aan <a JA‘749
(SRST ete ieliiniadiiacabaie JA 757
RS SIRE AE Rete rea vce JA 763, JA 764
Tate, «RE een Tae A JA 764
Vaden L. O’Mara:
ES piiniietectc venetian JA 767
nn gS TR eG tet JA 771
Kenneth L. O’Mara: .. - *
"Diet seco bocciegpeconitaeiheast aieiiiaeakeads JA 776
. ‘y RE ee FS) JA 779
EET rer a Ren ee , JA 782
\ I eSisntocicansesbecidarcn hia iecncdabibiates JA 783
D. B. Underhill: Ph
? ES ar a vesnaiaaeyiatcoe dn tiedele JA .783
RR CS Niisdtnsepeskbadasiacs JA 792
bw
Iz
Volumes-I and II
William E. McDaniel: 3
BIE. sivccasisnsnplosndccancicandesdagtadleeitoen:
AE STI AOE Ea S Tae
Victor L. Toft: .-. |
ee, ae Si ccahaannvaiGaenpal
SSRI aR:
Direct. nae Ne Rea ee re » Mieke
Direct alsipnisaniondfeeanembienetel pe tiei
er
. of «f
ai MEE > cibasietbingoinsoveretdsnestsinbiavenebul Nes evctess ’
; . y Py
. ‘
‘
Direct ......... et ay bnceatiieipajianeniesy
Direct era” Att SEO ibis dak
Ted Olsen: © * =
"Perey Le “itnitago’ eS gos Nees PP
ie Ae ae Direct : (an eanipnpacanphinnonnctiniee spe SA 909
at ae ee ee lacunae stsinpivgin iT \ UC
+ tae : a " Direct | seeececeesee pendgererecs PTeTTTTT TT opdeoetie eovce 1 JA 924 =
hs | Direct eM eee ee. Bate Ts .. * JAe 942
: fe Cross ieitslaiolasriakesenaatiocsicuiel veaiAacte. ; Ode SSB
ee Redirect, seneonncnsinvlorenvesnesntacussta JA 965, JA 974.
Ose te Recross ie Sheet rtpapiaisncei oA JA 975
P
George Hoffman: = ‘ aac : Hava reset ‘ ,
x1. :
Volume H EE i
cae aes PAGE
Kelly McCann: : cts
* - CRO: | RR eminem JA .998
IIE cisestiestocloniestneed hcasScseaaabane JA 1002
me Ge DOI isicscstrenesetsinicientinny Ok
. © BeCross yon eseseiecssssecsseeeessneosnsvensstensnees JA 1009
© F. Sanford, Jr.: ae
OR age age JA 1010
© ROOT. naseasissessesthesossersecensesunengeorsesanes JA 1023
I inca ixintssnapicnistascnssbocddioesieniets JA 1037
D. A. Zimnferman : ~~ |
I odices witticiacsenetiied EE cinapsninlo ioe JA 1040.
BIE so. cca csnasinstaanstoorndvimaneaenapipmaieiate JA 1046
NE Sccdajsnsacisasiinsineonnaaieanonnconiy JA 1050
George Snapka: . erie oo
(Trees 11. cha cuunasnasnnssaniqganglinncmcnnaleliinon JA -1051
i: Sa nn 5 a dca atasicenieaionaialae JA 1053
MP. Bedingct «onions JA, 1054
Thomas James Meggs: = us
Digect ....ccsceessecessseereeresseeeeee Tames SA 1055
Leonard R. Akin: . eae
GRAS iee Rene cer JA 1057
SES SaaS ane mms eee LEE 9 hy JA: 1059
NR ccccsocossscnerseiens edvcnabeae JA 1061
Van J. Smith: oe ila i a
| ON MO Oe * JA 1062, JA 1118
Bo os cavtariscncesnnpsnensnsnenl lla andans JA 1120
RIIIIIEIS - csssncoasssidestabeponguvesnsotin’ Di. dasiees ~ JA 1122
PAGE
W. E. Smith :” | | ey |
£ | EEE tsenteetetincentiggpinntscnct ttt JA 1063
e . Cross ........ B eekigiiccdcclesnectoe aio JA 1070
BO occ csselsScesauveansinsees Pol JA 1074, JA 1076
BNI = 528 cindcsssnvinaicgiceneesinccttoaaivetion . JA 1075
John siiini Hussong: * a
Direct. ......... icibssinaliteiscwevie saiaadhccibie ~. JA 1076
ne ATE LIE JA 1080
Elmer W. Johnson: Pane =a
he | MIE Schscicsovwnsiasndevnnesierbnbshavensvonsenerbovilea JA 1081 ©
BEE. cdessitnincanians . insinetebeee Ghaiets sae JA 1084. °*
Lee Barton 7
‘ Na arn cs eiguamnonce ‘JA 1085
| ESTES anne T eo Pnrt JA 1092
John W. Green:
ERAGE em rate. ce hs Le . JA 1093
II ssc actns Candies Sannleincetiniaoiilntieaghtiilaobtan JA 1097
K. BR. Roberts: we
oS ila cca sabes cacamempcninlndcte JA 1099
TI iensentisnisespaioanearingenadrtsibesiacnath JA 1113
William E. Childress fe ns *
RI iniespiitehleapcenis esivees willl ssssececeere - SA 1123
re fssveermnsstiniesssh Se
ae JY.: er. oe | \
ARIES soistivssicsinsnncit agp vee AM der ... | FA 1128
RIE PIO 2 AER TEER SE ASS . FA 131
FINI was sesisansusuiivascnsieseagaaibllle ysr¥egsie JA 1134
OT since isis shiccvansnunssdacclbbannnsnc JA 1137
XIII
Volume II ;
Sano PAGE
C.1. Fitts: Fae eit el.
S| eerste one sraiacntthiaaaiases JA 1137
CLOSE eoneessecssseessntecssecsssesnsesesnneceenensnns JA 1142 ~
Donald E. La Garde 3 ie
PME saatnsasteiodisapegponsnesnesvonndcl sailed JA 1146 .
Ne cal eiliiAiNnieineionesen wacstebblibinitiases JA 1148
Keller F. Melton | ae eat
Dir eet oeeeeessssssssessesssseeecnneeeneneeeeeenneeeeee JA 1153
Harvey 6. Talley: | , ;
aS. chensoncravisoie ssaesntawnsstlipsellabensi JA 1160
es Sivsiiaceiniicemnsanetenieeiilis ollltss JA 1168
I _.JA1172, JA 1175
II =. nsucsveshenspesnssnesnsesaiciiitennentovns JA 1175
George R. Boyd: | 8 a al |
Direct .:.....-..-.-sc0sseeeee ee Oe Ce A eee . JA 1176
IE “ssinsicssndonnsen saloons seit eeincanaans ... JA 1179
Redirect... ois saheenniebiebitiad \. JA 1183 .
John D. Hulme | ;
i od ncadilasoph nbpkbbeonsebasneniacebiaasnananed JA 1184
RE ee ce Eo JA 1189
Sam B. Riddick: ! sae
ahs hietenninnnnpe easstinsneiaiipseniiliabitaon JA 1192
William aa Bridges Te
=e si onciessib a tinsanilsDOaa A JA 1194
MII pasnveorsnnrnanionsnssennsarennnssnnidicobesnbore .. JA 1198
is sicahanponnslsliel eee :. JA 1202.
i" 7s
aht
xIvV ,
Volume » IT cyte
PAGE
Richard Elias Tidwell:
fr MII <iccctchinsiseniseniecitidigniapiussagebioaligaebecumised JA 1208
e Cross ...:....... ssicbdeiMinsiabeiitiasilaciadacsiliiss ‘JA 1215
Solin D. Scott: ‘
: ORE SRR PE NOR reed ee ry a Ea JA 1218
I cai ae oe ie JA: 1230
a a JA 1236
BINED scitesnihiavassciceceidiiscntanchagomnild tempt JA 1237
on Gilbert: ioe 4
SINT <sSincesnsinsnioninsbnstessccipemecineoasiatioe’ JA 1237
ON i ee ices Sea JA 1241 ~’
Guy R. Sinclair: P35 bX: aor fat
TODD wenepovniorvsesaisionsoorneennsisnitoimsesterssins Oi. Sa
Claude M. Chambers: 5:
I ints iaesnsstciaaecudstactn cata gE A Eats JA 1249.
H Arpin Koehler
ITER TINTS eee Ane te? JA 1249
Cross Scdiaheabspiiatietieclasbahictachasibatacae aa Le JA 1263
Abe Goldstein: : : ie
-Direct cocccccs povece de ccvee seteeeeeeeeeescereserens ecceece JA 1266
CD secesiitiswessess pinvstaninciteusiaitelalindial JA 1268
ERA aor Nite Ie Boa JA 1271
Ea IRE Scere mn cee ee oA a JA 1272
William B. Price <7
; | RRR E a IIEE BNE IE Sait JA 1272
RE ca Ware ee JA 1276
Witnesses For Respondents:
Henry M. Livingston: . 7
PIII setstiocccicisneneutons maa idihiabaaeet lenin JA 1351.
Cross ......... siscieciceaiivesismacieapesetiecttaiamialiedde JA 1360
; ME onsen singrereresonsie sees. A 1366, JA 1369
Recross. aad EEE ‘odasaas sitadanens JA 1367
Edward J. Midden: nO9 1 uy
* BO ssn nsyerspsnapsceen civsitpmdabemiaions ~ JA 1369
SPIE «occ cnsnpiiltt ibnnanesnronoviptassst hati bieecess JA 1878 —
BT, sit cnesnrsavcressvcninancenpeiinananiti vesveee® JA 1383
Recross ............:++ sain sibs JA 1384
H. E. Smiley
ne =— RMA DUERMO We a TER JA 1385
ON sisscerencosisinittinennpsncilelillceliies SA
PI oisnessesinnniasenssnpicnsansannd AOCibevices “JA 1
\FROCTORR nn. .cecnsrcsnscngerneeiecesene sui oe JA 1405
ee pa PNM oe oe / JA 1415
Cecil Baird: x ei igs f
- Direct scheibiensditeip gui SPENCE or ch eR JA/ 1417 ©
COD | ccnicvenscceens as Wrenner oot eocaw'e 8 aw - JA! 1422
Larry O’Brien
ee: | Bete ares OTT oawsvcovccescoese JA 1425
tA een ea eee ‘JA 1432
EES A Ca JA- 1433
: . ? .
-Tony Bonacci: ~__.
ba 7 III -cicscdsionansenm Dedodies SER IE JA 1434
PI incensed ccheonickogesiccnenie ERS eRe JA 1440
BI pecigeicicssaiccemnaessiaeesionloncobes ee JA 1444
M. A. Buntz:. Eanes
si cttsassnnnntdeinnocsion .. JA 1445, JA 1549
Cross... .... abba lapaabiaseated aac JA 1456
Redirect .............. icatidevesinohiabtonmantin ... JA 1470
Norman L. Jacobson: © . 2 cae 4
ms A a cae aa a JA 1470
MS = sciSpcciccsecsoonsevs essecanis igi edesSacde Suda JA 1480
SIN Sichicpsoclfonicioncssoetepasusecsitscestoonen JA 1484
Ross Rittenhouse: ; ; ae,
A | ae I ii osiiaetaneoiesncies Seeliticbiaaripien JA 1485
XVII
Volume IT ar
PAGE
Stanton Swank: estes fai
aaa tet lita ARIE Tate JA 1507
Herbert Bolte: : Eby itil Pe
SE sid cnisergovennsclcrstboniaass wid iittiblalsenss JA 1510
OBB ,-herneervesorssosecvesoocenceaiseenthibajareeneene JA 1515.
J oseph Novak, Jr.: ey |
Fo = ANE saisinnscbemopnssiiibarinndtcnenensili Febideons JA 1519 |
a il Al cere a JA 1526 .
Lawrence Starr: ee Ey
OS cha ca dloaseas ean C8 ON JA 1528
I — JA 1538
OTE TLE TOE JA 1541
Fred Qpomnay: + ot, tp
GS CAE PRED SR econ Bessie JA 1542 5
MOTE 2 WN LO JA 1548
Reger Wilson, Jr.: ou, aS aes
NS cebntibindelesaibertaiaddenta pee JA 1551
ECT Te POO aeherrs 2 ile JA 1555
Redirect EAE dD OS APE RAS TAS BN JA 1559
Paul B. Hicks: : Pi ;
TE Foo cscwsecere ROM Le JA 1560, JA 2167
ee aceite sesesseereee A 1569, JA 2173
OTETOCE ......2--norrcerennsoenseiorsnsrooese consti JA 2177
» John Nemec: : pS .
. Direct ........ saiptinansdundaaitiinie rosdtidedeolentee Ga an
sieseseeseeneneneonsinansognanunnannnansngionscsson JA A582 |
: " XVIII
Volume IT
.. Ze | > PAGE
John A.McGuire: «© .” | sy
” , | Tne |
III: cinccantoniehinsepogannempuditoalgdaabhtabonds JA 1592
Patrick Delle Grazie: le hg
; DITO. .02002000008 E- Ea na ee FS truer JA 1595
Cross [ESE DER YS te ete _ JA 1604
anes gg
John E. Roessner: — eth
| PITOC o..soeecsnissconnsccesocernvsonssscsseseiczesvece JA 1608 -
COBB «0... eareeeseeens sspisscetiacbiecaaiati Nae <.... OA 1618
Stanley Grelécki: ee :
ye IIL cscdnsisattndtibsiocdaneeni setisedtieidphdiorehasiinn JA 1620
| ERR, LORRY HF 7 4 < Bae JA 1643
Redirect SRN ee aE OC (SS. YY Bae JA 1654
Clayton Jackman: ,
a ee ie wy
: iis «NO Nn Amne PRPHEURINY UN 7) SSL DIY JA 1659
Loy Spradling | ‘
[— REReaSE etre s eo Leith. JA 1659
TI © 65 cia Puionesinpnninessinupninatehlatabdveligios JA 1665
Fred Pryor: e
MINI sicher csi JA 1666 |
TINE, piswestincdemestitos es ames St ee JA 1673
| Redirect ........... meen Seeman" Be JA 1712
Cleatus Rogers: . ase aes
Tea: 6 PR ‘isha ga eae JA 1675
TEIN - -ssndsostecensiniecmniasesssitecaesnoetethede oe JA-1681 -
x1z
. . Volémses Kuna 111 |
ae PAGE
Paul L. Mayers: eons | | eguyat,
: Direct :....cctecisecseceeecssnsssneencecetnnnsssesssesee °. JA 1683
TE .scnncanensesctstensievasenienbosatilelaetchoeies JA 1689
RN os csccsssteantaennscmmstaeedecns JA 1691
TIE rvccccenesniceestcsonssvenetomncbablidiabcblin JA 1692
| Volume III
Lowell L. Bates: | :
. Directg............--- Pe Be IE 7 ies AO JA. 1693
; | EAST ce AI sciasleiins .. JA 1698
| I aisccon sith ersocsscndocsensenedehiiniocitieaie JA 1702
Dale Retke:
| I oie Kanicicecennsulhcintiirsonnitmniseilecobabintahenies _ JA 1708
ae A ee eT TE oP JA 1709
IIE «:sssssscnsocvevcnvusereqpesncdqevinabnastohaden JA 1711
Gordon B. Patterson: | | °
a saisabiiel pelle coctesiaaaaaduiedens ~ JA 1720
IT oscccctsnsaisenisssessesnscnsnsnentiveltvineiies JA 1723
Arvid F. Tubbs: .
I ii cashes tinilacinaialaiang ssanbioicaiaaitil JA 1723
Cross .....0.5:0-. iid TNL
Raymond Holm: . Rene :
Direct cee eabicoadiios ‘sins Sh
CLOSE -.eseneeecssssecesenesesstescsenssennnnsscssnncsees JA 1739
Colley Burnett: ° : ; : .
I siasaiceedaisaniall tidsiepepsacincbubinneedbiniss _JA 1740
SIE = ccschacsunitesonsscenie sesahtvnblniakiiahictues” a ae
Mervin A. Hummel: | ans ~ )
MII Siconsbscirecevcivacssenbpivssastiieeen Bhicisese . JA 1750.
WI Snctecingosnacsacosestsnessetotanosssics ST tieeonre JA 1757
BIND csaiciccihscosisninclindgetasieioenegiesibiditia JA 1759
xz
Volume III a
A PAGE. -
. f ba
James L. Hendrickson: 6
I iene esisonsshiec ae
_ Oross. .:......... dinesniscohisennnidiatiakacalierbonaiad - SAT .
Howard 0. Whiting: a. |
Direct ........ AE NT TS EEG A IT JA 1780 -
SS EE LE AMOTTE e
Redirect .......ccccscienee Nipisngssacoael JA 1792
Recross ............... epoeseconnsceesoonnogsopecon ... JA 1793
~“\
‘Curtis Toothman: .
eee ead ered _JA1798, JA 1799
ME icicscstsinsincwikcichiciumninchiaanendicennten JA 1799
NOE ENT NENT Se ON Oi JA 1801 .
Vincent Cusiiatien , pices =
AES ea ee Re JA 1805
Cross ......... Sciam oie aaelattiuniallddehaiey ta JA 1812
ne as JA 1815
James F. McCue: ae ve ,. or
OOD cece ceenyecectrnnsonceserpsssockesogs Gly, MGIB
RET Re A sessed? FTA 1818
William Clyde Sizemore: ip
sf, SSRI anaes JA: 1821
I issicttshinissnissosacensenesetedib JA 1828
: ae Ome stn Te JA 1831
ad ae ee a JA 1832
Charles T, Liewellyn: +
Direct Sssadelvhbibecbnextussdsdibbisisrennadasad i ae JA 1833
I We eho - JA 1838
Ray V. Bailey ;
Re i ccties ident niniaenas 5 JA 1845
Cross ....... OE OCCA R OM Te ON JA 1854
“VEE,
Volume HI .
; : . : PAGE
Almon G. Lane: © | “ha |
ee ea env JA 1859, JA 1863
i Wiha ccs eas ttnitgethcs JA 1863
IIE fcicecccccnesses Po Naame SO clones ‘JA 1866
ge RES JA 1869, JA 1870
Beers. .........eccecreores siicasmen lll Aeveeee SA 1869
R. Leo Leonard: -. _ |
"x MINI hovcenstithscsinsnniieeunssiemomeniipesieeuatitaas JA 1870
Ce sisinnsinciag dealt JA 1873
Harold Crawford: : ore
RT eT I S nstesuaesvcsiubesiiplanaites) Sane mn
. MII sciscicesaesicsnees ibinaieccdalcanenseteielambaeds JA 1882
‘Arthur Neufeld: 9 | icc laakas
ERE Seman rer SM NON EE JA 1884 -
I ssiccacesanyntetece I ONE RNS AD JA 1892
OT EC Greer JA 1895
Max Edward Mandell: ok
MRC MET CI JA 1896
iS sss lus pbadadetataledan JA 1901
| ee ee JA.1903
A. James De Ambra: oe one
NE ee — >. |
ee eee eae ae JA 1911
Pierce N. Johnston: ous,
a eae Sibi acai JA 1915
SUNIL jscssncseceteinepisoadummabcopasmaibonkicteds JA 1920
William Linton :
FID Ticscinacsdestisaanesaicaodeiiianscitianeealoade? - JA 1923
ETE Cee OT ee JA 1930
-.
: Volume HI |
ee : PAGE
Burney. Barker: | pmik |
; ERT NEC CE |e
Cross ......... I oe Fa JA 1940
_. Milton Ellington: a : ie
| Direct. :.......... Weikentar cette RusatbubsosT bean JA: 1941
STINE sxivhcestssionannycionnnanssionesl gaeneinee ' JA 1944
, Alfred A. Franklin &
° SRI beceisenversasnnicianstasiisa a BRobcnas JA 1945
fross NACL DANE TESNE CHOY ORT PANNE ROS. <, JA 1949
Lee BR. Moss, Jr.i 0 Sis Sara ieee
ae Beeenenrernennenree weoveenaabilediiboadsces . JA 1952
fF AE Bstsigesinnionesiensinisenanins aghienihiie JA 1959 --
ed r06t a iensgeciniicnencinnnentionn, CA 1968
- Recross ............ phninted estsesacles Aptos JA 1967 —
O'Neal Embry: he ne
| Direct......... ss silliness lini eeus caste ieee ‘JA 1969 ar
Se ee oldies AIRES TEE As eo!) Sr ie
on : Redirect. ....... nies sesncansenee bbs Aa (Ronee JA 1978
P. K. Conner: - Ri ows wae es
- Diréet .......... sea Seon oe A tae OA 1979, .-
a nnn worsens dole ieiabuagiiioee —-la a
| re. emer wrens ssatecaghoveitoncnecseente JA 1986
Cc. T. Fitts: ; | e
ck, = uate EE eP a a Mears | 9! Weddeskias JA 1986
RI cigocesssnivsscdssescinivelpasainsil teAUecinstas — JA 1995
RII sisi tiinisiRiacespubabnensstsantivabandatersess JA
Bite | AF glk
ined: ip | _“RRARGEIRmmemarenenen wees: (13 FS Ea JA 2007
a CARO TOn TOE Monon Unter t ce > eam JA 2017
5 EE ‘sist-ststsstssbsasscin shins JA 2031, JA 20384
— «(ee veseeeee OA 20383, JA 2035 -.
‘iia | > ee
=
XXIII iy Si a
ae Volmell. .* |
5 | | 4 5. PAGE,
B. ©. Chiles: ee
| | eee Sar Se
I errr ckueetcmanyuniouais Since WO, SN JA 2040
BI i iciscssccnsdnepjnsnages MMM ShecscSboone JA 2042
.. H. Worsham: “
RRS Re ee eet ie ga JA 2042
ais hesnciasa assassin be Le e eas JA 2047
clas cis acsttnesniprlenainasidionianes JA 2049
IE. ss Lsisesasnansonnsiibabsssnnahnceansslgies JA 2050
Kenneth Heth: ° ; 7
I cstceesosvsosussnsiaraseniodtecaaiiortevesorsssin JA 2050
BI sisdinscpsssitonsncsarnvarsvecaenn coke a ae
RA INRA VE OT AIR JA. 2061
Charles W- Moore: :
EI isis sclesaicsiosoohechabunibechinseaiacs ~ JA 2061
BN casnsuapcssinastcnasiasaterascaunscscond ieacanigi: JA 2067
Orville L. Jernigan: if a ua tt ;
ss sssennens ila cssaiseiatisioi vente, SA 2069
OS ohn ates | ane :
BEERS prorat peneereronen ret eae . JA 2075
sae EM sso catesisdacusonscelad a weet JA 2083 ©
I ccs xahenncanicontlits .JA 2086, JA 2087
Recross ........:......... Wem meee
L. H. Daniel:
8) |
+ XXIV:
Volume III
ee . er By . * PAGE
Charles Eubanks: | Pe De : rey
- MOR ip nnassncecnsipenintit Asaheen JA 2106
Sees III swcsnesosennes LTC ka
Redirect ............... SANTOR: Eucscenisene SA 2114
A, Ls MeAnally: oe eee er
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CrOSS ee eseseieseeeeeectecesssssseentnnetecebareennet . JA 2126.
K.R. Roberts: ee
PRE iccacstkesthceieiciaiil ‘J A 2129, JA. 2138
Voir Dire .......:..... eke uantanaainnds JA 2186"
PIE coisas lelaeltionse Regen tlcaomiaaoaiiiele .. JA2149 -
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John T. Bolger <t Ore
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oe. eee “~ ee
~ Volume FI
a @.. eet oe ; PAGE
oie 3 oS ee ee
DIO ic pavnsesv scp nsnestntnsroeate ie mie JA 2210 .. —-
GID | ncnnnthssscosnnrones siainnetiantiipeonanatl JA 2221
W. B. West ° | |
Direct. ........., hha natcanceane liaise JA 2223
EN. csasanieiapaaieieaeleemenll JA 2233
Reagan Fergusdn, JY: : :
‘ 2° EMI cctescante RRO: aOR SR cidmaldouaa JA 2235
oe : Cross ......... cieshesionaessinsiioeocpomminaae ame 2242
4 EMA LE SONNET Ee nT on JA 2243
George H. Glenn: . . aaa =
See Divect ........-.-eneties a
.- Voir Dire .............. snsaaadebehloniiietiiia JA 2263
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a Voir. Dire ............. a ME he OER: JA 2287
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Voir Dire. ...::..:...... JA 2231, JA 2334, JA 2340
+» Ben Halsell: Ree a
a *. - Dirett:......0: pp ee toe tee ee eee JA 2341
VEE DITO ccoee sony. saeciithcchainoeabsiliig a
Cross... AOE RE eee Ayer SD ai ae JA 2371 3.
a
A .
: | xxVI
| Volume IV. ‘
COMMISSION’S EXHIBITS |
PAGE
Fea aaa RE NIRS etn ER Td JAX 1
ee rae on te “JAX 2
ena Bp lo snlesotueiniciedac , JAX 8
Sas. Se eet Se a ee JAX 4
I hc ans thyeus as etnessanin JAX 5
SSM RES A a, San Shoat nae JAX 6
ee JAX 7
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ee JAX 9
"Seale Linge ica ee JAX 10
_ EAT AEP GCE Ne teil eae JAX 11
ie a a * JAX 12
Re On Olen Meena NEO FAX 13
ae A NT ices rt TE wu. JAK 14
SAE cee co a ae re JAX 15
eS SRE ae een eee Bescigebien JAX 16
dia aati ee JAX 17
A “WA ae tee ee ‘JAX 18
PE Gicsbaabccceiabinnidaitioand TNE A Resets Biataoien JAX 19
EB RRR EAS LAE a n.. JAX 20
PN Re sitet ctaancla cacietnsconlcie necpregil JAX 21
cae ELAR OR See
en JAX 23
XXVIII
P Volume IV”
iS EES OTE RT AOL RE TE JAX 148
Se 4... sichais seems vimiecumencstabsills JAX 149
ea ie a ‘ee! CN “ JAX 150
eee RR eae cate! JAX, 151
LA, CEERI JAX 152
SSE tana ee AOE IS ET NE “JAX 153
I oo erssceon Oa ie Cea oe ‘WAX 164
ESRI arn? Seton Daeg SU JAX 155
i aeskcnigarineie ncnitonpamanelll go... JAK 156
SE EGE SSM RR OA FR JAX 157
a a er JAX 158
0 PRED a eon eee JAX 159
a sana piiencagetiii ese SAX 160
(RRS RET SIS, RU AER “JAX 161
102C .......:... i ccipesdcrpraetinnansse sis ideiicaleinscll JAX 162
Nati caiicsiesis ee A hal Sh la JAX 163
ELS ROE Oe enemies JAX 164
EGC eee ee JAX 165
TRUE aio aeons eR ae ATM AEN JAX, 166
RCO SES ane OED ter CBN NER JAX 167
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VolumeiV 7 ce ee
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I ssarespsncnlas ih hiss acinus JAX 265
ED snSusrdainiscinnancapiteonoisninsaniaiii JAK 26° - 4
Bai csccsnenscvnldninnncninonsosabipeaiinienineneitae . JAX 267
is stcmnsnicd osiaantshenerorstseiaiieniint JAX 268
MES nist coiniiinonnstiesnstoieecorpieptelit JAX 269
RII 5.5... Zoo cnsciansinapscearbseabonssuncniiicalcaiaiian JAX 270
SS ORR een ee eae JAX 271
| RE TC iene Bees JAX 272
iD i scsteeemnaiiaiannaiinte JAX 273
5 sensanicraleinnieconiosegliedleianamaireli JAX 274
____ en EC <csaruiapallpam lei JAX 275
I, ds Saisecscnsicsintangeariniee <saceaiiisictlaguaiiaicaaaamuiias JAX 276.
I i 2 iascsloasielionl sptaataanaceenete JAK 277
ac aeencieconhiemninenielaie ri JAK 278
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DOTTY niece sessssseslsieesnnectonesonnsenngeesccneneenesssosnnnonsnnnnene JAK 290
i cc aenspsttontenss acireemanainnee JAX 281
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INN Js... scasisisstiitecliamaneniaanieauoaeaaaniaa JAK 283
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A a ne Mk RTT NE Ne JAX 285
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RTE TTI ET JAX 287
BU faa seesstocnesgnonnserssnnnennnpnbsteeennpenctsentiinnesnmenriteni SAX 288
OR ec snierserinieninnieinnicnianainesinesiaaete JAX 289
‘
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Volume IF é
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AE Rae a nee Ae Ae JAX 290
SS SE i ee See cae JAX 291
ERC, aaa PIN JAX 292
i csisa iecterinientseatinsisionindens, scab JAX 293
SERRE semen ee asreS tee terete JAX 294
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| 5 OS iene cnn SAK 296
SEGRE OO near? LCL OS SEE JAX 297
298 Chae 2 Scat dts JAX 298
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GEES Soe |e a eee JAX 300
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RESIS enn tele Pe JAX 302
ESE Se ac ERTS SOE Le JAX 303
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BT sisiasaoennseannccseesiinipmsndnieinsoiasnees JAX 306
913B-1 ........... SLE RPA LL ST JAX 307
SEEN Teena ae see ne JAX 308
EIS ane Oa cee - JAX 309
EET A _ JAX 810
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eC Samar JAX 312
|S ae ean TONER JAX 813
5° on tae wa
| ZLIIIm Ot” Bes
. Volbmes IV and” |
on fs , 8 Bel
CE TES
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re ee Oe OR EET EAD d IADE PET “ue JAX 416
GOT acer i, eee FR Baie TE rs FAX 417
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pe ae As OD eR lo ET ‘aang, aes
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2 EST CRE CT MAE ALE ie SI ~ JAX 421
es arinnenentinnne SAX Ml
Volume V ‘oi | ae
; RESPONDENTS’ EXHIBITS § °°’
Sees ee ie CIEE Ce Ee . JAX 423
«PHM tit ccnnisenionnnientalilachtitneliateidaaie JAX 494
i le FENN TaN IR, JAX 425
DD cba heenint uae soit POS the JAX 426
Re ee eR LARUE ORONO eRe OO JAX 427
Bee Ts WR oe Rs. eR ote JAX 428
We sis cissdthniscinhelicciiiialaiasabiianiilens Oras ‘caneneilieiladailans i JAX 429
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a LD EIT RETA TS PES ae _ JAX 433
EX AL: ccciantsriuciiaainasimiiibdeiebidamees JAX 484
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Oe anne Ean biome A Re JAX 465
Rte SRE aR eRe ot NRW oe JAX 466
FA oasis sennenipninnncniionnsansnnseninnnniin Lannnisnsenatiniiiniornentinies JAX 467
Sta Near ROI Soi Nosaeea NDE ORR Be JAX 468
DBC ae dyecvsseinnenieneenaenenernenstinnenitnercenneneesesn _ JAX 469
nee cee pcoeitinielegnlaiaiaanhigental JAX 470
| BEE Meneame AL cA RCS eek eos One JAX 471
© e ANUP IRE aeRtict oe mee an Neer RENE JAX 472
Se Se Oe ane Meare ne ipiieapaalinCataiche JAX 473
ee ee saibeauiaskecs JAX 474
YER Melee oi Nate Re isliny Honoree oe JAX 475
eT i a SEAT ROTO aie Mean ea? JAX 476
SSR aS amo SMe Pes oF Maer A JAX 477
300 sei eadiieil JAX 478
Re 2 AEG DE -eanitoe ieee eR TA Ree ‘JAX 479
IE chs isivscsnshiattiehieadateasiaiaindicileieianndennatadiass JAX 480
WG Eki cn Baie SME BEES EIT Pan “JAX 481
ES eRe RP OE SOR ee ar JAX 482
31 . iaitaasinniicdigendiiin TAX 483
~ S2A. .... ' si ileantinncaaaplenetions JAX 484
Volume V- |
| \ . PAGE ~
ag a EER Nie eee a JAX 510
CE ee oe aM Fe JAX 511
5 a Eee a ee eae ey JAX 512
a ee JAX 513
a ae JAX 514
| EC anne ere ier es ‘JAX 515
AES ES SIRS eee tee Ne aens Tine sa JAX 516
EES ERR ice ORC ry JAX 517
ey. Te ee ERS oa - JAK 518
Be i tahasacicinanniniinsoianid Kiennacdeieeamee _ JAX 519
5 ae MR URR A iste See Ss JAX 520
NT aaa ORR en IES JAX 521
ES ESE eee ee ee JAX 522
aici Ae JAX 523
a Gao eee JAX 524
a iighishipuiee eat wh (JAX 525
4A FEAST CRON TE LER TE _ SAX 526
so ida cusses spt iieetouk canna JAX 527
ih iceiiniehcenisinisnitgindesaaiasien , JAX 528
+ EL APR Cee ‘JAX 529
RMS ccsscioniincespeniincnersvoctmegiiehentniassnieenillslae JAX 530
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|S 5 en eT Hee JAX 532
sk ao eae strtationi eta ctae, JAX 533
|S 6 nnn ace BP ae JAX 534
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: eae xuviri -
Volume V |
: PAGE
I ickicks ispecies cidade ideibaaceaiabiaabcamuaideaailicrend JAX 535
PS MN DMELE CENT SHUN DR Ie nore JAX 536
aye ee Oa paaiiatoiaibis eRe ete JAX 537
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cca caren ee JAX 539_
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FIN: iccih ceieeaseeniononninanbi mantel ‘JAX 543
SSL ee eS elctie eee Mareen eran JAX 544
We 2k. cineataaneianannds JAX 545
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a ee te JAX: 547
74-2 , — JAX 548
MOE Fi cian eared eeionadaeee ‘JAX “549
a 5 RRC nT SSeran Acs JAX 550
EE AGE OR RINGS eT AE 5 JAX 551
SE, , sceninscacnnaiasiapesaniaanissaabianimiaepelinbacgue JAX 552
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RT acacia ae JAX 554
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WE Bcc Pearce ae enn JAX 556
FS LR OTM JAX 557
IE 5 crcotsioieseuninenennnp teats JAX 558
| ee Reno Arete eT ‘JAX 559
xXLIX
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PMO RM ete ee JAX 610
SEIS eI DE bo AF AOA RR EO ERS JAX 611
ER RASS LCE eel re GS JAX 612
EAA ae EST NOM CN Te ae DAES Mar Teen JAX 613
Ee ie RRL EME A nee SNe JAX 614
Og ie ae Se JAX 615
OC ION RO ON eam JAX 616
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od ahi alee wae JAX 618
SATO AMAR Le ERE JAX 619
ERAN aT ACLS 1 SRR TEMS Oe JAX 620
15 ie aR ee ee eI Pasa RE JAX 621
J Ais AR REO OES Nae eRe eT JAX 622
as er ee a ek JAX 628
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War.
JA 845
Bernard .F. Kossek, for Commission-—Direct
( 3412). BERNARD F. KOSSEK was thereupon. dalled
Se
duly sworn, testified as follows :
Direct examination by Mr. Dias:
Q. Will you state your full name and 1 Vitals ‘aikidel,”
Mr. Kossek? A. Bernard F. Kossek, 1530—**N”” Street,
Lincoln, Nebraska. . |
an Will you stato your’ place of employment A F. D.
Wilson Sales Company.
Qa. How long have you been with F. T. ‘Wilson A.
Since 1939. .
Except for a period in the Armed Foroes-during the
Q. What: is your current Position ‘with the company
A. General Manager.
Q. And how long hav held‘ that position? A.
About between three and four’ years.
Q. Prior to that time? A. Prior to that T'was Pur-
Se Se ree reer
(3413) .-Q. What type business is F. T. Wilson in? A. |
Wholesale of automotive parts, accessories, be co and
equipment.
Q. Do you handle tires? - A. Yes, sir.
. Q. And the brand name? A. Inland?
- Q. Batteries? A. Deleo. |~ ; ;
Q. Can you name some of the more.popular accessories?
_ A. We handle Champion spark plugs, Purolator filters,
_ Sealed Pour Rings, Auto-Lite ignition, Carter carburetors
—parts, of course, Prestone anti-freeze. - 7
Q. Do you handle repair parte? A. Repaiy parts,
Mauka I didn't epecify.
&*
.
JA 846
Bernard F'. Kossek, for Commission—Direct )
/
-Q. How about iteme euch as muiflora and shocks? A,
AP mofflers, There are several lines.
Q. ‘Witet fo'the cclen texxitucy of yur company? A.
We cover the southeastern corner of Nebraska, roughly, 19
- gounties, and we cover from the Platte River—that js the
Missouri River at the Platte—clear to highway 81, and
south to the Kansas line, that section of the State.
Q. Do you employ salesmen? A. Yes.
(3414) Q. How many do you have? A. We-have six.
Q. What class eustomer do you sel) to! A. Car dealers, —
service stations, garages, some fleet accounts, if there are
, any, implement dealers, dnd & fowy bardwar’ and accessory
stores in some of the emaller/ towns.
: Q. Among your service etation customers are there
any Texaco and Conoco stations? A. Yes, sir.
Q. Do you sell to any of them? A. Yes.
. Q. Do you have any idea of the number of Texaco sta-
_ tons you dell to? A.. Well, I would say roughly between—
around 50, probably. Scattered all around, 50, because of
the: number of little towne that are in the southeastern
part of the State. That ie rough. It could be a little bit
; more or @ little bit less.
Q. Do you know generally speaking the type product
you sell to them? A. I think the main things we sell to ©
‘them are our general eupplies, mufflers, ignition parts,
seat covers. And, of course, we sell a little spark plugs -
and maybe octasionally filters. We sell a little of those
lines. mg, lca ll alae tn
cellaneons eupplies.
.
e* @.#6
‘sis, Q. Do atte any figures showing sales to .
Texaco accounts? A. I have copied some down for 1955
- -
r
“JA Sr
Q
Bernard F. EK ossek, for Commission—Direct
Q. Will you give them by name and address! Po ae
‘ don’t have them down, but I can give you the addresses as*
I run them off. I-know the addresses. - oe
.. These are all in Lincoln. These are Texaco statipns..
Diane Ellison, -at. 17th and South. Do you want! the
figures on each one as I give them?
Q. Yes. Do you have the figures broken down PS
types of. ‘products purchased by the company? A. No.
There is no way of breaking down individuals without ~
_ going through a minute study of their invoices.. Our
records are kept as the accounts are posted, on a Cardex
(3416) record, and we carry them by years and months
on those,, but it doesn’t break down the prihang pur, 7
chases. + ya
“Mr. Lorenzen: Will you be giving them for two
years? :
The Witness « 1955 and ’56. NP sh
Ellison bought $2,500 in 1955; $2,000 in 1956.
Then we have Larry O’Brien. He is at 10th and
. South.
The (Wiheins: In 1955 he Soma: $5,040. In
1956, $6,400
‘Then there is Watts Texaco, at 44th and “0.”
‘In 1955 he-purchased $130. In 1956, $60.00. ~~
. Jerry Adams, 10th and R. He purchased $140.00
im 1955; $42.00 in 1956. a Oe
There i is a Dick Brown, 53rd and ‘‘O.’’ He was.
not in operation in 1955. I can’t tell you. He opened ~
up in 1956, sometime. He bought $20.00 in the time
of 1956 that he was open for business.’ ~
. There was a Byam— -y-a-m—at 48th and Cal.
vert, (3417) I believe it is. He came into this
' station sometime in 1956. He purchased $160. ~
off
PA
By Mr. Dias:
a
‘ with’here in : the City.”
Te a
-~ao -: : : 4
Bernard F. Kossek, for Commission—Direct
- Bob Martens, at 1o@and “DL,” ” He — $1, 800.
ng in 1955. $1440 in 1956.
_ “There is Knudson. - ‘I believe bere are ‘two :
brothers but I don’t have their names.. They are at.
- 40th and ‘‘A.”’ Purchased $650 i in 1955; $210 in 1956.
. Legan—I don’t know his first name—at 16th and
“«9.?? $100 in 1955; : $50.00.i in 1956.
Jack Matthews, on North 48th, - about ike 5500
block. . I can’t on eross street name. ~~ in
1955; $850 im 1956. © :
There is a Heidtbrink. r don’t iow his frst
name. He js at 40th and South: He purchased $160:
in 1955°and $150. in 1956. .~
Conover Texaco, at 63rd and Havelock Avenue.
His purchases.were $25.00 in 1955, $60.00 in 1956.
Kraft Service, roughly 900 North 16th. $302 i eee
_ 1955; $706 in 1956..
There are several other Texaco service stations
-in town that we have never sold anything to so I .
~ didn’t write them down. . ,
~
. 2 That ineationies a That oomiblitties’ all. that we
5 ie sold anything to in (3418). two years.
_Q. These plus the few you say that ye: “ALI sould”
say there are two or three. I looked ‘in the *phone. book
ee and there are two or three names ‘that we have never done
any business with..
‘I think they are. sped new stations,
but I am not absolutely sure,
Q: Doés that constitute ‘all: the. Texaco stations AL
That is all the Texaco stations ‘that we. do ‘any aenaaae
+
TA BA.
Ps .
Bernard ine for Commission—Direct
(3420) » By. Mr. Dias:
_ Q. Do you have some idea of-the number of customers '
‘that (3421) you do business with?. A. In our overall
territory we must have, in - the neighborhood of wit ‘to a
i thousand accounts.
. Q. Of all types? A. Of all types. That is everything,
seta and‘large.
Q. ‘What do, you consider as a small account? A. I ani
, talking about a small account that may only buy maybe
“once a month. I would call # small account anything under
$100 a year a small account.
The $900 and $1000 includes every type account, said ’
-ipg the small ones, and there are sacs a few in these
- small towns. ~
Q. Did you say that ander $100 a seattt.- A.- Under
$100 a year. A hundred dollars a month wonld be a pretty
good account for a filling station. - It wouldn’t be.an excel-
lent account but it would be fairly good. ss.
Q.-Can you state what these sales consist of generally? --
A. The general sales pattern is for. these service stations. °
to have mufflers, and where they have a mechanic, shock:
absorbers, ignition, any. motor parts like even carburetor
repairs where there is a mechanic. Some. stations have -
‘none. And they will buy seat covers or some type of floor
mats and maybe windshield wiper blades. I am trying to
_ think of all the different miscellaneous things.
Q/ How ‘about tires and batteries? (3422):° A. ies. .
and batteries there probably are, out of the number I read
you, there might be maybe four or five in there that. have
bought, tires occasionally. But they buy them ‘two at a
- ‘time. This would indicate they,were sold.. They were not
-
“buying to stock. In.other words, they were buying them —
ona — to hand or mouth to mouth basis. .
ea
JA 850
Bernard F.K ossek, for Commission—Cross
aw
Cross- examination by Mr. Barton:
.Q. That pew penoiliaa station that was taken over by
Whitney, you ‘made approximately $1,500 sales the first
year he Be in there?’ (3423) A. Whatever that figure
was. *
Q: $1,455? A. Whitine the figure was. That i is what
we sold.’ This man was very hot, though, on seat covers.
He must have sold the type that you can ‘put on yourself,
He sold an awful lot of them last summer. -
Q. What kind. ‘of seat covers were those? A. They are
‘what you call these turks and linen duster.. He went very
good on those. I don’t know that he has a mechanic. I
ean’t tell you. But that is one good item that they have
sold. I would venture that he was our No. j account on
that item. —~ f
Q. On seat covers? A. On seat: covers.
« Pa ile .
(3425) Q. Of those thousand accounts or so that you
sell, hov many ¢ of them are stocking Inland tires? A. It is
hard to tell. I would say about maybe 30 to 35. 7
Q. Thirty or thirty-five? . A. Yes.
_ Q. By and large— A. We only took thie—we have had
. them beford but we only actually became actively pushing
tires in the-& ummer, just last year. In other words, those .
35 have all beer signed since the middle of this last year.
Ne 19561 |A. 1956.
*Q. Prior |e that time? A. Priar to that time © we
weren’t on—there wasn’t a proper cooperation, didn’t have
_ the proper’ setp-to give us service or anything else so that
we could afford to do any pushing. There was other mer-
‘‘chandise that the salesmen could do better with.
a
~
is
«JA 851
_ Bernard F.K ossek, for Commission—Cross
Cross-examination by Mr. Royall:
, Q Several of these. stations bay Inland tires from
Delco, do they not? (3426) - A. Somewhat. hee
Q: Some of the Téxas stations buy Delcocand Inland
tires? A. Probably, there are several. There are ‘prob-
ably several in both categories. I don’t know about the.
Delco. batteries so much. There are several I didn’t spe-
cifically state. There were tires I was en espe-
cially a minute ago.
Q. Maybe I can vinind 5 you of one or two of them. |
Don’t you—isn’t it a fact'that Duane Ellison, you sell him’
Delco? A: If we do sell him Delco batteries it is very few.
I would doubt that he stocks that.
Q. How about Knudson? You are not certain about
that? A. I am not absolutely sure. The majority of his
purchases, which run.a little over $100 a month, he has a
mechanic, and that stuff runs up. So that he couldn't put
in many.
Q. He couldn’t put many in theret A. He couldn't do
much selling of Delco batteries.
Q. How about Knudson? A. I don’t think we sekb him
any batteries. In fact, I am sure of it,
Q. What do you sell him? A. All we sell him is. sup-
plies. ;He will buy—his last order I — he bought some
Trico blades. es )
Q: Hé beught Prestone? A. He could hava bought a
case, but chances are only one (3427) case at a time.
All these stations occasionally will pick up a case of Pres-
tone. ‘That is not all of them but some of them will pick
up a case.’ But they would only buy a case at a time, I
_ don’t think you will ever find a station on the list that
would buy more than & case.
. JA 852
Clarence:E. Cornell, for Commission—Direct
Q. These figures that you gave, are there any sales that
are*not included for some reasons because they are cash
sales? A. No. Cash sales in our method of handling them,
. all cash sales are also counted in as sales.
. e |
(3431) CLARENCE E‘ CORNELL was thereupon
called as a witness for the Commission, and, having been
_ first duly sworn, testified as follows:
a
"Direct swaiiliniithet ie Mr. Boyd:
—Q. Mr. Cornell, please state your full name for the rec-
_ord. A: Clarence E. Cornell.
Q. What-is your present home address? A. 1710 South
48th Street, Lincoln, Nebraska.
' + Q. Have you been in the service station business? A.
Yes, I have.
- Q. And what gasoline did you sell, for. what company f
- A. Continental Oil Company.
Q. When did you enter the ‘_business—what was your
business with Continental Oil Company?. A. I was lessee
of a company-owned—Continental Oil Company service sta-
tion at 48 Randolph Street in Lincoln, Nebraska.
Q. When did you become’ a. lessee of that station? A.
' October 30, 1951.
Q. And you conducted there until when? A. February
4, 1956. :
(3482) .Q. Do you have. with you copies of your leases? —
A. Yes, I have..
Q. May we have them please?
Mr. Royall: Your Honor, we have a continuing
objection to this. .
Hearing Examiner Kolb: Yes.
‘“
JA 853
Claretice E. Cornell, for Commission—Direct.
Mr. Boyd: Your Honor, I ask there be marked
for identification as Commission’s exhibit—_ |
Hearing Examiner Kolb: 150. | , eee |
Mr. Boyd: (continuing)—150; a document enti.
tled, ‘‘Service Station Lease,’’ and it’s on the form of
the Continental Oil Company and it is made out to
Clarence E. Cornell, and it is dated from the 30th day
of October, 1951, to. the 30th day of October, 1952.
And since that has information on both mete I guess
we ought to make that 150-A and B.
Mr. Royall; ‘What is the date of that?
Mr: Barton: What is the date of 150-A and B? »
Mr. Boyd: It’s a one-year lease from the 30th
day of October, 1951, to the 30th day of sie sad ti
1952.
Mr. Barton: Is there a date on it other than
that?
Mr. Boyd: That is the only. date I see ° on it.
Mr. Barton: All right.
Mr. Boyd: And as Commission 1g Exhibit ba.
and B, another copy of a lease form. entitled, ‘‘Serv-
ice Station Lease, and it is on tHe form of the Con:
tinental Oil Company. (3433) It is dated the 29th
day of October, 1952, That is written in in pen and
ink, and down on the other part for the term of the
lease, it indicates it is from the 30th day of —
1952, to the 30th day of October, 1953. |
- And as Commission’s Exhibit 152,. a. document
entitled, ‘‘Mutual Cancellation of Service ‘Station
Lease,”’ and it is dated February 4, 1956, and is a
form: of the Continental Oil Company, and it is
properly executed by someone with that company.
_» ITean’t make out the name, but anyway, it is the As-
‘sistant Division ‘Manager; and the lessee’s name is .
‘Clarence E; Cornell. It is also- witnessed by, F. ‘D.
Severs I ee
"a
a
JA 854
| Clarence E. Cornell, for Commission—Direct
. “Your Honor, I ask that those be sanihie for iden-
. tification.’ . 3
‘Hearing. Examiner Kolb: a may be so
marked.
| (The hiilidiaiie referred to were marked ‘Com-
mission’s Exhibits 150-A and. B, 151-A and B, and
152, for identification. : :
Mr. Bazton: Could I see them?
Mr. Boyd: Certainly. |
By Mr. Boyd: *
Q. Handing you, Mr. Cornéll, -Commission’s ‘Exhibits
150-A and B, 151-A and B, and 152, are these the docu-
ments, particularly the two leases, you operated under when
you were a lessee of this station. They are only the two,
the other is (3434) a copy of the pepetion agreement:
A. Yes, sir.-
Mr. Boyd: Your Sleds I ask that these docu-
‘ments be received in evidence. -
Mr. Barton: I object, your Honor, on the ground
that there is—with respect to Conoco, I assume that
is within the C ee he T.Oik TF.
should: preserve my‘objection. . |
Mr. Royall: I renew my objection. |
Hearing Examiner Kolb: Objection overruled.
The documents will be received in:evidence as
Commission’s Exhibits 150-A and B, 151-A and.B, °
and 152, subject to a motion to riko by Texas
_ Company. 2 HD . d+ | =
By Mr. Boyd: | |
- Q. Mr. Cornell, with whoei at the Continental Oil Com-
pany did you negotiate the lease, Commission’s ‘Exhibit
- 151-A and Bt A. Floyd €. Severs. |
PS.”
Clarence E. Corgell, for Commission——Direct
> Q. And what is his position? A.-At that time he was
_ known as the City Manager.
| Sid ceagtains ales Salen Lok he hank hapetinliciin tsb
_\Conoco? A. I believe both’ times they were brought out
‘to ame already signed ” the Assistant Division Manager,
Mr. Hayes. sr
(3435) By Mr. Died
Q. With respect to the rental of the station on the first
‘lease, how was that'decided? A. I merely asked him what
the rent was, and they said one cent a gallon. I accepted
it on that basis. It was to be no bay rent or no set prop-
- erty rent. It was’ to be: based on one cent.a gallon of:
gasoline only. Then I asked them about future rentals,
after the termination of the first lease. I was informed by
the said Mr. Severs and Mr. Kiley Powell, who happened
to be present, that there would. be no increase in rent
because it had been Conovo’s policy ever the past years not
to increase rents. They had a policy not to increase rents
and I had nothing to fear in the way of future rent in-
creases.
Q. Commission Exhibit 151, I believe, indicates that
me rental was.a cent and a fourth a gallon?
Mr. Barton: 1 object. Exhibits show what they
show. I see no point in having counsel testify as to
what the exhibit shows.
Hearing. Examiner Kolb: There seems to be
some discrepancy between his. agreement and. the
lease.
Mr. EEC gb N 0, your Honor. The exhibit. it.
self shows that the rental 4 is a cent and a quarter ¢ a.
gallon.
JA 856
~ Clarence E. Cornell, for Commission—Direct
By Mr. Boyd:
Q. Mr. Cornell, the first Nani: which is Commission
(3436) Exhibit 150, shows one cent.a gallon rental, and
you have-testified about the assurance you received con-
cerning no increase in rental. What circumstances oc-
curred in connection with the increased rental which are
‘reflected on Commission Exhibit 1511 .
Mr. Barton: “Objection.
L object to the form of the question. It assumes
there were some circumstances.
Hearing Examiner Kolb: The — will be
overruled.
A. As I remember, a sie days before the. first lease ran
out, which would be in. October 1952, a’ Conoco representa-
tive by the name of Eldon*Jasa brought the second lease
out for me-to sign and it included this one fourth cent per
gallon rent increase, which was a 25 percent increase in
rent, and asked me to sign it for the ensuing year. I at
first refused to-do it and said that I had been.assured that
I wasn’t going to have a future rental i increase. — had
told me that about a year before. “e |
He said that: he had no authority to argue over ‘that
" phase of it... If J wanted the station I would have to sign
the lease. And if I retnember rightly, I waited a few days.
And this also, if I remember rightly, Mr. Severs brought
the lease out again and told me that they would have to
have a cent and a quarter a gallon:from pow on because
(3437) they. had decided to raise rents on some of the
newer stations in order to pay off some sort of investment
that they had in them, and ‘there was. some discussion be:
tween he and myself, as I remember. I finally signed the _
lease in order to keep the station because, he gave me to
understand, if I didn’t sign the lease I would have to leave
the station.
\e
\
Gre
JA, 857"
Clarence E. Cornell, for. Commission—Direct
Q. When you became a Conovo leasee, did you stock ©
and sell any fires, batteries, et ceteral A. Yes.. I made a
deal.with the local distributor of U. ‘Royal tires to take
out a small stock of his tires and keep in the station
and display them and sell them as I conlt which I did. I
“sold a few of those U.'S. tires. And I: took some Willard
battery distributor and sold quite a few Willard batteries.
. The rest of the line of TBA, general shelf items and
_ chemicals and polishes and so forth, I bought hese the
local jobbers i in Lincoln: .
Q. Did you continue. to handie those brands, that’ is the |
Willard batteries and U. S. tires, thereafter?- A. ‘If I may
ask a question: thereafter, when?
Q. When you first went into the: atten when you
originally opened? A. Well, I sold that line of merchan-
dise and of course the shelf*items and TBA items that I
got from the local distributors, on throngh the first year
of my tenure in the station. (3438) It was in the winter
of 1952 and 1953 that I was told by Conoco that they were
. taking on the B. F. Goodrich line’ and I would be expected
to sell it from then on, such as tires, batteries, and ac-
" eessories.
Q. What had - -your TBA volume been that first year,. —
would you say, monthly or how ever you could give it to
us? A. That was my first year in the station. I was.
building up a customer list and trying to.get started. I..
imagine that I prbdbably bought on the average around -
$200 a month or more. That would just be a rough esti-
‘mate. I kept no records on it.
Q. Would you tell us from whom you purchased the
Willard batteries? A. Judah Distributing Company.
. Q. That is. in Lincoln? Se ae and “"”
Streets, in Lincoln. .
~ -Q. What about the—I believe you. stated about U. 8.
. tires? A. At that time the local distributor was _—
~ U.S. Tires. a
(TA. 858,
. Clarence E. Cornell, for Commission—Direct
Q. What about your accessories? A. We have several
parts and wholesale houses in Lincoln. Sidles Company, |
which is not exaetly an affiliate of Sidles U.S. Tires; L. J.
Messers, of the Wilson sales; Ben’s Auto Parts, Carl A.
Anderson, Inc. I bought from all of those people because
they all sent salesmen out.
Q. You mentioned something ous Goodrich . and
Conoco i in. (3439) late 1952. Did you take on the Good-
rich line then? A: Yes, I took it on. I signed a Goodrich
dealer agreement. They said that they wanted us all to
sell Goodrich tires and batteries and accessories. I was a
little slow there in signing up. I guess it’ was probably : ae
month or so after the rest of them did. ca
Q. When you-say ‘‘they wanted’’ you to, who do you
mean? A. Continental Oil Company local officials.
_ Q. Tell us who these people ‘are as you. name them?
A. Floyd Severs, Harold Hays, W. R. Fitzpatrick, and the
city salesman who at that time was Duane Nantkes. ,
Q. And then did they indicate what items you were to
carry? A. They indicated I was to-carry the Goodrich line
of tires, batteries and accessories, which includes shelf
items and various chemicals and ‘polishes, items that are .
listed in the Goodrich book, Goodrich sales and’ service
book. And also indicated that I was to do away with the
items that were not listed in that book. —
, Q. Was anything said by the Conoco cates about the
Willard batteries or U.S. tires? |
Mr. Barton: Object as leading.
’ Hearing Examine ‘Kolb: - Overruled:
A. Converning the tires; I have put them around, that j is,
‘ to satisfy the Conoco people, I put them around in the -
back room of the station up on a shelf, and tried to sell '
them, (3440) and displayed the Goodrich tirés out front. —
eae «JA 859
Clarence E. Cornell, for Commission—Direct .
- However, I-left the Willard batteries right out front. I
didn’t take on the B, F. Goodrich batteries for quite awhile.
Finally, I suppose it must have been a couple of months
later, I took on a line of. B. F. Goodrich. batteries after
much salesmanship and pressure from Conoco people.
I never did receive any pressure from Goodrich over it.
Q. Tell me about this pressure from Conoco that you
mentioned. Just what happened? A. Well, when they
would come out and see that I still had Willard batteries
they‘would say that I was expected to throw those Willard
batteries out and put in the Goodrich batteries. And so
finally when I put in the Goodrich batteries I put them on .
one side of the room and had the Willard batteries on the
other side of the room and that still didn’t. satisfy them..
Q. What happened? A. He kept asking me—
_ Q. Whot A. Loyal Severs and Harold Hays kept ask-
ing when I was going to throw out those Willard batteries
and I told them I wasn’t going to throw them out, I was
going to keep them both. They said that they didn’t make
any money on Willard batteries and I wasn’t supposed to
keep them.- And I said that I did make money on the
batteries and I was going to keep them, (3441) aes I
. would sell theirs alongside of them., +
Q. Did you continue to handle the Willard batteries?
A. I did for another month or so, and then finally I got a
rid of them. They kept wanting to take the Willard bat-
tery stand out and have it-painted for me. They wanted
to paint Goodrich on my Willard battery sign, -
Q. Mr. Hays that you mentioned, do you know what his
position is? A. Assistant re ow for the State
_ of Nebraska. *
Q. Continental Oil? A Continental Oil.
. ,Q. You.mentioned putting the tires in the back. That
was U.S. tires? A. That is right. I sold them down as
much as sf could, seta
JA 860.
Cairetibn E. Cornell, for. Commission—Direct
Q. Did . they: alien that? A. Well they stimaatii _
: =” generally that we gell or dispose’ otherwise of all of the
~~ TBA items ‘that were not. listed in the Goodrich TBA book,
and :get them out of the station as fast as we could. That
also was to include shelf items such as unsponsored polish
‘and: unsporisored radiator chemicals and. ponsored fan
belts, and radiator hoses. por Ne |
In. the case of the fan belts, they sie out jackets, B. F.
e. | Goodrich. jackets, and put them over the Gates, fan belts ,
. that I had on display... ‘And they. brought out‘a Goodrich
placard that fitted on to the Gates display stand. (3442),
\. They had me-putthat on the Gates display stand.. Then *
/ we covered up these Gates fan belts with B. F. Goodrich
labels.” And as we sold those down, ‘we gradually replaced <i
the fan belts with B. F, Goodrich fan belts.’
Q~ After you started handling. the Goodrich line where |
sale you obtain, your supplies? A. At first’ we obtained
“what we could. from. the B. F. Goodrich store, 17th-:and O, |
at. Lincoln, although they didn’t-carry the whole line. T
can’t, recall just exactly how long that went on, prokably.
* five-or six monthg.. -
Q. How. did you happen to goto that B. F. Goodrich
: | store? A. We. were told to.
‘Q. By.whom? A: Continental Oil Company officials.
Q. Name them again.” ¢* W. R. Fitzpatrick—
- Mr. Barton: I think that i is ‘in the record.
| Mr, S eatak ‘I don’t think saris Bitepeteiok:t ‘is.
,- By Mr. ‘Bebte- a
“Q. “Who is het A. He ‘was a division manager aay :
Continental Oil Company for four states. ae
-Q. Do you: know what those four states Weret: A,.
_ Nebraska, “Iowa, North and South Dakota. -
JA 861
Clarence E. Cornell, for Commission—Direct:
Q. For four months bought from the B. F. Goodrich .
_ store? (3443) A. That is, the articles We can. obtain. ~
They didn’t carry the recommended oil filters. “They didn’t - ;
‘carry the fan belts or the radiator hose there because he .
didn + do that kind of work. | |
a This is a B.-F. Goodrich storet A. Retail store;
yes, sir.
Q. When did you sas snntion: source of cupuly A. ;
_Afterthat the Conoco and, Goodrich people got .together
with Mr. Chris Beck and he was carrying Firestone prod-
ucts and Phillips’ petroleum, aad’they had him change over
to Continental Oil Company petroleum products and B. F.
‘ Goodrich TBA. They set him up as a supplier and whole-
sale outlet. We-were told to buy there and stay assed from
the store. - ss
_Q.:How long did Chris Beck continue to be the supply
source? <A. He still-is. is ee
. Q. After you took onthe’ Goodrich line, was the station
then identified with Goodrich products? A. Yes. The
Goodrich people: have a sign Yan that puts up metal signs
on the’ lamps posts, and decal signs on all the windows.
Q. — you asked where you wanted those — A.
No.
‘Q. After you | your station identified with Goodrich .
“ signs and so forth, did you ever put up*any other signs -
of.other products that you ‘didn’t buy from, Goodrich.
(3444) A. From time to titne I believe we would buy some
oil additives, such as Rislone or Casite. They would prob-.—
ably be in a small display rack with a sign on them: Or if —
"+ we had some Prestene or Zerex anti-freeze we would put
that up in the window, and of course Conoco made - take ,
those down. _ es
Q. Who in Conoco? A. Harold W. Hays, _— Severs, :
‘Duane Nantkes.
JA 862:
| Clarence E. Cornell, for Commission—Direct
.» Q. You say they made you take them down? How did
_ they go about that? A. Of course they didn’t use physical
force but they would: just keep telling us that the company
didn’t want those signs up, that it was the company policy
not to have the signs up and we were expected to take them
down if we wanted to get along with the company. :
Q. In addition to tires, batteries and accessories, did
you buy any other items from thie Goodrich store—from
Chris Beck? A. Of course the term ‘‘TBA”’ isa rather
broad term—tires, batteries and accessories. Accessories
‘in service station language are construed as fan belts,
- radiator hoses, shelf items such as polish, that is recom-
‘mended polish, radiator chemicals, radiator additives. «I
think they had one or two lines of oil additives... They had
light ‘bulbs, sealed beams, small daylight bulbs, fuses, and.
just generally small shelf item products. Wiper _—
things of that sort, general (3445) car needs.
Q. Do you know: what traffic builders are? A. Yes, sir,
I know what traffic builders are.
Q. What are they? A. They are usually something -
that.is put into a store or a station and then highly adver-
tised in conjunction with an advertising program to bring
people into the store or ‘the station as it were. In our
“ | experience they have been seat cushions, low-priced floor
mats, charcoal burners, picnic bags. I think they had ice
pails, things of that sort. They were usually an item that
we would buy for say 93 cents and sell for 98 cents.
Q. Did you sell those items? A. I sold quite a few of
them. I think the last year I was in the station T refused
to take them.
Q. From whom did you hae ieiat A. We would get
them from Goodrich through Chris Beck» But it was
‘usually in conjunction with an advertising program where
- they were flyleafs, leaflets made up, or handbills to be dis-
* ‘ tributed to customers in the neighborhood. | ,
‘is ail
JA 863
Clarence E. Cornell, for Commission—Direct
Q. By hein were these handbills, this advértising pro
gram— A. They would be printed up by some jobbing
firm. I have no idea who. But they would be gotten by ©
Goodrich and they would jointly carry Goodrich and
Conoco items. We had to pay for the whole program.
(3446) Q. They did feature Conoco petroleum prod-
ucts? A. They featured Conoco petroleum products and
usually mentioned washing and greasing, and then they’
would mention tires and batteries, and the ° various items
we carried in the station. .
_ Q. Did you ever have any discussions with representa-
tives of Conoco, about these traffic builders?. A. Yeg. The
discussion would be along the lines that they were ex-
tremely hard to sell and hard to get rid of, and at the
' end of a given season we would find ourselves with quite
a number of them still on hand that we would try to give
" away. We couldn’t get rid of them any other way. We
couldn’t make any money on ‘them.
oa
Q.. Did representatives of Conoco urge you to buy these |
items? A. Yes; they did. Very much. They urged us
to buy those items. And at one time when I had fully
made up my mind to refuse, there was a Conoco city sales-
man at that time named Rihn, and he said, ‘‘I want you
to sign up for this advertising program or else.’’ That
iis Tight after the half-dozenth time that I had refused him.
A He said, ‘“This is it. This is the last time I am going
to eek you. Will you si it or shall we go down and see
''. Fitzpatrick.’ So I; it,
Q. Do we have his full name? (3447) A. I believe it
is Erwin, his fret name.: /
Q. What is his position? <A. He ie merchandising man-
ager. There was quite a shake-up there. They changed
around a number of positions. There are no city sales
manager anymore. The merchandise manager took his
place. ’
ae sins ven : ite , ee , | ; . . 3 |
*, ER Re
Clarence E.. Cornell, for Cammission—Direct |
Q. Merchandise manager for ohnent A.- Continental |
Oil Company. Locally.
Q. Do you know Mr. O..-F. Splichal?- A. Ton I do..
Q. Who is he? A. He was assistant, division manager
for Continental Oil Company in charge of TBA for the
four-state area that I have previously mentioned. —
_ Q. Did you ever have discussions with him about TBA?
i Quite a number of times. He would accompany the
Goodrich representative out to the station to see‘us about
buying more TBA. At one time in particular he came out |
to.see me when the Conoco salesman—
Q. Who is he? A. I Rink thoes suse. tro ee thle por
ticular case that I want to recite. It was Nantkes at Fire-
- stone and then Severs—told us that.we were expected to |
put in 25 dry-charge batteries because I still had a half
dozen wet batteries on hand and -I told them that I was
going to buy dry-charge batteriés (3448) when I sold
_ these wet batteries and got rid of them. And they kept .
after me to buy 25 dry-charge batteries and. they couldn’t
get me sold.. Finally, gape pan out himself. He had
the order-all made out and told’ me to sign it. I refused |
_ to sign it.. He said, ‘‘All the others are signing up for
25 dry-charge batteries and you are no exception.”” I told. -
him I didn’t need. 25 dry-charge batteries because I had —
an adequate supply of batteries on hand and when I sold
- them out..I would buy dry-charge batteries because I was
in favor of that program but I wouldn’t buy 25..
Q. What kind of batteries he wanted-you to buy? The
brand? A. The B. F. Goodrich dry-charge batteries.
Q. As best you can tell us, about when did that‘occur?
A. If. F recall, that must bays been sx Gig carly Spring of
_ 194. 4
Q. Wier th check thedinio that teil try. dokes batteries ,
| came on the market? A. Yes, about the time that these
dry-charge batteries came on the market. . There was ‘quite.
are
Clarence E. Cornell, for Commission—Direct .
a program on’ to get everyone to take 25 batteries, among
the smaller stations, .
: Q. Did-you attend any dealers meetings. Mr. Cornell?
- A. Yes, sir, I attended all the dealers meetings.. -
Q. Were there any Goodrich representatives at. thie,
meetings? A. There were usually one or two Goodrich
representatives (3449) at every Conoco meeting. That -
is after the Conocdo-Goodrich alliance.
) Q Were there any other rubber company ae
tives at such meetings? A. None..
Q. Were there any discussions. ‘atthe meetings lead |
Goodrich products? A. There were’ usually discussions at
the meetings about Goodrich products and, how to sell
TBA. I.remember.one particular meeting, | ‘one meeting
in particular. Quite a large crowd attended and about ©
the only meeting that I ever saw Mr. Fitzpatrick ‘attend.
He was there and asked for floér time. He got up and
_ really started to give everybody a dressing down because
_ they hadn’t been loyal to Goodrich; they hadn’t been loyal
to Conoco. He stated that he as.division manager was
very much interested -in the company making money, and
the stockholders making money: He said that Conoco had
quite a number of stockholders and that he considered
stockholders the best friends that the company had, and
that they were making a lousy five percent on their money, -
and the reason they weren’t making any more was begause
us lessees: were not loyal to the TBA program and were
~ not buying all the TBA that we sold from the B. F’. Good-
rich outlets.
: We were buying trom other places in town that the
company wasn’t making any money on. He also stated
- that- we (3450)° were expected to deal exclusively with -
B. F: Goodrich outlets end that the trouble with most of. eS
| us was that we were too intent upon making money for
ourselves and not making any money for’ the company.
“Fo 3k O66
- Clarence E: Cornell, for Commission—Direct.
He said that if we would set our minds toward making
money for the company, that we were bound to make money
ourselves.
He also said that we were letting #00 many bastards—
‘ind he used this word ‘‘bastard’’ a number of times—there —
_were too many bastards from ‘‘O”’’ street that were com-
ing im through our doors and selling us TBA merchandise, |
and from now on he expected absolute loyalty from the
lessees in the Liricoln area, and to keep the bastards from
**O”’ Street out of the stations, and to buy any TBA that
we needed from the local B. F. Goodrich outlets. At that
same meeting—
(3451) Q. Could fou tell us about when that meeting
was, as best you recall it? A. As best I recall that was
in the early part of 1954.. -
Q. Go ahead. Can you tell us something else about that
meéting? A. He kept his eyes on me in particular.. I will
never forget that as long as I live. -He kept his eyes on
me in particular and said that in his experience he has’
.seen, quite a number of petroleum retailers associations
spring up, and that usually the man who started them found
_ himself out of business, out of money, broke,.and the friends
- that he thought were following him were really not follow-
ing him after all; that he was usually some kind of a flag
_ ‘waver who would walk up and down the street carrying a
flag over his shoulder and expect all the other area service
men to follow him, and in reality the other service station
men would see the light of day and follow: the company 7
policy. :
' He had seen these retailers’ associations spring up all
over the United States and he hadn’t seen one of them that
really had: been successful yet, and he said the one that
“was getting locally started here in Lincoln would be no ex-
ception, and that the people who were getting it started
_ .
®
JA 867
Clarence E. Cornell, for Commission ~ Direct
would soon find out their folly and would be. coming bak
and wanting to get in and. be ‘a member-of the team and
follow the Conoco program. —
(3452) That any one who joined the retailers’ associa-
tion was wasting his time, wasting his money, when he could
be spending his time better selling the company’s products
through the station and not spending so much time trying
to organize a petroleum retailers’ association. :
And he—I forget the words he used—but he labeled it .
‘a communist front. . =)
' Q. Is there a retail gasoline dealers association in Lin- _
colnt A. There is a retail gasoline dealers association yet
in Linéoln, but the ranks have dwindled due to oil company .
_ pressure. *
- Q. When did it come into istiiunnat That is, this as-
sociation? A. In the latter part of 1952, toward. the fall. -
- Myself and about 7 or 8 other fellows from as many dif- —
ferent brand names of gasoline got together anc formed
the Lincoln Petroleum Retailers Association. -
- Q: You said something about being a member of the.
Cues team. Did a representative of Conoco ever _apeeee
that with you? A. Yes, sir. —
.Q. What did they say? A. Being a member a a deen
was to, of course, deal exclusively in Conoco products,
deal exclusively i in B. F. ; -(3453) Goodrich products, also
being a member of the team meant to keep your station
open later than you usually had beens siti‘ e |
They. recommended keeping the stations open until 11:00 -
o’clock. And there were quite a number of boys closed at
9:00 or 10:00. Being a member of the team also meant that
when there was a gasoline war started you were expected
to go down immediately ‘to, the recommended price be-
-cause there was usually some discussion by ’phone or some-
body would come around in a car and say, ‘‘there is a gas
_ war on, the price is 24.4, you are em to: go down to
‘ae JA 868°
” Clarence E. satiate for sansa iain aad
it.”? And they wonld « even get signs peinted up for us § to
put on our driveway.
Q Who would! A. Continental Oil Company. Just
| generally following company directives meant being a mem-
ber of the team. ©
Q. Did you receive that information ‘from a Tepresen-
tative of Conoco? A. That’s right.
Q. One other question about the dealer meetings. How.
often were they held? A. They were supposed to be- held
every three months, but sometimes they skipped and we
didn’t have one for various reasons. I don’t know why.
- Q. Before Conoco took on the Goodrich line of TBA,
featuring it at the stations, did they ever say anything to
you about TBA? (3454) A. It was never mentioned.
They would say this: That you shouldn’t tie up all your
money -in tires and batteries. Don’t spend too much money |
on it. Don’t get yourself in a hole financially.
Q. Did the Conoco Oil- ‘Company have a credit card while
you were lessee? A. When I first went into the Conoco
station, the first lease of the Conoco station, they had a
regular credit card which was similar to every other oil
company. credit card that I had ever seen, and I believe
it was in 1953 that they changed to the International Busi-
- ness Machine credit checkbook system, and tried to get as
many of the customers as possible to change to using that
~~,
system. It was a very highly successful system and it is |
very convenient.
| |
Q. Did the credit sninke-ceuns me. What daté did
they they change from the credit card to the other system?
A. I think it was in the early part of 1953. The — of
1953 if I remember rightly.
I think it was 1953.
'»
Mr. Boyd: Your Honor, I ask that- there be ‘
marked for identification. as Commission: Exhibit 153
ee
By Mr. Boyd:; :
JA 869°
Clarence E. Cornell, for Commission—Direct
a card entitled ‘‘Your personalized Conoco Credit
checkbook.’’ On the top line it has the name ‘‘Clar-’.
ence Cornell.’’ ‘This is a perforated card. Since
there is information on both sides we had better
make it 153-A and B.
(3455) (The document referred 7k was eee ae
Commission’s Exhibit 153-A. and B for identifica-
tion.)
3
Q. Mr. Cornell, handing you. what has been marked for |
- | jdentification as Commission 8 Exhibit 153-A and B, is that
one of the ‘tickets from. the new. credit system that was
adopted about 1953 that you told us‘about? A. No, that is
not one of the tickets. That is not one of the ‘usable
tickets. That is the flyleaf that is in the front of each new
book that the customer gets which describes the purposé:
of this credit checkbook, what it is used for, and mention: -
ing the articles of various kinds that can be purchased .
with it. ©
’ Of course, it carries the customet’s name and address.
‘I imagine the perforation is for his ——ae in the
machine.
Mr. Boyd: ‘Your Honor, I offer i in evidence Com- .
Iisvion’s Exhibit 153-A and B.
Mr. Barton: I have the same chiection to that. :
Mr. Royall: I understand our objection covers it,
your Honor: te |
_ Hearing Examiner. Kolb: The objection by both
' parties will be overruled, subject, to motion.to strike
on the part-of Texas.
(3456) (The document referred to, heretofore
marked Commission’s Exhibit 153-A and B for iden-
tification, was received i in evidence. ) |
¢
s
JA 870
‘2 Clarence E; Cornell, for Commission—Direct :
>
By Mr. Boyd:
Q. I hand you Commission’s Exhibit 153-A and B and
referring to the portion marked 153-B, I note that it states
that it can be used to purchase Goodrich tires, batteries and
so forth, A. That’s right.
. Q. Have those forms ever carried any other dior com-
pany’s designated TBA? In other words, would they be
. good for goods of that type? A: I never heard they did, .
and I heard we were not supposed to put any other brand
name of tire, battery or accessory other than Goodrich
sponséred on the credit checkbook. \
'. LT won’t say for sure that we always followed that policy.
_ « Q. How long did you continue to carry the Goodrich
TBA line after you took it on? A. I carried the Goodrich
TBA line right on through until the time that I was ejected
from the station.
Q. Mr. Cornell, in addition to the TBA line, did you
- carry any other, say, outside or unsponsored items? TBA
items that you did not obtain from the designated— A. -
Yes, I carried some oil additives that were not sponsored’
by Conoco or Goodrich, and carried some motor, oils not .
ored (3457) by Conoco and you might say Good-
~Tich. Do you want to know the names of them?
- Q. Yes, sir. A. I carried Rislone, an oil additive. I
carried the Alemite Company CD-2. And I carried Wynns
friction proofing. I carried Miracle Power. There might
have been another or two. I can’t remember now. I car-
ried Quaker State oil. I carried some Pennzoil. I carried
some Royal Triton oil.
Q. Let’s take Rislone. Did you openly display t in
_ the station? A, Yes, I did.
Q: Was anything said about it? A. Quite a lot.: :
Q. By whom! A. Floyd Bevers, | Harold’ Hayes, W. R.
Fitzpatrick. 0 c
‘JA 871
Clarence E. Cornel, | for Commission—Direct,
Q. What did they say? A. Well, they said that I would -
get in trouble if I carried it because they didn’t sponsor
it. They didn’t sell it and they didn’t make any money
on it. Also, it was-a bad thing to sell to your customers
because they had known it to ruin people’ 8 engines, and it _
was nothing but kerosene anyhow and it thinned out a per- —
fectly good Conoco motor oil.
Q. What about CD-2, Wynns friction proofing? A.
They said if you used Continental Oil Company ’s oil ex-
clusively you would never need it. No sense in selling it.
(3458) Q. Did you display those items? A.I[ did. I
displayed them quite a lot until there were so many objec- |
‘tions raised to it, that I finally had to put them around.in
the back room and put them in Continental Oil Company
‘oil boxes to hide them.
. Q. Is that the basis on which you diuitlesiglt to sell them?
A. Yes., Once in awhile I would bring them around and
put them on the shelf or maybe on one of the shelves in ~
the back room and then some Continental Oil Company offi-
_ cial would make quite an objection to it and I would put
them back in a Continental Oil Company box again. ne
_ ° Of course, they. wanted to throw them clear out, to get
them out of there. :
Q. Would that same be true of the other items, Miracle
Power, Quaker State, Penzoil and Royal Triton? A. Quak-
er State raised quite a boné of contention.
Q. Tell us about it. A. Quaker State oil was not sup-
-posed to be on the station in any form, either hidden or
otherwise. You were stpposed to. keep it completely off
the premises, because we were supposed to sell Conoco and
‘Ss
no other oil. In fact, I even hid a case of Quaker State
in the trunk of my car, and one Conoco man —- the
trunk of my car and found it.
. «SA 872 >
“Clarence E. Cornell, for Commission—Direct
a
Q. What did he do when he found it? A. Oh, ho4ust
made 9, little remark about it.. “‘I see you (3459)\ are
"° gtill selling Quaker State;’’ and that i is all he said.
. Q. How about Pennzoil and Royal Triton? > A: Royal
Triton oil at that time was desired by a number of )Buick -
_- owners bécause it made their engine run smoother, they
claimed. They had a hydrauliéwalve lifter ‘trouble and -
Royal Triton was supposed to help that. -We had a nuni-
_ ber of Buick owners who asked for it.. Demanded it, and .
‘said that we would get all of their. lubrication and gasoline
‘ busines if we would carry it, and so I did.
But when. Conogo would.see it on the shelf they would
‘order us to throw it out or hide it. Sometimes they said
to hide it and sometimes they would get a little angry and
say to throw it out. One particular time I had in on my
‘front shelf. That was after they raised my rent,.-When -
. they raised the rent, after they promised me they would
never raise the rent, then’ I went around to th back room
and got all the Royal Triton, all the Quaker State, Rislone
and | Casite, brought it along and put. it on the front shelf
where everybody could see it.
That is when they physically moved it. They iiok it -
into their own hands and: took it off. the: shelf and through ~
itin a pile in the back room. si. :
Q. Who did this? A. Elvin Jasa. ©
_ Q. Who is he again? — ob ae
the City Salesman. &
'Q. Conoco? A: Fo? ees:
~~
+ Q ‘Did you:ever give trading stamps? . A. We gave
trading stamps from I think it was about April, 1953, until
August.1954.
Q. How did you come 0 give those out? A. We were »
: : told that we had to give stamps after Continental Oil Com-
pany made some sort of agreement with the local Com-
aft
“a
/ ZB . . eo:
ae. —
Clarence E. Coynell; for Commission—Direct -
munity Stamp gupey that started up in Lincoln. It was
a. local concern hat produced community savings stamps.
_ And Conoco began sponsoring these stamps and they held
‘several meetings with the dealers over it. Of course, the
2 stamp officials were there and told us how we would. have’ :
_° quite a competitive. advantage over other name brands in
petroleum, and other stations, because we would be the
only station that would be handling pr giving, I should
. say, the community stamps. | acca S23
~ There were quite a number of the lessees that I had
talked to who were skeptical about-the whole thing and.
didn’t want to take on the stamps: But Conoco said that —
we all had to take on the stamps because they wanted to ,
keep: all of our stations uniform and’ they wanted all
Conoco customers to be able to get community stamps at _
any Conoco station that they went to.-And tl t'we must .
- give the community savings stamps. EE CP fit.
Q. Did you take them on against your wishes? (3461)
‘A. To be truthful, I was more er less passive. I took a
_ wait and see attitude. And I-took themgn- I didn’t offer,
too much resistancé’to them ai all. I took them on to see
if I could gain some competitive advantage. But when I
wolgup one morning and found the man across the street
‘7 a Ninclair station had the same stamps, And as I rode
around from time to time every station had the same stamps
except the ones who were giving the S & H green stamps.
This included Standard stations and some Texaco sta-
tions and the Phillips stations and the Skelly and Jacobs
service and all the other name brands around Lincoln were
giving savings stamps, so-I couldn’t see any competitive
advantage. __ a ercietee * :>
Q. Were they given on everything you sold? A. We ~
were told to give it on everything we sold by both the stamp
company and Continental. | :
-
¥
Bes . JA 874 eae
Clarence E. Cornell, for Commission—Direct
2. Did that inclade TBA items? A. That included TBA
items.
Q.. What was "the reason. you signed that | ellation * :
agreement and gave up the station? A. The’ réason I -
signed the cancellation agreement was because that I knew
and was advised by my attorney that they eould Z6 to court
-and get me out anyhow. :
_ The way it came about—do you want to know how itn
came about?
(3462) .Q. Yes, sir. A. On Sctasialene 1955, I was
making preparation to take about .a ten-day vacation. I
went over to the warehouse to buy, some oil for the station
to keep on hand. My brother-in-law was going to run-the
station for me‘and I had him with me. ‘So as I wae at the
. station one of the. men. there ‘said, ‘““SDon’t leave because
Rihn is looking for you and wants to see you as soon as he
can. He is running all over town looking for you;
_ ‘*The first time he comes in I will tell him you are here.’’..
I waited about ten minutes. He called qe off into his
car, in another part of the lot, and told me t he wanted
-——— me to sign a mutual eaneceHation agreeme
x Q.'He ie the,enleman for Conopo? A. He was ‘the
® merchandiser manager in charge of all the stations, .
. Q: Ge ahead. >A. I asked him why I should sign the .
cancellation agreement. He said there is no particular
reason, just the fact that Conoco wants its station back
and they want me out of it and I was to sign this eancel-
lation agreement. I told him I was making preparation
to goon a tfip apd I wasn’t about to sign anythin’ without |
‘the advice of an attorney, and I didn’t have a chance to
get in touch with ari attorney then, and I was still going”
to take the trip-and I wasn’t going to—(3463) sign.
: Q. That was about 30 September. 19557 - A. Phat was -
the September $0, 1955.
id
>
»
JA. 875
Clarence E. Cornell, for’ Comimission—-Direct
Q. Then what happened? A.’I went baci to the -sta-
tion and told my brother-in-law to run it, that I was going |
to take a trip. I found out about, I guess it was 9 :00 0’clock’
that night, after I had left the station, I left the station,
- about 5:00 o’elock in the afternoon, that there was a special cee <
delivery letter came to the station and my help had re-
nore as gears ~ hs
I said I-am not coming up there to read that letter. I
want no part of it. I got in the car and we started on the
When I got back,*about ten days later, then I read the.
letter. It was a letter odmcelling ary lease “agreement,
that then‘ existed between Continental. Oil Company and
myself, and asking that I vacate the station within 30 days
from September 30, which would be October 30. ~ |:
When October 30 came, T just sjayed. Ididn’t go any-
where. Then they served me with a—the Marshail served .
me with an ‘eviction notice on October 30, giving’ me an- -
other 30 days to get.out of the station. I was supposed to _
be out by November 30 then. So I still didn’t go. I stayed
-” "Q. What, happened after that? (3464) A. After that«
down version of, the cancellation ‘agreement, and had me. -
sign it.. ; the scit peeks Feit
“Severs and Irvin Rhin came out with what I call 4 watered ‘ ae
aed . . t
7) - F
od
JA 876°
acne E. se rate dual Comsnission-—Direct -
The reason I didn’t sign a the original cancellation agree-
ment was because my attorney had advised me that there «
was to be a clause in that ‘cancellation agreement which
gaid that I would never be able to act as a witness against.
Continental Oil Company in court, ahd. that it would also ,
_ state that they did not evict me from the station; that I
asked to go of my. own free will and accord.
' He.advised me that there would be a clause in there of
that sort, and that is why I didn’t sign it.
? So when they finally gave me a cancellation: esredment
_ that had nothing of that sort in it, then I signed it. And
; they asked.me if I would stay,there for a week or ten days
until they could find someone to buy the merchandise.
(3465) Up until this time they had refused to buy
back ahy TBA or anything in the way of tools or equipment.
They even refused: to buy back the Continental Oil Com-
pany gasoline and oil that I had on hand, and I was sup-
posed to dispove of-it-of my own volition. That is because .
a wouldn’t sign the cancellation agreement that they had:
- refused to buy back their own products.
So. when I started to sell the stuff to other dealers we
. created a little {furore and they came around and wanted
' to buy then.
(3466) . Q. Mr: Cornel, did the TBA, matter have any-
* thing to do with your lease cancellation ?.
_-4— ~Mr. Barton: I object. —
' Hearing Examiner Kolb: Objection overruled.
a, I believe it was relevant to this extent: that I had 7
refused to sell the B. F.,Goodrich-sponsored TBA entirely, ~
and no\other. I insisted on keeping some—I had somebody-
else’s radiator hose, I think it was Thermoid’s. And I
didn’t buy all of my filters from Goodrich. I had a few
- AC’s on the shelf. And then when I didn’t get quite the
deal I wanted from the Goodrich outlet, which was Beck,
Wh
» - pany. And of course they knew that I had always had an
JA 877
Clarence E. Cornell, sgt Commission—Direct
I bought the same brand filter, Fram, from Sidles Com-
account at Sidles and Messers and Ben’s Auto Parts and
various wholesale “houses. That part of it-I believe is
relevant as togthe TBA part of it. ‘
There were other reasons. The main reason I was
- thrown out of the station was because I refused to give
the stamps. I threw out the stamps in 1954. The other - -
reason was the fact that I was the first president of the
Lincoln Retailers Association and waS very instrumental
in getting it organized: They told me that, that they would y
‘get me for starting an association. .— — ‘
'W. RB. Fitzpatrick made the statement that he would get
me for starting the *Association. I will swear to “(346t )
that. —
<a
—
‘By Mr. ‘Boyd: | vas N
Q. This station that you pare had anybody been
in that station before you had it? A. No, sir. I was the
first lessee. I opened it brand new. . -
.. ‘Q. You said you carried some ansponsored: items that \_
+) you 1 mentioned just a few moments ago. Did representa- ~~
‘tives of Conoco indicate that that was one of the reasons? . ~
Mr. Barton: . I object. to that, yeur Honor. The *
witness has» been very ‘able to express himself.on ,
‘ every possible subject and needs no leading from
counsel. ; ;
Hearing Examiner Kolb: Read the question. oe
(Question read.) ee
aceeic te Examiner Kolb: resus sustained. oA 3
&
> : ‘ vr
tf
JK 8B
>
Clarence E. Corgeli, ‘for Commission Direct
By Mr. Boyd:
“/. What reasons were given you by representatives of.
“the Conoco Oil Company about the lease cancellation? |
Mr. Barton: Object. ea
fering Ena OW Tarrahjestion wil be ead
PP ar pg
A. Did you mean, sir, when the lease was not renewed in
1953, or when I was—.
Q. Is that when it first came > up Sie renewal? In other
words, at the end of the second year? -(3468) A. Yes, ‘on
sir. October 1953 was when that lease would come up for }
- ™renewal—and I have had two leases. J didn’t. get a lease | ;
-. at/all. They just ‘didn’t bring ore out and I wondered
.. where it was. .I asked Severs where it was and I asked
_Rihbn where it Was, and I asked Hays where it was, and z.
- got no answer; none. I kept asking for a period of about *.
two months when Iwas going to get a lease. Nobody would |
answer the question.” jf
So when you. could get one of those fellows by them-, |
selves, either one of. the three—Severs, Rihn -or. Hayes—
they would make this statement : whenever you. be-
come a member of the: Conoco team,/ when you decide to
straighten up and fly right, you might get a lease.
Q. Then on September, 30, 1955, when you were ap-
proached about vacating the station by signifg this. can-
cellation agreement, what reasons were given then?
Mr. Barton: If any.
ar
a By Mr. Boyd:
PS. Q. If any. A. Simply that they had put up with ‘me ee
eo long enough, they were sick and tired of trying’ to make
ig eC "me become a member of the team, that I knew very well
- . o6
it he ; , oie
: P ,
‘ . ‘
‘ - -
JA 879
Clavines E. Cornell, for Commission—Croas
why they wanted me out.of there. Why should I ask them
' again and they wanted their property back ‘under the law. .
: All Of those things were verbal. There is nothing written.
(3469) -Mr. Boyd: ‘That concludes. thé direct.
Mr. Royall: I have no questions, se Honor.
%
Cross-examination by. Mr. Barton:
, Q. You did very well in your sale of Goodrich TBA i in -
-- the station, did you not? A. I would say that I did aver-
age; yes, sir.
Q. You sold several thousand dollars. of tires, batteries
and accessories? A. Over what period? ,
Q. Over an annual period, annually. A: Yes, I would
say that I probably sold several thousand dollars over an
annual period.
Q. aaa i is he year that you were handling them? A. -
Yes.
,* ae ‘And you were very well satisfied with the B. F.
‘ Goodrich brand of tires and satioriant weren't yout A. As
. quality merchandise ; yes, sir. |
~ Q. I mean you expressed to your. customers and to -
others your satisfaction with.the B. F. Goodrich line: dur-
ing. the time you were in the station? .A. If you know’
anything about salesmanship at all, if you want t6 sell.
something you have to necessarily believe in it. . ~ |
eee’ en eer ene ee es A. That’ is.
right. -
(3470) Q. And. the traffic builders that were utilized
‘by you were used in connection with the direct mail pro- °
_ gram, were they not? A. Thatistrue. -
Q. And ‘the system was that you would mail, or - you
- would buy’ from the B. F, Goodrich distributor or the
company, a “direct mail program. which would be a posteard
with Conoco products, your ~ your name on that:
é card? A That i is pegs ) 3
=
° | os e - ° ? ¢
7 TA 880 5
| Clarence E. Cornell, for Commission—Cross
3 @ Aid it would ‘be mailed:to your customers?’ AL Yes. ‘
Q. Or prospective customers? A. Both. . -
Q. The idea of it was to get more traffic into your
ilies on so that they would buy more grestne and more
TBA! A. That is true.
Q. And the traffic builder was thought to be a means
to get the customers to come int A. That‘is true.
‘Q. Some of them worked and some didn’t! - A. Most-of
them didn’t. :
Q. In your case most of them didn’t? A Sa in wiidet-
all cases most of them didn’t. <a
Q. Did you ‘have a. charcoal byrnerd vA. N o, I didn’t
take that. = gy i
(3471) ~Q. Did you ever hive any argument with any,
of your customers? A. Over — sir? ;
Q. Anything.
Mr. Boyd: I object to that : as itis immaterial
f)
<4
and irrelevant and not part of the: direet examina-
_tion.
Mr. Batton: Your Mieioe, the direct oe covered.
an awfully broad field.
‘Hearing Examiner Kolb: The objection will io
overruled.
A. I can’t remember ¢ ever. having a real argue with any,
" customer. ae
\By Mr. Barton: : atte
See | What do you, mean by ‘‘real argument’? A. Well,
“you haven’t told’me-yet what sort of argument I am having
here with a customer. I don’t quite understand.
Q., Did you ever have a disagreement with a ctistomer
in which you expressed’. yee about the matter? A.
About any matter? wt :
t-4
a
a
JA881
Clarence E. Cornell, for Commission—Cides:
*
y
-Q. Yes. ‘A. Oe a pertieitiavidiitess.
Q. Any matter? A. Iean’t recall. - r
Q. You reserved all those for your confreres in the
Conoco Company, I take it? (3472) ALI never started
_ an argument with them, sir:
Q. Not even when they raised your “reat io a quarter
of a cent? A. Wouldn’t it be a natural thing to protest?
Q. You didn’t argue with. eae about thatt A. I- cer."
tainly did.”
Q. And during*the ine ‘that you were there isn’t itt-a
» fagt that the Conoco officials told you that they. didn’t
think you were selling the amount of gasoline in that ’
- station that you" should sell? A. ‘They tell: that to all
_ their— had
‘Q, Didn t tell you ‘that? ‘ They certainly did.
Q. They told’ you that consistently while you were
‘theret A. Yes, and all thé others. -
Q. You had a running’ argument with thin: duting the
time you were there, about your gallonage? A. Do you
.. think my sales were any part of their business? :
Q. Didn’t you oxi that kind of ee pe
- A. I cerfainly. did. ;
Q. You-went to ‘Washington and saw Mr: Rodsevelt
about the Conoco Company? A. TI never saw Mr. mene. .
‘ welt in my life. ’
Q. Didn’t you.see James Roosevelt? A. No, sir.
. (3473) Q. Didn’t you come‘back to Omalia and tell
; everybody that gou did sep kim there?’ A. Ho, sir, I a
a mot.
on
; Me, Boyd: ‘Ohjtilion; ee Sie prey f
By Mr, Barton: ey uke eta ee gielts Psy
- Q. Didnt you talk around Omaha that you were » going to
a sad the Conoco ene : .
‘ ° .
ad - >
© °
ra.)
“Clarence E. Cornell, for Commnieiton~Creas ees
Mr. inks —_
A No, sir.
By Mr. “Barton:
_Q. You never said that? A. No, sir. . |
| _ Hearing Examiner Kolb: Objection wended:
By Mr; Barion: ed a
Q. When did ns Ceninse Company hand you a cancella-
* tion agreement ‘that had.a clause in it that you “were: not
to be a witness? A. They never did. , oe
Q. ‘They never did? A.-hey wouldn’t show me the
cancellation agreement that I was supposed to sign until” ~
I had made up my mind to sign it. _
Q. But you know ghey-had_a cancellation agreement °
with such © clause in: ? A. Iam not, 100 percent certain
‘but I am advised that.there is such a sort of thing, by my
attorney.
Q. When did you im this. association ty (3474) A.
A’ better way to state it would be when did we form that
: ‘Association. That was in the—say we got started. i in the
‘4, spring of 1953. We fiad made plans for it over the winter
of 1952 and 1953. toy
Q. You went into the station on October 30, ‘19511 A. |
| October 30, 1951. |
*-Q. And you made plans. with olbiais to form the Asso- ——
ciation | shortly after you went into the station? A. Well, I.
would say within’ a year after I werit in, or maybe a little . ©
more than a year. I can’t quite remember. ‘
_..« Q. Sometime after the rent was raised in October 19527
+ Well, let’s say sometime after my rent was increased. -
. , Q. And most. of these things seem to occur sometime ©
after your rent was increased, didn’t they? A. Yes, sir.
eo .
JS A 833
‘Clarence E.. Cornell, for Coimmission-Redirect
¢@ That was. sort of & source of friction between you
and the Conoco people? A, -That was a sere spot.
@. And fit has continued to be a sore spot? A. ‘Yes, —_—°*
Mr. Barton: “I think, that is all. po
Redirect endijination by Mr. Boyd: Bite hy
Q. Mr. ‘Cornell, ‘what - was the | gallonage when you
started that station? ( 3475) ° A. If I remember correetly,
I can refer ‘to. wy books at home, about five thousand gal-
lons a month.
Q. You opened. it new, didn’t you? ~« .Yes.: The first
month was between nti and five . thousand gallons, as .
a my a,
Q. And after that ‘akin was the gallonage? A.
gradually ingreased eyéry month until it goteup to aro
11,000 in the 1 iter and between 13 and 14 in the summer, ©
each summer, and I have had it do over 15, 000. 4
~~ @& What. was the gallonage. on September 30,—at the
er of the lease, October 30, 1953, what.was the gallonage
t time, if you remember? A. I would i imagine around
we 000 to 13,000 gallons. T would again have- to Tefer to my
records at home to be-sure. |
-
Q. What was it on September 30, 1955, when you were
ed to vacate the station? (A. I tifink it was
again appro
down to aro
gallonage somewhat, ‘but I ended up with more - afet profit |
on decreased Gallortage. poutine @
_Q. What was the gallonage when you 1 nally left the’
‘station at the end of January or the first of ded 19561
A. About 10,000 gallors a month ~
_*. . Mr Boyd: That is all. — .
Hearing Examiner Kolb: No further aoe
NA a) @ ene :
ne. ode, ' \
ten, which I eould attribute td the fact —
that I had given up the trading stamps which did decrease .
°
-t
JA 884
Ted Olsen, fp Commission—Dirett.
\
(3476) TED OLSEN was called as a dene for the
“Commission and, first having been duly sworn, was ex-
amined and testified as follows: —
| Direct examination by Mi f. Diese:
Q. Please state your - name for the record? A. Ted’
Olsen. .
Q. By whom are you employed? A. Sidles Company.
Q. In what capacity? A. Asa salesman. ~
Q. How long have you been so employed A. — the
ina. ten years. .
2Q. What is your sales territory,Mr. Olsen? A. From
Dodge Street north, and east to 30th. .
Q. Are there any Texaco and Conoco service stations
in your trade area? A. Oh, yes. I think there are 15
Texaco and 7 or 8 Conoco.
. (3477) Q. Of the Texaco, how many do. you regularly
- solicit? A. Four.
Q. -Do you cafl on the other eleven? A. No.
~~Q. Have you ever.-called on them? A. Yes, I have.
oe, | Hay semey! A. Probably not for . the last two
“years.
Q. Why did you give up? q
Mr. Royall: ” Objection: ‘
ae Examiner Kolb: Overruled. .
By Mr. Dias: F , ; Ye ,
Q. You may answer.. A. Because I couldn’t do any ©
- business with them.
Q. Of ‘these four that you ‘sell, what products do you
. sell to them? » ‘Can you name _— Texaco stations? A.
CanInamethem? .
“@ Yes, the. four. A. I think 80, Wager Texaco.
TA 885
x . : ¢
. Ted Olsen,-for Commission —Direct
‘Sse My, Lorenzen: Could you give the address,:too? —
's, _ The Witness: 1540 North Saddle Creek. —
By Mr. Dias:
-" Q. What do you sgl to wees A. Gates fan belts,
AC spark plugs. .
| Q, Anything else? (3478) A. ‘Thermostats,
@. Do you sell them any tires? A. No tires.
_.Q? Batteries? A. No batteries.
. Q. Anfi-freezet A. I think he has bought fines or or
Gases of Prestone this year.
Q. Do you mean 1956? A. 1956 and 1957.
Q. This.season? A. Yes. ~
Q. What tires and batteries does that stafion haidle,
if any? A. Goodrich. 7
Q. Both tires and batteries? A. You.|
Q. Do they have any Goodrich accessories? A. Yes,
chemicals that he buys from Goodrich.
‘Q. Is that an owned station? . Does: he. operate and
own that station? A. No, that is a leased station. sesith
Q. ‘What is the next Texaco station?) A. Pearson.
Q. Spelf that. (3479) = 2’-@-8-I'-8-0-N.
. Q. And the address? A. 54th and Military. ;
: Q. Before we go on Ps that one: Do you sell any fil-
ters to Wager’s? A. No. ,
~ " Q. Have you ever sold him any slters A I did when
“he first went in there.
Q. When was that? A ‘That has sage about two years
ago. .
'Q. lew long— A I sold him one or two shigments
and that was it.
Q. When was that? A. When he first went into the
station.
\ . '
r,s «SA 886
Ted Olsen, for Commission—Direct. 3
Q. That is when he bought them? A. Yes. | %
Q. Did he buy any more after that? A. No.' |
> QQ. Why? A. Well, he explained it to me, that he was
under srecsiass by his— . ~~
7 + ca * i
i Genii his oil ee. eee his (3480) 7
oil company.
ss “
* © *
Q. You mentioned Pearsons, and the address. What .
do you sell to that station? A. Not very much. It is mis- -
‘eellaneous items mostly: polish, white sidewall =, car
soap, @ tool now and then.
Q. Do you sell them*any filters? A. No, I don’t.
Q. Anti-freeze? A. No anti-freeze.
.Q. Tires? -A. No. . ee ee Se ae
_ Q. Batteriest-A- ‘No. Occasionally some inibiale.
(3481) Q. Do they handle tires and batteries? A.
- Yes, and he handles Firestone brand. ©
Q. Of both tires - and batteries? A. Yes.
Q. Does he « own the pation’ A. No. I think it is leased.
I am sure it is.
Q.-What is the next station? A. Houlton, _ 41st and
Dodge. 3
eer.’ » What do mK buy? Tires? * No.
Q. Batteries? A. No. They don’t buy tires or bat-
teries. "2
Q. Filters? A. I sell him filters occasionally.
Q. What type? A. AC. Thermostats, some gaskets,
some chemicals, and polish. ,:
-_Q. Any anti-freeze? A.No. - :
'Q. Do they carry tires and batteries at is station!
- A. Yes, they do,
_—
JA 887°
Ted Olsen, for Commission—Direct
Q. What brand? A. Firestone. ' Ay is acer |
Q. Does he own the station? A. No. That is leased.’ |
(3482) Q. Do you have another Texaco station! A.
Whitney.’s Texaco, 70th and Dodge. : %
Q. Do you sell them? A. It is usually. sileiiitlaassinin
,
- items. ; ‘Shock absorbers, a few chemicals, ocenatonally sell
him an AC filter.
Q. Any anti-freeze? A. No.
Q. Tires and batteries? A. No, sir. ;
Q. Do they handle them? A. Yes, they handle them.
Q. What brand? A. They handle Firestone.
Q. Does he own a station? A. No, he doesn’t.
Q. Do they have any others that you sell to? A. No.
Q. Any others that you, tried to-sell tof A. I have tried
~ sell all the rest of them. I. can’t remember them all.
' There is Ray’s Texaco, 30th and Pratt, and Jensen aioe
ers, at 72nd and Blondo. A
. Q. Any others that you can think of? . Not offhand.
Q. When was the last time you tried to sell to Ray’s?
‘A. It has been over & year ago. |
(3483) Q. Does he own the station? A. No, that is o
leased.
Q. Does he handle TBAT A. Yes.
‘Q. What brand? <A. I am not sure, but I think Fire-
stone. ~
_ Q. Jensen Brothers, x when did you last iS to sell them?
A. Along in November,
Q. 19567 A. Yes. aoe. | _
Q. Do they own. a station? A. No; that is a “leased
- station.
-Q. Do they handle TBA? A. Yea, :
Q. What brand? A. I don’t know. Frankly I don’t
rginember. I believe it is Goodrich. I .am not sure.
—
Yes.
oy kr
JA 888
a“ Olsen, for Commission—Direct
Q. You. say you sell to seven Clases, or there @re seven .
in your territory? A. ‘There are about seven.
Q. In your sales territory? A. Yes.
Q. Do you sell to any of them? A. About three—four.
Q. Can you name them? —{3484) A. I call on four. .
Q. Can you name ‘the four? A. King Conoco, at 60th -
___ and Ames. They have another station at 42nd and Ames,
under the same name. There is a Guildersleeve. |
Q. Do you sell King Conoco anything? <A. It is a new
station. We sold them some equipment. - And at one sta-
tion, at 60th, I have a stock of thermostats in there and a
' - stock of battery hold-downs, plastic battery hold-downs. :
- Q. That is at the 60th Street store? A. Yes.
Q. "How about the 42nd Street store? A. I haven’t. sold
_ them anything except battery charger, since they have beén
in there.
Q. Which is the one which has wlan recently? A.
» 60th Street is a new station. Last fall, or last summer.
Q: Was it that station that you sold some equipment?
A. Yes. -?
' .Q. And the thermostats and battery hold-downs'?. A.
(3485) ‘By Mr. Dias:
Q. What is the King Conoco Is that a leased station? -
A. Yes.
Q. Ain they egerving TRA A. Yes.
_ Q. What brand? A. They did have Goodrich and re-
cently they switched to Firestone.
Q. When was that? A. Within the last couple of weeks.
~ Q. Wher did you first call on that new station? Were
ve. open for business when you called on them? A. Yes.
They h had just opened. - .
A
a.
Pa . Wa
‘JA 889
=>
| Ted Olsen, for Commission—Direct
Q. And when they just opened were their TBA supplies 3
in the station? (3486) <A. Yes, sir.
Q. What brand were in there at that timet* A, Good-
righ was in there originally. .
Q. What about the 42nd Street storet A, They have
- Just recently taken that over, within the last month.
Q. Did you call on them when they first opened! A.
Yes. . - ‘al
Q. Were you hare the first day? A. No.
Q. How abOut the 60th and Ames Store? Were you
-. there the first day it opened? A. Yes. I think I was..
Q.. How about the 42nd and Ames store? When did you
_ get there? A. It was the following week.
Q. A-week later? A. Yes. ae
Q. What was in that station? A. At that time it was.”
Goodrich. . You are talking about mamas - |
Q. Yes. A. It was Goodrich. : me
Q. The two stations for King, ieee that. take care of |
two of the four that you call on? (3487) A. Yes, sir. .
Q. What is the next Conocot.. A. ‘Bray’s Conoco. He
| is at 204 North 30th.
~ Q. What did you sell Bray’st” A. Ignition parts nail
thermostats.
Q. Tires? A. No.
Q. Batteries? A. That is about all. I sell therh.
Q. Does that station handle tires and batteries? A.
Yes.
Q. What bend? A. Goodrich.
Q. Does Bray own the station? A. No. It is tint:
Q. Do. you have another one,. another Conoco ‘station?
A. Guildersleeve.
Q. Where are wid located? A. 42nd and Nebraska
Avenue. ~
on ; *
JA 890
Ted Olsen, for. Commission—Direct
9Q ‘Do you ‘sell anything to them? A. Not very ind.
But I call on him -because he bought equipment from a
when he » first went in there. And he has ‘Songht a lit
stuff since.
Q. Such as? A. Mostly tools. : °
‘ (3488) Q. Is that what you mean by “‘little stuff’? A.
Yes. a ch a
-Q. What. is. the equipment that you mentioned? A. - |
ey bought a jack and Battery Charger. oie
Q. Anti-freeze? A. No. | , es
Q. Tires, batteries? A. No.
Q. Filters? A. No, sir. . ;
. Q. Does lhe carry tires, batteries, iin anti-freeze? —
“A; Yes, sir. 2
Q. What brand? A. It ie—he thas a Goodrich setizp.
Q. Does Guildersleeve own the station? A, No. It is
leased.
Q. Are there any other Conoco etationst A. Not that
I call on, no, sir. ~
,Q@ May I guggest the name Babe's Conoco! Does that
Tefresh your recollection? — A. Babe is out of business now.
Ididecllonhim .
Q. When did you call on Babe! A: I-think that has
been two years ago. About two years ago since he left the
station.
Q. Where are they looated? (3489) A. 69rd and Mili-
Q. ‘What did you cell to himt’ A. ‘a6ld him most every-
thing at ’firat, esha eater ACR Gates hose
and fan belts. \ ee
-Q. Batteries? A. Batteries? ‘No, T don’t think we ever
sold him batteries. Or tires, see?
Q. When did he stop buying? A. I think the lect eix
months he was there he. quit buying. He had bought filters
*
JA 891
Ted Olsen, i: Coiansttsion—-Dirett
from us but he stopped buying Fram filter He left T
a4 don’t know why he left.
Q. Did he give you any reason for not buying an
products? A. He: saki he was'eupposed to: buy diem. frei :
. Frost. ;
Q. Who tld thim that? A. His salesman. hs ale.
man who.called on him. | r:
Q. The Frost salesman? A. From Frost. :
'Q. What line did he handle? A. Fram.
Q. I mean—. A. I had’ Fram with ‘him, and he con-
tinued with.Fram. - i
Q. Did he carry Firestone end—Did he cari‘y tires and
bagteries? A. He did, yes. But I am not sure what brand
he carried. |
~ (3490) Q. Does your sales territory take i in Beatrice?
- A. I was in Beatrice before I came to Omaha.
Q. How long ago was that? A.-I went there in ’46.
‘Q. How long did you stay? A. Until ’54. ia
Q. Did you have any Texaco or Coneco accomuts in
Beatrice? A. I had three Conoco. « ‘
Q: Will you tell us about those? A. There were thres
there, and three that I called on. I seld all three of them.
They were all three pretty good accounts. One of them
sold Seiberling tires and Delco batteries up until me about.
the latter part of °53. i
Q. Then what happéned? -A. Dp itikns totes to, sell
Goodrich tires and Goodrich batteries, that I- couldn't sell
him those two products any more. |
Q. Were you able to sell him thereafter? A. I sold him ©
filters and a few other items for a while. But his account 7
dropped I think every month after that.
Q. Dé you know Edeal’s Conoco in Beatriost A. a
is another one, George Edeal. y
Q. That is the last name—K-d-e-2-1? A. Yes.
Ted Olsen, for Commission—Direct
. (3491) Q. Can you tell us about that station? A. He
bought practically everything from us until in 1953. Then
he told me that he had to patronize a jobber from Lincoln,
Chris. He'came down from a truck:every week. He was
_ expected to buy his filters and TBA items from him.
Q. What was that dealer’s name that he had to buy.
from? A. I am not sure of his name. I think it was Chris.
Q. What products does he seli? A. He was selling
Goodrieh line.
Q. May I suggest ‘ine name Chris Beckt A. Beck; that.
is it,
_ Q: De you have ‘another station account there? ‘A. ‘The
-other station changed hands several times.. I have for--
gotten. Weaver was one. There were two after that, that
_ he did business with, up until 1953. And some after that.
__Q. What:did you sell him prior to 531 A. Fram filters.
Q. Tires? A.. en plugs, chemicals,’ batteries.” No
tires. o
Q. And after 1953 what happened? A. I lost the Fram
- business, almost a hundred percent.
. Q. To whom?’ A. And the spark plug wade:
(3492) .Q. To whom did you lose itt A. We still sell:
“them some chemicals.“ To Goodrich—Chris Beck. . .
Q. Did .Weaver carry Goodrich batteries? A. That
~ change didn’t take place until after°Weaver had left. I ..
sold’ Weaver nearly everything he bought. Buftthe next
_ fellow was in there. .
Q. Did Weaver leave prior te 531 A. Yes.
Q Who was in there wheri the change occurred in 531 | |
dé I don’t: remember. I can’t think of his name...
Q. Can you ‘think of -his address? A. ‘It was South
Sixth. I don’t remember.
-Q. South Sixtht A Yes. ~ — *
Q. In Beatrice. How far is Beatrice from Omaha? A. oe
About ‘100 iniles from Omaha. Forty miles frbm Lincoh. %
é
i. "Lge ie mee
Ted Desh; for Commission—Crosa ,
Q. Babe’s Conoco, i is that owned.or leased! he It wah
; a leased station. It wasn’t a new station. ~ :
Q.. How about eas fot AL That was a new, r station
’ when he went in 3 ‘
Q. Leased? or = A. tensed! | pa
, ne 6 e ‘e . x 3. . Bie
(3497) .Cross-examination by-Mr. Lorenzen:
Q. How about H. E. Smiley, 50th and Underwood! Is -
he in your terrifory? A. Yes, he is.
Q. Do you sell him a few. things. (3498) Ze ‘He has .
a garage called Smiley’s garage in the rear of his place.
I sell him some garage’ items, some seraeere parts, .
thermostats and Walker mufflers.
Q. And he is one of these leased’ Texaco stations where
‘he sells his gasoline? _A. The station is. But the garage
is not: leased. ’ “He owns that garage..
-Q. It is part of the: same operation, isn’t it? A. Yes.
; Q. How abont Paul Steers, at 42nd and Hamilton? A.
I a call.on him oceasionally. © - °
Q. And you sell— A. Paul at one time was a very good °
~ customer. —
-Q. And now you ‘still sell Mit Pvvetiide: don’t yout
A: I have known him for years. I don’t think I have sold
him any Prestone for two years? ig.
Q. You: ‘sold him about $240 worth - of equipment or
products of one kind or oe withinghé last tow ve
on ‘7 A. In a year’s time.
-Q. The last few months. “AL No: Cee ‘
-Q. ‘Within the year? A. Within the yeat sini:
_Q. Mr. Talmadge at 42nd and Ames? / ¢ * r don’t call-
on him. Raeale RRA sale Gis
A.*
“<a
b.t1e
J
JA 894
/
Ted Olsen, for Commission—Cross
(3499) Q. You don’t know, come ‘a, I vesin him but
. I don’t call on him. Bia
~ Q. And Fred Tex, at 60th and co ea) A. That i is not
- in my territorx® That is south of Dodge. 7
Q. Too far south is it? How about 21st:and Broadway?
- Is that in your territory? A. No.
‘ * Q. Mr. Wager—your sales to’ him have been in the
neighborhood of about what? $1, 200 during the year? ‘A.
I would-say that.is possible. | don’t have. any way of. ,
knowing exactly, ‘-
‘Q: That sounds not too, far cout of line to you. A.
That’s right! %® », ak
'Q. When did you, ‘haye this seeoiuuraaitbide with Mr.
| Wager about cartridges, were they, for the oil filters? You
" testified about some ‘conversation that you had with him.
‘A. That’s right. |
Q. About when was that? A. It is shortly after he
peed up there. I would:say in the last year and a.half.
- J think he has been there two years. It has been within
the last year and ahalf. ~— .
Q. Can you place the conversation any mére definitely
than that?. A. No, I don’t think I can. I had no reasén
. for trying. to remember it. . 8
(3500) + Q. You think: it took place sometime within
“the last year and a half?’ A: Yes.
Q. Mr. Wager buys Gates fan belts from you? A. Yes. |
- Q. And radiator hose, and AC spark plugs, among other »
‘thingst A. Yes. : —
— Q. You sell him - aye quite tegularly, don’t yout Ay :
Yes, I do. | ‘ =
Q. Those fan Séilte are various sizes? | A. He has. a
complete stock. ; ,
Q. Where do you keep fan belts? I don’t know much | ,
about this business. Do you hang them up ona Tack of
MS some kind? 4. That’s _. -
?
: him about $75.00 per month of items, don’t you? In that |
|
JA, 895
Ted Olsen, for Commission—Cross
Q. And Se of the fan belt usually give a
you something to hang them on? Is that: the way it works? .§ \
' A. They furnish the rack, yes. >
Q. This chap Houlton, you sell him about the same.
amount as you do to Wager, don’t you? In dollar volume
. it is abut the samet A. It could be e little less, if any-
ss: ‘
--'+Q. You think it might be a little hient = I would. guess
‘that it would be. Sieg
Q. But you don’t know that for sire “iihon A. No;
sir. te
(3501) Q. It might be about the same?’ AL 4 said I
think it- would be a little less. te 4
Q. How about Mr. Leon Pearson? Would 4 ou say you
sold-him an average of about: $50 a month of one — or.
another? _ A. Well—
: “Q. Including Rislone. A. I would i — that would
be pretty close to correct. —_-.
‘Q. Mr. Pearson i is in one of these Jeased stations, as-is -
also Mr. ‘Wager and Mr. Houlton. e — correct? | A.
ie soe ss
Q. They are all in leased stations. In addition to that. |
you know, don’t you, that Mr. Pearson is. the son-in-law of ——
the Texas ‘Company state ‘manager? ‘A. I know there is
some connection. I didn’t know what his capacity was. |
Q. Mr. Whitney is at 70th and Dodge. And you sell
neighborhood? A. I couldn’t. be too sure of that either. .
That seems like it’s pretty high for his purchases. -
Q. You sell him AC: filters among other things, don’t
yout A. Occasionally.
Q. The $75.00, it is eens in that neighborhood
It. may be less, you think, but you don’t have any de
recollection of how much less? — A. No, I aren’.
JA 896 -
-
Ted Ofomm, for Commission—Cross
@ Jensen Brothers. You sell % them too you said? A.
I used to call on ‘them, I said. I haven’t called on them
for a couple of months.
Q. You haven’t called o on thom for a couple of months? .
ca Por a
*. Q. What did you sell them before that? Kendall Mgtor
Oil among other things? A. I thin’ he bought one cese of
Kendall motor’ oil when he first went in — He has it
in the back room,, 4
Q. This: is when he first arent in? A. He has it in the
back room. . He |showed’ me where he had it ine the back
room. in a Havoline case. .
Q. That is where he stores his supplies | and — boxes
of things? A. He dumped it into a Havoline case.
-Q. He did? That wasn’t a very nice thing to do, was it?
A. I didn’t like it. |
Q. I didn’t think Havoline would like it ites.
Do you know: how much any of these people on whom —
you call also buy from your other competitors, such as the |
Anderson Companyf A. I am sure I couldn’t tell you.
Q: You 'couldn’t tell about that? A. I would.have no-
: ee of knowing. .
(3503) Q. In some teutnnien do you. know that they ;
buy from:Anderson also? A. Yes. ay.
_ Q. And there are about ten I think. We — had a lis
' of competitors in this Omaha area with whom you compete
in addition to the competition furnished by the suppliers|
of Goodrich and Firestone, isn’t. that about right? - A. I'
| — so.
~ . Q, And those fellows have salesmen out, beating the
vais so to speak, too," in the same territory where you
. ares A. Right.
Ted Olsen, for. Commission—Redirect Man
Cross-examination by Mr. Barton:
-
(3506) Q. That is rather common, isn’t it, these serv-
ice stations, some of them who don’t purchase very much
- will, when they are down to the store, pick up when you
don’t come around? A: If they go in mre and pay cash,
I have no way of ‘knowing _ Sens ;
Q. You get a salés commission on it disuaide it is sold
in your territory, but you don’t know about-the particular
sale? A. I don’t know about, it unless it is enanees. Unless
“it is an account—open account. = .
Q: But you still are paid a sales commission on that.
which i is sold to somebody in your area? A. Yes.
Q. And that is quite a common occurrence, isn’t it? For
a your customers to go down to the store, go to the store
and purchase on the spot for sales they have? A. It is
_ more so in other territories than mine, because lam further
out. It is true downtown. |
'Q. The people make it a habit of going to the store and °-
thus not tying up so much capital i in their stock? A. Yes.
Q. —_ aa is known as a pickup? A. Yes.
re i,
(3508) Redirect examiwation by M r. Stes
_Q. You were asked about -Paul Steers’ station. j
stated at one time they were good customers. What is the .
’ situation now? A. Right now we sell Paul ignition parts.
é Q. What did you sell him? A. Before that we sold
him about everything.
Q. Including tires?. A. T was talking about the old sepa
Paul has been back there a long time.
(3509) Q. How many. years? A. I am not sure of
. that. But it has been; I would imagine, at least.15 years.
_. JA 898
Ted Olsen, for Commission —Redirect
Q. You only came up here i in 1954? A. q lived here be-
fore that. —
Q. How long ago was it? ‘ Before the we war.
Q. Before the war? A. Yes; . =.
Q. Which onef Korean or the World War II? A
- World War Il.
Q. Was it at that _ that he was a good cute’
A. Yes, sir.
Q. How long. did ss ontlanisls to be a good customer?
A. I don’t know when he quit being a good customer,
because I left this territory. When I came back three
-years ago he wasn’t buying much from us. .
Q. What is ‘he? .A Texaco station? <A. Yes, sir.
Q. Does.he owh his property? A. No, he doesn’t. ‘hat
Q. Talmadge—you don’t know him but you call on him.:
You were asked about a A. I know ie but
_ don’t cajl on him. =~
_. Q. Did you ever call on him? (3510) “a I called « on —
. him probably the first six months I was-here:
Q. That was in 1954? A. 1954...
Q. Did you sell him anything at that time? A. —:
very little. Didn’t pay me to call.on him: — :
Q. Is that why you gave, up calling on him? A. Yes,
sir.
Q. That is a Texaco shatinls toot A. Yew, sir.
Q. Does he own the property? A. No, sir.
Q. Mr. Barton asked you about a series of. competitors
who were selling around ‘to these various Conoco stations. —
’ I don’t think I understood : your answer.
Is it your answer that you knew there are competitors
around? Was that it? Or did you say that you knew they
were selling to these various Conoco. stations? -A. I don’t
recall. The question was did they have other salesmen
calling 7 hae. I knew that, yes..
JA 899
- Ted Olsen, for Commission—Recross
. Al Scoville, for Commission—Direct —
Q. You knew they had other salesmen calling on them. °
Do you know whether or not they buy from. those other ~
salesmen? A. No,I don’t. waite :
Q. Do you know what Paul Steers is handling now in -
the line of TBA? (3511) A. Yes. “He handles Goodrich.
Q. Tires and batteriest A. Tires and batteries.
Q. And Talmadge? Do you know what they handle? _
A. I think Goodrich. :
a .
Recross examination by Mr. Lorenzen:
Q. Did you sell. this fellow Steers before you went
away? A. Yes. I knew him before I went away. |
- Q. He was a very good friend of yours? A. Good
friend of mine and good custorfier of ours. il
Q. Then when you left, just before the war, some other
salesman of course took over that tersitory. Is that right? .
A. That’s right. Mer cent eee
Q. Then wlien you came back you found he wasn’t buy-
ing as much from this company as he had before? A.
That’s right. Aug Octe Se, oe ee
AL SCOVILLE ‘was called as a witness for the Com-
mission and, having (3512) been first duly sworn, was
_ exatnined and testified as, follows: |
- Direct examination by Mr. Dias: .
__Q, Will you stats your full name and business address
for the record? A. Al Scoville. .
’ Q. Business ’address? <A. 730 Pacific. Sidles Company.
Q. How long have you been employed by Sidles, Mr.
Scoville? “A. Hight years. - - -
~ . SA 900
Al Scoville, for Commission—Direct | i
@ In what capacity? A. Salesman.
Q: For-the full eight years? A: For the last six po.
Q. Prior to that? A. Counter salesman. |
Q. What is your sales territory? A. Omaha, south of
Grover Street.
Q. Are there any ' Texaco sialiine in. your sales area?
A. There are four lessees.
Q: Is that the total stations in your area?’ A. Total
. Texaco stations? 1
'@. Yes. A. No, sir.
(3513) Q. How many are there | in your area, if you
know? A. There are six.
Q. How many do you call on? A. Four:
Q. Can you name them?’ A.'The ones I call on?
Q. Yes. ..A-Bob Jackson’s Texaco Service.
" Q. And the address? A. 42nd and Valley. —
. George Peers, Texaco Service Station, « on 42nd and L
Streets,
ar * * And the next_one? . ‘A. Charlie Cox Rises Service, - ~
13th and Harrison. ‘
Q. And the other one? A. Kress Texaco.
Q. Where are they located? A. Bellevue. |
.Q. Do you sell to Bob Jaékson? A. Sold him equipment }
only. And he has picked. up on several occasions emer-
‘gency items and equipment pieces.
Q. Have you ever tried to sell him batteries li acces-
‘sories or tires? A. I mentioned them. That is — as
far as I got.
Q. Does he handle them at the station? —— si handle -
(3514) tires, batteries, accessories at the s-ation? © A.
Yes, he does. ~
- Q. What. kind -does he handle? hk. - Firestone.
Q. And George Peers? A. He is @ new one. He owns
his own station. :
JA 901
Al Scoville, for Commisston—Direct
Q. He owns his own station? A. Yes. .
Q. What do you sell him? A. Fan belts, thermostats,
all the chemicals, hose clamps. All access( and ‘TBA
* items, along with other jobbers. perme ey
‘Q. Do you. sell him any tires and batteriest A. No.
He handles Firestone tires.
2. What batteries? A. He handles Grant batteries.
“Q. How about Charlie Cox? A.:Charlie Cox I sell
ignition parts and thermostats’ and fan belés.
Q. Fan belts? A. Yes, sir. ,
. Q. Have’ you ever tried to sell him tires and batteries?
A. Yes, sir. He sells Firestone. °
Q. Does he - ‘own his own property? A. No. \He is a:
‘lessee.
- (3515) Q. How about Kress? A. Sand: I sell him a
small amount of ignition. Very small. .
Q. Anything else? A. He handied Kendall oil, “eral
keeps it in Texaco boxes.
: (3516) Q. Do any of those ations ‘siaedibigs your
anti-freeze, Prestone or Peak? A. George Peers does.
Q. What does K:rress—does handle tires amd batteries?
A. Yea:* ; |
Q.. What brand? A. B. F. Goodrich.
Q. B. F. Goodrich? A. B. F. Goodrich.
Q. Does he own his property? A. He is a lessee.
Q. And you said there are six in the territory. Have
you ever called on the other twot A. Tex Service Sta-
> tion, et 60th and L, and R&R Texaco, 33rd and Q. R&R
has only been there about three months. The previous. -
lessee was-there only a short ‘period of time. And -the
previous one to him, Holcomb, had been there about two
years. I did little busimess with him but mostly pickup
items.
Q. How long has ‘Tex’? been at 60th and Lt A. Thir-
ty-five years.
TA: 902
Al Scoville, for Commission—Direct ns
-Q. Thirty-five years! A. He owns his own station.
Q. And: B&R! <A. He has been there about two or
three months.
1 (3517) .Q. Do you recall when the station opened?
The day it opened? -A. At 33nd and Q?,
| Q, Yes. A. The etation was there when I was on the
territory.
Q. A new operator? A. There have been three lessees,
since I have been here:
Q. How soon did you call on that station after the
latest lessee had been there? ee ee
\ Mose left there.
\ Q. How about Conoco stations? How many Conoco are
- in your termtory? A. Four.
— Q. Total of four in the territory? A.. Yes.
Q. How many do you call on? A. ‘Two.
- Q. Do you sell anything to those twot A. Yes, sir.
Q. Will you name thém? A. Detn’e Conooo, at 42nd
endl,
— What do you.eell to them! A. Dean I-sell ignition.
He has about $30 worth of ignition.
_ Q. Anything else?. (3518) Various equipment repair-
ing supplies—service items—on which I make no profit.
We don’t make profit on equipment repairing.
-@ How about tires and batteries and anti-freeze Do
you sell him*any of that? A. No, sir. -
Q. Does he thandle that type merchandise? - i Bai te
' does. Eis aad Be, Wold Hy to Say from mo Bet said he .
- eouldn’t.
Q. Said the can’t? “Why? A. He eaid the readen for.
“it that he coukdn’t buy from.ime is that it would causa too
mudh distarbancs. That is the only reason he gave to me.
'Q. What does he handle? A. B. F. Goodrich >
Q. Does he own his own station? A. He is a lessee.
* JA 903
. Al Scoville, for Commission—Direct.
Q. How ebout the other Conoco station? A. Nieto’s oe
Conoco station. Frank Nieto, 33rd and Q..
Q. What do you sell to them? A; He hae a ensall ignition
assortment and a small brake kit assortment, and Frank
will’ pick up occasionally mufflers and- other automotive
parts, mostly thet are not handled by Frost’ Battery and
_ B. F. Goodrich, —
Q. Have you ever sold him anything élee? (3519) A.
I used to sell him Gates fan. belts. In 1953 I happened to
make @ call on the station. There was a Conoco man and
B. F. | inan in coveralls. I said, ‘‘Frank, what are ©
ea ‘doing?’’ He said, ““They are suppesedly clean-
the station.’’
| "hed Glades bali zusho ei. They started ‘tearing them’
- off the board. Frank daid, ‘‘What are you déing that
for?’’ ‘This Conoco man said, ‘‘We are Just going to clean
up your station a little bit.’’ —
He started resleeving the belts—they have a sleeve for
merchandising—and Firank said, ‘‘De I have to have B. F.
Goodrich belts?’’ He said, ‘“We will take care of it. We
. will put up these boards and from now on we will take care —
of your belts for you.’’ ;
Q. Who were those men? A. Frank turned around to .
me and said, ‘‘ Ai, will you put your belts in these sleeves ?’’
- I said, ‘‘Whatever you wish.’’ It is a sleeve—I think the
sleeves for our belts—they don’t have the same brand belts |
as advertised on the sleeve, and we have’ the same kind of -
sleeve.
It ie a:common practice whén you resieeve belis that
you put them in a eleeve that aye ““V Belt” or the brand
‘belt that is in it,
a What sleeves were they putting on your belts? ‘
B. F.. Goodrich.
(3520) Q. Do you know who those executives were? -
” A. No, I don’t, because the first time I had seen him was
i the lant time T hail com him at thet partioniar sintion.
oz, “Ps ‘¢ » .
o .
’ é Hy
. 4
JA 904°
Al Scoville, for Commission—Crass
Q. When did that oosunt A. Sestbcineibianeit 1953.
Q. Have you sold him ‘belts since that tue? A. The
otily ‘belta -we eell, some telephone company trucks in the
service station. Some of those ‘belts, we handle a very
broad coverage of belts which are not ‘handled by B. F,
Goodrich jobber, and we pick those up occasionally.
; Q. Doce this Nieto carry tires and hatteriee, also? A.
Yes. / sl | ! tg EES |
Q. What brand? AB. F, Goodrich. ik
C Q. I take it he doesn’t own the station? A. He is a
fad * *
_ Cross-examination by Mr. Barton:
g: /(3523) ‘Q. How often have you called on Boyd’s”
hee Conoco?- A. That is now Fratk’s Conoco?
Q. Yes. A. 1 called on it when Boyd was there. He
had a one-bay station. I would ask him if he wanted
filters, like C-4 Frams or wiper ‘blades, a small order. He ~
said I had better save that for B. F. Goodrich. They don’t :
like to express— -
"Q. As a matter of fact, i bought $500 from ‘you last
year, didn’t he? A. Frank? From Boyd’s Conoco? Yes.
Q.:24th and G. A. Boyd’s Conoco. Of that $500, $300
of it was for a target machine ‘that he had on a shooting
“eo: And he bought from Storz’ supply! A. He bought
‘one buffer from Storz Supply.
Q. And he bought from Targay Auto Supply! A. All ae}
items.that he didn’t stock in his place“of business.
' Q..Do you mean he would na them up as he needed
them? A. Yes. - ¥
4
.
s
* ( ane aor ;
' Al Scoville, for Cémmisgion—Crdss
| Q. Which is a common practice among service stations
located in the downtown area? A. Yes, it is, because they
haven’t the facilities to stock. ae
(3525) Cross-examination by Mr. Lorengen J te i
ea ye ge: 6
Q. Are you on more friendly/ with these, Conoco
dealers than you ate with the Texas dealers? A. ‘No, sir.
- . Q. It just happens that you had’ some information. about
where thosé others bought and you don’t have it-in the
case of the Texas Stations? Is that-itt A. I have sold
Bob Jackson atire changer and,some, tire repair: tools..
Q. Do you know that he gets his thermostats, his spark
plugs, his filters from Targay or Jones : Auto, which I
guess is an affiliated company? . A. He could very pos-
sibly. I don’t know where he gets that. I have not been
able to sell him some of that stuff.
Q. This R&R Company, do. you know that they ra a
‘substantial volume of purchases. from your competitor, the
‘Anderson Company? A. Yes, they: ‘have an Anderson
ignition assortment. :
Q. And they also ‘buy— af Oaxpuretion m au stuff like
that. oe
- (3526) Q. This ric! Fred Tex. You said you couldn't
sell him much of anything, didn’t yout “A. Fred Beis is not
a lessee. i
- . Q. That’s right. “You testified you couldn't. sell in k
auch of anything. I guess you can’t according to these fig- a te
ures. A. No. a
Q. He- buys from Carl Anderson and Company? A I
‘have not ealled on Fred Tex.
* ¢ @
ee ia ee
‘Al Scoville, for. Commission—Cross
(3527) - Q. Do you know that a ‘eee teen Carl in
detson and Company and Storz?. A. He does buy from
Storz Supply Company.. Carl Anderson I don’t: know.
Storz Supply is more parallel to us than: Carl Anderson,
Carl Anderson being an ignition. and carburetion ‘specialty |
house.
Q. That is what ‘Carl: ‘Anderson is? ry Yes. Ignition
and carburetion- specialty hopse. They sell Rislone and 7
Auto-Lite batteries. The only TBA-items they sell.
' Q. And you haven been able to sell this fellow Tex
anything, or do you sell him a'little? A. bee used to _ up
on cash payments a little bit. _ a eae |
Q. And that is all?..A..A very small ssi
(3528) Q. You sell -Charlie Cox Gates fan belts and
AO filters, and some kitid of thermostats which your house
sells?’ A. Yes: Ignition, Gates belts, and thermostats.
. Q. And you have sold him those Gates- belts over sonie
time, haven’t you? A. Yes, I have. Previously it was —
Brooks. When Brooks was a lessee it was Gates belts ard—
. 'Q. Cox took over from Brooks, came in as a new lessee.
and continued to handle Gates belts? A. Yes:
Q. And the same with the AC filters? A. He doesn *
: have AC filters.*He has Fram and Firestone filters. :
.. -Q. Are. you sure? A. He might have one or two. But
) “his. predominance is Firestone. - .
: -Q.. And also. Gates” radiator hooeat A. Yes, he has 7
Gates radiator hose: _
= Q. You sell him that? A. Storz Supply, they handle his
hose. I take care of his belts. ~*~
Q: ‘tors Supply is another sompetitor of .
Yes. | :
Qa. How about the thermostats? ose he get those from
yout. A: Yes. |
(3529) Q. And he hee been geting those from you for.
a too? A. Yes, sir. He does. . ,
JA 907
| -Colloquy
Q. How about the Everseal Zasoline and radiator capst
Does he get those from you? A. Yes, sir, . stor
~~ Q, And he has done that for sometime? A. For about
four or five months. Yes, sir. Y Cane
_ Q. He has just been in there about ten months? A‘ Yes,
; Sir. i. ase
» Mr. Lorenzen: That-is all. eee ‘
e * s.
J
.. Mr. Royall: Your Honor, this hearing ‘has illus-
«trated (3530) ‘something we have said: before, and
right now it.is right. before our. eyes and in our
minds, and I want to make a request of the counsel
for the government. | ‘
We find that in selecting witnesses for territories . ’
in these cases, particularly in. Omaha, there are a’
- eonsiderable number of gaps that don’t cover some
of the larger purchasers—dealers who are. purchas-
ing goods from these and other companies. It would ©
_ certainly facilitate this case in general, and prevent
the possibility of having to come back at least fo ©
Omaha, if they would be willing to furnish us tomor-
- row the amounts of TBA purchased by the following
_ Texas stations— ‘Scant i oee} ae
‘Mr. Dias: Before you go on, who is supposed to
do this? Us? | ABST Spite aaa
Mr. Royall: You. . - et
Hearing Examiner Kolb: Supply what? | es,
-. Mr. Royall: From Sidles, Anderson, ‘and the
others that they have put on, the jobbers. The sta- ~
tions that we have in mind are the Virgil Allison sta-
* tion; at Waterloo, Nebraska; C. R. Anderson sta-
~ tion, at 501 East Broadway, Council Bluffs; Frank
” Kerny station at 20th and “<Q? Streets-Omaha. os: Oa
‘JA 908 . ic \
Colloquy
9, Ge i an — Examiner: Kolb: “Those are all stations
NL that haven’t been discussed by any witnesses?
ae Mr. Royall: By ary witnesses ofthe company.
Hearing Examiner Kolb: You can discuss that ...
with (3531) Mr: Dias, what he ‘wants to do. I
'~ wouldn’t order him to'do anything on that.
3 :, Mr. Royall: I haven’t asked your Honor to
a. ' order. I am making a request. _
<_s Hearing Examiner Kolb: Make your request to
him, to Mr. Dias. Not to me. You are not requesting
me to do anything?
} Mr. Royall: No, sir. © ; a
, - +s Hearing Examiner Kolb: Then ieee is no use
of me staying here.
Mr. Royall: Your Honor, I want it to appédar on
‘the record that we are requesting this in connection
with the examination of these witnesses: Art Fried- }
_ gen, 405 East Locust Street, Carter Lake, ‘Igwa ; :
-_-, _ Ed Hughes, 20th and Douglas Stree}, Omaha, Neb-
ee. _.. Taska; Robert Lynch, 2nd and Vine Streets, Council —
‘Bluffs; Bob Piatt, 13th and Jackson, Omaha, . Neb- :
raska.
Those are the mnie ones, — ae They .
. would help. - :
’ Mr. Dias: Who are theyt
‘Mr. Royall: They are Texas dealers that none
of your’ witnesses you put on the stand, Sidles or |
others—
‘Mr. Dias: Have nientionedt
7 Mr. Royall: Not: only have mentioned, they say
eee . they don’t know anything about the quantities, and
ae in many’ instances don’t know anything about. it.
> They brought up-part of the (3532) records, just
__ the reeords for the ones they wanted to testify about.
_Mr. Dias: All right, you produce those. _
)
JA 909°"
Porey L. Kanago, for Commission—Direct
ae ae Mr: Lorenzen: Couldn’t we get the ledger ale
for those accounts just as well as you got. the hand-
picked ones this morning, where the sales decreased?
We would now. like six others to make’ it fair.
Couldn’t you ask the same chap who — those
records to produce these?
', . Hearing Examiner Kolb: Doesn’t your Texas
Company man-have that infermation?
_ Mr. Dias: Of course he does. ey
Mr. Royall: No, sir. . - Fads aye
Mr. Dias: It is part of your rebuttal. .
Mr. Royall: These are dealers, your Honor.
These are dealers. Station dealers. . <
Mr. Lorenzen: These are estimates and incom-
petent. —
Mr. Dias: Put your estimates in.
Mr. Lorenzen: The only way we can get it is to
get the records from the people you have. had tes-.
_ tify. They bring in only a very small and unfair
segment. ~~~
: Hearing Examiner Kolb: There is no use en-
_ Cumbering the record with all that argument. I will
o . gallarecess. ~
S _@e * @
(3538) PERCY L. KANAGO was ‘called as a witness
for the Commission and, first having been duly Sworn, was
examined and testified as follows:
Direct examination by Mr. Boyd:
-Q. Mr. Kanago, will you give us your full name, pleaset
A. Percy L. Kanago. :
Q. With what company are you connected? A. — ,
Supply Corporation.
e
JA 910
Percy L. Kanago, for Commission—Direct
-Q. Where is it located? A. 2215 Hardy Street, Omaha:
- Q. What is your position with the company? A. Sales
. Manager.
| Q. How long have you been with the eoxanetl A. ‘Since |
1922.
. Q. How long have you been sales managert A. Sixteen
“years. -
(3539) Q. Will you-tell us what kind of business is —
Storz Supply Corporation engaged in? A. We are whole-
sale distributors of automotive Sepeeenee parts and ©
equipment. -
Q. ‘What products do you sell? A. That covers several
classifications, sir. == —
Q. What classes? A. Hard parts, that i is engine parte,
tires, batteries, fan belts, spark plugs, a: items of .
motors, trucks, and passenger cars. .
Q: Would you sell radiator chemicals? A. Oh, yes.
Q. How about waxes and polishes? A. Yes, indeed.
Q. Oil filters, fan belts, radiator or hose? A. Yes, sir.
- Q. What brand tires do you handle? A. Century.
Q. What about batteries? A. Delco. .
Q. Do you have any other brands? A. No other brands.
Q. How about spark plugs? A. Champion.
Q. And oil filters? (3540) A. We have two. Fram and
Walker.
Q. Fan belts and radiator ised A. Gates Rubher Com-
3 ist
Q. Mr. Kanago, what’! is your dieting afea? The trad-
ing area of your corporation? A. Using Omaha. as the cen-
ter, it would be a radius of an average of 75 to 80 miles. ~
Q.. What classes.of customers are sold in that trade
area? A. It would be new cars— *
Q. That you do business with, in other words? A. New
' °gar dealers, independent garages, that is independent re- .
. JAS
Percy L. Kanago, for ——
pair shops, service stations—gasoline service - stations, .
fleets, contractors. It could be classified as industrial, per-
haps. I believe that will cover it.
' Q. How many salesmen does © the firm employ? A.
‘Twelve. / |
— Q. Could you tell ys approximately what the annual vol-
ume of business was last year, 1956? A. I can’t give you the
~° exact figure. I would say it approximates a million and a —
half.
Q. What about 1955% A. That was about a: maition and
three-quarters.
Q. And 1954? A. I am only basarding a ones now, on
1954; not so good as 1955. -
(3541). Q. Mr, Kanago, can you tell us about how.
many servicé stations, that is. of all kinds, are in the
Omaha area? A. Do you mean the greater—the area that
we cover? -
Q. I would like. it both ways if you can tell us. I thought.
you might know about Omaha. A. Omaha, yes. That is
right at 350. :I believe the classification shows actually 340.
: Q. What classification i is Gast A. Telephone directory
survey, classified. |
Q. With that number mee you tell us what you would
estimate the balance would bein the trading area in which
you do business? A. I couldn’t. I really couldn’t. . :
Q. In other words, you know it Inst right i in this vicin-
ity! A. That is right.
Q. Do you have any idea how many Texaco stations are
in the Omaha area? A. Thirty-one, according to the classi-
fication.
Q. That is the telephone book ‘A. In the telephone
book..
‘ Q What about Conoco stations? A. Sixteen.
- Q. Does your firm do any business with the Texaco sta-_
tions in this area? A. Some.
JA 912
Percy L.. Kamago, for Commission—Direct
(3542) Q. Can you tell us what kind of business, they
do with them? ‘That is, the type of product you sell? A.
‘I believe, sir, that I would rather—in that I am not actu- ©
ally contacting these people—I would rather that the rep-
-Tesentatives who astualy contact them answer that ques-
. tion.
Q. Do you mean the’salesmen? A. Yes, sir.
a Are the salesmen of your company instructed to so-
licit the. Texas stations for business? A. Yes, indeed.
-Q. What about Conoco stations? A. Yes, sir.
Q. Do they do sof A. Yes, sir. ©
~Q. Mr. Kanago, you mentioned that you wanted the
salesmen to testify about actual contacts with the stations.
I wonder if you could tell us whether or not your firm sells
tires to Texas stations? A. Do we sell tires?
Q. Yes, sir. Century tires? A. No, sir. _
Q. What about the batteries? I believe it is Delco? 7
Yes, sir.
Q. Do you sell batteries! A. The name is Delco.
(3543) -Q. That is your brand? A. That is correct.
Q. Do you sell batteries to Texaco stations? A. If we
do, aa **® strictly on a ried basis. 2°
Q. What would be the categories of dinite you sell to
Texaco stations? A. I still would. like to have our sales-
-men, who contact those accounts, answer that.
Q. What about Conoco stations? Do you éell tires to
cm No. ; :
>
JA 913°
Mannie O. Hansen,‘for Commission—Direct
(3546) MANNIE 0. HANSEN was thereupon called *
as a witness for the Commission, and, a been first _ 7
“ sworn, aaa as follows: ar ae
_ Direct seniieaion by Mr. Boyd:
Q. Mr. Hansen, will you tell us what your full name ist
A. Mannie O. Hansen.
_ Q. What is your, business? A. I am a salesman for
Storz Supply Corporation. -
Q. How long have- you been employed by Storz Supply
peg gs A. Twenty years.
2 Q. How long have you been a salesman? A. Six years.
, Q. What is your sales area, Mr. Hansen? A. I cover
Omaha and a radius of about 30 or 35, miles from Omaha.
Q. What classes of customers do you call on in that
areat A. I call on service stations, garages, car dealers,
fleets.
Yes, sir.
Mr. ‘Royall: Had he finished his answer?
) By Mr. Boyd:
Q. Did I interrupt yout. (3547) A. No.
Q. Are there any Texaco stations in your sales area?
A. In my sales area? Yes, there is. .
: Q. How many? A, On the territory that I, cover ine
are 16, approximately 16.
) Q. Do you solicit—do you do business with the 16% A.I
do business with about 8 of the 16.
Q. What about the other 81 A. I don’t solicit them reg-
_ ular enough, the other 8, due to the number of accounts I
have to call on, and I can’t poy get around to see all
the 16.
Q. You sell the ace of the —_— Corporation? B. .
¥
°@
+ =D
JA 914
o
Mannie O. Hansen, for Commission—Direct
Q. Do you solicit thea at all, the other 8? A. No.
Q. Have you ever done so? A. The other Sf. No I
haven’t.
Q. You say you do business with 8 of them! A. That's
“right.
Q. Can you tell us who they are? A. Yes. -I ions the
list. We have the Ed Schulte Texaco Service, at 61st and
- Military.
| Q. t do you sell him? = He buys quite a bit of
mert ipe, on mostly a pick-up basis-from our store,
which is fight across the street from him. He buys some
Victor gaskets, Harrison thermostats, Heet.
(3548) Q. What is that? A. That is gasoline anti-
freeze to add to your gas. to absorb the moisture in the tank.
Q.: What else? A. He occasionally buys Gates belts,
Gates mats, sealed beams. ss
Q. What brand of sealed. beams? A. Ever Ready; Pres-
‘ tone, McQuay valves, Niehoff points and condensers, tubes.
2. Tire tubes? A. Inner tubes: Yes.
Q. We are interested in TBA products. A. He picks up
some Delco batteries, from us, some Corn Belt tubes.
Q. Is that the brand name, Corn Belt? A. Yes. Fram
filters. I don’t beli¢ve the rest of.it would pertain, outside
of Gates belts and Gates- hoses and (3549) Weed chains.
Mr. Barton: Didn’t you say radiator chemicals?
The Witness: Yes, anti-rust and water pump ]a-
bricant, made by Prestone. ;
Q Is all of this pick up or part of itt A. Practically al
of it-is pick up. ©
Q. Does he pay cash for that or is that on a charge e-
count? A. Some charge, and the bulk of it is cash.
: JA 915
M annie 0. Hansen, for Commission—Direc
Q. Could you \give us some idea ‘of “it his siieling
would be a year, or a month? A. Well, yes. From January, _*e
1956, to January, 1957, it approximately ran $510.
Q. oa A. On 8 pick up basis,
’ yes.
Q. Do you have any idve of how many tires you ‘sold
‘him that year, 19561 A. It wouldn a be over two or four at
the most.
Q. Batteries? A. Ratterios.
Q. Do you have any idea of how\many of those you sold ©
him?-A. I haven’t any idea, no. It would be in the file, but
I don’t approximately know exactly the number of batter-
ies he has purchased.
Q. Does he openlys stock your tires? AY No, sir.
(3550). Q. How about batteries? A. No, ‘sir.
Q. Does he have them in his station at all that you know
off A. No, not that I know of. He doesn’t stock. Like I
say, he doesn’t stock any batteries. - gets them as his
customers demand them. , ~
Q. Do you know whether that is a niet station or in-
dependent station? A. Leased station.
* * *
Q. What about the next one? A. Art’s Texaco Service. .
Q. Where is it located? A. 405 East Locus, Carter -
Lake, Iowa.
_ Q. What TBA products do you sell him? A. Tubes,
Corn Belt tubes. Tubes, Heet, and he bought a set of Weed °
chains. That is about the extent of it.
Q. What has his volume been? A. The only thing I can _
tell us is from August through December 31, 1956, it was
$153.
Q. 1956% A. Yes.
Q. These Corn Belt inner ‘seqgerh does he ice those in.
-o (3551). station? A. Right. Yes, sir -
JA 916
Mamnie O. Hansen, for Commission—Direct
Q. ‘How many of them has he bought —_ yout Do you
know? “A. I would imagine about approximately. 48, I would
‘say.
Q. Do you know what tires he carries? Whet line of
tires? A. Firestone.
‘Q. Batteries? A. Firestone.
Q. What kind of station is it? A, Texaco. :
Q. Does he own the station? A. He owns the station.
Q. Going back for a moment to Mr. Schulte’s station,
~ at 61st and Military, does he carry tires in the station? A.
- Yes. as 3
Q. Batteries? A. Yes,
“Q. What line? A. Firestone.
Q. Both of them Firestone? -A. Both Firestone, both”
tires and batteries.
, Q. Now, the next station? A. That vionld be Eckberg
and Bobbett, 86th and Dodge.
_ . What TBA products do you sell him?: A. We sell
him in TBA—we have sold him some Zerol, (3552) cooling
system conditioner, Champion spark plugs, Trek anti-
freeze, Prestone, Every Ready bulbs, one or two Gates
. belts, and two Fram cartridges.
Q. Over what period of time are you telling us. about?
A. Japuary 1 through December 31, 1956. .
. Did you finish .the list?A,.Well, as far as TBA |
ms. We have Weed chains—he bought some Weed chains
‘ and CD-2 Alemite concentrate, some Hinson ning air
cushions and some equipment.
Q. Have you sold him any tires? A. Tires?
Q. Yes. A. No, sir.
Q. Batteries? A. No, sir.
Q. Does he carry tires and batteries? A. Yes, sir.
Q. What line does he carry? A. Firestone.
~
JA 917 .
Mannie QO. Hansen, for Commission—Direct
| we
' Q. Both batteries and tires? -A. Both! tires’ and batter-
ies, yes, sir... :
Q. Does. qarestone sell accessories. A. I believe they
do, yes, sir.
Q. Do you know Withee or not Ekberg - morn
buy Firestone accessories? (3553) A. Yes, sir. ,
_Q. Do you know which ones he buys from Piresicaet
Accessories, that ist A. a all that they sertid I
believe. .
, Q. Do you seit any ins about the vollilite of business
of this one? A. That we do with him?
".Q. Yes. Bobbett. A. From January 1 through Decem-
ber 31, it ran approximately $365. ;
Q. Do they own that station? A. I couldn’t answer ‘that.
for sure, whether he owns that or whether he leases it.
Q. Have you endeavored to sell tires and batteries to
these three stations that we have ome mene sO fart. A.:
Yes, sir. ‘ —— |
Q. What reasons have been given—
Mr. Royall: Objection. —
_ Hearing Examiner Kolb: Reasons, if any.
ey
| By Mr. Boyd:
Q. What reasons, if any, have been ore
Mr. Royall: Objection. | ee
Hearing Examiner Kolb: Overruled. :
A. Do you want it one by one or an over-all opinion?
(3554) By Mr. Boyd: or
Q. Let’s take it one by oné. Ed Schulte first. A. There —
wasn’t any particular statément issued why he wouldn * “4
stock wae iia tires. There ‘was no reason at all.
~- JA 918°
. Mannie 0. ane, for Commission—Direct.
@ He didn’t give you any Teason?* ry No, he didn ,. | :
- -Q. On that one, before you leave it: Does he have Fire-
stone accessories? I believe he does, yes. pect
oe '_Q., Art’s’ Texaco? \A. Art’s Texaco—
. ae Q. Has any reason been given you there?
“Mr. Royall: Objection. ae | ovine
- Hearing Examiner, Kolb: Overruled. ~
re A. Yes. He stated that he didn ives wanted to stay
with i & nationally advertised brand, like Firestone—that i is
the reason he gave for not stocking Century. That is all T
can tell you about that boy.” ee? %
' «By Mr. Boyd’
* -Q. I may have Sitelihinieted you.: “pia\yon 1 mean. he
wanted to stay with Firestoriet National. brand “A. That. _.
‘is what I meant to say. Yes..:
= fae _ ‘Ekberg and Bobbett told me e that, we couldn't sell him,
(3555) 4. We oul’ sell him tires due to rile fact that.
- he can buy them a lot less at Firestone than he could
ie Pat ee
ee 2 ~Q. Does Art’s tein, the second one: you mentioned,
carry Firestorie accessories? | ‘A. Yes, sir.
.. °-Q. What about the next Texaco station? You gave two.
‘A. ‘We have three. I have one, Ted Carroll Texaco, at Val- |
‘ley, Nebraska.
-Q. What do you sell. him in TBAT: A. We ay sold
a. im, } believe, four tires recerttly. We sell him Zerol cool-
‘+: 4, ** ing system ‘sealer and conditioner ; we sell him usually a
"am or two of Prestone.a year; Ever Ready bulbs, chain
justers, Ever ‘Ready flashlights, Wagoner brake cylinder oho
parts. That pas rr covers the oTBA. et gel
A ee _ See ie i ee a ae ae" to eae ie
~onror
\ f
LZ
a:
CJA 919
Mannie 0.H ansen, for Commission—Direct
' Q. How about batteries? Did you ever sell him batter-
ies? A. No, sir. anes: € ae
Q. You don’t endeavor to sell him any? A.No, sir. .
. Q. What about these tires? You say he bought four. re-
cently. Had he bought any before that? A. No, sir. The
four he bought were mud and snow tires. ‘Olympian mud
and diow tire. . - °°" ‘ ne.
Q. Does he handle tires and batteries? A. Yes, sir.
Q. What brand? (3556) A. Firestone. =~:
Q. Do you have any idea about the volume of: that,ac-
a
count last year? A. Well, I would judge approximately.
around $300. ; fs
Q. Does he own that station? A. He leases. bi
Q. Have you endeavored to sell him tires?: A. Yes, sir.
_Q.. What reason, if any, did he give you for not buying?
‘Mr. Barton: Objection. eS s
Hearing Examiner Kolb: Overruled. —
- By Mr. Boyd: sles
Q. Go ahead. A. Yes, I said he bought four mud and.
snow tires, that is correct. Bat as a stocking purpose, any
quantity, no. if ot wey *
. Q. Tam not sure I got an answer’to the last question,
if he gave you any reason-for not buying. You said he
didn’t .carry any quantity on hand. Did he give you’ any
reason? — . eR Pash ae
Mr. Royall: Objection,
| Hearing Examiner Kolb: Overruled.
A. No specific reason outside of the fact that he felt -he was
obligated to buy the bulk of his purchases through Fire-
stone. . ; nt st _ ele ? :
Mr. Royall: Objection. He said he bought them:
‘om
JA 920.
| Mannie O. Hansen, for Commission-—Diveet
(3557) - By Mr. Boyd:
Q. The next station? A. The next. station would be J
and H Service, 90th and Maple Streets.
Q. What: do:you sell him on the TBA line? A. Delco
battery, Fram filters, I sold~him a couple of tires, Weed
chains, Prestone, thermostats, Lubaidet, Zeeol cooling sys-
_tem conditioner and sealer. } .
Q. This covers the year 1956? <A. It covers Apri
through December, yes sir. |
Q. What was the volume, about? x That ran approxi-
mately $783.
Q. How many batteries did you sell him?, A. I couldn’t
offhand say how many batteries I did sell him.
Q. Does he openly carry the batteries in his station?
Openly display them? A. I believe he buys those on a pick
up basis. -He doemn't stock too many Delco. batteries in the
' , Cio.
‘ Q Have you ever seen them on display there? That i is,
the Delco batteries? A. That is pretty hard to say; whether
Ihave ever seen them on display.
Q. Does he openly stock Prestone? (3558) A. Yes.
Incidentally; he is an individually owned ne, I might
Q. Does he earry tires instock, end battéries? A. Yes.
Q. What brand or brands? <A. I don’t know. exactly
at ‘aa brand his’ tires are; it is not any of the ‘‘big four’’.
. Q. How about batteries? A. Mostly Grant batteries.
. Q.. What about the next station that:you sell to—Texaco.
We have bad five. A! There is Jensen Brothers Texaco.
Q. Where is he located? - A. 1926 North Second.
Q. What TBA products have you sold him? A. I ean’t
tell you that ‘because all that the has purchased ‘he has
bought from the store; Our store in Benson. '
.Q. Hew many places of business. does Storz Supply Cor-
: poration haye? A. All over?
Does
JA 921
Mannie O. Hansen, for Commission—Direct :
Q. In the whole trading area? A. That we cover? _
Q. Yes, sir. A. I believe it is ten branches. leven
branches, including Benson. That would be the 11th one.
(3559) . That pick-up business that has been done
by Jensen Brothers, is that cash or credit? A. Cash. .
Q. Do you have any idea about the yolume of business ?.
_ A. I think I can probably give you an idea. rsasenngel
through November is $11.60.
~—-Q. Is that 1956? A. Yes, sir.
Q. Does te own that sthtion! - A. I believe that ist a
leased station. :
Q. Does he camry tires, batteries? J aioediaht iene :
Like I. say, I never had solicited so I wouldn't ‘be able to
answer that question.
Q. What about the next station? 2A. Pearson Texaco—
Q: How do you spell that? A. “P-e-a-r-s-o-n. ,
Q. Where is it located? A. 5401 Miltary.
Q: Did you solicit ‘his business? A. Yes, sir...
Q. What did you ‘sell him in the TBA tine? A. In the
| TBA line we have sold him .a couple of Deleo batteries on —
adjustment. “Mostly mufflers, tail pipes—Walker mufflers
tail pipes, fuel pumps—AC fuel pumps, Deleo (3560)
shock absorbers. —
Q. Does he carry tires? - Yes, sir.
‘Q. Batteries? A. Yes, sir, —
_Q. What line of tires? A. Firestone.
_Q. What about batteries? A. Firestone :
Q. How about accessories? Firestone accessories ? A.
Yen, ahr ; ‘
Q. Does he own that station? A. I believe that is a
leased station. ng a
; Q. Have you eakigavored to sell him tires and batteries? .
A. No, sir. * ; Batis ieee
JA 922
Manme O..Hansen, for Commission—Direct
J
. Q. How about the next stati
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