# Appendix — Federal Trade Commission v. Texaco Inc. > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386413_0015%3A02 ## Record - **Collection:** Supreme Court brief - **Document type:** Appendix - **Published:** January 1, 1968 - **Citation:** 393 U.S. 223 ## Text 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 | 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 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 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 . | 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. 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 Direct ...cccccs ‘scifi anc aelnn JA 2114 MINI” 5.7). ssiciesinsntoetiiectacanaeceuveseemaadiaias JA 2120 © H. Helmcamp: va a ra a a I cseisstcs: Freak eee kia JA 2123 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 - Redirect .cccnecesenecntinneninnengencn TA 2158.” John T. Bolger 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 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 : ‘ 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. © ° 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? | Ted Olsen, for Commission—Direct Q. And when they just opened were their TBA supplies 3 in the station? (3486) 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? 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! 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 “ 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. . 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? sold them? A. Yes, we have sold . several of-them a little merchandise. (3565): There again it is mostly they came to the store, mostly on a pick up ~ basis. , os 2 ee as ?» ; ’ ; * e @ - (3566) LAWRENCE B. TAYLOR was called as a witness for the Commission and, firat having been duly ee eet Sat RE a tollewe: Wao Direct examination by Mr. Boyd: : “ts Q. ‘Will you please stato your full name? A. Lawrence © B. Taylor. | aids kta guar Weldenee, Mr. Taylor? A. Zan the ‘South Omaha branch manager and salesman ‘whi travels. out of that particular territory. Q. For-what company? A. Storz Supply Corporation. - .- . Q, How long have you held that position? A. I hav eae been in South Omaiha since 1943. But I worked for the firm before at another branch at Red Oak. Part-time I started in June 1938 and went on full-time in June 1941, I believe. Q. Do you travel in this sales territory that.you have at present? A. Yes. _ Q. Could you define ita little more ‘for us, geograph- 7 ically speaking? A. I travel everything south of Vinton ‘Street, in South (3567) - Omaha, south as far as Platts- - mouth, ‘and west. as far as Ashton. . ¥ - ° Q. How long have -you been—I. believe you: said six years in this territory? patina: =e pee nee since — ee ¢ 5:8 z |) 925- . Lawrence B. Taylor, for Commission—Direct , Q. ‘What clase of customers dé you calt on? A, I call on car dealers, independent dealers, fleets, a few contrac- tors and service stations. Q. Are there y Texaco stations in your sales areat A. Yes. - Q. How many? A. I believe there are nine. — Q. Do you sell any of them? A. Yes. | Q. How many? A. Approximately five. | Q. Let’s take them one by one, . What is the fret one? ° A. I call on Cress Texaco in Bellevue. Q. K-r-e-s-s? A. O-r-e-s-s, _Q. What TBA products do you sell’ him? A. I re not sell him any tires or batteries, I. séll him mufflers,. points, garage equipment; car washing soap, windshield wash tis- . sue, towels, thermostats, points, condensers. — Q. Does that. station carry tires. and saci or A. Yes. © Q. What line does it carry? A. Goodrich. "Q. Batteries, toot A. Yes.” Q. How about aecessories 1 A. Yes, they ‘have a full line. . Q. Goodrich? A. Yes, Q. ae Mr. Cress own that station? A. No. ‘He leases it. .2@ What ia thé oxi etation? A. Tall on R&R Texaco ., ; station at 33rd and .Q, South Omaha. . Q. What do you sell them in TBA? A. No tires or bat- Aeries. Ido sell him:a tube now and then on 4 pickup basis. ‘ I sell him a lot of brake parts, mufflers, light bulbs, a few spark plugs, tube repair, tire repair material, and some equipment such ag car washing soap, tire cleaner line. That is about the extent of it. ° : Q. Does that station canry tires and batteries? A. Yes. Q. ——— ;A. Firestone. | >» JA 926 Lawrence B. Taylor, for Commission—Direct Q. Batteries? (3569) A. Firestone. Q. Accessories? A. Yes. ~~ Q.. Firestone? A. Fall line. ¥ .Q. Do: you know whether the operator of that station owns it? A. No. He leases it. Q. What is the next station? and then a tube. I sell him mufflers, tail pipes, thermostats, battery cables, car washing soap, tire gauges. Most of the _.items I sell him is because I am close and I have a truck. ae that I can pegform jack-rabbit service with, and he calls eee iver immediately. Q. Does Mr. alta: carry ‘tires and batteries? — ‘: Yes, he does. — Q. Ts fel A. Goodrich, 9: oe A Accessories, toof A. Yes. . _ "Q. Does he open that station? A. He Sia . Q. Have you endeavored to sell him tires, batteries and (3577) ‘accessories 7. A. Yes,IThave. - - te .. + Q. What, if any, reason did he give you for not buy- img?. A. Their Conoco firm fs tied up with Frost and he ¥; should make hie purdhases there if at all possible. |... Mr. Barton: Move to-strike: “4 a . 5 ian eo gcc mal Motion to strike. de- - ~ ee Lawrence B. Taylor, for. Commission—Direct _ : $-- - af . ; . - By'Mr.*Boyd: . Sa Te *. SL aba Q. Did he tall you thiet A. Yes. ff Q. What is the next Conoco@ ation? A. Nieto—N-1-e- t-0. ied : aS ai ‘ 7 ... Where is he located? A. He is on 33rd and Q. - (Q. What have you eold.him? A. I personally haven’t sold him’ anything. “His purdhases have been—when he "rung into the storé and picks it up, or calls us up we de- liver. — Rt ! Daa fae me Q. Do you have any idea what he buys or has-been bhy- ing? A. Yes. “I have called on him but I have never been. able to sell him. ‘He buys Goodrich. — Q. Tires, batteries and aécessories? A. Yes. - Q. Does he own the station? A. No, he leases. (3578) Q. What reason, if any, has he given.for nat . buying from you tires and batteries? .A. He didn’t give. me‘any reason atall. = ~ medak 1 ae aa ' Q. Do you have another Conoco station? ‘A... Yes, we. have Dean’s. a = ; Q. D-e-a-n-’-s Conocot A. Yes. - -Q: Where is he located? A. 42nd and L. — ’ ; ‘Q. Have you sold him any TBA?, A. No. =) _ Q. Does he have TBA in stock? A. Yes. ix. Q. What,linet A,, He handles mostly the Goodrich line. Q. Does he own that station! A. No, heJeases it. Q. Have fou endeavored to séll him? A. Yes, I have. Q. What reason if any has he given for not buying? Hearing Examiner Kolb: Overruled. A. That Conoco had their own TBA.and he preferred to stay with it. © ~ hitb Me cate iggy x iss I have since ceased calling on him because it -was . (3579) a waste of my time and his, too. ae Pe JA 932 hor + 9 ie Percy L. Kanago, Recalled, for Commission—Cross ’ By Mr. Boyd: | Q. Are there any thier Conoco stations 7 A. T have a new one. : - ..Q, Where is he located A. Sunshine fen 36th “and Madison. \ a Q. Is that a street? A. It is an addition. ‘At 36th and oN Madison. | Q. Do you know: the name of it? A. Grtine Sunshine Conoco. ~ det Q. When you say ‘addition’, pwd you mean a new = _ street? A. It is a new area that started up with all new * homes. They put this neighborhood Conoco in it. — Q. How long has he been in there? -A. He opened - ‘up _ about the 20th of November. -— . Q. 19567 A. Yes. ae Q. Have you sold him any TBAT A. The only ikon. I have sold him has ‘been chains and | some garage eamip- . ment. : o. oe ee . — ’ | : nee pie $ (3582) PERCY L. KANAGO was. recalled as a wit ness for the Commission and, previously having been a? - Sworn, was- — examined and_testified- as _follows:————— Examiner Kolb: Let the record: ‘show *. -Mr. recalled ‘for cross-examination. | Creab-clieuliition by Mr. Royall: Q. Mr. Kanago, there are in addition to your company a number of other wholesalers who cover the same terri- a _ tory, are there not? A. Incour type of business. oo Q. Yes, in your type of business? A. Yes, sir. aes og ' Q. As a matter of fact, as appears from the telephone book also, there are _ a number of them, aren t there? A. Yes, sir. EN 7 JA. 983 . &, Percy L. K Gnago, Recalled, for Commission—Cross . Q. Some of them large, some of them small, but all in» all there art a great many people who call on the varigus (3583) service stations to try to sell’them, are there not? - . A. Yes, sir. ~ af eg SS = -Q. And some of the people who call on them of course do not succeed fn selling them, is that correct? 3 7 Mr. Boyd: I object to that, your Honor, as not = being within the witness’ Knowledge as to what other “°° people do. He ean testify as to what he does. e- : Hearing Examiner Kolb: The objection will be overruled.” — a é: Fgh ioe 2 43 cts Mr. Royail: I will withdraw. that question, your Honor, pending another. , Seat i By Mr. Royall: —, . ke eo eat PO eee _ Q.. You do know, do you not, sir, that the stations don’t byy from all the wholesalers, don’t you? You know that from your observation? A. I can assufne that, sir. | ' Q. These gentlemen who york for you who testi- — fied-in this hearing did not menfion all of the Texaco sta- ~ ‘ tions that you sell, did they? A. They mentioned I believe, - sir, the Texaco stations that they actually gontacted or those that were in their assigned-areas.~- es Q. Yes, sir, but are there other areas not covered by these salesmen? A. Oh, indeed. -, sisi Ao at (3584) Q. Would you be kind enough to let me ask you some questions about some of the Texaco stations which you sell which were not covered by these ‘witnesses? And would you give me your best information on it? -A. If i Q. I understand, if you can. Are yon familiar with the —— fact that your company sells TBA items, including spark _ plugs and batteries, to John Crookham, at Main and Pearl: | * at Council Bluffs, and sells in amounts running from $50 7 ' » - OL Pe a ode .° JA 984 - Percy L. Kamago, Recalled, for Commission—Cross ‘to $100 a month? ‘Are you familiar with that?’ A. Coun- sel, I know that we sell the account.. But for me to tell . you exactly what we.sell him and. in what amounts, I couldn ’t, Q. Iam just asking what you’ do know. A. i veongeiee _, the’ account. But what we actually sell ‘them, sider; I van’t. , &, Do,you know whether or not they buy from Adolph’s Auto Supply Company?. A. Yes, that I do know. | Q. And they buy also, do they not, from the Jones - Auto Company? A. It is Jones Automotive. I do not ’ know again whether or nothe buys’ from then. & . 22 2 CY -6 (3592) .Q. There are other accounts, are Gave: not, . . that are. not covered by these gentlemen who have -been on the stand? A. Do you mean by that are there other Texaco or Conoco stations in the area that our Waele or- ganisation covers? :A. That is right. 'Q. Yes. A. Yes, sir. . : -Q, Can yor tll ue offhind bw many there aret . No, sir, I couldn’t. Mr. Royall: That is all I care to ‘ek you. i aie by Mr. Barton: . ‘s & ; © (3593) - Q. Wali dcdieihians at spcie ieadlualin is pickup , business in the store? A. ‘That in‘ very’ good queptin. We would-all like to know the answer to it. a What roughly is it? Is it,50 percent of your volume? -_ No, I would say that it probably would vary between 20 and 30 percent. ; (3594) Q. And of oouree— A. Actual pickup over the ‘o counter. Q. Te tis Snsivicie ens: the ‘eevise ‘atathonte this it. ie _ ‘among the garages and people like that? A, For the rea- on Sat Gece any, peyetly: sacs sarvieg Siiiony Map ee a. | ) Q. Right? A. Call if 0 — om sis. es et JA 936 Mannie a Hansen, een for Commission—Cross Q. Also the service stations. are not all too well capi- talized, so they don’t carry a complete stock? ies Mr. Boyd: Object to: that. 3 Hearing: Examiner. Kolb: Objection overruled. py Mr. Barton: s ciainerear A. Call it a hand to x | . = aie ee : : ‘aor MANNIE O. HANSEN was thereupon recalled as a witness, and, having been provionsly duly sworn, tes- tified further as follows: ‘ Ores examination by Mr. Royall: Q. Mr. Hansen, you agree that there are a good many wholesalers around this territory, are there not? A. That’s right, sir. . ' Q. And no one knows that better than another whole- ~ galer. A. You are right, sir. Q. Competition -between them i 18 pretty: loin, ont it? 7 A. Very keen. : Q. You find, do you ‘aot, that in a great many stations, . er including those that you: testified about; that in gddition — to these stations buying from you they buy fr “other a ee ae A. That is correct. “Q. And im many instanegs you have observed their pullintte in the chillin, ave you nett’ A. Right. ca Q. Without going into great detail about it, I would "like to ask you about a few that we bave— A. All right,: sir. . (3598) .Q. (continuing) —from. general. information $2 from the other witnesses previously heard i in this hearing. cee . . er ; cue j JA 987 Mannie O. Hansen, Recalled, fot Commission—Cross You know the Art’s Texaco station, I believe you testi- . fied about that. A. Yes, sir, I testified about Art’s Texaco. Q. I believe. they, sell Siberling tires. A. Art’s Texaco? , Q. Yes. A. They had Siberling tires atone time, yes. “@ They buy from Sidles do they not? A. I would pre- sume so. Handling Siberling tires I would, imagine that i is “where they got them from. i Q. Also, they. handle Delco, do they not? A. Alter that. * | ' qThey used to buy Deleo. ‘Q. You have seen Delco in there? A. Yee, sir, I have , seen. Delco i in there. -. ‘ Q. Mr. Ekberg, is he the one ini is ietak to the Fire- stone zone manager? A. I wouldn’t know that, sir. “ Q. You wouldn’t know that? A. No. Q. No, I believe he is an ex-Firestone manager, ‘ign "t het A..I believe that was it. He used to have a Firestone store out in Benson. That is where I first ‘got acquainted. . with him. ; . * * cs (3600) Q. I believe you ‘covered a witness named Ted Carroll, did you not? A. Ted Carroll, of Valley. Q. Am T correst that he is in bed financial scireum- ‘stances? A. Hei is not in the best financial circumstances. (3601) @. You do know, do: you not, that’ Pearson buys from Sidles do you not? A. I would assume. that he’ would, yes. I know they call on thé account. I am just as- suming that Pearson ered does buy mauler from - idles. ee oe Cross-examination by Mri Barton: ee gee 8 . ¥ “aa . JA 938 - = . Ad Mannie 0. Hansen, Recalled, for Commission—Redirect (3602) Q.I didn’t have. it in my notes. You also-call . ‘on Arlington Oil? ‘A. Yes, sir. QI rapt you said you didn’t sell tires theret sA& 0, sir. , & Have - you ¢ ever tried? A. Yes, sir. Q. What reason, if any, was given to you? =" wanted to stay with a national advertised line. . Q. And yo line is what? A. Century. : Q. That is not a nationally advértised line. A. It is manufactured by. Mansfield Tire and Rubber Company. — . Q. But it.isn’t nationally advertised in the samé sense - as Firestone or Goodrich? A. Not in as aside a a no. : . @ ° ; Redirect examination by Mr. Boyd: . Q. Mr. Hansen, I believe the questions were ides you about: Art’s ‘Texaco-on cross-examination, and you said that at one time they had Siberling tires. A. That’s right. , (3608) “Q. When was that? Do you Tecall? A. Well, it has been this year. I would say along about August, . September, or Deeber, Somewhere epi there. _ Maybe earlier. I don’t know. -* ‘Q. 19567 A. 1956. , a ! Q. They don’t have any any more? A. Not to’ my knowl- edge. They might have some that I don’t know about. . Q: How about Deleo batteries? You said they also used to have them. A. That’s right; - Q. They ‘don’t’ have them anymore? §.. Wek te-y knowedide : g. When did they have them that you know about! A. sed & tah bab samen Doe Loe or so ago. In fact I — used to sel him some gems Delo aetteries ‘about one or two clean JA 959 | Ldwrence i. Taylor, Recalled, for: Commission—Cross Q. Why ‘did he stop buying Delco batteries? 4 * .@ *- 4 ‘A: I don + know ‘a he stopped ‘buying Deleo batteries. I have no specific proof sp I had better not say anything. ry: know about it, but I have no proof so I am not going: to tent ies you what the setup is. j/ @ «@ rae | By Mr. Boyd: Q. Did he carry Siberling ei ap ta 19561 Did le reg- a ularly carry them or did you just see them that one time? ° - A. Not normally as stock. He carried them, I believe, as a secondary tire. Primarily it is Firestone, but I think he catrpa Siberling asa aecond-line tire. fe s. *° = i’ Mr. ‘Royall: That i is all, sir. (Witness excused.) | -, LAWRENCE B. TAYLOR - was § thersupon senile: as | ‘a.witness, and, having been previously duly ‘ sworn, testified ‘further as follows: Cross examination by Ur. Ropells’” Q: Mr. Taylor, it is true of course, is it not, that these (3605) -various service stations are approached by nu- merous wholesalers, are they not? A. That’s right. Q. And those that you have testified about have bought from others besides yourself, have they not! A. That’s- ’ right. buy from ee don’t they? A. That ts very true. -_-- e. i AARSSS> CaS, eae se en caine denen co 7 ss JA. 940- Lawrence B. Taylor, Recalled, for: Commission—Cross : | -Q. ‘When they’ don’ t bie from one they always have to give them: some ‘good, ‘reason, don’t they? A. Well, there _ usually is a good reason. foe Q. They give them one anyhow, don’t theyt A. Yes. Q. They don’t want to ‘offend them _ they give them some. reason. A. That’s right. Q. Mr. Taylor, I want to ask you about several of hie _ specifically: If you don’t know, you just say so. A. I will. .Q. ¥ want you to tell me what you know about it. . Do you know what other wholesalers ‘Mr. Cress buys i from? We have no record at all. "A. I have never met one of my competitors there, so I can’t tell. I do hot— -(3606)° Q. Could you tell from the type of goods that ‘you see? A. You mean in his place of business? Q. Yes, sir. A.-The only thing that I- ‘Jo know is.that he buys from Prost. i have seen-all of: that type of merchan- .dise there... = Q. But he does buy from “7 too, doesn’t he? A. Not to my y knomdedae, eS a 7 c ® ® 2 @ specific purpose and has called and*we have delivered it. For stocking purposes, I have never sold him one. - ae : ak : me 3 » * eet —_ eee 3 x - * wot w Lawrence B. Taylor, Recalled, for Commission—Cross. | . | Q You sold bien Weed abit A. Not. to my knowl-- - ede ‘We hafl a bad snow storm awhile back and almost - _ eyéry ‘service station in: town bought chains from us be- ) cause we had them and some other accounts didn’t. . Q. Let me ask you something about Beaver. We. have | no record of that. He buys from: Anderson and Gidles, doesn’t het A. I would presume Re does. -I woyldn t say, for 8 : ; ~~, : 2 On tires. Q: What kind of batteries a he —. A., He hart- dles Grant batteries. . Q. Did you sell him any batteries? A. The only time.I sell him a battery is when he is caught and needs a battery for a particular automobile and he can callus and-we would deliver, or run down to the store and pick it up. . . Q. Hgehe ever given you a reason for not buying } your, . : “patter?éo? A. Yes, he has. He told’me that he bought Grant batteries during the war and Grant took care of him, so he © . felt obligated to them an@he would ey with them. as — - as possible. ihe si 7 . we be e e o : 2 By Mr. Royall: pl ook ee we . Q. Frank Cerny buys pee Sidelé, does & not? A. I _ Presume he does. > oe .° Q. Mr. Zaloudek, did : you at one timé operate a Texaco station? A. Yes. In 1948 I Opened a new station at 13th -and Deer Park. That was July 24. Q. How long were you in that station? A. Six years. : Q. When aid you say you opened. i in 19481 ‘What date? A. The 24th: of July. j -Q. When did you first negotiate for hint stationt (3612) A. That would have been in June. * Pe 2 Will you tell me what occurred in your negotiations? : I signed a corttract— | Mr. Royall: ‘Wait a minute, When did thie happen! . ‘ Mr. Dias: July; 1948, p Mr. Royall: Your Honor, that goes way back of _ the date of the specific occasions which 1 were set in ~ the pretrial hearing. _ . Mr. Dias: Let’s not argue. The man left the. ~ gtation in 1954. T am brifiging him up to date on it. | Mr. Royall: sath is all right. ‘You asked about 1948, | . | Mr, Dias: I oad when he started and he said oe . July 24, 1948. JA 943 | James S. Zaloudek, for. Commission—Direct By Mr. Dias: . = Q. What negotiations took place before ‘you sen for your station? Mr. Royall: Objection... Hearing Examiner Kolb: Overruled. A. In J une—that 1 is what you want? | : @ By Mr. Dias: ‘Q. Before you cn the lease. A. Before I digas the ., lease, how- did it‘come that I got to sign the aid Q. Yes. (3613) A: Okay.” “©. Mr“Royall:. Objection. ‘Hearing Examiner Kolb: Overruled. A. I worked for Super Service at the time at 18th and St. . Mary’s Avenue.- It was in the fall of the year when Fire-° -gtone first introduced. their i ice tire.. By Mr. Dias: _, -Q. I am talking en when’ you went to the ease office for the purpose of signing the-lease. Did you not? » That’s right. That was what I thought. . | ~ °Q. What did they tell yon at that time in connection with this prospective lease? nt « ‘Mr. Royall: Objection. Hearing. Examiner Kolb: Overruled. .. A. I went to the Texas pens and that was — right at their office. ; By Mr. Dias! + Fitiey; ey iis : a Which Texaco officials + were there? ee - 3 batteries and -aocessories$— JA 944 James S. Zaloudek, for Commission—Direct > : (3614) A. At the thee of signing the lease with Mr. Cole- - man, Mr. Sittler, Fred Opocensky. ~ , Q. Did they at that time _— the rate of rent? A. Yes. | . & , = , > a ".(3615) The Witness: That was right in the contract. | ; i ~ . # By Mr. Dias: Q. Did they’ also datas products te be carried in the station?” . : By Mr. Dias: Q. What was your answer to ‘the last’ question? A. They explained the contract, rent, and their product that I would handle. (3616) Q. Was there any conversation abouttires, a By Mr. Dias: j Q You may answer. A. They: told me that I had a pick of two tires, and that was a Firestone Tire and Rubber | | Company or the Goodrich Tire and Rubber Company. Q. Did that refer only to tires? A ‘That was to all TBA products. Q. And did you make a choice? A. I made a choice Firestone. ‘ F Mr. Royall: Objection. Same pare %y . Hearing Examiner Kolb: Objection overruled. i I made the choive of Firestone because I sold Firestone @ for a, Service. ——a JA 945 James 8. Zaloudek, for Commission—Direct By Mr. Dias: * Q. How did you arrange to bik your Firestone {BA imto your station? A. I was told there would be: am ting— (3617) Mr. Royall: Objection. | . Hearing Examiner Kolb: What is the reunil . of year objection? - Mr. Royall: On the same o grounde and also. be- cause it is hearsay. Hearing Examiner Kolb: What are the + same grounds? , Mr. Royall: I say that j is an additional wrosie Hearing Examiner Kolb: Let the reeord show that Mr. Royall has a continuing objection to each and every question asked and they are overruled. | Go ahead. | } Mr. Royall: On the grounds stated ? ! Hearing Examiner Kolb: On the icomah 80 far | stated they-are-overruled. 7 ————— a ae saranis | Mr. Royall: If there are any has grounds, I | will state them at the time. _— ’ Hearing Examiner Kolb: All at Go ahead. G They told me in a week or ten days they: would havea. - ‘meeting over at the Firestone place-and I would be there - -at 8:00 o —. I signed a contract. By Mr. Dias: Q. Can you tell me who told you that? A. That ‘was told to me by Mr. Sittler and Mr. Coleman. _ (3618) Q. Go ahead. A. Then it would have been probably ten days when I appeared at 20th and Harney, ; .Firestone Tire & Rubber Company. _ - | Q. What date was that, approximately? A.. That would have been probably the latter part of June. ry oo a i 3 %. James S. a for Commission—Direct Q. When did you open your. station? A. J uly 24, 1948. - Q. Did you meet with them at Firestone? A. Yes, sir, right i in the main office. . Q. What did you do at that timet . Did you order a - supply of TBA? A.1 signed a contract with them for - tires, Firestone tires and TBA that evening. - Q. When your station opened on July 24 were the tires, batteries, and accessories in your station or not? A. No. They were delivered by Firestone. ———__ Q. When? A. That would be. about a weil before I : opened... — rene A Q: Before you opened? A. Before I opened. I had to_. get everything. on the shelves and properly ‘placed. Q. Did you at any time carry any other tires, batteries, or accessories? A. I bought—it would have been the same Fall of 1948 (3619) when I ordered Peak, Zerex, and Prestone, that my customers insisted on that type of anti- — freeze. - Q. Did you. display them in-your station? A, I dis- played them in the window, all four products. “§ Q. Which were the four? A. That was PT, Peak, ‘Prestone,'and Zerex. And when Mr. Sittler saw all that \— in the window I had to take it out—he told me to get rid of it, but I didn’t. -I put it in the back rogm- I never did take it out of -the building.” But I couldn’t keep.it in the window. | Q. Do you have your pads with yout A. Yes, sir. —. May I see it? (The witness produced a document.) ° Q. Do you want this back? A. ‘Yes. Here is the . cancellation. Mr. Royall: May I. request‘ counsel, in these.con- | versations, do you desire to name the persons with i * whom he talked' . : 4 JA 947 James 8; Zaloudek, for Commission—Direct ‘ ager a "Mr. Dias: I have attempted to do that so far. I think you. have all the names to date. I would jike _to know them, too. Seat I would like to have this four-page document , marked for identification. . (3620) (The doctment referred to was marked . Commission’s Exhibit 154-A thru G for ee tion.) ‘By Mr. Dias: _ Q. Task you is this the lease that you executed withthe Texas compan ? A. That’gright. - wo Q. Includif® this document, marked 154-A1 Is-that all = part of it?. A. That’s Tight. ' re, ee Dias: “I offer the document in evidence; your Honor. I would like the record to show that the gentleman would like the return of the original. We would like to substitute a photostatic copy. _ Mr. Royall: We have no objection to that. - ‘Hearing Examiner Kolb: The document will be received in evidence as Commission’ Exhibit 154-A . . thru G@. A photostatic copy, may be substituted i in . lieu of the original. . (The document previously marked Commission 3 xhibit 154-A thru G for identification was repeived. i Sener.) ¢ By Mr. Dias: ser ae “ ' Q. During the year 1948 did you purchase any other items, tires, ‘batteries, or gecessories, other than. Peak, . Zerex, Prestone, and other than ‘the Firestone -brand?_ oneal (3621) . A. About the following year, when I had customers | + ¢alling for different types of filters and two une of oil, - . ve - Poa ‘ , Rte JA 948 . & James S. Zaloudek, for Commission—Direct I ordered, such as AC, Purolator, Wix, Hasting filters, Kendall oil, and Pennzoil, and that, too, I could not display and I had’to put. - in the back room and_ they told me I had to take it out.- /. Q.. Who told aoe A. Mr. Sittler and Opocensky. : _Q. Did you take it gut of the display room? A. I took | it out of the display room, put all the oil and filter cart- ’ - ridges inthe back room. Q. Thereafter did you place any more orders for Peak, _ Zerex, Prestone, or these other items you have mentioned? ‘A. In the /of the’: year, customers still kept asking for it, so l-orderéd it. Q. Did you also carry the comparable products. in the Firestone line? That is, did you-carry Firestone anti- - freeze?, A. No. The anti-freeze I carried, none from Fire- stone;‘it was al] Peak, from the Texas Company. | Q. Did you at any time mary other brands of tires or batteries? A. Yes. ) _Q. When did you do that? A. I ebed didn’t carry them, I bought them; I made a good price on some ‘Armstrong tires purchased from (3622) Remde Tire Soepeny: ; .* * @ Q. You started to tell us about the Armstrong tire - situation. A. Yes. I purchased in the neighborhood _ “ I -would say, about 48 to 52 tires. I made a good buy on . them through Mr. Remde. They. were delivered to the "station and I put them in the rack with the Firestones that I had and I was told to remove those, too, which I didn’t. ~ (3623) Q. Who told you to remove, them? _ A. Mr. - Sittler, Coleman, and meky. a, Did they tell you w you should remove them? A. They said ‘‘yon have a Firestone dontract and that is what TPR AER, ner Se. ee Se ene mye , . re JA 949 - ” Samii 8. ‘Zaloudek, for Commission—Direct Q. Were there: any other. similar instances with any other products in the. TBA line? A. In the. TBA line I had merchandise purchased from Sidles Company and Al’s Auto, Storz’ Supply. ‘That, too, I was fold to‘take off the ~ Shelves, that they didn’t want it there. But I\never did take that off the shelves. That remained right there. — Q. Did you continue to purchase from those suppliers? - . A. Yes, _ Q. And those same pr¢ducts? A. Same products, be- ‘ cause customers asked for. it. Q. Did your purchases over the years inerease with those: suppliers? A. Yes, sir. Q. You bought more and more of their products! A. ‘ I bought more and more and more. . ' Q. How about batteries A. Batteries, after I had a Firestones for I would say two'to two and a half years, I signed a contfact with Carl Anderson, George Hoffman, salesman, for Auto-Lite batteries... (3624) And that again ‘I had to take out, and I went back to Firestone batteries. ~ Q. Will you explain what you mean by ‘‘had to take out’’? Who told you to take them out? A. Sittler and ' Coleman didn’t want them im the building, that I had a contract to sell Firestone and. I had to sell Firestone Uat- ’ teries. . : Q. eas suam: ell aas iil ld oe le over the years that you were with them? Did it vary? A. Over- all. for the six years that I had been there I would say it was over 18,000 average.. Q. Is that per month? A. A month. - : 0. Se coe daak a ae Geena Teak aes sek A. ” We started off by pumping I would say close to that amount; * and picked up a little, and it stayed about right at that - peak, about 18,500.a month. Q. When did you leave, or, when was. your lease can- _ celled? , Was your lease cancelled? A. I was cancelled out "to leave the: premises July 24, 1954. , pW .0 tes Gy James 8. Zaloudek, for Commission—Direct . ea Q. Do you have a copy ofthe notiteaion of eanosl tion? A. Yes, ee Mr. Royall: tole Honor, from this, point on I , oe '.. ' do not desire to carry the continuing objection, but Rag will make (3625) objections specifically. — | (The witness produced a document.) Hi iitage . Mr. Dias: May I have these marked for identifi- Mr. Royall: That ie the fret item after 1952 that you asked him about? « | i‘ Mr. Dias: I believe his story was. ay as” he went along. — _” Mr. Royall: The last year he gave was , 1949, ae ‘Mr. Dias : We will go, back over it again.. . (The docament previously referred to was marked Commiseion’s Exhibit — and B for iden- ey : tification.) s fa > ° = cation? a 9 By Mr. Dias: - QI show you Commission’ ~ Exhibit for identification 9 155-A and B and ask you to tell us what fhet is. A. This is vise me, ‘pursuant to .the term of our lease with you dated May 18,-1948, covering service station site 13th and Deer Park, Omaha, Nebraske, Texas ‘Company cancels and termingtes said lease July 23,1954.” Q. What is the date of the letter? AL That i is Jaly 2, 1954. Q. ‘And Commission Exhibit 155-B for identification, is- j thie @ copy of the cancellation of your lease? A This also = - is a cancelation, yes,. sir, ‘q Q. Mr. Zaloudek, is this document, Ootimieaiiin’é Ex- ‘ hibit (3626) 156-A and B—rather, is Commission ‘Ex- ~ hibit 154-A thra G the lease that you operated under with - the Texas Company during your entire stay with the Texas ; - . : ‘ ° 2 . : . : ™ ‘ Py . . 4. ie ft RR: ae ‘ James 8. Zaloudek, for Commission—Direct ‘Company? ‘A. That’s right. t never received any ‘ia AI contraet but that there one. That is the only one I signed. - Q. And this Commission Exhibit 156-A and B is ie your: a ' notice of cancellation’ A. Yes. ; ; Mr. Dias: I would like to pe these ae ..) 155-A and B in the record, with the request for per- * migsion to have them photostated and return the originals to Mr. Zalbudek.- - Hearing Examiner Kolb: Is there objectiiint Mr. Royall: No, sir. Hearing Examiner Kolb: The «document will tie } I. j received i in evidence as Commission ‘Exhibit 155-A - _ and B, and photostats sey. be made and substituted “for the originale. bots gh (The document previously identified as Commis- - sion Exhibit 155-A and 155-B was received in evi- ° _ denee as Commission Exhibit, 155-A and 155- B.) By Mr. Dias: mS | : af Q. Mr. Zaloudek, let’s go back. Th 1948 you purchased © Peak, Zerex, and Prestonef ‘A. That’s ga ” ‘From whom— ns / , ‘ , sd (3627) Q. Will you answer the question? In the Fall of 1948 you parehased Poth, erex, and Prestonet ‘A. _ right. ; ‘ ‘ é ° P "sg -o '@ e ® ; v ’ 4 mes : ! (3629). ee apres in the Fall of 1948, did you not? A. Right. (3630) Q, From. whom did you-purchase that? ‘. Soe ee Aeon Clg, Aliso, id . &. , , \ — Zend, and Grtions JA 952 James 8. Zaloudek, for Commission—Direct 1 ~ ¢ Q When was the next time you saalihioanss other than Firestone tires, batteries, or accessories? A. I would say it would have been: in, the year ’51 when I ial the. Armstrong tires from Remde Tire Company. ae Q. During the years between 1948 and 1951, were you. - purchasing these same —. Zerex; Res Pres: tone? A. Yes. . Q. Were you purchasing anything rae in n the TBA line?: A. In the TBA— ._.-. Q. Other than the. FireStone brand. A. Yes. I was purchasing differént makes of filters and TBA products. Q, Were you on all those occasions chided dh the Texas Company? A. What? — Q: Were you told by the Texad Company not i. carry those products? A. When they saw them on ‘the shelves _ > they said-I wasn’t supposed to imve~them on the shelves. a It was. supposed to be: Firestone. . _ + Q. In 1952 what products did you bay, other than Fire- ‘teen (3631) tires, batteries, and accessories? A. If a _ customer would want Goodyear tires, Seiberling, or what- _ ever it might have been—U. S—I purchased them, left them in the office fntil the customer called for them or had - them put on. And that again, when there was any other tire ip our racks, or on the floor, they told me at the. time that they did not“want them in the building. And. that was Sittler, Coleman, and Opocensky, the ‘thiree representatives for the Texas’ Company. Q. Did .a similar occurrence . compe sheet during. 1953? Were you ‘pupthasing other tires, batteries, or accessories from wholesalers or distributors other than Firestone? A. . _ Areund: 53 T dealt exclusively, you might as well say; with Firestone, and the batteries. I went hack to their batteries. But I still carried, say, waxes and filters and so forth from differen companies. Our ctsbomens wanted them. _ Q. Why did you revert to-the Firestone linet A. Just . . —— ° JA 953 Pons .: a + 4 + ~ James S. Zaloudék, for Onnitesions Diroet | Mr. Royall: Your Hoar. we object and move to strike that, why ihe did it. »! Hearing "as, a Objection overruled. Motion, denied. 7 ‘By Mr. Dias: > ete : Q. a’ dhe ‘carly: part of: 1954. were you willl Garryitie (3632) _ Firestone TBA exclusively? A. There was— _ ~2 QQ. Or were you carrying some accessories? A, There was more Firestone and Texaco; I would say that: 92 per-— cent of it was Firestone and Texaco. Q: What constituted the other 8 percent? A. That would have been, say, chains, anti-freeze, filters, oil = ishes, wax. It didn’t amount to too much. y Q. Did you receive any notice prior to July 2 that your _. - lease was going to be cancelled?. A. I had an inkling that they we ‘going to cancel.me out. : 4 . Royall: Move to strike. . in, Examiner Kolb: Denied. _ A. Thad anfinkl I was going to be cancelled ok for ' this reason: ‘that one argument led to another about handling this merchandise since I was there, and as I say, I had an inkling they would: cancel me out i for .the — reason of not | being: — By Mr. Dien: , | ye | (3633) .By Mr. Dias: et orm, Q. Did anyone in the Geta Company tell you thas y your performance or your method of operation . was _ unsatis- factory? A. No, sir. | _ Q. The first notification you received was that letter ce dated July 2% A. smumacones : = ’ ad & a 7 | 7 _ : } . i ! j : 2 —S . / * . JA 954 James S. Zaloudek, for Commission—Direct — Q. sin were your gasoline sales at that timet A. ~ Right up to par, as high as I thought they would ever go for a neighborhood station. = e . . P 7 . 4 : - a Seer: JA 956 James S. Sdondth, Recalled, jor ConiailintiinisPrées carried in your store TBA of brands other than Firestone? , . A. That is correct. — Q. I think you further testified that immediately before the termination of your lease in July, when you got the | first notice, 1954, that you had got to the point where you were selling 92 percent of your TBA in the Firestone * brands? Is that right? A. Right oe Q. And that was an increased percent” over “what ‘you: been selling at some other times? A. Yes. Q. What do you say was the lowest period of Pieces, ' that is lower than 92 percent, what was the lowest percent of Firestone you sold in 1952 and 1953 and 1954 up to (3638). July? A. That is carrying the other product, too?. Q. You said 92 percent.of your products were Firestone and you said it had been lower than that. How low did it get at one time? Did it get to 60 percent Firestone? A. I would say 60 percent. - ° Q. And about when was that? In 19529 A. That would be starting about 1952, — _- . ,Q. Then you moved up the percentage until finally “i in July it was 92 percent. . Is that right? A. Thatis right. Q. Do you recall a transaction in either 1952 or ’53.in- - volving some credit card purchases by a man named Saab? - A, Yes, sir. I Had to pay that back to Firestone Tire and _ Rubber Company by check. ce Ci Q. When did you pay that? . eM iis no date tiers, | but that was after termination. It was. — 63. These credit cards, photostate— 5° Mr. Royall: Your Honor, I don’t want him: to do any more than answer my questions unless it is an _ explanation. I an —. this question; a a question: ; > JA 97 _ James 8. Zaloudek, Recalled, for. Commission—Cross : By Mr. Royali: | apes ik 5x Q. When did you pay. it? You'said it: was after the _. bs cancellation? A. After the cancellation in. —. (3639) Q. ‘Phis® matter first came up—first’ came to your attention—this matter of these credit cards, credit sales, did it not, in August or September 1953? I am not trying to mislead you and I would be glad to give you something that would probably refresh your recollection if you need it. A. I have some dates here that might give “me an idea. I ean check the dates. on these photostatic copies. Mr. Royall: I am dtadiing this, ceniliaantat from the- file. I hate to detach it because it comes from _ the company. . The Witness: It séems as Sines it all happened "fp the eighth month, 1956. ' By Mr. Royall: Q August 19537 A. From 1953 to— ~ Q. It was all in 1953, wasn’t.it? A. 1953, yes. Q. Have you got mane of those credit cards¥ * A. Yes, — . Q. You brought ne me here, did yout A.” Yes, _ -Q. Were you asked to bring them up by government counsel? .A. If what? Q. Did these gentlemen, the. attorneys for the govern- ment, ask you to bring those up here? (3640) A. I told them that I had them, that I was going to bring them: | Q. When did you tell them that! A. That was last night. «..~ 7: Q. How did “tt happen that you told them you were go- — ing to bring them? “A. Te wanted to know why. IT was cancelled out. JA 958 James S. Zaloudek, Recalled, for Commissiok—Cross he Q. Let me see those a minute, _— A. I told them it was cid due to— ' Mr. Dias: There is no » question pending,’ your Honor. I object to ned aaa By M r. Royall: Q. You told them what? A. Go ial: look at them. ~ Q. You told them it was probably due to what? A.I told them I would bring those here. ~— ~ - QQ What did you say a moment ago it was spewed due fo what? A. This case here. | : Q. These cards? A. No. It could have been that they | cancelled me out either for this here, or that I didn’t co- operate. That is why I brought them with me. | Q. This matter was called-to your attention in Septém- ber 1953, shortly after these cards were issued? (3641) A. That is right. . . Q. It is 3 a fact, ‘Gsn’t it, E Mr. Zaloudek, that these cards, these credit cards were issned in part for tires that were not put on any car at your station? A. That is right. | Q. It is also true, is it not, that there are cards in here of exactly similar amounts for different sized tires? A. Right. — ' Q. It is also true, is it not, that abs items, all items in addition to gasoline in the first three of these cards, are an even $157 A. That is right. That is what the tires amounted to; marked ‘‘Miscellaneous.’’ © : Q. Isn’t this $15 for tires? A. That is the size it should be, 6.40 by (15. 7 - Q. What is that? Id that for a tiret A. I would say: - yes. Q. And yet you put on that ‘Miscellaneous’, didn’t yout A. Yes, sir. al Was this other one for a. . tire? A That is right. JA 959 — James -8. Zaloudek, Reoélled, for Cnciseitialtinis- Gauss } Q. And you put on that ‘Miscellaneous’? A. Yes, sir Q. I show you a fourth one—differing in the order in - which they come—for $15. And that is.$15 and that i is for (3642) a tire? A. It is-marked ‘‘tire.’’ Q. And here is one for $20 for a tire, isn’t it? A. 7. 60 by 15 deluxe tire. Q. What are these items on the next to the ast one ' A. It says ‘labor?’ which could. have been possibly a ~ wash job. : : Q. Are any of those miscellaneous for tirest That is _ what I am trying to find. out? A. One would be a. grease job. I can’t make out. what the bottom one is. | Q. There are no tires or miscellaneous on that? A. No. Q. Here is another one, $10 for miscellaneous. Is that right? A. That could:-have been grease, oil and filter. Q. But you put it down as miscellaneous? A. We mark many a credit card that way, rather than write them out. Still-do it to this day. js Q. For some of these items you gave Mr. Saab cash, didn’t you? A. No,sir. — . ! ' Q, All of these tire Reni—cns, tues dives; four, and five—were in a period from August 15 to August 26, - weren’t they? A. That is right. Four for his Studebaker - and-one for-his (3643) Buick. ; Mr. Dias: What year? Mr. Royall: 1953. By Mr. Royall: * Q. You were questioned about these lta weren’t you? A. That is right. . Q. I will ask you if you didn’t state ‘at that time, under oath, that all the tires were mounted at the time they were ~ sold? A. No, we didn’t swear. under oath that the tires were mounted. We swore under oath, brought down by the . s ~~ JA 960 James S. Zaloudek, Recalled, for Commignios—Orocs- ‘Texas Company, that we did not give cash. That was brought down.by Mr. Burgess. Q: You were familiar with the regulations on credit cards.. You have been dealing with taem for sometime. Weren’t you? A. That is.right. I was in the wrong there, putting miscellaneous down, or patting: down tires not mounted. (3644) Q. I will give you eins back, ‘sir. Thege matters were the occasion of a considerable amount of controversy. between you and the Texas Com- pany, we ren’t they?’ A. That’s right. Q. And\that gontroversy lasted continuously from Sep- tember, 1953, up to-and through the time of the cancellation notice, didn’t it? A. That’s right.. Q. And the company demanded payment fi rom you on the theory that these cards had been properly issued for improper purposes,.didn’t it? A. That’ s right.’ Q. And you employed a lawyer i in the matter, did you not? A. That’s right.. | Q. And your lawyer had a considerable amount of con- troversy with the company? A. He still has it on record. " It is not finished yet: , Q. And they demanded that because of ‘thobe circum- . stances that you repay the money? A. Did I pay. it? Q. The company demanded that you pay the money ‘back to them? A. Texas wr sc: demanded me to pay the money. _ Q.’ And you finally did pay it Soak to is. you say? A. That’s right. Only—otherwise I wouldn’t— .Q. Have you gotten-any information about the check? ' You (3645) said you had it paid by check. Do you know - -_. the date of it? A. If we ‘have to, I could get that from the bank. Q. Sirt A. IfT have to get the sinibiiliel elieck: 1 could: . eet that. : Ge Shs fat oe. | a | -.* a ‘JA 961 James S. Zaloudek, Recalled, , for Comentocion-Orete Q. ‘There is no doubt about the fact thai you paid it, is there? A. Yes, it was paid, $127 and some cents. Otherwise they Wouldn’t make a settlement with me on ~ what they owed me until this was paid. _Q. And you know do. you that this same map, Saab, during that time or that. same period went to a number . . of other Texaco‘ stations and did the same thing during the same time, don’t you? ~A. I was told that. Tr don't know it. Q. And- you know that the other stations paid the amounts ‘back without any ‘hesitation? A. I don’t know. anything about that. All I know is that his credit card _ was current, which I thought if a credit card is current that I should have. whatev - was issued on those cards. Q. That matter Ww in writing, wasn’t it, your credit card? A. That’s right. . Q. I ask you if it isn’t a fact that when they first went ‘ down to see you about this matter—-or later went down .. ‘to see you, some few months before the cancellation—if you did not (3646) tell them ‘that they would find: job tickets in your records that would support these vouchers? A. I didn’t get that. Say that again.” ~ Q. Did you tell them that you had job tickets that , would. support these credit. cards? A. I did af that time, and then when we looked for them most were destroyed. When I got quite 4 number of them we just burned them up. Q. After you burned them’ up didn’t they go down. there a second time. and find that some had suddenly ap- peared in ‘your records, but their numbers didn’t corre- >> spond: with the consecutive job sheet back that you, had? -A. That’s right. I made those out myself to satisfy— Q. You made those out yourself ané put them in there between the time they first came and when they came backt A. That is what they wanted. 3 eu JA 962 ; James 8. Zaleudek, Recalled, for: Commissign—Cross ; * Q. They were not numbered i in the regular sobs were. they? A. Naturally they wouldn’t be if the others -were _ burned. | Each job ticket had its own number. Q. When did. they: first come to see you about this ‘matter? Early in September? A. It could have been the : + latter part of September or October. ~ Q. The latter part of September? A. Or October. Mr. Dias: vagus com ~ (3647) By Mr: Royall: . Q. That was just about three weeks, not more than, four weeks after these credit cards and job tickets had been paid out. Is that right? A. ‘That’s right. I made them — out for them, to show, them what we did. ' Q. I mean they first came to you.within three weeks after the last one of these credit cards was originally made out didn’t they? A. That’s right. Q. And you say in that interim of three weeks that the’ job tickets had been burned? A. Right. bes Q. I will ask you if they weren’t in your job tickets, _ unburned at the time they went. there, consecutive job - tickets in -your little book, right along with no vacancies, which covered this period from August 15. to the 26th? A, If they were around there I wouldn’t know where they ‘would be. Q. Weren’t they i in your book there, that you had, down one, two, three, four, whatever the numbers were; weren’t all the job ticketsthere when they first went to see you _ about it, every number filled, over this period from August * 15 to the 26th, but no ticket about these jobs? Isn’t that ‘right? A. Natarally we wouldn’t make. a ticket out for tires. We °(3648) only made job tickets out for grease, ” ’ gil, filters arid wash. Why would we make out tickets for tires and os or gasoline? ‘:" JA 963 James 8. Zaloudek, Recalled, for Cotmmission—Cross -Q. Didn’t you say a few minutes ago that you . made tickets out for, these items! they.*had been destroyed?’ A. That was taken right off ofthese pho a static copies, just the way T made it for them. Just the. way they brought them to me. vo ae a Q. Have you got any job tickets with yout A. No, éir.. They are all destroyed. ‘y Nes fogs tlie i, Q. I mean do you have any in any other matter? You haven’t got any other job tickets, the form you use, have yout A. Oh, no, no. As I left the company three fears A ago I wouldn’t need them. | | Py ' .Q, Not these, but others. You have begny using job . tickets all along haven’t you? A. Where 14am at now or there? pee pro tears | ihe Q. There? A. There, yes. For grease, oil, filters and so. forth’ Where we would sell tires and gasoline we wouldn’t make a job'ticket. © ia ‘a - Q. You knew at the tinse of this transaction with Saab that it was not the right thing to do to issue credit cards Q. And you knew it was not the right thing to issue credit (3649) cards for the sale of merchandise when them and get the cash. You knew that, didn’t you? A. That’s right. They had to be mounted. Tires and batteries had to be put on the vehicle. tere ar | | ' _,Q. But you are not permitted to issue 4 credit card. ‘directly or indirectly for cash given @ man, are yout A:. We don’t do that. Cait ft ae Q. You were not authorized to do that, were yout A. No, sir. It states right on the back of the-card, no cash a to be given on any of the credit cards.. That pertains to arly company. , | Q. Were some of these credit cards. issued for used batteries? A. No, sir. : ‘TA 908 cease . . James 2 Zaleudek, Recalled, for Commission—Cross é. Q. Tene are quite sure about that? A. Yes, sir. Q. And’ none of ‘these $15.00 items except those that - describe tires ‘were -itemized, were sas Sol A. No, . Marked ‘‘mis¢ellaneous. ” Q. And you knew ‘that you were supposed to itemize _ fates A. That’s right. Q. ‘You said a minute ago t that tires were not append to be carried on the job sheets? A. No. Q. What was to be carried on the-credit slips. Did you put (3650) tires ‘on there; weren’t you — to -~put tires on here?’ A. Yes. -Q And you didn’t. doit in two or three sanincieneet A. : Rens of those miscellaneous, ‘which could be grease, oil, gee Pt 2 ee ee Q. You said you sold hith five. ‘tire? . That’s right. . Q. And you put only two of them under’ the name of .“tires,’? didn’t you? .A. I think—* ~ Q. Three of them? A. Three of them. One 7. 60 by 15, two 6.40 by 15. The other two marked ‘‘miscellaneous’’ were ‘also 6.40 by 15, Because at the time we could make. . _ .them that cheap, and the tire was obsolete as far as any automobile. was concerned, Firestone. ‘made ‘a give-a-way . special of $5.00 apiece on the tires. We could sell them for—: Q. Wait a second. A. Furthermore, another thing— -Q. Wait a minute. Iam not asking you any — | A. That’s all right, I can talk. Q. Wait a minute. . ASI can talk. | aia Q. I will ask you furthermore if one-of the job tickets | '. that they found when they went back the second time was ‘dated (3651) - September. 15, and if Fou’ ‘didn’t later ad- mit the. transaction was recor 15% | A: “What was on the - aheet ? Q. Sir? A. What was on, that sheet? a + TA 965 ticket that you just pore about a minute ago—. ) a ¢ '@ y e % . ge) Q. That last date you mentionéd, “ieetceaae rather than Argust—where did that come from? N\ Mr. Dias: Do you have something on that? - Mr. Royall: Those are in the records. We just _ had to pick up what we could. We haven’t wi the job tickets. He has them. " M r. Dias: . a. Do you have the job tickets? A. No, I don’t have - BO > job ticket. I was asked by Mr. Burgess to make out job tickets pertaining to these here credit cards marked ‘miscellaneous, which I did. eas JA 967 | Jeues 8. Zaloudek, Recalled, for Commission—Redirect ? Q. What are you referring to by ‘‘job tickets’’? What is @ job ticket? -A. It is a work _ an original and i duplicate. _ ati Q. Is that the big yellow sheet? A. It is a regular - sheet, put out by the Texas Company.: Q. How do you usually date those? Do you write out ‘‘September”’ or ‘‘October’’ or ‘*‘August’’ or do you use “9 numerals? A.» There are numbers onthe job tickets. oe _ (3655) Q. I am not talking of that. I mean when you — fill in the date? “A. When we fill in the date?. _ +Q. Do you write out each month, September, October, ‘ or November, er do you use the full designation of the months? A. When the customer comes in, John, Doe, if he wants a grease job we put it down, wash, oil, ‘grease, . wheel bearings. The date isn’t neces [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386413_0015%3A02. Public record. Not legal advice.