deplete the possibility for the runs following. In the large new theater I am talking about they feature a low admission price. This theater is in direct competition to the Uptown Theater. Then if we want the pictures on 30 days, we are asked to charge an admission price higher than their featured low price downtown.

Mr. STEVENSON. In other words, they fix the price of the admission? Mr. BUSCH. Actually on contracts; no.

Mr. STEVENSON. Virtually and practically speaking, yes?

Mr. BUSCH. Yes.

Mr. BALLINGER. Isn't it supposed to be that the Uptown Theater has a less price than the downtown theater?

Mr. BUSCH. Yes.

Mr. BALLINGER. What has been the price?

Mr. BUSCH. The downtown price is 65 cents top. Our admission price is 50 cents top. Special runs are 50 cents.

Mr. BALLINGER. I thought you just testified that they compelled you to charge higher uptown than downtown?

Mr. Buscи. They require us if we get the picture-we trade with them on a number of pictures and we found out that the town will not stand an admission price of 60 cents second run; so we have to follow all the others that will offer them a 60-cent admission price. It means they are setting the price, but not by contract. It is verbally; it is by agreement.

Mr. BALLINGER. What would you do about this matter? How would you get clearance straightened out in order that it will work satisfactorily for the first run, second run, third run, and fourth run?

Mr. BUSCH. The best condition that we enjoyed in this city was when we had a clear run on pictures, when we played the pictures second run. We knew we were going to get them on that run, we knew what to do about advertising; but to straighten out the situation, that is a complex problem. We have to make it free enterprise. Mr. STEVENSON. Have you any advice to give us?

Mr. BUSCH. Make it free and open so that there is no discrimination toward the chains or the larger theaters' buying power over the independent. Give them equal opportunity to buy the picture and run them.

Mr. BALLINGER. Do you feel the fact that the large Hollywood producers own a great many theaters in this country is one of the reasons why there has been this discrimination?

Mr. BUSCH. I think that is actually right.

Mr. BALLINGER. Would you favor divorcing distribution from production in the motion-picture industry?

Mr. BUSCH. Yes; because the greatest offender in this city has been Paramount, who owns an interest in Affiliated Theatres here. They gave us pictures as late as 180 days. It has always been hard to buy their pictures because they want to serve them in all their theaters before they allow an independent to have them.

Mr. BALLINGER. They are bound to have an advantage on distribution as long as they control a great many important theaters? Mr. BUSCH. Buying and selling both; yes, sir.

Mr. BALLINGER. That is all.

(Witnesses excused.)

TESTIMONY OF L. J. FREDRICKSON ON BEHALF OF L. J.
FREDRICKSON TIRE CO.

(The witness was duly sworn.)

Mr. BALLINGER. Give your full name for the record.

Mr. FREDRICKSON. L. J. Fredrickson.

Mr. BALLINGER. What is your business?

Mr. FREDRICKSON. Tire business.

Mr. BALLINGER. What is the name of the company?
Mr. FREDRICKSON. L. J. Fredrickson Tire Co.

Mr. BALLINGER. Where?

Mr. FREDRICKSON. 422 North Hudson.

Mr. BALLINGER. Proceed and make your complaint to the committee. Mr. FREDRICKSON. Well, I have been selling Goodyear tires. That is, I sold them during the war. When I could sell all the tires I could get, they would not give me any tires. In other words, I was getting about 30 tires a month; not enough to pay operating expenses. Then when tires got plentiful, I put on a selling campaign, selling tires at less than their suggested price list. I had been advertising Goodyear throughout all that time. Then they canceled my contract. In other words, they refused to sell me.

Mr. BALLINGER. That was Goodyear?

Mr. FREDRICKSON. Goodyear.

Mr. BALLINGER. Whom do you do business with now?

Mr. FREDRICKSON. I took on the Dayton tires. I tried to get Firestone. They said they were not interested. I went down to see the Goodrich manager here. He says, "I realize you will sell a lot of tires."

He wanted the business, but he said he would have to take that up with the Akron office. The outcome was, he said, “Well, I cannot sell you." He did not say that they could not sell us, but they would not give me a dealer's discount.

Mr. BALLINGER. He thought you were on the blacklist; is that right? Mr. FREDRICKSON. That's right, due to the fact I was selling these tires that would be profitable to me.

Mr. BALLINGER. Giving the consumer a break?

Mr. FREDRICKSON. Giving the consumer a break. I think it was probably due to my selling those tires lower that they finally came down with their price.

Mr. BALLINGER. Are tires fair-traded?

Mr. FREDRICKSON. No.

Mr. BALLINGER. They are not?

Mr. FREDRICKSON. No; they are not.

Mr. BALLINGER. Is it your experience with the tire companies you have had experience with that they try to control the retail price of the tire?

Mr. FREDRICKSON. That all depends. If they run into competition in their own stores, they might, like the set-up I have. I have a low overhead. I can sell tires and make money providing I can get the volume. I can sell them to the consumer at less money than their own stores can if they charged their part of the overhead. That is what I heard.

Mr. BALLINGER. In other words, they do not want you to compete with their stores?

Mr. FREDRICKSON. They do not want me to compete with their stores. They said, "We do not care what you sell them for, but we do not want you to advertise them."

In other words, I put the price on what I was selling the tire for. I said, "How ridiculous. How could I expect any volume if I just simply take this low price on the ones that come in."

The only way I can get volume is to advertise that fact.

Mr. BALLINGER. How long were you getting them from Goodyear? Mr. FREDRICKSON. Here is a letter dated June 28, 1947. Would you care for me to read the letter?

Mr. BALLINGER. Read it.

Mr. FREDRICKSON. This is addressed to L. J. Fredrickson, 422 North Hudson.

DEAR MR. FREDRICKSON: In line with the last clause in our service station agreement, we are hereby giving 30 days' notice of written cancellation.

We want to express our sincere appreciation for the business you have given us in the past and wish you every success for the future.

R. ROBERT MILLER, District Manager.

I would also like to read a letter from a former manager, dated December 18, 1945:

L. J. FREDRICKSON.

L. J. Fredrickson Tire Co., Oklahoma City, Okla.

DEAR L. J.: The first purpose of this letter is to enable me to wish you and yours the merriest of Christmases and a very happy and prosperous 1946.

Mr. STEVENSON. Was that from Goodyear, too?

Mr. FREDRICKSON. Yes; this is from the former manager of the same company. [Reading:]

This is the first postwar Christmas and

Although the full year's figures are not on the books now, it looks like your 1945 purchases will run about $10,500. That is a mighty nice volume of business, and I want you to know that we appreciate it, even though we realize it could have been larger if we had been able to give you more tires.

Here is hoping 1946 will be even better; but regardless of what it brings, we will be in there pitching for you and with you.

Mr. STEVENSON. They pitched you right out of the picture?

Mr. FREDRICKSON. Yes.

Mr. STEVENSON. It was a merry Christmas, anyway.

Mr. FREDRICKSON. Yes.

Mr. BALLINGER. No further questions.

Mr. STEVENSON. You were not selling those tires below cost, were you?

Mr. FREDRICKSON. No; I could not do that. I made about $1.50 per tire.

Mr. STEVENSON. You have a low overhead?

Mr. FREDRICKSON. Well, I have practically no rent; just myself and my brother. In other words, we could make plenty of money with the volume we could get. I am selling now on practically the same basis. I have had to increase the difference between my selling cost and my buying costs because I have to pay more for tires now.

Mr. STEVENSON. In other words, there is no possibility of giving the customer a break in selling him something at a low cost, even if you want to do it?

Mr. FREDRICKSOx. That is right. That is absolutely right, as long as they can cut you off at any time they want to.

The point I want to make is this: During the war I could have gone out and got other makes of tires when I could sell all the tires I could get; but my idea was staying with the one tire and just saying, “Well, now, this is the tire I believe in." Then I would have a nice business here. That is the only thing I was working for, to see how it worked out.

Mr. STEVENSON. You were loyal to them?

Mr. FREDRICKSON. Yes.

Mr. STEVENSON. In other words, you were thinking about that "merry Christmas, happy New Year" pitch that you received, too? Mr. FREDRICKSON. Yes.

Mr. STEVENSON. We thank you. (Witness excused.)

TESTIMONY OF 0. G. COXE

(The witness was duly sworn.)

Mr. BALLINGER. Give your full name for the record.

Mr. CoXE. O. G. Coxe.

Mr. BALLINGER. What does the "O" stand for?

Mr. CoxE. Orville.

Mr. BALLINGER. What is your business?

Mr. CoxE. City salesman for the Sharp Auto Supply Co.
Mr. BALLINGER. Of Oklahoma City?

Mr. CoxE. Yes.

Mr. BALLINGER. Located where?

Mr. CoxE. At 121 Northwest Eighth Street.

Mr. BALLINGER. You have a complaint that you wish to make to the committee?

Mr. CoxE. My complaint to the committee is the restriction of sales of different lines of merchandise to our oil-company outlets; in other words, at service stations.

Mr. BALLINGER. Service stations.

Mr. CoxE. Yes.

Mr. BALLINGER. Proceed.

Mr. CoXE. There are a number of lines that are in our line and we are unable to sell to the service-station operators due to the fact that they are having to handle competitive lines that they are forced to buy, they say, from the oil companies whom they do business with; in other words, the companies they have the lease from, their lines they say they are forced to buy from them and cannot buy our competitive line. Mr. STEVENSON. What oil companies do they lease from?

Mr. CoxE. I would name the Texas Co., Midcontinent Petroleum Co., Magnolia Petroleum Co., and Phillips Petroleum Co.

Mr. STEVENSON. In other words, the dealers who represent those companies and have contracts as dealers of those companies cannot handle any competitor's line of automotive parts?

Mr. CoxE. That is the idea.

Mr. STEVENSON. Proceed.

Mr. CoXE. That is my complaint.

Mr. STEVENSON. That is your story?

Mr. CoXE. Yes.

Mr. BALLINGER. Do you call upon the filling stations' personnel?

Mr. CoXE. Yes.

Mr. BALLINGER. If you can give us a fairly exact figure by how many stations have you been told this story?

Mr. Coxe. How many stations I have been told this story by?

Mr. BALLINGER. When you called on them, how many times have you heard this story, say in the last month or two months?

Mr. Coxe. I would say 20 to 25 times in the last 2 months.
Mr. BALLINGER. By 25 different service stations?

Mr. CoXE. Yes, sir.

Mr. BALLINGER. Here in Oklahoma City?

Mr. CoXE. Yes.

Mr. BALLINGER. They have all told you the same story?

Mr. CoXE. Yes, sir.

Mr. STEVENSON. There is not anything in the contract with these comapnies that says they cannot sell competitor's goods, is there?

Mr. CoXE. I have never seen their contract. I do not know. I know they do not buy my merchandise, whichever is competitive to mine, they say they are forced to buy, due to the fact they have to buy merchandise from the oil companies.

Chairman STEVENSON. Do they say who forced them and what was said about that or why they take that attitude?

Mr. COXE. They say they cannot.

Mr. STEVENSON. All right. We thank you. (Witness excused.)

TESTIMONY OF EDDIE FIGHTMASTER, ON BEHALF OF OKLAHOMA CITY HARDWARE CO.

(The witness was duly sworn.)

Mr. BALLINGER. Give your full name for the record.

Mr. FIGHTMASTER. Eddie Fightmaster.

Mr. BALLINGER. What is your business?

Mr. FIGHTMASTER. Salesman for the automotive division, Oklahoma 'City Hardware Co.

Mr. BALLINGER. Do you have a complaint to make?

Mr. FIGHTMASTER. Yes, sir.

Mr. BALLINGER. You may proceed.

Mr. FIGHTMASTER. The line of merchandise that my company handles consists of nationally advertised brands, like Autolite batteries, fan belts, du Pont chemicals, and so forth. I get most of my business from calling on service stations. During the war when there was a shortage of almost every item, we worked up a pretty nice business. with some of these stations by dividing my allocated batteries and things, helping the boys out. As soon as things are plentiful the Texas Co. and the Midcontinent Co. through their representatives that control their leases have told the boys, "You have to buy Firestone merchandise."

Nothing competitive with them will go.

Mr. BALLINGER. The filling-station proprietors have told you that?
Mr. FIGHTMASTER. The lessees told me that.

Mr. BALLINGER. They have to buy Firestone products?
Mr. FIGHTMASTER. They got to buy Firestone products.

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