Document text
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Trade
Name Model -
Norman Ford
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5Lyman
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Weaver
F has never received any orders for Lritle scopes- r e-cuttin retailers_identified on
I.
5i~.."w.i;'°h TeEa!<i to purchase of rifle scopes from manu;-,-»;_*u T t " h t th Lyman and the Norman Ford menu-"*
riidiadquntéis based on the manu actarer's list price.. 3e_stated~"¬ 0
-Fm"-;=<
l BEST COPY
- Retai1: Date of
Price Price List
$22128Power
ll-1~5H
ll-15B2.5
4.00 p
$b5.50
39.50
$37.50
u5.oo2
-
3-1-5
3-1-5n
rom .e so called p ic g
page three of the Attorney General}: memo to the Director
dated June 19, l955.
He_stated that he has never had-any
and at the present time he services ,1
;giIwaukee area and occasionally has a retailer»tnup-state
Wisconsin. He stated that he has approximately twenty to
twentyfive retail accounts. Me ha§'no knowledge that_the_ -
retailers whom he servicea"sell rifle'scopes other than_at - >;k,the fixed retail prices, which are fair.traded, and whichigi .%
prices are fixed by the scope manufacturers. He.stated that '"'3
if the retailer-wishes to sell-the rifle scopes for less than f
r ade rice it does not concern him, and " thelfai tr P . _* "" ' ' ,1
meansithat the retailer is making a smaller profit. J
stated that he has never refused to sell rifle scopes o
any retailer, whether or not this retailer abides by.the
fair trades pride or whether he uses cut price methods. He
stated that he has never been told directly or indirectly
by anyone_to sell rifle scopes to certain exclusive retailers.trouble with retaile
primarily metro/-
,ac urers, e.B a e a e .-4
f facturers are not governed by the fair trade_laws, but that .the Weaver scopes are " the state fair trade agree '
o es all three f-fments. with regard t sal_e's'-of ac" p 5 _ ' 9,
J ' es ed manufacturer's "*;bragds and QL1'$hT¬¬ compan s" end a sngg t _
-2price.11st with their merchandise,_and_the manufacturer
"Iconveys this-knowledge ofiisqsdggésted resale.price to the_:?§b§gr@by sending alon "" '"ts khan merchandise is
@¢¢ordered<by the Jobber. stated that the Jobbers' .;
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that the suggested manufacturer's price list is notbinding on him at all, and that he is free to make his
own price to the retailer if he is willing to take a cut
in profit.
stated that no agreement exists between himself
and the manufacturers. He stated that his position isthat of a Jobber, and that he places an order for rifle
scopes at his pleasure and that no restrictions are* ~ n him as to whom he is to sell these rifle scope
stated that to his knowledge the manufacturers"
mmunicate with retailers, and retailers obtainthe resale prices and suggested lists from the Jobbers.He stated that to his knowledge manufacturing firms donot attempt to police retailers prices. "He stated thatshould any information reach him that certain retailersto whom he sells are selling rifle scopes at cut-rateprices, he would do nothing -about these methods.
Estated that the manufacturers for whom he is the -pg ;~as .ori:'.cd jobber have never given him any warnings that it or its customers were selling below the manufacturer
suggested list price; he has never corresponded withmanufacturers regarding retailers selling off list"and he denies emphatically that any understandings existbetween him and the manu£actu'rers that he will not resellto retailers who deviate from the manufacturers suggests
price list.
q stated that he knows of no retailers whonave ever een denied advertising insporting magazinesand periodicals because of the retailers practices of
advertising rifle scopes "off list".
; made available his files, and no corresponds_ letters o memoranca either from the manufacturers or to the manu-iacturers was located which has any bearing on this case.=;W_ _ if Z. _ - gstated that although he has:f.f;,- i ;_]o__ oer and reg ailer in the operation jof his ,_ _,_,_§;§;§:;?'§' _1f1'e,has never had the opportunity of engaging ver _ _ i g hf gagagines and sporting periodicals. he has no knowledge th'at;»:s~g<;, "" ' s c a --'--M»! . P _-} L! H ver ising space has ever been denied any other Jobbers or _'::j~;,»'ret_ai-lers. st»3 -:~~,.M
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FEDERAL BUREAU OF INVESTIGATION
I-vrrn No. I _ _,_, , p
ns case omcmm-so AT {Kb -A YORK.
F9011? nun: A7 0 one WNEZN
v --4 ' __~ --M W uuuncn or use
Q CIJTRIEUTION .u iiTAIL AFVLRTISIN? ; ANTITEUST
LT RIFLE SC- ND NCUNTS .
S 92éCPS!SOF FACTS"
% Pugh company,
eumoerland, Md., a wholesale hardware firm, advised hei regularly handles only rifle scopes of the W. R. Weaver Company,.i El Peso, Texas, with only a small number of special orderswritten for scopes of the Lyman Gun Sight Corporation, Middl
, field, Conn. Has no knowledge or record of any business
§ transactions with any of the so-called price cutting retaile £15 has never refused sale of scopes to any retailer of that
5 category. Firm has no agreement with the manufacturers to
i tzntrol resale prices and makes no attempt to police retaile
s prices. Wilson and Pugh Company has never been warned byI manufacturers that it or its customers were selline b
Y the firm will not resell to retailers who deviate from manu-
facturers prices.
- RUC -
_..:fZl92ILS: AT CUMBERLAND, MARYLANIQ
Eh 1 P" E _ .2: June 27 _92, 5'"?-"5 -'1 -' - " eo be Street, aovised that" was the only person oonnectec; - . ~
---m ~ l 1 n sh any available records or information,, .I ~< I .35!» __4__ 5 §- 11> " .
.;¥_'.-K1 !~
i?
I remoo km. wmcvq mm; an-on1' man: av
' "2? .7:/55 *-"rs
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U alow3 suggested prices and there is no agreement or understanding that
D 6 U -4 6 I 6 2- ' " A
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New York 0-1107! - '
1 Regional Antitrust ° JUP3
Y, Attorney! -__..--_;----H
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.
~ an Co-156
I7;, concerning matter! she said,5 i recuperating om a ser_ us snu i fracture and
'" available unt July 5, 1955, at the earliest.
'_ Wilson and Pugh Com.0an3/, 26Q l ~ *r"e nee ' dw e i d ed on Jul Qwas presently
would not be
fl:.2? 'an '-.. -. ,.
by the Lyman Gun Sight Corporation, Middlefield, Connecticut
§3makihg up the remaining 2%Q- The Weaver Scopes are considered
V competitive, pricewise.
_.stated that to the best
never receiveo oroers for scopes C >, :,.
.,v...,._' . .. ~ __>
ax"' price cutting retailers:. .».,,__.,_, .
.3.!-:.-. .
» 92 '- .
yJTexas
Iowa92-r
_92 .
47L: _,. ~_ ,y-.
Colorado
..';:- Scope Company ,Illinois
San Francisco, California
; 1 Pennsylvania
Central Investment Company, Prineville, Oregong§§t$' San Francisco, Calif.
@339;
t§'55.
§,g§ New York
¢.L.j;_________ Pennérb/ania . I 6 r.-1 ._~ .
, .
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vev 5 s 3 , a in - a . L ar . rm, a vis J ,,--;rb
1 that his company has handled only weaver Scopes, manufactured by
H. R. weaver Company, El Paso, Texas, for general business sinceJanuary l, 1929. During this same period, he has written a very .
=. small number of special customer orders for Lyman Scopes, manufac
. He
said that 98% of his sales are Weaver.Scopes w1th.the Lyman produ
of his knowledge, his firm has
rom anv of the followin? so-aalled;j-;
Illinois T?'*'
Colorado 'Q
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EA 60-166 _ ,re jucipF3
Manchester, New Hampshire
°"°"1a"" "-°"Y1a"'5~
:~ t
es~~
of Wilson and Pugh Company and if any of them oid oea . ~. -
such dealings would ave
_ . so no record of such dealings would be available. Wilson and Pugh
* hasnever're u - _ '
'-.-:as selling or advertising at iprices below those suggested by the
manufacturer, or for any other reason except possibly that o -
retailer's f.na'oility to properly meet his financial obligations.-92», Lfizz"5; . k~;~ =_.
_@'<_-_.
H u Ae Cv92y-r92p,v92" '3»-~ -1_ ,_, LQI .92All92J92¢b J.c.....k v rt»
'-§92».'~ IHE. GOG S I".O L1
v~
Ailim
Ong§"f_' ver seen
~.;: . are carried
6 the boo}-'s mas never
bee
to
=2 l-J , cashtransactions. c h _ k
_ J never refuse busi
:',,.: -
1
- l that
t andE
"at who esale prices.
ae~ sales were made only
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a._A"._ j>~_, E,. 1;
92-
ggahuifaqgurenes dealer guotation she bzvhich are in __'~-;-~ -,. , - ... . ~. ,- . . ___ , _ V_-. ~,':!: -,._- ' ' _ I ' < ' ys.>l » ,-,- . _-.. -f --;-_ .~ -' , _»- _~ ' ' .-_ _.-1,~'?- H V .- .. .. ..,;,_~,_ . y . ..> 3* ~~.. 2 0' h ~'-' I-Q = "~:=- V-"""7' "~~ 92-- .' .--I-v ,,. I J v ' _ ' - -7 »_o_ ._.-'*.92-"- /.--Z.".'/' , ."--fi ,. .,
Q: ?~*assachus'etts
-None of the above firms, he advised, have been carried on the _boc;:.s
' l v'ih his firm
h been cash tr"nsactions over the counter and
' 6 " f sed to sell scopes to any retailer oecause that dealer
L'.r.c»'.-1
FlVI: V: .-|~ 92 I-£7§~;'_1~;-I -establ d *= dit wi y sales nave or they have been
wledge, he has 'fg.»_;j
1 recalled that indirectly he had some trouble witrq < ro:-zimately a year ago. At that time-, he received a ngf-.._.. from the 1-l. R. weaver Company and was advisg
of Cumberland had notified them that I-.'ilsohf;?_ ver products to the general publ:!._§,_a,;;'92i ~.=ised .-J. R. -Jeaver Company th8.§7";';__.._
t sad to sell and a request was mad
' aforytheynames of those individuals to whom the firm reportedly sold;-92*lj@
..an_d 'whoyw'ere-not_properly _licensed to buy at wholesale. No names--_l.1:;-_=f~i§More made "a92'fai1able,'he said; -and no additional word was heard fror'{3~v§'i~
: _ I §3a'i er'_-,c_opoerning the matter. ~ . ;;
,l-;:"-1* further stated that although he recognizes weaver prodix' as a r>__'rade.>.iitems, he could not recall and he has no record-oI{;Y:;=.;1E
¢.;.»_.eyfervhavingyentered into "a fair trade agreement with the manufad-tpiif
Both Weaverartd-Ly'man scopes are sold by Wilson and Pugh Company~=j-ea,1~ .4 A¢. .-' r-
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' _Lmanufacturers'._su'gge'st'ed list or dealer prices. Sugges;t_6,
:--'1?¬B8-l£=;Iirices-_ar;é-conveyed" to ,wi'lson and Pugh Company by theno way bi .i_r1_§j<»
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_ the wholesale firm. Resale orices are merely a matter of1 r rstandings aetween manufacturer and Wilson and Puzh.
arvised that he makes no attempt to police retailers
y-l, . the " . when such action has been reouestce J. a
retailer, has advised them that w'1 on .6 or Po hznr _ .|....S ans U. _.. ,...Tl_,_-._;s not a -a;; .~. y and cannot police retailers= prices. no
action has ever been taken against any retailer by Wilson and tug?.Company when notice is received that the retailer is selling
below list prices.rt - -1
Hilson and Pugh Company has never been warned b eithe V. R ll l » - y r 1 _
weaver Company or the Lyman Gun Sight Corporation that it or its
customers were selling below the manufaeturers
any correspondence with either of the
hing retailers selling off list", and ther-
with either of the manufacturers that Hils
l not resell to retailersThere has.never been
manufacturers concer
no understanding
en: rugh Ccmpany wil
nanuiactcrers stgge--»._,§ .92.-.4 f92 '92INDbbv ;JL.L92-Ls!.' suggested price.
who deviate from the
__ac".'ised that he has nor.ocuments or factual ir.fc.rrr.a-.ion
in his
71»relevant to the subject matters discussed.
Row -
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dated 6/27/55-gureau airtel to M;
Ealtimore radiog' ~~
' BEST CUP! AVAMEYE.v
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"92l_ _ _,* ,7. é .,;,,A:_4. ,,£7 ._.?,i.;!'!;!,2'.§~4,_ L -___._-. *~7--; ~ 1 ==~- vii.-=_"*.'?*?{~.4~92'II>'~;'Q'.§'.",f./-'>IA V ::~ .1 ».- .>."..v -+1-»~.>-':~:=-.~..-.-, 2-,4-~ *-- .. .r.-if - .~ ,..'..~_a < <-.-- 4, »~"r;"-. -.-2?- _- <--. v '-.>.. ~ Y-; = '- -"* ~>10 . ,., . - . . . .92,
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r,, _FEDERAL BUREAU OF _l_NVESTl_GATI $N="'.-r~ .
sssrcovvnvnunmORIGINATED AT NF" YURK CITY f V W r. »_ _. .. ;_;-_,-;- my ,.1T-?&>%§3lf-- $77-
71TA Ry"-QDIAT DAl'."IAV;:Dl PIIIOD PORWHWLH MAD! I R_P>°R1'M4A-ISIIY panji 1;,-;1;v11,1,g s/29/as ~| e/24./sa ' A! mu
7 CNARACIE O? CAST
IBUTION AND RETAIL LDVER'I'ISDlG OF .
"COPLS AXE MOUNTS ANTITRUST
1
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.1!J oz're.z1,s= 'SYNOPSIS OF FACTS:
rf Bellmap Hhrdis _,;'ehQ*!_enuf:_aot92_1rin_g.'Compepy, large-whelegaler oi hardware,§~ tools, and apoi-t-;i'xig'i92"g'6k'5't1a'---v;ci't;h$50,-Q90 ecixstbmery _pu.rohase'd 2885 -rifle scopes<l-M112; 4 v===r= wdins 5/1?/55¥"71§5F3*;;§3%~i§P=§3--It-147%?-=¢<>Péb .purch*i¢§'ed from
W. R. Weaver Company, El P§5o,"Teiaiij#d'd§§ije,%_é§91d;by B_eI_1q1_a;$_ pn_a
"fair traded" basis. Se[é.i'eF1-6£"n~_nilat'>1"e cc>z-'1"eapb1§3"§1'i'6_i!";'~{§'§1g_.-;_ '2 years!»failed to reveal anything of interest. I l 'j_ A
- R
Y 1"Inves1;igAt$;;5zg7~Hei*eia"yesrconductegl _,at _the'[ r_equés_t of a letter
from the Dir _ecfboildd-§qq="Juj;e,:f1_3;, Q;9A55{~11'k1ic}}5 .__.1:rq'z1srn_1_.fb_i;'e;d, Ito _thie office
a. letter to the Diréeiitvr ;8T'LlVLr§X'_j!I;;',§ARRE3}'l1§§Ii_S¬in£ fkttorney General,
Antitrust Divieiop,A-_det_e¢ i=19$_5§92 Bella: up
Bardware ma lla_.nu£acfciILring"Cori1j5any,' -111"E§a1:_:=xp¢n»;st¥e¢§;=<ia in compliance
with the June 9, 1956! Depernentel reZ;'u'_"e'e%'-' 1-" .' ~
m Louisville, »1<@n'euag - '_
92 r Bemp1 Hecrdjare - - ac urwng ompany, supp ea ne o cw ng info;-mgtign an
A June 24, 1955- This company is one of the oountrys largest wholesaler of
~ i -; rise, ,
92. ~ .. ., V .4_..- _ . _ _ _ * .:. - ,. 9 ' - * . .» J '- ~--'92.*
.. 1 92 F Anvnovznniio '_ 4 A>lP'¢1ALACW , , b°N°.¢-gm, ,¢§."cuigfoyyvgnnzm - 1 _4! mgaeme _ _ _ _, . ', - '.92.__"1J.:_* _ ._._ 7.. _ _ _- ._ _ T " ' "$_~- ' _;- > _- 371- *3-.: _;_ T .'.>.v1L ;}§'f. 'J, - '5 _ _-- -. =é-1 < ~ i .2-gm! 92 ' ' _ ' ',_- vv. ' - ~'
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1 - . -t --$3 _ , ~ '2' 1
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92h§»~~ .so-122 ' -
p szsr cow AVAILABLE
hardware, tools, sporting goods, paints, plumbing materials, farm implements,electrical appliances, cutlery, dishes, furniture, and related items. TheyQgrqg 30,000-customers throughout the central and southern states. Riflescopes and mountings account for an infinitesimal portion of its sportinggoods sales and consequently, they do not push the it'= or make any 'effort to "keep its finger on the pulse of this particular industry.
J 7 Bclknap's available purchase tend back only 4 yearsending Hay 1, 1955. From these records reported Belkna;s rifle
scope purchases for these 4 years have been: V
1. Lyman Gun Si;ht Corporation, Middlefield, Conn. They donot stock scopes from this company but order a few upon receiving ordersfrom customers. They may have purchased 10 or so during the last 5 or6.years, primarily the cheaper ones for .22 caliber rifles. am ~"1-==~*<@=scopes for r&¢$e: ney manu.ac ure an Be..nap s handle these rifles aswell as the scopes. For the 4 years ended May 1, 1965, they purchased a -
total of 755 Mossberg scopes of two different kinds.
3. W. R. Woofer Company, Bl Paso, Texas, sold Bclknap 2120scopes of l9 different kinda during the 4 years ended hay 1, 1955. Thiscompany*s scopes are the only scopes which Belknap stocks for general
use on various makes of rifles. . ' 1
Belznap does not sell scopes to the price cutting retailers f;since these firms attempt to buy them direct from manuracturers.at cheaperprices than afforded by this jobber. Further, this firm has rejected_no V .orders for scopes from any of its 30,000 customers except for credit reasonsik
=3slknsp handles the Weaver scopes on u "fair trade Lasis,notifying the customer'by its printed catalogue as to the retail pricebut making no effort to ascertain if_the purchaser charges its customersthe proper price. Weavor notifies Bolknap by a price list the threedifferent costs, i.e., cost to jobber, cost to retailer; and cost toultimate purchaser. This price list is published by Weaver who pricechanges occur and is b92lieved to have last been revised in August6° 4616 h
_ -
../.i,_; _ . __ ___. ," - : J . '_ . , v 1 . ,- V-_ in _-92;"i9 :_.,~__ - _.92.¢__>1 >1--,,--W: ;=_-_,_ v__;~__ _n Hp ~' __ __92 <92 J; ,: -I_ . ,.. ,_s -. ,. - . . -. , -~ _.'g','~-;' _- I-.,-,, _, , ,,- - , ;__,_;-.,_.. 92 _ _> _92V -. _ . _ _ . _ -__,»l_,_ -n §_ _.4,_.l_-._'.__ _ _ . . _ __ _:.?- §:,,:|._'.
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.-..]gwes never to his knowledge, been iurnishcd a "air traded" agreement A
J oy 1: A"A -doubts it tho!; sell many scopes to retailers for stock but get§ »»- ~11-a; when the retailer has made a sale or has a good prospect.
_ n .92._.._:_ Y _
f . Belknap depends upon its printed prices in its catalogue -carried by all of their salesmen and supplied to many of their customers
as s means of notifying their retail customers concerning the retail
. .1.
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~aq _ I V P recalls no correspondence from w; R..Weaver Company= »- advising at any of its customers were selling below the manufacturer:
'---'¢
s_ »§,-15¢; eg.;i_f1e scopes. Bellmap makes no attempt to police the retailers
in any fashion. They have never been advised that their retailers areselling scopes at citrate prices. Should"-they be so advised, they wouldbe very hesitant about notifyingthe s:anu£'act__ur_er and probably would not
do so because they know that the first thing ~t'»hE_ini;1n1]acturer would do
would be writs a letter to the retailer advising hi'tlZ_1fIhis=__improperpricing practices: and divulging the fact that Eellcnfap was the source of
their information. This would cause Bellmap to jeopardise other business
with such retailers which would be far too great A price to pay ova
such an insignificant item as rifle scopes. l
t adhere to the price published by W. R p _ _;;1}§>rag5any;i1} selling to their
customers. Belkzap has no idea. who, among :§h'eir.,v3Q,0OO customers, have
purchased scopes and could secure such informati'oh"~on1y by a search of
their sales invoices which number several thouiid each day. »
Bellcnap retains its correspondence 1I_i_.t_h manufacturers for a
period of two years only. The correspondence bctwecn W. R. Weaver Company
and Bellcnap for the two years ending May 1, 1955, was reviewed and nothing
of significsnoato this investigation was found. In this correspondence
Belknup purchased a total of ab'out."$2450_OQ_.inrifle scopes and during the
year 1954, purchased approximately "$21}0QQ7of,;"ififle scopes. t-
" _¢_--pl! _
.J 5644613 r
.>;,_': R suggested list price} Belknap does adhersvtc the mahuiacturer's.published p_.<__-Q-' ,p. A_ { prices insofar as their purchase pric s " ernedfcnd their jobber price" 3-_ to the retailer» It is the belieio thatfprobably the retailers
were two letters from W. R. Weayer Company indicating that during 1953, .1¢
1.
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0. 92 .192' 0
'.- 1 W ~ n 1. v "' '-" ' ' ' .W"~v .<- s-*-.0" .v- .>v'.-. »~_-.' -. ; 1- ,. . .__. .,-. +;¥~ < '-.'.-'-'"'l"- :;-.»».=:. -1".- 4- , 5-A; P ;'~""- ~._< ." =- '.- . --_=' __ r_-"_~- -: --- _-, -I-'2 '- _:- -;--. .. ~. I .--~_,_ .-1 ~ ,_ .,5 '=~- Y? 1' ' = if .:. '"' 5 '~:, "_ ":1; J'."'--.%7,'.v'f" ~1¬:'y'- 3-.y-~"f._92'.'-."'. - ~ né 2:: ,%',»: 5'»?-.;,' ' n . .,§§ .. _ . . . . '*_'. .' -' ' '-. -.-' . 111,11 NH ;.¬.92_¢. .-~. -4 :~I--.- '-" ' .- ,.-, _.. -_.' " .-'- =".>"" *" .3";1*.~1%~"*1v._=- .'-~~' "»-".13" ='- 1'1--' . "~ --zr,-.--I;-'2'-1.== .=*?.-7-=1
. P 92 ' I - I _ I , _ ~ _ . , . . - . ,.'.._l '>._-'-,__4;-.92 .-._,._ M _ ' ,4 -V .1. .4 . l ~._".V,,_H... _ .' _,....'7 --ii» . . . ._ _ __ [email protected] - ~ - ~ . .v ~ - -». . » , ' ~ » V. » _ : --:1' f . . 1 _, , -. I
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LDMINISTRATI va mar; -
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M. ILiJ~'}R';3»C Bureau letter June 13, 1955.492SE-' - .
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- to 7»2n '
_ ?.'7iVf.S7_":.¢
- certain .1K-: w' .'
~_ -;~.~1.>-.' ~
. __ Vand sold .; H
magazinns h1v 92- -I - .7.- ...* £overti;. J,E
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* _ R "X . T1216 rnd , 92_' "Cutdcou
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92 1i£%7" $6., Colnbus,
i.:-.=,',923".~'i;;3 incluc ..'_ 3?, o.-@_~_<;ve-,9,
L@mb, 4scnester, A1. 5»;Ln ocovqs ;"n AI onl ' - T.lDt'¢P@l___g_t___ica1 Compézxy, £itcsbu_r~=l,1; ;nd<-- ymmxp, N T;nt;:.ne , ~-~- ' _, . = ' -- . . mot6%" 5¥S¬EN¬2£B9£§§¥vn, Hlddlehnwn, 9o__ __ W" JJC
onH'92'{ _~
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and
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AND RETAIL AI!v'P§iTISIi2C,- OF
A111, 1O'§I'l'li_; Y'..T'I.'-.'T'{.FE'I.
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~'-"M11:
mo r_~.Y ~.- ." M 7'1 m¢T . que;u of 1/3;,j
T, I": ;.%1'1T" I1*<:_
: of oug investig
1;, by Attorneys
~"*e involves a]92.c,. 1- cwn4.sLod burcd
s/5Mr. Mohr
Mr. Parsons
Mr. Rosen
_!oMr. Tamm
Mr. Sizoo
1 P~a "sis P@*i?ud and inve;tk.Wmmnowd
.';'.L »<>~.-.;»»11;~c¢d Tele. Room "Nichols
Mr. Belmont _
W. Harbo .___.
'*..92? '1:H. T.
4. 8-
on presented Mr. Holloman f3¢:_.
of .ntitr1.;sb Miss Gondy 'aged efforts by ."!,l!Q§gturers, of rifle scopes and ~.~-~r_+.; 1
1" 2 E-xztyd
1/ ~ ~!_l di
sft *;:nich these products are
--1>192<=. xt appears tnar. publi
:hn,requost c manufacturers
Q-£-l.cct ch: ix-o?v d 06
Lil " lbli0.'l1.;iC Ct? in ,
C130 8
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irom:'m/92~rhic}1 ul;te".j=t.-M} to re; . t 40 0 1$1,
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of
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IFDICTHENTS! 1'.-.1 . . .. ,A FEDERAL GRAND JURY HERE 1nn1cTzn»TaaEt PUBLISHING COMPANIES,THREE HANUFA¬TURER$ or RIFLE sc0PEs Ann out DISTRIBUTOR TODAY on _jQ§HARGES or OPERATING ILLEcAL BOYCOTTS To ILIHINATE CERTAIN RETAIL .;;i<EALERS neon THE mnusrnv. . ~ ;..:§THE IHDICTHENT ANNOUNCED BY ATTORNEY GENERAL BROHNELL SAID THE >:§:ETEcT or THE ALL£cEn CONSPIRACY HAD BEEN To sTAB1L1zE RETAIL PRICESF oPT1cAL RIFLE scoPEs. .A LT SAID THE MANFACTURERS CONTROLLED so PER CENT or THE NATIONAL Lq.PTICAL RIFLE SCOPE MARKET. THE SCOPES --. TLESCOPIC SJGHT -- ARE _,-/-_;f'-;A,0uuTEn on RIFLES AND EMPLOY OPTICAL GLASSES Eon HAgH§FICATIO8 , ';»w» -PUBLISHING COHPANIES NAMED IN-THE ACTION WERE TH - 911gnAL,§1ELE_~W _;$z%_' oc uon.nE-AnEa1cA um H n on»: ;c.. PUBLISH£R_ Enm rucm '
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4 ' Mr. :'-'-2'.» am cow Aim Mr. 92.'.'-;==~.<,»-}:,'»'»}'d7." ._. Attor-nay» General Hcrbcrt Bro-mell, Jr.» announced that a federelzgieaéyul-,1" -i.-4,17»
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"dividu_als on charges of violating Section l of the Sherman Act in conne~" ; _ .;,-7;;
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-».-;;iy_ifhh.1the sale and advertising of optical rifle scopes. Named as ._,9_'.__92 . .
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f_ . are the following:__>.'21 _, .
.1;_~:.;.;. __?:i,_~-.a X;-£,y-g;an_GunSight Cor'p., Middlefield, Conn., a manufacturer7 92 '.'r.rWrfbweaver, El 'Pa_so, _'le;<a_s_, a manufacturer; .q_;_.;;__,e_92v»_-3 V Joh?!92U rtl, Pittsburgh, Pa., a manufacturer; 9 ;_ M. Jac1l:&>;$tith, San Antonio,_flfe;;as, formerly a e5*=""-"74_"E_E_:£=J-5? ~: 1;-. 92QQmufactur_er's exclusive distribufor. 92The ational Rifle ;1§._s_sc>,;c_i_a;t_;;1,<;_;1;-_o_§'e_§;_§_';nev2_j,_vi&.oa, w8_S1L1p813O_TlJ_"p. C.', 'an inciorporated association and-lp'§'b1'f§E~er"of.-the ~mag_aETi2'e _, »_ 92?Ame1_-ican eRifleman"; ' " M92=o ular "Science Pablishin Company, Inc., New York City,blisher of the magaz%r}8u¬door"Liie'},and" " ' ,____,i__ _ Henry olt an Company, Inc. , Nay Yer}; City,"'7§ublisher of _ V thema§a2inei "1=;<-;1a_'a. Stream.",_ _.T
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._._- I .":f- .5. __ '-r : :~_ "Scopes" are described as telescopic sights, employing optical -glagses
:' Vjanagnification, mounted on rifles to enable more accurate aim than {would. »._ I ' 3*-'.=~v -9 -; _:'1]{; - fr' . ,5 . ~35 _~.~
1-"__ 1.": , ' _ ~ :I>A .- .;_P?'_p0SS1b18 with metallic sights. Used extensively in hunting and target ' I '.1~15: '.a -W =1,
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~ -»..,-.~ 0, - ~ - . - _'.:=.92"* mt~_.:_;_~_-A; retail sales exceeded $5,000,000, withdefendant manufacturers -:;.~§~F_ _~»' _ I ~ ,. _»_- 1r's"| 4:-.7-_-t' 0' shootid t:
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_ i--iaccounting for approxirrately 90 percent oflall; scones manufacturered in _.,,
.. W3 °°s"m"gthemselves and with others to e'!Mcc'l>92r."1d'v::.;;*_s_<_5:-i;:Aal.-il'eil4"*off§1iat'f;;dea1era-1, » . '. ~ " . _ - » :- ' ~ - ".>"';g,-"~ ;industry and to boycott» of their advertisements by outdoors =cxa§a'a'i_ges.
who sell to consumers -at less Vmanuiacturers" list. H , .;__ » 1 .-J _ _r -'y_
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The objectives of the conspiracy are alleged to have been accdiblisbed
by means of an understanding, among the defendants, effectgated by refusals
to supply off-list dealers, coercion of distributors to adhere to resale
; prices and to refuse to sell to nonconforming dealers, and the advertising
- boycott. The over-all purpose of these activities is stated to be stabili-
A zation of retail prices.
Assistant Attorney General Stanley N. Barnes, head of the Antitrust
A Division, said: _
"This case, which alleges exclusion of certain retail
dealers from the rifle scopes business, presents issues
inrolving both vertical price fixing imposed by the scope
manufacturers and boycotts by the manufacturers and pub-
lishers against advertising of dealers vho charge less than
the manufacturers list prices. Criminal action is insti~
tuted, in this instance, in line with the announced policy
of the Department of Justice to seek indictments against
i violators wherever Ber se violations of the antitrust laws
are considered to exist."
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or agrta SCQP*R ASL MOUNT 'mrrwtsw > A BET CUPY RVAMBII
Tno Attorney General on ll/15/55 announcedthat a Grand Jury at aaahlngton, D. 0., on that dataindicted tno following for violation of Section 1 oft£i?$harman Aet: r
Lyman Gun Sight Corp., Hiddlorreld, Cunn., ut manufacturer;
U. R. Beaver, El Paao, Texas; a manufacturer;.John Unartl, Pittsburgh, Pq.; g ngnutacturQr;_H. Jackson tith, San Anton1b;'Takha, tarnnrl: ;u manufacturer's axoluaive distributor; 'Tao National Rifle Aasociation or America,
Haahlngton, 3. 6., an incorporatedaaaocixtion and publisher of the magazine"amarioan Rlfleman";Popular Soienaa Publishing Company, Ino.,Row!ork City, publisher or tho magazine"Outdoor Lire"; and iHe Bolt and Company, Ino., Hen York C ,n§zb1lshar of the magazine "Plaid & 8tr:zn.'
Washington Field, whioh has not .@@at¢§¢¢tinveatigation in this matter, is being and: dilly; oforigin to follow and report proaeoution of tiiiviito_ 1'in UFDC, Washington, D. Ct ' '1. 7
_ Haw York, which has bean or13in,»z5oul&l,summit an RUC report with the ti change! g itldsnames or above derandanta. Fur 0., Qi-'pertinent am-lo]. to the now office or _ 3
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SYNOPSIS OF FACTS:
pg r-eceied bi thi Ahc1_'1or'age Office of the F4BI_f_rom-' 1- E A," £1 " . V { ¢_.'K; x r.. »/"'}~"92.h " . -_» "/~,x~~,~=..1 '-"*"C-
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-;f._%_,~*#,N 4" "§9§_6 -E ~ fif-15*Letter received from- in which he stated
that he had placed _,a_ ere sement_ Kn t e_ Amer1_c'anL W
_H,ifl'ei_n!a'n!¥'.<t_in {Nqv.em::"e_rA jgnd =De cembe17,j»l~955i-f hoyieiqfi '_c.h>e_._"-hadreceivecfa le'tcer''om this magazine refusing his'"pro*posed
advertisement for January, 195 .
' ' 555T00HAV§!LABLE
DETAILS: _'
3.-
0n December 19, 1955, the following letter was,
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Dec. lh, 1955
I les<ified ads to the AmericanA.-e_._;;_sLe_1f1t;:.n c _ - _ _._ >' ' - ' d December, 1955Riflean;fdrthe;mon§hs;Q§N9Yember an _
both of which were4?uh?esreq§e5Q§¢»@ However I mailed
in an ad; to be placed in JanuéiI955isse3-wqichwas not accepted. ' " K
"Am enclosing letter I received from the Rifle
man this date.
_ A "I moved back to Coloredo-in August due to illhealth; if necessary for you bagget in touch with me, my
_address is:
Cdleriee-. __
"Have noticed 1¢'neé§meer Riflemah'magazlnethey have been indicted along with several others.
be glad to help in any way pnssible in this matter
"Sincerely,the t
will
The enclosed lettarereferbed to by
i a e ber 7 1955 and bears the s gn
MUULTON, American
as follows '
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A .. . ,,@$Q;4§1ée: J'1-s dated Decem" Rifleman he contents of the letter.v_J
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"We prefer nqt to accept your advertisingfor publication in the AMERICAN RIFLEl'1AN,
so our Accounting Department 1:; sendingyou under separate cover our own check [email protected] in reimbursement for the advance
. *';,':.~.*.-at remittance enclosad with your 1_-,ct,e-1"
: L-ov-2.:r.ber 26th."
E}~¥CI£Q SAb'RE TO 'll*E7_BUR_EAU:- FOR TRANSMISSLQN. TO THE ANTITHUST DIVISION! ._ _| yv;~.,. ,< .__A W Q Z 5, directed to
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REFERENCES
-:2-er to New York dated March 10-
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Director; FBI so-@616!. I _/l __ /5,, . / /J
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92_/ _ - .LYMN mm sitar CORPOl1A'1j£I-!-;; we.1m'r1"1=:w:~s'r / , , "o ' e 501°
IAttacned for eaon oyfice is a copyiof en
Antitrust Division memorandum dated l/1.2/S6 which
requests certain investigation in preparation for
the trial of this matter. Letters addressed to the
companies to be contacted are also forvnrded herewith.
. All offices except Portland have previously
conducted investigation in this xaetter under the eeptien
"Distribution and Retail nave:-tiiiegt of,_$i£le gpepee
Mounts; Antitrust." It appears that Portland. N111 __
require any additional background information to'hmd1e" '
the present request. As indicated in the attached
memorandum, u Grand Jury in tne District of Columbia.
on ll/15/SS indicted tour manufacturers and three
publishers. Washington Field has been made office of
origin to follow and report prosecution. All person!
contacted ere to be advised that the _investige.tiorL,i8"
being conducted at the request oi MG Barnes, Anltrlzlt
Division. The fact that they were so advised need not
be set out in reports. _
Attention of all offices is directed to-- - :@%'*'»fact that this matter is scheduled for trial on-=2/1 §5~ '--e-;".{,<. -._._» .-<'1 . .01:-L ..*~ '. - , ,4 . -- - 1 . ..- _ _; _',,-_."_wig. . i._
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lihe investigation requested by the Antitrust Divieiqvmust be given preferred and continuous ll927lQ1'1B1§I'1't..:t§i::'-~.
permit completion of all investigation and aubmizieieli .-~"i'i"»'~ - -i .11oi reports to reach mo Bureau not later than Z/_3f§5¢;
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