Document zdOqb6RDwwx6MmNj1m9qz6oKn

CONTENTS llaee B DIRECT CROSS REDIRECT RBCROSS 1311 Exhibits 9 -D t 40 FOR IDENTIFICATION 1320 1322 IN EVIDENCE ,, \ 1322 ' -- it 1323 3333 .. ;r i ., \ J 'V .. \ . "Hi; N39104 . . . ' VJ j < :: ': .'/ v1; m ifcSttS^ 4 / : .: : l4 v. ; * ; ^y-; OFFICIAL REPORT OF PROCEEDINGS BEFORE THE Federal Trade Commission 7iM > a*.?, >* - . ,! ... 1 " - .* W;.* , V ,. * & s> immt- Matter ,, < -Jr' ' : ,?uvK*--,'ki . DOCKET No...... 5253 'll'" ` i; . SXl . Ohio ^Date.4-^..?.5..A?i6........ . Pages.. L3ia-sl334...... * l"* *. : . .v; : - ; i.'ify: 56; ? f ' . *: :r;- i frriMEfr $ v - FXECTREPORTER, INC, (WARD a PAUL) . ' OFFICIAL REPORTERS v 1760 PENNSYLVANIA AYE, N. W. 'WASHINGTON <V O. C- - . ''. " Tobf^MM v 4264 -'.v ... f ",?" . -.* .'!t fc- ''; ` "J * # v:: >^v^l.2S^5:? N39104.01 o CERTIFICATE This is to certify that the following pages and related exhibits are a transcript of hearings before the FEDERAL : TRADE COMMISSION in the matter of: DOCKET NO. - 5253 CASE TITLE - National Lead Co., et al. PLACE - Cleveland, Ohio o DATE - July 25, 1946 PAGES NUMBERED ! 1310 to 1334 INCLUSIVE: which were had ais therein appears, and that this is the original transcript thereof for the files of the Commission. ELECTBEPORTER, INC Official Reporter N39104.02 15pa 1325 823-8, to that set forth in 823-0? 1 A 1 I would assume that it was as of June 21, 193^ as there is no 'Intervening bulletin between this and this I (indicating);* 4 ft 5 I call your attention to Commission'e Exhibit 823-E, and the geographical differentials set forth thereon. Those j 6 appear to be the same as those on 823-0. Can you state 7 whether those differentials -- geographical differentials 8 9 applied continuously from the date of 823-0 to the date of 10 823-F? i! .A Yes, air. 12 ft I show you Commission's Exhibit 823-ft, and call your 13 ttentlon to the statement, "Pacific coast only,* and the M price quoted thereunder, which Is apparently one-quarter of 15 a cent higher than the price set forth immediately above. 16 0 you recall the states which comprised the Pacific coast 17 area, as referred to on that document? 18 - It would;be all states west of the Rocky Mountains. 19 Please state the period of time over which that geograph 20 er! differential as set forth In that exhibit has been quoted 21 7 Sherwln-Viljiiaflis in offering dry white lead for sale. 22 1 don't bjelieve I could answer that question without 23 referring to records. 24 Do you recall whether such differentials were quoted in 25 1936? N39104.03 1326 1 No, sir; I don't. z Does the Sherwin-Williams Company enter into contracts 3 1th purchasers of dry white lead covering quarterly require4 eats? : 5 Dry white lead? 6 Yes. 7 Yes, sir. 8 Are such contracts on a printed form? 9 Tea, sir. SO Over what period of time have such printed form con- SI racts fox* dry white lead been employed by Sherwin-Williams 12 oopany? 13 Ever since I have been with the company; how long be14 ore that, I don't know. 15 Doeei Sherwin-Williams enter into contracts with pur- SO haeeipa of dry red lead and litharge covering quarterly re 17 tirements? It No, Sir. 19 Havel they ever? 20 lot to my knowledge. 21 Does the Sherwin-Williams Company generally sell lead 22 Lgnents in accordance with its published and announced prices 23 id terms of sale? 24 MR. WELCH; Objection. Your Honor, the record in 25 lie case already shows the Inspection of thousands of in- rI !a. 1 1327 1 voices. They have all been analyzed and tabulated, and 2 they certainly show vhat the general practice of the company 3 1b , as to whether It does or does not sell according to its 4 published prices, which price list the Commission also has 5 in evidence. 6 We say that is the best evidence of how the com 7 pany does business. 8 HR. WRIGHT: I submit that while there is a rec 9 ord of thousands of Sherwin-Williams invoices in the record [IQ already, that doesn't purport to cover the undoubted millions 11 of invoices that the Sherwin-Williams Company has covering 12 transactions they have entered into over a period of years 13 with which this complaint is concerned. 14 TRIAL EXAMINER NORWOOD: Read the question. 15 (The reporter read the last question.) I16 TRIAL EXAMINER NORWOOD: 17 question. Overruled, answer the 18 19 A MR. WELCH: Exception. Yes, sir. 20 3y Mr. Wright: 21 Does Sherwin-Williams Company sell dry red lead and 22 Litharge in carload quantities? 23 I Yee, sir. 24 3, Will you state the method of quoting prices on carload 25 quantities of dry red lead? 1328 IA It la done on & differential basis over the pig lead 1 market then existing* 3 Q Existing at what time? 4 A At the time of quotation. 5 Q At the time of the quotation? 6A 7 Q, lea, sir. Will you explain the expression "Pig lead"? What 8 market? 9 A New York pig lead market. !0 Q, Now, la that an average pig lead market? 11 A It oould be either one. If It was a spot sale, It 12 would be quoted on the pig lend market existing at the time 13 of quotation. If it was covering requirements over a period 14 of time, it oould be done on either basis, either an average 15 monthly pig lead quotation or on a spot basis. U Q What quotation.ia used? / 17 A IS Q, Either one. What quotation for pig lead, American Smelting A Re- ' 19 fining Company quotation on pig lead? 20 A No, sirj the New York market. 21 Q Well, what sources of market information are used to 22 determine? 23 A Engineering Mining Journal le the official publication 24 that we use for determining pig lead quotations. 25 0, In shipping lead pigments to tb * customers. does the j ' 19pa 1329 Sherwin-Williams Company In all Instances pre-pay the freight? I MR. WELCH: Objection. The document Is already in 1 evidence to show what the freight practices are and how It 3 to handled. We don't think this witness has been qualified 4 to show familiarity with freight rates. 6 TRIAL EXAMINER NORWOOD: I think he may tell us 7 If he knows. Counsel may enlarge on this information. 8 THE WITNESS: Will you read the question again? 9 TRIAL EXAMINER NORWOOD: Objection overruled. Read (0 the question. 11 (The reporter read the last question.) 12 A You mean by that actually prepaying It? 13 |Q Yes,, sir. 14 A We either prepay or allow the freight on the invoice. 15 ft When you allow the freight on the Invoice, the customer 98 pays the freight? 17 A Yea, sir. 18 ft And it In deducted from the Invoice? If A Yes, sir. 20 Do red lead In oil and litharge In steel kegs and cans 21 nerally carry the same freight classifications and freight 22 ates ns white lend In oil? 23 I couldn't answer that question offhand. 24 Do dry rod. lend and litharge in bags and barrels or drums 25 fearry the same freight classifications and freight rates as 1330 I dry white lead in similar containers? IA I "believe so. ;s Q, Do you represent the Shervin-Wllllams Company in the 4 Lead Industries Association? sA Exactly what do you mean by representation? Q{& Do you attend the meetings of the Lead Industries 7 Association as a representative of Sherwin-Williams Company? 11 A M; air. 9 Q Yobr answer refers to the present time? I A Yeis, sir. ft Q, Have you ever represented Sherwin-WilliamsCompany? 12 A Yea, sir; during NBA days. 13 Q Over what period of time was that, do you recall? 14 A Not exactly, no. 15 Q. Does the Sherwin-Williams Company furnish statistics til to the Lead Industries Association showing production, stocks 17 and shipments of lead pigments? 111 A Yes, sir. 19 Q. On what time basis are those statistics furnished; 20 monthlyj annually? 21 A Monthly. 22 Q Does Sher* i n- < i 111 am s Company receive from the Lead In 23 dustries Association statistics on production, stocks and 24 shipments of lead pigments? 25 A In1total by the Industry, yes. 2lpa 1331 1Q They show the total of the production, stocks and ship 2 ments for the industry? 3 A Yes, sir. 4 Q Do they show any percentage of the various companies? 5 A , No, sir. 4 Q, Are you able to ascertain your position with reference 7 to the remainder of the industry by these statistics supplied 8 to you by the Lead Industries Association? 9 A Our percentage of the industry; yes, sir. li Q Will you state on a percentage basis, as near as you 11 can, the relative position of Sherwin-Williams in the ship II ment of white lead In oil to the rest of the Industry during 13 il9*3? 14 A Approximately five per cent. 15 k Owing 1944? 16 A Approximately the same. 17 *1 Has that approximate five per cent position extended 18' over any considerable period of time? 19 k It has been around that figure for a great many years. 20 ^ Can you state the relative position of Sherwin-Williams 21 a percentage basis to the rest of the industry in ship 22 ments of dry white lead for I9A3, say? 21 24 25 ^ MR. WELCH: That is, shipments to customers? MR. WRIGHT: Yes, sir. Shipment** to customers? 1332 I By Mr, frights I Q Yes, sir. IA 4Q 5A 6Q Practically nothing, lees than one per cent. Would your answer be the ease r.e to the year 19^0? Yes, sir; It would. Has that less than one per cent relation obtained over 7 any considerable period of time? 8A In normal yjaars, that is true. 9 Q fill you state the relative position on a percentage 10 basis as to shipments to customers of dry red lead during 11 19^37 12 A Practically:nil. 13 a Has that obtained over any considerable period of time? 14 A Yea, sir. 15 Q For how many years, would you say? 16 A As long as I have been in the business. 17 Q 18 A 19 Q With reference to litharge? It would be less than one per cent, Would that also aoply over a great many years, or has 20 It been -- 21 A Fifteen years, at least. 22 Q How about red lead in oil? 23 A Practically nil. 24 MR. WRIGHT; I have no further questions, your 25 Honor. 1333 MR. WELCH: May re have a recess, your Honor? I TRIAL EXAMINER NORWOOD: Five minutes recess. 2 (A short recess was taken.) 3 TRIAL EXAMINER NORWOOD: The witness will resume 4 the stand. Proceed. 5 MR. WRIGHT: I have no further questions, your & Honor. 7 8 9 MR. WELCH: No questions, you. Honor. TRIAL EXAMINEE NORWOOD: The witness is discharged. 10 (Witness excused.) 11 TRIAL EXAMINER NORWOOD: Commission's Exhibit 493-A 11 to G, Inclusive, the objection is overruled and the exhibit 13 is received in evidence. 14 (The papers referred to, heretofore marked for 15 identification Commission1a Exhibits 493-A to G, in in clusive , were received in evidence.) 17 TRIAL EXAMINER NORWOOD: Anything further? 11$ MR. WRIGHT: No, sir; nothing further. I suggest 19 that we adjourn to St. Louis on the 29th. 20 TRIAL EXAMINER NORWOOD: Anything further counsel 21 wish to take up at this time? 22 The hearing is now adjourned to reconvene in the 23 City of St. Louis, Missouri, in Room 425 of the U. S. Court 24 House, at 10 o'clock a.m., on the 29th day of July, 1946. 25 That means the standard time of that zone.