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James W. Heizer, executive secretary, Virginia Gasoline Retailers Associa-

tion, Inc., 203 Carlton Terrace Building, Roanoke, Va.

G. D. Helzer, Continental Oil Co., Box 2197, Houston, Tex.
Charles M. Hewitt, Indiana University, Bloomington, Ind.

Ralph Hofstad, FS Services, 1701 Towanda, Bloomington, Ill.

John Holm, Peoria Dealers Association, 700 McKinley Avenue, Bartonville,
Peoria, Ill.

Jack W. Houston, Georgia Association of Petroleum Retailers Institute, Post
Office Box 4028, Decatur, Ga.

Jack W. Houston, National Congress of Petroleum Retailers, Inc., Toledo, Ohio.
Gary W. Hudiburgh, Supertrop Corp., 2482 West Second Avenue, Denver, Colo.
J. M. Huemmrich, National Congress of Petroleum Retailers, Inc., Spitzer Build-
ing, Toledo, Ohio.

I. P. Hughes, Bureau of Labor Statistics, Fourth and G Streets NW., Washing-

ton, D.C.

William S. Hupps, Mobil Oil Co., Post Office Box 959, Buffalo, N.Y.

W. Gibson Jaworek, Marathon Oil Co., Findlay, Ohio.

J. C. Jimenez, Tidewater Oil Co., Los Angeles, Calif.

S. Frank Jones (legal department), Cities Service Oil Co., Oil Center Build-
ing, Post Office Box 300, Tulsa, Okla.

W. Tom Jones, National Oil Jobbers Association, 1001 Connecticut Avenue,

Washington, D.C.

Ephraim Kahn, Super Service Station Magazine, 912 Colorado Building, Wash-

ington, D.C.

Harold L. Kennedy, Marathon Oil Co., Findlay, Ohio.

L. E. Kincannon, Rock Island Refining Corp., Post Office Box 68007, Indianapolis,

Ind.

John Kircher, Continental Oil Co., Post Office Box 2197, Houston, Tex.
Earl Kirmser, Socony Mobil Oil Co., Inc., 150 East 42d Street, New York, N.Y.
Aivars Krasts, Continental Oil Co., Box 2197, 1300 Main Street, Houston, Tex.
John A. Kunnen, Ohio Retail Gasoline Dealers, 3440 Glenway Avenue,
Cincinnati.

L. B. Lea, Standard Oil Co. of Indiana, 910 South Michigan Avenue, Chicago, Ill.
J. William Lenon, Mid-Continent Independent Refiners Association, 1202 Mid-
land Building, Kansas City, Mo.

Mrs. J. William Lenon, Mid-Continent Independent Refiners Association, 1202
Midland Building, Kansas City, Mo.

S. Morris Livingston, American Oil Co., 910 South Michigan Avenue, Chicago, Ill.
J. Lipson, Morris, Murphy, Clapp & Abrams, attorneys, 1144 Pennsylvania Build-
ing, 425 13th Street NW., Washington, D.C.

Harry A. Logan, Jr., president, United Refining Co., Warren, Pa.

William J. Lowry, Marathon Oil Co., 539 South Main Street, Findlay, Ohio.

James H. Marsden, executive secretary, North Dakota Retail Gasoline Dealers

Association, Post Office Box 1266, 112 North University Drive, Fargo, N. Dak.

J. R. Mauheus, president, Texas Association of Petroleum Retailers, Austin,

Tex.

J. H. Mayes, 555 Fifth Avenue, New York, N.Y.

Nancy J. McCulloch, 4000 Massachusetts Avenue, Washington, D.C.

C. W. McDermott, Derby Refining Co., Post Office Box 1030, Wichita, Kans.

Duane McDonald, 811 McDonald, McKinney, Tex.

W. J. McGhee, vice president, Rose Oil Co., Post Office Box 751, Vicksburg, Miss.

Charles E. McGinnis, Pennyoil Co., Suite 410, Fourt Gateway Center, Pittsburgh,

Pa.

Edward W. McMahon, Socony Mobil Oil Co., Inc., 150 East 42d Street, New York,

N.Y.

Gil Meger, Gil's Towing & Auto Clinic, 23544 Northeast Halsey, Troutdale, Oreg.
H. D. Moore, Derby Refining Co., Post Office Box 1030, Wichita, Kans.

Kenneth C. Moore, National Congress of Petroleum Retailers, Route 2, Frisco,
Тех.

Roger F. Morse, Standard Oil Co. of California, 225 Bush Street, San Francisco,

Calif.

Richard Millan, Continental Oil Co., Houston, Tex.

Walter Miller, Painters Local 275, Chicago, Ill.

W. H. Miller, self-employed, 4633 Melissa Lane, Dallas, Tex.

William E. Mullin, State of Minnesota (attorney general), State capitol, St. Paul.

T. B. Murphy, Mid-Continent Independent Refiners Association, 1202 Midland

Building, Kansas City, Mo.

Tracy Odell, 3230 Vista, Long Beach, Calif.

Donald C. O'Hara, 1725 DeSales Street NW., Washington, D.C.

Neal R. Olson, Frontier Refining Co., 4040 East Louisiana Avenue, Denver, Colo.

F. J. O'Rourke, Union Oil Co. of California, 1612 K Street NW., No. 510, Wash-
ington, D.C.

C. L. Orm, Marathon Oil Co., Findlay, Ohio.

Jim Packerson, Humble, 9942 Harry Hines, Dallas, Tex.

Frank A. Palaio, Virginia Gasoline Retailers Association, 4147 King Street,

Alexandria, Va.

R. Palmer, H. F. Eger, Gramercy Hotel, 1616 Rhode Island Avenue NW., Wash-

ington, D.C.

George H. Panuska, Sigma, 230 South Bemiston Street, St. Louis, Mo.

H. G. Peterson, American Oil Co., 910 South Michigan Avenue, Chicago, Ill.

R. J. Peterson, Pennzoil Co., Gateway Building, Pittsburgh, Pa.

Thomas M. Piner, North Carolina Service Station Association, Box 3342, Fay-

etteville, N.C.

Gerald P. Royal Ples, North Carolina Service Station Association, Fayetteville,

N.C.

Paul Porter, counsel, Mid-Continent Independent Refiners Association, 1202

Midland Building, Kansas City, Mo.

James A. Ransford, Tidewater Oil Co., 1701 Pennsylvania Avenue, NW., Wash-

ington, D.C.

M. H. Robineau, Independent Refiners Association of America, 1201 Shoreham
Building, Washington, D.C.

L. Malcolm Rodman, executive director, Independent Gasoline Dealers, Associa-
tion of Maryland, Inc., 2519 Maryland Avenue, Baltimore, Md.

Roland V. Rodman, Apco Oil Corp., 1000 Liberty Bank Building, Oklahoma City,

Okla.

Stanley A. Rodman, executive director, Greater Washington Service Station
Association, 3432 Connecticut Avenue, NW., Washington, D.C.

Johnnie B. Rogers (attorney), Texas Oil Jobbers Association, Inc., 1120 West
19th Street, Austin, Tex.

Jay H. Rose, Humble Oil & Refining Co., Post Office Box 2180, Houston, Tex.

Larry D. Rowland, National Congress of Petroleum Retailers, Inc., Toledo, Ohio.

Thomas E. Ryan & John F. McCarthy, Ryan Oil Co., 10126 South Fairfield Ave-

nue, Chicago, Ill.

Earl W. Rye, NCPR, Toledo, Ohio.

Florence Rye, North Carolina Service Station Association, Fayetteville, N.C.
James W. Scanlon, Independent Oilmen's Association of N.E., Sturtevant Street,
Somerville, Mass.

G. H. Scarborough, Virginia Gasoline Dealers Association, Carlton Buildings,
Roanoke, Va.

Dallas C. Shelton, Virginia Gasoline Retailers, Inc., 1303 Grandin Road SW.,
Roanoke, Va.

M. A. Scott, Virginia Gasoline Dealers Association, 4825 West Broad Street,
Richmond, Va.

Charles E. Shipley, National Congress of Petroleum Retailers, 32303 Bonnet Hill,
Farmington, Detroit, Mich.

William J. Sidwell, T. J. Ross & Associates, Inc., 405 Lexington Avenue, New

York City, N.Y.

Harvey W. Smith, Jr., Texas Oil Jobbers Association, Austin, Tex.

William D. Snow, NCSSA-NCPR, Fayetteville, N.C.

William D. Snow, executive secretary and general counsel, National Congress of
Petroleum Retailers, Inc., Toledo, Ohio.

Barbara Staines, Oil News Enterprises, 979 National Press Building, Washing-

ton, D.C.

Arthur A. Steffan, American Petroleum Refiners Association, 717 Ring Building,

Washington, D.C.

George R. Steffes, Tidewater Oil Co., 4201 Wilshire Boulevard, Los Angeles, Calif.
Harry B. Stein, North Carolina Service Station Association, Post Office Box 3342,
Fayetteville, N.C.

David L. Stone, North Carolina Service Station Association, 5522 Bragg Building,
Fayetteville, N.C.

Walter S. Strange, Jr., 349 South Brookside, Wichita, Kans.

Howard Tak, SIGMA, 230 South Bemiston Avenue, St. Louis, Mo.

Ray W. Tosch, dealer, Ray Tosch's Service, 6505 ENW-Hi Way, Dallas, Tex.

David Tucker, the Gasoline Letter, National Press Building, Washington, D.C.

William D. Tucker, National Congress of Petroleum Retailers, Inc., 2500 Dinneen

Avenue, Orlando, Fla.

Homer Turner, dealer, Humble, 6502 Lemmon Avenue, Dallas, Tex.

Lloyd N. Unsell, Independent Petroleum Association of America, 1110 Ring Build-
ing, Washington, D.C.

F. R. Wade, Union Oil Co. of California, Post Office Box 7600, Los Angeles, Calif.
Harpy Waller, A & H Transportation, Inc., Post Office Box 866, Baltimore, Md.
Phillip D. Walter, Phil Walter's Gulf, 915 Capital NE., Battle Creek, Mich.
P. Wendell, United Refining Co., Warren, Pa.

John D. Wheeler, Texas Retail Petroleum Association, Dallas, Tex.

Charles V. Whittemore, Virginia Gasoline Retailers Association, Roanoke, Va.
William Whittington, Virginia Gasoline Dealers Association, Carlton Building,
Roanoke, Va.

Bill Wiley, American Petroleum Institute, 1101 17th Street NW., Washington,

D.C.

Gordon H. Wilson, Michigan Petroleum, 547 East Jefferson, Detroit, Mich.

James C. Wilson, Tidewater Oil Co., 4201 Wilshire Boulevard, Los Angeles, Calif.

G. E. Woodward, DeGolyer & MacNaughton, 5625 Daniels, Dallas, Tex.

Bill Wright, Texas Oil Jobbers Association, Austin, Tex.

P. R. Wrigley, National Petroleum Refiners Association, 1725 DeSales Street NW.,

Washington, D.C.

Blaine J. Yarrington, American Oil Co., 910 South Michigan Avenue, Chicago, Ill.

FTC INDUSTRY CONFERENCE ON MARKETING OF

AUTOMOTIVE GASOLINE

EXECUTIVE SESSION

MONDAY, JULY 19, 1965

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE No. 4 ON DISTRIBUTION PROBLEMS
OF THE SELECT COMMITTEE TO CONDUCT STUDIES AND

INVESTIGATIONS OF THE PROBLEMS OF SMALL BUSINESS,

Washington, D.C.

The subcommittee met, pursuant to notice, at 2 p.m., in room 2261, Rayburn House Office Building, Hon. John C. Klucyznski presiding. Present: Representatives Kluczynski, Evins, and Moore.

Also present: Representative Broyhill of the full committee; Gregg Potvin, subcommittee counsel; Myrtle Ruth Foutch, clerk; and John J. Williams, minority counsel.

Mr. KLUCZYNSKI. The hearing will be in order.

Since the 84th Congress, petroleum marketing has been one of the prime areas of interest of this subcommittee. A great number of hearings and reports have been compiled in the past with respect to small business problems within the petroleum industry. A list of the various proceedings which the subcommittee has held in the past on this subject is herewith submitted for the record.

(The list referred to follows:)

HEARINGS ON THE PETROLEUM INDUSTRY CONDUCTED BY REPRESENTATIVE JAMES ROOSEVELT'S SUBCOMMITTEE

Hearings

84TH CONGRESS (1955-56)

Distribution problems on retail distribution of petroleum and related products. March 28 to June 7, 1955. San Diego, Calif., August 30-31, 1955. Richmond and Abingdon, Va., November 3, 4, 1955.

Reports

Retail gasoline operators, alleged coercive and discriminatory practices against, by oil company suppliers. (H. Rept. 1423.)

Hearings

85TH CONGRESS (1957-58)

Distribution practices in the petroleum industry. Washington, D.C., April 10-13, 1957. Denver, Colo., April 16, 1957. Los Angeles, Calif., April 24-26, 1957. Chicago, Ill., April 30 and May 1, 1957.

Reports

Distribution practices in the petroleum industry. (Interim report.) (H. Rept. No. 1157.)

1

Hearings

86TH CONGRESS (1959-60)

Small business problems in the petroleum industry. (Tires, batteries, and accessories.) Washington, D.C., December 9-11, 1959. Washington, D.C., April 27-29, 1960.

Reports

Small business problems in the petroleum industry. (Tires, batteries, and accessories.) (H. Rept. 2233.)

Hearings

87TH CONGRESS (1961-62)

Small business problems created by petroleum imports. Washington, D.C., November 20-24, 1961. Washington, D.C., November 27, 29, 1961. Operation and effect of consent decree in west coast oil case, Los Angeles, Calif., May 12, 1962.

Reports

Small business problems created by petroleum imports. (H. Rept. 2567.) (With additional views.)

Financing problems of small business (H. Rept. 2500.)

Operation and effect of consent decree in west coast oil case. (H. Rept. 2522.)

Hearings

88TH CONGRESS (1963-64)

Dual distribution and related vertical integration-petroleum industry. Washington, D.C., June 3-7, and August 12, 1963.

Mr. KLUCZYSNKI. A little over a year ago, the chairman of this subcommittee, Congressman James Roosevelt, Democrat, of California, called for an industrywide inquiry by the Federal Trade Commission. Several months ago, the Commission proceeded to hold such an inquiry. It is the feeling of the subcommittee that Chairman Dixon and the members of the Commission are to be commended for the broad vision which they have demonstrated in undertaking this historic study of petroleum distribution.

Because of the great importance of the petroleum industry to the American economy and particularly as a result of the small business involvement in the industry, the subcommittee is most anxious to learn what transpired during the inquiry, what conclusions were reached, and further to learn, without breaching propriety, what additional steps may be taken as a result of the inquiry.

The subcommittee is aware that in recent months a number of cases involving alleged violations of the statutes administered by the Commission have been dismissed. This, combined with the seminal nature of your recent inquiry naturally causes us to be unusually interested in what may be ahead.

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I am presiding today in the absence of Chairman James Roosevelt. Mr. Roosevelt is accompanying President Johnson at the funeral of a great American, Adlai E. Stevenson, the late U.S. Ambassador to the United Nations, former presidential nominee and former Governor of Illinois. Congressman Roosevelt is there as the representative of the Roosevelt family.

As a fellow Illinoisan, I join with those throughout my State, our Nation, and indeed the entire world in feeling a sharp and distinct loss in the passing of this distinguished American.

Present here today are my colleague, my very good friend, Mr. Moore, and, of course, the chairman of the full committee, Mr. Evins Mr. Gregg Potvin, counsel for the subcommittee, Mr. John

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