Senator Hennings. You have indicated by what—I hope you will forgive me if I suggest—seems to be a bit of self-righteousness, that your motivation was bringing "enjoyment"—is that the word you used?
Mr. Gaines. Yes, sir.
Senator Hennings. To the readers of these publications. You do nel mean to disassociate ihe profit motive entirely, do you?
Mr. Gaines. Certainly not.
Senator Hennings. Without asking you to delineate as between the two, we might say there is x combi nation of both, is there not ¢
Mr. Gaines. No question about it.
Senator Hennings. Is there anything else that you would like to say to us with respect to your business | and the maiters that we are inquiring into here?
Mr. Gaines. I don't believe so.
Senator Kefauver. I would like to ask 1 or 2 questions,
The Chairman. You may proceed, Senator,
Senator Kefauver. Mr. Gaines, I had heard that your father really did not have horror and crime comics. When he had the business he printed things that were really funny, and stories of the Bible, but you are the one that started out this crime and horror business.
Mr. Gaines. I did not start crime; I started horror.
Senator Kefauver. Who started crime?
Mr. Gaines. I really don't know.
Senator Kefauver. Anyway, you are the one who, after you took over your father's business in 1947, you started this sort of thing here. This is the May edition of Horror.
Mr. Gaines. I started what we call our new-trend magazines in 1950.
Senator Kefauver. How many of these things do you sell a month, Mr. Gaines?
Mr. Gaines. It varies. We have an advertising guaranty of 1,500,000 a month for our entire group.
Senator Kefauver. That is for all the Entertaining Comics, of which Shock is one of them? How do you distribute these, Mr. Gaines?
Mr. Gaines. I have a national distributor. There are roughly 10 individual national distributors which handle roughly half of the magazines. The other half is handled by American News.
The 1 of the 10 that I have is Leader News Co.
Senator Kefauver. That is a distributer. Then do they sell to wholesalers?
Mr. Gaines. They in turn sell to seven-hundred-odd wholesalers around the country.
Senator Kefauver. The wholesalers then pass it out to the retailers, the drug stores, and newsstands; is that right?
Mr. Gaines. That is right.
Senator Kefauver. They are all sold on a consignment basis?
Mr. Gaines. They are all returnable.
Senator Kefauver. S0 your magazines along with what other wholesaler may be handling, are taken in a package to the retailer and left there and he is supposed to put them on his stand and sell them?
Mr. Gaines. Yes.
Senator Kefauver. And if he does not sell them, or does not display them, then he is liable to get another retailer?
