Senator Kefauver. I thought you said they had a second-class permit?
Mr. Clendenen. Yes, sir; which means they had a ruling at the time the permit was granted.
In other words, they were admitted to the mails at the time the permit was granted. That does not mean they grant a new permit, the next month, when new materials are turned out.
Senator Kefauver. Can you tell us whether these things do move through the mails, or whether they do not?
Mr. Clendenen. Primarily they do not.
Senator Kefauver. I mean are some shipped through the mails?
Mr. Clendenen. There are a few companies, for example, that do a subseription business and in that instance, for example, individual copies would move through the mails.
Senator Kefauver. Have you ascertained from the Post Office inspectors or the head of that Department whether these are prohibited or whether the statute is not broad enough to cover them?
Mr. Clendenen. Yes, sir; I inquired as to that, and their reaction was to the effect that if some of these materials did move through the mails the Post Office Department might question them.
Now, actually, the ones that did come to their attention which did go through the mails they had found no basis for questioning, but they were aware that not all comics by any means are all crime comics.
Senator Kefauver. I know of no one saying that all crime comics be ruled out, but if they are obscene and indecent, there might be a ruling.
Now, counsel, are you going to bring out the matter of why the Atlas Corp. formed 24 corporations to carry on its business?
Mr. Beaser. We will have the business manager of the Atlas Corp. here.
Senator Kefauver. Where is the center of this industry, this horror and crime-comic industry?
Mr. Clendenen. In New York City. Actually, that holds true for the entire comic-book industry.
Senator Kefauver. I understood there was one reason why we are having the hearing here. Do you mean New York City is where the material is prepared or shipped from?
Mr. Clendenen. New York City is where the publishers are located and where the material is prepared.
Now, actually, the printing might be done in various places. That is, a publisher gets a printer to take on a job in Meriden, Conn., or npstate New York, or some other location. He sends the material after it has been prepared to the printer, the printer prints it, and then it is shipped out directly from the printer without being returned to the publisher.
Tt is shipped directly from the printer to the various distributors over the country who in turn distribute it to the wholesalers.
Senator Kefauver. In connection with the distribution you said that Atlas had its own distributing system?
Mr. Clendenen. Yes, sir.
Senator Kefauver. Do you mean that is the wholesale, retail, or what do you refer to?
Mr. Clendenen. A distributor is a company which supplies the wholesaler und then the wholesalers supply the retailers.
