V. Conclusion

Part: 
Four
Chapter: 
4
The pornography industry is characterized by a vertical distribution and a pyramid structure with a limited number of documented distributors within individual states. Documentation has been obtained to establish that pornographic material is initially supplied to national distributors who then sell to inter-state distributors who, in turn, distribute to intra-state distributors.

This limited number of pornography distributors may indicate the lucrative profits in the distributorship and production of pornographic material with the capability of dictating prices to independent bookstore owners. As an example of the high profits involved, the following is provided. A magazine can be produced for approximately fifty cents; wholesaled for five dollars and retailed for ten dollars. This computes to a 1900 per cent profit from production to consumer sale. In general, there is no competition or price wars which indicates price cqntrol. If a pornography distributor has control of a distribution network, owned companies that provided peep show projectors, built peep show booths for bookstores, collected the coins from peep show machines from bookstores owned by "straws" on corporate papers and was able to purchase projectors, films, books, etc., wholesale, the profit would even be greater. This profit making mechanism is currently in existence. An example is Bon Jay Sale's organizational profile which consists of s peep show coin collector business (Alpha Sentura Businesses Services), a carpentry business to build peep show booths (Woodwork, Inc.), a business to repair peep show projectors (Centre Vending Co.) and controls several bookstores in Maryland, Washington, D.C., and North Carolina.

Additionally, there are an unrelated number of individuals involved in the sale of pornographic material that are dependant upon inter-state distributors for supplies. This investigation revealed various methods used by pornography entrepreneurs to successfully operate their business and avoid detection by law enforcement. Some of these methods are:

  1. Names of corporate officers are used without the individual's knowledge or consent.
  2. Notary Publics are employed to notarize signatures without confrontation of signees.
  3. Rubber stamps of signatures are used without the authorizing individual's knowledge.
  4. Periodic changing of corporate names.
  5. Controllers do not appear on corporate papers but are major stock holders.
  6. Pornography entrepreneurs appear as corporate officers for a legitimate business which may have pornography distributors as subsidiaries.
  7. Companies owned or controlled by major distributors deliver pornographic material automatically to their subsidiaries.