collecting on these shipments that they were sending out to various places" (T. 506). The Court admitted the corporate account into evidence, ruling that "Sovereign News is one of the named conspirators, and the amounts of monies involved certainly are relevant to this charge" (T. 511). Moreover, the Court admitted two accounts of Sturman (T. 513-14) and an account representing an employee profit-sharing plan because it showed that defendant Kamins held a "high position of trust in this so-called inner group" (T. 511, 544-45). These documents were admitted into evidence during the testimony of an officer of the Federal Deposit Insurance Corporation (T. 530-60).
Many other business records were obtained pursuant to court-authorized search warrants for the Sovereign News premises and were identified by the FBI agents and postal inspectors who conducted the searches. Included were a shipping ledger showing shipments of materials by name and quantity to specific destinations throughout the United States (T. 574-82); invoices naming certain magazines not in evidence but in the same series or by the same producer as others admitted into evidence from which the Court inferred that they were of the same general nature (T. 667-68, 682-84); numerous interoffice memoranda relating to the operation of Sovereign News and its relationship to other agencies (T. 607-08, 671-79, 689-90); even minutes of meetings of one of the bookstores (T. 749-41). One FBI agent who participated in two searches testified that his specific assignment was "to obtain accounts receivable for certain alleged subsidiaries of Sovereign News Company" (T. 700). He identified invoices for shipment of materials not in evidence to eight widely scattered locations including Majestic News in Pittsburgh (T. 706-09). Another agent testified that he seized certain magazines in a warehouse area containing hundreds of boxes of magazines (T. 764-65); he identified by title specific magazines he had seized that were not included in the substantive counts of the indictment (T. 767-77; See also T. 804-06, 855-59 979-84) and read from receiving forms the titles and quantities of similar magazines purchased by Sovereign News (T. 778-80).
Two other agents were in charge of seizing films. One stated that there were hundreds of reels of films on the premises and identified several of the films seized that were not involved in the transactions alleged in the indictment (T. 784-89). The other identified more films and business records showing films shipped to one of the alleged subsidiaries (T. 792-98). Still other agents testified about letters referring to the "combined Sturman agencies" (T. 820), accounts receivable ledgers for 1974 and 1975 enumerating nine separate bookstores including Majestic News (T. 915-17), and invoices for the same stores (T. 919-20).
Employees of Sovereign News were called to testify about the business' operations. It was established that Sturman ran the day-to-day operations and that Kamins was his assistant and general manager (T. 1015, 1076, 1114, 1368-69, 1404-05); that an enterprise called "Western Reserve Enterprises" occupied the same premises as Sovereign and was run by Sturman (T. 1067, 1403); that Sturman and Kamins directed the business of nine or ten bookstores in various locations in the United States, even reimbursing their legal fees in some cases (T. 1127-31, 1136-39, 1168, 1488); that Majestic News in Pittsburgh was one of these bookstores or "subsidiary companies" (T. 1131-36); that Sovereign employed salesmen who travelled throughout the United States selling sexually-oriented books and magazines (T. 1367-68, 1372-73, 1404). Employees of some bookstores not involved in the substantive counts were called and testified of the close connection of defendants Sturman and/or Kamins to the operations of the bookstores (T. 1444-1450, 1468-70, 1485, 1509, 1522-23.) There was also evidence of Sturman's financial interest in the various stores (T. 1568-78) including Majestic News (T. 1575). Finally, there was evidence that some of the bookstores controlled their own satellite stores (T. 1522).
Most comprehensive was the testimony of the government's final fact witness, the FBI agent in charge of the Sovereign News searches. He introduced letters and other documents showing that Sovereign worked closely with, and had complicated financial dealings with, domestic and foreign publishers and film-makers (T. 1809-20); some of these referred to materials that were neither charged in the indictment nor offered into evidence. He testified from documents seized that specific titles named in the indictment were shipped to several stores other than the Fort Worth store (T. 1854-1862), including Majestic News in Pittsburgh (T. 1859).
The defendants in the Cleveland case objected repeatedly to the nature and amount of evidence being offered, asserting that it went beyond the scope of the conspiracy charged in the indictment or that they could not ascertain the scope of the crime against which they must defend. (See, e.g., T. 102-23, 114-15, 446, 631, 634-35, 668, 681-83, 730-32, 748-49, 847, 889-90, 1252-53, 1270-71, 1287-88, 1423-26, 1445, 1510-11, 1567, 1759). The prosecution insisted that the evidence of the business structure of the Sovereign News Company, the sources of its materials and its sales outlets were all relevant to establish the scope of the conspiracy. See, e.g., T. 506, 733, 750, 1044, 1255, 1262-65, 1368-72, 1400-07, 1563-73, 1611-17, 1697, 1830-38; the extent of the evidence offered is best demonstrated at 1092, 1180-99, 1400-07, 1450, 1474, 1483-84, 1512-13, 1537-38, 1546, 1830-38, 2766-67, 2780). It made clear before the Court's ultimate ruling on admissibility of evidence of the conspiracy that it was not simply charging a conspiracy to ship the allegedly obscene materials to Fort Worth, Texas (T. 1697, 1611-12, 1617, 1736-39). The Court's rulings reflect the belief that the government had charged and was proving a large and ongoing conspiracy, headed by Sturman and Kamins, and involving the interstate shipment of similar materials throughout the United States (See, e.g., T. 668-69, 734, 746, 751, 754, 850-51, 1139, 1254, 1260-63, 1474, 1512-13, 1537, 1602-03, 1607-17).
The Court's ultimate ruling on what would be admissible to establish the conspiracy is significant:
Bearing all in mind the evidence shows through invoices and other business records of The Sovereign News Company that sexually explicit magazines and films are being purchased through the channels of interstate and foreign commerce and are being sold and mailed or shipped by common carrier to agency companies of Sovereign News located in principal cities of this country. These include Chicago, Buffalo, Boston, Philadelphia, Milwaukee, Pittsburgh, Baltimore and Denver. These agency companies, actually part of the Sovereign News operation, in turn resell these magazines and films to local retailers. . . . on the evidence now presented, it is determined that the principal, if not the exclusive business of Sovereign News, is to purchase and sell sexually explicit magazines and films, using the channels of interstate and foreign commerce.
Of course it is not necessary to establish an express agreement as American Tobacco Company indicates. From the very fact that the defendants are working together at Sovereign News, each performing a particular function, the necessary agreement or combination to accomplish the purchase, sale and distribution of sexually explicit magazines and films may be and is inferred.