Carman-Roberts Company, Inc.

Text (OCR of the scan at left; may contain errors)

IN THE MATTER OF CARMAN-ROBERTS COMPANY, INC.

COMPLAINT AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. II OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 2118. Complaint, Aug. 11, 1938-ordel', Oct. 9, 1988 Consent order requiring respondent corporation, its officers, etc., in connection with the sale or offer in interstate commt•rce of alkalies, detergents or cleansers, to cease and desist from substituting or passing off trisodium phosphate as and for monosodium poosphnte, to purchasers or prospective purchasers thereof. · Mr. PGad B. Morehouse for the Commission. Frana&: Wright, of New York City, for respondent. Complaint Acting in the public interest, pursuant to the provisions of an act of Congress approved September 26, 1914, entitled "An act to create a Federal Trade Commission, to define its powers and duties, and for other purposes", the Federal Trade Commission charges that Carman-Roberts Co., Inc., a corporation, hereinafter referred to as respondent, has been using unfair methods of competition in inter- -state commerce in violation of the provisions of Section 5 of said act, and states its charges in that respect as follows: PARAGRAPH 1. Respondent, Carman-Roberts Co., Inc., is a corporation organized and existing under the laws of the State of Delaware, with its principal place of business in the city of Pittsburgh, State of Pennsylvania. It was originally incorporated in the year 1922 as "Laundry Supply Company", and adopted its present corporate name November 5, 1929. For more than two years last past it has been engaged in the sale, both at wholesale and retail, of alkalies, and detergents or cleaners under various trade names, mixed and compounded by it and consisting of such ingredients as caustic soda, soda ash, trisodium phosphate and sodium bicarbonate. When sold, respondent causes said products and compounds to be shipped in kegs or barrels from its principal place of business in Pennsylvania in, through and to various other States of the United States for delivery to the purchasers thereof. In the course and conduct of its business as aforesaid, respondent is and has been in direct and active competition with other individuals, partnerships, and corporations' engaged in the sale and .distribution in interstate Order 18 F.T.C.

commerce of like products and compounds. Respondent has never mixed, compounded, sold or distributed in interstate commerce a product known as monosodium phosphate.

PAR. 2. There are three forms of sodium phosphate, to wit: monosodium, disodium and trisodium, each form containing the number of atoms of soda indicated by the name thereof. Monosodium phosphate has an acid reaction; disodium phosphate is neutral; trisodium phosphate is alkaline. While monosodium phosphate is a more expensive product than trisodium phosphate-and is used as the active principle in sal hepatica and other medicinal and carbonated waters and also as a re-agent in baking powders-the difference between it and trisodium phosphate is not apparent to the eye.

PAR. 3. In the course and conduct of its business as aforesaid respondent has been following the practice of knowingly substituting and shipping trisodium phosphate to purchasers who have ordered monosodium phosphate and the said purchasers have unknowingly accepted and paid respondent for trisodium phosphate under the erroneous belief that respondent had complied with their order according to the terms thereof and had not "passed off" or substituted an entirely different and less expensive product therefor. PAR. 4. In the course and conduct of its business as aforesaid, by means of filling with trisodium phosphate, the orders of purchasers for monosodium phosphate, respondent has followed the practice of misrepresenting the quality, composition, effect and value of the commodity sold to the said purchasers, and they, believing and relying upon the truth of said representation have bought and paid respondent therefor.

PAR. 5. The acts and things above alleged to have been done, the substitution as aforesaid, and the false and misleading representation thereby made by respondent, are to the prejudice and injury of the public and to the competitors of respondent, have the tendency unfairly to divert trade from respondent's competitors to respondent, and constitute unfair methods of competition in commerce within the intent and meaning of Section 5 of an act of Congress entitled "An act to create a Federal Trade Commission, to define its powers and duties, and for other purposes", approved September 26, 1914. ORDER TO CEASE AND DESIST This proceeding having come on for final hearing by the Federal Trade Commission upon respondent's answer waiving all further procedure and consenting that the Commission may make, enter and serve upon it an order to cease and desist from the unfair methods CARMAN-ROBERTS CO., INC, 91 89 Order of competition charged in the complaint, and the Commission being fully advised in the premises:

It is now ordered, That the respondent Carman-Roberts Co., a corporation, and its officers, agents, representatives, and employe~s, in connection with the sale or offering for sale in interstate commerce, of alkalies, detergents or cleansers, cease and desist from substituting or passing off trisodium phosphate as and for monosodium phosphate to purchasers or prospective purchasers thereof. It is further ordered, That the respondent shall, within 60 days from the date of the service upon it of a copy of this order, file with the Commission a report in writing setting forth in detail the manner and form in which it has complied therewith. Syllabus 18F.T.C.