Wolf Gurzizky

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IN THE MATI'ER OF WOLF GURZIZKY, DOING BUSINESS UNDER THE TRADE NAME AND STYLE OF WHITE STAR HAT COMPANY COMPLAINT AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. II OF AN ACT OF CONGRESS APPROVED SEPT. 26 7 1914 Docket 201,.5. Complaint, June 6, 1IJ3Z-Order, Jan. 17, 1931, Consent order requiring respondent, his agents, etc., in connection with the sale or offer of men's hats in interstate commerce and in the District of Columbia, to cease nnd desist from selling or offering for sale men's old, worn, used, and discarded fur felt hats, which have been cleaned and fitted with new ribbons, sweatbands, and linings, unless and until U1ere Is stamped upon, affixed or attached to said hats In a conspicuous place so as to be easily and readily seen, word or words clearly Indicating that said hats are not new hats but are used and worn hats which have been cleaned and made-over (e. g., " second-hand ", "used ", or " made-over "). Mr. G. Ed. RowlaiJUl for the Commission.

Kreindler, Warshaw&: Baron, 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 'Volf Gurzizky, doing business under the trade name and style of White Star Hat Co., hereinafter referred to as respondent, has been and now is using unfair methods of competition in interstate commerce in violation of the provisions of Section 5 of said act, and states its charges in that respect as follows:

PARAGRAPH 1. Respondent, Wolf Gurzizky, is an individual doing business under the trade name and style of White Star Hat Co., having his office and principal place of business at 222 Greene Street, in the City of New York, State of New York, where he has been for more than one year last past engaged in the business of selling and distributing men's felt hats of the character and in the manner hereinafter mentioned, to jobbers and wholesale dealers located at points in the various States of the United States and the District of Columbia. Respondent causes said hats when so sold, to be transported from the City of New York, State of New York, through and into other States of the United States and the District of Columbia, to the said jobbers and wholesale dealers thereof at their respective WHITE STAB HAT CO, 141 140 Complaint points of location. In the course and conduct of his said business as aforesaid, respondent is in direct and active competition with various other persons, partnerships, firms, and corporations engaged in the manufacture, sale, and distribution of men's felt hats in interstate commerce among the various States of the United States and the District of Columbia.

PAR. 2. In the course and conduct of his aforesaid business respondent buys second-hand, old, used, and discarded men's felt hats, which hats are in some instances sold by respondent to jobbers and wholesale dealers in the same condition they were in when bought, and in other cases are renovated and sold by respondent to said jobbers and wholesale dealers. All hats which are renovated by respondent are first sent to a dry-cleaning establishment, where they are thoroughly dry-cleaned and returned to respondent. Said hats are then steamed, ironed and shaped by respondent at his place of business. The poorer grade of hats are sold by respondent to his customers without being further treated. The higher quality hats are relined and fitted with new ribbon bands, sweatLanus and size labels, and then sold by respondent to jobbers and wholesale dealers, who resell them to retail dealers. Said new relinings awl sweatbands are purchased by respondent from the manufacturers thereof, and bear various trade names, designs, devices, and descriptive wording.

PAR. 3. The aforesaid old, used, discarded, and second-hand hats, after being made over by respondent, and fitted with new trimmings, as described in paragraph 2 herein, have the appearance of new hats which have never been worn, and said hats are sold by respondent to jobbers and wholesale dealers without anything on or about said hats to indicate that such hats are in fact second-hand hats which have Leen reno\·ated and made over by said respondent. Said hats are rt>sold by said jobLcrs and wholesale dealers to retail dealers, who 1resell them to the public without disclosing the fact that said hats have been previously worn, and then renovated and made over, and under such circumstances as to indicate that they are new hats. The cost to respondent of obtaining, renovating, and making over said hats as aforesaid is much less than the cost to hat manufacturers of manufacturing new hats of similar quality, and respondent is thereby able to sell said hats to jobbers and wholesalers at substantially lower prices than manufacturers of hats can sell hats of the same or similar quality to jobbers and wholesale dealers. PAR. 4. It is the common belief and understanding among wholesale and retail dealers, and the purchasing public, that hats having 142 "FEDERAL TRADE COMMISSION DECISIONS Order 18F.T.C.

the appearance of new and unused hats, as do hat distributed by respondent, and sold by respondent and those dealing in men's hats without anytrling on or about said hats to indicate that such is not so, are in fact hats which are new and unused, and have never been worn or used by anyone previously; and said wholesale and retail dealers, and the purchasing public, when buying hats having the appearance of new and unused hats, and without anything on or about said hats to the contrary, are entitled to receive new and unused hats, and not second-hand, old, used, and discarded hats which have been renovated and made over. The acts and practices of respondent as hereinabove set forth, are calculated to, and do, have the capacity and tendency of inducing many wholesale and retail dealers, anll many of the purchasing public, to purchase the said second-hand, old, used, and discarded hats which have been renovated and made over by respondent, in the mistaken belief that they are purchasing new and unused hats, and tend to and do unfairly divert trade to respondent from concerns engaged in the manufacture and <iale of hats in interstate commerce throughout the various States of the United States and the District of Columbia. PAR. 5. The above alleged acts and practices of respondent are each and all of them to the prejudice of the public and respondent's competitors, and constitute unfair methods of competition in interstate commerce within the intent and meaning of Section 5 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."

ORDER TO CEASE AND DESIST J>ursuant 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 on the 6th day of June, 1932', issued its complaint against Wolf Gurzizky, doing business under the trade name and style of White Star Hat Co., respondent herein, in which complaint it is alleged that respondent has been and is using unfair methods of competition in interstate commerce in violation of the provisions of Section 5 of said act.

On September 12·, 1933, respondent filed his answer to said complaint. On January 3, 1934, said respondent fied a second answer herein, wherein he stated that he did not desire to contest the proceeding, and consents that the Federal Trade Commission may make, enter, and serve upon him an order to cease and desist from the WHITE STAR HAT CO. 143 140 Order violations of law alleged in the complaint, in accordance with the provisions of Section 2, Rule III, of the Rules of Practice of the Commission, and the Commission having accepted the second answer in lieu of the former one theretofore filed, and being fully advised in the premises, It is now ordered, That the respondent, Wolf Gurzizky, doing business under the trade name and style of White Star Hat Co., his agents, representatives, servants, and employees, in connection with the sale or offering for sale of men's hats in commerce among the several States of the United States, and in the District of Columbia, cease and desist from :

Selling or offering for sale men's old, worn, used, and discarded fur felt hats, which have been cleaned and fitted with new ribbons, ~weatbands, and linings, unless and until there is stamped upon, affixed or attached to said hats in a conspicuous place so as to be easily and readily seen, word or words clearly indicating that said hats are not new hats but are used and worn hats which have been cleaned and made-over (e.g., "second-hand", "used", or "made-over"). It is further ordered, That respondent shall within 60 days from the date of the service upon him of the order herein, file with the Commission a report in writing setting forth in detail the manner and form in which this order has been complied with and conformed to.

Syllabus 18F.T.C.