National Association of Ladies' Handbag Manufacturers

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IN THE MATTER OF NATIONAL ASSOCIATION OF LADIES' HANDBAG MANU- FACTURERS, ITS OFFICERS, EXECUTIVE COMMITTEE, AND MEMBERS COMPLAINT AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. II OF AN ACT OF CONGRESS APPROVED SEPT. 26 1 1914 Docket 2226. Complain.t, .Aug. 23, 1934-order, Feb. 20, 1935 Consent order requiring members of respondent association, their respective officers, agents, servants and employees, forthwith to cease and desist from- ( a) Carrying out a certain agreement, combination, understanding and conspiracy by and through respondent association, its officers, agents and executive committee, by which they, fixed and maintained, (1) uniform prices to be exacted by them from purchasers in interstate commerce of their ladles imitation leather handbags, and (2) uniform prices to !Je exacted by retailers of handbags purchased by said retailers in interstate commerce from them, or from any other person or concern, and resold to the purchasing public; or (b) Entering into and carrying out any other agreement, combination, understanding and conspiracy among themselves or with any other manufacturer of retail handbags to (1) fix or maintain uniform prices for said articles sold by them or any other person or concern in interstate commerce, or (2) fix or maintain uniform prices to be exacted by retailers of such articles purchased by said retailers in interstate commerce from them or from any other person or concern, and resold by such retailers to the purchasing public; and Ordered further, That respondent association and respondent officers, agents and executive committee, and each of them, forthwith cease and desist from assisting respondent members in entet·lng Into and carrying out aforesaid agreements, combinations, understandings and conspiracies and from being the means or instrumentality by and through which such, or any similar agreements, combinations, understandings, and conspiracies are entered into.

Mr. Edward L. Smith for the Commission .

. Schlesinger & Krinsky, of New York City, for National Association of Ladies' Handbag Manufacturers and various officers and members thereof.

Mr. Archibald Palmer, of New York City, for Morris White Manufacturing Co., Inc., ancl Style Craft Leather Goods Co. Mr. Charles W. Newmarlc, of New York City, for Paragon Bag Co., Inc.

Mr. MaJJwell E. Verlin, of Philadelphia, Pa., for Ingber Co. Mr. Bernard I. Levine, of Boston, Mass., and Mr. Julian A. Berghof!en, of New York City, for Geffen-Weene Bag Co. Complaint 20F.T.O.

Mr. David Manc01Jitz, of Boston, Mass., for Elite Leather Goods Co.

Mr. Ralph J. Gutman, of New York City, for Uneeda Leather Goods Supply Mfg. Co., Inc.

Mr. Gabriel Kirzenba:um, of New Brunswick, N. J., for Petite Handbag Co.

Complaint 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", having reason to believe that National Association of Ladies' Handbag Manufacturers, its officers as follows: Abraham C. Fisher, director and general manager; Ira Rosenzweig, president; Morris Aarenau, vice president; Henry Meyers, treasurer; Ethel Nagel, secretary; its executive committee as follows: Jack Margolin, Jerry Goldberg, David A. Ingerber, Aaron Landis, Murray Resnick, George Meyers, Joseph Rudolph, Hyman Burstein, Samuel R. Goldsmith, Jimmy Goldberg, J os. Mali no; and its members as follows: Aarenau & Wolf, Inc., H. Margolin & Co., Morrie White Manufacturing Co.,. Inc., Style Craft Leather Goods Co., Beacon Leather Goods, Inc., Paragon Bag Co., Inc., Nu Mode Bag Co., Ingber Co., M. J. Fox, trading as M. J. Fox & Co., International Leather Goods Co., Gitlin Bros. & Rush Co., Geffen-Weene Bag Co., Elite Leather Goods Co., Crescent Leather Goods Co., Max Brill & Sons, Inc., Sol Mutterperl, Inc., Hudson Leather Goods Co., Inc., The Meeker Company, Uneeda Leather Goods Supply Mfg. Co., Inc.,1 Licht & Kaplan, The Phoenix Leather Goods Co., Inc., Royal Leather Goods, Christo J. Scumniotalen, trading as Phoenix Novelty Co., Petite Handbag Co., Hamilton Leather Goods Co., Goldberg Bros. Handbag Co., Katz Leather Goods Co., R. & K. Leather Goods Co., Paragon Novelty Bag Co., George Meyers, Samuel Meyers and Henry Meyers, trading as Meyers Manufacturing Co., Resnick Bros. Ladies' Handbags, Springfield Ladies' Handbag Company, Harlic Bag Co., Strand Leather Goods Co., Inc., Classy Leather 1 The Commission on October :;, 1934, dismissed the complaint as to this respondent by tbe following order :

Uneeda Leather Goods Supply Manufacturing Company, Inc., one of the respondents herein, having represented to this Commission that It was Improperly named as one of the respondents herein, and having, for the reason aforesaid, moved tbls Commission that this proceeding Is discontinued as to said Uneeda Leather Goods Supply Manufacturing Company, Inc., and the Commission having duly considered the same and being fully advised In the premises :

Now, therefore, it lB hereby ordered, That the said motion be, and the same Is hereby, granted, and that the complaint In this proceeding to said Uneeda Leather Goods Supply Manufacturing Company, Inc., be, and the same Is hereby, dismissed. NATIONAL ASS'N OF LADIES' HANDBAG MANUFACTURERS ET AL. 163 161 Complaint Goods, Corp., Charles Bursrein & Bros., Inc., Landis Leather Goods, Inc., Joseph Forst, trading as Forst Co., Goldsmith Bros. Manufacturing Co., trading as Lucky Styles Co., Goldberg & Seltzer, Inc., Ryan Cushing Co., Mrs. Ruel Pierce, trading as Dyer Manufacturing Co., Julius Herz and Jack M. Kory, partners, trading as Herz & Kory and Capital Leather Goods Co., respondents herein, have been and are using unfair methods of competition in commerce as "commerce" is defined in said act and it appearing to said Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint, stating its charges in that respect as follows :

P ARAGRAI'H 1. Respondent, National Association of J... adies' Handbag Manufacturers, is a voluntary unincorporated trade association, organized in or about September 1933. It is hereinafter designated as respondent association. Its officers are, and continuously since its organization have been, the following, who are hereinafter referred to as respondent officers: Abraham C. Fisher, director and general manager; Ira Rosenzweig, president; Morris Aarenau, vice president; Henry Meyers, treasurer; Ethel Nagel, secretary. The executive commitree of said respondent association continuously since its organization, has been the following respondents, who will be hereinafter referred to as respondent executive committee: Jack Margolin, Jerry Goldberg, David A. Ingerber, Aaron Landis, Murray Resnick, George Meyers, Joseph Rudolph, Hyman Burstein, Samuel R. Goldsmith, Jimmy Goldberg, and J os. Malino.

The members of said respondent association are now, and since its organization have been, the following, who are hereinafter referred to as respondent members: Aarenau & Wolf, Inc., H. Margolin & Co.; Morris White Manufacturing Co., Inc.; Style Craft Leather Goods Co. ; Beacon Leather Goods, Inc. ; Paragon Bag Co., Inc. ; N u Mode Bag Co.; Ingber Co.; M. J. Fox, trading as M. J. Fox & Co.; International Leather Goods Co.; Gitlin Bros. & Rush Co.; Geffen-Weene Bag Co.; Elite Leather Goods Co.; Crescent Leather Goods Co.; Max Brill & Sons, Inc.; Sol Mutterperl, Inc.; Hudson Leather Goods Co., Inc.; The Meeker Company, Uneeda Leather Goods Supply Mfg. Co., Inc.; Licht & Kaplan; The Phoenix Leather Goods Co., Inc.; Royal Leather Goods; Christo J. Scumniotalen, trading as Phoenix Novelty Co.; Petite Handbag Co.; Hamilton Leather Goods Co.; Goldberg Bros. Handbag Co.; Katz Leather Goods Co.; R. & K. Leather Goods Co.; Paragon Novelty Bag Co.; George Meyers, Samuel Meyers and Henry Meyers, trading as Meyers Manufacuring Co.; Resnick Bros. Ladies' Handbags; Springfield Ladies' Handbag Com- Complaint 20F.T.O.

pany; Harlic Bag Co.; Strand Leather Goods Co., Inc.; Classy Leather Goods, Corp., Charles Burstein & Bros., Inc.; Landis Leather Goods, Inc.; Joseph Forst, trading as Forst Co.; Goldsmith Bros. Manufacturing Co., trading as Lucky Styles Co.; Goldberg & Seltzer, Inc.; Ryan Cushing Co.; Mrs. Ruel Pierce, trading as Dyer Manufacturing Co.; Julius Herz and Jack M. Kory, partners, trading as Herz & Kory; Capital Leather Goods Co.

PAR. 2. Of the said respondent members, the following are corporations respectively organized, existing, and doing business under and by virtue of the laws of the following named States with their respective principal office and place of business in the following designated cities:

Location of principal Name or corpora tlon State of Incorporation office Aarenau & Wol~ Ino New York New York, N.Y. H. Mar~olin & co New York . Fitchburg, Mass. Morris White Mfg. Corp., Inc _______________ _ New York ____________________ New York, N.Y. Style Craft Leather Goods Co. (subsidiary of Connecticut----------------·--- Bridgeport, Conn. Morris White Mfg. Co., Inc.).

Beacon Leather Goods, Inc.---·-------------- New York ___________________ _ Bridgeport, Conn. Par,.gon Bag Co., Inc------------------------- Pennsylvania ________________ _ Schwenksville, Pa. Nu Mode Bag Co·--·------------------------- Connecticut------------------- South Norwalk, Conn. Ingber Co._ •• ------ ________________ ---------- Pennsylvania._--------------- Philadelphia, Pa. M.J. Fox, trading as M. J. Fox & Co ________ -------------------------------- Baltimore, Md.International Leather Goods Co ______________ Pennsylvania ________________ _ Philadelphia, Pa. Gitlin Bros. & Rush-------------------------- Pennsylvania ________________ _ Philadelphia, Pa. Getren-Woene Bag Co.----------------------- Massachusott~. _-------------- Boston, 11Iass. Elite Leather Goods Co·---------------------- Ml\ssacbusetts ______________ __ Boston, Mass. Crescent Leather Goods CO------------------- Rhode Island ________________ _ Providence. R. I. Max Brill & Sons, Inc·----------------------- New York ___________________ _ Pittsfield, Mass. Sol Mutterperl, Inc·-------------------------- New York ___________________ _ New Bedror_dJ Mass. Hudson Leather Goods Co., Inc ______________ New York-------------------- New York, .N.Y. The Meeker Co·------------------------------ Missouri. ____________________ _ Joplin, Mo. Uneeda Leather Goods Supply Mfg. Co., New York ___________________ _ New York, N.Y. Inc.

TheLlc!JtPhoenix& KaplanLeat!Jer --------------------------Goods Co., Inc _________ NewNew YorkYork ••____________________----------------- Newburgh,New York, N.Y.N.Y. Royal LeBtber Goods.------------------------ New York ____________________ Newark, N.J. Christo J. Soumnlotalen, trading ns Phoenix -------------------------------- Haverblll, Mass. Novelty Co. Petite Han<lbag Co .• ------------------------- New Jersey------------------- New Brunswick, N.I.Hamilton Leather Goods Co__________________ Pennsylvania ________________ _ Boyertown, Pa. Goldberg Bros. Handbag Co---------------·-- New York-------------------- New York, N.Y. Katz Leather Goods CO----------------------- New York ---------------- Nyack, N.Y. n.Para~on& K. NoveltyLeather GoodsBag Coco_____________________ --.------------- NewNew YorkYork·------------------- ·---------------- NewNew York,York, N.Y.N.Y. Resnlck Bros. Ladles' Handbags ______________ New York ___________________ _ New York, N.Y. Harlio Bag Co ___ ----------------------------- Connecticut __________________ _ New York, N.Y. Strand Leather Goods Co., Inc _______________ New York ___________________ _ New York, N.Y. ClBSsy Leather Goods Corp------------------- New York-------------------- New York, N.Y. Charles Burstein & Bros., Inc ------------ New York ___________________ _ New York, N.Y.Landis Leather Goods, Inc ___________________ New York ___________________ _ Perth Amboy, N.J. Goldsmith Dros. Manufacturing Co., trading New York ---------------- New York, N.Y. 88 Lucky Styles Co.

Goldberg & Seltzer, Inc -------------------- New York ____________________ Poughkeepsie, N.Y. Ryan Cushing Co ----------·------------- Massachusetts Boston, Mass. Capital Leather Goods CO-------------------- New York ---------------- New York, N.Y. PAR. 3. Respondent, Christo J. Scumniotalen, is an individual doing business at Haverhill, Mass., under the trade name Phoenix Novelty Co. Respondents George Meyers, Henry Meyers and Samuel Meyers are copartners trading in New York City, State of New York, as Meyers Manufacturing Co. Respondent M. J. Fox is an NATIONAL ASS'N OF LADIES' HANDBAG MANUFACTURERS ET AL. 165 161 Complaint individual doing business in Baltimore, in the State of Maryland, as M. J. Fox & Co. Respondent Mrs. Ruel Pierce, is an individual engaged in business at Lewiston, Me., under the trade name. Dyer Manufacturing Co. Respondents Julius Herz and Jack 1\f. Kory are copartners trading in New York City, State of New York, as IIerz & Kory. . PAR. 4. The aforesaid respondent members named in paragraphs 1, 2, and 3 hereof are now and for more than two years last past have been engaged in the business of manufacturing at their respective places of business ladies' imitation leather handbags generally designated as "one dollar handbags" and in the sale thereof throughout the various States of the United States and in the District of Columbia; in the course and conduct of their businesses, all the said respondent members for more than two years last past have caused and still cause such handbags when sold by them, to be trans- Ported in interstate commerce from their respective places of business to, into and through various States of the United States other than the States in which they respectively have their factories and Places of business, to the purchasers thereof in such other States to whom such handbags are and have been sold and there is now and has been for more than two years last past a constant current of trade and commerce in such handbags by the said respondent :members. Substantially all of such purchasers are retailers, who resell such handbags to the purchasing public. The amount of imitation leather handbags known, as hereinbefore stated as "one dollar h~ndbags" manufactured by the said respondent members now constttutes and for more than two years last past has constituted at least 90 percent of all of that class of handbags sold in the United States.

PAR. 5. In May 1934 or thereabouts, the said respondent members ~named in paragraphs 1, 2, and 3 hereof for the purpose of eliminatlng price competition among themselves, entered into, have since carried out, and are still carrying out an agreement, combination, Understanding, and conspiracy among themselves entered into through and by means of said respondent, National Association of L~dies' Handbag Manufacturers, its aforesaid officers and its aforesaid executive committee to fix and maintain, and by which they have fixed and maintained and still fix and maintain uniform prices to be exacted by them from their purchasers of imitation leather handbags known as "one dollar handbags" and· to fix and maintain, nnd by which they have fixed and maintained and still fix and nlaintain ·uniform prices to be exacted by their customers in the resale by such customers of such imitation handbags purchased by 101467-37-vol 20-13 166 FEDERAL TRADE COl\Il\IISSION DECISIONS Ordet· 2DF.T.O.

such customers from the said respondent members. Pursuant to and for the purpose of carrying out the said agreement, combination, understanding, and conspiracy entered into by the said respondent members among themselves and through the aforesaid N ationa! Association of Ladies' Handbag Manufacturers, its aforesaid officers and aforesaid executive committee, the said respondent members among other things have done the following: (a) By agreement among themselves have fixed and maintained and still fix and maintain uniform prices for imitation leather handbugs sold by them and by each of them;

(b) By agreement among themselves have fixed and maintained and still fix and maintain uniform prices to be exacted by retailers of such handbags purchased by them from the said respondent members and resold by such retailers to the purchasing public. PAR. 6. The aforesaid alleged acts and practices of all the said respondents are all to the prejudice of the public; have a dangerous tendency to and have actually hindered and prevented price competition in the sale between and among the various States of the United States and in the District of Columbia of imitation leather handbags known as "one dollar handbags" and price competition in the resale thereof in the United States of substantially all of the imitation leather ("one dollar") handbags made in the United States and sold therein; have increased the prices paid by retailers of "one dollar handbags" and the prices paid by the purchasing public for the same; have unreasonably restrained interstate commerce in imitation leather ("one dollar") handbags and constitute unfair methods of competition in interstate 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 Respondents herein, National Association of Ladies' Handbag Manufacturers (hereinafter referred to as respondent Association) its officers and agents (hereinafter referred to as respondent officers and agents) as follows:

Abraham C. Fisher, director and general manager; Ira Rosenzweig, president; Morris Aarenau, vice president; Henry Meyers, treasurer; and Ethel Nagel, secretary.

The following members of the executive committee of respondent association (hereinafter referred to as respondent executive committee):

l:{ATIONAL ASS'N OF LADIES' HANDBAG MANUFACTURERS ET AL. 167 161 Order Jack Margolin, Jerry Goldberg, Aaron Landis, George Meyers, Joseph Rudolph, Hyman Burstein, Samuel R. Goldsmith, Jimmy Goldberg and Joseph Malino; and its following members (hereinafter referred to as respondent members) : Aarenau & Wolf, Inc., H. Margolin & Co., Beacon Leather Goods, Inc., N u Mode Bag Co., Crescent Leather Goods Co., Max Brill & Sons, Inc., Royal Leather Goods, Goldberg Bros Handbag Co., R. & K. Leather Goods Co., Paragon Novelty Bag Co., George Meyers, Samuel Meyers and Henry Meyers, trading as Meyers Manufacturing Co., Harlic Bag Co., . Strand Leather Goods Co., Inc., Classy ~other Goods Corp., Charles Burstein & Bro. Inc., Landis Leather Goods Inc., Goldsmith Bros. Manufacturing Co., trading as Lucky Styles Co., Goldberg & Seltzer Inc., Julius Herz and Jack M. Kory, Partners trading as Herz & Kory, and Capitol Leather Goods Co., having filed their answer to the complaint in this proceeding and having subsequently filed with this Commission their motion, that they be permitted to withdraw their said answer and that they be Permitted to file in lieu thereof, as a substituted answer, the draft of Proposed substituted answer annexed to the said motion; and the Commission having duly considered the said motion, It is hereby ordered, That the said motion be and the same is h~reby granted; that the said answer be and the same is hereby "'1thdrawn; and that the said proposed substituted answer be, and the same is hereby filed in lieu of the said answer so withdrawn. And the said respondents, in and by their said substituted answer, ha.ve waived hearing on the charges set forth in the complaint in tlus proceeding, and having stated in their said substituted answer th~t they do not contest the proceeding, and having consented in the sa~d substituted answer that the Commission, without trial, without evidence, and without findings as to the facts or other intervening Proceedings, might make, enter, issue, and serve upon the said respondents, an order to cease and desist from the methods of competition charged in the complaint; and the Commission, being fully advised in the premises- It is hereby further ordered, That respondent members, their respective officers, agents, servants and employees forthwith cease and desist:

1. From carrying out an agreement, combination, understanding, and conspiracy entered into among themselves in May 1934 or thereabouts, by and through respondent association, respondent officers and agents and respondent executive committee, to fix and lllaintain, and by which they have fixed and maintained uniform Order 20F.T.C.

prices to be exacted by them from purchasers from them in interstate commerce of imitation ladies handbags. , 2. From carrying out an agreement, combination, understanding, and conspiracy among themselves, entered into in May 1934 or thereabouts by and through said respondent association, respondent officers and agents, and respondent executive committee, to fix and maintain uniform prices to be exacted by retailers of handbags purchased by such retailers in interstate commerce from the said respondents, or from any of them or from any other person, firm, partnership or corporation and resold by such retailers to the purchasing public.

3. From entering into and/or carrying out any other agreement, combination, understanding, and conspiracy among themselves or by any of them with any other of them; or wjth any other manufacturer of ladies handbags to fix and/or maintain uniform prices for imitation leather handbags sold by them or by any of them, or by any other person, firm, partnership or corporation in interstate commerce.

4. From entering into andjor carrying out any other agreement, combination, understanding, and conspiracy among themselves or by any of them with any other of them, ~r with any other person, firm, partnership, or corporation to fix andjor maintain uniform prices to be exacted by retailers of imitation leather handbags purchased by such retailers in interstate commerce from the said respondents, or from any of them, or from any other person, firm, partnership, and/or corporation, and resold by such retailers to the purchasing public.

And it is hereby further ordered, That respondent association, respondent officers and agents and respondent executive committee and each of them, forthwith cease and desist from assisting the aforesaid respondent members in entering into and carrying out the agreements, combinati9ns, understandings, and conspiracies from which said respondent members are hereby ordered to cease and desist, and from being the means or instrumentality by and through which such, or any similar agreements, combinations, understandings and conspiracies are entered into. . And it is hereby fu?·tlier ordered, That the said respondent association, the said respondent officers and agents, the said respondent executive committee, and the said respondent members, shall within 30 days from the date of service upon it of this order, file with this Commission a report in writing setting forth the manner in which they shall have complied with this order. NATIONAL ASS'N OF LADIES' HANDBAG MANUFACTURERS ET AL. 169 161 Order ORDER DISl\IISSING COMPLAINT AS TO CERTAIN RESPONDENTS This matter coming on to be heard on the complaint of the Commission, the answer of the respondents hereinafter named; and this Commission having this day entered and served its order to cease and desist upon all the other respondents in this proceeding, compliance with which said order to cease and desist will in the opinion of this Commission terminate and dissolve the conspiracies, combi- ~ations, agreements, and understandings described in the complaint In this proceeding, and will prevent any such conspiracy, understanding, agreement or understanding in the future; and the Com- Inission being fully advised in the premises- Now', therefore, it i8 hereby ordered, That the complaint in this Proceeding be, and the same is hereby, dismissed as to the following named respondents :

David A. Ingerber, Uneeda Leather Goods Supply Mfg. Co., Murray Resnick, Inc., Morris White Manufacturing Co., Inc., Licht & Kaplan, Style Craft Leather Goods Co., The Phoenix Leather Gooos Co., Inc., Paragon Bag Co., Inc., Christo J. Scumniotalen, trading as Ingber Co., Phoenix Novelty Co., 1\f. J. Fox, trading as M. J. Fox & Co., Petite Handbag Co., Internuttonal Leather Goods Co., Hamilton Leather Goods Co., Gitlin Bros. & Rush Co., Katz Leather Goods Co., Geffen-Weene Bag Co., Resnick Bros. Ladies' Handbag, Elite Leather Goods Co., Springfield Ladles' Handbag Company, Sol Mutterperl, Inc., Joseph Forst, trading as Forst Co., IInuson Leather Good::~ Co., Inc., Ryan Cushing Co., 'lhe 1\Ieeker Company, Mrs. Ruel Pierce, trading as Dyer 1\Ian· ufacturlng Co.

Complaint 20 F.T.C.