Fort Clark Distilleries, Inc

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IN THE MATTER OF FORT CLARK DISTILLERIES, INC.

CO::IIPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. ti OF AN Att OF CONGRESS APPROVED SEPT. 26, 1914 Docket 2949. Complaint, Oct. 16, 1936-Decision, Dec. 21, 1936 Where a corporation engage<l, as rectifier and wholesaler of distilled spirits, in purchasing and bottling whiskies, gins, and other spirituous beverages, Including product by it branded as "Presciption Whiskey," and In making gin with a still which it used therefor by redistillation of purchased alcolloi, not produced by it, over juniper berries and other aromatics, and in selling its aforesaid nrious products in trade and commerce among the various States and in the District of Columbia, in substantial competition with those engaged In manufacture by true distillation of whiskies, gins, and other sprituous beverages from mash, wort, or wash, and in sale thereof as aforesaid, and with those enkaged in purchasing, rectifying, blending, and bottling such various beverages and in similarly selllng same, and including among said competitors those who, as manufacturers and distillers from mash, wort, or wash ot whiskies, gins, and other spirituous beverages sold by them, truthfully use words "distlllery," "distilleries," "clistlllers," or "distilling" as a part of their corporate or trade names and on their stationery, advertising, and labels of the bottles in which they sell and ship such products, and those who, engaged in purchasing, rectifying, blending, and bottling such various products, do not use aforesaid words as above set forth, and also with those who do not misrepresent the strength, quality, or purity of their whiskies nor that such products are ~pecially produced tor medicinal use- (a) llL'presented, through use of word ''Distilleries" In Its corporate name, printed on Its stationery and on the labels attached to the bottles In which It sold and shlppPd Its said products, and in various other ways to Its customers, and furnished the same with the means of representing to their Yenders, both retallers and ultimate consuming public, that whiskies, gins, and other spirituous beverages contained In such bottles were by It made through process ot distillation from mash, wort, or wash, notwlth· standing fact lt did not distill such various beverages thus bottled, labeled, sold, and transported by It, and did not own, operate, or control any place where alcoholic liquors are made by original and continuous dlstllla· tlon from mash, wort, or wash through continuous closed pipes nnd vessels until manufacture thereof Is complete, ns long definitely understood In trade and by ultimate purchasing public from word ''distillery," and was not a distiller, for the purchase of the bottled products ot which there Is n prt'ference on tbe part of a substantial portion ot the purchasing public; and ('b) lt£•presentN1 and Implied, by various rc•fprences to its "Prescription'' Drand Whiskl"y and to physicians, hospital~. and nurses and the United States Pharmacopoeia, in advertbing booklets attached to each bottle, that its aforesaid whiskey conformed to the requirf'ments therrot or was ot a kind, nature, and quality suprrior to the standard of whiskey specl· FORT CLARK DISTILLERIES, INC. 279 278 Complaint fled therein for medicinal use, and that it had been endorsed by the medical profession generally and was a superior brand of such product, ::;pecially distilled and prepared for distribution for medicinal use, through such statements, among others, as that Its said "Prescription" Drand was "prepared for nurses, hospitals, and physicians," and through statements stressing purity and requirements of the physician, compliance with the Food and Drug Act, specifications of the Pharmacopoeia, potability, uniformity, etc., "the pnrPst money can buy," etc., notwithstanding fact that content of said product in esters did not meet specifications of the Pharmacopoeia,. bad not been aged for four years or more in the wood, as required thereby, but, on the contrary, was made from new beverage whiskey treated in charred wood containers under a certain process for about five days only, prior to bottling for sale, and in no wise conformed to the standards of strength, quality or purity of so-called medicinal whiskey, and in various other ways was not the kind or quality of said product represented by It, and was adulterated and Inferior to the standards referred to;

With effect of misleading and deceiving dealers and purchasing public into the beliefs that the whiskies, gins, and other spirituous beverages sold by it were by It made and distilled from mash, wort, or wash by one continuous process, and that Its aforesaid "Prescription" Drand whiskey was of the strength, quality, and purity specified by the Pharmacopoeia for medicinal whiskey, and of inducing dealers and purchasing public, acting In such beliefs, to buy its said whiskies, etc., rectified and bottled by It, and of thereby diverting trade to it from Its competitors who do not, by their corporate or trade name or in any other manner, misrepresent that they nre manufacturers by .distillation from mash, wort, or wash of whiskies, gins, or other such beverages, or misrepresent the strength, quallty, or purity of their whiskies; to the substantial injury of substantial competition In commerce: lleld, That such acts and practices were to the prejudice of the public and competitors and constituted unfair methods of competition. Mr. PGad B. Morehou.ge for the Commission.

Miller, Elliott & Westervelt, of Peoria, Ill., for respondent. Co:tiPLAINT Pursuant to the provisions of an Act of Congress approved September 2G, 1914, entitled "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes," the Federal Trade Commission, having reason to believe that Fort Clark Distilleries, Inc., a corporation, hereinafter referred to as respondent, has been and is usin" unfair methods of competition in commerce, as "commerce" is defined in said act, and it appearing to the said Commission that a proceeding by it in re~pect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect ns follows: . . . . PAR.\GR.\PH 1. Respondent is a corporation orgamzed, ex1stlng, and doing" business under the laws of the State of Illinois, with its office ""

Complaint 24F. T. C.

and principal place of business at 915 Forsythe Street, in the city of Peoria, in sail! State. It is now, and since the 24th day of June 1935, hns been, engaged in the business of manufacturing and bottling whiskies, gins, and other spirituous beverages, including a product by it branded as "Prescription" Whiskey, in a r£'ctifying plant und£'r a rectifier's permit, and in the snJe thereof and constant course of trade in commerce between and among the various States of the United States and in the District of Columbia. In the course and conduct of its said business, respondent causes its said products, when sold, to be transported from its place of business aforesaid into and through the various States of the United States to the purchasers thcrrof, consisting of wholesalers and retailers located in States of the United States other than the State of Illinois, and in the District of Columbia.

In the course and conduct of its business, as aforesaid, respondent is now, and since the 21th day of June 1935, has been, in substantial competition with other corporations and with individuals, partnerj;hips, and firms engaged in the manufacture by true distillation of whiskies, gins, and oth£'r spirituous Leverages from mash, \Yort, or wash ant! in the sale thereof in trade and commerce between and among the various States of the Unitetl States and in the District of Columbia; ant! in the course and conduct of its business, n,s aforesaid, respondent is, and since the 24th day of June 1935, has been, in substantial competition with other corporations and with individuals, firms, and partnerships engaged in the business purchasing, rectifying, blending, and bottling whiskies, gins, and other spirituous beverages in rectifying plants under rectifiers' permits and in the sale thereof in commerce between and among the various States of the United St!ttes and in the District of Columbia. PAn. 2. Upon the premises of respondent's place of business aforesaid, there is a still for use in the production of gins by a process of rectification whereby alcohol, purchased but not produced. by respondent, is redistilled over juniper berries and other aromatics. Such rectification of alcoholic spirits does not make or constitute re- ~pondent a distillery or a distiller, as defined by Section 3247 of tho Revised Statutes regulating Internn,l Revenue, nor as commonly understood by the public and the liquor industry. For a long period of time the 'Yord "distillery" when used in connection with the liquor industry and with the products thereof has had and still has a definite significance and meaning to the mimls of wholesalers and retailers in such industry and to the ultimate purchasing public, to wit, a place where such alcol10lic liquors are manufactured by an original and continuous distillation from mash, wort, or wash, through continuous FORT CLARK DISTILLERIES, INC. 281 278 Complaint dosed pipes and vessels until the manufacture thereof is complete, and a substantial portion of the purchasing public prefers to buy spirituous liquors bottled and prepared by the actual distillers and manufacturers thereof.

PAR. 3. In the course and conduct of its business as aforesaid, by the use of the word "Distilleries" in its corporate name printed on its stationery and on the labels attached to the bottles in which it sells and ships its said products, and in various other ways, respondent represents to its customers, and furnishes them with the means of represmlting to their vendees, both retailers and the ultimate consuming public, that the said whiskies, gins, and other spirituous beverages therein contained were by it manufactured through the process of distillation from mash, wort, or wash, when, as a matter of fact, respondent is not a distiller, does not distill· the said whiskies, gins, and other spirituous beverages by it so bottled, labeled, sold, and transported, and merely by the use of a still operated by it, as aforesaid, in the rectification of alcoholic spirits by redistillation over juniper berries and other aromatics, does not distill the whiskies, gins, and other spirituous beverages by it so bottled, labeled, sold, and transported in the sense in which the word "distilled" is commonly accepted and understood by those engaged in the liquor trade and the public. Respondent does not own, operate, or control any place or places where such alcoholic beverages are manufactured by a process of original and continuous distillation from mash, wort, or wash.

PAn. 4. In the course and conduct of its business, as aforesaid, in connection with the sale and distribution of its so-called "Prescription" Drand 'Vhiskey, respondent caused to be attached to each bottle thereof an ad,·ertising booklet, in which respondent represents to its vendees, and thereby furnishes them with the means of so representing to the ultimate purchasers and consumers of said whiskey, in part as follows:

(BOTTLE LABEL): PllESCRIPTION BllAND STllAIGIIT BOUllDO~ WIIISKEY "CIIE~IICALLY ASSAYED"

Prescription Brand WhlskPy is • • • standardized straight bourbon whls· key, pre11ared for uurses, hospitals, and physicians. (BOOKLET): PllESClliPTION WIIISKEY (Chemically Assayed) PllESClliPTION WIIISKEY for the MEDICAL PTIOFESSION Rx • • • U. S. Food and Drug Acts have been complied with in the manufacture of this Prescripticm Whiskey.

l'UlllTY: The Physician n•quircs that his Digitalis be physiologically tested and stnudardlzl•d. Why not the same caution for the Doctor's Prescription Whls1.:cy1 • • • Complaint 24 F. T. C. Spirits Frumenti, U. S. P. specifically state that whiskey shall be aged In charred oak barrels for a period of four years, but they forget to specify from what proofed distilled spirits distillate, reduced to proper proof, should be used. Should the requirements be that of 110• proof spirits distillate or any degree of proof spirits distillate up 159" reduced to proper proof? (Any distillate distilled above 1G9° proof Is classified as alcohol and cannot be called whiskey.) • • • POTABILITY: The Nurse is desirous of all pharmaceuticals that are to be administered, to be highly potable, thus eliminating all possibility of nausea and stomach disturbance, so as not to cause any discomfort of her patient. Why not the same caution for the Doctor's Prescription Whiskey? • • • 15!)" proof spirit distlllate of the proper kind Is the starting point In the making of Prescription Whiskey.

• • • Prescription Whiskey, which Is the result of this technique, is recognized by the Medical Profession.

Do not confuse Prescription Whiskey with whiskies of U. S. P. requirements in purity.

Controlled purity and standardized constituents make It a pharmaceutical for the physician's use.

UNIFOR!\IITY: The Pharmacist Is required to use discretion In dis1wnslng U. S. P. and C. P. drugs and chemicals. Why not the same caution for the Doctor's Prescription Whiskey r Tile PUREST l\IO~EY CAN BUY PRESCRIPTION WHISKEY Is prepared especially for the use of the physician who recognizes the need for combining purity of product with accessibility or price. Its standards of excellence, going berond U. S. P. requir<'ments for purity, make it the ideal stipulation for the physician who wishes to direct his patient to the best. .

The physician knows how essential is purity in the use of whiskey as a specific. lie knows the lack of scruple which has characterized the manufacture of many products Intended to be taken into the body. In Prescription Whiskey he finds the Ideal answer to his pro!Jlrm. It Is well flavored and palatable, It is not priced nt the exces~lve figure estnhll>'hf'd for other whiskies nppronchlng It In purity, It Is cherulcnlly nssnyed for your protection.

For Your Patients: rrescrlption Whiskey superior to U. S. P. requirements tor PURITY lly means of the foregoing statements and representations, respondent in substance and effect represents that the said "Prescription" Brand Whiskey is of o. kind, nature and quality superior to the standard of whiskey specified fot medicinal use in the United States Pharmacopoeia, whereas, in truth and in fact, the whiskey is adulterated, is inferior to, and does not conform to, the standards of whiskey there E"pecifietl, in that, to wit, the United States Pharmacopoeia specifies that whiskey contains in 50 cc. esters equivalent to not less than 1.7 .:~. of tenth-normal sodium hydroxide, and l'('!Oponllrnt's said "Pre- FORT CLARK DISTILLERIES, INC. 283 278 Complaint scription" brand contains esters in 50 cc. equivalent to 1 cc. of tenthnormal sodium hydroxide. Also, the standard of the whiskey specified for medicinal use in the United States Pharmacopoeia aforesaid requires such article to be aged in the wood for four years or more, and respondent's "Prescription" brand "Whiskey has not been aged in the wood for four years or more.

By its aforesaid references to "Prescription" Brand and to physicians, hospitals, nurses, and the United States Pharmacopoeia (U. S. P.), respondent directly and impliedly represents that its whiskey conforms to the requirements of the Pharmacopoeia, has been endorsed by the medical profession generally, and is a superior brand of whiskey specially distilled and prepared for distribution for medicinal use, when, as a matter of fact, the article is made from new beverage whiskey, treated in charred wood containers at an elevated temperature for a period of approximately five days, after which it is bottled for sale and sold, and in no wise conforms to the standards of strength, quality or purity of so-called medicinal whiskey, and in various and divers other ways is not the kind or quality of whiskey as represented by respondent.

PAn. 5. There are among the competitors of respondent engaged in the sale of spirituous beverages, as mentioned in paragraph 1 hereof, corporations, firms, partnerships, and individual1s who manufacture and distill from mash, wort, or wash whiskies, gins, and other spirituous beverages sold by them, and who truthfully use the words "distillery," "distilleries," "distillers," or "distilling" as a part of their corporate or trade names and on their stationery, advertising ami on the labels of the bottles in 'which they sell and ship such products. There are also among such competitors corpora.tions, firms, partner~hips and individuals engaged in the business of purchasing, rectifying, blending, and bottling whiskies, gins, and other spirituous beverages in rectifying plants under rectifiers' permits who do not use the words "distillery," "distilleries," "distilling," or "distillers" as a part of their corporate or trade names, nor on their stationery, advertising nor on the labels attached to the bottles in which they sell and ship their said products. There are also among such competitors corporations, firms, partnerships, and individuals who do not misrepresent the strength, quality, or purity of whiskies by them sold in interstate commerce, nor that such whiskies are specially produced for medicinal use. PAn. 6. The representations by respondent, as hereinbefore set forth, are calculated to and have the capacity :mel tendency to and do mislead and deceive dealers and the purchasing public into the beliefs that the whiskies, gins, and other spirituous beverages sold Findings 2-!F.T.C.

by the respondent are manufactured and distilled by it from mash, wort, or wash by one continuous process, and that its "Prescription" Brand 'Vhiskey is of the strength, quality, and purity specified by the United States Pharmacopoeia for whiskey designed to be used medicinally, and are calculated to and have the capacity and tendency to and do induce dealers and the purchasing public, acting in such beliefs, to purchase the whiskies, gins, and other spirituous beverages rectified and bottled by the respondent, thereby diverting trade to respondent from its competitors who do not by their corporate or trade name or in any other manner misrepresent that they are manufacturers by distillation from mash, wort, or wash of whiskies, gins, or other spirituous beverages, or misrepresent the strength, quality or purity of their whiskies, and thereby respondent does substantial injury to suh;;tantial competition in interstate commerce.

PAR. 7. The acts and things above alleged to have been done and the false representations alleged to have been made by respondent are to the prejudice of the public and the competitors of 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 2G, 1914. REronT, FINDINGS AS TO THE FACTs, AND Onder Pursuant to the provisions of an Act of Congress approved September 2G, 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 October 1G, 193G, issued and served its complaint in this proceeding upon respondent, Fort Clark Distilleries, Inc., chargi11g it with the use of unfair methods of competition in commerce in violation of the provisions of said act. After the issuance of said complaint respondent's answer, dated November 25, 193G, was duly filed in the office of the Commission by which said answer respondent admitted all the material allegations of the complaint to be true and wah·ed the taking of further evidence and all other intervening procedure. Thereafter, this proceeding regularly came on for final hearing before the Commission on the said complaint and answer, briefs and oral arguments of counsel having been waived, and the Commission having duly considered the same and being now fully advised in the premises, finus that this proceeding is in the interest of the public and makes this its findings as to the facts and its conclusion drawn therefrom:

FORT CLARK DISTILLERIES, INC. 285 278 Findings FINDINGS AS TO Tile FACTS P ARAGRAI'H 1. Respondent is a corporation organized, existing and doing business under the laws of the State of Illinois, with its office and principal place of business at 915 Forsythe Street in the city of Peoria in said State. It is now, and since June 24, 1935, has been, engaged in business as a rectifier and wholesaler of distilled spirits, operating since November 23, 1935, under a basic permit, No. R-64:3, issued by the Federal Alcohol Administration. Its business consists of purchasing and bottling whiskies, gins, and other spirituous beverages, including a product by it branded as "Prescription 'Vhiskey," in a rectifying plant under a rectifier's permit, and in the sale thereof in constant course of trade and commerce between and among the various States of the United States and in the District of Columbia. In the course and conduct of its said business, respondent causes its said products, when sold, to be transported from its place of business aforesaid into and through the various States of the United States to the purchasers thereof, consisting of wholesalers and retailers located in States of the United States other than the State of Illinois, and i~ the District of Columbia.

In the course and conduct of its business, as aforesaid, respondent is now, and since the 24th day of June 1935, has been, in substantial competition with other corporations and with individuals, partnerships, and firms engaged in the manufacture by true distillation of whiskies, gins, and other spirituous beverages from mash, wort, or wash and in the sale thereof in trade and commerce between and among the various States of the United States and in the District of Columbia; and in the course and conduct of its business, as aforesaid, respondent is, and since the 24th day of June 1935, has been, in substantial competition with other corporations and with individuals, firms, and partnerships engaged in the business of purchasing, rectifying, blending, and bottling whiskies, gins, and other spirituous beverages in rectifying plants under rectifiers' permits and in the sale thereof in commerce between and among the various States of the United States and in the District of Columbia. PAn. 2. Upon the premises of respondent's place of business aforesaid, there is a still for use in the production of gins by a process of rectification whereby alcohol, purchased but not produced by respondent, is redistilled over juniper berries and other aromatics. Such rectification of alcoholic spirits does not make or constitute respondent a distillery or a distiller, as defined by Section 3247 of the Revised Statutes regulating Internal Revenue, nor as commonly understood by the public and the liquor industry. For a long period of 146i51Jm 3!1-vol. 24-21 Findings 24F.T.C.

time the word "distillery" when used in connection with the liquor industry and with the products thereof has had and still has a definite significance and meaning to the minds of wholesalers and retailers in such industry and to the ultimate purchasing public, to wit, a place where such alcoholic liquors are manufactured by an original and continuous distillation from mash, wort, or wash, through continuous closed pipes and vessels until the manufacture thereof is complete, and a substantial portion of the purchasing public prefers to buy spirituous liquors bottled and prepared by the actual distillers and manufacturers thereof.

PAR. 3. In the course and conduct of its business as aforesaid, by the use of the word "Distilleries" in its corporate name printed on its stationery and on the labels attached to the bottles in which it sells and ships its said products, and in various other ways, respondent represents to its customers, and furnishes them with the means of representing to their vendees, both retailers and the ultimate consuming public, that the said whiskies, gins, and other spirituous beverages therein contained were by it manufactured through the process of distillation from mash, wort, or wash, when, as a matter of fact, respondent is not a distiller, does not distill the said whiskies, gins, and other spirituous beverages by it so bottled, labeled, sold, and transported, and merely by the use of a still operated by it, as aforesaid, in the rectification of alcoholic spirits by redistillation over juniper berries and other aromatics, does not distill the whiskies, gins, and other spirituous beverages by it so bottled, labeled, sold, and transported in the sense in which the word "distilled," is commonly accepted and understood by those engaged in the liquor trade and the public. Respondent docs not own, operate or control any place or places where such alcoholic beverages are manufactured by a process of original and continuous distillation from mash, wort, or wash. · PAn. 4. In the course and conduct of its business, as aforesaid, in connection with the sale and distribution of its so-called '"Prescri ption" Brand 'Vhiskey, respondent caused to be attached to each bottle thereof an advertising booklet, in which respondent represents to its vendees, and thereby furnishes them with the means of so representing to the ultimate purchasers and consumers of said whiskey, in part as follows:

(BOTTLE LABEL): PltESClliPTION BRAND STRAIGHT 110URBON WIIISKEY "CHEMICALLY ASSAYED"

Prescription Brand Whl!;key Is • • • standardized straight bourbon whiskey, prepllrl'd for nurses, ho~pltnls, and physicians. (BOOKLET): PRESClliPTION WHISKEY (Chemically Assnyetl) FORT CLARK DISTILLERIES, INC. 287 278 Findings PRESCRIPTION WHISKEY for the MEDICAL PROFESSION Rx • • • u. S. Food and Drug Acts have been complied with in the manufacture of this Prescription Whiskey.

PURITY: The Physician requires that his Digitalis be physiologically tested and standardized. Why not the same caution for the Doctor's Prescription WTLiskeyr • • • Spidt FrUJmmti., U. S. P. Bpedfica\ly state that whi!=key shall be aged in charred oak barrels for a period o'f four years, but they forget to specify from what proofed distilled spirits distillate, reduced to proper proof, should be used. Should the requirements be that of uo• proof spirits distillate or any degree of proof spirits distillate up to 159• reduced to proper proof? (Any distillate distilled above 159° proof is classified as alcohol and cannot be called whiskey.) • • • POT AniLITY: The Nurse is desirous of all pharmaceuticals that are to be administered, to be highly potable, thus eliminating all possibility of nausea and stomach disturbance, so as not to cause any discomfort of her patient. Why not the same caution for the Doctor's Prescription Whiskey? • • • 159• proof spirit distillate of the proper Teind is the starting point in the making of Prescription Whiskey.

• • • Prescription Whiskey, which is the result of ~his technique, is recognized by the Medical Profession.

Do not confuse Prescription lVhislcey with whiskies of U. S. P. requirements in purity.

Controlled purity and standardized constituents make it a pharmaceutical for the physician's use.

UNIFORMITY: The Pharmacist is required to use discretion in dispensing U. S. P. and C. P. drugs and chemicals. Why not the same caution for the Doctor's Prescription 1Vhislcc11 r Tile PUREST 1\IONEY CAN BUY PHESCRIPTION WHISKEY Is prepared especially for the use of the physician who recognizes the nec1l for combining purity of product with accessiblllty of price. Its standard of excellence, going beyond U. S. P. requirements for purity, make It the ideal stipulation for the physician who wishes to direct his patient to the best.

The physician knows how essrntlal is purity In the use of whiskey as n specific. He knows the lack of scruple which has characterized tile manufacture of many products Intended to be taken into the body. In Prescription Whiskey he finds the l!lcal answer to his problem. It is well ftavored and palatable, It Is not priced at the excessl\"e figure established for other whh;kles approaching it In purity. It Is chemically assayed for your protection.

For your Pa Uents: Prescription Whiskey superior to U. S. P. requirements for PURITY.

By means of the foregoing statements and representations, respondent in substance and effect represents that the said "Prescription" Brand 'Vhiskey is of a kind, nature and quality superior to the standard of whiskey specified for medicinal use in the United States 288 FEDERAL TRADE COMMISSION DECJ,SIONS Findings 24F.T.C.

Pharmacopoeia, whereas, in truth and in fact, the whiskey is adulterated, is inferior to, and does not conform to, the standards of whiskey there specified, in that, to wit, th~ United States Pharmacopoeia specifies that whiskey contains in 50 cc. esters equivalent to not less than 1.7 cc. of tenth-normal sodium hydroxide, and respondent's said "Prescription" brand contains esters in 50 cc. equivalent to 1 cc. of tenth-normal sodium hydroxide. Also the standard of the whiskey specified for medicinal use in the United States Pharmacopoeia aforesaid requires such article to be aged in the wood for four years or more, and respondent's "Prescription" llrand ·whiskey has not been aged in the 'vood for four years or more. lly its aforesaid references to "Prescription" Brand and to physicians, hospitals, nurses, and the United States Pharmacopoeia (U. S. P.), respondent directly and impliedly represents that its whiskey conforms to the requirements of the Pharmacopoeia, has been endorsed by the medical profession generally and is a superior brand of whiskey specially distilled and prepared for distribution for medicinal use, when, as a matter of fact, the article is made from new beverage whiskey, treated in charred wood containers at an elevated temperature for a period of approximately five days, after which it is bottled for sale and sold, and in no wise conforms to the standards of strength, quality or purity of so-called medicinal whiskey, and in various and divers other ways is not the kind or quality of whiskey as represented by respondent.

PAR. 5. There are among the competitors of respondent engaged in the sale of spirituous beverages, as mentioned in paragraph 1 hereof, corporations, firms, partnerships, and individuals who manufacture and distill from mash, wort, or wash whiskies, gins, and other spirituous beverages sold by them, and who truthfully usc the words "distillery," "distilleries," "distillers," or "distilling" as a part of their corporate or trade names and on their stationery, advertising and on the labels of the bottles .in which they sell and ship such products. There are also among such competitors corporations, firms, partnerships, and individuals engaged in the business of purchasing, rectifying, blending, and bottling whiskies, gins, and other spirituous beverages in rectifying plants under rectifiers' permits who do not use the words "distillery," "distilleries," "distilling," or "distillers" as a part of their corporate or trade names, nor on their stationery, a<h-ertising nor on the labels attached to the bottles in which they sdl and ship their said products.

There are also among such competitors corporations, firms, partner- ~hips, and indivi<luals who do not mist·epresent the strength, quality, FORT CLARK DISTILLERIES, INC, 289 278 Order or purity of whiskies by them sold in interstate commerce, nor that such whiskies are specially produced for medicinal use. PAR. 6. The representations by respondent, as hereinbefore set forth, are calculated to and have the capacity and tendency to and do mislead and deceive dealers and the purchasing public into the beliefs that the whiskies, gins and other spirituous beverages sold by the respondent are manufactured and distilled by it from mash, wort. or wash by one continuous process, and that its "Prescription" Brand Whiskey is of the strength, quality, and purity specified by the United States Pharmacopoeia for whiskey designed to be used medicinally, and are calculated to and have the capacity and tendency to and do induce dealers and the purchasing public, act.ing in such beliefs, to purchase the whiskies, gins, and other spirituous beverages rectifieu n,nd bottled by the respondent, thereby diverting trade to respondent from its competitors who do not by their corporate or trade name or in any other manner misrepresent that they are manufacturers by distillation from mash, wort, or wash of whiskies, gins, or other spirituous beverages, or misrepresent the strength, quality, or purity of their whiskies, and thereby respondent does substantial injury to substantial competition in interstate commerce. PAR. 7. Because of existing regulations, under the Federal Alcohol Administration Act approved August 29, 1935 (49 Stat. 977), which regulations became effective August 15, 1936, providing that rectifiers who redistill purchased alcohol over juniper berries and other aromatics may sell such resulting product as "distilled gin," and requiring that the labels state who distilled it, the Commission has excepted gins produced by respondent by redistillation of alcohol over juniper berries and other aromatics from the prohibitions of its order. CO:SCLUSION The aforesaid acts and practices of the respondent Fort Clark Distilleries, Inc., are to the prejudice of the public and of respondent's competitors, and constitute unfair methods of competition in commerce, within the intent and meaning of Section 5 of an Act of Congress, approved September 26, 1914, entitled "An Act to create n. Federal Trade Commission, to define its powers and duties, and for other purposes."

ORDE~ TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission and the answer of respondent, in which answer respondent admits all the material allegations of the complaint to be true and states that it waives Order 24F.T.C.

hearing on the charges set forth in said complaint and agrees that, without further evidence or other intervening procedure, the Commission may issue and serve upon it findings as to the facts and conclusion and an order to cease and desist from the violations of law charged in the complaint, and the Commission having made its findings as to the facts and conclusion that said respondent has violated 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 purpose." It i.~ ordered, That the respondent, Fort Clark Distilleries, Inc., its officers, representatives, agents, and employees, in connection with the offering for sale, sale, and distribution of whiskies, gins, and other spirituous beverages in interstate commerce and in the District of Columbia (except gins produced by it through a process of rectification whereby alcohols purchased, but not produced, by respondent are redistilled over juniper berries and other aromatics), do forthwith cease and desist from:

1. Representing, through the use of the word "Distilleries" in its corporate name, on its stationery, advertising, or on the labels attached to the bottles in which it sells and ships said products, or in any other way by word or words of like import, (a) that it is a distiller of whiskies, gins, or other spirituous beverages; or (b) that the said whiskies, gins, or other beverages were by it manufactured through the process of distillation; or (c) that it owns~ operates, or controls a place or places where any such products are by it manufactured by a process of original and continuous distillation from mash, wort, or wash, through continuous closed pipes and vessels until the manufacture thereof is completed, unless and until respondent shall actually own, operate, or control such a place or places;

2. Reprf:'senting that any of its whiskey is of the kind, nature, or quality usually or ordinarily prescribed by physicians for medicinal treatment; or is of the kind, nature, and quality especially prepared for nurses, hospitals, or physicians; or that any of said whiskey is the kind, nature, and quality of whiskey of the standard specified for medicinal use in the United States Pharmacopoeia; or that any of said whiskey is aged in the wood for four years or more, when such are not the facts.

It is further ordered, That the said respondent within GO days :from and after the date of the service upon it of this order, shall file with the Commission a report or reports in writing, setting forth in detail the manner and form in which it is complying, and has complied, with the order to cease and desist hereinabove set forth. PRATT FOOD COMPANY 291 Complaint