Retail Furniture Dealers Association of St. Louis

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

IN THE 1\fA 'ITER OF RETAIL FURNITURE DEALERS' ASSOCIATION OF ST. LOUIS, ET AL.

COMPLAINT, FINDINGS, AND ORDE:It IN REGARD TO THFJ ALLEGED VIOLATION OF SEC. II OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket !757. Complaint, ..4.pr. 9, 1936-Declalon, Dec. 81, 1986 Where the retail furniture dealers' association of St. Louis, members of which were engaged in the purchase of furniture and allled products including, usually, electric refrigerators and radios, from various manufacturers, dis· tributors, wholesalers, jobbers, and dealers In many different States, and fn reselling such furniture and merchandise at retall to various members of the consuming public in Missouri and Illinois and In other States of the trade area adjacent thereto, and some of the members of which were, during the time herein concerned, engaged in commerce between and among the dUTerent States and in trade, business, and commerce which had a direct and substantial effect upon Interstate commerce In furniture and allied products, Including electric refrigerators and radios, and some of the members of which, thus engaged, were in substantial competition with others similarly engaged In the purchase and sale at retail and distribution of such products; and the officers and executive board members of said association; in pursuance of objects for which created and to enhance and promote the volume of trade, business, and profits of Its members, and incident to certain policies, sales methods, and trade practices which they sought to have and, which, to some e:t:tent, were put into effect by manufacturers, distributors, wholesalers, and jobbers engaged in interstate commerce and trading In area In question- ( a)! Requested such wholesalers, jobbers, nnd manufacturers, selling furniture and allled products in area In question, to adopt, follow and adhere to pollcy and practice that no sales of such products be made by them directly to ultimate consumer or to their own employees, e:t:cept for latters' personal use, or to contractors, Institutions, hotels, apartment-house operators, real· estate dealers, or large Industrial plants, and that requests from ultimate consumers to buy merchandise from them, to be billed through some retall dealer, be refused, and such customer be required to purchase from a "regular" retailer, and that no sales or deliveries be made by them to homes of ultimate consumers and no merchandise be sold to salesmen for any furniture retaller unless sold, billed, and delivered to such dealer; (b) Requested such wholesalers, etc., to adopt, follow and adhere to pollcy and practice that no orders for merchandise be accepted by them from dealers In cities other than St. Louis, Mo., or East St. Louis, Ill., where delivery thereof was to be made In said two last-named cities, and that no merchandise at any tlme be donated by them or placed on consignment basis with anyone, e:t:cept for short period for window or floor display only; (c) Requested such wholesalers, etc., to adopt, follow, and adhere to policy and pr11ct1ce that they do not sell merchandise to concerns who sell at retail and who, In so doing, bold themselves out to publlc and to their customers as contract home furnishers operating on basis similar to that of whole- RETAIL FURNITURE DEALERS' ASS'N OF ST. LOUIS, ET AL, 363 Syllabus salers, and also that they do not go upon the sales floor or any retailer and talk to purchasers or prospective purchasers ot line or merchandise otrered tor sale in particular retail store or department thereor; and Where said association, in order to make such sales methods, policies and practices effective and require compliance therewith by all such manu· facturers, etc., trading Jn said area, acting through its officers and execu· tive board- ( d) Announced adoption by Jt ot atoresaid selling methods, policies and practices In bulletins and letters distributed among its members and sent to manufacturers and distributors, and set forth, In bulletins or ch·culars to Its members, names of manutacturers and distributors who cooperated or agreed to cooperate in enforcement of such sales methods and policies adopted by it ;

(e) Acquainted manuracturers and distributors with names or those who, it asserted, were not entitled and should not be permitted to buy rurnlture at wholesale prices, and sought and obtained promises and assurances or cooperation by manufacturers, wholesalers and jobbers to the end that all ultimate consumers of merchandise would be refused the advantage ot buying at wholesale and would be required to purchase merchandise only through regular retail stores; and Where some of said association members, following discussion and the advocating of the adoption by the association of the policy that all members Impose a carrying charge, in addition to the atlvertisetl cash price, for merchandise sold on installments or deferred payment plan, and acting without authority from the association- (1) Interviewed certain manufacturers, distributors, jobbers, and wholesalers engaged in lnten:tatc commerce In trade area In question, In furtherance of their desire that sold manufacturers, etc., adopt a policy of selllng only to such retailers In said area as Impose such a carrying charge, and intimated, In some cases, that they did not Intend to purchase product~:~ han· dled by such manufacturers, etc., as later sold or continued to S£'11 the same to those retailers who did not use or Impose such charges, with capacity and tendency to Instill In the minds of said manufacturers, etc., belief that It, 1. e., the association, hnd adopted and was pursuing practices and policies above set forth and requiring all Its members to lmpo~ a carrying charge on Installment or deferred payment plan merchandise, as above set forth, and was attempting to compel them to desist from selling their respective llnes to dealers competing with the members who did not conform In the above respects and to Induce some of said manufacturers, etc., to believe that If they persisted In selllng their products to sneh nonconforming furniture dealers, association members would cease buying said lines from them, and with tendency, as result thereof, to Impel latter to refuse to sell their said lines to those furniture dealers In and around said named cities and who did not thus conform; and With capacity and tendency, by reason of said plan, program, and undertak· lng, and acts and practices and selling methods and policies In pursuance thereof In trade area In and around said cities and in Missouri, Illinois, and adjoining States, to (1) monopolize In certain of said members business ot dealing in and distributing furniture and allled products, Including electric refrigerators and radios, (2) lessen and restrain competition In said line of products and deprive purchasing and consuming ·public of Syllabus 24F.T. C.

advantages In price, service, and othet considerations which they would receive and enjoy under conditions of normal, unobstructed, free, and fair competition therein, (3) substantially Increase cost to purchasers of such products, ( 4) discriminate against some business enterprises which were or had been engaged in selling and distributing same, (5) obstruct, hamper, and Interfere with normal and natural flow of trade In commerce in furniture and allied products into, through, and from said trade area, and (6) prejudice and fetter the public and manufacturers, producers, distributors, and competing retailers who did not conform to their program or methods or did not desire to do so :

Held, That such acts and practices were to the prejudice of the public and competiiors and constituted unfair methods of competition. rjr. lValter B. 1Vooden and Mr. Allen 0. Phelps, for the Commis- . sion.

lJla.wn, Spalding & McAtee, of 'Vashington, D. C., for Manne Brothers Furniture Co. and some thirty-four other concerns as members of said respondent association, and for Peter M. Igoe, as president of said association and for various other officers of said association, and for Benjamin 1Veisman and various other members of the executive board of said association (for some of which various respondents there also appeared as counsel and attorneys all but the last three, below named, who alone represented their respondent clients).

Green.~felder & Grarul, of St. Louis, Mo., for Manne Brothers Furniture Co., American Furniture Co., 'Vellston Furniture Co., Joseph Manne, and Joseph Lasky.

Burnett, Stern & Liberman, of St. Louis, Mo., for Union-May- Stern Co. and Benjamin 'Veisman.

Mr. A. E. Frey, of St. Louis, Mo., for Goldman Bros., Inc., and Stanley Goldman.

Eliot, Blayney & Bedal, of St. Louis, Mo., for Lammert Furniture Co. and Martin Lammert.

Igoe, Oarroll & Keefe, of St. Louis, 1\Io., for Hellrung & Grim House Furnishing Co., Igoe House Furnishing Co.) and Peter M. Igoe.

Thompson, Mitchell, Th.ompson & Young, of St. Louis, Mo., for Rhodl's-Burford House Furnishing Co.

J ejfries, Simpson & Plummer, of St. I.louis, Mo., for Gregson Furniture Co. and Shirley D. Gregson.

Lewi~, Rice, Tucker, Allen & Ohubb, of St. Louis, Mo., for Dau, The House Furnisher, Inc. and Fred C. Dau, as treasurer and member of the executive board of said association. Mr. Jerome JJI. Steiner, of St. I.louis, Mo., for Ideal Furniture Co. and Chas. Steiner.

RETAIL FURNITURE DEALERS' ASS'N OF ST. LOUIS, ET AL. 365 . 362 Complaint Mr. Albert L. Schmidt, of St. Louis, Mo., for Mosley-Thuner Furniture Co. and James A Mosley.

Mr. George 0. Foster, of St. Louis, Mo., for John Alt Furniture Co. Mr. Ma:JJ Sigolojf, of St. Louis, Mo., for J. D. Carson, Inc. Vtuer Furniture Co. and National House Furnishing Co. Mr. Maurice Schechter, of St. Louis, Mo., for Geitz House Furnishing Co.

J./rr. King G. McElroy, of St. Louis, :Mo., for J. C. Geit:z ~Sewing Machine and Furniture Co.

J.fr. Joltn 0. Kappel, Jr., of St. I~louis, 1\fo., for FrankL. Schaab Stove and Furniture Co.

Mr. S. Sylvan Agatstein, of St. Louis, Mo., for Joseph Agatstein. Mr. Karol A. J(orngold, of St. Louis, Mo., for Biederman Furniture Co.

11/r. llenry II. Oberschelp, of St. Louis, Mo., for Kroemeke Furniture Co. and The 1Varring Furniture Co.

Mr. Edward /(, Schwartz, of St. Louis, Mo., for Quality Furniture Co.

Complaint 1 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, having reason to believe tha~ the respondents hereinabove designated, 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 Le in the public interest, hereby issues its complaint stating its charges in that respect as follows:

I) ARAGllAPII 1. Uespondent, Uetail Furniture Dealers' Association of St. Louis, is a non-profit corporation organized under the laws of the State of Missouri, by virtue of a certain decree and order made and. entered. by the Circuit Court of the city of St. Louis, Mo., on December 17, 1923; that said corporation was organized for the expressed. purpose of promoting the interest of, and to secure friendly connections bteween, retail furniture dealers in the city of St Louis, State of Missouri; to promote and. combine the influence and intelligence of its members; for the protection of their trade against impo- 'Extensive enumeration In Par. 3 of the complaint of respondents joined as member'rl ot respondent asRoclntlon, may, with certain exceptions aet forth In the footnote to enid Paragraph, be found In the llndlngs, Infra, at page 374, and Is, for said reason, omitted from the complaint as pullllabed In the Interest of brevity, as are similarly omitted, as likewise Included In the findings, Infra, Jlsts of respondent officers and of respondent members of the executive board enunwrated In rar. 4 ot the complaint and set forth, with two exceptions noted In the footnote to said complnlnt, In the findings, Infra, at page 376. HOi:'i6'"-3U-vol. 24-26 Complaint 24F.T.C.

sition, injustice, or encroachment upon their common rights and interests; to foster and interchange thoughts and ideas for their mutual benefit as a result of the experience and ability of all; to urge and encourage national, state, and city legislation for the furtherance of the interest of just laws; to secure for its members equitable treatment in all their business dealii1gs with manufacturers of, and deale1s in, furniture supplies; to recommend the abolishment of the practice of some manufacturers and wholesale furniture dealers of peddling and selling goods at retail to the detriment of the retail line of business; to disseminate knowledge and information among its members relating to and in connection with the retail furniture business; to give and hold furniture and household shows and exhibits from time to time; to do such other acts and things as do or may tend to accomplish the purpose of the said corporation and are within the laws of the State of Missouri and the United States; that the principal office and place of business of said Association is located at 926 Chemical Duilding, St. Louis, Mo.

PAR. 2. That for some years prior to August 1, 1933, said respondent corpqrution was not active, but on or about said date it was informally recognized by agreement among the respondent members hereinafter named, who theretofore had been members or who, upon said date or subsequent thereto, voluntarily became members of said Association; that on said date certain amended bylaws were adopted for the regulation of said corporation which vested the government and control thereof in the officers, and an executive board composed of the president, vice president, and representatives of six members of said Association elected by the members. The said bylaws provide that the members of said corporation shall be composed of individuals, firms, and corporations who carry a stock of furniture or kindred wares, engaged as principals in retniling the same from their own place of business in the city of St. Louis, 1\Io.

PAR. 3. That the following named respondents have been and are members of said respondent Association and as such have exercised the privileges of and assumed the liabilities incident to such membership, to wit: 1 PAR. 4. That the following named respondents have been or are officers of said respondent Association, to wit: 1 1 The extend~d enumeration ot respondt>nta whteh tollowa In the complaint at this point, Is alo lnclotled In the ftndlnga, Intra, at page 374, with c~rtnln I'XCPptlons, aa to which the care was closed or dismissed, u set forth In ord~r closing, etc., on page 88:1, Infra, and Is, tor sal•l reason, omlttE'd bere In the Interest ot bre_vlty. 1 The nrloua lndlvlduule named as past or present officers of 1ald aaRoclatlon In tbe complaint at this point, mny bt> found 1et forth In the corresponding paragraph of the findings, lnf1·a, at page 370, and are accordingly omitted here In the Interest of brevity. RETAIL FURNITURE DEALERS' ASS'N OF ST. LOUIS, ET AL. 367 362 Complaint The following named respondents have been or are members of the executive board of said respondent Association, in addition to the presidents and vice presidents above named, to wit:' PAR. 5. That the several members of said respondent Association, in the course and conduct of their respective businesses, purchase furniture and allied products, including, in most cases, electric refrigerators and radios, from various manufacturers, distributors, wholesalers, jobbers, and dealers located in many different States of the United States, and cause said commodities so purchased to be transported from the State of origin thereof, being States other than the States of Missouri and Illinois, to, into and through various States of the United States, and into the States of Missouri and Illinois; that said respondent members resell said furniture and merchandise at retail to various members of the consuming public located in the States of Missouri and Illinois and in other States in the trade area. adjacent thereto; that said commodities are ordinarily purchased at wholesale or from the manufacturer by said member respondents with the intention and for the purpose of reselling and delivering the same at retail to purchasers located in the States of Missouri and Illinois, and States adjacent thereto, such resales being made from the respective places of business of said respondents, where said goods are assembled and displayed for sale for varying periods of time; that said respondent members, upon sales at retail being made to purchasers, deliver and transport or cause to be delivered and transported said goods so shipped into the States of Missouri and Illinois to the purchasers thereof located in the States of Missouri and Illinois, and other States adjacent thereto; that said respondent members are, and have bc.en during all the time herein mentioned, eng-aged in commerce between and among different States of the United States, and all of said respondents above named are and have been engaged in trade, business and commerce having a direct effect upon interstate commerce in furniture and allied products, including electric refrigerators and radios.

PAn. 6. That in the course and conduct of their said businesses, said respondent members are in substantial or potential competition with other persons, firms and corporations engaged in the sale at retail and distribution of furniture and allied products, including electric refrigerators and radios, in the States of Missouri and Illinois, and in the trade area extending into other States adjacent thereto; • Tbe varlou' Individuals named at this point as past or present membera of the executive board of respondent association, are set forth In rar. 4 of tbe findings, wltb the exception of two Individuals, 81 to whom ease was closed, 81 eet forth In order closing, etc., on page 38:1, Infra, and aforesaid enumeration Is accordingly not publlsbed here In tbe Interest of brevity, Complaint 24F.T.C.

that said competitors likewise purchase their wares, at wholesale or from manufacturers, in various States of the United States, and transport them or cause them to be transported to, into and through States other than the States of Missouri and Illinois to their respective places of business in said trade area and resell and deliver the same at retail to consumers located in the States of Missouri and Illinois, and SU1.tes other than the State in which said competitors' respective places of business are located; that said competitors are engaged in commerce between and among the different States of the United States and in trade, business and commerce having a direct effect upon interstate commerce in furniture and allied products, includin.!r electric refrigerators and radios. PAR. 7. That respondents are banded and allied together in said Retail Furniture Dealers' Association of St. Louis to carry into effect the regulations, sales methods, requirements, and trade practices hereinafter described, and to enhance and promote the volume of trade, business and profits of said respondent members. And the respondents, namely, said Association, its officers, executive board, and members, during and in the period of more than three years last past have agreed, conspired, combinetl and confederated together and with others, and have united in an<l pursued a common and concerted course of action and undertakinrrM among(J'o themselves and with others, to adopt, follow, carry out, enforce, and maintain, in a number of States comprising the trade area in and surrounding the cities of St. Louis, Mo., and East St. Louis, III., certain policies, sales methods and trade practices, hereafter described, which respondents attempted to or did, by coercion and compulsion, impose upon and require the adoption and observance of by retail furniture dealers in said trade area who were not members of Raid Association, and by manufacturers, distributors, wholesalers, and jobbers trading in said area, to the substantial or potential prejudice nml injury of ultimate purchasers and consumers generally. PAR. 8. That said policies, regulations, requirements, sales methods, and trade practices, referred. to in the preceding paragraph, specifically consist of the followmg:

(A) As affecting retail furniture dealers in said trade area, and the purchasing public:

1. The practice and requirement that all retail furniture dealers charge as a cash price to ultimate consumers of merchandise the retail price suggested, set, or required by the manufacturer distributor, or jobber of such merchandise. ' 2. The practice and requirement that in all sales of merchandise made to ultimate consumers on deferred time or installment pay- RETAIL FURNITURE DEALERS' ASS'N OF ST. LOUIS, ET AL. 369 . 3G2 Complaint ments there be added and imposed, by retail furniture dealers, a separate uniform carrying charge over the regular advertised retail cash price of such merchandise, for the extension of credit by a retail dealer to the customer and for the privilege extended to the purchaser of paying the purchase price in installments over an agreed period of time.

(D) As affecting manufacturers, distributors, and jobbers selling furniture and allied products in said trade area, and the purchasing public:

1. The practice and requirement that no sales of furniture or allied products be made by manufacturers, distributors, or . jobbers, directly to the ultimate consumer thereof, to employees of such manufacturers, distributors, and jobbers, except for the personal use of said employees, or to contractors, institutions, hotels, apartment house operators, real estate dealers, or large industrial plants. 2. The practice and requirement that no orders for merchandise be accepted by such manufacturer, distributor, wholesaler, or jobber from dealers in cities other than St. Louis, Mo., or East St. Louis, Ill., where delivery thereof is to be made in St. Louis or East St. Louis. . 3, The practice and requirement that requests from ultimate consumers to buy merchandise from such manufacturer, distributor, wholesaler, or jobber to be billed through some retail dealer be refused, and such ultimate consumer be required to purchase from a "regular'' retail dealer.

4. The practice and requirement that no merchandise may at any time be donated by such manufacturers, distributors, wholesalers, or jobbers, or placed on a consignment basis with anyone, except for a short period of time for window or floor display purposes only. 5. The practice and requirement that no sales or deliveries of merchandise shall Le made by such manufacturers, distributors, wholesalers, or jobbers to homes of ultimate consumers, and no mer- <:handise shall be sold to salesmen for any retail furniture dealer unless the same is sold to, billed, and delivered to such dealer. G. The prnctico nnd requirement that manufacturers, distributors, wholesalers, and jobbers shall not sell merchandise to concerns w~o sell at retail and who in so doinfl' hold themselves out to the public and to their ' retail customers as contract0 home furmshers• operatmg• on a basis similar to that of wholesalers.

7. The practice and requirement that no manufacturer, distributo~, wholesaler or jobber shall go upon the sales floor of any retail dealer and talk to purchasers or prospective purchasers of the line . 370 FEDERAL TRADE COMMISSION DECISIONS Complaint 24F.T.C.

of merchandise offered for sale in that retttil store or department thereof.

PAR. !), That said so-called carrying charge was and is used by and imposed upon the purchasing public by respondent members, who variously designate the same as a service charge, budget charge, credit charge, time payment plan, and other like terms; but however designated, said carrying charge was and is usually represented to the public by respondent members as being an interest charge on deferred payments of the purchase price, at the rate of one-half of one percent per month, or six percent per annum. Such representations so made to the public by respondent members were and are false and misleading, since in truth and in fact the said carrying charge in no case constitutes an interest charge at said rate upon deferred payments of the purchase price. On the contrary it is either an interest charge on the entire principal amount of said deferred payments for the full installment period, in which case the purchaser is charged interest on installment payments of the principal after the same are liquidated1 or it is intended to and does include items other than interest, estimated in advance a~ to amount, such as office and accounting expense, the expense incident to repossession of chattels in case of default by some purchasers in the payment of deferred installments, loss of or damage to chattels repossessed from defaulting purchasers, legal and collection expense and other items attributable to defaulting purchasers. The true nature and make-up of said carrying charge is not in most cases divulged to the purchaser, and the imposition by respondent members of such carrying charge upon purchasers of furniture and allied products on installment payments as above set forth, substantially prejudices and injures those members of the purchasing public who are unable to pay cash for their purchases for such products and those installment purchasers who do not default in their obligations, n.ml unfairly and unreasonably enhances the price of such commodities to such purchasers, with a resulting dis~rimination against them. PAn.lO. That for the purpose of makmg such sales methods, policies and requirements effective and of requiring compliance therewith by all competing retail dealers in furniture and allied products in the several states constituting the trade area adjacent to St. Louis, by manufacturers, distributors, and jobbers trading therein, and by the ultimate purchasin~ public located therein, said respondent Association, acting through its officers and executive Loarll, and with the knowledge, consent, approval, and active cooperation and participation of respondent members, did the following things: 1. Issued bulletins, circulars, and other printed matter, and distributed the same among its members, and caused the same to be sent RETAIL FURNITURE DEALERS' ASS'N OF ST. LOUIS, ET AL. 371 362 Complaint to manufacturers, distributors, and others, in which printed matter the respondent Association announced the adoption by it on behalf of its members of the selling methods, policies, and requirements above described.

2. Issued bulletins and circulars, which it sent to its members and to manufacturers, distributors, and others, in which bulletins and circulars were set forth the names of retail furniture dealers who did not observe, or who failed or refused to follow or abide by the sales methods and policies adopted as aforesaid by the said Association. 3. Issued bulletins and circulars listing the names and products of manufacturers and distributors who did not follow, or who failed or refused to abide by its said sales methods and policies which bulletins and circulars were distributed by it among its members and others, with the result that certain of its members thereafter refused to buy, or threatened not to buy further merchandise from such offending manufacturers and distributors. . 4. Issued bulletins and circulars to its said members and to others, setting forth the names of manufacturers and. distributors who cooperated, or agreed. to cooperate, in the enforcement of the said sales method.s and policies ad. opted by the said Association, which bulletins suggested and proposed. that the members of the Association should patronize such manufacturers and distributors who cooperated or agreed to cooperate with the said. Association. 5. Appointed a committee of its members, with instructions to inform, and which committee members d.id inform, manufacturers and distributors that, unless such manufacturers and distributors agreed to and did cooper~te with the respondent Association, then the members of the said Association would discontinue buying the line of merchandise sold by such manufacturers and distributors. 6. Acquainted manufacturers and distributors with the names of those persons or concerns engaged in competitive busillesses with its members, who, so respondents asserted, were not entitled and should not be pennitted to buy furniture at wholesale prices. 7. Sought and obtained promises and assurances of coopernti?n by manufacturers wholesalers, and jobbers to the end that all ultimate consumers of ~1erchandise would be refused the advantage of buying at wholesale, and would be required to purchase inerchandise only through regular retail stores.

PAn. 11. The capacity, tfndency, and effect of said plan, program, agreement combination conspiracy, confed.erution, and. undertaking, and. the said' acts and practices' and selling methods and po I'icies. of said respondents in pursuance thereof, hereinabove set forth, are 372 FEDERAL TRADE CO.l\11\IISSION DECISIONS Complaint 24F.T. C.

and have been in the trade area in and around the cities of St. Louis, Mo. and East St. Louis, Ill., the States of Missouri and Illinois, and adjoining States:

1. To monopolize in said respondent members, and "regular" dealers, the business of dealing in and distributing furniture and allied products, including electric refrigerators and radios. 2. To unreasonably lessen, eliminate, restrain, stifle, hamper, and suppress competition in the said retail furniture and allied products trade and industry, and to deprive the purchasing and. consuming public of advantages in price, service, and other considerations which they would receive and enjoy under conditions of normal and unobstructed. or free and fair competition in said trade and industry; and to otherwise operate as a restraint upon and a detriment to the freedom of fair and legitimate competition in such trade and industry. 3. To fix prices at which furniture and allied products, including electric refrigerators and radios, are sold. at retail in said trade area. 4. To substantially increase the cost to purchasers of such furniture and allied products.

5. To suppress, eliminate and discriminate against small business enterprises which are or have been engaged in selling and d.istributing furniture and allied products.

6. To obstruct, hamper nnd in1erfere with the normal and natural flow of trade aml commerce in furniture and. allietl products, into, through and from said. trade area; and to injure respondents' competitors in unfairly diverting business and. trade from them, depriving them thereof, and otherwise driving or "freezing" them out of business. . 7. To prejud.ice and injure tho public, and manufacturers, producers, dealers, distributors, and. others who do not conform to respondents' program or methods, or who d.o not desire to conform to them, but are compelled. to do so by the concerted action of respondents herein alleged.

PAn. 12. The above alleged. acts and. things done by respondents have a dangerous tendency unduly to hinder competition in the furniture and. allied products trade in said trade area, and to create ll monopoly thereof in the hands of respondents, and constitute unfair methods of competition in commerce within the meaning of Section 5 of an Act of Congress entitlNl "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes," approved September 2G, 1914.

RETAIL FURNITURE DEALERS' ASS'N OF ST, LOUIS, ET AL. 373 362 Findings REPORT, FINDINGS A'3 TO TIIE FACTs, AND Onder 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 !ederal Trade Commission, on the 9th day of April, A. D., 1936, Issued and served its complaint in this proceeding upon respondents, Uetail Furniture Dealers Association of St. Louis, and its officer3, executive board, and members, as hereinafter particularly designated and enumerated, charging them with the use of unfair methods of competition in commerce in violation of the provisions of said act. Thereafter, said respondents, after having filed their answers to said complaint, filed herein a certain stipulation as to the facts to be taken as the only facts in this proceeding and in lieu of testimony which might be adduced in support of and in opposition to the complaint and answers herein, which said stipulation has been approved by the Commission. And said respondents, in said stipulation as to the facts so filed by them, consented that the Commission might proceed Upon the statements of fact therein contained, including such inferences as it may draw from such facts,. to make its findings and its conclusion based thereon and to enter its order disposing of the proceeding without presentation of argument or the filing of briefs. Thereafter, the proceeding regularly came on for final hearing before the Commission on the said complaint, the answers thereto and said stipulation as to the facts, and the Commission having duly considered the same and being now fully advised in the premises, finds that this proceeding is in the interest of the public and makes this its findings as to the facts and its conclusion drawn therefrom: FINDINGS AS TO TTIE FACTS PARAGRAPH 1. Respondent, Retail Furniture Dealers Association of St. Louis, is a non-profit corporation organized under the laws of the State of Missouri, by virtue of a certain decree and order made and entered by the Circuit Court of the city of St. Louis, Mo., on Dec~m­ btr 17 1923 · that said corporation was or~'~'anized for the followmg ' ' t:'J f . dlexpressed purposes: Promoting the interest of, and t? secure nen . Y connections between retail furniture dealers in the city of St. Loms, State of Missouri· to promote and combine the influence and intelli~'~'<'nce of its rr:members • for the protection of their trade0 agn.inst ,.., ' 1 dimposition injustice or encroachment upon their common rig 1ts an0 interests; to' foster ' and interchange thoughts and H'1 eas f or t h e1r mutual benefits as a result of the experience and ability of all; to urge and encourage national, State, and city legislation for the 374 FEDERAL TR.illl~ COl\Il\!ISSION DECISIONS Findings 24F.T.C.

furtherance of the interest to just laws; to secure for its members equitable treatment in all their business dealings with manufacturers of, and dealers in, furniture supplies; to recommend the abolishment of the practice of some manufacturers and wholesale furniture dealers of peddling and selling goods at retail to the detriment of the retail line of business; to disseminate knowledge and information among its members relating to, and in connection with, the retail furniture business; to give and hold furniture and household shows and exhibits from time to time; to do such other acts and things as do or may tend to accomplish the purpose of the said corporation and a.re within the laws of the State of Missouri and the United States; that the principal office and place of business of said association is located at 926 Chemical Building, St. Louis, Mo. PAn. 2. The membership of said respondent association is composed of individuals, firms, and corporations who carry a stock of furniture or kindred wares, and who are engaged as principals in retailing the same from their own places of business in the city of St. Louis, Mo., or the city of East St. Louis, Ill. That under the bylaws which have been regularly adopted for the regulation of said respondent associa· tion, tho government and control thereof is vested in the officers, consisting of a president, a vice-president, a secretary, and a treasurer, and in an executive board composed of the president, vice· president, and representatives of six members of said respondent association elected by the members.

PAn. 3. That the following named respondents have been and are members of said respondent association, and as such have exercised the privileges of and assumed the liabilities incident to such membership, to wit:

Mnnne Drothers Furniture Company, a corporation organized under the laws ot the State ot Missouri, with tts principal office and place ot business at ti613-15 Delmar Doulevard, St. Louis, 1\Io. Unlon-1\fay-Stern Company, a corporation or~:anlzed under the laws ot the State ot 1\llssourl, with Its principal office at 1120-30 Olive Street, St. Louis, Mo. Goldman Dros., Inc., a corporation organized under the laws ot the State ot Mls!!ourl, with Its principal office and place ot business at 1182 Olive Street, St. Louts, 1\lo.

Lammert Furniture Co., a corporation organized under the laws ot the State ot Missouri, with Its principal offlce and place ot business nt 911-921 Washington Ave., St. I.ouls, Mo.

IIellrung & Grim House Furnishing Co., a corporation organized under the laws ot the State ot Ml!:;sourl, with Its principal offlce and place ot business at 006 Washington Boulevard, St. Louis, Mo.

StPin Furniture Company, a copartnership, with Its principal omce and place ot business at 000 Franklin Street, St. Louts, Mo. RETAIL FURNITURE DEALERS' ASS'N OF ST. LOUISI ET AL. 375 Findings American Furniture Co., a corporation organized under the laws of the State of Missouri, with its principal office and place of business at 708 Franklin Avenue, St. Louis, Mo.

nhodes-Burford House Furnishing Co., a corporation organized under the laws of the State of Kentucky, with its principal office and place of business at 817 North 11th Street, St. Louis, Mo.

Gregson Furniture Co., a corporation organized under the laws of the State -of Missouri, with its principal office and place of business at 4230 North Broad· way, St. Louis, .Mo.

Dau, The Uouse Furnisher, Inc., a corporation organized under the laws -of the State of Missouri, with its principal office and place of business at 2730 North Grand Avenue, St. Louis, Mo.

Ideal Furniture Co., a proprietorship with Its principal office and place of business at 5055 Easton Avenue, St. Louts, Mo. lless-Dickman Furniture Co., a corporation organized under the laws of the State of Missouri, with its principal office and place of business at 2814-2818 Chippewa Avenue, St. Louis, Mo.

1\Iosley-Thuner Furniture Co., a corporation organized under .the laws of the State of Missouri, with Its principal office and place ot business at 2122 South Droadway Street, St. Louis, Mo.

John Alt Furniture Co., a corporation organized under the laws of the State of Missouri, with its principal office and place of business at 1510 South Broad· Wa)' Street, St. Louis, Mo.

Arnold Furniture Co., a corporation organized under the laws of the State of Missouri, with its principal office and place of business at 5000 Gravois Avenue, St. Louis, Mo.

Buettner Furniture Co., a corporation organized under the laws of the State ot Missouri, with Its principal office and place of business at 1007 Olive Str~et, St. Louis, :Mo.

J. D. Carson, Inc., a corporation organized under the laws of the State of Missouri, with its principal office and place of business at 1116 Olive Street, St. tous, Mo.

Dyer Bros., a copartnership with its principal office and place of business at 1422 North Grand Avenue, St. l..ouls, Mo.

Engle Furniture Co., a corporation organized under the laws of the State of Allssourl, with its principal office and place of business at 1001 Franklin Avenue, St. Louis, 1\Io, Gausmann-I'parker House Furnishing Co., a corporation organized under the laws of the State ol l.flssourl, wHb Its prlnclpai office and place ot business at 8200 North Broadway, St. Louis, .Mo.

Geltz House Furnishing Co., a corporation organized under the laws of the State ot 1\Ilssourt, with its principal office and place of business at 4706 Easton Avenue, St. Louis, Mo.

J. C. Geltz Sewing 1\Iacblne and Furniture Co., a corporation organized under the laws of the State of .Missouri, with Its principal office and place of business at 1315 North 1\Iarket Street, St. Louis, .Mo. General Furniture Company, a proprietorship with Its principal office and place of business at 2000 South Jefferson Street, St. Louis, Mo. Dome Furniture Co., a corporation organized under the laws of the State of Missouri, with its principal office and place of business at 4206 Manchester A. venue, St. Louis, 1\.lo.

376 FEDERAL TRADE COl\IMISSION DECISIONS Findings 24F.T.C.

Hub Furniture Co., a corporation organized under the laws of the State of 1\:llssouri, with its principal office and place of business at 701 Washington A venue, St. Louis, 1\lo. · Igoe House Furnishing Co., a corporation organized unuer the laws of the State of Missouri, with Its principal office and place of business at 2741 North Grand Avenue, St. Louis, 1\Io.

Kassing Goesen House Furnishing Co., a corporation organized under the laws of the State of Missouri, with its prtnclpal office and place of business at 2G07 North 14th Street, St. Louis, 1\Io.

Knost Dockwinkel Furniture Home, Inc., a corporation organized under the laws of the State of Missouri, with Its principal office and place of business at 3211 Olive Stt·eet, St. Louis, l\Io.

Kobusch & Cornwall Ilome Furnishers, Inc., a corporation organized under the Jaws of the State of Missouri, with its principal office and place of businc;;s at 3G01 West Florissant Avenue, St. Louis, l\Io. Lauer Furniture Co., a corporation organized under the laws of the State of 1\Iissouri, with its principal office anti place of business at 825 North Sixth Street, St. Louis, Mo.

National Honse Furnishing Co., a corporation organized under the laws of the State of Illinois, with Its principal office and place of business at 132 CollinsTille Avenue, East St. Louis, Ill.

Prossers Furniture and Storage Co., a corporation organized untler the laws of the State of Missouri, with its principal otnec and place of business at 3218 Olive Street, St. Louis, 1\Io.

Frank L. Schaab Stove and Furniture Co., a corporation organized under the laws of the State of 1\Iissourl, with Its principal otnce and place of business at 2022 South Broadway, St. Louis, l\1o.

Steiner-Schwartz Furniture Co., a corporation organized under the laws ot the State of Missouri, with Its principal oflice and place ot business at 2000 North 14th Street, St. Louis, 1\Io.

'Ve!lst<>n l!~furniture Co., a coi·poration organized under the laws of the State of Missouri with Its principal office and place of bu:-iness at Ci!>ll Easton Avenue, St. Louis, lllo.

Westhus Furniture Co., a corporation organized under the laws of the State of Missouri, with lts principal office and place of business at 2001 South Drondwny, St. Louis, lio.

PAn. 4. That the following named respondents have Leen or are officers of said respondent association, to wit: Peter 1\I. Igoe, president, repreesnting respondent, Igoe House Furnishing Co., 2741 North Grand Avenue, St. Louis, 1\Io. Joseph Manne, president, representing respondent, Manne Brothers Furni· ture Company, 5G13-15 Delmar Doulevnrd, St. Louis, Mo. Joseph n. Ilellrung, Yice presiuent and trrasm·er, rf'presentlng respondent, Ilellrung & Grimm llom:c Furnishing Co., !)(lG Wn~hlngton Doulevanl, St. Louis, l\lo.

Shirley D. GrPgson, vice president, representing respomlent, Gregson Fnrn!tur~ Co., 4230 North Broadway, St. Louis, lllo.

Fred C. Dan, treasurer, rppresenting respondent, Dau, The House Furnisher, Inc., 2730 North Grand Avenue, St. Louis, Mo. Gail D. Ussery, secretary, 9"..!6 Chemical Duildlng, St. Louifj, 1\Io. RETAIL FURNITURE DEALERS' ASS'N OF ST. LOUIS, ET AL. 377 262 Findings The following named respondents have been or are members of the executive board of said respondent association, in addition to the presidents and vice presidents above named, to wit: Benjamin Weisman, representing respondent, Union-1\Iay-Stern Company, 112(}- 30 Olive Street, St. Louis, 1\Io.

Martin Lammert, 3rd, representing respondent, Lammert Furniture Co., 911- 921 Washington Avenue, St. Louis, Mo.

Joseph B. IIellrung, representing respondent, Hellrung & Grimm House Furnishing Co., 006 Washington Boulevard, St. Louis, Mo. Joseph Agatstein, representing respondent, Stein Furniture Company, 000 Franklin Street, St. Louis, Mo.

Joseph Lasky, representing respondent, American Furniture Co., 708 Franklin Avenue, St. Louis, Mo.

Fred C. Dau, representing respondent, Dau, The House Furnisher, Inc., 2730 North Grand Avenue, St. Louis, Mo.

Chas, Steiner, representing respondent, Ideal Furniture Co., 5005 Easton Avenue, St. Louis, Mo.

0. W. Dickman, representing respondent, IIess-Dickman Furniture Co., 2814- 2818 Chippewa Avenue, St. Louis, Mo.

James A. Mosley, representing respondent, Mosley-Thuner Furniture Co., 2122 South Broadway, St. Louis, Mo.

PAn. 5. That some of the several members of said respondent association, in the course and conduct of their respective businesses, Purchase furniture and allied products, including, in most cases, el~ctric refrigerators and radios, from various manufacturers, distributors, wholesalers, jobbers, and dealers located in many different States of the United States and cause said commodities so purchased to be transported from the State of origin thereof, including States other than the States of Missouri and Illinois, to, into and through Various States of the United States, and into the States of Missouri and Illinois; that some of said members resell said furniture and n1erchandise at retail to various members of the consuming public located in the States of l\Iissouri and Illinois and in other States of the trade area adjacent thereto; that said commodities are ordinarily purchased at wholesale or from the manufacturer by some of said members with the intention and for the purpose of reselling and delivering the same at retail to purchasers located in the States of Missouri and Illinois, and States adjacent thereto, such resales being made from the respective places of business of said members, where said goods are assembled and displayed for sale for varying periods of time; that some of said members, upon sales at retail being made to purchasers deliver and transport or cause to be delivered and transported said goods so sold into the States of Missouri and Illinois to the purchasers thereof located in the States of l\Iissouri and Illinois, and other States adjacent thereto; that some of said Findings 24F.T.C.

members of said respondent association are, and have been during all the time herein mentioned, engaged in commerce between and among different States of the United States, and some of said mem· hers above named are and have been engaged in trade, business and commerce having a direct and substantial effect upon interstate. commerce in furniture and allied products, including electric refrig· era tors and radios.

PAn. 6. That in the course and conduct of their said businesses, some o£ said members of said respondent association are in substan· tial competition with other persons, firms and corporations engaged in the sale at retail and distribution of furniture and allied productst including electric refrigerators nnd radios, in the Stutes of Missouri and Illinois, and in the trade area extending into other States adjacent thereto; that said competitors likewise purchase their wares, at wholesale or from manufacturers in various States of the United States, and transport them or cause them to be transported to, into and through States other than the States of Missouri and Illinois to their respective places of business in said trade area and resell and deliver the same at retail to consumers located in the States of Missouri and Illinois, and States other than the State in which said competitors' respecth·e places of business are located; that sa,id competitors are engaged in commerce between and among the different States of the United States and in trade, business and commerce having a direct and substantial effect upon interstate commerce in furniture and allied products, including electric refrigerators and radios.

PAn. 7. That in pursuance of the objects for which said respondent association was incorporated, and for the purpose of enhancing and promoting the volume of trade, business and profits of its members in the course and conduct of its activities, the said Retail Furnituro Dealers Association of St. Louis, acting through its officers, executive board, und agents has sought to put into effect, and has to some extent put into effect, certain policies, sales methods and trade practices hereafter described. That said respondent association has for the period from August 1, 1033 to :May 27, 1035, pursued a course of action to adopt, follow, carry out, enforce, and maintain in a number of States comprising the trade area in and surrounding the cities of St. Louis, 1\fo. and East St. Louis, Ill., certain policies, sales methods and trade practices, hereafter described, which said respondent as· socintion attempted to or did by persuasion require the adoption and observance of by manufacturers, distributors, wholesalers, and jobbers engaged in interstate commerce and trading in said area. RETAIL FURNITURE DEALERS' ASS'N OF ST. LOUIS, ET AL. 379 862 Findings PAR. 8. That said policies, requirements, sales methods, and trade practices, referred to in the preceding paragraph, specifically consist of the following:

Requests to wholesalers, jobbers, and manufacturers selling furniture and allied products in said trade area that they adopt, follow, and adhere to :

1. The policy and practice that no sales of furniture or allied products be made by manufacturers, distributors, or jobbers, directly to the ultimate consumer thereof, to employees of such manufacturers, distributors, and jobbers, except for the personal use of said employees, or to contractors, institutions, hotels, apartment house operators, real estate dealers, or large industrial plants. 2. The policy and practice that no orders for merchandise be accepted by such manufacturer, distributor, wholesaler, or jobber from dealers in cities other than St. Louis, Mo., or East St. Louis, Ill., where delivery thereof is to be made in St. Louis or East St. Louis. 3. The policy and practice that requests from ultimate consumers to buy merchandise from such manufacturer, distributor, wholesaler, or jobber to· be billed through some retail dealer be refused, and such ultimate consumer be required to purchase from a "regular" retail dealer.

4. The policy anu practice that no merchanuise may at any time b~ donated by such manufacturers, distributors, wholesalers, or jobbers, or placed on a consignment basis with anyone, except for a short period of time for window or floor display purposes only. 5. The policy and practice that no sales or deliveries of merchandise ~hall be made by such manufacturers, distributors, wholesalers, or Jobbers to homes of ultimate consumers, and no merchandise shall be soltl to salesmen for any retail furniture dealer unless the same is sold to, billed and delivered to such dealer. 6. The policy unu practice that manufacturers, distributors, wholesalers, and jobbers shall not sell merchandise to concerns who sell at retail, and who in so uoing hold themselves out to the public and to their retail customers as contract home furnishers operating on a basis similar to that of wholesalers.

7. The policy and practice that no manufacturer, distributor, wholesaler, or jobber shall go upon the sales floor of any retail dealer and talk to purchasers or prospective purchasers of the line of merchandise offered for sale in that retail store or department thereof . • PAn. 9. That for the purpose of making such sales methods, poli- Cies and practices effective and of requiring compliance therewith by all manufacturers, distributors, and jobbers trading therein, said 380 FEDERAL TRADE COMl\IISSION DECISIONS Findings 24F.T.C.

respondent association, acting through its officers and executive board, did the following things:

(1) Issued bulletins and letters and distributed the same among its members, and caused the same to be sent to manufacturers and distributors, in which printed matter the respondent asrociation announced the adoption by it of the selling methods, policies, and practices above described.

(2) Issued bulletins or circulars to its said members, setting forth the names of manufacturers and distributors who cooperated, or agreed to cooperate in the enforcement of the said sales methods and policies adopted by the said association.

(3) Acquainted manufacturers and distributors with the names of those persons or concerns who respondent association asserted were not entitled and should not be permitted to buy furniture at wholesale prices.

( 4) Sought and obtained promises and assurances of cooperation by manufacturers, wholesalers, and jobbers to the end that all ultimate consumers of merchandise would be refused the advantage of buying at wholesale, and would be required to purchase merchandise only through regular retail stores.

PAR, 10. That in addition to the foregoing, some of the said members of respondent association, at association meetings, discussed and advocated the adoption by the association of the policy that all members thereof impose a carrying charge in addition to the advertised cash price for merchandise sold on installments or deferred payment plan; that without authority from such association said members interviewed certain manufacturers, distributors, jobbers, and wholesalers engaged in interstate commerce in said trade area in furtherance of their desire that manufacturers, wholesalers, and jobbers adopt a policy of selling only to retail dealers in said area who impose such a carrying charge; that in some cases during said interviews some of said members did intimate that they did not intend to purchase products handled by such manufacturer, distributor, jobber, or wholesaler if the latter sold or continued to sell such products to those retail dealers who did not use or impose such carrying charges.

PAR. 11. The Commission concludes from the foregoing that the capacity and tendency of the aforesaid activities of rpspondents, as set forth in paragraphs 8, 9, and 10 above, was to instill into the minus of some of said manufacturers, distributors, jobbers, and wholesalers the belief that said respondent association had adopted and was pursuing the practices and policies above set forth and was requiring all its members to impose a carrying charge in addition to RETAIL FURNITURE DEALERS' ASS'N OF ST. LOUIS, ET AL. 381 3G2 Findings the advertised cash price for merchandise sold on installments or deferred payment plan, and the belief that respondent association was attempting to compel such manufacturers, distributors, jobbers, and wholesalers to desist from selling their respective lines of merchandise to dealers competing with respondent members, who did not conform to such practices and policies and who did not impose such carrying charges upon their customers; that the capacity and tendency of said activities was to induce some of said manufacturers, distributors, jobbers, and wholesalers to believe that if they persisted in selling their said merchandise to furniture dealers who did not conform to such policies and practices or who did not impose such carrying charges, the members of respondent association would cease buying such lines of merchandise from said manufacturers, distributors, jobbers, and wholesalers, and as a result had the tendency to impel the latter to refuse to sell their lines of merchandise to furniture uealers in and around St. Louis, Mo., and East St. Louis, Ill., who did not conform to such practices and policies and who did not impose said carrying charges upon their respective customers. PAR. 12. The Commission further concludes that the capacity and tPnclency of said plan, program, and undertaking, and the said acts and. practices anu selling methous and policies of said respondents in pmsuance thereof, are and have been in the trade arra in and around the cities of St. Louis, Mo., aml East St. Louis, Ill., the States of Missouri and Illinois, and adjoining States: ( 1) To monopolize in certain respondent members, the business of dealing in and distributing furniture and allied products, including electric refrigerators and radios.

(2) To lessen and restrain competition in the said line of commerce, and to deprive the purchasing and ccnsuming public of ad- Yantnges in price, service aml other considerations which they would receive and enjoy under conditions of normal, unobstructed, free and fair competition in said line of commerce.

(3) To substantially increase the cost to purchasers of such furniture and allied products.

( 4) To discriminate against some business enterprises which are or have bl.'en engaged in selling and distributing furniture and allie(l products.

(5) To obstruct, hamper and intl'rfere with the normal and natural flow of trade and commerce in furniture and allied products, into, through, and from said tratle area.

(H) To prejudice and fl'ttPr the public and manufacturers, producers, distributors and competing retail dealers who do not conform to 1'(':-;poudenb' program or methmls, or who did not desire to do so. Hoj7:itl"' ::n 'ol. 24-27 Order 24F. T. C.

CONCLUSION The aforesaid acts and practices of the respondents are to the prejudice of the public and of respondents' competitors, and constitute unfair mrthods of competition in commerce, within the intent and meaning of Srction 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 This proceeding having been heard by the Federal Trade Commission on the complaint of the Commission, the answers of the respondents, and the stipulation as to the facts executed by the respondents, Retail Furniture Dealers' Association of St. Louis, and its olficers, executive board, and members, as hereinafter designated and enumerated, said stipulation having been heretofore filed herein, and the Commission having made its findings as to the facts and its conclusion that said respondents have violated the provisions of an Act of Congress approved Srptember 26, 1014, entitled "An Act to create a Federal Tmde Commission, to define its powers and duties, aml for other purposes."

It i8 ordered, That respondent, Retail Fumiture Dealers' Association of St. Louis, and its oflicers, executive board, members, agents, representatives, and employees, particularly the following: 1\lnnne llrotlwrs J<'nrnlture Company, a <·orporatlon; l.Jnion-1\Iny-Stern Company, a corporation; Goldman llros., Inc., n corporation:

I.nmnwrt Furniture Co., u corporation:

IIP!lrung & Grimm House Fumishing Co., n corporation; Stf'in l<'nl"lllture Company, a co-partnrrship; Amt>rlcau l•'urnit nre C'o., n corporation; Hlwdt>s-Burforu House Furnishing Co., a corpomtion; Grrgson Furniture Co., a cortloration;

Dan, 'thp Jiousc Fm·ulsht'r, Juf'., a corporation; Idt•Hl Furuiture Co., a proprietor!<hlp:

llp~;s Dickman Furniture Co., a corporation: 1\Io.-l~>y-'l'hunrr Furniture Co., a corporation: John Alt Furniture Co., a cor·poration;

Arnold Furniture Co., 11 rorporatlou;

Buettner l<'furniture Co., a corporation;

J. D. C'arson, Inc., a corporation;

Dyer Dros., n <'o-pnrtnershlp;

J<~ngle Furniture Co., a corporation;

Gausmnnn·turk<'r House }'urniRhlng Co., a corporation; Gt>ltz I louse l<'urnh;hlng Co., n corporation; J. C. Gt>itz RPwlng l\IadJine and Furniture Co., a corporation; Genel·ul l<'furniture Company, a prop1·1etorshlp; RETAIL FURNITURE DEALERS' ASS'N OF ST. LOUIS, ET AL. 383 Or1ler IIome Furniture Co., a corporation;

Huh Furniture Co., a corporation;

Igoe House Furnishing Co., a corporation;

Kar~ing Goe;;en Honse Furnishing Co., 11 corporation; Knost nockwinkel Furniture Home, Inc., a corporntlon; Kobnsch & CormvaU Home Furnishers, Inc., 11 cor11oration; I.an<>r Furniture Co., 11 corporation;

National House Fnrnl;;hing f'o., a corporation; Pros~ers Fnrnltnre nnd Storage Co., a corporation; Frnnk L. Seh11ah Stove and Furniture Co., n corporation; :;;teiuer·Sehwarz Furniture Co., 11 corporation; \Vellston Furniture Co., a corporation;

\VPsthus Furniture Co., n corporation;

members of said association; and Peter l\1. Igoe, .Tosf'ph Manne, Josf'ph B. Hellrung, Shirley D. Gregson, Fred C. Dan, Gail D. Ussf'ry, Benjamin \Veisman, Martin Lanunert, 3rd, Joseph Agatstein, Joseph Lasky, Charles Steiner, 0. "\V. Dickman, and .Tames A. Mosley, ns officers or executive board ml:'myers of said association, in connection with the purchase, sale anll distribution of furniture and ollied products, including radios and e]eetric refrigerators in inter1-·Jnte commerce in anll around St. Louis, l\lo., and East St. Louis, Ill., and elsewhere, in pursuance of any• ai.!Tl'C'lllent,. or uJHlerstnmlinO'M forthwith <'Pnse and desist from: I. Adopting, following, carrying out, enforcing, maintaining, or ath•mpting to put into effect any of the following policies, standards, s:tle nwthous, practices, requirements, or usage, to wit: 1. Thr collective policy and practice that retail furniture dealers require ojl all sales of merchandise made to ultimate consumers on deferred time or installment payment:; that there be added and imposed a s<•parate uniform carrying charge over the regular advertisrllretail cash price of such merchandise, for the extension of credit by such retail dealers to customers and for the privilege extended to purchasers of paying the purchase price in installments over an agre<'1l period of time.

2. The policy and practice that no sales of furniture or allied products shall he made by manufacturers, distributors, wholesalers or joLlJers dir·ect ly to E:'mployees of such manufacturers, distributors, wholesalers or jol,J,ers, except for the personal use of said f'mployees, or to contractors, institutions, hotels, apartment house opetators, rE:'al estate' dl•ah•rs, or large industrial plants. 3. The policy and practice that no orders for merchandise shall be aceeptell by such manufacturers, distributors, wholesalers, or jobbers from dealers in cities other than St. Louis, Mo., or Enst St. Vmis, Ill., wlwre delinry thereof is to be m111le in St. Louis or East St. Louis.

384 FEDEitAL TUADE CO:\fl\IISSION DECISIO::\I"S Onler 2-!F. T. C. 4. The policy and practice that requests from ultimate consumers to buy merchandise from such manufacturers, wholesalers, distributors, or jobbers to be billed through some retail dealer be refused, and such ultimate consumer be required to purchase from a "regular" retail dealer.

5. The policy and practice that no merchandise may at any time be donated by such manufacturers, distributors, wholesalers or jobbers or placed on a consignment basis with anyone, except for a short period of time for window or floor display purposes only. 6. The policy and practice that no sales or deliveries of merchandise shall be made by such manufacturers, distributors, wholesalers or jobbers to homes of ultimate consumers, and no merchandise shall be sold to salesmen for any retail furniture dealer unless the same is sold to, billed and delivered to such dealer. 7. The policy and practice that manufacturers, distributors, wholesalers and jobbers shall not sell merchandise to concerns who sell at tetail, and who in so doing hold themselves out to the public and to their retail customers as contract home furnishers operating on a basis similar to that of wholesalers.

8. Tlle policy ancl practice tllat no m:untfncturer, distributor, wholesal<'r, or jobber shall go upon the sal<'s floor of any retail dealer and talk to prosp<'ctive pnrchHs<'rs of the lin<'s of merchandise offered for sale in that retail store or a department thereof. II. Collectively advocating, recommending, or requiring by per- !:'uasion, competitive pressure, compulsion or any otlwr method of any description, the adoption, use or maintenance of either or any of the policies or practices set forth in Paragraph I hereof, by rrtail fmniture dealers, or by manufacturers, joblX'rs, distributors, wholrsalcrs, or dealers, to he usell or put into effect in the course and conduct of their business.

III. J>publishing or distributing circulars, bulletins, adn-'rtisemcnts, or printed matter of any d£'scription announcing the adoption of or ad nJcating the use of the policies and practices set forth in Paragraph I above.

IV. Publishing or distributing circulars, hulletins, tuherti:'-Pments, or printell mutter of any description setting forth t•itht>r the llUlllPS of retail furniture dealers who have, and do, or those who hare not or do not us£>, obsN·ve, m·nbide by the policies and practicrs set forth in pamgrnph I uhove, or listing the names and products of manufacturer~ ana distributors who have and tlo, or those who h:n·e not and do not follow nnll use till' sales"l methcJlls and policies !:et forth in said paragraph.

RETAIL FURNITURE DEALERS' ASS'N OF ST. LOUIS, ET AL. 38.') 302 Order V. Publishing or distributing circulars, bulletins, advertisements, or printed matter of any description setting forth the names and products of manufacturers and distributors who han~ cooperated or agreed to cooperate in the enforcement of the said policies and practices set forth in Paragraph I above, or suggesting or proposing that the members of the respondent Association shall patronize such manufacturers and distributors who so cooperate or agree to cooperate with said Association.

VI. Informing, manufacturers, jobbers, wholesalers, or distributors, by the use of any means whatsoever, that unless they or any of them agree to, and will adopt awl use the policies and practices set forth in Paragraph I above, the member.::> of respondent Association or any of them will discontinue buying the line of merchandise sold by such manufacturers, jobbers, wholesalers, or distributors. VII. Iufo11ning manufacturers, jobbers, wholesalers or distributors by the use of any means whatsoever, of the names of those persons or concerns who are engaged in competitive business with members of the respondent Association who refuse to follow the policies and ]>mctices s£>t forth in Paragraph I above, or notifying or advising any such manufacturer or distributor that any such person or concern should. not be permitted. to buy furniture or allied products at wholesale prices.

VIII. Sl'eking or obtaining promises or assurances of cooperation flom manufacturers or distributors to the end that all ultimate con· s1mwrs of merchandise be refused the advantage of buying at whole· ~ale and that they be required to purchase merchandise only through regular retail stores.

It i8 fwrther ordered, That said respondents named herein shall within 90 days from notice hereof file with the Commission, a report in writing, stating in detail the manner in which this order is being complied with and conformed to by them.

OilDErt CLOSI:\'G PROCEEDI!I;G AS TO CERTAIN RESPO!I;DENTS 1 This matter coming on for consideration by the Commission upon the record and upon the showing which has been made as to the pres- 1 Proc•·e•llng wn~ also tJ1ert'tofore dhml"~Pfl as to rl'spon<lent DledPrmnn Furniture Co. by fnllnwln~: nn!Pr Pn!Pr l hy CnmmJ~,Jnn 1111 April ~~. lO:lfl, mun•·ly: 'this- lllRttPr f'Oilllng on t I lip )lp:lrtl by thf' CollitllisHlnn upon thp ri'QIIf'~t or counsel for T<'Hpotul<'nt RiPtiPrmun Furniture Company of 801 ~·ranl•lln A\·enue, St. I.louis, lfissourl, for a dlsmiHRRI of the nbnvP <'ntltlPd pruct-<'din~ IIR n~o:nlnHt sal<l nnmPd r<•spomlPnt, and the Commission hnvlnl,t duly consldPred said requf'st and being now fully adv!Hed In the Premises;

It is ordered, That the above t•ntltl••il procf'Pding, os agnlnst r<•spondent RJpdermRn Furniture Company ond as the some alTt•cts snld respondent only, be and the snme hereby Is dinmlssf'd, without prl'judlce, however, to the right of the Commission to relnHtnte should conditions worront.

Order 24F. T. C.

ent status of certain of the respondents in the above entitled matter, and it appearing to the Commission that respondent Bly-1\foss Furniture Company, a corporation, is no longer engaged in business, and that respondents, Stanley Goldman and H. R. Mains are no longer resiuents of St. Louis, Mo., or officers of said respondent Association; and it further appearing to the Commission that respondents, Quality Furniture Company, a corporation, ·warring Furniture Company, a corporation, Kroemke Furniture Company, a proprietorship, and Luxemberg Furniture Company, a proprietorship, are not actively engaged in furthering the policies and practices of said respondent Association; and the Commission having duly considered said matters und being now fully advised in the premises; It is ordered, That the case growing out of the complaint herein· before issued on the 9th day of April, A. D., 1936, be, and the same hereby is closed as to respondents hereinabove named only without prejudice to the right of the Commission, should the facts so warrant, to reopen the same and resume prosecution of the complaint in accordance with its regular procedure.

HERBA MEDICINAL LABORATORY 387 Syllabus