George Landon

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IN THE MATTER OF GEORGE LANDON AND MICHAEL MASON WARNER, TRADING AS LANDON & 'VARNER COMPLAINT, FINDINGS, A~D ORDER IN REGAUD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT 01<' CONGRESS APPROVED SEPT. 26, 1014 Docket 2941. Complaint, Oct. 15, 1936-Decision, Apr. 5, 1931 Where two individuals engaged in the sale and distrilmtion of billfolds, Gladstoue handbags, and other similar products, in substantial competition with others engaged in sale and distributio~ of similar goods or articles in commerce between and among the various States, and with numerous competitors wbo make and sell their billfolds and aforesaid handbags, coveredI with leather made from the outside or top side of cow skin, after having been separated or split from the fie:<h side thereof, and properly described by makers of such products, and generally known by manufacturers and dealers and purchasing public as "cowhide," "genuine cowhide," "choiceII leather,'' and " .... A-1 quality leather," and for which articles and other! leather products thus made and generally known and described as afore· said, purchasing public generally has a pronounced and distinct prefer· ence-- ~a) Represented, through marks, stamps, aud brands in large letters on theirs said handba~s. that the same were genuine cowhide, and in advertising ~irculurs distributed widely among their customers aud prospective cus-I tomers, that the said handbags, thus offered, sold and distributed, were "made only of choice leather ... ," and of "A-1 quality leather," facts being handbags thus described were not made from the outside or top side of cowskin and were not genuine cowhide or made of choice leather or of A-1 quality leather, as ordinarily and commonly understood by purchasing public, but were compost>d of the much inferior, less durable, and cheaper split cowhide derived from the fiesh side of the skin; and (b) Uepresented; in their advertising circulars, that the initials of purchasers of said handbags were placed thereon in "14-K Gold" and that such initials would be encased within a "14-K Gold" frame, and, in their advertising catalogs distributed to their customers and prospective customers, that the metallic corners and snap-buttons on their billfolds were "14-K Gold," facts being said Initial letters and frames and metalUc corners and snapbuttons were not composed of "14-K gold,'' but, on the contrary, were 14-K gold plated;

\With capncityaiic1 tendency to mislead and deceive purchasing public Into the erroneous beliefs that the Gladstone handbags advertised, offered, and sold by them were made from the outside or topHide of cow skin and were genuine cowhide, choice leather, and A-1 quality leather, as represented by them, and that said articles, when purchased, would be stamped with initials of the purchaser in 14-K Gold and a 14-K Gold frame, and that the said billfolds' metallic corners aud snnp-buttons were 14-K Gold, and with capacity and tendency to induce members of the purchasing public to buy Said products because of the erroneous beliefs thus engcndPred, and to Complaint 24 F. T. C. divert trade unfairly to them from competitors engaged in sale in inter· state commerce or similar products, and who rightfully and truthtnllY represent the same and do not in any wise falsely represent their products; to the substantial injury of competition in commerce: IIeld, That such acts and practices were to the prejudice of the public and competitors and constituted unfair methods of competition. Before Mr. Roberts. If all, trial examiner. Mr. Astor Hogg for the Commission.

Complaint Pursuant to the provisions of an Act of Congress, approved Sep· tember 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 that George Landon and Michael Mason \Varner, Jr., trading as Landon and 'Varner, hereinafter referred to as respondents, have been and are using unfair methorls of competition in commerce, as "commerce" is defined in said act of Congress, and it appearing to the Commission that a procet'ding by it in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows:

PARAGRAPH 1. Respondents, George Landon and Michael Mason \Varner, Jr., are copartners, trading under the name and style of Landon and \Varner, with their office and principal place of business locatNl at 360 N.l\Iichigan Avenue, in the city of Chicago, Ill. They are now, and have been for more than one year last past, engaged in the business of selling and distributing billfolds, Gladstone bags, and other similar pro1lucts to members of the purchasing public in commerce, as herein set out.

PAR. 2. The respondents, being engaged in business as aforesai\1, cause and caused said products, when sold by them, to be transported from their principal place of business in the city of Chicago, Ill., to purchasers thereof located in the various Stares of the United States other than the State of Illinois, and in the District of Columbia. There is now and has been at all times mentioned herein a constant current of trade in commerce in said products sold and distributed by said respondents among and between the various States of the United States, and in the District of Columbia. PAR. 3. Respondents, in the course and conduct of their business are now, and have been at all times mentioned herein, engaged in substantial competition with other partnerships and with corpora· tions, firms, and individuals engaged in the sale and distribution of ' I LANDON & WARNI.:R 933 1i31 Complaint similar products in commerce among and between the various States of the United States, and in the District of Columbia. PAR, 4. Many of respondents' competitors, mentioned in paragraph '3 hereof, make and sell billfolds and Gladstone bags covered with leather made from the outside or top-side of cowskin after same has been separated or split from the, flesh-side of the skin. Such leather is described by makers of such products, and generally known by manufacturers, tanners, dealers, and the purchasing public as "cowhide," "genuine cowhide," "choice leather," and "A-1 quality leather." The flesh side of the cowskin is now used to some extent for the mak- -irig of leather, which leather is ordinarily known·and described as "split cowhide." It is very much inferior in quality and durability to, and cheaper in price than, "genuine cowhide," "choice leather," and "A-1 quality leather" as described in this paragraph. There is a marked preference on the part of the purchasing public for billfolds and Gladstone bags made from genuine cowhide, choice leather, and A-1 quality leather as described herein.· PAn. 5. In the course and conduct of their business as described herein, respondents, in offering for sale, selling, and distributing in interstate commerce their "Landon and lVarner" feature Gladstone bags represented and still represent by marks, stamps, and brands in large and conspicuous letters on the bags themselves that said Gladstone bags were and are "genuine cowhide," and they further represented and still represent in advertising circulars, circulated widely among their customers and prospective customers, that the Gladstone bags so offered for sale, sold, and distributed were "made only of choice leathers ... ," and of "A-1 quality leather." Said respondents in soliciting the sale of, and selling their Gladstone bags in interstate commerce represented, and still represent, in the advertising circular referred to that the initials of purchasers of said bags would be placed thereon in 14-K gold, and that such initials would also be encased Within a 14-K gold frame. Further, respondents in the aid of the sale of their billfolds under the trade name "Pasmaster," which billfolds were, and are, equipped with metallic corners and snap buttons, ·represented and represent in their advertising catalogs that said metallic corners and snap buttons were "14-K gold." PAR. 6. Said descriptions, representations, marks, stamps, and brands made by respondents as to their Gladstone bags and billfolds Were, and are, false and fraudulent in that: · 1. The Gladstone bags described as "genuine cowhide," "made of only choice leathers," and "A-1 quality leather" are not, and were not., gl'nnine cowhide, made of only choice leathers, or made of A-1 qual- Findings 24F.T. 0.

ity. leather as such descriptions, marks, brands, and representations are commonly understood by the purchasing public. 2. The intialletters and frames placed, and offered to be_ placed,: on the Gladstone bags were not, and are not 14-K gold, but on the contrary were, and are, 14-K gold-plated.

3. The metallic corners and snap buttrms on their billfolds were not, and are not, 14-K gold as represented, but were other than 14-K gold. PAR. 7. The representations, descriptions, marks, stamps, and brands, as hereinbefore set out, and other similar representations, have had, and do have, the tendency and capacity to confuse, mislead, and deceive members of the purchasing public into the. erroneous beliefs that the Gladstone bags advertised and sold by respondents were genuine cowhide, made of only choice leathers, and of A-1 quality leather, as described herein, and that said bags, upon request of the purchaser, would be stamped by the respondents with the initials of the purchaser in 14-K gold and placed in a 14-K gold frame; that the metallie corners and snap buttons of the billfolds advert-ised and sold by respondents were 14-IC gold. The said representations, descriptions, marks, brands, and stamps have had, and do have, the capacity and tendency to induce members of the purchasing public to buy said products because of the erroneous beliefs engendered, as above set forth. Further, said represent!l.tions, descriptions, marks, brands, and stamps have the ca· pacity and tendency to unfairly divert trade from competitors of respondents engaged in the sale in interstate commerce of similar products, which said competitors truthfully and rightfully adver~ tise and represent their said products. As a result thereof, sub· stantial injury has been and now is being done by respondents' to competition in commerce among and between the various States of the United States, and in the District of Columbia. · PAR. 8. The acts and practices of respondents are all to the in· jury and prejudice of the public and competitors of respondents in interstate commerce within the intent and meaning of Section 5 of an Act of Congress, entitled "An Act to create a Federal Trade Commission, to define its powers and duties, and for other pur· poses," approved September 26, 1914.

REPORT, FINDINGS AS TO THE FACTs, AND Onder Pursuant. to the provisions of an Act of Congress, approve~ September 26, 1914, entitled "An Act to create n FP<leral Trade Commi!"sion, to define its powers and duties, and for other purposes,'' the Federal Trarle Commission, on the 15th day of October 19~G, is· LANDON & WARNER 935 931 Findings sued and served its complaint in this proceeding upon respondents, George Landon and Michael Mason ·warner, partners, trading as Landon & Warner, charging them with the use of unfair methods of competition in commerce in violation of the provisions of said act. After the issuance of said complaint and the filing of respondents' answer thereto, testimony and other evidence in support of the allegations of said complaint were introduced by Astor Hygg, attorney for the Commission, before Robert S. Hall, an examiner of the Comlnission theretofore duly designated by it, and in opposition to the allegations of the complaint by George Landon, attorney for the respondents, and said testimony and other evidence were duly recorded and filed in the office of the Commission. Thereafter, the proceeding regularly came on for final hearing before the Commission on the said complaint, the answer thereto, testimony and other evidence and brief in support of the complaint (respondents' counsel having waived the filing of brief) ; 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 THE FACTS PARAGRAPH 1. George Landon and Michael Mason "\Varner are partners trading and doing business as Landon & "\Varner, with their office and principal place of business located at 3GO North Michigan Avenue, in the city of Chicago, Ill. For more than one year last past, respondents have been engaged in the business of selling and distributing billfolds, Gladstone handbags and other similar products. They sell and distribute their products in commerce between and among the various States of the United States and in the District of Columbia. Respondents ship their products when sold, from their place of business in the States of Illinois, to the purchasers thereof located in the various States of the United States otller than the State of Illinois. Respondents are now and for more than one year last Past have been in substantial competition with other partnerships and with corporations, firms and individuals engaged in the business of selling and distributing billfolds, Gladstone handbags, and other similar products in commerce between and among the various States of the United States.

PAn. 2. Numerous competitors of respondents manufacture and sell their billfolds and Gladstone handbags covered with leather made from the outside or topside of cowskin, after same has been separated or split from the flesh side of the skin. Leather made from the out- 936 FEDERAL TRADE COMJ\IISSION IJECISIONS Findings 241!', T. C. side or topside of cowskin is properly described by makers of such products, and is generally known by manufacturers, dealers and the purchasing public, as "cowhide," "genuine cowhide," "choice leather,'' and "A-1 quality leather." The flesh side of the cowskin is used to some extent in the making of certain grades of leather, which grades of leather are ordinarily known and described as· "split cow· hide." "Split cowhide" is very much inferior in quality and dura~ bility to, and cheaper in price than, "genuine cowhide," "choice leather," and "A-1 quality leather," which are made from the outside or topside of cowskin, as before described. The purchasing public generally has a pronounced and distinct· preference for billfolds ·and Gladstone handbags and other leather products that have been made from leather from the. outside or topside of cowskin generally known and described as "genuine cowhide," "choice leather," and "A-1 quality leather" rather than split cowhide. PAR. 3. Respondents in offering for sale and selling in interstate commerce their Gladstone handbags have represented by marks, stamps, and brands in large letters on the handbags themselves that said Gladstone handbags were "genuine cowhide." They have also represented, in advertising circulars circulated widely among their customers and prospective customers, that the Gladstone handbags so offered for sale, :;old and distributed, were "made only of choice leather ... ", and of "A-1 quality leather." They have also represented in their advertising eircnlars that the initials of purchasers of said handbags are placed on the handbags in 14-J{ Gold, and that such initials would Le encased within a 1-1-K Gold frame. Respond· ents have represented in their advertising catalogs distributed to their customers and prospective customers that the llletallic corners and snap-buttons on their billfolds were "14-K Gold." PAR. 4. The descriptions, representations, marks, stamps and brands used by respondents in connection with their Gladstone handbags and billfolds were and are false and misleading in that: 1. The Gladstone handbags described as being "genuine cowhide" "made of only choice leather" and "A-1 quality leather" were not made from the outside or topside of cowskin, and were not genuine cowhide, were not made of choice leather, or of A-1 quality leather as such descriptions are ordinarily and commonly understood by the purchasing public, but on the contrary such handbags were and are composed of split cowhide, derived from the flesh side of the cowskin. 2. The initial letters and frames placed and offered to be placed on the said handbags, and the metallic corners and snap buttons on their billfolds were not composed of 14-K Gold, hut on the contrary, such LANDON & WARNER 937 Order initial letters, frames, corners and snap buttons were 14-K Goldplated.

PAn. 5. The above and foregoing descriptions, marks and brands U>;ed by the 1·respondents and the representations made by respondents have had and do have the capacity and tendency to mislead and deceive the pmchasing public into the erroneous beliefs that the Gladstone l~anppag~ a,qve~'tised,. offered for sale, and sold by respondents, were made from the outside or topside of cowskin and were "genuine cow~ hide," "choice leather," and "A-1 quality leather" as represented by respon<lents, and that said han<lbags, when purchased would be stamped by the respondents with initials of the purchaser in 14-K Gold and placed in a 14-K Gold Frame; that the nwtallic corners and snaphnttons of the billfolds advertised and sold by the respondents were 14-K Gold. The representations, marks, brands and Jescriptions used by respondents as aforesaid have had and do have the capacity and tentlency to induce membei·s of the purchasing public to buy said }Wo<lucts because of the erroneous beliefs engendered as above set forth. Such representations, descriptions, marks, and brands used by the respondents, have a capacity and tendency to unfairly divert' trade fJ·om competitors of respondents engaged in the sale in interstate comllleree of similar products who rightfully and truthfully represent their products and who do not in anywise falsely represent their Products; and in this manner, respondents do substantial injury to the ('ompetition in commerce among and between the various States of the United States.

CONCJ.USION The afore~aid acts and practices of the respondents, George Landon IIJHll\Iichaell\lason \Varner, parti1ers, trading and doing business as Landon & \Vamer, are to the prejudice of the public and of respond- {'Jlts' 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 a d!"ral Trade Commission, to define its powers and duties, and for otlwr purpo~s."

ORDER TO CF.ASE AND DESIST . This proceeding having been heard by the Federal Trade Commis- ~'llon upon the complaint of the Commission, the answer of respondents, testimony and other evidence taken before Robert S. Hall, an examiner of the Commission theretofore duly d<'signat<'tl by it in Rllpport of the allegations of said complaint and in opposition tllerPto, brief ·of the Commission filed hen•in (respm11lents having Order 24F.T.C.

waived the filing of brief); 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 September 26, 1914, entitled "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes." It is ordered, That the respondents, George Landon and Michael Mason Warner, individually and as partners trading as Landon and Warner, their representatives, agents, servants, and employees, in connection with the offering for sale, sale and distribution of Gladstone handbags, luggage and billfolds in interstate commerce or in the District of Columbia, do forthwith cease and desist from: 1. Labeling, stamping, marking, branding, advertising or otherwise representing through the use of the words "cowhide," "genuine cowhide," "choice leather," and '~A-1 quality leather," or any other word or words of similar meaning, import or effect, that Gladstone handbags or other luggage manufactured in whole or in part from the under layers or flesh side of cowskin, known as split leather, are made from the outside layer of cowskin;

2. Using the term "14-K Gold" or any other term, mark or symbol of similar import to describe initials or letters placed on the handbags when such initials are not composed of 14-K gold and when they are gold-plated;

3. Representing in any manner that letters or initials of purchasers are encased within a 14-K gold frame when such frame is not composed of 14-K gold or when such frames are gold-plated; 4. Repr:esenting in any manner that the metallic corners and snap buttons on their billfolds are 14-K gold when the same are not composed of 14-K gold or when such metallic corners and snap buttons are gold-plated.

It is further ordered, That the respondents shall, within 30 days after service upon it of this order, file with the Commission a report in writing setting forth in detail the manner and form in which it has complied with this order.

joseph A. PIUMA . 939 Syllabus