Seld Leather Co

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IN THE MATTER OF JOSEPH H. SELD, TRADING AS SELD LEATHER COMPANY COMPLAINT, 1-'INDINGS, AND ORDER IN REGARD '1'0 THE ALLEGED VIOLATION OF SEC. 5 OF AN AC'l' OF C0!'1GRESS APPROVED SEPT. 26, 1914 Docket 2686. Complatnt, Nov. 20, .1935-Decision, Mav 17, 1937 Where an individual engaged in the manufacture and sale of certain leather products made from cheap and inferior leathers having the general appearance of" chamois," in competition with manufacturers of similar products who do not in any. wise designate same as "chamois" or associate said word with some other descriptive word, and with manufacturers wh(} make and sell the skin of the chamois antelope or oil-tanned skin of the sheep, and truthfully do represent their said products as " chamois "llepresented, through designations "Pigskin Chamois," "Pigskin Chamois Seleco," "Chamois, Rose Brand," and "Genuine Pigskin Chamois," in advertisements, price lists, letterheads, invoices, and in other ways, that said Products were "chamois," notwithstanding the fact they were not made from the skin of the practically extinct chamois antelope nor from the oil-dressed and suede-finished flesher or undersplit of sheepskin, and were not, as commercially now known, chamois, and would not serve as a satisfactory substitute for such sheepskin as thus known; With effect of misleading and deceiving purchasers of aforesaid products lnto belief that they were cbamois, as hereinabove set forth, and to purchase same in such erroneous belief, and of placing in tbe haudg of dealers and retailers means of misleading and deceiving aforesaid public, and of Unfairly diverting trade to him from competitors who do not misrepresent their products; to the substantial injury of substantial competition in commerce:

Held, That such acts and practices were to the prejudice of tlw public and competitors and constituted unfair methods of competition. Before Mr. Charles F. Diggs, trial examiner. jJfr. James M. H amrrwnd for the Commission. Mr. H. Andrew 8ehlusberg, of Gloversville, N.Y., for respondent. Complaint Pursuant to the provisions of an Act of Congress approved September 26, 1914, entitled "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes," the Federal Trade Commission, having reason to believe that Joseph II. Selu, an indiviuual, doing business under the firm name and stylt;; of Seld Leather Company, hereinafter referred to as respondent, has been and now is using unfair methods of competition in commerce as "commerce" is defined in said act, and it appearing to 1238 FEDERAL TRADE CO::\Il\IISSJOX DECISIONS Complaint 24F.T. C.

the Commission that a proceeding by it in respect thereof would he in the public interest, hereby issues its complaint stating its charges in that respect as follows:

PAUAGHAPII 1. The respondent herein, Joseph H. Seld, is an individual, doing business under the finn name and style of Seld Leather Company, with his office and princii)al place of business in the city of GloversYille, N. Y. He is now, and has for more than one year last past been engaged in the business o£ manufacturing certain leather products, designated by him as "Pigskin Chamois," "Pigskin Chamois Seleco," "Chamois, Rose Brand," "Genuine Pigskin Chamois," "Carpincho Splits," "Peccaty Splits," "Deerskin Splits," "Buckskin Splits," and other cheap and inferior leather products having the general appearance of "chamois," some of which ure marked "chamois'' or have the ,·rord "chamois" used as a descriptive word or part of a trade name or designation in connection with their selling and marking, and in the sale thereof between and among the various States of the Uuited States and in the District of Columbia, shipping such products, or causing same to be shipped when sold, from respondent's place of business in the State of New York to the purchasers thereof, some located in the State of New York and others located in the other States of the Unirod States and in the District of Columbia, and there is now, and has been for more than one year last past, a constant current of trade and commerce by respondent in the aforesaid leather products. In the course and conduct of his business respondent is now, and for more than one year last past has been in substantial competition with other individuals and with corporations, firms, and partnerships engaged in the sale and distribution of leather products between and among the nuious States of the United States and in the District of Columbia.

PAn. 2. Respondent, in selling aml offering for sale his aforesaid leather products between and among the various States o£ the United Stutes and in the District of Columbia, now represents, and for more than one year last past has rl'pre:-ented, through the designation of his leather products hereinbefore mentioned<l, lJy atlwrtisenwnts, price lists, letterheads, invoices, ant! in other ways, that the aforesaid leatlwr products are chamois. Chamois has its origin in the wune of an Emopean antelope, the skin of which·h is nuHle into a soft, plial,Ie leather which is used in the' manufacture of glon•s and for the polishing of silver and metals. The ehamois antelope is now practically extinct, and its skin is no longer an article of commerce. At the present :md for a long time last past, the word "chamois'' as cotn· SELD LEATHER CO. 1239 Complaint l11e~·cially known is used to designate the inner part of a sheepskin, \vluch when oil dressed ·is a very soft and pliable product sold commercially under the name of "chamois." Said product is likewise Yaluable for polishing and cleaning purposes, possessing particularly the power of quickly absorbing moisture and returning thereafter, When dried, to its original softness and pliable quality. The only trade name and designation ginn to the skin of a chamois antelope and to oil dressed sheepskin is the word "chamois," and the word ·"chamois'' means to the retail trade and to the public either the skin ·of a chamois antelope or the oil-tanned skin of a sheep. P.aR. 3. In truth and in fact, the leather products dealt in by the r~spondent, as described in paragraph 1 herein, and represented by hun as set out in paragraphs 1 and 2 to be chamois, are not in fact the skin of the chamois antelope or the oil-tanned skin of the sheep, but are articles manufactured from pigskin, peccary, carpincho, and skins other than oil-tanned sheepskin or the chamois antelope, -and have the same general appearance but not the peculiar qualities or Properties of articles known to the public :mel trade, and propedy (l . <'Signated as "chamois." . PAn. 4. The use by the r£'spondt>nt of the aforesaid designations of Jts leather products and of otlter similar designations, and of the ndrertiS£'1lWllts, l£>tl~rlwalls, invoices, and price lists described in Pal·a.graph 2 hereof, has the capacity and tendency to mislead and i deceiye, and has misled and deceived purchasers of the aforesaid I I'· })roducts of respondent into the belief that such products are chamois, i to wit: the skin of the chamois antelope or the oil-tanned skin of the sheep, awl to purchase such products of respondent in such errollcous belief, and hns placed, and places in the hands of dealers and l'e,tailers the means of misleading and deceiving the purchasing Vublic.

Among the competitors of respondent UH'1ltioned in paragraph 11 leteof, are mnmlfacturers of leather products similar to those made .and sold Ly r£>spondent, hut ,rho do not in any 'vise designate such Products as "chamois." Th£>rc are also, among such competitors, ltlanufactur!'rs "·ho manufacture and sell the skin of the chamoig antelope or the oil-tannell skin of the sht>ep, and who truthfully l'e})resent their said products as "chamois." lly the afore~ai(l acts and Practices of respondent trade is unfairly diverted by respondent fro · . ' . · Ill 1ts competitors, who do not nn~represent their products, whereby substantial injury is Leing done and has l1een done by respondent to ~ubstantial competition in interstate commerce. Finding:'l 24 F.T. 0 .. PAR. 5. That the above methods, actions, and practices of the respondent are all to the prejudice of the public and to respondent's competitors and constitute unfair methods of competition in interstate commerce within the intent and meaning of Section 5 of an Act of Congress approwd September 26, 1914, entitled "An Act to create a Federal Trade Commission, to define its powers and dutiesr and for other purposes."

REPORT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of an Act of Congress approved September 26, 1914, entitled "An Act to create a Federal Trade Cornmission, to define its powers and duties, and for other purposes," tho Federal Trade Commission on N oyember 20, 1935, issued and served its complaint in this procerding upon respondent Joseph 1[. Seld, an individual trading under the firm name and style of Seld. Leather Company, charging him "·ith the use of unfair methods of eompt>iition in commerce. in violation of the provisions of said act. After issuance of the said complaint and filing of respondent's answer thereto, testimony ancl other evidence in support of the allegations of the complaint WE're introduced by James l\L Hammond, attorney for the Commission be-fore l\Iillard F. Hudson and Charles F. Diggs, examiners for the Commission, theretofore duly designated by it; and in opposition to the allegations of the complaint by Jl. Andrew Schlnsberg, attomey for the respondent; and said testimony' and other evidence "'Pre duly recorde1l and filed in the office of the Commis:,;ion. Thereafter, the proceeding regularly came on for final hearing before the Commission on the said complaint and answer thereto, the testimony and otlwr evidence and brief in support of the complaint, and the Commission having duly considered the same ant! 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 Tile FACTS PAU.\GRAPII 1. The> respondent lwrein, Joseph II. SE>ld, is an individual doing business under-r the firm name and style of Sold uu.ther Company, with his office and principal place of business in !he city of GloYersYille, N.Y. He has been engaged for several years m the manufacture ami sale of certain leather products made frolll. leathers variou~ly llesignated by him as "Pill'skin Chamois'' "Pigson1• Chamois SE>lecot "Chamois, Rose Brand,""' "Genuine ,Pigslnn• SELD LEATHER CO. 1241 12:.)7 Fin<liugs Chamois," and from other cheap and inferior leathers having the .general appearance of "chamois." He ships said products, or causes the same to be shipped, when sold, from his place of business in the State of New York to the purchasers thereof, some located in the State of New York and others located in other States of the United Slates and in the District of Columbia. There is now, and has been for more than one year Jast past, a constant current of trade and conmll•rce by respondent in the aforesaid leather products among and between the yarious States of the United Stat~s. In the course and conduct of his business, respondent is now, and for more than 0 ~ 1e. year last past has been, in substantial competition with other intltnduals and with corporations, firms, and partnerships likewise engaged in the sale and distribution of leather products in commerce~ betwe•en and amo1w the mrious States of the United States and in the District of Col~mbia.

) PAn. 2. Respondent, in selling and offering for sale his aforesaid ~other products between and among the various S;;ates of the United States and in the District of Columbia, now represents, and for more ~ 1 .111 1l one year last past has represented, through the designation of 11 ~ 1eathet• products hereinbefore mentioned, by advertisements, }ll'.Jce lists, letter'heaLls, invoices, and in other ways, that the afore- Stud leather products are chamois. Chamoi3 has its origin in thea ll:nne of a11 European antelope, the skin of which was made into a Soft, pliable leather which was used in the manufacture of gloves ~nd for the polishing of silver and metals. The chamois antelope, , 10 '~·eyer, has become practically extinct, and its skin is no longer an •lrbcle of colllmerce. At the present and for a long time last past, ~he Word "chamois" as commercially known is used to designate the 1 ~~ 1 l'l' part of a sheepskin, which when oil-dressed is a very soft and PIable product solu commercially under the name of "chamois." It ~ ~refined in the Dictionary of Leather Terminology, published by a / 1~t Committee appoint~d by the Tanners Council of America funcb10111Hg in conjunction with Committee members representing other ranches of the leather goods industry, as follows: AICluunois Ll'nther. A soft Ientlter originally made from the skins of the f .Pine antelove, or chamois, now pmctlcnlly extiuct, !Jut nt the present time c~{)lll the fip><hers or undt•r·Rlllit of sh<•ep!'kiu, oil-tlt·es:;ed, suede·fiuished, priuctnlly used ful· cleaning nnd polishing purposes and for gloves. "White hllnois" Is n !Iesher tanned by a formaldehyde and alum process. l The same wolk describes the term "Flesher'' u~ed in the above c t•finition, as follows :

~I Flesher, Term used to describe a suede-finished fiesh side or undercut ot a . lt'E'fl~)·· · '111, spilt hE-fore tanning. 1242 FEDERAL TRADE COl\DIISSION DECISIONS Findings 24 I<'. T. C. Chamois, so manufactnrl:'d and tanned from sheepskin as llescriLed above, is valuable for polishing and cleaning purposes. It possesses the peculiar power of quickly absorbing moisture anll returning thereafter when drive<l to its original soft and pliable quality. The skin of the Chamois or Alpine antelope became exhausted for commercial purposes over forty years ago. Tanners, in their search for a substitute, <liscovered that the inner splits of sheepskin tanned by the oil process produced a skin possessing approximately the same qualities. Sheepskin so tanned has been in use for many years and is the article now known commercially as "chamois." During the course of the hearings held in connection with this case, a number of old and experienced tanners were summoned for the purpose of defining the present meaning of the tl:'rm "chamois." None of them had ever seen a real Chamois antelope skin. All defined the term "chamois" in the same manner, as set out in the Dictionary of Leather Terminology quoted above.

PAn. 3. Tests were made of the respondent's products at the United States Bureau of StalHlanls and it was found that they would not serve as a satisfactory substitute for oil-tanned sheepskin, as chamois, because they will not absorb water with facility and will not return when dry to their original soft aml pliable quality. A number of practical automobile null window washers of many years' experience appeare<l and testified that these scientific conclusions were true; that the article known to and used by them as "chamois" was sheepskin manufactured as describe<l in the Dictionary of Leather Terminoloi!Y quoted above; that they had tried to use leather similar to respondent's product but that it would not give satisfactory results. The testimony taken shows that the general public <lors not know what a chamois skin as now known is made from, so that the use of l"L descriptive word such as "Pigskin" or "Carpincho" in connection with the word "Chamois" is entirely uninformative. PAn. 4. The use by the respondent of the aforesaid designations for his leather products, anu of other similar designations and of the advertisements, letterheads, invoices and price lists described in paragraph 1 hereof, has the capacity anu tenuency to mislead.u and deceive, and has misled and <leceive<l purchasers of the aforesaid products of respondent into the belief that such products are chamois, to wit: the skin of the chamois antelope or the oil-tanned flesher or under-split of sheepskin and to purchase such products of respondent in such erroneous belief, and has placed and places in the hands of <h'alers and retails·s the means of misleading a.nd deceiving the purchasing public.

SELD LEATHER CO. 1243 1237 Order Among the competitors of respondent mentioned in paragraph 1 hereof, are manufacturers of leather products similar to those made and sold by respondent., who do not in any wise designate such prodnets as "chamois" or associate the word "chamois" with some other descriptive word. There are also, among such competitors, manufacturers who manufacture and sell the skin of the chamois antelope or the oil-tanned skin of the sheep and who truthfully represent their said products as "chamois." By the aforesaid acts and practices of respondent, trade is unfairly diverted to respondent from his competitors, who do not misrepresent their products, whereby substantial injury is being done and has been done by respondent to substantial competition in interstate commerce. CONCLUSION The aforesaid acts and practices of the respondent Joseph H. tld, an individual trading under the firm name and style of Seld other Company 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 2G, 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 Commis- Sion upon the complaint of the Commission and the answer of re- ~Pondent, testimony and other evidence taken before :Millard F. t~hudson and Charles. F. Diggs, ~xa~niners for the Commissi~n, and ~retofore, duly des1gnateu by It, m support of the allegations of sa 1~ complaint and in opposition thereto, brief in support of the com- Plaint, and the Commission havin()' made its findings as to the facts and its conclusion that said respo~1tlent has violated the provisions of an Act of Congress approved September 2G, 1914, entitled "An ~ct. to create a Federal Trade Commission, to define its powers and ties, and for other purposes."

d ~t i8 ordered, That the respondt>nt, Joseph H. Seld, an individual Doing business under the firm name and style of Seld Leather Com- Pany, his representatins, agents, and employees in connection with ~he offering for sale sale and distribution of leather products, do or·thwith C<'ase and :lesist from:

Using the word "chamois," allow.>, or in conjunction with any oth~>r Wor(1 or words, in any manner whate,·er, to d escn'l 1r, <l <'Slp;nate,· Order 24F.T.C.

or refer to leather products not made (1) from the skin of the Alpine Antelope or Chamois, or (2) from the fleshers or under-split of sheepskin, oil-dressed and suede-finished, provided, however, leather products made from the fleshers or under-split of sheepskin tanned by a formaldehyde and alum process may be designated as "white chamois."

It is he1·eby further ordered, That the respondent shall within 30 days from the date of the service upon him of this order file with this Commission his report in writing stating the manner and form in which he shall have complied with this order. UDGA, INC., ET AL. 1245 Complaint