Neivert, Harry

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

IN THE lla 'ITER OF HARRY NEIVERT, TRADING AS PIGRO CHAMOIS COMPANY COMPLAINT, FINDINGS, AND ORDER IN REGARD TO 'tiie ALLEGED VIOLATIO~ 01<' SEC. ~ OF AN ACT OF CONGRESS APPROVED SEPT. 26, lou Dorl,·ct 2513. Complaint, .Aug. 13, 1935-Decision, .Aug. 28, 193"1 Where an individual engaged In the distribution of leather products, including certain products which were neither (1) chamois leather, as originally made from the skin of an Alpine antelope, highly prized for its soft and pliable quality for use In polishing such articles as jewelry, metals, glass. and ·wood, and possessed of additional feature of absorbing water readily and returning, when dry, to Its original softness and pliability, nor (2} composed of the inner side of a sheepskin or "flesher," from which the outer or grain side has been split, tanned exclusively with marine-oil. and with a natural yellowish color well known to purchasing public, and possessed generally of same qualities as those of the original chamois skin, and commercially now known, and to public as "chamois," and in the sale of said products in competition with others engaged in manufacture and sale of washable leather goods to wholesale and retail dealers and other purchasers In the Yarious States and In the District of Columblalrrade use of trade name including word "chamois'' on its Invoices, lette1·heads. circulars, and other printed matter, and In other ways, in soliciting sale of and selling his aforesaid products, and included· said word in invoices, circulars, and advertising matter in describing and referring to said certain products hereinabove referred to, through such names as "Carpincho chamois cuts," "Carpincho square cuts, chamois color," "Sheepskin chamois. chrome tan," notwithstanding· fact said certain products were not the genuine or commercial chamois leather, as hereinbefore described, but constituted the illJler side of the carplncho leather, grain or outside split of which is used In glove manufacture, and which, in color and appearance. as result of tanning process employed, resembles that of chamois, though not possessed ot moisture-abserbent quality of the oil-tanned sheepskin fteshers and without latters' quality of returning to their original softness and pllablllty after being saturated with water; With capacity and tendency to mislead and deceive number of the purchasing public into buying his said leather products in the erroneous and mistaken belief that they were purchasing such products possessing qualities of chamois as hereinabove set forth, and to deceive ultimate purchasers int() buying leather products which they did not Intend to buy and which d() rwt possess said certain desirable qualities posse><sed by the chamois, as above set forth, and with result of placing in the hands of retailers means of deceiving ultimate purchaser as to the leather from which said products are actually made, and w_ith tendency and capacity to divert trade from competitors engaged In selling articles of leather in commerce among the various states, truthfully rcpresentPd as chamois, and from other com- Jietltors likewise engaged in selling in such commerce products truthfully Complaint 25F.T.C.

advertised and of the same kind and general appearance as those of said Individual:

Held, That such acts and practices, under the conditions and circumstances set forth, were to the prejudice of the public and competitors and constituted unfair methods of competition.

Mr. James M.llammond for the Commission.

Maider & Maider, of Gloversville, N. Y., for respondent. Col\IPLAINT 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 Harry Neivert, an individual doing business as the Pigro Chamois Company, hereinafter referred to as the respondent, has been and is using unfair methods of competition in "commerce" as defined in said act, and it appearing to said Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues this, its complaint, stating its charges in that respect as follows : P .ARAGRAPII 1. The respondent herein, Harry N eivert, is an individual doing business under the firm name and style of Pigro Chamois Company, with his principal place of business being in the city of Gloversville, N. Y. He is now and has been for more than one year last past, engaged in the business of manufacturing leather products designated by him as Carpincho chamois cuts, pocket shaped carpincho chamois cuts, carpincho square cuts "chamois color," sheepskin chamois chrome tan, carpincho middle split chamois, sheepskin chamois, chrome tanned, Java flesher chamois and other leather products carrying as part of their name or designation the word "chamois" and in the sale thereof between and ~among the various States of the United States and the District of Columbia, shipping such products, when sold, to the purchasers thereof, some located in the State of New York and others located in various States of the United States and 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, the respondent is now, and for more than one year last past, ha,s been in substantial competition with other individuals and with corpomtions, firms, and partnerships en- A'aged in the sale of leather products between and among the various States of the United Sta,tes, and the District of Columbia. PAR. 2. Respondent in selling and offering for sale his aforesaid leather products between and among the various States of the PIGRO CHAMOIS CO. 931 929 Complaint United States and the District of Columbia now represents and for more than one year last past has represented in and by the use of his aforesaid trade name by the designation of his leather products hereinbefore mentioned, by advertisements, price lists and in other Ways that the aforesaid leather products are chamois. "Chamois" has its origin in the name of an European antelope, the skin of which is made into soft, pliable leather which is used in the manufacture of gloves and for the polishing of silver and metals. The chamois antelope is now practically extinct and its skin is no longer an article of general commerce. At the present and for a long time last Past, the word "chamois" as commercially known is used to designate the inner part of a sheepskin, which when oil dressed is a very soft and pliable product, sold commercially under the name of "chamois." It is likewise valuable for polishing and cleaning purposes, possessing particularly the power of quickly absorbing moisture and returning thereafter when dried to its original softness and pliable qllality. The only trade name and designation given to the skin of a chamois antelope and to the oil dressed sheepskin is the word . "chamois" and that 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.

PAn. 3. In truth and in fact the leather products dealt in by the respondent as described in paragraph 1 herein and represented by him as set out in paragraphs 1 ::tnd 2 to be "chamois" are not in fact "chamois," but are articles manufactured from ;sheepskin which have not been oil tanned or from pigskin and have the same general appearance but not the peculiar qualities or properties of articles known to the public and trade as "chamois." PAn. 4. Use by the respondent of its aforesaid trade name, of the a.foresaid designations of its leather products, and of other designations, and of the advertisements and price lists described in paragraph 2 hereof has the capacity and tendency to mislead and deceive, and has misled and deceived purchasers of the aforesaid products of respondent into the belief that such products are "chamois" and to Purchase such products of respondent in such erroneous belief and ~laces into the hands of dealers the means of misleading and deceiv- Ing the purchasing public. Among the competitors of respondent tnentione(l in p~ragrnph 1 hereof are manufacturers of leather prod- ~cts similar to those made and sold by respondent but who do not ln anywise designate such products as "chamois." There are also among such competitors manufacturers who manufacture and sell ''chamois" and who truthfully represent their products as "chamois." By the aforesaid acts and practices of respondent, trade is diverted Findings 25F. T.C.

by 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. 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 inter· state commerce within the intent and meaning of Section 5 of the 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."

HEPORT, FINDINGS AS TO Tile FACTS, AND ORDER Pursuant to the provisions of 1an 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 issued and served its complaint in this proceeding upon respondent herein, Harry Neivert, an individual, doing business under the firm name and style of Pigro Chamois Company, charging him with the use of unfair methods of competi· · tion in t.commerce, in violation of the provisions of said act. After the issuance of said complaint, the respondent filed his answer in this proceeding, admitting in part, and denying in part, the allegations of the complaint. Thereafter a stipulation was entered into, whereby it was stipulated and agreed that a statement of facts signed and executed by the respondent's counsel, Messrs. Maider &. Maider, of Gloversville, N. Y., and W. T. Kelley, Chief Counsel for the Federal Trade Commission, subject to the approval of the Commission, may be taken as the facts in this proceeding, in lieu of testimony in support of the charges stated in the complaint, or in opposition thereto, and that the said Commission may proceed upon said statement of facts to make its report stating its findings as to the facts and its conclusion based thereon, and enter its order disposing of the proceeding without the presentation of argument or the filing of briefs. Thereafter, this proceeding regularly came on for final hearing before the Commission on said complaint, answer, and stipulation, said stipulation having been approved and accepted, and the Commission having duly considered the same, an.d being now fully advised in the premises, finds that this proceeding 19 in the interest of the public, and makes its findings as to the facts and its conclusion drawn therefrom:

PIGRO CHAMOIS CO. 933 929 Findings FINDINGS AS TO THE FACTS PARAGRAPH 1. For more than one year prior to the filing of the <:complaint in this proceeding, Harry Neivert, respondent herein, Was, and had been, doing business under the firm name and style of Pigro Chamois Company, in the distribution and sale of leather Products. His office and principal place of business was then, and still is, located in the city of Gloversville, State of New York. Respondent has caused, and still causes, his said leather products, When sold by him, to be transported in. commerce from his place <>f business at Gloversville, N. Y., to the purchasers thereof by shipping the said products to, into, and through States other than the State of New York.

PAn. 2. During the times above referred to, other individuals, firms, and corporations located in the various States of the United States have been engaged in the manufacture of washable leather Products which they have sold, and still sell, to wholesale and retail {).ealers and other purchasers located in the various States of the ~united States and in the District of Columbia. The respondent, dur- Ing the aforesaid times, was, and still is, in competition in the sale <>.f leather products with said other individuals, firms, and corporahans, in commerce as herein set out.

PAn. 3. Respondent, for more than one year prior to the filing of ~he complaint in this proceeding, described and referred in his Invoices, circulars, and advertising matter, to certain of the leather Products sold by him as follows: Carpincho chamois cuts; pocket shaped carpincho chamois cuts; carpincho square cuts, chamois color; sheepskin chamois, chrome tan; carpincho middle split chamois; sheepskin chamois, chrome tanned; and Java flesher chamois; and ~arried as part of the respective names or designations of other · eather products the word "chamois."

PAn. 4. The respondent, at the time of the filing of the complaint herein, and for a long time prior thereto, used as, and for, the trade llame for his said business the words "Pigro Chamois Company." ~his trade name was used by the respondent on his invoices, lettere~ds, circulars, and other printed matter, and in other ways, in 80hciting the sale of, and in selling, his products in commerce as Qescribed in paragraph 1.

PAR. 5. Chamois leather was originally made from the skin of an tlpine antelope known as the "chamois." This animal is now, and as. been for many years, practically extinct, so that its skin is a tar1ty and has not been sold in commercial quantities for many ~ears. Its skin was highly prized for its soft and pliable quality Findings 2ii F. T. C. for use in polishing such articles as jewelry, metals, glass, and wood. It possessed the additional feature of absorbing water readily and returning, when dry, to its original softness and pliability. In searching for a substitute for the original "chamois" leather after the source of supply became exhausted, tanners tried many different varieties of leather and processes of tannage. After many experiments, it was found that the inner side of a. sheepskin, known technically as a "flesher," from which the outer, or grain, side has been split, when tanned exclusively with marine-oil, usually cod oil, would produce an article very similar to, and possessing, generally, the same qualities as that of the skin of the original "chamois'r antelope. Sheepskin fleshers, thus tanned, because of their use for many years as a substitute for the skin of the "chamois" antelopt>, constitute what is now known commercially and to the public 11,; "chamois." This leather is not dyed, as the oil tannage gives it a natural yellowish color which is well known to the purchasing public. Its original softness and its pliability, when dried, after having been saturated with ·water, are very desirable qualities, and influence the purchase of large quantities of said products iri preference to other products designed for similar usage. PAR. 6. Gloversville, N. Y., where respondent's place of business is located, is the center of the glowmaking industry in the United States. Gloves, except work gloves of the heaviest kind, are made from the grain, or outside split, of many different kinds of skinst including the carpincho, which is a semi-aquatic South American animal resembling in appearance a large pig. This leather resembles "chamois" in color and appearance, as the whole skin during thetanning process, and before splitting, is dyed yellow for use in mak· ing yellow gloves. Hides which arc intended for ultimate use in the manufacture of gloves, however, are usually not oil-tannedr which is a slow and expensive process, but are either tanned by the use of formaldehyde or chrome, which are much cheaper and quicker processes of tanning. The inner side of these skins, the grain split of which has been used in the manufacture of gloves, is, therefore, a byproduct, and is sold cheaply for any use to which the same may be put. These inner splits, many of which are carpincho or peccary, constitute the articles purchased and marketed as "chamois" by the respondent. He deals primarily with the "Fiye and Ten Cent" retail chains, and his products usually sell for ten or twenty cent:;. Skins tanned by chrome or fonnaluehyde from which the respondent's products are made are entirely satisfactory for use as glove;;, but will not absorb moisture with the ease and facility of oil-tanned sheepskin fleshers, and will not return to their original softness PIGRO CHAMOIS CO. 935 Order and pliability after being saturated with water. The leather prod- Hcts made from these inner skins so tanned by the formaldehyde or chrome processes, therefore, do not have many of the desirable qualities of those products made from the skins referred to in paragraph 5. The yellow color and general similarity in appearance, coupled with the use of the descriptive terminology set out in paragraphs 3 and 4 has a capacity and tendency to mislead and deceive a number of the purchasing public into purchasing respondent's leather Products in the erroneous and mistaken belief that they are purchasing leather products possessing the qualities detailed in paragraph 5. PAR. 7. The use by respondent of the word "chamois" in his trade name, and in connection with the sale of articles of leather referred to in paragraph 3 hereof is misleading, and has the c~pacity and tendency to deceive, and may deceive, the ultimate purchasers into buying leather products which they do not intend to buy and which ·do not possess certain desirable qualities possessed by the leather Products referred to in paragraph 5. Through and by virtue of the Practices aforesaid, the respondent places, and has placed, in the hands of retailers a means of deceiving the ultimate purchaser as to the leather from which said products are actually made. The use by the respondent of the aforesaid practices has the tend- ·ency and capacity to divert trade from competitors engaged in selling articles of leather in commerce between and among the various States of the United States which are truthfully represented as "chamois" and from other competitors of respondent likewise engaged in selling in like commerce products which are truthfully advertised and are of the same kind and general appearance as those -of respondent.

CONCLUSION The aforesaid acts and practices of the respondent, under the conditions and circumstances set forth in the foregoing findings, are to the prejudice of the public and of respondent's competitors, and ·~onstitute unfair methods of competition in commerce, within the 1lltent and meaning of Section 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 CE.\SE AND DESIST This proceeding having been heard by the Federal Trade Comlhission upon the complaint of the Commission, the answer of respondent, and the agreed stipulation as to the facts entered into between the respondent herein, Harry Neivert, an individual, doing Order 25F. T. C.

business under the firm name and style of Pigro Chamois Company, by his attorneys of record, and W. T. Kelley, Chief Counsel for the Commission, which provides, among other thingsr that without further evidence or other intervening procedure, the Commission may issue and serve upon the respondent herein findings as to the facts and conclusion based thereon and an order disposing of the proceedings; and the Commission having ma.de its. findings as to the facts and its conclusion that said respondent has violated the provisions of an Act of Congress approved September 26, 1914, entitled, "An Act to create a Federal Trade Commission,. to define its powers and duties, and for other purposes." It is ordered, That the respondent, Harry Neivert, an in<lividualr doing business under the firm name and style of Pigro Chamois Company, his representatives, agents, and employees, in connection with the offering for sale, sale, and distribution of his leather products in interstate commerce, or in the District of Columbia, do forthwith cease and desist from representing, directly or by inference through his trade name, circulars, contracts, advertisements, invoiccsr or bulletins, or through any other means whatever, that the leather products sold by him are "chamois," or are made from "chamoisn when said leather products are not manufactured: (a) From the skin of the Alpine antelope commonly known nnd referred to as chamois; or (b) From fleshers or under-splits of sheepskin straight oil-dressed or tanned without the use of alum, chrome, or formaldehyde. It is further ordered, That the respondent shall, within 30 days from the date of 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.

TRADE LABORATORIES, INC., ETC., ET AL. 937 Syllabus