Lawton V. Crocker

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

IN THE MATTER OF LAWTON V. CROCKER AND HENRY F. CROCKER, TRAD- ING AS THE NATIONAL SURVEY COMPANY, THE NATIONAL SURVEY, AND NATIONAL SURVEY · COMPLAINT, FINDINGS, AND ORDER IN RE3ARD TO THE ALLEGED VIOLATION OF ' SEC. 5 OF AN ACT OF CONGRESS Al'PROVED SEPT. 26, 1914 Docket 9103. Compla4mt, Apr. 10, 1931-Decision, Dec. 29, 1981 Where a firm engaged, as "The National Survey Company" and "The National Survey," in publication of maps and sale and shipment thereof in interstate commerce, in competition with others similarly engaged- .Made use of such designations, in advertising and conspicuously labeling their various maps, as "The National Survey Map of," etc., "The Official National Survey Map of," etc., together with Imprint facsimile, in certain cases, of coat of arms of States involved, .and together with legend in small type "Compiled from U. S. Government Surveys, Official State Surveys, and original sources," and "Published by The National Survey Co.," etc., not· withstanding fact that while some of said maps were purchased and used by certain State departments and organizations, none of them had been published by, or upon the order of, or with the sanction of, any authority of any Federal, State, or other poll tical entity; With tendency to deceive and mislead public into erroneous belief that said maps were official, national survey maps and Federal or State Government publications, and unfairly to divert trade to them from competitors slml- Iarly engaged In business of distributing and selling maps, and who do not use such false and deceptive labels and designations; to their substantial Injury:

Held, That such acts and practices were to the prejudice of the public. and competitors and constituted unfair methods of competition. ' M1'. lVm. T. Ohantland for the Commission. Mr. Joseph Fairbanks, of Washington, D. C., for respondents. 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 ~hat Lawton V. Crocker and Henry F. Crocker, copartners doing business under the firm names of The National Survey Co.,. The National Survey, and National Survey, hereinafter referred to as "respondents," have been, and are now, using unfair methods of competition in commerce, as '"'commerce" is defined in said act, and it appearin~ to the Commis- Complaint 26F'. T. C. sian that a proceeding 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, Lawton V. Crocker nnd Henry F. Crocker, copartners doing business under the firm names of The National Survey Co., The National Survey, and National Survey, have their principal office and place of business in the city of Chester,, State of Vermont. Respondents are now, and for many years last past have been, engaged in the business of publishing, distributing, and selling, in commerce as herein set out, certain advertising folders and maps. · PAR. 2. Said respondents, being engaged in business as aforesaid, cause said products, when sold, to be transported from their office~ and place of business in the State of Vermont to purchasers thereof located at various points in~ States of the United States other than the State :from which said shipments were made. Respondents now maintain a constant current of trade in commerce, in said products distributed and sold by them, between and amqng the various .States . of the United States and in the District of Columbia. · PAR. 3. In the course and conduct of their ,said business, respondents are now, and have been in substantial competition with other individuals and with ·firms and corporations likewise engaged in the business of distributing and selling advertising folders and maps in commerce among and between the various States of 'the United States ~nd in the District of Columbia. . In the course and operation of said business, and for the purpose of inducing the purchase of their said maps, respondents; in their ad- Yertising folders and on their maps transmitted in commerce, represented, designated and labelled their maps as ''official." Some of th~>se were as follo.ws: · ' Official Map of the World Official l\lap of the United States Official l\lap of New England Official Map of New York Official l\lap of l\Ialne In the course of the operation of said business, and for the purpose of inducing the purchase of their maps, respondents have caused. and now cause, one or another of their several trade names, The N ationa! Survey Co., National Survey and The National Survey, to appear on their advertising folders and maps together with such designations and labels, among others, as "Official National Survey~' Maps," "Official 1\fap of the 'World," "Official Map of the United States," "Official Map of New England," "Official Map of New York," THE NATIO~AL SURVEY CO., ETC. 109 107 Complaint and "Official Map o£ Maine." On some of said maps respondents also make use of an imprint of a State seal together with statements such as "The Official Map of Maine." Through use of such statements as herein set out, and others similar thereto, respondents represent, directly and by implication, that their maps have been prepared by, or under the direction o£, or authorized, adopted or recognized by proper or duly authorized State or Federal officials. PAR. 4. The representations, designations and labellings made by respondents as above set out, are deceptive, misleading, and untrue, in that none of said maps had been prepared by, or under the direction of, or authorized, adopted, or reeognized by any proper oT duly authorized offieials of any State or of the Federal Government, and no authority or permission had been so granted to respondents to represent, designate or label any of their maps as official. The designation and labelling of some of their maps by respondents as "Official National Survey Maps" are misleading and deceptive, in that said maps are not prepared or made or authorized to be made from any "Official National Survey," although many maps are in fact so made and issued by various departments of the United States Government. Sneh representations, designations, and labelling· have a tendency to confuse and mislead purchasers and prospective purch:tsers into the belief that respondents' maps are some of such official maps.

PAR. 5. There are among respondents' competitors many who distribute and sell maps who do not thus or in any w:ty misrepresent their Tespective products.

PAn. 6. Each and all of the false and misleading statements and representations made by the respondents as to their maps, as hereinabove set out, in the course of distributing their products, were and are calculated to, and had, and now have a tendency and capacity to mislead and deceive a substantial portion of the purchasing public into the erroneous belief that all of said representations are true, and that their maps are official State or Federal Government publications. Further, as a true consequence of the mistaken and erroneous beliefs induced by the acts, advertisements and representations of respondents as hereinbefore set out, a substanti:tl number of the consuming public has purchased a substantial volume of respondents' mnps with the result that trade has been unfairly diverted to the respondents from individuals, firms, ~nd corporations likewise engaged in the business of distributing and selling maps, who truthfully advertise their respective products. As a result thereof, substantial injury has been and is now being done by respondents to competition 1604::il"'-39-\"0J,, 26-10 Findings 26 1<'. 1.'. c. in commerce among and between the various States of the United States and in the District of Columbia.

PAR. 7. The above and foregoing acts, practices and representations of the respondents have been and are, all to the prejudice of the public and respondents' competitors as aforesaid, and have been, and are, unfair methods of competition within the meaning and intent 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." 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 Commission, to define its powers and duties, and for other purposes," the Federal Trade Commission, on April 10, 1937, issued, and on April 12, 1937 served, its complaint in this proceeding upon respondents, Lawton V. Crocker and Henry F. Crocker, copartners doing busi- IJ.ess under the firm names of The National Survey Co., The National Survey, and National Survey, charging them with the use of unfair methods of competition in commerce in violation of the provisions of said act. After the issuance and service of said complaint and the filing of respondents' answer, a stipulation as to the facts, in lieu of testimony and documentary evidence, which waived further and all other intervening procedure, was entered into between the chief counsel for the Commission and counsel for respondent, and was duly accepted and approved by the Commission .. Thereafter, this proceeding regularly came on for final hearing before the Commission on the said complaint, answer, and stipulation, briefs and oral arguments of counsel having been waived, and the Commission having duly considered the same and being now fully advised in the premises, 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. The respondents, Lawton V. Crocker and Henry F. Crocker, are copartners doing business under the firm name and style of "The National Survey Company" and "The National Survey," having their principal place of business at Chester, Vt., and part of their business has been and is the publication and sale of maps and the sale and shipment of some of said maps in interstate commerce in competition with others similarly engaged. THE NATIONAL SURVEY CO., ETC. 111 107 Findings PAR. 2. Of maps so sold and shipped by respondents, during five years last past, maps to the average annual aggregate sales price of $2,069, were labeled or designated "Official Map" or "Official National Survey l\Iap," followed by the name of the States, State, Territory or region shown by such maps, and for the purpose of promoting the sale of these maps, certain advertising material has been circulated in interstate commerce by the respondents, describing these maps by the aforesaid designations. . PAR. 3. Of such maps so labeled, designated, advertised, and sold: None of "The Official Map of the World" has been sold during the last four years, and said item has been abandoned;

Of "The Official Map of the United States" the annual sales during the four years last past have not exceeded $25, and Its publication has been discontinued;

Of New England, since 1926, respondents have advertised, published and sold as aforesaid, maps, in various forms and sizes, and variously labeled and designated. Among such designations were: 1. The National Survey Map of New England. 2. The Official National Survey Map of New England. 3. Official National. Survey Maps ot. New England. 4.. Official National Survey Map-New England. Within the latter, which is in book form, appears designations as follows: (a) "The Official Map of Maine," with an imprint facsimile of the coat of arms of Maine within such large type wording. (b) Official National Survey "Bookform" Maps of Vermont and New Hampshire.

(c) Official National Survey "Bookform" Maps of Southern New England. Following such designations which are in large type, appears the following in small type :

Compiled froui U. S. Government Surveys, Official State Surveys, and original sources.

and the following:

Published by The National Survey Co.

Chester, Vermont.

L. V. Crocker, Topographer.

Of the State of Maine, in. addition to the one aforementioned, respondents h~ve- advertised, published and sold as aforestated, a c.ertaln large map designated In large type "The Official Map ot. Maine", with lm imprint facsimile of the coat of arms of Maine within such wording. Of the State of New York, respondents have advertised, published and sold as aforestated, maps labeled and designated in large type--"The Official National Survey Map of New York", with a facsimile Imprint ot. the coat of arms ot. New York within said lettering.

Following the foregoing designations on said maps ot. Maine and New York appears the same wording as appears in the various New England maps, as above set out.

Order 26F.T. C.

PAR. 4. No one of the aforementioned maps were in fact "Official," or "National," or "National Survey" maps, as having been either pub-· lished by, or upon the order of, or with the sanction of, any authority' of any federal, state, or other political entity, although certain of said 1 maps were purchased and used by certain State departments and organizations. · ~' .: ' ; PAR. 5. Certain Federal agencies publish maps using the wo:rds "National" and "Survey" as a part of their designation of source. · PAR. 6. The use of the words "Official," "National," and "National Survey" in labels and designations by respondents in the manner hereinbefore described, signifies to some of the public that such maps were in· fact issued by, or with the authorization or sanction and approval of, properly constituted national, Federal, or State authori-. t~es, as the case might be, and such labeling and designation constitute, and are, false representations that such maps have been issued or sanctioned by such proper authorities, and such advertising, label ing, and designation have the tendency to deceiye and mislead, the public into the erroneous belief that said inaps are official, natiomil survey maps, and Federal or State government publications. · , • PAR. 7. The foregoing actual and implied misrepresentations and erroneotts beliefs induced thereby have a tendency unfairly to divert trade to respotldents from individuals, firms, and corporations sim- · ilai:ly enga"ged and competing in the business of distributing ttnd selling maps who do not use such false and deceptive labels and designations, to the substantial injury of said competitors engaged in interstate commerce among and between the various States of the United States and the District of Columbia. . -: CONCLUSION The aforesaid acts and practices of the respondents Lawton V Crocker and Henry F. Crocker, copu.rtners doing business under the firm names of The National Survey Co., and The National Survey, are to the prejudice of the public and of respondents' 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 Federal Trade Conimission, 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 upon the 'complaint of the Commission, and the answer of respondents and the stipulation as to the facts in lieu of evidence,·' and the Commission having made its findings as to the facts and its THE NATIONAL SURVEY CO., ETC .. 113 109 Order ~onclusion that said respondents have violate.d 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, Lawton V. Crocker and Henry ·F. Crocker, copartners doing business und~r the firm names ofthe National Survey Co. and The National Survey, theh~ representatives, agents, and employees, in connection with the offering for sale, sale, and distribution of maps in interstate commerce or in the District of . CPlumbia, do forthwith cease and desist, directly .or indirectly, either ;personally or through any corporate or other device, from: ; · ·Representing, directly or by implication, by or through \.1se of the \vord ~tOfficial," either alone or in conjunction or connection whh the words "National" or "National Survey"' printed on their maps, or in .any. other manner, that said maps are "Official" publications ()f,. or are authorized or sanctioned by federal or state authorities, unless said maps are in fact official publications of Federal or State authori- ~_ti~s and have been authorized and sancti6ned by such authorities; provided, however, that whenever the respondents print, issue; and .·distribute maps sanctioned, adopted and used by any. organization, they are not hereby prohibited from using the word "official" in conjunction, and connection with the name o:f such organization actually '-sanctioning, adopting and authorizing the issuance of said maps when the name o:f said organization appears in close connection and conjunction with. the word "official" in letters of equal prominence. It is further ordered, That the respondents shall, within 60 days after service upon them of this order, file with the Commission a report in writing setting :forth in detail the manner and form in which they have complied with this order.

Syllabus 26 F. T. C.