Craddick, William F

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

In THE Marrer or WILLIAM F. CRADDICK, INDIVIDUALLY, AND TRADING AS N-URG-IZR, VIT-O-NET, AND ELECTRONET COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 3333. Complaint, Feb. 10, 1938—Decision, Aug. 31, 1938 Where an individual engaged in the manufacture of an electric blanket, or appliance in the nature thereof, under designations “N-Urg-Izr,’ “Vit-O-Net,” “Electronet,” and others, and in the advertisement, sale, and distribution thereof to purchasers in other States and in the District of Columbia, in substantial competition with others engaged in sale and distribution of similar products and products intended and designed for similar use, and including those who do not in any way misrepresent the character and nature of their products nor effect thereof; in advertising and describing the same in booklets, pamphlets, circulars, and labels, and folders distributed among prospective purchasers, and in newspapers and magazines— (a — Represented, directly and by implication, that his said product was created and made for the practical application of the biological, chemical, and other scientific discoveries and theories of well known scientists and was the result of painstaking and long experience and tests, and that it set up a radiomagnetic energy which was transmitted to the person within or under its protection, and thus caused an increased activity and revitalizing of the organs and cells of the body, charged the blood stream with electro-magnetic energy, eliminated many times more poisons and waste matters than was possible by any other method, and caused a magnetic stimulation of the various cells of the human body with a resulting cure of any disease or ailment of which the person using the product might be suffering; and (d) Represented that said product was used, endorsed, and recommended by prominent and well known physicians, scientists, hospitals, educators, and other prominent and well known persons, and had been tested and endorsed by such persons and by institutions for medical and scientific research, that it was an amazing discovery which aided nature to eliminate wastes and poisons responsible for rheumatism, arthritis, high-blood pressure, kidney troubles, and nervousness, and that it had therapeutic value in all diseases known to man and created new energy, new vitality, and was wonderful for, and soothing to, the nerves;

Facts being said product did not produce any radio-magnetic or electro-magnetic energy which was transmitted to, or had any effect upon, the body, did not cause any results other than those which would be produced as a consequence of, and because of, the heat generated thereby, was not manufactured so as to make practical application of any scientific discoveries or theories of well known scientists as above set forth, was not used, endorsed, and recommended by prominent and well known physicians, etc., nor tested and endorsed thereby, nor an amazing discovery, and did not accomplish results as above set forth, and aforesaid representations were false; Complaint SELLS:

With effect of misleading and deceiving members of the purchasing public into the erroneous belief that said various representations were true, and into purchase of his said product on account of such erroneous belief, and of diverting unfairly, as a result thereof, trade to him: from competitors who do not misrepresent their products:

Held, That such acts and practices were all to the prejudice of the public and competitors and constituted unfair methods of competition. Before Mr. Arthur F. Thomas, trial examiner.

Mr. William L. Taggart for the Commission.

Mr. A. A. McKinley, of Chicago, Ul., 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 William F. Craddick trading individually and under various names particularly those of N-Urg-Izr, Vit-O-Net, and Electronet hereinafter referred to as respondent, has been and is using unfair methods of competition m commerce, as “commerce” is defined in said act, and it appearing to the Commission 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:

Paracrary 1. The respondent, William F. Craddick, trading individually and under various names, particularly those of N-Urg-Izr, Vit-O-Net, and Electronet, has been for some time past, and is now, engaged in the business of manufacturing, advertising, distributing, and selling an electrical appliance from his principal place of business at Suite 913, 310 South Michigan Avenue, in the city of Chicago, State of Illinois, to persons located in various States of the United States and in the District of Columbia. The product is a so-called blanket. through which is run or into which is woven copper wires connected to an attachment for plugging into an electric socket which he calls N-Urg-Izr, Vit-O-Net, Electronet, and other names. The respondent causes his product, when sold, to be transported from his aforesaid place of business in the State of Mlinois to purchasers thereof located in various States other than the State of Illinois and in the District of Columbia. He maintains a course of trade and commerce in said product so distributed and sold by him between the State of Illinois and various other States of the United States and the District of Columbia.

Par. 2. In the course and conduct of said business respondent has been and is in substantial competition with other individuals and with N-URG-IZR, ETO. 841 839 Complaint firms, corporations, and partnerships engaged in the distribution and sale of similar products, and other products intended and designed for similar use, in commerce among and between the various States of the United States and the District of Columbia.

Par. 3. In the course and conduct of his business in said commerce, and for the purpose of inducing members of the public to purchase said product, respondent advertises said product in booklets, pamphlets, circulars, labels, etc., distributed among prospective purchasers, and in newspapers and magazines circulated among said prospective purchasers. In said advertisements appear statements purporting to be descriptive of said product and its effectiveness and value for the uses and purposes for which it is advertised. In said advertisements, among others, the following statements are made:.

In neuritis, it usually takes two weeks of daily treatment to stop the acute pain. This means a real genuine case of acute inflammation of the nerve sheath, Chronic or acute neuralgia yields to this method as readily as neuritis. Nerves and tissue near the nerves must be kept warm, when in a state of exhaustion sufficient to produce an ache such as is found in neuralgia. A doctor friend of mine came to me with a blood pressure of 180 mm., chronic lumbago, lame feet that he attributed to broken arches, and numerous other minor symptoms. This appeared to me to be a case of auto-intoxication and acidity. Three blanket treatments a week for four weeks, cleared up the condition which was of three years standing and had failed to yield to the usual medical procedure.

A means of getting well and staying well.

I have never failed on a case of pneumonia since the blanket has become part of my equipment. The ordinary case of pneumonia will be aborted in one or two good treatments in the electrical blanket. The rapid recovery of the patient without any complications is perhaps the most gratifying. Feel the THRILL OF GLORIOUS HEALTH. N-URG-IZR—an amazing discovery aids nature to eliminate wastes and poisons responsible for rheumatism, arthritis, high blood pressure, kidney troubles, nervousness, etc. Creates new energy—new vitality. Wonderfully soothing to nerves. “N-URG-IZR gives you three great health aids—DRY HEAT HNERGY—SWEATING—RELAXATION, Creates gentle perspiration. Quickly breaks up congestions responsible for ailments.

Scientists have found that running water continually purifies itself. Water standing still becomes stagnant—a breeder of bacteria. Apply this thought to the human body and you have the solution to many physical ills. It is one of the reasons for the success of N-URG-IZR. By means of controlled electrical warmth, circulation is improved, nature is aided in the elimination of poisons through the pores and other waste channels. It soothes nerves, relaxes the muscles and produces a delightful restful feeling. When a human body is enveloped in the N-URG-IZR Blanket, a gentle vibratory action takes place throughout the system. Every cell is stimulated by the gentle penetrating energy warmth, relaxing and resting tired nerves, aiding nature to repair broken down tissue and eliminating impurities through the pores and other waste channels.

Complaint 278. T.C.

N-URG-IZR employs a safe, sane method of sweating the patient. Its dry electrical warmth is penetrating. It produces,a gentle but profuse perspiration. Every pore in the body is dilated, permitting the elimination of waste and impurities—relieving the tired and overworked kidneys. It aids the functioning of such other eliminating channels as the bowels, liver, etc. Unlike other forms of heat treatment such as the Turkish bath, N-URG-IZR does not weaken, On the contrary its energizing warmth is usually stimulating to the patient. During influenza epidemics, hundreds of patients used N-URG-IZR with remarkable success.

Arthritis of years standing, unable to use limbs, have responded remarkably to the N-URG-IZR.

Obesity has been reduced from 1 to 2 pounds per day. Because the Shs is natural and stimulating, no weakening etfects follow. Nnormal at or underweight.

Severe cases of high blood pressure—cases where the veins eeeated the width of a pencil—have been brought down to normal within a comparatively short time.

Nervousness, insomnia, etc., have been wonderfully benefited by N-URG-{ZR. Refreshing sleep invariably follows.

Pimples, eczema and other skin disorders have disappeared. Hospitals and physicians have given this method credit for saving life in such cases as Hclampsia, Pneumonia, Shock, ete. N-URG-IZR will open the pores of the skin, increase circulation, causing a fresh ruddy glow of health to appear on the skin. In said statements, and in other statements of similar import not herein set out, respondent directly and through implication represents :

(w) That said product is created and manufactured for practical application of the biological, chemical, and other scientific discoveries and theories of well-known scientists and is the result of painstaking and long experience and tests;

(6) That the said product sets up a radio-magnetic energy which is transmitted to the person within or under its protection, thus causing an increased activity and revitalizing of the organs and cells of the body and a charging of the blood stream with electro-magnetic energy, and an elimination of many times more poisons and waste inatters than is possible by any other method, and a magnetic stimulation of the various cells of the human body with a resulting cure of any disease or ailment of which the person using product may be suffering;

(c) That said product is used, endorsed, and recommended by prominent and well-known physicians, scientists, hospitals, educators, and other prominent and well-known persons, and has been tested and endorsed by such persons and by institutions for medical and serentific research 3 N-URG-IZR, ETC. 843 839 Complaint (d) That said product is an amazing discovery, aids nature to eliminate wastes and poisons responsible for rheumatism, arthritis, high blood pressure, kidney troubles, nervousness, and has therapeutic value in all diseases known to man and creates new energy, new vitality, and is wonderful and soothing to the nerves. In truth and in fact:

(a) Said product is not so manufactured as to make practical appheation of any scientific discoveries or theories of well known scientists for the cure of human diseases or ailments; (6) Said product does not produce any radio-magnetic or electromagnetic energy which is transmitted to or has any effect upon the human body and does not cause any results other than those which would be produced as a result of and because of the heat generated in the product;

(c) Said product is not and has not been used, endorsed and recommended by prominent and well-known physicians, scientists, hospitals, educators, and other prominent and well-known persons, and has not been tested and endorsed by such persons nor by any institutions for medical and scientific research; (d) Said product is not an amazing discovery, does not aid nature to eliminate wastes and poisons responsible for rheumatism, arthritis, high blood pressure, kidney troubles, nervousness, and has not therapeutic value in all diseases known to man and does not create new energy, new vitality, and is not wonderful and soothing to the nerves. Par. 4. There are among respondents’ competitors in commerce, as herein set out, those who do not in any way misrepresent the character, and nature of their products and who do not make use of any of the misleading representations herein set out or similar ones with respect to the therapeutic value of their respective products. Par. 5. The aforesaid false and misleading statements and representations used by the respondent in offering for sale and selling the product in commerce as herein set out, has had and now has the tendency and capacity to, and does, mislead and deceive members of the purchasing public into the erroneous and mistaken belief that said representations are true and into the purchase of respondent’s product on account of said erroneous and mistaken belief. As a result thereof trade is unfairly diverted to respondent from competitors who do not in the sale and distribution of their respective products make use of the same or similar misrepresentations, to the substantial injury of said competitors in said commerce and to the injury of the public.

Par. 6. The methods, acts, and practices of respondent herein set forth are to the prejudice of the public and of competitors of the Findings 27 F.T.C. respondent as hereinabove alleged. Said methods, acts, and practices 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 Commission, to define its powers and duties, and for other purposes.” Report, Frnpincs as TO THE Facts, AND OrRpDER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission, on February 10, 1938, issued, and on February 14, 1938, served, its complaint in this proceeding upon respondent, William F. Craddick, individually, and trading as N-Urg-Izr, Vit-O-Net, and Electronet, charging him 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 respondent’s answer, certain testimony and other evidence in support of the allegations of the complaint were introduced by W. L. Taggart, attorney for the Commission. In the course of hearings herein, respondent moved for permission to withdraw said answer and to substitute therefor an answer admitting all the material allegations of fact set forth in said complaint and waiving all intervening procedure and further hearing as to said facts, which motion was granted by the Commission by order entered herein, and said substitute answer was duly filed in the office of the Commission. Thereafter, this proceeding regularly came on for final hearing before the Commission on the said complaint, testimony and evidence, and substitute answer, and the Commission, having duly considered the matter, 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 Paracrapny 1. The respondent, William F. Craddick, is an individual, trading and doing business under several names, principally N-Urg-Izr, Vit-O-Net, and Electronet, with his principal place of business located at Suite 913, 310 South Michigan Avenue, in the city of Chicago, State of Illinois. Under one or the other of such trade names, respondent has been for some time past, and is now, engaged in the business of manufacturing, advertising, selling, and distributing an electrical appliance in the nature of a blanket, which he calls N-Urg-Izr, Vit-O-Net, Electronet, and other names. The respondent causes said product to be transported from his place of business in the State of Illinois to purchasers thereof in various N-URG-IZR, ETO. 845.

8389 Findings States other than the State of Illinois and in the District of Columbia, and maintains, and for more than a year last past has maintained, a course of trade and commerce in said product so sold and distributed between the State of Illinois and various other States of the United States and the District of Columbia. Par. 2. In the course and conduct of said business respondent has been and is in substantial competition with other individuals and with firms, corporations, and partnerships engaged in the sale and distribution of similar products, and other products intended and designed for similar use, in commerce between and among the various States of the United States and the District of Columbia. Par. 3. In the course and conduct of his business in said commerce, and for the purpose of inducing members of the public to purchase said product respondent advertises said product in booklets, pamphlets, circulars, labels, and folders distributed among prospective purchasers, and in newspapers and magazines circulated among said prospective customers. In said advertisements appear statements purporting to be description of said product and its effectiveness and value for the uses and purposes for which it 1s advertised. Among such statements are the following:

In neuritis, it usually takes two weeks of daily treatment to stop the acute pain. This means a real genuine case of acute inflammation of the nerve sheath. Chronic or acute neuralgia yields to this method as readily as neuritis. Nerves and tissue near the nerves must be kept warm, when in a state of exhaustion sufficient to produce an ache such as is found in neuralgia. A doctor friend of mine came to me with a blood pressure of 180 mm., chronic lumbago, lame feet that he attributed to broken arches and numerous other minor symptoms. This appeared to me to be a case of auto-intoxication and acidity. Three blanket treatments a week for four weeks, cleared up the condition which was of three years’ standing and had failed to yield to the usual medical procedure.

A means of getting well and staying well.

I have never failed on a case of pneumonia since the blanket has become a part of my equipment. The ordinary case of pneumonia will be aborted in one or two good treatments in the electric blanket. The rapid recovery of the patient without any complications is perhaps the most gratifying. Feel the THRILL OF GLORIOUS HEALTH. N-URG-IZER—an amazing discovery aids nature to eliminate wastes and poisons responsible for rheumatism, arthritis, high blood pressure, kidney troubles, nervousness, etc. Creates new energy—new vitality. Wonderfully soothing to nerves. N-URG-IZR gives you the three great health aids—DRY HHAT ENERGY— SWEATING—RELAXATION. Creates gentle perspiration. Quickly breaks up congestions responsible for ailments.

Scientists have found that running water continually purifies itself. Water standing still becomes stagnant—a breeder of bacteria. Apply this thought to the human body and you have the solution to many physical ills. It is one of the reasons for the success of N-URG-IZR. By means of controlled electrical 185514™—40—von. 27——-56 Findings DUN. DC! warmth, circulation is improved, nature is aided in the elimination of poisons through the pores and other waste channels. It soothes nerves, relaxes the muscles, and produces a delightful restful feeling. When a human body is enveloped in the N-URG-IZR: Blanket, a gentle vibratory action takes place throughout the system. Every cell is stimulated by the gentle penetrating energy warmth, relaxing and resting tired nerves, aiding nature to repair broken down tissue and eliminating impurities through the pores and other waste channels.

N-URG-IZR employs a safe, sane method of sweating the patient. Its dry electrical warmth is penetrating. It produces a gentle but profuse perspiration. ‘Every pore in the body is dilated, permitting the elimination of waste and impurities—relieving the tired and over worked kidneys. It aids the functioning of such other eliminating channels as the bowels, liver, etc. Unlike other forms of heat treatment such as the Turkish bath, N-URG-IZR does not weaken. On the contrary its energizing warmth is usually stimulating to the patient. During the influenza epidemics hundreds of patients used N-URG-IZR with remarkable success.

Arthritis of years standing, unable to use limbs, have responded remarkably to the N-URG-IZR.

Obesity has been reduced from one to two pounds per day. Because the method is natural and stimulating, no weakening effects follow. N-URG-IZR dissolves unnecessary fat only—it does not reduce the person of normal weight or under weight.

Severe cases of high blood pressure—cases where the veins extended the width of a pencil—have been brought down to normal within a comparatively short time.

Nervousness, insomnia, etc., have been wonderfully benefited by N-URG-IZR. Refreshing sleep invariably follows.

Pimples, eczema, and other skin disorders have disappeared. Hospitals and physicians have given this method credit for saving life in such cases aS eclampsia, pneumonia, shock, ete. N-URG-IZR will open the pores of the skin, increase circulation, causing a fresh ruddy glow of health to appear on the skin.

In said statements, and in other statements of like import not herein quoted, respondent directly and by implication represents: (a) That said product is created and manufactured for practical application of the biological, chemical, and other scientific discoveries and theories of well-known scientists and is the result of painstaking and long experience and tests.

(6) That the said product sets up a radio-magnetic energy which is transmitted to the person within or under its protection, thus causing an increased activity and revitalizing of the organs and cells of the body and a charging of the blood stream with electro-magnetic energy, and an elimination of many times more poisons and waste matters than is possible by any other method, and a magnetic stimulation of the various cells of the human body with a resulting cure of any diseases or ailment of which the person using the product may be suffering.

N-URG-IZR, ETO. 847 839 Findings (c) That said product is used, endorsed, and recommended by prominent and well-known physicians, scientists, hospitals, educators, and other prominent and well-known persons, and has been tested and endorsed by such persons and by institutions for medical and scientific research.

(d) That said product is an amazing discovery, aids nature to elimimate wastes and poisons responsible for rheumatism, arthritis, high blood pressure, kidney troubles, nervousness, and has therapeutic value im all diseases known to man and creates new energy, new vitality, and is wonderfully soothing to the nerves.

In truth and in fact :

(a) Said product is not so manufactured as to make practical application of any scientific discoveries or theories of well-known scientists for the cure of human diseases or ailments. (6) Said product does not produce any radio-magnetic or electromagnetic energy which is transmitted to or has any effect upon the human body, and does not cause any results other than those which would be produced as a consequence of and because of the heat generated in the product.

(ec) Said product is not and has not been used, endorsed, and recommended by prominent and well-known physicians, scientists, hospitals, educators, and other prominent and well-known persons, and has not been tested and endorsed by such persons nor by any institutions for medical and scientific research.

(d) Said product is not an amazing discovery, does not aid nature to eliminate wastes and poisons responsible for rheumatism, arthritis, high blood pressure, kidney troubles, nervousness, and has not therapeutic value in all diseases known to man and does not create new energy, new vitality, and is not wonderful for and soothing to the nerves.

Par. 4. There are among respondent’s competitors in commerce, as herein set out, those who do not in any way misrepresent the character and nature of their products nor the effect thereof when used. Par. 5. The aforesaid false and misleading statements and representations used by the respondent in offering for sale and selling the product in commerce, as herein mentioned and described, have had, and now have, the tendency and capacity to, and do, mislead and deceive members of the purchasing public into the erroneous belief that the said representations are true, and into the purchase of respondent’s product on account of said erroneous belief. And as a result thereof, trade is diverted unfairly from respondent to competitors who do not misrepresent their product.

Order Dita tad heaOF CONCLUSION The aforesaid acts and practices of the respondent as herein alleged are all 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 the Federal Trade Commission Act. ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission, testimony and other evidence taken before Arthur F. Thomas, an examiner of the Commission, theretofore designated by it, in support of the allegations of said complaint, and the substitute answer of respondent, in which answer respondent admits all the material allegations of fact set forth in said complaint, and states that he waives all intervening procedure and further hearing as to said facts, and the Commission having made its findings as to the facts and conclusion that said respondent has violated the provisions of the Federal Trade Commission Act.

[t is ordered, That the respondent, William F. Craddick, an individual, trading as N-Urg-Izr, Vit-O-Net, and Electronet, or trading under any other name, his representatives, salesmen, agents, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale, and distribution of an electrical appliance or product described or designated as a blanket, which the respondent calls N-Urg-Izr, Vit-O-Net, and Electronet, and other names, or other product of similar design and for substantially the same uses and purposes, whether sold under these names or any other names in interstate commerce or in the District of Columbia, do forthwith cease and desist from representing, either directly or by inference:

1. That said product is created and manufactured for the practical application of the biological, chemical, and other scientific discoveries and theories of well-known scientists and is the result of painstaking and long experience and tests;

2. That said product sets up a radio-magnetic energy which is transmitted to the person within or under its protection, thus causing an increased activity and revitalizing of the organs and cells of the body, a charging of the blood stream with electro-magnetic energy, an elimination of many times more poisons and waste matters than is possible by any other method, and a magnetic stimulation of the various cells of the human body with a resulting cure of any disease or ailment of which the person using the product may be suffering; N-URG-IZR, ETO. 849 839 Order 3. That said product is used, endorsed, and recommended by prominent and well-known physicians, scientists, hospitals, educators, and other prominent and well known persons, and has been tested and endorsed by such persons and by institutions for medical and scientific research, when such are not the facts; 4. That said product is an amazing discovery, aids nature to eliminate wastes and poisons responsible for rheumatism, arthritis, high blood pressure, kidney troubles, nervousness, has therapeutic value in all diseases known to man and creates new energy, new vitality, and is wonderful for, and soothing to, the nerves; 5. That said product produces radio-magnetic or electro-magnetic energy which is transmitted to, and has any effect on, the human body, or that it causes any results on the human body other than those which would be produced by, and as a consequence and because of, the heat generated in said product.

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

Complaint 27 Rie.