National Converters Institute et al.

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IN THE l\1ATI'ER OF NATIONAL CONVERTERS INSTITUTE ET AL.

COMPLAINT, FINDINGS, AND ORDER Dl REGARD TO THE ALLEGED VIOLATION 01•' SEC. 5 OF AN .~CT OF CONGRESS APPROVED SEPT, 26, 1914 Docket 389"1. Complaint, Sept. 19, 1939-Deoision, Aug. 28, 19~0 \Vllere nine corporations which were engaged in converting for sale transparent cellulose sheets and rolls, such as cellophanl', sylphrap, kodapak, protl'ctoid, and other similar transparent matl'rials, and In sale thereof to customers and u~;ers throughout the several States of the United States, and which represented, In the aggregate, 90 pet·cent of the outiJut and sale of said products, and were members of a voluntary unincorporated trade association or institute-- (a) Filed with theit· said Institute, for cellulose sheets a,11d rolls, base price lists and discounts and deviations tlwreupon not available to the public, and agreed that they woultl sell saitl products In the course and conduct of their business at approximately prices statetl on price lit;ts, and would maintain such prices and discounts to best of theit• ability, and exchanged information as to conduct of their businesses by repot·ting orders received flom and invoices issued to customers in sale of products In question through medium of said Institute, as clearing house, and secretary thereof, by whom current price li.sts submitted by members were checke<l against price information contained<l in such orders and invoices, and by whom said information and repot·ts were summarized and weekly bulletin issue<l to each member showing dollm· volume of sales to all participating members and total number of orders taken by all such members, and by whom, in addition to afo1·esaid summarizing and distribution of such rt>ports, data, and information not available to public, there were issued monthly summary reports showing total volume of sales of ull pnrticipating members and, to each member, his own proportion in comparison therewith; and (b) Furnished information, upon request of mt>mber, ns to instances wltet·e other members had sold products at prices and discounts other than those set forth in their respective price lists, In order to maintain net prices and discounts which such member corporations had theretofore agreed to maintain, through setting forth, In Instances involved, (1) percentage of tlle<l price over or under price at which sale was made, (2) tlate of sale, and (3) size of sale; and through supplying further, upon request, an<l on forms supplie<l by Institute, detailed lnfot·mation as to sales of products in question;

With the result that such acts and practices hin<lered and prevented price competition between and among corporations aforesaid in sale of theit· f;aid products mulle and converted from c·ellulose shPPts as afort>said, and hall dangerous tem.Iency so to hindet• lln<l prevent, fill(] placE'll in suitl corporations power 111111 control to enhance pricl'S in question, an<l tende1l dunget·ously to crt>llte in tlwm uml said Institute and individual, monopoly of said products in commerce lm·oh·ed, an<l unrensonably restrained lntet·state commerce therein:

Complaint 31l•'. T. C. Held, That such acts and p1·actices were all to the prejudice of the public and constituted unfair methods of competition and unfair acts and practices In commerce.

11/r. George lV. Williams for the Commission. llfr. John Walsh, of ·washington, D. C., for National Converters Institute, Richard :M. McClure, Caton Printing Co., and Pioneer ·wrapper & Printing Co., and, along with- JI./r. Franklin JI.J. 1Varden, of Chicago, Ill., for Shellmar Products Co.; llfr. Edwa·rd J. Dempsey, of Oshkosh, Wise., for Milprint Products Corp.; 111 arsllall & Jf arshall, of Chicago, Ill., for Traver Paper & Manufacturing Co.; "1/r. Clark T. McConnell, of Cleveland, Ohio, for Dobeckmun Co.; and Wise, Corlett & Canfield, of New York City, for Dennison Manufacturing Co. Ballard, Spahr, Andrew & hgersoll, of Philadelphia, Pa., for Thomas l\I. Royal & Co.

Nutter, 11/cOlennen & Fish, of Boston, Muss., for Nashua Gummed & Coated Paper Co.

COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and by virtue of the authority vested in it by said act, the Federal Trade Commission, having reason to believe that each and all of the parties named in the caption hereof and more particularly described herein in paragraphs 1 and 2, and hereinafter refe_rred to as respondents, have violat~d the provisions of the 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 :

PARAGRAPH 1. Respondent National Converters Institute, hereinafter referred to as "Institute," is a voluntary unincorporated trade association originally organized in September 1930, and reorganized in September 1935, principally by representatives of the respondents Shellmar Products Co., l\filprint Products Corporation, and the Traver Paper & Manufacturing Co., the principal members of the Transparent Materials Converters Industry. Said Institute has its principal office and place of business located at 111 ·west Washington Street in the city of Chicago, State of Illinois. The membership of said respondent Institute since September 193:1 has consisted of the several corporations hereinafter named and described in paragraph 2 herein and hereinafter referred to as member respondents. All of said member respondents were during the time~ mentioned herein, and still are, corporations engaged in the business of converting for sale transparent cellulose sheeting (such as cello- NATIONAL CONVERTERS INSTITUTE ET AL. 803 801 Complaint phane, sylphrap, kodapak, protectoid, and other similar transparent materials) into bags, envelopes, tubes, l)()Uches, sheets, rolls, ribbons, and other similar miscellaneous transparent products, hereinafter referred to as "products," and in the printing, stamping, or otherwise imprinting or placing various advertising description or other mattl'r ·upon said products, and in the sale thereof to the. consumers and users of such products located throughout the several States of the United States, causing said products when sold to be shipped or otherwise transported from the States wherein said member respondents maintain their respective factories and places of business to the purchaser thereof located in States other than the said States, and there has been, and now is, a constant current and course of trade and commerce in said products between and among the several States and territories of the United States and in the District of Columbia. PAn. 2. The following-described corporations, member respondents, have been since September 1935, and now are, except as hereinafter indicated, members of respondent Institute and engaged generally in the said business hereinbefore described in paragraph 1. (a) Respondent Shellmar Products Co. is a corporation organized, existing and doing business under and by virtue of the laws of the ~tate of Delaware, with its factory, principal office, and place of busi- 11ess located at 224 South Michigan A venue in the city of Chicago, State of Illinois. Said member respondent is the largest converter of cellulose sheeting into the products hereinbefore described in paragraph 1 in the UnHed States, and is the owner of a patent on a machine for, and a process of, printing and finishing cellophane, and has issued licenses to some of the other member respondents to use its said process and machine.

(b) Respondent Mil print Products Corporation is a corporation organized, existing, and doing business under and by virtue of the laws of the State of Delaware, with its factory, principal office, and place of business located at 431 'Vest Florida Street in the city of Milwaukee, State of Wisconsin. It has branch factories in the cities of Philadelphia, Pa., and Los Angeles, Calif. This member respondent uses a rubber type with analine ink to print its said produ<:ts nnd is not a licensee of member-respondent Shellmar Products Co. (c) Respondent Traver Paper & Manufacturing Co. is a corporation organized, existing-, and doing- business under and by virtue of the laws of the State of Illinois, with its factory, principal office and place of business, located at 358 Wl'st Ontario Street in the city of Chicago-o. in said State.

(d) Respondent DoLeckmun Co. is a corporation org-anized, existing-, and doing busine.c;s under and by virtue of the laws of the State Complaint 31l!'.T. C. of Ohio, with its factory, principal office and place of business located at 3301 :Monroe Avenue, city of Cleveland, in said State. Said member respondent is a licensee of the member-respondent Shellmar Products Co. in the production by the gravure method of printing upon transparent materials such as cellophane.

(e) Respondent Dennison Manufacturing Co. is a corporation, organized, existing. and doing business under and by virtue of the laws of the State of Massachusetts, with its factory, principal office and place of business located in the city of Framingham, in said State. Said member respondent is a licensee of member-respondent Shellmar Products Co. in the production by the gravure method of printing upon transparent materials such as cellophane. (f) Respondent Caton Printing Co. is a corporation organized, existing, and doing business under and by virtue of the laws of the State of Missouri, with its factory, principal office, and place of business located at 422 'Vest Eighth Street, in the city of Kansas City, in said State.

(g) Respondent Thomasl\f. Royal & Co. is a corporation organized, existing, and doing business under and by virtue of the laws of the State of Pennsylvania, with its factory, principal office and place of business located at 5800 North Seventh Street, in the city of Philadelphia, in said State. Said member respondent prints cellophane by the use of rubber plates, which is a cheaper process than the gravure process patented by said member-respondent Shellmar Products Co. · (h) Respondent Nashua Gummed & Coated Paper Co. is a corporation organized, existing, and doing business under and by virtue of the laws of the State of Massachusetts, with its factory, principal office, and place of business located in the city of Nashua, in the State of New Hampshire. Said member respondent is a licensee of the member-respondent Shellmar Products Co. in the production by the gravure method of printing upon transparent materials such as cellophane. Said member respondent resigned its membership in said respondent Institute effective January 1, 1939, and since that date lias not actively cooperated with the said Institute in its activities as lwreinafter set forth.

(i) Respondent Pioneer 'Vrapper & Printing Co. is a corporation organized, existing and doing business under and by virtue of the Jaws of the State of California, with its factory, principal office, and place of business located at 837 East Fourth Place in the city of Los Angeles, in the said State. Said member respondent resi6rned its membership in the respondent. Institute in January 1938, but con- NATIO~AL CONVERTERS INSTITUTE E'f AL. 805 801 Complaint tinned to cooperate with the said Institute and its members as hereinafter set forth.

PAR. 3. Respondent Richard M. l\IcClure, since September 1935, has been and now is secretary-treasurer and manager of respondent Institute, with office at 111 ·west 'Vashington Street, Chicago, Ill., and as such has directed its activities, including the conduct of meetings of said member respondents, the general correspondence of the said Institute, the collection, compilation, and dissemination of such statistical and other information as required by the member respondents in the carrying out of its "sales reporting and statistical service," the issuance of a manual of instructions under said plan, and the performance of all necessary acts in carrying out the agreement between and among the said member respondents as hereinafter set forth. PAR. 4. Said member respondents in the course and conduct of their several businesses, as hereinbefore described. but for the matters and things hereinafter set forth wot1ld be naturally and normally in competition with each other and/or in competition with other individuals, copartners, and corporations also engaged in the business of converting cellnlose sheeting and in the manufacturing of said products described in paragraph 1 herein, and in the sale thereof to customers located throughout the several States of the United States. The said member respondents have been at all times herein mentioned, and now are, the dominant factors in the Transparent l\Iaterials Converters Industry, controlling more than 90 percent of the output and sale of said products manufactured or converted from cellulose sheeting, as more particularly described in paragraph 1 herein. PAR. 5. The said member responde.nts hereinbefore named and de- ~cribed, during the period of time. to wit, from September 1930, and particularly from September 1935, to the date of this complaint, have entered into and carried ont an agreement, combination, and conspiracy w·ith each other and with other persons, including respondent Richard M. McClure, now acting as manager of respondent Institute, to hinder and suppress competition in the interstate sale and distribution of said products hereinbefore mentioned and described in paragraph 1, and also to hinder and suppress competition lx>tween a ncl among manufacturers of said products in the interstate sale and distribution of said products to the consumers and users thereof and to create a monopoly in the manufacture and sale of said products in the United States in said membrr respondents. Pursuant to said agreement, combination, and conspiracy sail.l respondents haw respectiYely and cooperatively performed and are now p:::-rforming the following acts and practices. to wit:

Complaint 311!'. T. C. 1. 1\Iember respondent corporations through the medium of said respondent Institute and respondent Richard 1\I. McClure, manager thereof, fix uniform prices at which their said products are to be sold, including the discounts therefrom to be allowed to the purchasers thereof.

2. Member respondent corporations publish and issue price lists of said products to the trade and through the medium of said respondent Institute and respondent Richard 1\1. McClure, manager thereof, exchange current price lists of said products in order to establish and maintain uniform net prices at which the respective members will sell said products in various quantities to the purchasers thereof located in various States of the United Stutes and in the District of Columbia. 3. 1\Iember respondent corporations, through the medium of respondent Institute and respondent Richard M. McClure, its manager, acting as a clearing house, exchange confidential detailed information daily as to conduct of their said businesses as to order:; received from, and invoices issued to, customers in the sale of said products. 4. Said respondent Richard. 1\I. McClure, acting as manager of respondent Institute, checks the c·urrent price lists of said products submitted by said member respondents to him against the price information contained in orders and invoices received from said member respondents as set' forth .in subparagraphs (2) and (3) herein; summarizes the reports and issues a weekly bulletin to each member respondent showing- (a) the dollar volume of sales to all participating member respondents;

(b) the total number of orders taken by all participating member respondents;

(c) the individual member respondent's proportion to the foregoing total;

and also summarizes said reports and issues a monthly report thereon showing- (1) the total dollar volume of sales of all participating member respondents by geographical location, and to the individual member respondent his proportion in comparison therewith; and (2) a rpport showing the total sales broken down by commodities of all members for each commodity carried, and to the individual member respondent his relation thereto. 5. Said member respondent corporations adhere to the uniform prices and discounts as set forth in their said price lists issued aml exchanged by them as set forth in subparagraph (2) herein and file NATIONAL CONVERTERS INSTITUTE ET AL. 807 801 Complaint with the said respondent Institute reports of deviations from the said price lists and prices and discounts fixed and agreed upon as hereinbefore set forth, at which their said products are to be sold. 6. Said respondent Richard :M. McClure as manager of respondent Institute, upon request of any member respondent, furnishes information as to instances of where other member respondents have sold their said products at prices and discounts other than those set forth in their said respective price lists in the following manner, to wit: (1) The percentage of the filed price over or under the price at which the sale was made;

(2) the date of the sale; and (3) the size of the sale.

P.\R. 6. Said member respondents, as a result of the activities described in paragraph 5 herein, have sold their said products at uniform prices and discounts to their respective customers located in the same geographical area and buying in comparable quantities since September 1930, or so long as they were a member of respondent Institute, except in a few instances where they sold at lower net prices to meet the competition of manufacturers of said products who were not members of said respondent Institute. Approximately 70 percent of the total volume of sales of said products by said member respondents throughout the United States were during the past 3 years and now are sold at prices and discounts and on terms fixed and maintained by said member respondent and set forth and described in paragraph 5 herein.

PAR. 7. As a result of said &agreement, combination, and conspiracy and the acts and practices performed thereunder and pursuant thereto by said respondents ns hereinbefore set forth, the consumers and users of said products, more particularly described in paragraph 1 lwrein, since September 1930, have been and now are forced and compelled to pay to said member respondents prices for said products which are arbitrarily fixed and maintained at artificial levels and have been and now are deprived, to their detriment, of normal and free competition between and among said member-respondent corporations in the purchase of said products; and due to the dominant position in the industry of the said member respondents, the consumers and users of said products have been unable to purchase their requirements from manufacturers and converters of said products who were not members of said respondent Institute and the said member respondents have been and now are the only adequate sources of supply of said products.

PAn. 8. The acts and practices of the said respondents as herein allege<l nre all to the prejudice of the public; have a dangerous 20G~t6m--4t--vol.31----~4 Fivuings 31 F. T. C. tendency to hinder and prevent, and have actually hindered and prevented, price competition between and among said member-respondent corporations in the sale of said products manufactured and converted from cellulose sheeting (such as cellophane, sylphrap, kodapak, protectoid and other similar transparent materials) in commerce within the intent and meaning of the Federal Trade Commission Act; have placed in said member respondents the power to control and enhance prices of said products; have a dangerous tendency to create in respondents a monopoly in said products in such commerce; have tmreasonably restrained such commerce in products manufactured and converted from cellulose sheeting, and constitute unfair methods of competition in commerce within the intent and meaning of the Federal Trade Commission Act.

REPORT, FINDINGS AS TO THE FACTS, AND OIWETI Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission, on the 19th day of September 1939, issued and served its complaint in this proceeding upon said respondents, charging them with the use of unfair methods of competition in commerce in violation of the provisions of said act. The respondents duly filed their answers in this proceeding. Thereafter, a stipulation was entered into whereby it was stipulated and agreed that a statement of facts signed and executed by the respondents and their counsel and ,V, 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 and 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, accepted and filed, 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. Respondent, National Converters Institute, hereinafter referred to as "Institute'' is a voluntary unincorporated trade association originally organized in September 1930, and reorganized in KATIONAL CONVERTERS I:XSTITUTE ET AL. 809 801 Findings August 1933, and that its principal office and place of business is located at 111 ·west ·washington Street, in the city of Chicago, State of Illinois.

PAR. 2. The following corporate respondents have been since September 1933, and now are, except as hereinafter indicated, members of respondent Institute, and are engaged generally in the manufacture of cellulose sheets and rolls which are sold by said respondent in interstate commerce.

(a) Shellmar Products Co. is a corporation organized, existing, and doing business under and by virtue of the laws of the State of Delaware, having its factory, principal office, and place of business at l\Iount Vernon, Ohio.

(b) l\lilprint Products Corporation (now l\Iilprint, Inc.) is a corporation organized, existing, and doing business under and by virtue of the laws of the State of Delaware, with its factory, principal office, and place of business located at 431 'Vest Florida Street in the city of Milwaukee, State of ·wisconsin, and it has branch factories in the cities of Philadelphia, Pa., and Los Angeles, Calif. (c) Traver Paper Corporation (formerly known as Traver Paper & Manufacturing Co.) is a corporation organized, existing, and doing business under and by virtue of the laws of the State of Illinois, with its factory, principal office and place of business located at 358 'Vest Ontario Street, in the city of Chicago, in said State. (d) Dobeckmun Co. is a corporation organized, existing and doing business under and by virtue of the laws of the State of Ohio, with its factory, principal office and place of business located at 3301 l\fonroe Avenue, city of Cleveland, in said State.

(e) Dennison Manufacturing Co. is a corporation, organized, existing, and doing business under and by virtue of the laws of the State of Massachusetts, with its factory, principal office and place of business located in the city of Framingham, in said State. (f) Caton Printing Co. is a corporation organized, existing, and doing business under and by virtue of the laws of the State of Missouri, with its factory, principal office, and place of business located at 422 West Eighth Street, h1 the city of Kansas City, in said State. (g) Thomas l\I. Royal & Co. is a corporation organized, existing, and doing business under and by virtue of the laws of the State of Pennsylvania, with its factory, principal office, and place of business located at 5800 North Seventh Street, in the city of Philadelphia, in said State. (h) Nashua Gummed & Coated Paper Co. is a corporation organized, existing and doing business under and by virtue of the laws of the State of Massachusetts, with its factory, principal office, and Findings 31 F. T. C. place of business located in the city of Nashua, in the State of New Hampshire.

(i) Pioneer ·wrapper & Printing Co. is a corporation organized, existing, and doing business under and by virtue of the laws of the State of California, with its factory, principal office, and place of business located at 837 East Fourth Place in the city of Los Angeles, in said State.

PAR. 3. That the following named corporate respondents resigned their respective memberships in said Institute shortly prior to the service of the complaint herein, to wit: Pioneer 'Vrapper & Printing Co., Nashua Gummed & Coated Paper Co., and Thomas l\1. Royal & Co.

PAR. 4. The respondent Institute was first organized in 1931, with the following members:

Caton Printing Co., Kansas City, Mo.

Edward E. Cox Printer, Inc., Hartford City, Ind. 1\filprint Products Corporation, Milwaukee, Wis. Package Paper Company, Holyoke, l\Iass.

Shellmar Products Co., Chicago, Ill.

Traver Paper & Manufacturing Co.~ Chicago, Ill. Transparent Package & Printing Corporation, New York City. Dennison Manufacturing Co., Framingham, 1\fass. Gabriel-l\leyerfeld Co., Ltd., San Francisco, Calif. 'Vestern Paper Converting Co., Salem, Oreg. Pioneer Wrapper & Printing Co., Los Angeles, Calif. with Wainwright Davis, the Secretary and active officer thereof. PAR. 5. Corporate respondents are engaged in the business of converting for sale transparent cellulose sheets and rolls such as cellophane, sylphrap, kodapak, protectoid, and other similar transparent materials, hereinafter referred to as "products," and in the sal~ thereof to customers and users of said products located throughout the several States of the United States, causing said products when sold to be shipped or otherwise transported from States wherein said members respondents maintain their respective factories and places of business to the purchasers thereof located in the States other than the said States of origin, and there is, and has been, a constant current and course of trade in commerce in said products bet.ween and among the several States of the United States and in the District of Columbia.

PAR. 6. Respondent, Richard l\f. )!cClure, since August 1935, has been, and now is, secretary-treasurer and manager of the Institute, and has directed its activities, including the conduct of meetings of representatives of members of the Institute, and has collt>eted, com- NATIONAL CONVERTERS INSTITUTE ET AL. 811 SOl Fh:dings piled, and disseminated statistical information, and has conducted its sales reporting and statistical service. PAR. 7. The membership of respondent Institute has at all times represented approximately 90 percent of the output and sale of said products. The respondents Shellmar Products Co., Millprint Products Corporation, and Traver Paper Corporation do, and since the organization of said Institute have done, approximately 80 percent of the business done by members of said Institute in sheets and rolls. PAR. 8. Corporate respondents, Shellmar Products Co., Milprint Products Corporation, Traver Paper & Manufacturing Co., Dobeckmun Co., Dennison Manufacturing Co., Caton Printin~ Co., Pioneer 'V"rapper l~ Printing Co., file, and the corporate respondents, Thomas ltf. Royal & Co. and Nashua Gummed & Coated Paper Co., during their membership in said Institute, namely, from March 1933 to August 28, 1939, and December 1937, to February 28, 1939, respectively, filed, uniform base price lists and discounts and deviations therefrom of cellulose sheets and rolls with the Institute which are not. available to the public, and agree or agreed, as the case may be, among themselves that each respondent will sell said products in the course and conduct of its business, as above defined, at approximately the prices stated on its price list and that they will all maintain said prices and discounts to the best of their ability. The corporate respondents, Thomas M. Royal & Co. and Nashua Gummed & Coated Paper Co. did not stipulate in the aforesaid stipulation of facts that they, or either of them, agreed between themselves or with the other corporate respondents that each respondent would sell said products in the course of its business at approximately the prices stated on its price list and that all corporate respondents would maintain said prices and discounts to the best of their ability. All of the corporate respondents, except the corporate respondents, Thomas M. Royal & Co. and Nashua Gummed & Coated Paper Co., stipulated in the aforesaid stipulation of facts that all corporate respondents, including the corporate respondents, Thomas M. Royal & Co. and Nashua Gummed & Coated Paper Co., did enter into such agreement. The corporate respondents, Thomas M. Royal & Co. and Nashua Gummed & Coated Paper Co., stipulated in the aforesaid stipulation of fac.ts that they were members of the respondent Institute during the times above-mentioned and participated and cooperated in the activities of said Institute in the manner herein found, and that they sold said products at approximately the prices stated on said price lists. The Commission therefore finds, as here· inabove stated, that the corporate respondents, Thomas M. Royal & Co. and Nashua Gummed & Coated Paper Co., did a~ree with all Conclusion 31 F. T. C. other corporate respondents that each respondent would sell said products in the course and conduct of its business at approximately the prices stated on its price list and that they would all maintain said prices and discounts to the best of their ability. PAR. 9. That, through the medium of said Institute and said Mc- Clure, as secretary thereof, acting as a clearing house, the said corporate respondents exchange information as to the conduct of their businesses as above described, by reporting orders received from, and invoices issued to, customers in the sale of said products, in commerce, as commerce is above ddined, and the said McClure, acting as l\Ianager of respondent Institute checks the current price lists of said products submitted by said member respondents to him against the price information contained in said orders and invoices receh·ed. He also summarizes said information and reports in reference to sales, and issues a weekly bulletin to each member of respondent Institute showing- ( a) the dollar volmne of sale to all participating member respondents, and (b) the total number of orders taken by all participating member respondents.

That said reports, data, and information are not available to the public. PAR. 10. The said McClure also summarizes said reports and issues a monthly report thereon showing the total volume of sales of said rolls and sheets of all participating member respondents, and to the individual member respondents, his proportion in comparison therewith.

PAR. 11. Said respondent 1\IcClure, as manager of said Institute, upon the request of any member respondent, furnishes information as to instances where other members have sold said products at prices and discounts other than those set forth in their respective price lists, in the following manner, to wit:

(a) the percentage of the filed price over or under the price at which the sale was made;

(b) the date of the sale; and (e) the size of the sale.

Provision is also made for the supplying to members detailed information as to sales of said products upon the request of any member, !inch information to bP made upon forms supplied by the Institute. CO:SCLUSION The aforesaid acts and practices of said respondents are all to the prejudice of the public, have a dangerous tendency to hinder and NATIONAL CONVERTERS INSTITUTE ET AL. 813 801 Order prennt and have actually hindered and prevented price competition between and among said member respondents corporations in the sale of said products manufactured and converted from cellulose sheets, such as cellophane, sylphrap, kodapak, protectoid, and other similar transparent materials, in commerce within the intent and meaning of the Federal Trade Commission Act; have placed in said member respondents the power and control to enhance prices of said products and have a dangerous tendency to create in respondents a monopoly in such products in such commerce; have unreasonably restrained interstate commerce in such products and constitute unfair methods of competition and unfair acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act. ORDER TO CEASE AND DESIST This proceeding having been lH:>ard by the Federal Trade Commission upon the complaint of the Commission, the answers of the respondents, and a stipulation as to the facts entered into between counsel for the respondents herein and ,V. T. Kelley, chief counsel for the Commission, which provides, among other things, that without further evidence or other intervening procedure, the Commission may issue and serve upon the respondents herein findings as to the facts und conclusion based thereon and an order disposing of the proceeding, and the Commission having made its findings as to the facts and conelusion that said respondents have violated the provisions of the Federa] Trade Commission Act.

It is ordered, That the respondents, their officers, representatives, agents, and employees, directly or through any corporate or other device in connection with the offering for sale, sale and distribution in commerce among and between the several States of the United States and in the District of Columbia, of cellulose sheets and rolls or other similar products do forthwith cease and desist from: 1. Filing uniform prices and discounts at which their said products are to be sold either directly or through the medium of respondent Institute and respondent Richard M. McClure, or any other agency.

2. Exchanging through the medium of respondent Institute and respondent Richard M. McClure, manager thereof, or any other agency, price lists, containing proposed or future prices and discounts of said prollucts in order to establish net prices at which said respondent corporations will sell said products. 3. Filing with said respondent Institute and respondent Richard 1\I. McClure, or any other agency, deviations in current price lists of 01·der 31F. T. C.

said product in order to establish and maintain uniform net prices at which they will sell said products.

4. Agreeing among themselves that they will maintain said proposed future prices and discounts published by them and filed with respondent Institute and respondent Richard M. McClure, or any other agency.

5. Collecting or disseminating information as to instances where respondent corporations have sold their products at prices and discounts other than those set forth in their respective price lists, in order to maintain the net prices and discounts which respondent corporations theretofore agreed to maintain.

It is fwrther 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.

POPPER & KLEIN, INC., ETC. 815 Syllabus