Uco Food Corp

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IN THE MA'ITER OF UCO FOOD CORPORATION COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SlJBSEC. (c) OF •BEC. 2 OF AN ACT OF CONGRESS APPROVED OCT. 15, 1914, AS AMENDED BY AN ACT OF CONGRESS APPROVED JUNE 19, 1936 Docket 4271. Complaint, Attr. 28, 191,0-Decisio-n., Aug. 7, 191,1 Where a corporation engaged in the purchase, sale, and distribution of food products at wholesale-- Received and accepted allowances and discoimts in lieu of brokemge in substantial amounts in connection with the purchase of its requirements in interstate commerce, through, usually, purchasing commodities at prices lower thnn those at which they were sold to other purchasers by an amount which reflected all or a portion of the brokerage currently being paid by the sellers of such commodities to their. respective brokers for effecting sales of such commodities to other purchasers : Held, That such acts and practices were in violation of the provisions of section 2 (c) of the Clayton Act, as amended by the Robinson-Patman Act. Mr. John T. ll as lett for the Commission. Einhorn & Schachtel, of Philadelphia, Pa., for respondent. COMPLAINT The Federal Trade Commission having reason to believe that the respondent named in the caption hereof, and hereinafter more particularly designated and described, since June 19, 1936, has violated and is now violating the provisions of subsection (c) of Section 2 of the Clayton Act, as amended by the Robinson-Patman Act, approved June 19, 1036 (U. S. C. Title 15, Section 13), hereby issues its complaint stating its charges with respect thereto as follows: PARAGRAPH 1. Respondent, Uco Food Corporation, is a corporation organized and existing under the laws of the State of New Jersey with its principal office and place of business located at 506-510 Frelinghuysen Aven~e, Newark, N. J. Respondent is engaged in the purchase, sale, and distribution of food products at wholesale. PAR. 2. In the course and conduct of its said business respondent purchases a substantial portion of its requirements from sellers located in States other than the State in which the respondent is located, pursuant to which purchases commodities are caused to be shipped and transported by the respective sellers thereof across State lines to the respondent.

UCO FOOD CORPORATION 925 924 Findings PAn. 3. Since June 19, 1936, in connection with the purchase of its requireml'nts in interstate commerce, as aforesaid, respondent has recl'ived and accepted allowances and discounts in lieu of brokerage in substantial amounts.

Usually, the receipt and acceptance of the aforesaid allowances and discounts in lien of brokerage is accomplished by respondent by purchasing commodities at prices lower than the prices at which such commodities are sold to other pun:hasers thereof by an amount which reflects all or a portion of the brolwrage cmrently being paid by the sellers of such commodities to their respecti,·e brokers for effecting sales of such commodities to other purchasers. PAn. 4. The receipt and acceptance of allowances and discounts in lieu of brokerage by respondent as set forth in paragraph .3 hereof is in violation of subsection (c) of section 2 of the Clayton Act as amended.

REPOI:T, Fn~onws As TO THE FACTs, AND Onder Pursuant to the provisions of an act of Congress entitled "An Act to supplement existing laws against unlawful restraints and monopolies and for other purposes," approved October 15, 1914 (the Clayton Act), as amende(l by act of Congress approved June 19, 1936 (the Robinson-Patman Act). (U. S. C. title 15, sec. 13), the Federal Trade Commission, on the 28th day of August 19-!0, issued and server! its complaint in this proceeding upon respondent Uco Food Corporation, a corporation, clu\rging the respondent with violation of the provisions of subsection (c) of section 2 of said act. After the issuanee and ~rvice of said complaint and the tiling of respondent's answer, the Commission, by order entered herein, granted respondent's motion for permission to withdraw said answer and to substitute therefor an answer admitting all of the material allegations of fact set forth in said complaint and waiving all intervening procedure and further hearings as to said facts ami expressly Waiving the filing of briefs and oral argument, which substitute answer was duly fileJ in the office of the Commission. Thereafter this proeel'ding regularly came on for final hearing before the Commission on said complaint and substitute answer, and the Commission having duly eonsiclered the matter and being now fully advised in the premises and being of the opinion that section 2 (c) of the Clayton Act as amended by the Robinson-Patm:m Act has been violated by the respondent, now makes this its findings as to the facts and its conclusion drawn therefrom. Order. 33F. T. C.

FINDINGS AS TO THE FACTS PARAGRAPH 1. Respondent, Uco Food Corporation, is a corporation organized and existing under the laws of the State of New Jersey with its principal office and place of business located at 850 Frelinghuysen Avenue, Newark, N. J. Respondent is engaged in the purchase, sale, and distribution of food products at wholesale. PAR. 2. In the course and conduct of its said business re:;pondent purchases a substantial portion of its requirements from sellers located in States other than the State in which the respondent is located, pursuant to which purchases, commodities are caused to be shipped and transported by the respective sellers thereof across State lines to the respondent. · PAR. 3. Since June 19, 1936, in connection with the purchase of its requirements in interstate commerce, as aforesaid, respondent has received and accepted allowances and discounts in lieu of brokerage in substantial amounts.

Usually, the receipt and acceptance of the aforesaid allowances and discounts in lieu of brokerage is accomplished by respondent by purchasing commodities at prices lower than the prices at which such commodities are sold to other purchasers thereof by an amount which reflects all or a portion of the brokerage currently being paid by the sellers of such commodities to their respective brokers for effecting sales of such commodities to other purchasers. CONCLUSION In receiving and accepting allowances and discounts in lieu of brokerage fees or commissions from sellers upon purchases of commodities as herein found, respondent has~ violated the provisions of section 2 (c) of the act of Congress entitled "An Act to supplement existing laws against unlawful restraints and monopolies and for other purposes," approved October 15, 1914 (the Clayton Act), as amended by act of Congress approved June 19, 1936 (the Robinson-Patman Act).

ORDER TO CEASE AND DESIST This proceeding having bef'n heard by the Federal Trade Commission upon the complaint of the Commission and substitute answer of respondent, in which answer respondent admits all of the material all£>gations of fact set forth in said complaint and states that it waives all intervening procedure and further hearings as to said facts and expressly waives the filing of briefs and oral argument, and the Commission having made its findings as to the facts and conclu- UCO FOOD CORPORATION 927 924 Order sion that said respondent has violated the provisions of section 2 (c) of the act of Congress entitled "An Act to supplement existing laws against unlawful restraints and monopolies and for other purposes," approved October 15, 1914 (the Clayton Act), as amended by act of Congress approved June 19, 1936' (the Robinson-Patman Act) (U.S. C., title 15, sec. 13).

It is ordered, That the respondent, L'co Food Corporation, a corporation, its agents, employees, and representatives, in the purchase of commodities in commerce, as "commerce" is defined in the aforesaid Clayton Act, do forthwith cease and desist from: 1. Receiving or accepting from sellers, directly or indirectly, any allowance or discount in lieu of brokerage fees or commissions in whatever manner or form said allowances, discounts, brokerage fees, or ~mmissions may be offered, allowed, granted, paid, ·or transmitted; and 2. Receiving or accepting from sellers in any manner or form whatever directly or indirectly, anything of value as a commission, brokerage fee or other compensation or any allowance or discount in lieu thereof upon purchases of commodities by respondent. It is further ordered, That the said respondent, Uco Food Corpora.tion, a corporation, shall, within 60 days after service upon it of this order, file with the Commission a report in writing setting forth in detail the manner and form in which it has complied with the order to cease and desist hereinabove set forth by the Commission. 928 FEDERAL TRADE COl\IMISSIO~ DECISIONS Complaint 33 F. T. C.