A. Krasne, Inc

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IN THE MATTER OF A. KRASNE, INC.

COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOI~ATION OF SUBSEC, (c) OF SEC. 2 OF AN ACT OF CONGRESS APPROVED OCT. 15, 1914, AS AMENDED BY AN ACT OF CONGRESS APPROVF.D JUNE 19, 1936 Docket 4280. Complaint, Aug. 1!8, 1940-Decision, Nov. 14, 1941 Where a corporation engaged in purchasing, selling, and distributing food products at wholesale, buying a substantial portion of its requirements from sellers In other States- ' Received and accepted allowances and discounts in lieu of brokerage in substantial amounts through, usually, purchash1g commodities at prices lower than those at which they were sold to other purchasers by an amount which retlected all or a portion of the brokerage currently being paid by the sellers to their respective brokers for effecting such sales: Held, That In receiving and accepting allowances and discounts in lieu of brokerage fees or commissions from sellers upon such purchases, it violated the provisions of subsection (c) of section 2 of the Clayton Act, as amended by the Robinson-Patman Act.

Mr. John T. Haslett for the Commission.

Poses, Katcher & Driesen, of New York City, for respondent. Complaint 1 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, 1936 (U.S. C. title 15, sec. 14), hereby issues its complaint stating its charges with respect thereto as follows: • PARAGRAPH 1. Respondent, A." Krasne, Inc., is a corporation organ- Ized and existing under the laws of the State of Delaware, with its principal office and place of business located at 845 East One Hundred ~nd Thirty-sixth Street, New York, N. Y. Respondent is engaged In the business of purchasing, selling, and distributing food products at wholesale.

PAR. 2. In the course and conduct of its said business respondent ~urchases 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 1 By a stipulation between respondent anrl the Commission, approved October 15, 1940, the compiulnt was amended, nunc pro tunc, by correcting respondent's name to "A. Krasne, Inc.•• 122 FEDE·RAL TRADE COM.MISSTON DE'ClSIONS Findings 34F.T. C.

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. PAR. 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.

REPORT, FINDINGS 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 amended by an 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 1940, issued and thereafter served its complaint in this proceeding upon respondent A. Krasne, Inc., a corporation, charging the respondent with violation of the provisions of subsection (c) of section 2 of the said act. After the issuance and service of said complaint and the filing 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 the material allegations of fact set forth in said complaint and waiving all intervening procedure and further hearings as to said facts and expressly waiving the filing of briefs and oral argument, which substitute answer was duly filed in the office of the Commission. Thereafter this proceeding regularly came on for final hearing before the Commission on said complain~ and substitute answer; and the Commission, having duly considered the matter and being now fully advised in the premises, makes this its findings as to the facts and its conclusion drawn therefrom:

A. KRASNE, INC. 123 121 Order FINDINGS AS TO THE FACTS PARAGRAPH 1. Respondent, A. Krasne, Inc., is a corporation organized and existing under the laws of the State of Delaware, with its principal office and place of business located at 845 East One Hundred and Thirty-sixth Street, New York, N. Y. Respondent is engaged in the business of purchasing, selling, and distributing food products at wholesale.

PAR. 2. In the course and conduct of its said business respondent purchases a substantial portion of its 1:eauirements 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.

PAn. 3. Since June 19, 1936, in connection with the purchase of its requirements in interstate com~erce, 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 ancl discounts in lieu of brokerage is accomplished by respondent by purchasing commodities at prices lower than the prices at which such comn;todities 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 t>ffecting 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 com- :rnodities, as set forth in paragraph 3 hereof, the respondent has 'V'iolated the provisions of subsection (c) of section 2 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 amended by an net of Congress approved June 19, 1936 (the Robinson-Patmnn Act). ORDER TO CEASE A:ND DESIST . This proceeding having been heard by the Federal Trade Commis- Slon upon the complaint o:f the Commission and the substitute answer of respondent, in which answer respondent admits all the material allegations of fact set forth in said complaint and stnten that it 124 FEDE-RAL TRADE COMMI'SSION .DECISIONS Order 34F.T.C.

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 conclusion that said respondent has violated the provisions of subsection (c) of secticn 2 of an act of Congress entitled "An net to supplement existing laws against unlawful restraints and monopoliest and for other purposes," approved October 15, 1914 (the Clayton Act), as amended by an act of Congress approved June 19, 1936 (the Robinson-Patman Act), (U.S. C., title 15, sec. 13) : It is ordered, That in .the course of commerce, as "commerce" is defined in the aforesaid Clayton Act, .the respondent A. Krasne, Inc.t a corporation, its officers, agents, representatives, and employeest directly or through any corporate or other device, do forthwith cease and desist from :

1. Receiving or accepting, 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 commissions may be offered, allowed, granted, paid, or transmitted. . 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 lie_u thereof upon purchases of commodities made by respondent. It is further ordo·ed, That the said respondent shall, within 60 days after ~en-i.ce 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 this order.

MERCHANDISE SALES SYNDICATE 125 Syllabus