Moretrencii Corp

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IN THE MATTER OF MORETRENCH CORPORATION l\IODIFIED CEASE AND DESIST ORDER Docket 3262. August 135, 1942 .

Aloditled order, pursuant to provisions of Sec. 5 (I) of Federal Trade Commission Act, and in accordance with decree below referred to In proceeding in question, in which original order issued on Feb. 6, 193!), 28 F. T. C. 297, and in Which Circuit Court of Appeals for Second Circuit on 1\:lay 4, 1942, in Jloretrench Oorpomtion v. Federal Trade Commission, 127 F. (2d) 7!.l2, 34 F. T. C, 18·!9, rendered its opinion and on 1\Iay 21, 1!)42,. issued its decree modifying aforesaid order of the Commission and affirming the same as so lt ~odifledequtr!ng respondent, its officers, etc., In connection with offer, etc., In Interstate commerce, or In the District of Columbia, of wellpoints and wellpoint systems, to cease and desist from (1) misrepresenting tlle amount of m;~oo­ structed water-passing screen area of a competitive wellpoint, as tllere set forth; (2) representing that well points made by its COI\Ipetitors have only a limited use as jetting points, etc., or are otherwise inefficient, etc., as therein stated; (3) representing that one of its wellpoints is equal or superior to five of any other well points; ( 4) representing that its well points never clog up; and (5) representing that contr,'lctors all over the world testify that operating costs of Its system are always GO percent or any other constant percentage lower tllan tho~e of competitive 'wellpoint systems. Modified OnnEn TO CEASE AND DESIST 1' 'this proceeding coming on for further heai.·ing before the Federal tade Commission and it appearing that on February 6, 1939, the Commission made its findings as t6 the facts herein and concluded ~erefrom that the respondent had violated certain provisions of the ederal Trade Commission Act and thereupon issued and caused to he served on the respondent its order requiring respondent to cease and desist from such violations; and it further appearing that on .t\april 6, 1939, the respondent filed with the United States Circuit Court of Appeals for the Second Circuit its petition to review and bt .aside said order to cease and desist, and that on May 4, 1942, the lllted States Circuit Court of Appeals for the Second Circuit rendered its opinion and on May 21, 1942, issued its decree modifying the aforesaid order of the Commission in certain particulars and 111Iirming said order as so modified. · Now, therefore, Pursuant to the provisions of subsection (i) of Section 5 of the Federal Trade Commission Act, the Commission Order 35F. T.O.

issues this, its modified order to cease and desist in conformity with said decree :

It is ordered, That the respondent, Moretrench Corporation, its ofli· cers, representatives, agents, and employees, directly or through any corporate or other device, in connection with the offering for sale, ~ale, and distribution of wellpoints and wellpoint systems in interd state commerce or in the District of Columbia, do forthwith cease an desist from: ' · · 1. Misrepresenting the amount of unobstructed water-passing scr~ll area of a competitive wellpoint, either directly or by comparison wxth its own wellpoint. · . . 2. Representing that wellpoints manufactured by its competit?rs have only a limit~d use as jetting points, or back waste the jettxn~ water, or are otherwise inefficient or difficult to jet because equipped with only one valve. ·· 3. Representing that one of its wellpoints is equal or superior to five of any other wellpoints. · 4. Representing that its wellpoints never clog up. 5. Representing that contractors all over the ·world testify that operating costs of its wellpoint system are always 50 percent or any other constant percentage lower than operating costs of competitive wellpoint systems. , It is further ordired, That the respondent shall within 30 days after the service upon it of this order, file with the ·Commission. report in writing setting forth in detail the manner and form xn which it has complied with this order.

PRI'NCESS YARN CO. 371 Syllabus