Ross, Herbert L

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

IN THE MATTER OF .

HERBERT L. ROSS, DOING BUSINESS AS NATIONAL INHERITANCE SERVICE; AND 0. F. BLAKER COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket -9849. Complaint, Oct. 15, 194~-Decislon, Jan. 26, 1949 Where an Individual, engaged in interstate sale and dlstribuilon of envelopes and form letters to be used by creditors and collection agencies In obtaining information concerning debtors, which bore his trade name, l. e., "National Inheritance Service," and San Francisco address, and contained such statements as "Examiners for Title Companies," "Searchers of Records," "Genealogists," "Estate Counsellors," "Missing Heirs Located," "Actuaries," and "'Ve have been endeavoring to communicate with a person of the above name (name of person and address) • • •. This Is a matter of distinct importance to the individual in question and that we may make certain you are the one, please answer the following questions" (relating to person's name, address, employer, and address, bank references, etc.); and some of which also contained statements designed to follow up similar unanswered communications; aided by a second individual who employed same trade name, with Baltimore address;

Making use of a plan under which said questionnaires were (1) assigned a code number Identifying the customer involved; (2) had inserted the names and addresses of the debtors or others from whom customer svught information; (3) were signed by the customer usually with some fictitious name; ( 4) were placed in stamped envelopes bearing in upper left hand corner aforesaid trade name with either San Francisco or Baltimore address; (5) had enclosed a reply envelope addressed to such trade name and place of business in San Francisco or Baltimore; (6) were mailed or delivered by the customer to said individual who mailed them in San Francisco or delivered them to his associate for mailing in Baltimore, and who received 50 cents from his customers for each debtor's location so obtained; through said letters and envelopes, directly and by implication- ( a) Falsely represented, and placed in the hands of his customers means of falsely representing, to customers, debtors and others from whom information was sought, that the "National Inheritance Service" had correspondents in all the principal clues of the world;

( ll) Falsely represented, etc., as above set forth, that said "National Inheritance Service" acted as examiner for title insurance companies; (c) Falsely represented, etc., that said "Service" engaged In genealogical research, actuarial work, and the searching of records; and (d) Falsely represented, etc., that the person concerning whom Information was sought bad or might have an Interest in an estate or land wblch would be of financial benefit to him;

When in fact said representations were false and misleading, and said Individual aforesaid had no knowledge of any such interests In estates or in lands; and (e) Falsely represented, through use of name "National Inheritance Service," NATIONAL INHERITANCE SE,RVICID, ET AL,I 149 148 Complaint directly and by implication, that his business bore some relation to estates and to the rights and interests of heirs therein; When in fact he had nothing to do with such matters and name employed was merely a disguise for his true business of obtaining information for use in collection of debts; · With effect of misleading and deceiving many persons to whom such letters were sent into the mistaken belief that such representations were true, and that said trade name truthfully indicated the character of the concern making the inquiry, and by reason thereof, into giving Information which they would not otherwise have supplied:

Held, That such acts and practices, under the circumstances set forth, were all to the prejudice and injury of the public, and constituted unfair /lDd deceptive acts and practices In commerce.

Mr. Randolph lV. Branch for the Commission. Mr. James M. Hoffa, of Baltimore, Md., for respondents. Co:urLAINT 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 Herbert L. Ross, an individual, trading under the name National Inheritance Service, and 0. F. Blaker, an individual, hereinafter ·referred to as respondents, have violated the provisions of 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:

PARAGMPH 1. Respondent, Herbert L. Ross, is an individual, trading under the name National Inheritance Service, with an office and priil.cipal place of business at 26 O'Farrell Street, San Francisco, Calif. Respondent, 0. F. Blaker, is an individual, with an office and principal place of business at 4642 York Road, Baltimore, Md. · PAR. 2. Respondent, Herbert L. Ross, is now, and has been for more than 2 years last past, engaged in tf1e business of selling envelopes. and form letters designed and intended to be used by creditors and collec· tion agencies in obtaining information concerning debtors. Respondent Ross causes the said envelopes and letters to be transported from his aforesaid place of business in the State of California to purchasers thereof in various States of the United States and in the District of Columbia. Said respondent maintains, and at all times mentioned herein has maintained, a course of trade in the said articles in commerce between and· among the various States of the United States and in the District of Columbia. . . In his business of selling and distributing said envelopes and letters, respondent Ross has traded under the nalne "National Inheritance Service."

150 FEDERAL TRADE COMMISSION DE,CISIONS Complaint 36F. T: C.

PAR. 3. The said letters sold and distributed by respondent are in the forms exemplified by copies thereof, marked Exhibits A, D. C. D, E, and F attached hereto, and by this reference incorporated herein and made a part hereof.l Exhibits A, D, C, and D, E, Fare respectively letters sent to debtors and to those from whom information concerning debtors is sought. PAR. 4. Each customer of respondent Ross is given a code number which identifies the customer to him.

Said customers insert in the appropriate spaces in the form letters the names and addresses of the debtors or others from whom information is sought, and their code numbers, and cause them to be signed, usually with fictitious names. The letters are then placed in stamped envelopes, addressed to the debtors or such other persons, which Lear in the upper left hand corner either: . National Inheritance Service 20 O'I•'arrell Street San Francisco, Cal., or NatiOJlal: Inheritance Servlre 4644 York Road, Baltimore, 1\ld.

together with a reply envelope addr('SS!\d, as above, to either San Francisco, Calif., or Baltimore, Md. Such reply envelopes sometimes ure, and sometimes are not, stamped by respondents' customers; upon their backs the customers place their code numbers. Said customers thereafter (1) mail the ll~tters themselves, or (2) cause them to be delivered to respondent, Ross, at San Francisco, Calif., who causes them.to be deposited in the United Stater mail, -or (3) causes them to be delivered(i to n~!:ipondent, Dlaker, at Dalti~oi.:et Mel., who causes them to be deposited in the United States mail. Such replies as are returned to respond<>nt, Dlaker, at Baltimoret 1\ld., are received by him and transmitted by him to respondent, Ross, nt San Francisco, Calif. Such replies, together with those received at the San Francisco office of respondent Ross, are identifieu, as to Ross' customers, by the code numbers on the envelopes, or on the letters, opened by him, and the results communicated to the appropriate customers. Ross receives 50 cents for each debtor's location thus obtained.

PAR. 5. By means of the aforesaid letters and envelopes rcspomlent, Uoss, has falsely represented, and placed in the hands of his cu::;tomers means of falsely representing, directly and by implication, to ctisrtomers' (lebtors, anu others from whom information concerning such debtors is sought, that "National Inheritance Service" has corre- 1 Exhibits published In the 1\ncllnga at p. ] I'll!. · NATIONAL INHERITANCE SERVICE·, ET AL. 151 148 Complaint · spondents in all principal cities of the world, acts as counsellor to those in charge of estates, is engaged. in the business of locating heirs to estates or to interests therein, acts as examiner for title insurance companies, engages in geneological research, actuarial work, and searches of recorus, and that the person concerning whom information · is sought has or may have an interest in an estate or htnu which will be o£ financial benefit to him.

The said. representations are false and. misleauing. In truth and in fact, respondent, Ross, in conducting the business called "National Inheritance Service" does not have correspondents in all the principal cities o£ the world.. He does not act as couns<'llor to those in charge of estates, and is not engaged in the business of locating heirs to· estates or interests therein. He does not make examinations for title insurance companies, or engage in genealogical research, actuarial work or searches of records. He has no knmvledge o£ any interests in estates or in lands to which the persons concerning whom information is sought may be entitled.

PAR, 6. Through the use of the name "National Inheritance Service'' respondent has represented, directly and by implication, that his said business bears some relation to estates and to the rights and interests of heirs thereof.

Said representation is false and misleading. In truth and in factt said business has nothing whatever to do with estates or the rights or interests of persons therein, and the said name is merely a disguise for the true nature of the business.

- PAR. 7. The participation of respondent, lllaker, aids in the accomplishment of the plan for obtaining the desired information as regarus persons from whom information is sought who are located in the general. vicinity o£ San Francisco, and who are, in consequence, able to. call in person at respondent, Ross', San Francisco office. PAR. 8. The use, as hereinabove set forth, of the foregoing false and misleading statements, representations, and designations has had the capacity and tendency to, and has, misled and deceived many persons to whom said letters were sent into the erroneous and mistaken belief that said statements and representations were true, and by reason thereof to give information which they would not otherwise supplyt and in many instances, to incur expense for postage in connection therewith.

PAR. 9. The aforesaid acts and practices of respondents, as herein alleged, are all to the prejudice and injury of the public, and constitute' unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act. 152 FEDERAL TRADE COMJ.\USSION DE>CISIONS Findings 36F.T.O.

REPORT, FINDINGS AS TO THE Facts, AND ORDER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission, on October 15, 1942, issued and sub~ sequently served its complaint in this proceeding upon the respondents, Herbert L. Ross, an individual, trading under the name National Inheritance Service, and 0. F. maker, an individual, charging them with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of that act. Answers were filed, by respondent Ross on November 16, 1942, and by respondent Blaker through his attorney on December 28, 1942, in which answers the respondents admitted all the material allegations of fact set forth in the complaint and waived all intervening procedure and further hearing as to the facts. Thereafter, the proceeding regularly came on for final hearing before the Commission on the co~nplaint and the answers thereto, 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 Tile FACTS PARAGMPH 1. Respondent, Herbert L. Ross, is an individual, trading under the name National Inheritance Service, with an office and prin- . cipal place of business at .~6 O'Farrell Street, San Francisco, Calif. Respondent, 0. F. maker, is an individual, with an office and principal place of business at 4642 York Road, Baltimore, Md. PAR. 2. Respondent, Ross, is now and for more than 2 years last past has been engaged in the business of selling envelopes and form letters designed and intended to be used by creditors and collection agencies in obtaining information concerning debtors. Respondent, Ross, causes his envelopes and letters, when sold, to be transported from his place of business in the State of California to purchasers thereof in various States of the United States and in thu District of Columbia. This respondent maintains and has maintained a course of trade in his products in commerce between and among the. various States of the United States and in the District of Columbia. In the business of selling and distributing his envelopes and letters, respondent Ross has traded under the name "National Inheritance Service."

PAn. 3. The letters sold and distributed by respondent Ross are in the forms exemplified by copies attached hereto, as Exhibits A, n, C, D, E, and F, and made a part hereof. These letters are sent to debtors and to those from whom information concerning debtors is sought. NATIONAL INHERITANCE SE,RVICE·, ET AL. 153 148 Findings PAR. 4. Each customer of respondent, Ross, is given a code number which identifies the cu:tomer to him. The customer inserts his code number and the names and addresses of the debtors or others from whom information is sought in the appropriate spaces in the form letters, and causes the letters to be signed, usually with fictitious names. The letters are then placed in stamped envelopes addressed to the debtors or such other persons. In the upper left-hand corner of the envelopes appears the following:

National Inheritance Service 26 O'Farrell Street San Francisco, Cal., or National Inheritance Service 4644 York Road Baltimore, Md.

Enclosed in each letter is a reply envelope addressed to National Inheritn.nce Service at either San Francisco Calif., or Baltimore, Md., which envelope bears the customer's code number upon its back. Post-. age stamps are affixed to these envelopes by the customer in some, but not in all, instances. · The customer thereafter mails the letters himself or causes them to be delivered to respondent, Ross, at San Francisco, Calif., who causes them to be depo~ited in the United States mail or deli\rered to respondent, Blaker, at Baltimore, Md., who causes them to be deposited in the United States mail.

Such replies as are received by respondent, Blaker, at Baltimore, Md., are transmitted by him to respondent, Ross, at San Francisco, Calif. These replies, together with those received at the San Francisco office of respondent, Ross, are opened and the results transmitted to the appropriate customers, who are identified by the code numbers on the envelopes or letters. Respondent, Ross, receives 50 cents for each debtor's location thus obtained.

PAR. 5. By means of these letters and envelopes respondent Ross has falsely represented, and placed in the hands of his customers means of falsely representing, directly and by implication, to customers' debtors and others from whom information concerning such debtors is sought, that "National Inheritance Service" has correspondents in all principal cities of the world; acts as counsellor to those in charge of estates, and is engaged in the business of locating heirs to estates or to interests therein; acts as examiner for title insurance companies; engages in genealogical research, actuarial work, and the searching of records; and that the person concerning whom informafi28713--43--vol.36----13 " Conclusion 36F.T.C.

tion is sought has or may have an interest in an estate or land which will be of financial benefit to him. · These representations are false and misleading. In truth and in fact, respondent Ross in conducting the business called "National Inheritance Service" does not have correspondents in all the principal cities of the world. He does not act as counsellor to those in charge of estates, and is not engaged in the business of locating heirs to estates or interests therein. He does not make examinations for title insurance companies, or engage in genealogical research, actuarial work, or tht> searching of records. He has no knowledge of any interests in e:states or in lands to which the.persons concerning whom information is sought may be entitled.

PAR. 6. Through the use of the name "National Inheritance Service" respondent Ross has represented, directly and by implication, that his business bears some relation to estates and to the rights and inter· ests of heirs therein. This representation is false and misleading. In truth and in fact, respo·ndent, Ross', business has nothing whatever to de with estates or the rights or interests of heirs therein, and the name "National Inheritance Service" is merely a disguise for the true nature of the business, to wit, the obtaining of information for use in the collection of debts.

·PAR. 7. The participation of respondent Blaker aids in the accomplishment of the plan for obtaining the desired information from pt>rsons who are located in the general vicinity of San Francisco, and who are, in consequence, able to call in person at respondent Ross' San Francisco office.

P .AR. 8. The use of these false and misleading statements and repre· sentations, including the use of the name "National Inheritance Servicf'," has had the capacity and tendency to and has misled and deceived many persons to whom such letters were sent into the erroneous and mistaken belief that such statements and representations were true and that the name "National Inheritance Service" truthfully indicated and described the character of the concern making the inquiry and request· ing the information, and by reason thereof, into giving information which they would not otherwise have supplied and, in many instances, incurring expense for postnge in connection therewith. CONCLUSION The acts and practices of respondents as herein found are all to the prejudice and injury of the public, and constitute unfair arid deceptive acts and practices in commerce within the intent and meaning of the F<>deral Trade Commission Act.

NATIONAL INHE'RITANCE SERVICE, ET AL. 155 148 Exhibits ExnmrT A Examiners for Correspondents in Title Companies All Principal Cities Searchers of Records Of the World Genealogists San Francisco, Calif. Offices 416 to 419 Grant Bldg.

NATIONAL INHERITANCE SERVICE ESTATE COUNSELLORS Refer to File No. • • • • • Missing Heirs Located San Francisco, Calif.

We have been endeavoring to communicate with a person of the above name and our Investigations lead us to believe that you ore the party. This is a matter of distinct Importance to the lndlvidual in question and that we may make certain you are the one, please answer the following questions:

Full Name--------------------~-------------- Age ___________________ _ Residence Address ( pt·esent) -----------"------------------------------- Reflidence Address (previous)---------------------------------------- Name of employer------------------------------------------------------ Address--------------------------------------------------------------- AddressNearest ______________________________________________________________Relative---------------------- Relationship--------------------_ Bank References_____________________ What branch------------------- General Description of yourself----------------------------------------- It the above Information checks with our records, you will be communicated with by return mall. Use envelope enclosed tor your reply. Very truly yours, NATIONAL INHERITANCE SERVICE.

By Exhibits 36F.T.C.

EXHIBIT B CORRESPONDENTS IN ALL PRINCIPAL CITIES OF THE WORLD EXAMINERS FOR TITLE COMPANIES SEARCHERS OF RECORDS ACTUARIES GENEALOGISTS NATIONAL INHERITANCE SERVICE Cable Address ESTATE COUNSELLORS "Nif?CO"

Codes Beutleys Missing Heirs Located ABC--5th & 6th Western Union Offices: Grant Building San Francisco, California Refer to File No.

Some tlme ago we wrote you requesting certain Information concerning yourself, but to date we have not received your reply. We have been in communication with others of similar name in other sections of the country and it Is of importance that you answer the quea-.. tions below that we may ascertain definitely whether or not you ar~ the party In question:

Full name__________________ Place and date of birth-------------------- Present residence address----------------------------------------------- Residence addresses (previous-list on reverse side)--------------------- It married, mate's full name-------------------------------------------- Name of your employer's firm or own business--------------------------- Business address----------------------- Occupation ___________________ _ (Jist former on•!s on reverse ~Ide) Nearest relative_______________________ Relationship-------------------- Address--------------------------------------------------------------- With whom do you bank------------------ Address------------------- General description of yourself------------------------------------------ An early reply, ln the enclosed self addressed envelope will aid us materially ln bringing this matter to a successful conclusion. Very truly yours, NATIONAL INHERITANCE SERVICill NATIONAL INHERITANCE SERVICE, ET AL. 157 148 Exhibits EXHIBIT 0 correspondents In all principal cities of the world EXAM IN Ens FOR TITLE COl\IP ANIES SEARCHERS OF RECORDS ACTUARIES GENEALOGISTS NATIONAL INHERITANCE SERVICE Cable address ESTATE COUNSELLORS "NISCO"

Missing Heirs Located Codes Bentleys Offices: 26 O'Farrell Street ABC-5th & 6th San Francisco, California Western Union Refer to File No.

We have been endeavoring to communicate with a person of your name and our Investigation now leads us to believe that you are the Interested party.

This Is a matter of distinct Importance to you It you are the Individual in question and that we may make' certain you are the one, please answer the following questions:

Full name______________ Place and date of birth-------------------- Present residence address--------------------------------~-------------­ Residence addresses (previous-list on reverse side)---------------------- (give dates) If married, mate's full name-------------------------------------------- Name of employer's flt·m or own business---~------------------------------ Bnslness address----------------------- Occupation ___________________ _ (Jist former ones on reverse Rlile) Nearest relative ---------------------- Relationship-------------------- Address--------------------------------------------------------------- With whom do you bank------------------- Address-------------------- General description of yourself --------------------------------------- It the above information checks with the records, you will be communicated with by return mall Use envelope enclosed tor your reply. Very truly yours, NATIONAL INHERITANCE SERVICE P. S. Kindly mention File No. It not using this letter for your reply. Exhibits 36F.T•.a EXHIBIT D CORRESPONDENTS IN ALL PRINCIPAL CITIES OF THEIR WORLD EXAMINERS FOR TITLE COMPANIES SEARCHERS OF RECORDS AC'.rUARIES GENEALOGISTS NATIONAL INHERITANCE SERVICE Cable address ESTATE COUNSELLORS "NISCO"

Missing Heirs Located Codes Bentley& Offices: Grant Building ABC5th&6th San Francisco, California Western Union Refer to File No.

We have been asked to communicate with the above subject and our file Indicates that you may be able to assist us. Can you give us the present address or refer us to a friend or relative who may be able to supply this information? This Is a matter of distinct importance to the person in question and an early reply will be appreciated. Just fill in the questions below and mall In the envelope enclosed.

Very truly yours, NATIONAL INHERITANCE SERVICE By Full name ------------------------------------------------------------- Residence address------------------------------------------------------ Name of employer------------------------------------------------------ Business address------------------------------------------------------- Remarks (Use other side for additional information)------------------ P. S. Kindly mention file No. if not using this letter for your reply. NATIONAL INHERITANCE SE,RVICE·, ET AL. 159 148 Exhibits EXHIBIT E Examiners for Correspondents in Title Companies All Principal Cities Searchers of Records Of the World San Francisco, Calif.

Genealogists Offices 416 to 419 Grant Bldg, NATION -\.L INHERITANCE SERVICEl ESTATE COUNSELLORS Missing Heirs Located San Francisco, Calif.

Subject:

Refer to File No.

We have been asked to communicate with the above subject and our file Indicates that you may be able to 'assist us. Can you give us the present address or refer us to a friend or relative who may be able to supply this information'l This Is a matter of distinct Importance to the person In question and an early reply will be appreciated. Just flu In the questions below and mail In the envelope enclosed.

Very truly yours, NATIONAL INHERITANCE SERVICEl.

By Full name---------~---------------------------------------------------­ Resldence Address---------------------------------------------------- Business Address------------------------------------------------------- R~marks----------------------------------------------------~------l60 FEDERAL TRADE COMMISSION DECISIONS Order 36F.T.C.

ExHiiliT F CORRESPONDENTS IN ALL PRINCIPAL CITIES OF THE WORLD EXAMINERS FOR TITLE COMPANIES SEARCIIERS OF RECORDS GENEALOGISTS ACTUARIES NATIONAL INHERITANCE SERVICE Cable address "NISCO"

ESTATE COUNSELLORS Codes .Bentleys ABG-5th & 6th Missing lleirs Located Western Union Offices: Grant Building San Francisco, California Reter to Re: File No.

Some time ago we wrote you requesting certain information concerning the above party, but to date we have not received your reply. Can you give us the present address or refer us to a friend or relative who may be able to supply this information: Full name----------------------------- Age---------------------- Residence address------------------------------------------------- Name of employer---------------------------------------------------- Business address-------------------------------------------------- Nearest relative or friend---------------------------------------------- Address---------------------------------------------------------------- An early reply, In the enclosed self-addressed envelope wlll aid us materially in bringing this matter to a successful conclusion. Very truly yours, NATIONAL INHERITANCE SERVICE.

ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission and the answers of respondents, in which answers respondents admit all the material allegations of fact set forth in the complaint and state that they waive all intervening procedure and further hearing as to the facts, and the Commission having made its findings as to the facts and conclusion that the respondents have violated the provisions of the Federal Trade Commission Act.

It is ordered, That the respondents, Herbert L. Ross, and 0. F. Blaker, individually, and trading as National Inheritance Service, or trading under any other name, anJ their agents, representatives, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale, and distribution of respondents' form letters and envelopes in commerce, as "commerce" .NATN'KAL 11\HERITANCE SEHVICE, ET AL. HU 148 Order is defined in the Federal Trade Commission Act, do forthwith cease and desist from :

1. Using the words "National Inheritance Service," or any other word or words of similar import, to designate, describe, or refer to respondents' business; or otherwise representing, directly· or by implication, that respondents' business bears any relation to estates, or to the rights or interests of heirs therein. 2. Representing, directly or Ly implication, that respondents have correspondents in all the principal cities of the world. · 3. Representing, directly or oy implication, that respondents act as counsellors to those in charge of estates, or that respondents are engaged in the business of locating heirs to estares or interests therein.

4. Representing, directly or by implication, that respondents act· as examiners for title insurance companies.

5. Representing, directly or by implication, that respondents are engaged in genealogical research1 actuarial work, or the searching of records.

6. Representing, directly or by implication, that persons concerning whom information is sought through respondents' form letters have or may have any interest in estates or any other property. · 7. Selling or distributing form letters or envelopes which represent, directly or by implication, that re$pondents' business is other than that of obtaining information to be used in the collection of debts; or which represent, directly or by implication, that the information sought through such letters is for any purpose other than for use in the collection of debts.

It is further 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.

Syllabus 36F.T.C.