Stanley J. Remus

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IN THE MA 'ITER OF STANLEY J. REMUS, DOING BUSINESS AS STANLEY J. REMUS & COMPANY; P. E. HARRIS & COMPANY; KEL- LEY-CLARKE COMPANY 1 ; AND OCEANIC SALES COM- PANY COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SUBSEC. (c) OF SEC. 2 OF AN ACT OF CONGRESS APPROVED OCT. 15, 1914, AS AMENDED Docket 4833. Complaint, Sept. 14, 1942-Decision., Nov. 20, 19.t,3 Where an Individual engaged, principally as a jobber, In Interstate buying and selling In his own name and for his own account of. canned salmon, tuna, shrimp, and sardines which he purchased from a corporation operating canneries in Alaska and selling its pack and that ot others; and from a Wash- Ington State distributor, ,lso- . (a) Receival and accepted from aforesaid sellers on said purchases of. cnnned fish in his own behalf and on his own account, brokerage fees, and dis:counts in lieu thereof In substantial amounts through monthly rebates from them in amount equal to an agreed parcentage of. all such purchases in his own behalf during the preceding month; and · Where aforesaid canning corporation and said corporate distributor, engaged in · · interstate sale and distribution of. canned fish- ( b) Paid and delivered to said individual brokerage fees, or allowances, or discounts in lieu thereof., in substantial amounts through payment, among other wqys, of. monthly rebate checks in amounts determined us aforesaid: lieTa, That such receipt and acceptance by said individual of. brokerage tees or commissions In lieu of. brokerage, and such payment thereof. by said concerns, violated the pt·ovlsions of section 2 (c) of the Clayton Act, as amended by the Robinson-Patman Act.

Mr. Edwards. Ragsd.ale for the Commission.

Mr. Et!ward M. /{eating, of Chicago, Ill., for Stanley J. Remus. ·Bogle, Bogle & Gates and Eggcrman, Rosling & lVilliams, of Seattle, Wash., for P. E. Harris & Co.

Medley & II aug land, of Seattle, 'Vash., for Kelley-Clarke Co. 'Order ot Commission dismissing compiaint as to Kelley-Clarke Co. lllade as ot November II, 1942, follows :

This matter coming on to be heard by the Commission upon the motion of respondent lt:eUey-Ciarke Company through Its attorneys, Eggermnn, Rosllng & Williams ot 1824 Exchange llulldlug, Seattle, Wash., to diAmlss the complaint against said respondent on the &:rounds that the respondent was a corporation which has bren voluntarily dissolved and the assets distributed to shareholder& on September H!, 1942, and the Commission having duly consldP.red the ntatter and now being fully advised In the premises ; It h ordered, That the complaint herein be, and the same hereby Ia, dismissed without l>reJudlce as to Kelley-Clarke Co.

Complaint 87F. T. 0.

C01r1PLAINT The Federal Trade Commission, having reason to believe that the parties respondent named in the caption hereof and hereinafter more particularly designated and described, since June 19, 1936, have violated and are now violating the provisions o£ subsection (e) of section 2 of the Clayton Act (U.S. C. title 15, sec. 13) as amended by the Robinson-Patman Act, approved June 19, 1936, hereby issues its complaint, stating its charges with respect thereto as follows: PARAGRAPH 1. Respondent, Stanley J. Remus, is an individual, doing business under the firm name and style of Stanley J. Remus & Co. Respondent Re·mus, has his principal office and place of business at 437 ·west Ontario Street, Chicago, Ill., and is now and for many years prior hereto has been engaged in business, principally as a jobber, buying and selling in his own name and for his own account canned salmon, tuna, shrimp, and sardines (hereinafter called canned fish). PAR. 2. Respondent, P. E. Harris & Co., is a corporation, organized under the laws of the State of Washington with its principal office and place of business located at 1222 Dexter Horton Building, Seattle, 'Vash., and is engaged in the business of canning fish and in the distribution and sale of its own pack and the pack of other canners. Said respondent operates several canneries in the Territory of Alaska, one of which is located in each of the following places: Hawk Inlet, Rose Inlet, False Pass, and Ketchikan, Alaska.

Respondent, Kelley-Clarke Co., is a corporation, organized under the laws of the State of 'Vashington with its principal office and place of business located ·in the Exchange Building at 321 'Vest Fourth A venue, Seattle, 'Vash., and is engaged in the distribution and the sale of canned fish. Respondent, Kelley-Clarke Co., operates several branch offices and warehouses, one of which is located at each of the following points: Los Angeles and San Francisco, Calif.; Portland, Oreg.; and Spokane and Tacoma, ash. 'V Respondent, Oceanic Sales Co., is a corporation, organized under the laws of the State of Washington, with its principal office and place of business located in the Smith Tower Building, Seattle, 'Vash., and is engaged in the distribution and sale of canned fish. Each of the three respondents named in paragraph 2 will hereinafter be referred to as "seller respondents." PAR. 3. Each of said seller respondents is engaged in the sale of canned fish and other products to respondent, Remus, and to other customers residing in States other than the respective States in which the seller respondents are located. I?ursuant to the purchase orders and instructions of respondent, Remus, and other customers of seller STANLEY .T. REMUS & CO. ET AL. 589 i.I .'587 Complaint ·respondents, canned fish are sold, shipped, and transported by each of said seller respondents into and across State lines. to the respond- -ent, Remus, and to other customers.

Respondent, Remus, in the course and conduct of his said business as a jobber, purchases a substantial portion of his requirements of ~canned fish from each of the seller respondents who are located in States other than the State in which respondent Remus is located. Pursuant to his purchase· orders and instructions such commodities are caused to be shipped and transported by the respective seller respondents thereof across State lines to him or to his customers. PAR. 4. Respondents, P. E. Harris & Co., a corporation; Kelley- Clarke Co., a corporation; and Oceanic Sales Co., a corporation, since June 19, 1936, in connection with the sale in interstate commerce of canned fish to respondent, Remus, for his own account, have transmitted, paid, and delivered, and do transmit, pay, and deliver directly or indirectly to said Stanley J. Remus, trading as Stanley J. :Remus & Co., brokerage fees or allowances and discounts in lieu thereof in substantial amounts. · Among other methods of paying such brokerage fees, discounts, and allowances in lieu therof, each of the seller respondents customarily transmits and pays to the respondent, Remus, monthly rebate checks in amounts equal to an agreed percentage of the invoice Price of the canned fish sold by the respective seller respondents to the respondent, Remus, in his own name and/or for his own account <luring the preceding month. . PAR. 5. Respondent, Remus, since June 19, 1936, in connection With the purchase of his requirements of canned fish in interstate commerce, in his own behalf and for his own account, from each of said seller respondents, has been and is n~w receiving, and accepting :from said seller respondents, brokerage fees, or allowance and discounts in lieu of brokerage fees, or allowances and discounts in lieu · <>f brokerage in substantial amounts.

Among the methods of so receiving and accepting brokerage fees, discounts, and allowances in lieu thereof, respondent, Remus, customarily receives and accepts monthly rebates from each of the seller .~respondents in an amount equal to an agreed percentage of the ~nvoice prices of all canned fish purchased by said respondent, Remus, ln his own name and/or in his own behalf during the preceding lnonth from each of the respective seller respondents. PAR. 6. The receipt and acceptance by the respondent, Stanley J. :Uemus, doing business as Stanley J. Remus & Co., o£ brokerage fees or allowances and discounts in lieu of brokerage us aforesaid and the transmission and payment of the a~oresaid brokerage fees or allow- Findings S7F.T.C.

ances and discounts in lieu of brokerage to him by P. E. Harris & Co., a corporation; Kelley-Clarke Co., a corporation; and Oceanic Sales Co., a corporation; in the manner and under the circumstances hereinabove set forth, are in violation of the provisions of section 2, subsection (c) of the Clayton Act as amended by the Robinson-Patman Act approved June 19, 1936.

REFORT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of an act of Congress, entitled "An act to supplement existing laws against unlawful restraints and monopolies and for other purp9ses," approved October 15, 1914 (the Clayton Act), as amended by the Robinson-Patman Act, approved June 19, 1936 (U.S. C. title 15, sec. 13), the Federal Trade Commission on September 14, 1942, issued and thereafter. served its com· plaint in this proceeding upon the respondents named in the caption hereof, charging said respondents with violating the provisions of subsection (c) of section 2 of said act, as amended. . After the issuance o.f said complaint, the respondent, Kelley-Clarke Co., a corporation, presented evidence of the dissolution of said corporation and the distribution of its assets on September 15, 1942, and the complaint herein as to this respondent was dismissed by the Commission on November 5, 1942.

The other respondents, set out in the caption, namely, Stanley J. Remus, doing business as Stanley J. Remus & Co., P. E. Harris & Co., and Oceanic Sales Co., in due course filed answers to said com· plaint, in which each respondent respectively denied that its acts and practices were in violation of subsection (c) of section 2 of the Clayton Act, as amended.

Thereafter each of the respondents, namely, Stanley J. Remus, doing business as Stanley J. Remus & Co., P. E. Harris & Co., and Oceanic Sales Co., moved and received permission from the Commis'"' sion to withdraw their original answers and to file in lieu thereof substitute answers admitting all material allegations of fact set forth in said complaint, and waiving all interverung procedure and further hearings as to said facts. . Each of said respondents in said substitute answers set out that since the Commission's complaint was issued the practices complained of had been voluntarily discontinued, but that in view of the times they desired to avoid the expense and inconvenience incidental to contesting the issues.

Thereafter, this proceeding regularly came on for final hearing before the. Commission on the s~id complaint and substitute answers, STANLEY J. REMUS & CO. ET AL. 591 587 Findings and the Commission having duly considered the same and being now fully advised in the premises, makes this its findings as to the facts and its conclusion drawn therefrom.

FINDINGS AS TO THE FACTS PARAGRAPH 1. Respondent, Stanley J. RE:mus, is an individual, doing business under the firm name and style of Stanley J. Remus & Co. Respondent, Remus, has his principal office and place of business at 437 "'\Vest Ontario Street, Chicago, Ill., and is now and for many years prior hereto has been engaged in business, principally as a jobber, buying and selling in his own name and for his own account canned salmon, tuna, shrimp, and sardines (hereinafter called canned fish).

PAn·. 2. Respondent, P. E. Harris & Co., is a corporation, organized under the laws of the State of "'\Vashington with its principal office and place of business located at 1222 Dexter Horton Building, Seattle, Wash., and is engaged in the business of canning fish and in the distribution and sale of its own pack and the pack of other canners. Said respondent operates several canneries in the Territory of Alaska, one of which is located in each of the following places: Hawk Inlet, Rose Inlet, False Pass, and Ketchikan, Alaska.

Respondent; Oceanic Sales Co., is a corporation, organized under the laws of the State of 'Vashington, with its principal office and place of business located in the Smith Tower Building, Seattle, 'Vash., and is e11gaged in the distribution and sale of canned fish. Each of the two respondents named in paragraph 2 will hereinafter be referred to as "seller respondents."

PAR. 3. Each of said seller respondents is engaged in the sale of canned fish and other products to respondent, Remus, and to other customers residing in States other th~tn the respective States in which the seller respondents are located. Pursuant to the purchase orders and instructions of respondent, Remus, and other customers of seller respondents, canned fish are sold, shipped, and transported by each of said seller respondents into and across State lines to the respondent Remus and to other customers.

Respondent, Remus, in the course and conduct of his said business as a jobber, purchases a substantial portion of his requirements of canned fish from each of the seller respondents who are located in States other than the State in which respondent, Rf:'mus, is located. Pursuant to his purchase orders and instructions such commodities nro caused to bo shipped and transported by the respective seller respondents thereof across State lines to him or to his customers. Conclusion 37F.T.C.

PAR. 4. Respondents, P. E. Harris & Co., a corporation, and Oceanic Sales Co., a corporation, since June 19, 1936, in connection with the sale in interstate commerce of canned fish to respondent, Remus, for his own account, have transmitted, paid, and delivered, and do trans- ~it, pay, and deliver, directly or indirectly to said Stanley J. Remus, cyading as Stanley J. Remus & Co., brokerage fees, or allowances and discounts in lieu thereof in substantial amounts. Among other meth6ds of paying such brokerage fees, discounts, and allowances in lieu thereof, each of the seller respondents customarily transmits and pays to the respondent, Remus, monthly rebate checks in amounts equal to an agreed percentage of the invoice price of the canned fish sold by the respective seller respondents to the respondent, Remus, in his own name and/6r for his own account during the preceding month.

PAR. 5. Respondent, Remus, since June 19, 1936, in connection with the purchase of his requirements o£ canned fish in interstate commerce, in his own behalf and for his own account, from each of said seller respondents, has been 'and is now receiving, and accepting from said seller respondents, brokerage fees, or allowances and discounts in lieu of brokerage fees, or allowances and discounts in lieu of brokerage in substantial amounts.

Among the methods of so receiving and accepting bro:b:erage fees, discounts and allowances in lieu thereof, respondent, Remus, custom· arily receives and accepts mpnthly rebates from each ·of the seller respondents .in an amount equal to an agreed percentage of the invoice prices of all canned fish purchased by said respondent, Remus, in his own name and/or in his own behalf during the preceding month from each of the respective seller respondents.

CONCLUSION. Under the :facts and circumstances set :forth in the foregoing findings as to the facts, the Commission concludes that the respondent, Stanley J. Remus, an individual, doing business as Stanley J. Remus & Co., was engaged in business in commerce as a buyer o£ canned salmon, tuna, shrimp and sardines, and other sea food products; that said respondent purchased such commodities in his own name and for his own account for resale; that interstate purchases of said commodities were made from P. E. Harris & Co. and Oceanic Sales Co.; and that on said pur· chases from said sellers brokerage fees or commissions in lieu of brokerage were paid to, and were received and accepted by, respondent, Stanley J. Remus, doing business as Stan\ey J. ·Remus & Co., in the manner and under the circumstances hereinabove set forth, in violation ~ ~ STANLEY J. REMUS & CO. ET AL. 593 587 Order of the provisions of section 2, subsection (c) of the Clayton Act as amended by the Robinson-Patman Act approved June 19,1936. The Commission further concludes that the respondents, P. E. Harris & Co., a corporation, and Oceanic Sales Co., a corporation, are engaged in the interstate distribution and sale in commerce of canned fish, and that said respondents have sold and distrib~ted said commodities to Stanley J. Remus, doing business as Stanley J. Remus & Co., in his own name and for his own account for resale, and have paid and granted to such buyer on his own purchases of said canned fi?h and other commodities brokerage fees or commissions in lieu of brokerage on such purchases. 'Therefore the Commission concludes that the acts and practices engaged in by respondents, P. E. Harris & Co. and Oceanic Sales Co., in the manner and under the circumstances hereinabove set forth, are in violation of tli.e provisions of section 2, subsection (c) of the Clayton Act as amended by the Robinson-Patman Act approved June 19,1936.

ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commis- 1 sian upon the complaint of the Commission and the substitute answers filed by the respondents, Stanley J. Remus, doing business as 'Stanley ' J. Remus & Co., P. E. Harris & Qo., and Ocoanic Sales Co., which answers admit all of the material allegations of the complaint to be true, and waive all other intervenh1g procedure and further hearings as to said facts; and the Commission having 1hade its findings as to the facts and conclusions herein that said respondents, Stanley J. Remus, doing business as Stanley J. Remus & Co., P. E. Harris & Co., and Oceanic Sales Co. have violated 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 act of Congress approved June 19, 1936 (the Robinson- Patman Act) (U. S. C. title 15, sec. 13).

It is ordered, That the respondent, Stanley J. Remus, individually, and trading as Stanley J. Remus & Co., or under any other name, and his agents, employees, and representatives, directly or through any corporate or other device, in connection with the purchase of canned fish or other commodities in commerce, us "commerce" is defined in the aforesaid Clayton Act, do forthwith cease and desist from: Receiving or accepting, directly or indirect_ly, from P. E. Harris & Co., Oceanic Sales Co., or any other seller, anything of Yalue as a commission, brokerage, or either compensation, or any allowance or Order 37 F. T. C.

discount in lieu thereof, upon purchases of canned fish or other com- · modities made for respondent's own account. It is further ordered, That the respondents, P. E. Harris & Co., a corporation, and Oceanic Sales Co., a corporation, and their respective officers, representatives, agents, and employees, directly or th:rough any corporate or other device in connection with the sale and distribution of canned fish and other commodities in commerce as "commerce" is defined in the aforesaid Clayton Act, do forthwith cease and desist from:.

Paying or granting, directly or indirectly, to respondent, Stanley · J. Remus, doing business as Stanley J. Remus & Co., or to any other purchaser, anything of value as a commission, brokerage, or other compensation, or any allowance or discount in lieu thereof, upon purchases of canned fish or other commodities made by, or for the account of, any such purchaser.

It is further ordered, That said respondents, Stanley J. Remus, doing business as Stanley J. Remus & Co., P. E. Harris & Co., a corporation, and Oceanic Sales Co., a corporation, within 6'0 days after service upon them of this order shall file with the Commission a report in writing setting forth in detail the manner and form in which said respond~nts are complying and have complied with the order to cease and desist hereinabove set forth.

WINTERINE MANUFACTURING CO. 595 Complaint