W. M. Meador & Co., Inc

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IN THE ~ATTER OF W. M. ~EADOR & COMPANY, INC. •. COMPLAINT, FINDINGS, AND ORDER IN REGARD TO TIIE ALLEGED VIOLATION OF SUB-SEC. (C) OF SEC. 2 OF AN ACT OF CONGRESS APPROVED OCT. IS, 1914, AS AMENDED BY AN ACT OF CONGRESS APPROVED JUNE 19, 1936 Docket 4928. Complaint, Mar. 12, 1943-J?ecision, Dec. 5, 19.U Where a corporation engaged as a jobber in buying various food products and other merchandise and reselling the same, purchasing a substantial portion of its require: menta from sellers in other states- Received and accepted, in connection with such purchases in interstate commerce, in its own behalf and for its own account for resale, brokerage fees, or allowances and discounts in lieu thereof, in substantial amounts, from numerous sellers of such merchandise:

lield, That such receipt and acceptance by it of brokerage fees, or allowances and discounts in lieu thereof, under the circumstances above set forth, was in violation of subsection (c) of Section 2 of the Clayton Act, as amended. Mr. Edwards. Ragsdale for the Commission.

Mr. William P. Smith, of Wa.shington, D. C., for respondent. COMPLAINT The Federal Trade Commission, having reason to believe that the party respondent named in the <:aptian hereof and hereinafter more particularly re~ignated and described, since June 19, 1936, has violated and is now vio~ (atmgU.S.C.theTitleprovisions15, Sec. of13)subsectionas amended(c) byof theSectionRobinson-Patman2 of the ClaytonAct, Acta~ Proved June 19, 1936, hereby issues its complaint, stating its charges with respect thereto as follows:

• PARAGRAPH 1. Respondent, W. M. Meador & Co., Inc., is a corpora· ~ton, organized and existing under the laws of the State of Alabama, with Its principal office and place of business located at 104 North Commerce ~~rcet, Mobile, Ala. The respondent is engaged in the purchase, sale and d~stribution of food products, canned goods and miscellaneous merchan· tse.

PAn. 2. Respondent is now and for many years last past has been en~ gaged in business as a jobber, buying in its own name, for its own account, ~~r resale various food products, canned goods and miscellaneous merchan· tse and reselling such products .

. PAn. 3. Respondent, in the course and conduct of its said business as a Jobber, purchases a substantial portion of its requirements of food prod~ ~cb!, canned goods, and miscellaneous merchandise from sellers located tn States other than the States in which the respondent is located. Pursu· an.t to said purchases and instructions such commodities are caused to be j.hlppcd and transported by the respective sellers thereof across State lncs to the respondent or to respondent's customers. 6381380"'-17-34 Findings 39 F. T. C.

PAR. 4. Respondent, since June 19, 1936, in connection with the purchase of its requirements of food products, canned goods, and miscellaneous merchandise, for resale from numerous sellers located in States other than the States where the respondent is located, has been and is now receiving and accepting in its own behalf and for its own account, brokerage fees or allowances and discounts in lieu of brokerage in substantial amounts from numerous sellers of said food products, canned goods, and miscellaneous merchandise.

PAR. 5. The receipt and acceptance by the respondent of brokerage fees or allowances and discounts in lieu of brokerage by respondent, as set forth above, is in violation of subsection (c) of Section 2 of the Clayton Act, as amended.

REPORT, 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 purposes," approved October 15, 1914 (the Clayton Act), as amended by the Robinson-Patrnan Act, approved June 19, 1936 (15 U. S. C., Sec. 13), the Federal Trade Commission on March 12, 1943, i~­ sued and subsequently served its complaint in this proceeding upon therespondent, W. M. Meador & Company, Inc., a corporation, charging it with the violation of subsection (c) of Section 2 of said Clayton Act, as amended. After the filing by respondent of its answer to the complaint, the Commission by order entered herein granted respondent's request for permission to withdraw such original answer and to substitute therefor an amended answer admitting all of the material allegations of fact set forth in the complaint but denying that the acts of respondent set forth in the complaint constitute a violation of the statute in question. The amended answer also waived all intervening procedure, including hearings as to the facts, the filing of briefs, and oral argument before the Commission. Subsequently, the proceeding regularly carne on for final hearing before the Commission upon the complaint and amended answer, and the Commission, having duly considered the matter and being now fully advi:'cd in the premises, makes this its findings as to the facts and its conclusion drawn therefrom.

FINDINGS AS TO Tile FACTS PARAGRAPH l. The respondent, W. l\1. Meador & Co., Inc., is a corporation, organized and existing under the laws of the State of Alabama. For a number of years immediately preceding March 31, 1943, respondent was engaged in business as a jobber, buying in its own name and for its O'''h account various food products and other merchandise, and reselling sue merchandise. Respondent's principal office and place of business were located at 104 North Commerce Street, 1\Iobile, Ala. While certain ~Titten instruments providing for the dissolution of the corporation were filed by the stockholders in the office of the Judge of the Probate Court for Mobile County, Alabama, on March 31, 1943, the cor- W. M. MEADOR & CO., INC. 491 489 Order poration under the statutes of Alabama continues to exist as a body corporate for five years after such date for the purpose of prosecuting and defending suits, settling its business, and otherwise winding up its affairs. PAR. 2. Respondent in the course and conduct of its business purchased a substantial portion of its requirements of food products and other merchandise from sellers located in States of the United States other than the S.tate of Alabama. Pursuant to such purchases and respondent's instructions in connection therewith, such commodities were caused to be shipped and transported by the respective sellers thereof across State lines to respondent or to respondent's customers.

PAR. 3. At various times between June 19, 1936, and March 31, 1943, in connection with the purchase in its own behalf and for its own account, for resale, of food products and other merchandise in interstate commerce, as aforesaid, respondent received and accepted brokerage fees, or allowances and discounts in lieu thereof, in substantial amounts from numerous sellers of such merchandise.

CONCLUSION The receipt and acceptance by the respondent of brokerage fees, or allowances and discounts in lieu thereof, as set forth above, was in violation of subsection (c) of Section 2 of the Clayton Act, as amended. ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission Upon the complaint of the Commission and the amended answer of respondent admitting all of the material allegations of fact in the complaint and waiving all intervening procedure, including hearings as to the facts, the filing of briefs, and oral argument before the Commission; and the Commission having made its findings as to the facts and its conclusion ~hat the respondent has violated the provisions of subsection (c) of Section o~ the Act of Congress entitled "An Act to supplement existing laws agamst unlawful restraints and monopolies, and for other purposes," ap- ~roved October 15, 1914 (the Clayton Act), as amended by the Robinsonatman Act, approved June 19, 1036 (15 U. S. C., Sec. 13). t' It is ordered, That the respondent, W. M. Meador & Co., Inc., a corporathou, and its officers agents, representatives, and employees, directly or f rough any corporate or other device, in connection with the purchase of fi00d products or other merchandise in commerce, as "commerce" is dened in the Clayton Act do forthwith cease and desist from: f Receiving or accepting from any seller, directly or indirectly, anything d.' value as brokerage or any commission, compensation, allowance, or tscount in lieu there~f upon purchases made for respondent's own account. ' . It is further ordered That the respondent shall, within 60 days after serv- Ice upon it of this o~dcr file with the Commission a report in writing, ~eh~ting forth in detail th~ manner and form in which it has complied with Is order.

Complaint 39 F. T. C.