Ii. D. Childers Co

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!N THE MATTER-OF H. D. CHILDERS COMPANY COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SUB-8EC. (C) OF SEC. 2 OF AN ACT OF CONGRESS APPROVED OCT. 15, 1914, AS AMENDED BY AN ACT OF CONGRESS APPROVED JUNE 19, 1936 Docket 1,1)98. Complaint, Apr. £, 1943-Decision, Dec. 5, 19# Where an individual long engaged in the purchase in his own name and for his own ac· count of food products and other merchandise and 'in the resale thereof, purchasing a substantial portion of his requirements from sellers in other states- Received and accepted, in connection with such purchases in his own name and for his own account, for resale, in interstate commerce, as aforesaid, brokerage fees, or allowances and discounts in lieu thereof, in substantial amounts, from numerous sellers of such commodities:

Held, 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 Washington, D. C., for respondent. COMPLAINT The Federal Trade Commission, having reason to believe that the party' respondent named in the caption hereof, and hereinafter more particular:I.Y designated and described, since June 19, 1936, has violated and is now VIolating the provisions of Section 2 of the Clayton Act as amended by the Robinson-Patman Act, approved June 19, 1936 (U.S.C. Title 15, Sec. 13), hereby issues its complaint, stating its charges with respect thereto as follows: . PARAGRAPll 1. Respondent, Harry Duvall Childers, is an individual, doing business as II. D. Childers Co., with his principal office and place of business located at 15 South Commerce Street, Mobile, Ala. The W spondent is engaged in the purchase, sale and distribution of food prod· ucts, canned sea food, and miscellaneous merchandise. PAn. 2. Respondent is now, and for many years prior hereto has been, engaged in business buying in his own name and for his own account for resale various food products, canned sea food and miscellaneous rner· chandise, and reselling such products. . PAn. 3. Respondent in the course and conduct of his said business pud chases a substantial portion of his requirements of food products, canne sea food and miscellaneous merchandi<>e from sellers located in Stat~d other than the State in which the respondent is located. Pursuant to sald purchases and instructions, such commodities are caused to be shipped an transported by the respective sellers thereof across State lines to the respondent or to respondent's customers.

PAR. 4 .. Respondent since June 19, 1936, in connection with theyul: chase of his requirements of food products, canned sea food and IJ11SCC H. D. CHILDERS CO. 493 492 Findings laneous merchandise in interstate commerce in his own behalf and for his own account for resale, has been and is now receiving and accepting from numerous sellers of said food products, canned sea food and miscellaneous merchandise, brokerage fees or allowances and discounts in lieu of brokerage in substantial amounts.

PAn. 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 Onder Pursuant to the provisions of an Act of Congress entitled 11 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-Patman Act, approved June 19, 1936 (15 D. S.C., Sec. 13), the Federal Trade Commission on April2, 1943, issued and subsequently served its complaint in this proceeding upon the respondent, Harry Duvall Childers, an individual, doirig business as H. D. Childers Co., charging him with the violation of subsection (c) of Section 2 of said Clayton Act, as amended. After the filing by respondent of his answer to· the complaint, the Commission by order entered herein granted respondent's request for permission to withdraw such origina.l answer and to substitute their:efor 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 ~n question. The amended answer also waived all intervening procedure, Including hearings as to the facts, the filing of briefs, and oral argument refore the Commission. Subsequently, the proceeding regularly came on or final hearing before the Commission upon the complaint and amended 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.

FINDINGS AS TO THE FACTS PARAGRAPH 1. The respondent, Harry Duvall Childers, is an individ- Ual, doing business as H. D. Childers Co., with his principal office and Place of business located at 15 South Commerce Street, Mobile, Ala. aespondent is and for many years last past has been engaged in the purchase, in his own name and for his own account, of food products and other merchandise, and in the resale of such merchandise. . . PAn. 2. Respondent in the course and conduct of hts busmess purchases a substantial portion of his requirements of food products and other merchandise from sellers located in States of the United States other than t~e State of Alabama. Pursuant to respondent's purchases and instructions, such commodities are caused to be shipped and transported by the respective sellers thereof across State lines to respondent or to respondent's customers.

Order 39 F. T. C.

PAR. 3. Respondent since June 19, 1936, in connection with the purchase in his own name and for his own account, for resale, of food products and other merchandise in interstate commerce, as aforesaid, has been and is now receiving and accepting brokerage fees, or allowances and discounts in lieu thereof, in substantial amounts from numerous sellers of such commodities. · CONCLUSION The receipt and acceptance by the respondent of brokerage fees, or allowances and discounts in lieu thereof, as set forth above, is 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 that the respondent has violated the provisions of subsection (c) of Section 2 of the 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- Patman Act, approved June 19, 1936 (15 U. S. C., Sec. 13). It is ordered, That the respondent, Harry Duvall Childers, individually, and trading as II. D. Childers Co., or trading under any other name, and his agents, representatives, and employees, directly or through any corporate or other device, in connection with the purchase of food products or other merchandise in commerce, as "commerce" is defined in the Clayton Act, do forthwith cease and desist from:

Receiving or accepting from any seller, directly or indirectly, anything of value as brokerage, or any commission, compensation, allowance, or discount in lieu thereof, upon purchases made for respondent's own account. It is further ordered, That the respondent shall, within 60 days after service upon him of this order, file with the Commission a report in writing, setting forth in detail the manner and form in which he has complied with this order.

HUTCHINGS BROKERAGE CO. 495 Complaint