HUTCHINGS BROKERAGE CO. (Norman Webb Hutchings doing business

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IN THE MATTER OF NORMAN WEBB HUTCHINGS, DOING BUSINESS AS HUTCHINGS BROKERAGE COMPANY COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SUB-SEC. (C) OF SEC. 2 OF AN ACT OF CONGRESS APPROVED OCT. 1.5, 1914, AS AMENDED BY AN ACT OF CONGRESS APPROVED JUNE 19, 1936 Docket 5059. Complaint, Oct. 8, 1943-Decision, Dec. 5, 1944 Where an individual engaged principally as a jobber in buying various food products and other merchandise and reselling the same, purchasing a substantial portion of his requirements from sellers in other states- Received and accepted, directly or indirectly, in connection with the purchase in his own behalf and for his own account, for resale, of such merchandise in interstate commerce as aforesaid, from numerous sellers, brokerage fees or commissions, or allowances and discounts in lieu thereof, in substantial amounts: II eld, That such receipt and ·acceptance by him of brokerage fees, or commissions, or allowances and discounts in lieu thereof, on purchases made for his own account, 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 parties respondent named in the caption hereof and hereinafter more particularly designated and described, since June 19, 1936, has violated and is now violating the provisions of subsection (c) 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, Norman Webb Hutchings, is an individual, ?doing business under the name and style of Hutchings Brokerage Co., hav- Ing his principal office, warehouse and place of business located at 120 North Water Street, Mobile, Ala., and having a branch office and warehouse at Dothan, Ala.

The respondent is engaged in the purchase, sale and distribution of food Products, canned goods and miscellaneous merchandise. PAn. 2. The respondent is now, and for many years last past has been, ~ngaged in business principally as a jobber buying in the name of Hutch- Ings Brokerage Co., for his own account for resale, various food products, canned goods and miscellaneous merchandise and reselling such products . . PAn. 3. Respondent in the course and conduct of his said business as a Jobber purchases a substantial portion of his requirements of food prod- Ucts, canned goods and miscellaneous merchandise from sellers located in States other than the State in which respondent is located. Pursuant to Findings 39 F. T. C.

said purchases and respondent's instructions, such commodities are caused to be shipped and 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 the purchase of his requirements of food products, canned goods and miscellaneous merchandise in interstate commerce in his own behalf and for his own account for resale from numerous sellers located in States other than the State where the respondent is located, has been and is now receiving and accepting, directly or indirectly, from numerous sellers of said food products, canned goods and miscellaneous merchandise, commissions or brokerage fees or allowances and discounts in lieu of brokerage in substantial amounts.

PAR. 5. The receipt and acceptance by the respondent of commissions or brokerage fees, or allowances and discounts in lieu of brokerage, by respondent on interstate purchases of various food products, canned goods, and miscellaneous merchandise, for his own account, as set forth above, is in violation of subsection (c) of section 2 of the Clayton Act as amended. REPORT, FINDINGS AS TO Tile 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-Patman Act, approved June 19, 1936 (15 U. S. C., Sec. 13), the Federal Trade Commission on October 8, 1943, issued and subsequently served its complaint in this proceeding upon the respondent, Norman Webb Hutchings, doing business as Hutchings Brokerage 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 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 came on for final hearing before the Commission upon the complaint and amended answer, and the Commission, having duly considered the matter and beindg now fully advised in the premises, makes this its findings as to the facts an its conclusion drawn therefrom.

FINDINGS AS TO THE FACTS PARAGRAPH 1. The respondent, Norman Webb Hutchings, is an individual, doing business under the name and style of Hutchings Brokerage Co., with his principal office, warehouse, and place of business located nt 120 North Water Street, Mobile, Ala., and having a branch office and warehouse at Dothan, Ala.

HUTCHINGS BROKERAGE CO. 497 495 Order Respondent is now and for many years last past has been engaged in business principally as a jobber, buying in the name of Hutchings Brokerage Company, for his own account, various food products and other merchandise, and reselling such merchandise. . PAR. 2. Respondent in the course and conduct of his business as a jobber purchases a substantial portion of his requirements of food products and other merchandise from sellers located in States of the United States other than the State of Alabama. Pursuant to such purchases and respondent's instructions in connection therewith, such commodities are caused to be shipped and transported by the respective sellers thereof across State lines to respondent or to respondent's customers. PAR. 3. Respondent since June 19, 1936, in connection with the purchase in his own behalf 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, directly or indirectly, from numerous sellers of such food products and other merchandise, brokerage fees or commissions, or allowances and discounts in lieu thereof, in substantial amounts.

CONCLUSION The receipt and acceptance by the respondent of brokerage fees or commissions, or allowances and discounts in lieu thereof, on purchases made for ~is own account, as set forth above, is in violation of subsection (c) of Secbon 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 th~ 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," ap- Pprovcd October 15, 1914 (the Clayton Act), as amended by the Robinsonatman Act, approved June 19, 1936 (15 U. S. C., Sec. 13). It is ordered, That the respondent, Norman Webb Hutchings, individually, and trading as Hutchings Brokerage Co., or trading under any other name, and his agents, representatives, and employees, directly or dfthroughfood productsany corporateor otheror othermerchandisedevice, inin commerce,connection aswith"commerce"the purchaseis efined in the Clayton Act,· do forthwith cease and desist from: Receiving or accepting from any seller, directly or indirectly, anything 0! 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 servlce upon him of this order, file with the Commission a report in writing, ~h~ting forth in detail the manner and form in which he has complied v.ith lS order.

Syllabus 39 F. T. C.