J. Richard Phillips, Jr. & Sons, Inc.

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

In Troe Matrer oF J. RICHARD PHILLIPS, JR. & SONS, INC., ET AL. COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATIONS OF SUBSEC, (c) OF SEC. 2 OF AN ACT OF CONGRESS APPROVED OCT. 15, 1914, AS AMENDED BY AN ACT APPROVED JUNE 19, 1936 Docket 5576. Complaint, July 20, 1948—Decision, Feb. 8, 1950 In a proceeding in which it was alleged that respondent sellers paid commissions or allowances upon or in connection with sales made to a certain buyer for its own account, and in which it appeared that said buyers made use of so-called consignment contracts or agreements under which it made advances—usually from 80 to 90 percent of the purchase price—ordinarily paying the balance after it resold the products, but in some instances paying the total purchase price before such resale; it appearing further, however, that said buyer, in connection with such purchases, took title to the products concerned, assumed all of the risks incident to ownership and sold them at its own prices and terms and took a profit or loss: Such use of said socalled consignment contracts or agreements obviously did not change the real nature of the transaction involved. :

Where six concerns, engaged in certain Eastern States in canning food products including tomatoes, tomato juice, peas, lima beans, asparagus, and corn, and in the interstate sale and distribution thereof under their own brands and labels, and those of their customers, through brokers, and directly to a certain buyer which conducted its business as a distributor of food products in part as a broker, and in part as a direct buyer, in the latter capacity taking title to food products it purchased and assuming all the risks incident to ownership— (a) Granted and allowed, directly or indirectly to said buyer, in connection with purchases made on its own account under so-called consignment contracts, and on transactions in which it did not function as a broker or sales agent commissions, brokerage fees or other allowances in lieu thereof; and Where said buyer, one of the largest distributors in the South, of canned fruits and vegetables, herring, and herring roe, which it sold to customers in Virginia and the Carolinas, and owner of a number of registered trademarks which it utilized as brands for its food products— (bd) Received and accepted from the aforesaid and from numerous other sellers, on purchase made for its own account as above described, commissions, brokers’ fees, or other allowances in lieu thereof: Held, That the granting and allowance by such sellers, and the receiving and acceptance by said buyer of commissions, brokerage fees or allowances of discounts in lieu thereof, under the circumstances above set forth, constituted violations of section 2 (c) of the Clayton Act as amended. | Mr. Edward 8. Ragsdale and Mr. Cecil G. Miles for the Commission, Covington, Burling, Rublee & Shorb, of Washington, D. C., for respondents.

854002—52—-—33 Complaint 46 F.T.C.

Gordon & Gordon, of Richmond, Va., also represented Taylor & Sledd, Inc.

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, have been and are now violating the provisions of subsection (c) of section 2 of the Clayton Act (U.S. C. title 15, sec. 18) as amended by the Robinson-Patman Act, approved June 19, 1936, hereby issues its complaint stating its charges with respect thereto as follows: Paracrapy 1. Respondent J. Richard Phillips, Jr. & Sons, Inc., isa corporation organized and existing under the laws of the State of Maryland, with its principal office and place of business located at Berlin, Md., and with a branch office and plant located at Barkers Landing, Magnolia, Del. The respondent herein is engaged, and for many years since June 19, 1936, has been engaged, in the business of canning food products, offering for sale, selling and distributing such products, principally tomatoes, tomato juice, peas, and lima beans.

Par. 2. Respondent H. P. Cannon & Son, Inc., is a corporation organized and existing under the laws of the State of Delaware, with its principal office and place of business located at Bridgeville, Del. The respondent herein is engaged, and for many years since June 19, 1936, has been engaged, in the business of canning food products, offering for sale, selling and distributing such products, principally peas, asparagus, stringless beans, tomatoes, tomato juice, pumpkins, squash, lima beans, and sweet peppers.

Par. 8. Respondent Charles T. Wrightson & Sons, Inc., is a corporation organized and existing under the laws of the State of Maryland, with its principal office and place of business located at Easton, Md. The respondent herein is engaged, and for many years since June 19, 1986, has been engaged, in the business of canning food products, offering for sale, selling, and distributing such products, principally peas, tomatoes, and corn.

Par. 4. Respondent the Torsch Canning Co. is a corporation organized and existing under the laws of the State of Maryland, with its principal office and place of business located at Milford, Del. The respondent herein is engaged, and for many years since June 19, 1936, has been engaged, in the business of canning food products, offering for sale, selling and distributing such products, principally mixed J. RICHARD PHILLIPS, JR. & SONS, INC., ET AL. 469 467 Complaint vegetables, peas and carrots, lima beans, corn, succotash, peas, stringless beans, and tomatoes.

Par. 5. Respondents5 1 2 2 1 4 976 724 131 33 93.195007 Walters 1 2 2 1 5 1123 723 34 34 82.539619 S.5 1 2 2 1 6 1174 724 178 41 90.291908 Camercn,5 1 2 2 1 7 1368 724 63 41 92.104858 Sr.,5 1 2 2 1 8 1448 725 67 32 96.465126 ands 1 2 2 1 9 1530 725 131 33 91.153900 Walters 1 2 2 1 10 1675 725 48 33 88.931221 M.5 1 2 2 1 11 1741 725 97 33 88.931221 Cam-4 1 2 2 2 0 535 773 1305 45 -1 5 1 2 2 2 1 535 785 91 30 92.190178 eron,5 1 2 2 2 2 643 775 64 40 84.082611 Jr.,5 1 2 2 2 3 726 786 56 20 96.803055 ares 1 2 2 2 4 800 779 157 37 96.906509 partners5 1 2 2 2 5 974 773 141 45 96.281746 trading5 1 2 2 2 6 1132 785 36 21 96.644455 as5 1 2 2 2 7 1188 775 166 33 96.461777 Cameron5 1 2 2 2 8 1372 774 95 32 96.157364 Bros.5 1 2 2 2 9 1489 775 160 42 93.298569 Canning5 1 2 2 2 10 1667 776 70 40 92.693481 Co.,5 1 2 2 2 11 1755 776 85 32 96.583725 with4 1 2 2 3 0 535 824 1306 44 -1 5 1 2 2 3 1 535 824 90 32 96.638763 theirs 1 2 2 3 2 637 824 172 43 96.702591 principals 1 2 2 3 3 823 824 88 34 96.473991 offices 1 2 2 3 4 925 825 67 32 96.613281 ands 1 2 2 3 5 1005 825 95 42 96.951630 places 1 2 2 3 6 1113 825 38 32 96.817001 of5 1 2 2 3 7 1163 824 151 33 96.875259 business5 1 2 2 3 8 1328 825 131 33 96.359612 located5 1 2 2 3 9 1473 829 35 28 96.887833 at5 1 2 2 3 10 1522 825 123 43 96.667114 Rising5 1 2 2 3 11 1660 826 83 41 91.022247 Sun,5 1 2 2 3 12 1756 826 85 42 89.770462 Md.,4 1 2 2 4 0 502 874 1339 44 -1 5 1 2 2 4 1 502 893 4 5 56.531380 -5 1 2 2 4 2 535 874 68 33 95.101501 ands 1 2 2 4 3 615 875 128 43 96.555283 having5 1 2 2 4 4 757 887 19 20 96.721825 a5 1 2 2 4 5 788 875 128 33 96.500816 branch5 1 2 2 4 6 928 875 88 33 96.568680 offices 1 2 2 4 7 1030 875 67 33 96.541435 ands 1 2 2 4 8 1109 875 99 42 96.541435 plants 1 2 2 4 9 1220 875 132 33 96.123940 located5 1 2 2 4 10 1365 879 35 29 96.123940 at5 1 2 2 4 11 1412 875 236 43 95.179840 Nottingham,5 1 2 2 4 12 1662 877 61 32 95.179840 Pa.5 1 2 2 4 13 1766 877 75 32 96.572472 Thea 1 2 2 5 0 535 920 1306 49 -1 5 1 2 2 5 1 535 920 222 46 96.689789 respondents5 1 2 2 5 2 775 926 116 32 96.435997 herein5 1 2 2 5 3 913 937 56 21 96.791969 ares 1 2 2 5 4 988 926 162 41 96.228622 engaged,5 1 2 2 5 5 1169 926 69 32 96.979088 ands 1 2 2 5 6 1257 926 56 31 96.636093 for5 1 2 2 5 7 1332 937 103 30 96.405464 many5 1 2 2 5 8 1453 937 98 30 96.658386 years5 1 2 2 5 9 1571 926 90 33 96.778275 since5 1 2 2 5 10 1680 926 91 34 96.923691 June5 1 2 2 5 11 1790 929 51 40 96.845695 19,4 1 2 2 6 0 535 975 1328 46 -1 5 1 2 2 6 1 535 977 89 39 96.592834 1936,5 1 2 2 6 2 645 975 86 33 96.578247 have5 1 2 2 6 3 749 976 83 32 96.356575 been5 1 2 2 6 4 851 975 162 43 96.606247 engaged,5 1 2 2 6 5 1033 976 36 32 96.606247 in5 1 2 2 6 6 1088 977 58 31 96.328728 thes 1 2 2 6 7 1165 976 151 32 96.727028 business5 1 2 2 6 8 1336 977 38 32 96.224098 of5 1 2 2 6 9 1394 976 149 42 96.224098 canning5 1 2 2 6 10 1562 977 83 33 96.702484 foods 1 2 2 6 11 1666 977 172 43 95.405266 products,5 1 2 2 6 12 1861 1019 2 2 33.367996 |4 1 2 2 7 0 534 996 1306 96 -1 5 1 2 2 7 1 534 996 146 77 94.818451 offerings 1 2 2 7 2 697 1026 57 33 96.959793 for5 1 2 2 7 3 771 1027 78 38 96.964928 sale,5 1 2 2 7 4 866 997 132 76 94.963440 selling,5 1 2 2 7 5 1017 1027 68 32 95.763092 ands 1 2 2 7 6 1102 1026 223 44 95.763092 distributing5 1 2 2 7 7 1342 1028 82 31 96.675804 such5 1 2 2 7 8 1441 1023 172 69 96.244156 products,5 1 2 2 7 9 1630 1028 210 43 96.472427 principally4 1 2 2 8 0 533 1076 731 43 -1 5 1 2 2 8 1 533 1076 163 42 91.733139 shoe-peg5 1 2 2 8 2 709 1088 80 22 96.407906 corns 1 2 2 8 3 803 1077 68 33 96.871384 ands 1 2 2 8 4 885 1077 122 42 95.932610 golden5 1 2 2 8 5 1021 1077 138 33 96.163605 bantam5 1 2 2 8 6 1174 1088 90 22 96.163605 corn.3 1 2 3 0 0 530 1099 1310 278 -1 4 1 2 3 1 0 575 1099 1264 76 -1 5 1 2 3 1 1 575 1125 82 34 76.718216 Par.5 1 2 3 1 2 682 1129 27 30 95.330986 6.5 1 2 3 1 3 733 1099 234 76 96.411850 Respondents5 1 2 3 1 4 990 1127 141 34 93.284515 Charles5 1 2 3 1 5 1154 1130 39 31 92.645309 B.5 1 2 3 1 6 1219 1127 133 35 96.330948 Osborn5 1 2 3 1 7 1375 1129 68 32 96.612267 ands 1 2 3 1 8 1467 1129 34 33 84.199699 8.5 1 2 3 1 9 1524 1130 157 32 96.701874 Mitchell5 1 2 3 1 10 1705 1130 134 34 96.743301 Osborn4 1 2 3 2 0 532 1177 1308 45 -1 5 1 2 3 2 1 532 1187 58 22 96.306702 ares 1 2 3 2 2 614 1180 158 38 96.797234 partners5 1 2 3 2 3 799 1178 140 42 96.268204 trading5 1 2 3 2 4 966 1188 35 23 93.161003 as5 1 2 3 2 5 1029 1178 36 34 88.004578 C.5 1 2 3 2 6 1093 1179 40 32 88.004578 B.5 1 2 3 2 7 1161 1177 133 35 96.102539 Osborn5 1 2 3 2 8 1321 1178 96 42 96.235596 Sons,5 1 2 3 2 9 1444 1178 83 34 96.436485 with5 1 2 3 2 10 1553 1180 90 32 96.760933 theirs 1 2 3 2 11 1669 1181 171 41 96.807999 principal4 1 2 3 3 0 533 1227 1305 47 -1 5 1 2 3 3 1 533 1227 90 33 95.480202 offices 1 2 3 3 2 640 1228 67 32 96.437141 ands 1 2 3 3 3 724 1229 97 42 96.935066 places 1 2 3 3 4 838 1229 38 32 96.132866 of5 1 2 3 3 5 892 1229 151 32 96.372581 business5 1 2 3 3 6 1060 1229 132 32 96.351151 located5 1 2 3 3 7 1211 1232 35 30 96.613808 at5 1 2 3 3 8 1264 1229 187 43 96.470245 Aberdeen,5 1 2 3 3 9 1468 1230 73 33 95.559807 Md.5 1 2 3 3 10 1585 1231 73 32 93.171791 Thes 1 2 3 3 11 1676 1232 162 42 91.725838 respond-4 1 2 3 4 0 533 1278 1305 46 -1 5 1 2 3 4 1 533 1281 74 29 96.409485 ents5 1 2 3 4 2 620 1278 116 33 96.475731 herein5 1 2 3 4 3 751 1290 57 22 96.887505 ares 1 2 3 4 4 821 1279 162 43 96.660156 engaged,5 1 2 3 4 5 998 1280 67 33 96.976517 ands 1 2 3 4 6 1080 1280 56 32 96.873207 for5 1 2 3 4 7 1149 1290 103 32 96.569870 many5 1 2 3 4 8 1267 1290 97 32 96.748024 years5 1 2 3 4 9 1378 1280 90 33 96.602737 since5 1 2 3 4 10 1480 1281 91 34 96.920441 June5 1 2 3 4 11 1586 1283 48 40 96.984726 19,5 1 2 3 4 12 1649 1283 90 41 65.571091 1986,5 1 2 3 4 13 1752 1283 86 33 96.652946 have4 1 2 3 5 0 530 1326 1308 51 -1 5 1 2 3 5 1 530 1326 82 34 96.849480 been5 1 2 3 5 2 630 1330 162 41 96.891289 engaged,5 1 2 3 5 3 811 1328 35 33 96.855316 in5 1 2 3 5 4 863 1330 58 32 96.855316 thes 1 2 3 5 5 938 1330 152 32 95.838715 business5 1 2 3 5 6 1107 1330 38 32 97.010185 of5 1 2 3 5 7 1164 1330 148 42 96.336861 canning5 1 2 3 5 8 1329 1331 83 32 96.986664 foods 1 2 3 5 9 1429 1331 171 42 92.181480 products,5 1 2 3 5 10 1619 1332 145 45 96.703125 offerings 1 2 3 5 11 1782 1334 56 32 97.001556 fore 1 2 4 0 0 532 1380 1306 92 -1 4 1 2 4 1 0 533 1380 1305 45 -1 5 1 2 4 1 1 533 1380 78 39 96.981369 sale,5 1 2 4 1 2 624 1380 133 42 96.651146 selling,5 1 2 4 1 3 770 1380 68 33 96.990646 ands 1 2 4 1 4 850 1380 223 42 96.461533 distributing5 1 2 4 1 5 1085 1381 80 32 96.089989 such5 1 2 4 1 6 1178 1381 173 42 96.089989 products,5 1 2 4 1 7 1363 1381 208 43 93.266884 principally5 1 2 4 1 8 1583 1383 162 42 92.833786 shoe-peg5 1 2 4 1 9 1757 1395 81 21 96.178665 corn4 1 2 4 2 0 532 1429 460 43 -1 5 1 2 4 2 1 532 1429 68 33 96.123482 ands 1 2 4 2 2 613 1430 124 42 96.123482 golden5 1 2 4 2 3 750 1430 138 33 96.333244 bantam5 1 2 4 2 4 902 1442 90 22 96.481003 corn.3 1 2 5 0 0 527 1466 1308 563 -1 4 1 2 5 1 0 573 1466 1262 60 -1 5 1 2 5 1 1 573 1480 83 32 95.718491 Par.5 1 2 5 1 2 677 1480 28 34 93.471153 7.5 1 2 5 1 3 728 1481 236 42 96.073318 Respondents5 1 2 5 1 4 982 1482 34 33 94.988693 J.5 1 2 5 1 5 1037 1466 152 48 96.510048 Richards 1 2 5 1 6 1209 1481 159 43 96.825600 Phillips,5 1 2 5 1 7 1388 1483 52 34 93.082016 Jr.5 1 2 5 1 8 1461 1485 27 30 93.082016 &5 1 2 5 1 9 1508 1482 97 43 91.324760 Sons,5 1 2 5 1 10 1626 1484 83 42 90.621208 Inc.,5 1 2 5 1 11 1729 1484 46 34 91.442940 H.5 1 2 5 1 12 1795 1486 40 32 93.099007 P.4 1 2 5 2 0 532 1529 1303 46 -1 5 1 2 5 2 1 532 1529 143 34 93.290642 Cannon5 1 2 5 2 2 691 1533 29 30 93.091202 &5 1 2 5 2 3 737 1531 97 41 90.610382 Sons,5 1 2 5 2 4 853 1532 82 40 90.610382 Inc.,5 1 2 5 2 5 953 1532 141 32 93.296242 Charles5 1 2 5 2 6 1111 1533 40 32 86.131523 T.5 1 2 5 2 7 1169 1533 202 41 92.093849 Wrightson5 1 2 5 2 8 1388 1536 28 30 92.093849 &5 1 2 5 2 9 1433 1533 80 39 90.889229 Son,5 1 2 5 2 10 1531 1535 82 40 88.017151 Inc.,5 1 2 5 2 11 1631 1535 59 33 92.913826 thes 1 2 5 2 12 1706 1536 129 32 92.913826 Torsch4 1 2 5 3 0 529 1553 1306 77 -1 5 1 2 5 3 1 529 1579 160 44 93.201828 Canning5 1 2 5 3 2 708 1581 69 41 90.999382 Co.,5 1 2 5 3 3 796 1553 139 73 96.432465 Walters 1 2 5 3 4 946 1581 34 34 88.440399 S.5 1 2 5 3 5 1000 1581 176 42 96.650070 Cameron,5 1 2 5 3 6 1195 1558 72 65 80.477707 Sr.,5 1 2 5 3 7 1278 1585 67 32 96.882004 ands 1 2 5 3 8 1362 1584 131 36 91.238014 Walters 1 2 5 3 9 1510 1584 48 33 91.238014 M.5 1 2 5 3 10 1578 1555 176 75 96.911819 Cameron,5 1 2 5 3 11 1771 1587 64 41 57.824215 Jr.,4 1 2 5 4 0 531 1632 1304 43 -1 5 1 2 5 4 1 531 1635 157 37 96.538956 partners5 1 2 5 4 2 703 1632 142 42 96.667725 trading5 1 2 5 4 3 861 1643 35 21 96.995224 as5 1 2 5 4 4 914 1632 165 33 95.992485 Cameron5 1 2 5 4 5 1096 1632 95 33 96.103760 Bros.5 1 2 5 4 6 1210 1632 159 43 93.295837 Canning5 1 2 5 4 7 1385 1633 69 41 92.641953 Co.,5 1 2 5 4 8 1471 1635 68 31 97.000267 ands 1 2 5 4 9 1556 1635 142 33 93.300880 Charles5 1 2 5 4 10 1715 1635 40 33 89.878937 B.5 1 2 5 4 11 1774 1636 61 33 92.584190 Os-4 1 2 5 5 0 529 1680 1305 47 -1 5 1 2 5 5 1 529 1680 86 33 96.541748 born5 1 2 5 5 2 630 1681 69 32 94.332962 ands 1 2 5 5 3 712 1681 34 33 65.522095 8.5 1 2 5 5 4 762 1683 155 30 96.741585 Mitchell5 1 2 5 5 5 932 1682 144 42 96.852379 Osborn,5 1 2 5 5 6 1090 1686 168 38 96.685539 partners,5 1 2 5 5 7 1272 1683 140 42 96.333328 trading5 1 2 5 5 8 1426 1694 37 22 93.233521 as5 1 2 5 5 9 1478 1683 37 33 91.329811 C.5 1 2 5 5 10 1531 1686 40 31 91.329811 B.5 1 2 5 5 11 1588 1685 133 34 96.766342 Osborn5 1 2 5 5 12 1737 1686 97 41 96.864784 Sons,4 1 2 5 6 0 531 1731 1304 46 -1 5 1 2 5 6 1 531 1731 81 33 96.838898 each5 1 2 5 6 2 625 1731 67 33 96.563225 ands 1 2 5 6 3 706 1732 46 32 95.764420 all5 1 2 5 6 4 766 1732 38 32 95.764420 of5 1 2 5 6 5 815 1732 111 32 96.781700 whom5 1 2 5 6 6 940 1743 56 22 97.000443 ares 1 2 5 6 7 1009 1733 209 32 96.773781 hereinafter5 1 2 5 6 8 1231 1733 198 42 96.670609 designated5 1 2 5 6 9 1442 1745 36 22 96.983742 as5 1 2 5 6 10 1492 1735 205 41 96.553986 respondents 1 2 5 6 11 1710 1736 125 41 96.665840 sellers,4 1 2 5 7 0 529 1780 1304 48 -1 5 1 2 5 7 1 529 1780 88 33 96.973640 have5 1 2 5 7 2 637 1782 91 32 96.463600 since5 1 2 5 7 3 748 1782 91 34 95.784828 June5 1 2 5 7 4 861 1784 47 39 95.784828 19,5 1 2 5 7 5 932 1784 89 40 92.997162 1936,5 1 2 5 7 6 1043 1781 203 35 96.612778 distributed5 1 2 5 7 7 1269 1784 68 32 96.471741 ands 1 2 5 7 8 1359 1785 74 32 96.471741 sold5 1 2 5 7 9 1453 1785 91 32 96.951775 theirs 1 2 5 7 10 1566 1785 83 33 96.680962 foods 1 2 5 7 11 1672 1786 161 42 96.836838 products4 1 2 5 8 0 529 1831 1304 47 -1 5 1 2 5 8 1 529 1831 151 42 96.730942 through5 1 2 5 8 2 690 1832 138 32 96.817245 brokers5 1 2 5 8 3 840 1836 35 28 96.944618 to5 1 2 5 8 4 886 1833 131 41 96.718750 buyers,5 1 2 5 8 5 1030 1833 67 33 96.839890 ands 1 2 5 8 6 1110 1833 144 42 96.615738 directly5 1 2 5 8 7 1267 1838 34 28 96.615738 to5 1 2 5 8 8 1315 1846 19 21 96.697586 a5 1 2 5 8 9 1345 1835 114 41 96.792572 buyer,5 1 2 5 8 10 1471 1836 145 42 96.568489 namely,5 1 2 5 8 11 1628 1837 205 41 96.842766 respondent4 1 2 5 9 0 527 1881 1307 46 -1 5 1 2 5 9 1 527 1881 129 42 93.294319 Taylor5 1 2 5 9 2 677 1884 27 30 92.506691 &5 1 2 5 9 3 727 1882 116 42 92.248978 Sledd,5 1 2 5 9 4 864 1884 83 42 90.984955 Inc.,5 1 2 5 9 5 970 1884 57 33 96.798294 for5 1 2 5 9 6 1048 1884 115 33 93.561539 resale.5 1 2 5 9 7 1207 1885 73 33 96.720154 Thes 1 2 5 9 8 1303 1887 204 40 96.821510 respondents 1 2 5 9 9 1530 1887 113 33 96.851425 sellers5 1 2 5 9 10 1667 1889 60 32 96.873291 sells 1 2 5 9 11 1750 1888 84 34 96.703636 food4 1 2 5 10 0 529 1932 1304 48 -1 5 1 2 5 10 1 529 1932 163 42 96.844490 products5 1 2 5 10 2 702 1934 108 32 96.865181 under5 1 2 5 10 3 820 1934 89 32 96.330948 theirs 1 2 5 10 4 919 1946 75 21 96.815750 owns 1 2 5 10 5 1006 1934 103 34 96.048088 labels5 1 2 5 10 6 1120 1947 38 21 96.647560 or5 1 2 5 10 7 1168 1935 127 33 96.815346 brands5 1 2 5 10 8 1306 1938 67 31 96.465149 ands 1 2 5 10 9 1385 1937 70 32 96.538147 also5 1 2 5 10 10 1466 1938 109 31 97.016335 under5 1 2 5 10 11 1584 1938 133 42 96.131302 buyers’5 1 2 5 10 12 1729 1939 104 33 96.953674 labels4 1 2 5 11 0 529 1983 981 46 -1 5 1 2 5 11 1 529 1994 39 20 96.384857 or5 1 2 5 11 2 579 1983 137 42 96.384857 brands,5 1 2 5 11 3 729 1983 178 43 96.700981 including5 1 2 5 11 4 918 1985 57 32 96.692772 thes 1 2 5 11 5 988 1984 126 35 96.562614 brands5 1 2 5 11 6 1128 1986 38 32 96.910530 of5 1 2 5 11 7 1179 1986 205 41 96.904068 respondents 1 2 5 11 8 1396 1986 114 43 96.794815 buyer.3 1 2 6 0 0 523 2034 1309 652 -1 4 1 2 6 1 0 555 2034 1277 47 -1 5 1 2 6 1 1 555 2034 95 31 31.946709 Par.5 1 2 6 1 2 664 2036 28 30 93.897758 8.5 1 2 6 1 3 715 2034 220 42 96.230133 Respondents 1 2 6 1 4 945 2035 128 42 93.240227 Taylor5 1 2 6 1 5 1085 2037 28 31 92.477257 &5 1 2 6 1 6 1125 2035 115 42 92.477257 Sledd,5 1 2 6 1 7 1252 2037 83 41 92.201614 Inc.,5 1 2 6 1 8 1347 2037 28 33 96.832878 is5 1 2 6 1 9 1388 2049 19 21 96.832878 a5 1 2 6 1 10 1420 2038 216 42 96.736588 corporations 1 2 6 1 11 1650 2040 182 41 96.004349 organized4 1 2 6 2 0 526 2083 1303 48 -1 5 1 2 6 2 1 526 2083 109 33 96.068535 under5 1 2 6 2 2 651 2084 57 32 97.005486 thes 1 2 6 2 3 724 2085 82 32 96.432373 laws5 1 2 6 2 4 823 2085 38 32 96.794106 of5 1 2 6 2 5 877 2085 58 33 96.397545 thes 1 2 6 2 6 952 2085 96 34 96.397545 States 1 2 6 2 7 1065 2086 38 33 97.009377 of5 1 2 6 2 8 1119 2086 161 42 96.298035 Virginia5 1 2 6 2 9 1297 2087 36 32 96.503410 in5 1 2 6 2 10 1351 2089 78 32 96.707001 19185 1 2 6 2 11 1446 2088 85 33 96.986801 with5 1 2 6 2 12 1548 2089 44 33 96.945389 its5 1 2 6 2 13 1610 2089 99 42 93.184479 office,5 1 2 6 2 14 1726 2101 103 22 93.136391 ware-4 1 2 6 3 0 525 2134 1304 48 -1 5 1 2 6 3 1 525 2134 104 33 96.925407 houses 1 2 6 3 2 641 2135 67 32 96.925407 ands 1 2 6 3 3 720 2135 171 41 96.418800 principals 1 2 6 3 4 902 2136 96 41 96.467743 places 1 2 6 3 5 1010 2137 37 32 97.002998 of5 1 2 6 3 6 1058 2136 151 34 96.829933 business5 1 2 6 3 7 1221 2138 131 32 96.716515 located5 1 2 6 3 8 1365 2143 35 28 96.834923 at5 1 2 6 3 9 1411 2141 79 30 96.690933 22015 1 2 6 3 10 1504 2140 85 32 96.802109 East5 1 2 6 3 11 1602 2140 92 42 96.999245 Cary5 1 2 6 3 12 1707 2141 122 41 94.082619 Street,4 1 2 6 4 0 526 2184 1305 49 -1 5 1 2 6 4 1 526 2184 203 42 93.301590 Richmond,5 1 2 6 4 2 742 2186 75 41 92.896271 Va.,5 1 2 6 4 3 831 2186 68 32 96.987068 ands 1 2 6 4 4 912 2186 61 32 96.789940 has5 1 2 6 4 5 987 2187 151 42 96.775833 engaged5 1 2 6 4 6 1153 2188 67 33 97.001015 ands 1 2 6 4 7 1234 2187 29 33 97.008537 is5 1 2 6 4 8 1277 2199 76 22 96.927658 now5 1 2 6 4 9 1368 2190 150 40 96.688103 engaged5 1 2 6 4 10 1533 2190 37 32 96.678818 in5 1 2 6 4 11 1583 2190 58 33 97.009407 thes 1 2 6 4 12 1655 2191 176 42 96.527435 purchase,4 1 2 6 5 0 526 2234 1305 47 -1 5 1 2 6 5 1 526 2234 79 41 96.644264 sale,5 1 2 6 5 2 621 2235 67 32 96.644264 ands 1 2 6 5 3 703 2235 220 34 96.317032 distributions 1 2 6 5 4 938 2237 38 32 97.007225 of5 1 2 6 5 5 991 2237 82 32 96.559036 foods 1 2 6 5 6 1089 2237 172 42 96.866867 products,5 1 2 6 5 7 1276 2238 206 43 96.727524 principally5 1 2 6 5 8 1496 2240 131 33 96.473557 canned5 1 2 6 5 9 1642 2241 105 33 96.652504 fruits5 1 2 6 5 10 1762 2241 69 34 96.843048 anda 1 2 6 6 0 526 2284 1304 46 -1 5 1 2 6 6 1 526 2284 199 42 96.719284 vegetables,5 1 2 6 6 2 749 2286 141 43 96.922745 herring5 1 2 6 6 3 913 2286 69 34 96.338448 ands 1 2 6 6 4 1004 2287 141 43 96.600578 herring5 1 2 6 6 5 1167 2299 58 21 96.498878 roe5 1 2 6 6 6 1253 2288 65 42 96.529915 (all5 1 2 6 6 7 1342 2289 38 33 96.562004 of5 1 2 6 6 8 1404 2289 110 34 96.817490 which5 1 2 6 6 9 1539 2301 58 22 96.530701 ares 1 2 6 6 10 1618 2291 212 34 96.529381 hereinafter4 1 2 6 7 0 526 2334 1303 47 -1 5 1 2 6 7 1 526 2334 197 43 96.433975 designated5 1 2 6 7 2 739 2347 37 21 96.503448 as5 1 2 6 7 3 791 2337 83 32 96.780060 foods 1 2 6 7 4 890 2337 194 42 0.000000 products).5 1 2 6 7 5 1128 2339 73 32 95.153694 Thes 1 2 6 7 6 1216 2340 205 40 96.512985 respondents 1 2 6 7 7 1437 2340 128 41 92.698288 Taylor5 1 2 6 7 8 1580 2343 28 31 92.698288 &5 1 2 6 7 9 1624 2341 116 39 92.319939 Sledd,5 1 2 6 7 10 1757 2342 72 33 96.442032 Inc.4 1 2 6 8 0 532 2385 1298 46 -1 5 1 2 6 8 1 532 2385 226 40 96.452690 (hereinafter5 1 2 6 8 2 778 2387 151 34 96.794731 referred5 1 2 6 8 3 949 2391 36 28 96.866974 to5 1 2 6 8 4 1006 2399 36 21 96.202904 as5 1 2 6 8 5 1063 2388 205 42 96.184082 respondents 1 2 6 8 6 1287 2389 137 42 96.184082 buyer),5 1 2 6 8 7 1445 2391 77 32 96.501373 sells5 1 2 6 8 8 1544 2391 68 33 96.732925 ands 1 2 6 8 9 1633 2391 197 34 96.252121 distributes4 1 2 6 9 0 524 2435 1305 49 -1 5 1 2 6 9 1 524 2435 82 32 96.390778 such5 1 2 6 9 2 624 2436 83 33 96.493294 foods 1 2 6 9 3 723 2437 161 42 96.907951 products5 1 2 6 9 4 901 2441 35 29 95.660141 to5 1 2 6 9 5 952 2438 45 32 95.660141 its5 1 2 6 9 6 1014 2442 182 29 96.262352 customers5 1 2 6 9 7 1213 2439 132 34 96.483543 located5 1 2 6 9 8 1362 2440 207 44 96.966331 principally5 1 2 6 9 9 1588 2442 35 32 96.837807 in5 1 2 6 9 10 1640 2442 59 34 96.721184 thes 1 2 6 9 11 1716 2442 113 34 96.956673 States4 1 2 6 10 0 526 2486 1301 47 -1 5 1 2 6 10 1 526 2486 37 32 96.269836 of5 1 2 6 10 2 588 2487 161 42 95.974655 Virginia5 1 2 6 10 3 775 2488 67 32 96.858368 ands 1 2 6 10 4 868 2489 111 32 96.042755 North5 1 2 6 10 5 1006 2489 67 32 96.042755 ands 1 2 6 10 6 1099 2489 109 34 96.569763 South5 1 2 6 10 7 1235 2490 172 42 96.217628 Carolina,5 1 2 6 10 8 1434 2491 164 42 96.314484 although5 1 2 6 10 9 1624 2493 203 32 95.973778 substantial4 1 2 6 11 0 526 2537 1304 48 -1 5 1 2 6 11 1 526 2537 85 32 97.009605 sales5 1 2 6 11 2 630 2548 56 21 96.850105 ares 1 2 6 11 3 703 2539 100 32 96.784531 made5 1 2 6 11 4 819 2542 35 29 95.128868 to5 1 2 6 11 5 872 2539 97 33 96.918732 others 1 2 6 11 6 986 2540 38 32 96.918640 of5 1 2 6 11 7 1042 2540 44 32 96.926094 its5 1 2 6 11 8 1105 2544 181 30 96.707237 customers5 1 2 6 11 9 1305 2542 131 32 97.012344 located5 1 2 6 11 10 1454 2542 122 42 97.005157 chiefly5 1 2 6 11 11 1593 2543 36 32 96.845528 in5 1 2 6 11 12 1650 2543 180 42 96.648079 adjoining4 1 2 6 12 0 526 2586 1305 46 -1 5 1 2 6 12 1 526 2586 121 34 95.833992 States.5 1 2 6 12 2 692 2588 73 32 93.990334 Thes 1 2 6 12 3 778 2589 204 41 96.545135 respondents 1 2 6 12 4 992 2590 106 41 96.688194 buyers 1 2 6 12 5 1110 2591 182 41 96.452072 purchases5 1 2 6 12 6 1305 2591 68 32 96.542809 ands 1 2 6 12 7 1386 2592 77 32 96.665627 sells5 1 2 6 12 8 1475 2593 58 31 96.883224 for5 1 2 6 12 9 1543 2593 46 32 96.845833 its5 1 2 6 12 10 1601 2604 75 21 96.786118 owns 1 2 6 12 11 1689 2598 142 28 96.677269 account4 1 2 6 13 0 523 2638 1308 48 -1 5 1 2 6 13 1 523 2638 127 31 96.552933 several5 1 2 6 13 2 673 2638 133 33 96.660591 millions 1 2 6 13 3 830 2639 138 33 96.611542 dollars’5 1 2 6 13 4 994 2638 106 35 96.298485 worth5 1 2 6 13 5 1124 2641 38 33 96.699409 of5 1 2 6 13 6 1186 2641 82 33 96.628853 foods 1 2 6 13 7 1291 2642 171 42 96.293373 products,5 1 2 6 13 8 1486 2644 110 32 96.839966 which5 1 2 6 13 9 1621 2656 57 21 96.459015 ares 1 2 6 13 10 1701 2644 130 42 96.594055 packed Complaint 46 F.T.C.

principally under its own labels, each year. Such food products are purchased in commerce for resale from approximately 60 sellers, including each of the respondent sellers.

Par. 9. The respondent sellers and each of them, for a substantial period of time since June 19, 1936, shipped, transported, and sold food products in commerce to respondent buyer and to respondent buyer’s customers. The respondent buyer, for a substantial period of time 5 1 2 2 5 2 665 994 90 32 74.240082 sirice5 1 2 2 5 3 772 993 89 33 96.683105 June5 1 2 2 5 4 881 995 48 39 96.683105 19,5 1 2 2 5 5 947 994 90 38 96.336418 1936,5 1 2 2 5 6 1057 991 198 43 95.536491 purchased,5 1 2 2 5 7 1273 992 160 41 96.643494 received,5 1 2 2 5 8 1453 992 67 32 96.460930 ands 1 2 2 5 9 1538 993 157 41 96.093689 accepted5 1 2 2 5 10 1714 993 83 33 96.381859 foods 1 2 2 5 11 1814 994 162 41 96.639442 products4 1 2 2 6 0 665 1043 1311 43 -1 5 1 2 2 6 1 665 1045 36 32 96.158501 in5 1 2 2 6 2 725 1055 182 22 96.158501 commerce5 1 2 2 6 3 930 1043 90 33 96.138962 from5 1 2 2 6 4 1045 1052 103 34 95.738647 many5 1 2 2 6 5 1171 1043 125 41 96.370689 sellers,5 1 2 2 6 6 1321 1043 178 43 96.279327 including5 1 2 2 6 7 1522 1044 80 32 96.462097 each5 1 2 2 6 8 1627 1043 39 34 96.397675 of5 1 2 2 6 9 1689 1045 58 32 96.902931 thes 1 2 2 6 10 1771 1046 205 40 95.809296 respondent4 1 2 2 7 0 663 1094 255 34 -1 5 1 2 2 7 1 663 1095 116 33 96.593613 sellers5 1 2 2 7 2 793 1094 125 32 95.951965 herein.3 1 2 3 0 0 661 1145 1336 742 -1 4 1 2 3 1 0 706 1145 1270 39 -1 5 1 2 3 1 1 706 1146 43 31 96.355461 In5 1 2 3 1 2 766 1145 58 32 96.309906 thes 1 2 3 1 3 839 1155 116 22 96.174728 courses 1 2 3 1 4 972 1145 67 31 96.569786 ands 1 2 3 1 5 1055 1145 144 31 96.714584 conducts 1 2 3 1 6 1216 1145 38 31 96.970863 of5 1 2 3 1 7 1270 1145 89 31 96.879471 theirs 1 2 3 1 8 1375 1145 185 39 96.216049 respective5 1 2 3 1 9 1576 1145 187 33 96.628426 businesses5 1 2 3 1 10 1779 1145 90 33 96.095238 since5 1 2 3 1 11 1885 1147 91 32 96.586891 June4 1 2 3 2 0 667 1195 1308 42 -1 5 1 2 3 2 1 667 1199 48 38 96.854065 19,5 1 2 3 2 2 736 1198 88 38 92.609436 1936,5 1 2 3 2 3 844 1206 35 21 96.956261 as5 1 2 3 2 4 898 1195 183 40 96.263252 aforesaid,5 1 2 3 2 5 1100 1195 204 40 96.083855 respondents 1 2 3 2 6 1323 1196 125 40 96.396736 sellers,5 1 2 3 2 7 1467 1196 67 31 95.550430 ands 1 2 3 2 8 1553 1196 81 32 95.550430 each5 1 2 3 2 9 1652 1196 39 32 96.149323 of5 1 2 3 2 10 1709 1196 102 41 96.038574 them,5 1 2 3 2 11 1831 1197 68 33 96.664368 ands 1 2 3 2 12 1918 1198 57 32 96.524010 thea 1 2 3 3 0 665 1246 1309 41 -1 5 1 2 3 3 1 665 1246 204 41 96.504616 respondents 1 2 3 3 2 886 1246 106 41 96.052246 buyers 1 2 3 3 3 1011 1249 176 38 96.579369 transports 1 2 3 3 4 1205 1257 38 21 96.762428 or5 1 2 3 3 5 1261 1256 97 22 96.900459 causes 1 2 3 3 6 1376 1250 35 28 96.398170 to5 1 2 3 3 7 1430 1246 40 32 96.686546 be5 1 2 3 3 8 1488 1248 217 39 96.627586 transported5 1 2 3 3 9 1723 1247 58 33 96.510681 thes 1 2 3 3 10 1798 1247 76 33 96.510681 said5 1 2 3 3 11 1892 1247 82 34 96.863167 food4 1 2 3 4 0 664 1295 1309 45 -1 5 1 2 3 4 1 664 1298 161 42 96.557808 products5 1 2 3 4 2 845 1296 213 33 96.375389 hereinabove5 1 2 3 4 3 1079 1295 174 34 96.756027 described5 1 2 3 4 4 1270 1297 96 32 96.861725 when5 1 2 3 4 5 1383 1296 74 33 95.936241 sold5 1 2 3 4 6 1474 1297 90 33 96.626518 from5 1 2 3 4 7 1581 1297 89 32 96.531052 theirs 1 2 3 4 8 1687 1298 185 41 93.293686 respective5 1 2 3 4 9 1886 1298 87 34 93.136742 loca-4 1 2 3 5 0 664 1348 1311 41 -1 5 1 2 3 5 1 664 1349 89 37 96.423141 tions5 1 2 3 5 2 774 1353 35 27 95.804382 to5 1 2 3 5 3 830 1349 57 31 95.804382 thes 1 2 3 5 4 908 1348 201 41 96.424576 purchasers5 1 2 3 5 5 1130 1348 135 32 96.430115 thereof5 1 2 3 5 6 1285 1348 131 32 96.238983 located5 1 2 3 5 7 1438 1349 36 31 96.434723 in5 1 2 3 5 8 1495 1349 57 31 95.965729 thes 1 2 3 5 9 1573 1349 128 31 96.189339 several5 1 2 3 5 10 1723 1349 114 33 96.199356 States5 1 2 3 5 11 1858 1350 38 32 96.199356 of5 1 2 3 5 12 1917 1350 58 32 96.916473 thea 1 2 3 6 0 663 1398 1310 43 -1 5 1 2 3 6 1 663 1398 129 35 96.211609 United5 1 2 3 6 2 810 1399 113 33 96.315384 States5 1 2 3 6 3 939 1398 96 33 96.189575 others 1 2 3 6 4 1051 1398 84 32 96.595123 than5 1 2 3 6 5 1150 1398 58 33 96.595123 thes 1 2 3 6 6 1224 1399 112 33 96.437065 States5 1 2 3 6 7 1352 1398 111 33 96.128891 where5 1 2 3 6 8 1479 1400 80 31 96.769043 such5 1 2 3 6 9 1576 1399 188 41 96.504066 shipments5 1 2 3 6 10 1781 1399 192 42 96.195190 originated4 1 2 3 7 0 663 1449 1310 41 -1 5 1 2 3 7 1 663 1450 67 32 96.468788 ands 1 2 3 7 2 745 1450 94 32 96.420082 there5 1 2 3 7 3 854 1450 28 32 96.473648 is5 1 2 3 7 4 898 1450 67 31 95.553543 ands 1 2 3 7 5 981 1449 60 32 96.742386 has5 1 2 3 7 6 1056 1451 90 39 96.906219 been,5 1 2 3 7 7 1163 1453 36 28 96.575272 at5 1 2 3 7 8 1214 1449 45 32 96.476288 all5 1 2 3 7 9 1275 1449 97 33 96.353455 times5 1 2 3 7 10 1387 1449 116 33 96.353455 herein5 1 2 3 7 11 1517 1450 204 40 96.508965 mentioned,5 1 2 3 7 12 1738 1461 19 21 96.434586 a5 1 2 3 7 13 1772 1451 201 31 96.658813 continuous4 1 2 3 8 0 663 1500 1334 41 -1 5 1 2 3 8 1 663 1503 137 30 96.409149 currents 1 2 3 8 2 820 1500 37 33 96.409149 of5 1 2 3 8 3 879 1500 98 32 65.861290 trades 1 2 3 8 4 999 1500 68 32 96.272499 ands 1 2 3 8 5 1089 1510 182 22 96.272499 commerce5 1 2 3 8 6 1292 1500 36 31 96.367813 in5 1 2 3 8 7 1351 1500 73 32 95.631393 said5 1 2 3 8 8 1447 1500 78 32 7.737892 foods 1 2 3 8 9 1545 1500 168 41 7.737892 products5 1 2 3 8 10 1735 1500 148 33 96.308235 between5 1 2 3 8 11 1906 1502 67 31 89.635880 ands 1 2 3 8 12 1995 1518 2 3 66.766319 -4 1 2 3 9 0 664 1549 1309 44 -1 5 1 2 3 9 1 664 1563 122 30 96.502953 among5 1 2 3 9 2 800 1551 57 32 96.236290 thes 1 2 3 9 3 871 1550 137 32 96.409851 various5 1 2 3 9 4 1024 1549 112 33 96.723495 States5 1 2 3 9 5 1151 1550 147 32 96.514351 wherein5 1 2 3 9 6 1313 1551 81 32 96.877396 each5 1 2 3 9 7 1408 1550 37 34 96.875191 of5 1 2 3 9 8 1459 1551 57 31 96.378838 thes 1 2 3 9 9 1531 1551 230 41 95.634758 respondents’5 1 2 3 9 10 1777 1551 113 33 96.012741 sellers5 1 2 3 9 11 1906 1552 67 32 96.012741 anda 1 2 3 10 0 663 1601 1310 42 -1 5 1 2 3 10 1 663 1602 58 32 96.964806 thes 1 2 3 10 2 734 1602 205 40 96.396233 respondents 1 2 3 10 3 952 1601 116 41 96.452812 buyer,5 1 2 3 10 4 1083 1602 66 32 96.932297 ands 1 2 3 10 5 1163 1602 81 31 96.517937 each5 1 2 3 10 6 1260 1601 66 31 96.517937 ands 1 2 3 10 7 1341 1601 45 32 96.391174 all5 1 2 3 10 8 1402 1602 37 31 96.903679 of5 1 2 3 10 9 1452 1602 57 31 96.905174 thes 1 2 3 10 10 1523 1602 184 40 96.882263 respective5 1 2 3 10 11 1720 1602 201 41 96.698730 purchasers5 1 2 3 10 12 1934 1603 39 32 95.983742 of4 1 2 3 11 0 662 1650 1311 44 -1 5 1 2 3 11 1 662 1653 81 32 96.906715 such5 1 2 3 11 2 757 1653 82 31 95.990982 foods 1 2 3 11 3 851 1652 161 41 96.626137 products5 1 2 3 11 4 1027 1662 55 21 96.764061 ares 1 2 3 11 5 1094 1652 140 31 96.066978 located.5 1 2 3 11 6 1279 1650 219 42 94.848335 Respondents 1 2 3 11 7 1509 1652 124 40 96.357162 sellers,5 1 2 3 11 8 1648 1653 66 31 96.572708 ands 1 2 3 11 9 1727 1653 81 31 96.947708 each5 1 2 3 11 10 1820 1652 39 33 96.821426 of5 1 2 3 11 11 1870 1653 103 41 96.360245 them,4 1 2 3 12 0 663 1701 1308 42 -1 5 1 2 3 12 1 663 1704 67 30 95.144890 ands 1 2 3 12 2 754 1704 58 30 95.144890 thes 1 2 3 12 3 835 1702 205 40 96.115822 respondents 1 2 3 12 4 1063 1701 105 42 96.580757 buyers 1 2 3 12 5 1191 1702 221 40 96.199379 maintained,5 1 2 3 12 6 1437 1702 65 31 96.162804 ands 1 2 3 12 7 1528 1706 35 28 96.162804 at5 1 2 3 12 8 1587 1703 45 31 96.296127 all5 1 2 3 12 9 1657 1703 97 31 96.298927 times5 1 2 3 12 10 1779 1701 192 34 96.235199 mentioned4 1 2 3 13 0 662 1752 1311 40 -1 5 1 2 3 13 1 662 1753 116 32 95.666222 herein5 1 2 3 13 2 797 1753 85 31 95.755638 have5 1 2 3 13 3 900 1752 220 40 95.755638 maintained,5 1 2 3 13 4 1140 1764 17 20 96.302902 a5 1 2 3 13 5 1177 1752 200 32 96.124634 continuous5 1 2 3 13 6 1396 1762 115 22 96.124634 courses 1 2 3 13 7 1531 1752 37 32 95.284782 of5 1 2 3 13 8 1587 1752 97 33 70.240082 trades 1 2 3 13 9 1704 1753 67 32 95.895569 ands 1 2 3 13 10 1789 1764 184 21 95.895569 commerce4 1 2 3 14 0 663 1803 1310 41 -1 5 1 2 3 14 1 663 1804 36 31 96.859245 in5 1 2 3 14 2 718 1803 75 33 96.923134 said5 1 2 3 14 3 813 1803 82 33 96.725677 foods 1 2 3 14 4 914 1803 161 41 96.619385 products5 1 2 3 14 5 1096 1813 122 31 96.539474 among5 1 2 3 14 6 1239 1803 66 31 95.737549 ands 1 2 3 14 7 1324 1803 148 32 96.942108 between5 1 2 3 14 8 1492 1803 56 32 96.820007 thes 1 2 3 14 9 1567 1803 137 32 96.783455 various5 1 2 3 14 10 1725 1803 113 33 96.413315 States5 1 2 3 14 11 1858 1804 37 32 96.825920 of5 1 2 3 14 12 1915 1803 58 33 96.512871 thea 1 2 3 15 0 661 1854 268 33 -1 5 1 2 3 15 1 661 1854 131 33 96.301834 United5 1 2 3 15 2 808 1854 121 33 78.163101 States.3 1 2 4 0 0 662 1902 1311 800 -1 4 1 2 4 1 0 705 1902 1268 43 -1 5 1 2 4 1 1 705 1905 81 31 82.989029 Par.5 1 2 4 1 2 800 1906 47 30 82.989029 10.5 1 2 4 1 3 871 1904 73 32 96.698631 Thes 1 2 4 1 4 956 1903 204 41 96.599083 respondents 1 2 4 1 5 1171 1904 115 40 96.281883 buyer,5 1 2 4 1 6 1298 1903 57 32 96.162643 for5 1 2 4 1 7 1366 1914 19 22 96.162643 a5 1 2 4 1 8 1396 1902 203 34 96.507240 substantial5 1 2 4 1 9 1611 1904 118 41 96.507240 periods 1 2 4 1 10 1741 1905 38 31 96.993660 of5 1 2 4 1 11 1790 1905 81 31 96.628616 times 1 2 4 1 12 1882 1905 91 32 96.511414 since4 1 2 4 2 0 662 1953 1308 43 -1 5 1 2 4 2 1 662 1956 91 32 96.159508 June5 1 2 4 2 2 771 1957 48 38 96.721390 19,5 1 2 4 2 3 837 1956 89 39 95.914383 1936,5 1 2 4 2 4 945 1954 67 32 96.152634 ands 1 2 4 2 5 1029 1953 89 33 96.541542 since5 1 2 4 2 6 1135 1954 57 32 96.913193 thes 1 2 4 2 7 1209 1957 190 29 95.629211 enactment5 1 2 4 2 8 1414 1954 38 32 96.866539 of5 1 2 4 2 9 1468 1954 57 32 93.292473 thes 1 2 4 2 10 1541 1954 336 33 91.181984 Robinson-Patman5 1 2 4 2 11 1894 1956 76 40 61.687618 Act,4 1 2 4 3 0 663 2004 1309 42 -1 5 1 2 4 3 1 663 2005 56 32 96.877625 for5 1 2 4 3 2 737 2005 57 32 96.824188 thes 1 2 4 3 3 810 2016 146 30 96.446190 purposes 1 2 4 3 4 975 2004 38 32 96.609467 of5 1 2 4 3 5 1028 2004 158 42 96.147873 masking5 1 2 4 3 6 1203 2004 44 32 96.520134 its5 1 2 4 3 7 1264 2004 193 41 96.693367 operations5 1 2 4 3 8 1475 2004 36 31 96.829842 in5 1 2 4 3 9 1528 2005 101 32 96.798737 orders 1 2 4 3 10 1645 2009 35 28 96.196190 to5 1 2 4 3 11 1698 2004 128 42 96.196190 imparts 1 2 4 3 12 1843 2016 19 21 95.605995 a5 1 2 4 3 13 1880 2006 92 32 95.748459 color4 1 2 4 4 0 662 2047 1309 50 -1 5 1 2 4 4 1 662 2055 39 33 96.967155 of5 1 2 4 4 2 720 2055 141 42 96.666016 legality5 1 2 4 4 3 880 2058 35 29 97.002884 to5 1 2 4 4 4 929 2047 63 39 96.927040 thes 1 2 4 4 5 1009 2054 186 42 96.435486 brokerages 1 2 4 4 6 1213 2058 178 37 96.662384 payments5 1 2 4 4 7 1410 2054 28 32 96.791130 it5 1 2 4 4 8 1457 2055 143 31 96.820213 receives5 1 2 4 4 9 1620 2055 91 31 96.964600 from5 1 2 4 4 10 1731 2055 114 32 96.420998 sellers5 1 2 4 4 11 1864 2066 43 21 95.172325 on5 1 2 4 4 12 1926 2055 45 32 95.172325 its4 1 2 4 5 0 663 2100 1308 47 -1 5 1 2 4 5 1 663 2106 179 40 96.835022 purchases5 1 2 4 5 2 868 2105 38 32 96.433029 of5 1 2 4 5 3 931 2105 83 32 95.691010 foods 1 2 4 5 4 1039 2105 172 41 95.691010 products,5 1 2 4 5 5 1237 2104 192 42 96.370888 originated5 1 2 4 5 6 1456 2100 78 37 96.723862 ands 1 2 4 5 7 1548 2105 237 42 96.331665 promulgated5 1 2 4 5 8 1811 2106 160 32 96.353371 so-called4 1 2 4 6 0 662 2154 1310 43 -1 5 1 2 4 6 1 662 2156 254 41 95.956223 “consignment5 1 2 4 6 2 935 2159 153 29 90.634445 contracts 1 2 4 6 3 1107 2166 38 21 96.209457 or5 1 2 4 6 4 1166 2154 222 43 95.410522 agreement.”5 1 2 4 6 5 1430 2155 119 33 95.480385 Under5 1 2 4 6 6 1570 2156 56 32 96.609589 thes 1 2 4 6 7 1646 2155 191 42 96.609589 provisions5 1 2 4 6 8 1857 2156 38 32 96.399406 of5 1 2 4 6 9 1914 2157 58 31 96.399406 thea 1 2 4 7 0 662 2206 1310 42 -1 5 1 2 4 7 1 662 2206 254 42 96.152412 “consignment5 1 2 4 7 2 937 2210 152 28 96.033463 contracts 1 2 4 7 3 1110 2217 37 22 96.119835 or5 1 2 4 7 4 1169 2206 213 42 96.317772 agreement”5 1 2 4 7 5 1402 2207 57 31 96.432899 thes 1 2 4 7 6 1481 2206 81 33 96.840515 foods 1 2 4 7 7 1584 2207 161 41 96.515396 products5 1 2 4 7 8 1767 2207 205 41 96.122108 respondent4 1 2 4 8 0 663 2256 1306 43 -1 5 1 2 4 8 1 663 2257 106 41 95.861961 buyers 1 2 4 8 2 790 2256 181 42 96.216431 purchases5 1 2 4 8 3 994 2256 35 32 96.612495 in5 1 2 4 8 4 1052 2267 181 22 96.611694 commerce5 1 2 4 8 5 1255 2268 58 21 96.756683 ares 1 2 4 8 6 1335 2257 131 41 96.688515 alleged5 1 2 4 8 7 1489 2261 34 28 96.557838 to5 1 2 4 8 8 1546 2258 40 32 96.557838 be5 1 2 4 8 9 1608 2257 192 42 96.656158 consigned,5 1 2 4 8 10 1823 2259 66 31 91.952652 ands 1 2 4 8 11 1913 2259 56 31 91.952652 ad-4 1 2 4 9 0 662 2307 1310 42 -1 5 1 2 4 9 1 662 2319 131 30 96.584808 vances,5 1 2 4 9 2 808 2307 134 42 96.172318 usually5 1 2 4 9 3 959 2307 91 32 96.515671 from5 1 2 4 9 4 1066 2309 39 30 96.917259 805 1 2 4 9 5 1120 2311 35 28 94.996048 to5 1 2 4 9 6 1172 2309 38 30 94.996048 905 1 2 4 9 7 1227 2311 135 37 95.840630 percent5 1 2 4 9 8 1377 2307 38 33 96.269173 of5 1 2 4 9 9 1431 2307 56 33 96.833504 thes 1 2 4 9 10 1504 2308 163 40 96.469673 purchases 1 2 4 9 11 1683 2308 102 41 96.634911 price,5 1 2 4 9 12 1802 2319 57 21 96.473122 ares 1 2 4 9 13 1873 2309 99 32 96.473122 made4 1 2 4 10 0 662 2358 1309 42 -1 5 1 2 4 10 1 662 2358 45 41 96.597359 by5 1 2 4 10 2 718 2358 205 40 95.716705 respondents 1 2 4 10 3 933 2358 104 41 95.847221 buyers 1 2 4 10 4 1049 2362 35 27 97.008812 to5 1 2 4 10 5 1096 2358 58 32 96.940536 thes 1 2 4 10 6 1163 2358 114 31 96.940536 sellers5 1 2 4 10 7 1289 2358 144 41 96.070343 thereof,5 1 2 4 10 8 1444 2358 176 42 96.233818 including5 1 2 4 10 9 1632 2358 204 41 96.664261 respondents 1 2 4 10 10 1846 2358 125 40 96.478729 sellers,4 1 2 4 11 0 663 2408 1307 42 -1 5 1 2 4 11 1 663 2408 121 32 96.474442 within5 1 2 4 11 2 802 2410 37 30 96.469246 105 1 2 4 11 3 856 2409 85 40 96.469246 days5 1 2 4 11 4 958 2408 90 32 95.607132 after5 1 2 4 11 5 1064 2408 80 32 96.641037 such5 1 2 4 11 6 1162 2408 82 32 96.272934 foods 1 2 4 11 7 1259 2408 162 41 85.318771 products5 1 2 4 11 8 1438 2419 57 21 96.777802 ares 1 2 4 11 9 1511 2409 150 31 95.894707 received5 1 2 4 11 10 1677 2408 44 42 95.894707 by5 1 2 4 11 11 1736 2409 58 31 93.295845 thes 1 2 4 11 12 1810 2409 160 40 91.541595 respond-4 1 2 4 12 0 662 2458 1310 45 -1 5 1 2 4 12 1 662 2462 57 28 96.610672 ents 1 2 4 12 2 737 2459 104 41 96.240921 buyers 1 2 4 12 3 859 2458 90 32 96.401405 from5 1 2 4 12 4 967 2459 57 31 96.401405 thes 1 2 4 12 5 1042 2458 183 41 96.857224 respective5 1 2 4 12 6 1241 2458 123 33 94.919975 sellers.5 1 2 4 12 7 1409 2458 73 33 94.919975 Thes 1 2 4 12 8 1497 2459 139 32 96.632187 balances 1 2 4 12 9 1654 2459 64 32 96.606331 dues 1 2 4 12 10 1735 2459 28 44 96.924706 is5 1 2 4 12 11 1781 2459 83 41 95.530663 paid5 1 2 4 12 12 1882 2459 90 32 96.787102 after4 1 2 4 13 0 662 2509 1305 42 -1 5 1 2 4 13 1 662 2509 58 33 96.403801 thes 1 2 4 13 2 742 2509 82 33 96.680748 foods 1 2 4 13 3 845 2509 161 41 96.277451 products5 1 2 4 13 4 1028 2520 56 21 96.224678 ares 1 2 4 13 5 1107 2509 110 33 96.224678 resold5 1 2 4 13 6 1237 2510 45 41 96.336060 by5 1 2 4 13 7 1305 2509 204 42 96.425667 respondents 1 2 4 13 8 1529 2509 105 42 96.662552 buyers 1 2 4 13 9 1656 2515 35 27 96.828506 to5 1 2 4 13 10 1713 2510 44 32 96.240601 its5 1 2 4 13 11 1779 2513 188 29 96.654282 customers.4 1 2 4 14 0 663 2559 1307 43 -1 5 1 2 4 14 1 663 2559 56 32 96.564125 On5 1 2 4 14 2 739 2571 88 20 96.673401 some5 1 2 4 14 3 847 2560 169 31 96.332054 occasions5 1 2 4 14 4 1035 2560 58 31 95.896027 thes 1 2 4 14 5 1111 2560 85 32 96.764351 totals 1 2 4 14 6 1217 2564 138 28 96.750061 amounts 1 2 4 14 7 1375 2560 64 32 96.655312 dues 1 2 4 14 8 1457 2560 57 32 96.655312 for5 1 2 4 14 9 1532 2560 58 33 96.184631 thes 1 2 4 14 10 1609 2560 82 32 96.163986 foods 1 2 4 14 11 1710 2561 162 40 93.290642 products5 1 2 4 14 12 1891 2572 79 30 92.841080 pur-4 1 2 4 15 0 662 2602 1309 50 -1 5 1 2 4 15 1 662 2610 121 31 96.657593 chased5 1 2 4 15 2 805 2610 28 31 96.934128 is5 1 2 4 15 3 853 2609 81 41 96.317711 paid5 1 2 4 15 4 955 2613 36 28 96.744385 to5 1 2 4 15 5 1012 2610 57 33 96.493095 thes 1 2 4 15 6 1089 2610 183 40 96.999115 respective5 1 2 4 15 7 1291 2602 114 41 55.173325 sellers5 1 2 4 15 8 1426 2610 115 33 96.889130 before5 1 2 4 15 9 1561 2611 58 31 96.379425 thes 1 2 4 15 10 1639 2611 82 32 96.776810 foods 1 2 4 15 11 1742 2611 171 41 96.843826 products,5 1 2 4 15 12 1933 2621 38 23 97.008240 or4 1 2 4 16 0 663 2658 1150 44 -1 5 1 2 4 16 1 663 2660 47 32 96.730408 all5 1 2 4 16 2 724 2660 37 32 96.635208 of5 1 2 4 16 3 774 2660 80 32 96.475121 such5 1 2 4 16 4 868 2659 82 33 96.685829 foods 1 2 4 16 5 965 2660 170 41 96.075653 products,5 1 2 4 16 6 1149 2661 85 31 96.438461 have5 1 2 4 16 7 1246 2662 81 31 96.396675 been5 1 2 4 16 8 1341 2662 73 31 96.789032 sold5 1 2 4 16 9 1426 2661 44 41 96.380089 by5 1 2 4 16 10 1484 2658 202 44 96.104797 respondents 1 2 4 16 11 1699 2660 114 42 96.585747 buyer. J. RICHARD PHILLIPS, JR. & SONS, INC., ET AL. 471 467 Complaint Par. 11. The respondent buyer purchases and sells all, or substantially all, of its food products bearing a printed label upon which one of its numerous trade-marks, consisting of a distinctive word, emblem, or symbol, or a combination of any of these, is shown. Such labels are utilized as brands and are attached to such food products at respondent buyer’s direction by the respective sellers for the purpose of consumers identifying such commodities as the food products of _ the owner of the brands so that repeat sales may be centered upon such brands. .

A brand, trade-mark, or trade name may be defined as a symbol of business good will. Good will, as used herein, may be defined as an attitude in consumers which causes them to continue to patronize a certain place or person, or to purchase a definite food product. Upon the brand used depends to whom the good will created by the food product accrues. Thus, when respondent buyer sells goods which - bear its own brand, the good will accrues to it, whereas when it sells goods bearing the brand of another the good will accrues not to the respondent buyer but to the owner of the particular brand. That such is the purpose and effect of the use of brands is well known in the industry and generally.

The respondent buyer’s food products are sold and distributed under two distinct brand classifications, namely, and principally: (1) private or distributor’s brands, and (2) seller’s brands. A private brand may be defined as a brand owned and controlled by other than the original seller and, as referred to herein, designates brands utilized by respondent buyer as distinguished from the original sellers and which brands identify the food products with the respondent buyer and permits the respondent buyer to promote the sale of those food products independently of manufacturers or sellers; and respondent buyer, as distributor, rather than the manufacturers as original sellers, assumes the responsibility all the way through the channels of distribution to the consumer, and whatever good will is established accrues to the respondent buyer and not to the original sellers. Respondent buyer determines the sales and price policies with reference to such food products.

A seller’s brand may be defined as a brand owned and controlled by the original seller, and, as referred to herein, designates the brands owned and utilized by the respondent sellers in the promotion and sale of their products, which brands identify the particular products for which such original sellers assume the responsibility all the way through the channels of distribution to the consumers, and whatever good will is established thereby accrues to the respective sellers. Complaint 46 F. TC.

Respondent buyer is the largest or one of the largest distributors of food products in the South. The food products it distributes and sells are principally canned fruits and vegetables, herring and herring roe, purchasing, since June 19, 1936, such commodities from competing canners and packers, and other sellers, including each of the respondent sellers. Such products as are purchased by respondent buyer are purchased principally but not entirely under the several private brands of respondent buyer. Representative of such registered trade-marks. or private brands are: Pocahontas, Tidewater, Enfield Club, Wigwam, Powhatan, Wilton, Uncle Ned, Durham Maid. Par. 12. Respondent buyer, since June 19, 1936, has been and is now engaged in the business of distributing food products by two separate and distinct methods, namely: (1) as brokers, which is not challenged by the complaint herein, and (2) as buyers, which is challenged by the complaint herein.

First: Respondent buyer’s business as “brokers” of food products may be described as follows: | Respondent, in such capacity, acts as sales agent which negotiates the sale of food products for and on account of seller-principals, and respondent buyer’s only compensation is a commission or brokerage fee paid by such seller-principals.

The respondent buyer solicits and obtains orders for such food products at the respective seller-principals’ prices and on such sellerprincipals’ terms of sale. The respondent buyer, as a food broker, transmits purchase orders to its several seller-principals who thereafter invoice and ship such food products directly to the customer, and collect the purchase price from such customers. The respondent buyer, as brokers of food products, has no financial interest in the food product it sells. Its-only financial interest is the commission or brokerage fee it receives and accepts from the sellerprincipal for making the sale. Such commissions or brokerage fees are customarily based on a percentage of the invoice sales price of the food products sold. , The respondent buyer in this capacity is a broker and not a trader for profit. The respondent does not take title to, or have any financial interest in, the food products sold and neither makes a profit nor suffers any loss on the transaction. This phase of respondent buyer’s business is not challenged by the complaint. Srconp: Respondent buyer’s business as buyer of food products, which is challenged by the complaint, may be described as follows: The respondent buyer transmits its own purchase orders for food products directly to the various sellers from whom it buys. Such J. RICHARD PHILLIPS, JR. & SONS, INC., ET AL. 473 467 Complaint sellers invoice and ship such food products directly to respondent, and receives and accepts, directly or indirectly, from the respective sellers from whom it buys such food products for its own account, commissions or brokerage fees.

The respondent buyer, in connection with such purchases, is a direct buyer and as such is a trader for profit, purchasing and reselling such food preducts principally under its own private brands and for its own account and at its own prices and on its own terms, taking title to such food products and assuming all the risk incident to ownership.

The respondent buyer, before purchasing, shops the market, purchasing where it is able to secure the most favorable prices and terms, including the payment of commissions or brokerage fees. If such food products, shipped to the respondent by such sellers, are lost or damaged in transit, the respondent files claim with the carrier and collects damages from the carrier in its own name and for its own account.

The respondent buyer enters into formal contracts with its sellers or with some of its sellers whereby respondent buyer contracts to buy, and the sellers contract to sell, definite quantities of certain food products at a stated price. Many of such contracts require the seller to deliver to the respondent such food products over an extended period of time at a stated price.

The respondent, upon receipt of such food products from its various sellers, warehouses such products in its own warehouses and insures the food products at its own expense and in its own name and for its own account against contingent loss or damage. The respondent buyer is also insured against accidents arising out of the handling or use of such canned foods.

When respondent buyer sells such food products, it invoices the products to its customers in its own name and for its own account and at prices and on terms it determines. The respondent assumes full and complete credit risk on such transactions, reaping a profit or sustaining a loss thereon, as the case may be. Par: 13. Respondent sellers, and each of them, in connection with the sale of food products in commerce to respondent buyer since June 19, 1936, as hereinabove alleged and described, have directly or indirectly granted and paid commissions, brokerage fees or other compensation or allowances or discounts in lieu thereof to respondent buyer, and respondent buyer, in connection with the purchase of food products in commerce from each and all of the respondent sellers and other sellers since June 19, 1986, as hereinabove alleged and described, Findings 46 ¥F.T.C.

has directly or indirectly received and accepted commissions, brokerage fees or other compensations or allowances or discounts in lieu thereof from each of the respondent sellers and other sellers. Par. 14. The foregoing acts and practices of respondent sellers, and each of them, in granting and allowing commissions, brokerage fees, or other compensation or allowances or discounts in lieu thereof to the respondent buyer in connection with their sales of food products to the said respondent buyer, and the foregoing acts of respondent buyer in receiving and accepting commissions, brokerage fees or other compensation or allowances or discounts in lieu thereof from each of the respondent sellers and other sellers in connection with its purchase of food products are in violation of subsection (c) of section 2 of the Clayton Act, as amended.

Report, Frnpines as To THE Facts, AND ORDER Pursuant to the provisions of an act of Congress entitled “An act to supplement existing laws against unlawfui restraints and monopolies, and for other purposes,” approved October 15, 1914 (the Clayton Act), as amended by the Robinson-Patman Act, approved June 19, 1986 (15 U.S. C., sec. 13), the Federal Trade Commission on July 20, 1948, issued and subsequently served upon the respondents named in the caption hereof its complaint, charging said respondents with having violated subsection (c) of section 2 of said Clayton Act, as amended. On September 24, 1948, the respondents filed their separate answers in which they denied many of the allegations of said complaint, but on February 21, 1949, they filed motions for leave to withdraw said original answers and to file in lieu thereof substitute answers in which they admit, with certain qualifications, all of the material allegations of fact contained in the complaint and waive all intervening procedure and further hearing as to said facts, and the Commission, by order entered herein on August 8, 1949, granted said motions. ‘The filing of the substitute answers having been made with the understanding that if this proceeding were not disposed of by the issuance of a form of order to cease and desist attached thereto and recom- ‘mended by the respondents, the respondents reserved to themselves the right to file written briefs and present oral argument as to the form of order which should be issued; and said proposed form of order having been altered by the Commission to the extent and for the reasons shown in the tentative order entered August 38, 1949, the respondents were afforded opportunity to show cause why said tentative order should not be entered herein as an order to cease and desist. The respondents not having appeared in response to the leave to show J. RICHARD PHILLIPS, JR. & SONS, INC., ET AL. 475 467 Findings cause, this proceeding regularly came on for final hearing before the Commission upon the complaint and the substitute answers; 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 Paracrapn 1. Respondent J. Richard Phillips, Jr. & Sons, Inc., is a corporation organized and existing under the laws of the State of Maryland, with its principal office and place of business located at Berlin, Md., and with a branch office and plant located at Barkers Landing, Magnolia, Del. This respondent, for many years since June 19, 1936, has been engaged, and is now engaged, in the business of canning food products “and in offering for sale, selling, and distributing such products, principally tomatoes, tomato juice, peas, and lima beans.

Par. 2. Respondent H. P. Cannon & Son, Inc., is a corporation organized and existing under the laws of the State of Delaware, with its principal office and place of business located at Bridgeville, Del. This respondent, for many years since June 19, 1936, has been engaged, and is now engaged, in the business of canning food products and in offering for sale, selling and distributing such products, principally peas, asparagus, stringless beans, tomatoes, tomato juice, pumpkins, squash, lima beans, and sweet peppers.

Par. 38. Respondent Charles T. Wrightson & Son, Inc., is a corporation organized and existing under the laws of the State of Maryland, with its principal office and place of business located at. Easton, Md. This respondent, for many years since June 19, 1936, has been engaged, and is now engaged, in the business of canning food products and in offering for sale, selling and distributing such products, principally peas, tomatoes, and corn.

Par. 4. Respondent the Torsch Canning Co. is a corporation organized and existing under the laws of the State of Maryland, with its office and place of business located at Milford, Del. This respondent, for many years since June 19, 1936, has been engaged, and is now engaged, in the business of canning food products and in offering for sale, selling and distributing such products, principally mixed vegetables, peas and carrots, lima beans, corn, succotash, peas, stringless beans, and tomatoes.

Par. 5. Respondents Walter M. Cameron, Sr. (erroneously named in the complaint as Walter S. Cameron, Sr.), and Walter M. Cameron, Jr., are partners trading as Cameron Bros. Canning Co., with their Findings 46 F.T.C.

principal office and place of business located at Rising Sun, Md., and a branch office and plant located at Nottingham, Pa. These respondents, for many years since June 19, 1936, have been engaged, and are now engaged, in the business of canning food products and in offering for sale, selling and distributing such products, principally shoe-peg corn and golden bantam corn.

Par. 6. Respondents Charles B. Osborn and S. Mitchell Osborn are partners trading as C. B. Osborn Sons, with their principal office and place of business Iocated at Aberdeen, Md. These respondents, for many years since June 19, 1936, have been engaged, and are now engaged, in the business of canning food products and in offering for sale, selling and distributing such products, principally shoe-peg corn and golden bantam corn.

Par. 7. The Respondents named in paragraphs 1 to 6, inclusive, hereof (each and all of whom are hereinafter referred to as “respondent sellers”), since June 19, 1936, have distributed and sold their food products through brokers to buyers and directly to a buyer, namely, respondent Taylor & Sledd, Inc., for resale. Said respondent sellers sell their food products under their own labels or brands and also under buyers’ labels or brands, including the brands of the respondent Taylor & Sledd, Inc.

Par. 8. Respondent Taylor & Sledd, Inc., is a corporation organized in 1918 under the laws of the State of Virginia, with its office, warehouse, and principal place of business located at 2201 East Cary Street, Richmond, Va. This respondent is engaged in the purchase and in the sale and distribution of food products, principally canned fruits and vegetables, herring and herring roe. Respondent Taylor & Sledd, Inc. (hereinafter referred to as “respondent buyer”), sells and distributes such food products to its customers located principally in the States of Virginia and North and South Carolina, although substantial sales are also made to other of its customers located chiefly in adjoining States. The respondent buyer is the largest, or one of the largest, distributors of food products in the South. It purchases and sells for its own account annually several million dollars worth of food products, which products are purchased in commerce for resale from approximately 60 sellers, including each of the respondent sellers. Par. 9. The respondent sellers, and each of them, for a substantial period of time since June 19, 1936, have shipped, transported, and sold food products in commerce to the respondent buyer and to respondent buyer’s customers. The respondent buyer, for a substantial period of time since June 19, 1936, has purchased, received, and accepted food J. RICHARD PHILLIPS, JR. & SONS, INC., ET AL. 477 467 Findings products in commerce from many sellers, including each of the respondent sellers named herein.

In the course and conduct of their respective businesses, since June 19, 1936, the respondent sellers, and each of them, and the respondent buyer, have transported or caused to be transported the food products hereinabove described, when sold, from their respective locations to the purchasers thereof located in the several States of the United States other than the States in which such shipments have originated, and at all times herein mentioned there has been a continuous current of trade and commerce in said food products among and between the various States wherein each of the respondent sellers and the respondent buyer, and each and all of the respective purchasers of such food products, are located. Respondent sellers, and each of them, and respondent buyer maintain, and at all times mentioned herein have maintained, a continuous course of trade and commerce in said food products among and between the various States of the United States. Par. 10. Respondent buyer, since June 19, 1986, has conducted, and now conducts, its business of distributing food products by two separate and distinct methods, namely, (1) as a broker, which method was not challenged by the complaint in this proceeding, and (2) as a buyer, which method was challenged by the complaint herein. As a broker, the respondent buyer acts as an intermediary or sales agent, and in this capacity negotiates the sale of food products for and on account of various seller principals, receiving as its only compensation therefor commissions or brokerage fees paid by each such seller principal. In representing its seller principals, the respondent buyer contacts prospective purchasers, solicits and obtains orders for food products at prices and on terms of sale determined by the respective seller principals, and transmits purchase orders for such products to its several seller principals, who thereafter invoice and ship the merchandise ordered directly to the customers and collect from such customers the purchase price thereof. In this type of transaction the respondent buyer, as a broker, has no financial interest whatever in the food products it sells, its only financial interest being in the commissions or brokerage fees it expects to receive from the seller principals for making the’sales, and the respondent buyer in such a case is in no sense a trader for profit. It does not take title to any of the food products sold, assumes none of the credit risk that may be involved, and it neither makes a profit nor suffers loss on any such transaction. This phase of the respondent buyer’s business operations is not involved in this proceeding.

Findings 46 F.T.C.

In addition to acting as a broker or sales agent, as aforesaid, the respondent buyer, in the regular course and conduct of its business, transmits to the various sellers with which it deals, including the respondent sellers, its own purchase orders for food products. Upon the receipt of such orders, the various sellers invoice and ship the food products ordered directly to the respondent buyer who, in connection with such purchases, is a direct purchaser, taking title to such food products and assuming all of the risks incident to ownership thereof. The respondent buyer, before purchasing, shops the market and purchases where it is able to obtain the most favorable prices and terms. Tf the food products so purchased by the respondent buyer are lost or damaged while in transit, the respondent buyer files claims with the carriers for such loss or damage and collects damages for its own benefit. Upon receiving the food products from the various sellers, the respondent buyer warehouses such products in its own warehouses, insures the products in its own name and at its own expense and for its own account against contingent loss or damage and against accidents arising out of handling, and when it sell such products it does so at prices and on terms of sale which it alone determines and thereafter invoices the products to its customers in its own name and for its own account, assuming full and complete credit risks in connection therewith and reaping a profit or sustaining a loss on the transaction, as the case may be. Respondent buyer frequently enters into formal contracts with.sellers of food products whereby it contracts to buy, and the sellers contract to sell, definite quantities of certain food products at stated prices. Many of such contracts require the sellers to deliver to the respondent buyer such food products over an extended period of time. In such cases, of course, the respondent buyer’s profit or loss on each of the transactions depends in part upon whether the market advances or declines after the contracts are executed. Par. 11. In connection with its purchases of food products for its own account as described in paragraph 10 hereof, the respondent buyer, for a substantial period of time since June 19, 1936, has also entered into so-called consignment contracts or agreements with various sellers, including the respondent sellers. Under the terms of such consignment contracts or agreements the food products purchased by the respondent buyer are purportedly consigned to it, and advances, usually from 80 to 90 percent of the purchase price of the products, are made by respondent buyer to the sellers thereof within 10 days after such food products are received by the respondent buyer from the respective sellers. The balance due on such products is ordinarily paid J. RICHARD PHILLIPS, JR. & SONS, INC., ET AL. 479 467 Conclusion after the products are resold by the respondent buyer to its customers. On some occasions, however, the total purchase price of the food products purchased under this arrangement is paid by the respondent. buyer even before such products, or all of them, have been resold. The: respondent buyer’s use of the so-called consignment contract or agree-ment under these circumstances obviously does not change the real: ~ nature of the transaction involved.

Par. 12. The respondent buyer is the owner of a number of registered trade-marks, consisting of distinctive words, emblems, or symbols, or combinations thereof, which it utilizes as brands for its food products, and the food products purchased by it from competing sellers in the manner described in the two preceding paragraphs usually, but not always, bear labels showing one or another of these private brands, which are affixed to the products by the sellers at the direction of the respondent buyer. Representative of such registered. trade-marks or private brands under which such products are purchased and later resold by the respondent buyer are the following: Pocahontas, Tidewater, Enfield Club, Wigwam, Powhatan, Wilton, Uncle Ned, Durham Maid.

Par. 13. The Commission therefore finds that since June 19, 1936, the respondent sellers have sold directly to the respondent buyer for its own account, in interstate transactions in which the respondent buyer did not function as a broker or sales agent, substantial quantities of food products. The Commission further finds that since June 19, 1936, the respondent buyer has purchased from many sellers, including each of the respondent sellers, for its own account, in interstate transactions, substantial quantities of food products. In connection with such sales to the respondent buyer, the respondent sellers have, directly or indirectly, granted and allowed to the respondent buyer commissions, brokerage fees, or other compensation or allowances or discounts in lieu thereof; and in connection with such purchases from each and all of the respondent sellers, and from other sellers, as herein found, the respondent buyer has, directly or indirectly, received and accepted from such sellers commissions, brokerage fees, or other compensation or allowances or discounts in lieu thereof.

CONCLUSION The granting and allowance by the respondent sellers and the receipt and acceptance by the respondent buyer of commissions, brokerage fees, or allowances or discounts in lieu thereof, under the circumstances and in the manner aforesaid, constitute violations by Order 46 F.T.C.

each and all of said respondents 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 substitute answers of the respondents, in which answers said respondents admit, with certain qualifications, all of the material allegations of fact set forth in the complaint and waive all intervening procedure and further hearing as to said facts; and the Commission, having made its findings as to the facts and its conclusion that the respondents have 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. C. C., sec. 13). It ts ordered, That the corporate respondents, J. Richard Phillips, Jr. & Sons, Inc.; H. P. Cannon & Son, Inc.; Charles T. Wrightson & Son, Inc.; and the Torsch Canning Co.; and their officers, and Walter M. Cameron, Sr., and Walter M. Cameron, Jr., individually, and as partners trading as Cameron Bros. Canning Co.; and Charles B. Osborn and S. Mitchell Osborn, individually, and as partners trading as C. B. Osborn Sons; and said respondents’ respective agents, representatives and employees, directly or through any corporate or other device, in connection with the sale of food products or other merchandise in commerce, as “commerce” is defined in the Clayton Act, do forthwith cease and desist from:

Paying or granting, directly or indirectly, to Taylor & Sledd, Inc., or to any other buyer, anything of value as a commission, brokerage, or other compensation, or any allowance or discount in lieu thereof, upon or in connection with any sale made to any such buyer for its own account.

It is further ordered, That the respondent, Taylor & Sledd, Inc., a corporation, and its officers, 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 a commission, brokerage, or other compensation, or any allowance or discount in lieu thereof, upon or in connection with any purchase made for such respondent’s own account. J. RICHARD PHILLIPS, JR. & SONS, INC., ET AL. 481 467 Order It ts 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.

Sylabus 46 F.T.C.