Samson Cordage Works

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~N THE MATTER OF SAMSON CORDAGE WORKS ET AL.

COMPLAINT, FINDINGS, AND ORDERS IN REGARD TO 'rhe ALLEGED VIOLATION OF SEC. 5 OF AN ACT Ol!' CONGRESS APPROVED SEPT. 26, 1914 Docket 5889. Ootn1Jla·int, Jan. 8, 1951- D ecision, Mat·. 26, 1951 Where seven corporations and the former president of four concerns which werll" merged into one of the seven, and who wus also a former officer of the Solid Braided Cord Manufacturers Association, engaged in the interstate sale and shipment of their cordage products, including cotton sash cords, awning cords, clothes lines, and other similar cotton cordage; and a second individual who was a former secretary-tr easurer of the Cotton-Textile Institute, Inc., and a former officer of said Manufacturers Association and other trade associations, and was for many years a co-conspirator with the others in carrying out the unlawful acts in commerce below set-out; En~ugcd in organizing and developing a combination, agreement and l)lanned common course of action to suppress and eliminate competition among themselves and others in said products; and pursuant thereto-- (t~} Agreed to and did fix and maintain prices, fix, modify, or eliminate certain trade discounts, and adopt and usc uniform terms of conditions of sale; (b) Agreed to and did reduce the number of hours or shifts for work in their manufacturing plants, with the intent and effect of curtailing production; (c) Agreed to and did eliminate certain grades and weights of cordage products ; (d) Agreed to and did formulate, adopt, and place in operation the practice of making uniform allowances from shipping charges; (e) Exchanged among themselves, directly or indirectly, information relating to current and future prices, terms, or conditions of sale, and freight charges and allowances or deductions made therefrom: (f) Agreed to and did adopt, maintain, and use uniform standards or specifications for sizes, weights, and descriptions for said products, for pricing purposes, and ag1·eed to and did fix, establish, and maintain substantially uniform price differentials between products of uniformly varying sizes, weights, and descriptions;

(f!) Agreed to and did abandon the practice of guaranteeing prices against decline; and (h) Agreed to and did place in operation, from time to time, a plan of resale price maintenance whereby the customers were required to sell products concerned at prices and upon terms and conditions of sale which they fixed or which were agreed upon by or stipulated between them and the customers; Effects of which practices and activities included the stifling of price competition among them; establishment of substantially uniform price differentials between products of uniformly varying sizes, weights and descriptions; and of substantially identical prices, trade discounts, terms or conditions of sale and freight allowances; and unlawful resale price maintenance and r estraint of trade among their customers :

Held, That said combination, etc., and said acts, practices, pricing methods, devices, and policies wet·e unfair and to the prejudice of the public; deprived it Complaint 47F.T.C.

of the benefit of competition; had dangerous tendencies and capacities to unlawfully restrain commerce in said products and suppressed and eliminated competition therein; and that said acts and practices were all to the prejudice of the public and of their competitors, and constituted unfail· methods of competition in commerce.

Before Mr. Everett F. Haycraft, trial examiner. Mr. Leslie S. Miller and Mr. J. Wallace Adair for the Commission. Mr. John Marshall, Jr., of Louisville, Ky., for Puritan Cordage Mills.

Mr. Yowng M. Smith, of Hickory, N.C., for Shuford Mills, Inc. Knox, Jones, Woolf & Merrill, of Anniston, Ala., for Southern :Mills Corporation.

Kramer, McNabb re Greenwood, of Knoxville, Tenn., for Rockford Manufacturing Co.

Edmwnds, Obermayer & Rebma;nn, of Philadelphia, Pa., for Wm. E. Hooper & Sons Co. of Baltiq1ore City.

Dorr, Hammond, Hand & Dawson, of New York City, for Paul B. Halstead.

Complaint Pursuant to the provisions of the Federal Trade Commission Acl and by virtue of the authority vested in it by said act, the Federal Trade Commission, having reason to believe that the parties named in the caption hereof and more particularly described and referred to hereinafter as respondents, have violated the provisions of section 5 of the said act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint, stating its charges as follows: PARAGRAPH 1. Respondents named and described herein have combined and conspired to lessen and eliminate competition and restrain trade in commerce, as commerce is defined in the Federal Trade Commission Act in the sale of cordage products, including cotton sash cords, awning cords, clothes lines, and other cotton cordage similarly constructed or used for substantially similar purposes as any of the foregoing. Respondents accomplished the combination and conspiracy herein alleged through agreements, understandings, and concerted action among themselves and with others. Each respondent named herein has used trade-restraining and unfair methods and practices in furtherance of, and to make more effective, the objectives of the combination and conspiracy as alleged.

SAMSON CORDAGE WORKS ET AL. 1117 1115 Complaint PAR. 2. The following is a description of the corporate respondents, including their respective corporate status and principal office and place of business :

1. Samson Cordage Works, a Massachusetts corporation, 89 Broad Street, Boston, Mass.

2. Puritan Cordage Mills, a Kentucky corporation, 1205 Washington Street, Louisville, Ky.

3. Shuford Mills, Incorporated, a North Carolina corporation, Hickory, N. C. Shuford Mills, Incorporated, represents a merger of A. A. Shuford Mills Co., Granite Falls Manufacturing Co., Highland Cordage Co., and Granite Cordage Co., said merger having become effective January 1, 1947.

4. Cleveland Mill & Power Co., a North Carolina corporation, Lawndale, N. C.

5. Southern Mills Corp., a Delaware corporation, Oxford, Ala. 6. Rockford Manufacturing Co., a Tennessee corporation, Rockford, Tenn.

7. "\Vm. E. Hooper & Sons Co., of Baltimore City, a Maryland corporation, 1319-23 Cherry Street, Philadelphia, Pa. The following are individual respondents:

8. Paul B. H alstead, an individual, 271 Church Street, New York, N. Y., individually, in his former capacity as secretary-treasurer of the Cotton-Textile Institute, Inc., and in his former capacity as an officer of the Solid Braided Cord Manufacturers Association. 9. Bascom B. Blackwelder, an individual, Quaker Meadow Mills, Inc., Hildebran, N. C., individually, in his former capacity as president of A. A. Shuford Mills Co., Granite Falls Manufacturing Co., Highland Cordage Co., and Granite Cordage Co., and in his former capacity as an officer of the Solid Braided Cord Manufacturers Association.

PAR. 3. All of the aforesaid respondents, with the exception of individual respondent Paul B. H alstead, in the course and conduct of their business, have regularly sold and shipped their "cordage products" to purchasers at points in the several States of the United States and in the District of Columbia, other than the State of origin of the shipment, in a regular current and flow of commerce, as "commerce" is defined in the Federal Trade Commission Act. Because of the adoption and use of methods, practices, and policies hereinafter described, active and substantial competition between the manufacturing and selling respondents and others engaged in the manufacturing and selling of cordage products has been lessened or eliminated.

Complaint 47 F. '1'. C. Respondent, Paul B. Halstead, in his individual capacity and in his former capacity as an officer of trade associations not named herein as respondents, though not engaged in commerce himself, has been for many years engaged in cooperating as a co-conspirator with the other respondents named herein in carrying out the unlawful acts· in commerce as hereinafter alleged.

PAn. 4. The aforesaid respondents have been engaged in organizing and developing a combination, agreement, and planned common course of action to suppress and eliminate competition as to prices, and otherwise, among themselves and others, for cordage products. As steps in and toward the accomplishment of this purpose and objective, and in furtherance of and pursuant to the combination, agreement, and planned common course of action engaged in by the respondents, each of said respondents has adopted and utilized one or more of the following methods or practices : 1. Respondents have agreed to fix and maintain, and, pursuant thereto, have fixed and mainUtined prices. 2. Respondents have agreed to fix, modify, or eliminate, and pursuant thereto have fixed, modified, or eliminated certain trade discounts.

3. Respondents have agreed upon, adopted, and used uniform terms or conditions of sale.

4. Respondent manufacturers have a.greed to reduce, a.ncl, in pursuance thereof, did reduce the number of hours or shifts for work in their respective plants for the purpose or with the effect of curtailing production in furtherance of their program.m of concerted action to create scarcity of their products so as t9 further facilitate their acts and practices of fixing, raising, pegging, and stabilizing prices. 5. Respondents have agreed to elimina.te, and, in pursuance thereof, have elimina.ted certain grades and weights of cordage products. 6. Respondents agreed to formulate, adopt, and place in operation, and, in pursuance thereof, did formulate, adopt, and place in oi)eration the practice of making uniform allowances from shipping charges. 7. Respondents have exchanged among themselves, directly and indirectly, information relating to current and future prices, terms, or conditions of sale, and freight charges and allowances or deductions which are made therefrom.

8. Respondent manufa~turers have agreed to adopt, maintain, and use, and in pursuance thereof have adopted, maintained, and used uniform standards or specifications for sizes, weights, and descriptions for cordage products for pricing purposes, and have agreed to fix, estab- SAMSON CORDAGE WORKS ET AL. 1119• 1115 Decision lish, and maintain, and, in pursuance thereof, have fixed, established, and maintained substantially uniform differentials in prices between. cordage products of uniformly varying sizes, weights, and descriptions. 9. Respondents agreed to abandon, and, in pursuance thereof, did abandon the practice of guaranteeing prices against decline. 10. Respondents agreed to place in operation and did place in operation, from time to time, a plan of resale price maintena1:ce whereby the customers of respondent manufacturers were required to sell cordage products at prices and upon terms and conditions of sale fixed by said respondents or agreed upon by or stipulated between the said respondents and their respective customers. PAR. 5. The effects of the adoption and use by respondents of the· practices and activities hereinabove alleged in connection with their sale of cordage products are that:

1. They stifle and eliminate price competition and restrain trade between respondents.

2. They result in substantially uniform differentials in price between products of tmiformly varying sizes, weights, and descriptions. 3. They result in substantially identical prices, trade discounts,. terms, or conditions of sale and freight allowances. 4. They result in unlawful resale price maintenance and restrain trade among respondent manufacturers' customers. PAn. 6. The combination, conspiracy, agreements, and understandings of the respondents and the acts, practices, pricing methods, de- Yices, and policies alleged herein are unfair and to the prejudice of the public; deprive the public of the benefit of competition; have dangerous tendencies and capacities to unlawfully restrain commerce in the said products; have hindered, frustrated, suppressed, and eliminated competition in said products in commerce and constitute unfair methods of competition and unfair or deceptive acts and practices in commerce within the intent and meaning of section 5 of the Federal Trade Commission Act.

DECISION OF THE COMMISSION Pursuant to rule XXII of the Commission's rules of practice, and as set forth in the Commission's "Decision of the Commission and Order to File Report of Compliance," dated March 26, 1951, the initial decision in the instant matter o£ trial examiner E verett F. Haycraft, as set out as follows, became on that date the decision o£ the Commission. !ll!) 675-~ :l--i 4 Findings 47F. T. C.

Initial DECISION BY EVERETI' F. HAYCRAF'l', TRIAL EXAMINER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission on January 8, 1951, issued and subsequently served its complaint in this proceeding upon the respondents Samson Cordage Works, Puritan Cordage Mills, Shuford Mills, Inc., Cleveland Mill & Power Co., Southern Mills Corporation, Rockford Manufacturing Co., and Wm. E. Hooper & Sons Co. of Baltimore City, corporations, their officers, directors, agents, representatives, and r.mployees, and Paul B. Halstead and Bascom B. Blackwelder, individuals, charging them with the use of unfair methods of competition and unfair or deceptive acts or practices in commerce in violation of the provisions of said act. On January 18, 1951, respondents filed their answers in which answers they admitted all material allegations o£ fact set forth in said complaint and waived all intervening procedure and further hearings as to the said :facts. Therea.after, the proceeding regularly came on for final consideration by the above-named trial examiner, theretofore duly designated by the Commission, upon said complaint and answers thereto (all intervening procedure having been waived) and said trial examiner, having duly considered the record herein, finds that this proceeding is in the interest of the public and makes the following findings as to the facts, conclusion drawn therefrom, and order :

FINDINGS AS '1'0 'lhe FACTS PARAGRAPH 1. The :following is a description of the corporate respondents, including their respective corporate status and principal office and place of business :

Samson Cordage Works, a Massachusetts corporation, 89 Broad Street, Boston, Mass.

Puritan Cordage Mills, a Kentucky corporation, 1205 W ashington Street, Louisville, Ky.

Shuford Mills, Incorporated, a North Carolina corporation, Hickory, N. C. Shuford Mills, Incorporated, represents a merger o:f A. A. Shuford Mills Co., Granite Falls Manufacturing Co., Highland Cordage Co., and Granite Cordage Co., said merger having become effective January 1, 1947.

Cleveland Mill & Power Co., a North Carolina corporation, Lawndale, N.C.

- SAMSON CORDAGE WORKS ET AL. 1121 "1115 Findings Southern Mills Corp., a Delaware corporation, Oxford, Ala. Rockford Manufacturing Co., a Tennessee corporation, Rockford, Tenn.

Wm. E. Hooper & Sons Co. of Baltimore City, a Maryland corpo ration, 1319- 23 Cherry Street, Philadelphia, Pa. PAR. 2. The following is a description of the individual respondents: including their respective office and place of business: Paul B. Halstead, an individual, 271 Church Street, New York, N. Y., a former secretary-treasurer of the Cotton-Textile Institute, Inc., and a former officer of the Solid Braided Cord Manufacturers Association.

Bascom B. Blackwelder, an individual, Quaker Meadow Mills, Inc., Hildebran, N. C., a former president of A. A. Shuford Mills Co., Granite Falls Manufacturing Co., Highland Cordage Co., and Granite Cordage Co., and a former officer of the Solid Braided Cord Manufacturers Association.

PAR. 3. All of the aforesaid respondents, with the exception of individual respondent P aul B. Halstead, in the course and conduct of their business, have regularly sold and shipped their cordage products, including cotton sash cords, awning cords, clothes lines, and other cotton cordage similarly constructed, to purchasers at points in the several States of the United States and in the District of Columbia, other than the State of origin of the shipment, in a regular current and flow of commerce, as "commerce" is defined in the Federal Trade Commission Act.

Respondent Paul B. Halstead, in his individual capacity and in his former capacity as an officer of trade associations not named herein as respondents, though not engaged in commerce himself, has been for many years engaged in cooperating as a coconspirator with the other respondents named herein in carrying out the unlawful acts in commerce as hereinafter found.

PAR. 4. The aforesaid respondents have been engaged in organizing and developing a combination, agreement, and planned common course of action to suppress and eliminate competition as to prices, and otherwise, among themselves and others, for cordage products. As steps in and toward the accomplishment of this purpose and objective, and in furtherance of and pursuant to the combination, agreement, and planned common course of action engaged in by the respondents, each of said respondents has adopted and utilized one or more of the following methods or practices :

1. Respondents have agreed to fix and maintain, and, pursuant thereto, have fixed and maintained prices. Findings 47 F. '1'. 0 .. 2. Respondents have agreed to fix, modify~ or eliminate, and pursu-· ant thereto have fixed, modified, or eliminated certain trade discounts. 3. Respondents have agreed upon, adopted, and used uniform terms or conditions of sale.

4. Respondent manufacturers have agreed to reduce, and, in pursuance thereof, did reduce the number of hours or shifts for work in their respective plants for the purpose or with the effect of curtailing· production in furtherance of their program of concerted action to create scarcity of their products so as to further facilitate their acts and practices of fixing, raising, pegging, and stabilizing prices. 5. Respondents have agreed to eliminate, and, in pursuance thereof,. have eliminated certain grades and weights of cordage products. 6. Respondents agreed to formulate, adopt and place in operation, and, in pursuance thereof, did formulate, adopt and place in operation the practice of making uniform allowances from shipping charges. 7. Respondents have exchanged among themselves, directly and indirectly, information relating to current and future prices, terms, or conditions of sale, and freight charges and allowances or deductions which are made therefrom.

8. Respondent manufacturers have agreed to adopt, maintain, anu use, and in pursuance thereof have adopted, maintained, and used lmiform standards or specifications for sizes, weights, and descriptions for cordage products for pricing purposes, and have agreed to fix, establish and maintain, and, in pursuance thereof, have fixed, estabbshed, nnd maintained substantially uniform differentials in prices between cordage products of uniformly varying sizes, weights, and descriptions. 9. Respondents agreed to abandon, and, in pursuance thereof, did abandon the practice of guaranteeing prices against decline. 10. Respondents agreed to place in operation and did place in operation, from time to time, a plan of resale pdce maintenance whereby the customers of respondent manufacturers were required to seh cordage products at prices and upon terms and conditions of sale fixed by said re.<>pondents or agreed upon by or stipulated between the said respondents and their r(lspective customers. PAn. 5. The effects of the adoption and usc by respondents of the practices and activities hereinabove found in connection with their sale of cordage products are that:

1. They stifle and elimimtte price competition and restrain trade between respondents.

2. They result in substantially uniform differentials in price between products of uniformly varying sizes, weights, and descriptions. SAMSON CORDAGE WORKS ET AL. 1123 1115 Order 3. They result in substantially identical prices, trade discounts, -terms, or condi6ons of sale and freight allowances. 4. They result in unlawful resale price maintenance and restrain trade among respondent manufacturers' customers. PAR. 6. The combination, conspiracy, agreements, and understandings of the respondents and the acts, practices, pricing methods, devices, and policies found herein are unfair and to the prejudice of the public; deprive the public of the benefit of competition; have dangerous tendencies and capacities to unlawfully restrain commerce in the said products; have hindered, frustrated, suppressed, and eliminated competition in said products in commerce. CONCLUSION The aforesaid acts and practices of respondents as hereinabove set ·out are all to the prejudice of the public and of respondents' competitors and constitute unfair methods of competition in commerce ·within the intent and meaning of the Federal Trade Commission Act. ORDER This proceeding having been heard by a trial examiner of the Federal Trade Commission upon the complaint of the Commission and the answers of the respondents, in which respondents admit all the material allegations of fact set forth in said complaint and state that they waive all intervening procedure and further hearing as to said facts; and the said trial examiner having made his findings as to the facts and conclusion that said respondents have violated the provisions of the Federal Trade Commission Act. It is 01'de1·ed, That Samson Cordage \iV orks, a corporation, Puritan Cordage Mills, a corporation, Shuford Mills, Incorporated, a corporation, Cleveland Mill & Power Co., a corporation, Southern Mills Corp., a corporation, Rockford Manufacturing Co., a corporation, Wm. E. Hooper & Sons Co. of Baltimore City, a corporation, and Paul B. Halstead, an individual, and Bascom B. Blackwelder, an individual, their officers, directors, agents, representatives, and employees, directly or through any corporate or other device, in connection with offering for sale, sale, and distribution in commerce, as commerce is defined in the Federal Trade Commission Act, of cordage products, including cotton sash cords, awning cords, clothes lines, and other cotton cordage similarly constructed or used for substantially similar purposes as any of the foregoing, do forthwith cease and desist from entering into, continuing, cooperating in, or carrying Order 47F.T.C.

out any planned common course of action, understanding, mutual agreement, combination, or conspiracy between and among any two or more of said respondents, or between any one or more of said respondents and another or others not parties hereto, to do or perform any of the following:

F ixing, establishing, or maintaining prices, discounts, terms, or conditions of sale.

Fixing, modifying, or eliminating trade discounts. Curtailing, restricting, or regulating production by reducing the total number of work hours or by any other means. Eliminating grades or weights of cordage products in conjunction with, pursuant to, or in furtherance of, the fixing or stabilizing of prices.

Making uniform deductions or allowances from actual shipping costs.

Establishing standards or specifications for sizes, weights, and descriptions for cordage products when the action taken or infor- )llation exchanged is for the purpose of fixing or maintaining prices or differentials in prices or has the tendency to fix or maintain prices or differentials in price.

Denying purchasers the benefit of market price declines. Exchanging, distributing, or relaying between or among the respondents, or between or among any of them, or between or among any of their representatives, agents, or employees, or through any medium or central agency the following information with respect to the business practices or sales policies of any particular respondent, to wit: Current or future prices, or terms or conditions of sale, or trade discounts, or freight charges or allowances therefrom, or price quotations submitted or to be submitted on any prospective piece of business.

It is further ordered, That the respondents herein, or any of them, their officers, representatives, agents, and employees, acting separately or in concert, directly or through any corporate or other device, in connection with the offering for sale, sale, and distribution of cordage products in commerce, as commerce is defined in the Federal Trade Commission Act, do forthwith cease and desist from entering into or continuing in operation any contract, agreement, or understanding with customers which provides that cordage products are not to be advertised, offered for sale, or sold by such customers at prices other than those specified or fixed by the respective respondents, acting separately or in concert.

SAMSON CORDAGE WORKS ET AL. 1125· 1115 Order I t is fwrther ordered, That nothing contained herein shall be construed to prohibit (a) any seller from independently entering into· an agreement with a purchaser as to the price to be charged such purchaser, the terms or conditions of sale, trade discounts, weights, grades, standards, or specifications for cordage products, price differentials, and freight charges or allowances, independently determined and offered by either such seller or buyer and independently accepted by either such seller or buyer in any bona fide transaction, or (b) any prospective seller from making, or any prospective purchaser from receiving, an offer of sale in contemplation of a bona fide transaction between such prospective seller and prospective purchaser; provided that such agreement or offer of sale is not for the purpose nor has the effect of restraining trade.

I t is further ordered, That nothing contained herein shall be construed to prohibit any of the respondents from entering into such contracts or agreements relating to the maintenance of resale prices as are permitted under the provisions of .the Miller-Tydings Act. I t is further '()?'dered, That nothing contained herein shall be construed to affect the duty, authority, or power of the Commission to reopen this proceeding, as provided for by law, and to alter, modify, or set aside, in whole or in part, any provision of this order whenever, in the opinion of the Commission, conditions of fact or of law have so changed as to require such action or if the public interest shall so require.

ORDER TO FILE REPOUT OF COl\IPLIANCE It is ordered, That respondents, Samson Cordage Works, Puritan Cordage Mills, Shuford Mills, Inc., Cleveland Mill & Power Co., Southern Mills Corp., Rockford Manufacturing Co., Wm. E. Hooper & Sons Co. of Baltimore City, P aul B. Halstead, and Bascom B. Blackwelder 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 the order to cease and desist [as required by said declaratory decision and order of March 26, 1951].

Syllabus 47F. T. C.

IN THJoJ Matler OF BIBB MANUFACTURING COMPANY ET AL.

COMPLAIN'l', FINDINGS, AND ORDir.R I N ItEGARD TO 'thid ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 19H Doclcet 58.'J8. Com.tJlctint, Jm~. 8, 1951- Decision, Mar. 21, 1951 ·where nine corporations and the former president of four concerns which were merged into one of the nine, engaged in the interstate sale and shipment of twine products, including cotton wrapping twines, sewing twines, polished twines and Lobacco twines, hose cords, and other similar r cotton twines; and two trade association ollicers who, while not engaged in commerce themsel ves, had for many years cooperated with the others in can:ying out the unlawful acts in commerce b!'llow setout ; Engaged in organizing and developing a combination, agreement, and planned common course of action to suppress and eliminate competition among themselves anti others in said products; pm·suant to which they- (ct) Agreed to and did fix and.maintaiu prices; fix, modify, or eliminate certain trade discounts; and adhere to their respective published prices; (b) Agreed to and did reduce the number of hours or shifts for work in their manufacturing plants;

(c) Agreed to and did formulate, adopt, and place in operation the practice of making uniform allowances from shipping charges; (d) Agreed to and did adopt and use uniform terms and conditions of sale, and abandon the practice of guaranteeing prices against decline; (e) Exchanged among ti1emselvcs, directly and indireclly, informalion relating to current and fu ture prices, terms, or conditions of sale, nnd freight charges and deductions therefrom; a nd (f) Agreecl to and dicl usc nuiform slnuclnrds for sizes, weights, ancl descriptions for said products, ancl maintain substantially uniform price differeutials between products of uniformly var ying sizes, weights, and descriptions ; With effect of stifling price com11~tilion awong them and reslralning trade and of establishing substantially uniform price di!Ierentials between products of uniformly va rying sizes, weights, and descriptions; and substantially identical prices, trade discounts, Lerms, or conditions of sale, and freight allowances :

H el(l, 'that said combination, etc., and said. acts, practices, pricing methods, devices, and policies we1·e unfair and to the prejudice of the public; deprived it of the benefit of competition; had dangerous tendencies and capacities to u11lawfully restrain commerce in said products, and suppressed and eliminated competition therein; and that said acts and practices were a ll to the prejudice of the public and of their competitors, and constituted unfair methotls of competition in commerce. Before Mr. Everett F. Ilaycraft, trial examiner. fl!?·. Leslie S . Miller and Mr. J. Wallace Adair for the Commission. Jones, Jones & Sparks, of Macon, Ga., for Bibb Manufactmi11g Co. Mr. Young M. Smith, of Hickory, N. C., for Shuford Mills, Inc. BIBB Manufacturing CO. ET AL. 1127 1126 Complaint Krame1·, LlfcNabb &: Gree'IVWood, of Knoxville, Tenn., for Rockford. Manufacturing Co.

M1·. J ohn Henry Lewin and Mr. J. Orossatn Ooope1·, J?·., of Balti-· more, Mel., for Mt. Vern on-Woodberry Mills, Inc. M1•. A . Milton Vance, of Houston, Tex., for Houston Cotton Mills· Co.

Tillett, Campbell, 01·aighill & Rendleman, of Charlotte, "N. C., for E. Owen Fitzsimons.

Dor1·, Harrwnond, Hand & Dawson, of New York City, for Paul B. Halstead.

Complaint Pursuant to the provisions of the Federal Trade Commission Act and by vi1·Lu~ of the authority vested in it by said act, the Federal Trade Commission, having reason to believe that the parties named in the caption hereof, and more particularly described and referred to hereinafter as respondents, have violated the provisions of section 5 of said act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint, stating its charge as follows: PARAGRAPH 1. Respondents named and described herein have combined and conspired to lessen and eliminate competition and to restrain trade in commerce, as "commerce" is defined in the F ederal Trade Commission Act in the sale of "twine products," including cotton wrapping twines, sewing twines, polished twines, tobacco twines, pea twines, bean twines, hop twines, hose cords, and other cotton twines similarly constructed or used for substantially similar purposes as any of the foregoing, but not including carded sales yarn except insofar as the same may be manufactured and sold for use as twine. Respondents accomplished the combination and conspiracy herein alleged through agreements, understandings, and concerted action among themselves and with others. Each respondent named herein has used trade restraining and unfair methods and practices in furtherance of, and to make more effective, the objectives of the combination and conspiracy as alleged.

P.li..R. 2. The following is a description of the corporate respondents, including their respective corporate status and principal office and place of business:

1. Bibb Manufacturing Co., a Georgia corporation, Main and Water Streets, Macon, Ga.

2. Shuford Mills, Inc., a North Carolina corporation, Hickory, N. C. Shuford Mills, Inc., represents a merger of A. A. Shuford Mills Complaint 47F. T. C.

Co., Granite Falls Manufacturing Co., Highland Cordage Co., and Granite Cordage Co.; said merger having become effective January 1, 1947.

3. Oakdale Cotton Mills, a North Carolina corporation, Jamestown, N.C.

4. Cleveland Mill & Power Co., a North Carolina corporation, Lawndale, N. C.

5. January & Wood Co., a Kentucky corporation, Maysville, Ky. 6. Rockford Manufacturing Co., a Tennessee corporation, Rockford,Telm.

7. Mount Vernon-Woodberry Mills, Inc., a Maryland corporation, Mercantile Trust Building, Baltimore 2, Md. 8. Houston Cotton Mills Co., a Texas corporation, 8100 Washington A venue, Houston, Tex. · 9. Samson Cordage Works, a Massachusetts corporation, 89 Broad Street, Boston, Mass.

The following are individual respondents:

10. E. Owen Fitzsimons, an individual, J'ohnston Building, Charlotte, N. C., individually; said E. Owen Fitzsimons has been president and treasurer of the Carded Yarn Association, Inc., since its organization in January 1946; he has previously served as treasurer of the Carded Yarn Association, as secretary of the Carded Yarn Group, as field representative or agent of the Cotton-Textile Institute, Inc., and as an organizer, sponsor, guide, and officer of the Twine and Cordage Group of the carded yarn group of the Cotton-Textile Institute, Inc.

11. Bascom B. Blackwelder, an individual, Quaker Meadow Mills, Inc., Hildebran, N. C., individually and in his former capacity as president of A. A. Shuford Mills Co., Granite Falls Manufacturing Co., Highland Cordage Co., and Granite Cordage Co. 12. Paul B. Halstead, an individual, 271 Church Street, New York, N. Y., individually and in his former capacity as secretary-treasurer of the Cotton-Textile Institute, Inc.

PAR. 3. All of the aforesaid respondents, with the exception of individual respondents E. Owen Fitzsimons and Paul B. Halstead, in the course and conduct of their business, have regularly sold and shipped their twine products to purchasers at points in the several States of the United States and in the District of Columbia, other than the State of origin of the shipment, in a regular current and flow of commerce, as commerce is defined in the Federal .Trade Commission Act.

BIBB MANUFACTURING CO. ET AL • 1129 . 1126 Complaint Because of the adoption and use of methods, practices, and policies hereinafter described, active and substantial competition between the manufacturing and selling respondents and others engaged in the manufacturing and selling of twine products has been lessened or -eliminated.

Respondents, E. Owen Fitzsimons and Paul B. Halstead, in their individual capacities and in their former capacities J!.S officers of organizations not named herein as respondents, though not engaged in -commerce themselves, have been for many years engaged in cooperating as co-conspirators with the other respondents named herein in carrying out the unlawful acts in commerce, as hereinafter alleged PAR. 4. The aforesaid respondents have been engaged in organizing and developing a combination, agreement, and planned common ·course of action to suppress and eliminate competition as to prices, and -otherwise, among themselves and others, for twine products. As steps in and toward the accomplishment of this purpose and objective, and in furtherance of and pursuant to the combination, agreement, and planned common course of action engaged in by the respondents, each of said respondents has adopted and utilized one or more of the following methods or practices :

1. Respondents have agreed to fix and maintain, a11d pursuant thereto have fixed and maintained prices.

2. Respondents have agreed to fix, ~odify, or eliminate, and have fixed, modified, or eliminated certain trade discounts. 3. Respondents have agreed to adhere, and in pursuance thereof have adhered, to their respective published prices. 4. Respondent manufacturers have agreed to reduce, and in pursuance thereof did reduce, the number of hours or shifts for work in their respective plants for the purpose or with the effect of curtailing production in furtherance of their program of concerted action to create scarcity of their product_s so. as to further facilitate their acts :mel practices of fixing, raising, pegging, and stabilizing prices. 5. Respondents agreed to formulate, adopt, and place in operation; and, in pursuance thereof, did formulate, adopt, and place in operation the practice of making uniform allowances from shipping charges. 6. Respondents agreed upon, adopted, and used uniform terms and conditions of sale.

7. Respondents agreed to abandon, and, in pursuance thereof, did abandon the practice of guaranteeing prices against declines .. 8. Respondents have exchanged among themselves, directly and indirectly, information relating to current and future prices, terms, Decisions 47l\'. T. C. or conditions of sale, and freight charges and allowances or deductions which are made therefrom.

9. Respondent manufacturers have agreed to adopt, maintain, and use, and, in pursuance thereof, have adopted, maintained, and used uniform standards or specifications for sizes, weights, and descriptions for twine products for pricing purposes, and have agreed to fix, establish, and maintain, and, in pursuance thereof, have fixed, established, and mai~tained substantially uniform differentials in prices between twine products of uniformly varying sizes, weights, and descriptions.

P AU. 5. The effects of the adoption and use by respondents of the practices and activities hereinabove alleged in connection with their sn.le of twine products are that:

1. They stifle and eliminate price competition and restrain trade between respondents.

2. They result in substantially uniform differentials in price between products of uniformly varying sizes, weights, and descriptions. 3. They result in substantially identical prices, trade discounts, terms, or conditions of sale and freight allowances. PAR. 6. The combination, conspiracy, agreements, and understandings of the respondents nncl the acts, practices, pricing methods, devices, and policies alleged herein are unfair and to the prejudice of the public; deprive the public of the benefit of competition; have dangerous tendencies and capacities to unlawfully restrain commerce in the said products; have hindered, frustrated, suppressed, and eliminated competition in said products in commerce and constitute unfairmethods of competition and unfair or deceptive acts and practices in. commerce within the intent and meaning of section 5 of the Federal Trade Commission Act.

DECISION OF THE COl\Il\IISSION P ursuant to rule XXII of the Commission's rules of practice, and' as set forth in the Commission's "Decision of the Commission and Order to File Report of Compliance," dated March 27, 1951, the initial decision in the instant matter of trial examiner Everett F. Haycraft, as set out as follows, became on that date the decision of the Commission.

INITI AL DECISI ON BY EVERETT F . H AYCRA1"'1'1 TRIAL EXAMINER Pursuant to the provisions of the F ederal Trade Commission Act, the F ederal Trade Commission on J nnw.try 8, 1!)511 issued and subse- BIBB MANUFACTURING CO. ET AL. 1131 1126 Findings (1uently served its complaint in this proceeding upon the respondents Bibb Manufacturing Co., Shuford Mills, Inc., Oakdale Cotton Mills, Cleveland Mill & Power Co., January & Wood Co., Rockford Manufacturing Co., Mount Vernon-vVoodberry Mills, Inc., Houston Cotton Mills Co., and Samson Cordage Works, corporations, their officers, directors, agents, representatives, and employees, and E. Owen Fitzsimons, Bascom B. Blackwelder, and Paul B. Halstead, individuals, charging them with the use of unfair methods of competition and unfair or deceptive acts or practices in commerce in violation of the provisions of said act. On January 18, 19!11, respondents fi.led their answers in which answers they admitted all the material allegations of fact set forth in said complaint and waived all intervening procedure and further hearings as to the said facts. Thereafter, the proceeding regularly came on for final consideration by the above-named trial examiner, theretofore duly designated by the Commission, upon said complaint and answers thereto (all intervening procedure having been waived) and said trial examiner, having duly considered the record herein, finds that this proceeding is in the interest of the public und makes the following findings as to the facts, conclusion drawn therefrom, and order :

FINDINGS AS TO '!'HE FACTS PARAGRArrr 1. The following is u description of the corporate respondents, including their respective corporate status and principal office and place of business :

Bibb Manufacturing Co., a Georgia corporation, Mah1 and Water Streets, Macon, Ga.

Shuford Mills, Incorporated, a North Carolina corporation, Hickory, N. C. Shuford Mills, Inc., represents a merger of A. A. Shuford Mills Co., Granite Falls Manufacturing Co., Highland Cordage Co., and Granite Cordage Co., said merger having become effective January 1, 1947.

Oakdale Cotton Mills, a North Carolina corporation, James town, N.C.

Cleveland Mill & Power Co., a North Carolina corporation, Lawndale, N.C.

January & Wood Co., a Kentucky corporation, Maysville, Ky. Rockford Manufacturing Co., a Tennessee corporation, Rockford, Tenn.

Mt. Vernon-vVoodberry Mills, I nc., a Maryland corporation, Mercantile Trust Building, Baltimore 2, Mel.

Findings 47F.T.O ..

Houston Cotton Mills Co., a Texas corporation, 8100 Washington A venue, Houston, Tex.

Samson Cordage Works, a Massachusetts corporation, 89 Broad Street, Boston, Mass.

PAR. 2. T he following is a description of the individual respondents,. including their respective office and place of business: E. Owen Fitzsimons, an individual, P. 0. Box 869, Charlotte, N. C., a former president and treasurer of the Carded Yarn Association,. Inc., secretary of the Carded Yarn Group, field representative of the Cotton-Textile Institute, Inc., also organizer, sponsor, guide, and officer of the Twine and Cordage Group of the Cotton-Textile Institute, Inc.

Bascom B. Blackwelder, an individual, Quaker Meadow Mills, I nc., Hildebran, N. C., a former president of A. A. Shuford Mills Co., Granite Falls Manufacturing Co., Highland Cordage Co., and Granite Cordage Co.

Paul B. Halstead, an individual, 271 Church Street, New York,. N. Y., a former secretary-treasurer of the Cotton-Textile Institute, Inc.

PAR. 3. All of the aforesaid respondents, with the exception of individual respondents E. Owen Fitzsimons and Paul B. Halstead, in the course and conduct of their business, have regularly sold and shipped their twine products, including cotton wrapping twines, sewing t'vines, polished twines, tobacco twines, pea twines, bean twines, hop twines, hose cords, and other cotton twines similarly constructed, but not including carded sales yarn except in so far as same may be manufactured and sold for use as twine, to purchasers at points in the several States of the United States and in the District of Columbia, other than the State of origin of the shipment, in a regular current and flow of commerce, as commerce is defined iu the Federal Trade Commission Act.

Respondents, E. Owen F itzsimons and Paul B. Halstead, in their individual capacities and in their former capacities as officers of organizations not named herein as respondents, though not engaged in commerce themselves, have been for many years engaged in cooperating as co-conspirators with the other respondents named herein in carrying out the unlawful acts in commerce, as hereinafter found. PAR. 4. The aforesaid respondents have been engaged in organizing and developing a combination, agreement, and planned common course of action to suppress and eliminate competition as to prices, and otherwise, among themselves and others, for said twine products. As BIBB MANUFACTURING CO. ET AL. 1133 112fi Findings steps in and toward the accomplishment of this purpose and objective, and in furtherance of and pursuant to the combination, agreement, and planned common course of action engaged in by the respondents, each of said respondents has adopted and utilized one or more of the following methods of practices: 1. .Respondents have agreed to fix and maintain, nnd pursuant thereto have .fixed and maintained prices. 2. Respondents have agreed to fix, modify, or eliminate, and have fixed, modified, or eliminated certain trade discounts. 3. Respondents have agreed to adhere, and in pursuance thereof have adhered, to their respective published prices. 4. Respondent manufacturers have agreed to reduce, and in pursuance thereof did reduce, the number of hours or shifts for work in their respective plants for the puriJose or with the effect of curtailing production in furtherance of their program of concerted action to create scarcity of their products so as to further facilitate their acts and pract.ices of fixing, raising, pegging, and stabilizing prices. 5. Respondents agreed to formulate, adopt, and place in operation; and, in pursuance thereof, did formulate, adopt, and place in operation the practice of making uniform allowances from shipping charges. 6. Respondents agreed upon, adopted, and used uniform terms and conditions of sale.

7. Respondents agreed to abandon, and, in pursuance thereof, did abandon the practice of guaranteeing prices against decline. 8. Respondents have exchanged among themselves, directly and indirectly, information relating to current and future prices, terms, or conditions of sale, and freight charges and allowances or deductions which are made therefrom.

9. Respondent manufacturers have agreed to adopt, maintain, and use, and, in pursuance thereof, have adopted, maintained, and used uniform standards or specifications for sizes, weights, and descriptions for twine products for pricing purposes, and have agreed to fix, establish, and maintain, and, in pursuance thereof, have fixed, established, and maintained substantially uniform differentials in prices between twine products of tmiformly varying sizes, weights, and descriptions.

PAR. 5. The effects of the adoption and use by respondents of the practices and activities hereinabove found in connection with their sale of twine products are that:

1. They stifle and eliminate price competition and restrain trade between respondents.

1134 FEDERAL TRADE Commlssion DECISIONS Order 47F. T. C.

·2. They result in substantially uniform differentials in price between products of uniformly varying sizes, weights and descriptions. 3. They result in substantially identical prices, trade discounts, .terms or conditions of sale and freight allowances. P.I\R. 6. The combination, conspiracy, agreements, and understandings of the respondents and the acts, practices, pricing methods, de- ·vices, and policies found herein are unfair and to the prejudice of the ·public·; deprive the public of the benefit of competition; have dangerous tendencies and capacities to unlawfully restrain commerce in t.he said products; have hindered, frustrated: suppressed, and eliminated competition in said products in commerce. CONCLUSION The aforesaid acts and practices of respondents as hereinabove set .out are all to the prejudice of the public and of respondents' competitors and constitute unfair methods of competition in commerce ·within the intc11t and meaning of the Federal Trade Commission Act. ORDER This proceeding having been heard by a trial examiner of the Federal Trade Commission upon the complaint of the Commission .and the answers of respondents, in which answers respondents admit ·Certain of the material allegations of fact set forth in said complaint .and state that they waive all intervening procedure and :further hearing as to said facts; and the said trial examiner having made his findings as to the facts and conclusion that said respondents have violated the provisions of the Federal Trade Commission Act, I t is ordered, That Bibb Manufacturing Co., a corporation, Shuford Mills, Incorporated, a corporation, Oakdale Cotton Mills, a corporation, Cleveland Mill & Power Co., a corporation, January & Wood Co., a corporation, Rockford Manufacturing Co., a corporation, Mount Vernon-Woodberry Mills, Inc., a corporation, Houston Cotton Mills Co., a corporation, Samson Cordage Works, a corporation, and E. Owen Fitzsimons, an individual, Bascom B. Blackwelder, an individual, and Paul B. Halstead, an individual, their officers, representatives, agents, fmd employees, directly or through any corporate or .other device, in connection with the offering for sale, sale, and distribution in commerce, as commerce is defined in the Federal Trade Commission Act, of twine products, including cotton wrapping twines, sewing twines, polished twines, tobacco twines, pea twines, bean twines, hop twines, hose cords, and other cotton twines similarly 1"'1111 BIBB MANUFACTURING CO. ET AL. 1135 112(j Order construed or used for substantially similar purposes as any of the foregoing, but not including carded sales yarn except insofar as same may be manufactured and sold for use as twine, do forthwith cease and desist from entering into, contin11ing, cooperating in, or carrying out any planned common course of action, understanding, mutual agreement, combination, or conspiracy between and among any two or more of said respondents, or between any one or more of said respondents and another or others not parties hereto, to do or perform any of the following :

1. Fixing, establishing, or maintaining prices, discounts, terms, or conditions of sale.

2. Fixing, modifying, or eliminating trade discounts. 3. Curtailing, restricting, or regulating production by reducing the total number of work hours or by any other1· means. 4. Making uniform deductions or allowances from actual shipping costs.

5. Denying purchasers the benefit of market price declines. 6. Exch!\nging, distributing, or relaying between or among the respondents, or between or among any of them, or between or among any of their representatives, agents, or employees, or through any medium or central 1\gency, the following information with respect to the business practices or sales policies of any particular respondent, to wit: Curre11t or future prices, or terms or conditions of sale, or trade discounts, or freight charges or allowances therefrom, or price quotations submitted or to be submitted on any prospective piece of business.

7. Establishing standards or specifications for sizes, weights, and descriptions for twine products when the action taken or information exchanged is for the purpose of fixing or maintaining prices or differe.ntials in prices, or has the tendency to fix or maintain prices or differentials in prices;

P1•ovided howeve1·, That the prohibitions contained in subparagmphs 3 and 6 above shall not be applicable to nor operative against respondent, E. Owen Fitz3imons.

It is ju1·ther 01·de1·ed, That nothing contained herein shall be con· strued to prohibit (a) any seller from independm1tly entering into an agreement with a purchaser as to the price to be charged such purchaser, the terms or conditions of sale, trade discounts, weights, grades, standards, or specifications for twine products, price differentials, and freight charges or allowances, independently determined and offered by either such seller or buyer and independently accepted by either ;.:uel1 seller or buyer in any bona fide transaction, or ( 7>) nny pro- 919611) - 5R--7ii Order --17F. T. C. £pective seller from making, or any prospective purchaser from receiving, an offer of sale in contemplation of a bona fide transaction between such prospective seller and prospective purchaser; P1·ovided, That such agreement or offer of sale is not for the purpose nor has the effect of restraining trade.

It is furthm· ordel·ed, That 110thing contained herein shall be construed to prohibit any of tha respondents from entering into such contracts or agreements relating to the maintenance of resale prices as are permitted under the provisions of the Miller-Tydings Act. It is fn1·tlw1' o1·dm·ed, That nothing contained herein shall be construed to affect the duty, authority, or power of the Commission to reopen this proceeding, as provided for by law, and, as provided for by law to alter, modify, or set aside, in whole or in part, any provisions of this order whenever, in the opinion of the Commission, conditions of fact or of law have so changed as to r equire such action or if the public interest shall so require.

ORDER TO FILJ,; REPOR'l' OF COJ\H,Lil>NCE It is ordered, That respondents, Bibb Manufacturing Co., Shuford Mills, Inc., Oakdale Cotton Mills, Cleveland Mill & Power Co., Jannary & Wood Co., Rockford Manufacturing Co., Mount V ernon-\iVooclberry Mills, Inc., Houston Cotton Mills Co., Samson Cordage Works, E. Owen Fitzsimons, Bascom B. Blackwelder, and Paul B. Halstead 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 the order to cease and desist [as required by said declaratory decision and order of March 27, 1951].

CARTER Products, INC., ET AL. 1137 Syllabus