Malleable Chain Manufacturers Institute et al.

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IN THE :MATTER OF !lALLEABLE CHAIN :MANUF A CTURERS IN STITUTE ETAL.

CO~IPLAINT, SETTLEMENT FINDIKGS, AKII ORDER IN REGARD TO THE AL- LEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26., 1!)H Docket 5657. Complaint, Jla11 18, 1!J49-Decisio' ll, A.IJ1". 10 1952 Where an unincorporated trade association and its eight corporate members, who manufactured over two-thirds of the malleable iron chain produced in the United States- Unlawfully combined and conspired between and among themselves and others to restrain and eliminate competition in the sale and distribution of said product in commerce; and pursuant to said combination and conspiracy- (a) Cooperatively effected agreements to fix and maintain, and did fix and maintain, prices at which various types of malleable iron chain were sold and offered for sale by said member manufacturers; and Where said Institute, in the course of said combination and conspiracy- (b) Functioned through its "Classification Committee Factors Committee and "Committee on List Prices, the activities of which were, respectively, to establish standards and specifications of products, to d~vise factors or multipliers to be applied against average costs for the purpose of determining selling prices, and to propose for use b~' its members list prices for malleable iron chain; and Where each of said member manufacturers, as a part of the aforesaid combination and conspiracy- (c) For pricing purposes maintained two geographic territories or divisionsnamely, the 'Vestern or Pacific Coast Territory and an Eastern Territorywhich were substantially identical for all and within which their trade discounts were substantially identical; with the result that delivered price quotations and prices calculated in accordance with said zone delivered price system were identical for all customers of the same class located in the same geographic zone;

(d) Adopted and used the practice of allowing freight charges to destination on shipments of various types of malleable iron chain in excess of 100 pounds, which aided in the attainment of identical delivered prices; and Where one member, one of the largest manufacturers of malleable iron chain in the United States and a leader in the industry- (e) In many instances announced and published p.rices and changes in prices and in trade discounts on certain items, determined by a formula or system previously agreed upon by all, which were thereafter followed by the other member manufacturers; and Where said corpora te members- (f) Filed and exchang~d among their competitor members, and through the medium of said Institute, current or future prices or conditions of sale, and made bids and quoted prices con~istent with such price information; and (g) Similarly exchanged information which concerned prices charged particular customers and volume of product, ~ales find shipments, where the identity ((;

1164 FEDERAL TRADE COl\1l\fISSION DECISIONS C('mplaint -t8 F. T, C. of the purchasers could he determined from snell information, So as to aid in securing compliance with prices, terms or conditions of sale; and (h) Through the medium of their said Institute collected, compiled, circula ted" and exchanged between or among themselves rates or transportation charge information which was used in compllting prices and price quotations: Held That such combine tion, Ul)(ler~ta ndings, acts, lH'actices, ere"~ under the circumstances set forth, were all and singularly unfair and to the prejudiceof the public and against public policy because of their dangerous tendency unduly to hinder competition in the sale in commerce of said lH'oduct, and create monopoly in themselves therein, and, therefore, constitute unfair methods of COl1111etition in commerce and unfni l' or dec' eptive' a et~ or prac- tices therein. 11/1'. L. E. O'reel, J , and J.lll' . Leslie S. ilIiUel' for the Commission. Covington ill But'ling, of vVashington, D. C., fool' ~1a1leable Chain :Manufacturers Institute, and its officers. Pope ill Balla1'd of Chicago, Ill., for Link-Belt Co., and various other respondents.

i1h,. Ii alker' H. Hltt:son and Portei' , Stanley, Tl'elft"lI r;el' Platt of Columbus, Ohio, for The J effrey ~lallufacturing Co. lVood, TVarnel', Tyn'elZ& Bl'IlCe of :Milwaukee, \Vise., for Chain Belt Co. andBadger~Iail.cable& Nlanllfacturing Co. jill' . John B. N 0 J'dlw It, Jp. of Tiffin, Ohio, for \Vebstel' :Manufaeturing Co., Inc.

linter, Ii arvanag l~ Jl cLallg h tin ill Bond of Peoria., Ill., for Peoria ~lalleable Castings Co.

Sidley, Au8t-in, Burgess S'l7'dth of Chie-ago, 111., for ~lo1ine :Malleable Iron Co.

Bell, Boyd, 11/ ais hall Lloyd of Chie-ago, Ill., for Deere & Co. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and by virtue of the authority yested 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 Conunission 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. The charges as hereinafter set forth are to the effect that respondents have. combined and conspired to lessen competition and to restrain trade and commerce, as "commerce" is defined in the Federal Trade Commi~sion Act, in the sale of malleable iron chain; that said respondents accomplished the c.combination and conspiracy MALLEABLE CHAIN MAlYUF ACTURERS INSTITUTE ET AI... 1165 i 163 Complaint through agreements, understandings and concerted action among themselves and with others; and that each respondent named herein has used and is using trade restraining and unfair methods of competition and unfair or deceptive acts or practices in commerce in fllrtherance of and to make more effective the objectives of said combination and conspiracy.

PAR. 2. (1) ~lalleable Chain ~Ianufacturers Institute, hereinafter referred to as respondent Institute, is an unincorporated trade association with its office and principal place of business at 11 South La Salle Street, Chicago, Illinois. The membership of respondent Institute is made up of eight manufacturers of malleable iron chain hereinafter referred to as corporate respondents. The following is a description of the corporate respondents, including their respective corporate status and their principal office and place of business: (2) Link-Belt Company, an Illinois corporation 307 No. Michigan Avenue, Chicago, Illinois; (3) The Jeffrey :Manufaeturing Company, an Ohio corporation, First Avenue and Fourth Street, Columbus, Ohio; (4) Chain Belt Company, a "'isconsin eorporation 1600 "'est Bruce Street, Milwaukee, 'Visconsin; (5) 'Vebster Manufacturing Company, Inc., an Ohio corporation, Tiffin, Ohio; (6) Badgel Malleable &. M:manufacturing Company, a 'Visconsin corporation, 223 North Chicago Avenue, South :Milwaukee, 'Viseonsin; (7) Peoria :Mal1cable Castings Company, an Illinois corporation at the foot of Alexander Street, Peoria, Illinois; (8) :Moline Malleable Iron Company, an Illinois corporation, St. Charles, Illinois; (9) Deere & Company, an Illinois corporation 230 South Clark Street Chieago, Illinois, operating a wholly owned unincorporated subsidiary, trading as Union ~Ialleable Iron 'Vorks of Deere &. Company, EastMoline, Illinois.

The following individual respondents are. officers of respondent Institute: (10) A. C. Fellinger, Chairman, c/o Link-Belt Company, 519 Holmes Street, Indianapolis, Indiana; (11) L. E. Brill, Vice-Chairman, c/o The Jeffery ~lanufacturing Company, First Avenue and Fourth Street., Columbus, Ohio; (12) ~IaTk Patterson, Secretary, South La Salle Street, Chieago, Illinois; (13) Gorton Fauntleroy, Treasurer, c/o Mo1ine~lalleable Iron Company, St. Charles, Illinois. PAR. 3. The corporate respondents, in the course and eonduet of their business, have regularly sold and shipped malleable iron chain 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 Aet.. Complaint 48 F. T. C.

Respondent Institute, though not engaged in commerce, is and has been cooperating as a eo-conspirator with corporate respondents and individual respondents herein in carrying out the unlawful acts in commerce ,as are herein alleged.

Respondent corporations are the only m.anufacturers in the United States engaged in 'manufacturing malleable iron chain and because of the adoption and use of methods, practices and policies hereinafter described, active and substantial competition in the sale of malleable iron chain has been lessened or eliminated. PAR. 4. Respondents have unlawfully combined and conspired and are now parties to an unlawful combination and conspiracy between and among themselves and others to hinder, frustrate, suppress, restrain and eliminat~, competition in the sale and distribution of malleable iron chain in commerce;

Among the acts, methods, practices and policies engaged in by respondents pursuant to and in furtherance of the combination and conspiracy hereinabove alleged are the following: 1. Respondents have agreed to fix and maintain and have fixed and nlaintained prices at which malleable iron chain is sold and offered for sale by corporate respondents.

2. The aforesaid agreements to fix and maintain prices was effected through the co-operative activities of corporate respondents, among themselves and through the operation of their trade association, respondent Institute, and its officers.

3. Respondent Institute, in the course of the combination and conspiracy alleged, has functioned through its "Classification Committee "Factors Committee" and "Committee on List Prices " the activities of which were to establish standards and specifications of products to devise factors or multipliers to be applied against average costs for the purpose of determining selling prices, and to l)ropose for adoption publication and use by members of respondent Institute list prices for malleable iron chain.

4. Respondents have agreed to fix and maintain and have fixed and maintained substantially- identical trade discounts and identical territorial divisions for the application of trade discounts in the territories designated by respondents as the Eastern Territory, the Rocky ~10untain Territory, and the ",Vestern or Pacific Territory of the United States, each of which has its own schedule of trade discounts and all of which serve the purpose of devising a zone pricing system. 5. Respondents have agreed upon and, pursuant thereto, have placed into use substantially the same terms and conditions of sale, and have MALLEABLE CHAIN MANUFACTURERS INSTITUTE ET AL. 1167 1163 Complaint adopted and used the practice of allowing freight charges to destination on shipments in excess of one hundred (100) pounds, in order to establish identical delivered prices.

6. Respondents, by agreement and understanding, have adopted and used, and now use, a price leadership plan whereby generally respondent Link-Belt Company, one of the dominant manufacturers of malleable iron chains, leads in the announcement and publication of price and trade discount changes in connectioll with the sale of malleable iron chain. Pursuant thereto, such prices and changes in prices and trade discounts as announced and used by said Link-Belt Company have been and are adopted and followed by the other corporate respondents herein.

PAR. 5. The inherent effects of the adoption and use by respondents of the practices and activities hereinabove alleged are that: 1. Price competition is and has been eliminated and trade is and has been restrained between corporate respondents in the sale of malleable iron chain.

2. Identical list prices, trade discounts, territorial divisions for the application of trade discounts, terms and conditions of sale, and delivered prices have resulted.

3. Unreasonable hardships and burdens have been and are placed upon the purchasing public because the public is deprived of the right and opportunity to purchase malleable iron chain from any corporate respondent at prices competitive to, at variance with, and lower than the prices quoted and charged by other corporate respondents. 4. The adoption and use by corporate respondents of the practice of allowing freight charges, the establishment of arbitrary geographical zones, and the use of certain trade discounts applicable to customers within the boundaries of these geographical zones have resulted in purchasers being denied natural advantages and benefits which would have otherwise accrued to them.

PAR. 6. The combination, conspiracy, agreements and understandings of the respondents and the acts, practices, pricing methods, devices and policies herein alleged are unfair and to the prejudice of the pubiic; depriye the public of the benefit of competition; have dangerous tendencies and capacities to unlawfully restrain commerce in said products; have actually hindered, frustrated, suppressed, and eliminated competition in the sale of said products in cOlllil1erce, and constitute unfair methods of competition and unfair and deceptive acts and prnetic.es in commerce within the intent and meaning of Section 5 of the Federal Trade Commission Act.

21 RR40--54---- Findings 48 F. T. C.

CONSENT SETTLEJ\IENT 1 Pursuant to the provisions of the Federal Trade Commission Act the Federal Trade Commission, on j)Iay 18, 1949 , issue.cl and subsequently served its complaint on the respondents named in the caption hereof, charging said respondents with the use of unfair methods of competition and unfair or deceptive acts or practices in commerce in violation of Section 5 of the Federal Trade Commission Act. The respondents desiring that this proceeding be disposed of by the Consent Settlement procedure provided in Rule V of the Commission Rules of Practice, solely for the purpose of this proceeding, any review thereof, and the enforcement of the order consented to, and conditioned upon the Commission s acceptance of the Consent Settlement hereinafter set forth, and in lieu of the answers to saiel complaint heretofore filed and which, upon acceptance by the Commission of this settlement, are. to be withdrawn from the record, hereby: 1. Admit all the j Llrisclictional allegations set forth in the complaint. 2. Consent that the Commission may enter the matters hereinafter set forth as its findings as to the facts, conclusion, and order to cease and desist. It is understood that the respondents, in consenting to the Commission ~s entry of saiel findings as to the facts, conclusion nd order to cease and desist, spel:ifically refrain from admitting or denying that they have engaged in any of the acts 01' practices stated therein to be in violation of law.

3. Agree that this Consent Settlement may be set aside in whole 01' in part under the conditions and in the manner provided in Paragraph (f) of Rule V of the Commission s Rules of Practice. The admitted jurisdictional facts, the statement of the acts and practices which the Commission had reason to believe were unlawful the conclusion based thereon, and the order to cease and desist, all of which the respondents consent may be entered herein in final disposition of this proceeding, are as follows:

FDiDINGS AS TO THE FACTS PARAGRAPH 1. (1) ~Ialleable Chain ~Innufa('turer~ Institute, hereinafter referred to as respondent Institute, is an unincorporated trade 1 The Commission s "Notice" announcing and promulgating the con~ent settlement as publii"hed herewith . followi" :

The consent settlement tendered by the parties in tllis proceeding. a com' of which is served herewith, was accepted b~' the Commission on April 10, 1952, and ordered entered of record as the Commission s findings as to the facts, conclui"ions. and order in disposition of this proceeding.

The time for filing' report of compliance pursuant to the afoJ'ei"nid ClrdE-r runs from the date of service hereof.

MALLEABLE CHAIN MA:.~UFACTURERS INSTITUTE ET AL. 1169 1163 Findings assoeiation with its office and principal place of business at 11 South La Sa,He Street, Chieago, Illinois. The membership of respondent Institute at all times referred to in the complaint was made up of eight manufacturers of malleable iron chain, hereinafter referred to as corporate respondents.

The following is a description of the corporate respondents, ineluding their respective corporate status and their principal office and place of business: (2) Link-Belt Company, an Illinois corporation, 307 N. ~fichigan A venue, Chicago, Illinois; (3) The tT eft'rey :Manufaeturing Company, an Ohio corporation, First Avenue and Fourth Street Columbus, Ohio; (4) Chain Belt Company, a \Viseonsin corporation 1600 "\Vest Bruce Street, l\lilwaukee, 'Visconsin; (5) Webster lVlanufacturing, Inc., an Ohio corporation, Tiffin, Ohio, referred to in the , complaint as 'Vebster l\ianufaeturing Company, Ine.; (6) Badger :Mal1cable & l\1manufacturing Company, a 'Yisconsin corporation, 223 North Chicago Avenue, South l\filwaukee, Wisconsin; (7) Peoria :Malleable Castings Company, an Illinois corporation, at the foot Alexander Street~ Peoria., Illinois; (8) l\Ioline. l\lalleable Iron Company, an Illinois corporation, St. Charles, Illinois; (9) Deere & Company, an Illinois corporation, :Moline, illinois, trading as Union Malleable Iron vVorks of Deere & Company, East :Moline, Illinois. The following individual respondents are now or were during the time. referred to in the complaint officers of respondent Institute: (10) A. C. Fellinger, Chairman, % Link-Belt Company, 519 Holmes Street Indianapolis, Indiana; (11) L. E. Brill, Vice-Chairman, % The Jeffrey l\lanufact.uring Company, First Avenue and Fourth Street, Co- Imnbus, Oho; (12) ~lark Patterson, Secretary, 11 South La Salle Street, Chieago, Illinois; (13) Gorton Fauntleroy, Tresaurer l\foline :Malleable Iron Company, St. Charles, Illinois. PAn. 2. At all times referred to in the eoniplaint the corporate respondents, in the course and conduct. of their business, have regularly sold and shipped malleable iron chain to purchasers at points in the spvera.l States of the United States, and in the District of Columbia Otlle.l' t ban 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.

Respond1ent Instjtnte. though not engaged in comnwrcp: at all times referred to in the complaint eooperated as a co-eonspirator with corporate respondents and individual respondents herein in carrying out tlh'- unlawful acts in commerce as are herein found. PAR. 3. Respondent corporations manufacture substantially in excess of 6(\% of the, malleable iron chain produced in the United States, and because of the adoption and llse of methods, practices, and policies 1170 FEDERAL TRADE COMMISSION DECISIONS. Findings 48 F, T. C.

hereinafter described, active and substantial competition in the sale of malleable iron chain has been lessened or eliminated. PAR. 4. Respondents, at all times referred 10 in the complaint, have unlawfully combined and conspired between and among tllemselves and others to hinder, frustrate, suppress, restrain and eliminate competition in the sale and distribution of malleable iron chain in commerce.

Among the acts, methods, practices and policies engaged in by respondents pursuant to and in furtherance of the combination and conspiracy hereinabove found are the following: 1. Respondents hate agreed to fix and maintain, and have fixed find maintained, prices at which various types of malleable iron ,chain have been sold and offered for sale by corporate respondents. 2. The aforesaid agreements to fix and maintain prices were effected throug"h the cooperative activities of corporate respondents .among themselves and through the operation of their trade association l'espondent Institute, and its officers.

3. Respondent Institute, in the course of the aforesaid combination and conspiracy, has functioned through its "Classification Committee "Factors Committee ancl "Committee on List Prices " the activities of which "\ere to establish standards and specifications of products, to devise factors or multipliers to be applied against average costs for the purpose of determining selling prices, and to propose for adoption publication and use by members of respondent Institute list prices for malleable iron chain.

4. Each of the corporate respondents, for pricing purposes, has maintained two geographic territories or divisions, each of which has had a different schedule of trade discounts and has served the respondent in its maintenance of a zone pricing system. The two geographic territories or divisions so maintained Ly each of the corpol' ate respondents have been a ""\Vestern or Pacific Coast Territory and an Eastern Territory. At all times referred to in the complaint, the ""\Vestern or Pacific Coast Territory of all the eo~'porate respondents except Badger :Malleable &: l\Ianufaetnring Company and Deere & Company, trading as Union :Mallenble Iron ""\Yorks or Deere s~ Company, has been comprised of the States of Oregon, ",Vashington, California, Idaho, Nevada, and Arizona, and the Eastern Territory has been comprised of the remainder of the contiilentfll United States. The ,Yestern or Pacific Coast Territory of respondent Badger lYLllleable & ~l'anufact11ling Company. has been comprised of only the States of Oregon, 1Yashington, and California. However, this respondent has not made sales to customers located in the States of Idaho, Nevada and Arizona. The""\V estern or Pacific Coast Territory of respondent MALLEABLE CHAIN MANUF ACTUHERS INSTITUTE ET AL. 1171 1163 Findings Deere & Comp("n:! , trading as Union ~Ialleable Iron ""\Vor1\:s of Deere & Company, inehlded, in addition to the six States above named, the States of Utah, l\lontana, and New l\lexico. I-Ioweyer, this respondent's sales during the past ten years to customers in its vVestern Territory, outside the States of Oregon, ""\Vashington, and California have not been consequential. In each geographic area where two or more of the respondents have been making quotations and transacting business, their discounts, terms and conditions of sale have been 811 bstantially i(lentical.

From the foregoing, the Commission concludes that the geographic territories or divisions of all the corporate respondents were therefore substantially identical; the trade discounts applicable within each of the aforesaid geographic territories or divisions were also substantially identicnl for all the respondents; prices calculated and determined pursuant to and in accordance with this zone delivered price system resulteel in identical delivered price quotations and prices by all the corporate respondents to all customers of the same class located in the same geographic zone; and the adoption and maintenance the aforesaid zone pricing system constituted a part and parcel of and a supplement to the over-all combination, conspiracy, and planned common course of action by which the price fixing agreements hereinbefore described were effectuated.

5. Each of the corporate,e respondents adopted and used the practice of allowing freight charges to destination on shipments of various types of malleable iron chain in excess of 100 pounds, although some respondents adopted the practice before others adopted it. The Commission concludes that this practice aided the respondents in the attainment of identical delivered prices and constituted a part of and supplement to the, over-all conspiracy hereinabove found. 6. Re~pondent Link- Belt Company was one of the dominant manufacturers of malleable iron chain in the United States from the standpoint of size and was a leader in the industry. Prices and changes in prices and in trade discounts on certain items, determined by a formula 01' system previously agreed upon by all the respondents were, in many instances, announced and published by respondent Link-Belt Company and thereafter adopted, used, and followed by the other corporate respondents manufacturing those items. , 7. Respondents have filed, exchanged, distributed, and relayed among their competitors, named herein as corporate respondents, and through the medium of the respondent Institute, price information showing current or future prices or conditions of sale, and have bid and made price quotations consistent with the price information which 1172 FEDERAL TRADE CO:\E\IISSIO~ DECISIONS Order 48 F. T. C.

was filed, exchanged, distributed, and relayed among corporate respondents and through the medium of respondent Institute. 8. Respondents have filed, exchanged, distributed, and relayed among their competitors, named herein as corporate respondents, and through the medium of the respondent Institute, inforlllarion concerning prices charged particular customers and information concerning volume of production, sales, and shiplnents where the identity of the purchasers could be determined from such infonnatioll so as to aiel in securing compliance ,,'ith announced prices, terms 01' condi-tions of sale. medium of respondent Institute, have 9. Respondents, through the collected, compiled, circulated, and exchanged between or among corporate respondents rctte or transportation charge information \which was used in computing prices and price quotations. PAR. 5. The combination, conspiracy, and the agreemeJlts, understandings, acts, practices, pricing methods, systems, devices, and policies, as hereinbefore found~ have been all Hlld singularly unfair and to the prejudice of the public and against public policy because of their dangerous tendency umluly to hinder competition and create monopoly, and because they have. in fact tended to restrain competition in the sale in commerce of malleable iron chain, and therefore constitute unfair methods of competition andllnfair or deceptive acts or practices in commerce 'within the men.ning of Section 5 of the Federal Trade Commission Act. as amend1p(1. COXCLFSIOX , a 1'8 The acts and practices of respondents, as hereinabove set forth all to the prejudice of the public and constitute unfair me.thods of competition and ~lnfair or deceptive acts or practices in commerce \within the intent and meaning of the Federal Trade Commission Act. ORDER TO CE-\BE "\ ~D DESIST It i8 mode'red That respondents, ~ialleable Chain l\1anufaeturing Institute, an unincorporated trade association, its directors, its oflicers and its me.mbers; the members of its Classification Cu1llmittee, the members of its Factors Committee, the members of its Committee List Prices, or the. members of any other Committee or Committees, however named, designated, or described, the purpose, function, or operation of which is to do any of the acts 01' things which are prohibited by the terms of this order; A. C. Fellinger, L. E. Brill, Mark Patterson, Gorton Fauntleroy, individually or as officers of respondent Institute, and Link-Be.lt Company, The Jeffrey Manufacturing , MALLEABLE Chalk MANUFACTURERS INSTITUTE ET AL. 1173 1163 Order Company, Chain Belt Company, \Vebster :Manufacturing, Inc. , referred to in the complaint as 'Vebster l\Ianufacturing Company, Inc. Badger l\falleable and l\lanufactllring Company, Peoria J\lalleable. Castings CompallY~ :Moline 11alleahle Iron Company, Deere & Company, trading as Union l\Ialleable Iron vVorks of Deere & Company, corporations, and their respective officers, representatives, agents and employees, in, or in connection with, the offering for sale, sale and distributiOli of malleable iron chain in commerce., as "con1111erce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from entering into, continuing, cooperating in, or carrying out any planned common course of action, understanding, agreement combination 01' conspiracy behyeen any two 01' more of said respondents, or between anyone or more of said respondents and another or others not parties hereto, to do or perform any of the following things:

1. Quoting or selling at prices calculated or determined pursuant , or in aceorclance with, any zone delivered price system; or quoting or selling at prices calculated or determined pursuant to, or in accordance with any other system or formula which produees identi~al price quotations or prices, or which prevents purehasers from finding any advantages in price in dealing with one or more of the respondents as against any of the. other respondents;

2. Establishing, fixing, or maintaining prices, discounts, terms or conditions of sale or adhering to any prices, discounts, terms or eonditions of sale;

:3. Formulating, devising, -adopting or using uniform list prices or uniform delivered prices for malleable iron chain; 4. Establishing or maintaining geographical areas or zones wherein pul'~hasers are quoted uniform prices, discounts or terms of sale; 5. Establishing or maintaining price differentials or discount differentials between different geographical areas; 6. Filing, exchanging, distributing, or rel~ying among the corporate respondents, or any of them, or any of their representatives, or through respondent J\lalleable Chain l\lanufaeturers Institute, or through any other medium or eentral agency, price information showing current or future prices or conditions of sale of any particular respondent, or bid or price quotation submitted or to be submitted on any prospective piece or business, other than in particular single transactions involving the sale of malleable iron chain by one ~orporate respondent to another corporate respondent where neither the price to be charged by either respondent to the ultimate customer, nor the identity of such customer, is specified; 1174 FEDERAL TRADE COMMISSION DECISIO:\'~ Order 48 :F'. T. C. 7. Filing, exchanging, distributing or relaying among the corporate respondents, or any of them or any of their representatives, or through respondent :Malleable Chain ~lallufacturers Institute, or through any other medium, central agency or publication, information concerning pric.es charged particular customers or information concerning volume (If production, sales or shipments where the identity of the purchaser can be determined from such information and which.h has the capacity or tendency of aiding in securing compliance with announced prices terms, or conditions of sale;

8. Collecting, compiling, circulating or exchanging between or among respondents or any of the.m rates or transportation charges nsecl or to be used in computing prices or price quotations; or using, directly or indirectly, 'any such information so collected, compiled, or received, in computing price quotations;

9. Adopting, using, or in any way following any price quotations announced by particular respondents, or any of them, whereby quotat~ons are made uniform or matched;

10. Establishing standards or specifications'when the action taken or information exchanged is for the purpose of fixing or maintaining prices or has the tendency to fix or maintain prices or otherwise secure compliance with announced prices, terms, or conditions of sale; 11. Doing or causing any of the things listed in the preceding paragraphs (1) to (10) and the doing of which is forbidden in this order through action of respondent :Malleable Chain ~:fannfactl1rers Institute, or any subdivision or committee of said Institute, or any other individual, corporation or organization;

Provided, however, that nothing contained in this order shall be construed as prohibiting the establishment or maintenance of any lawful bona fide agreements, discussions, or other action solely between ally corporate respondent and its directors, officers and employees, or between the officers, directors, agents or employees of any corporate respondent and relating solely to the carrying on of that corporation sale and separate business, or between any corporate respondent and any of its wholly-owned subsidiaries, when not for the purpose or with the effect of restraining trade and 'when for the purpose and effect of promoting competition.

It is f'U.rther 01'del'ecl That the respondents shall, within sixty (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.

MALLEABLE CHAIN MANUFACTURERS. INSTITUTE ET AL. 1175 1163 Order ~L\.LLEABLE CHAIN l\:L1.NUFACTURERS INSTITUTE (sgd) COVINGTON AND BURLING By (sgd) J. HARRY COVINGTON Title: 0 ou1u3el.

Date: February 28, 1952.

A. C. FELLINGER ( sgcl ) COVINGTON AND BURLING By (sgc1) J. HARRY COVINGTON Title: 0 ounsel.

Date: February 28, 1952.

L. E. BRILL (sg-d) COYINGTON AND BURLING By (sgd) J, HARRY COVINGTON Title: Counsel.

Date: February 28, 1952.

,VEBSTER l\1ANUFACURING, INC.

(sgd) J. B. NORDIIOLT~ JR.

Title: P7' es. and 0 O'U11.sel. Date: Feb. 21, 1952. (sgd) Badger l\lalleable &; l\lanufacturing Company, BADGER J\fALLEABLE&: l\lanufacturing COMPANY (sgd) "VOOD, ,VARNER, TYRRELL &: BRUCE By (sgcl) , RICHARD H. TYRELL Title: Counsel.

Date: Feb. 14. 1952.

PEORIA l\lALLEABLE CASTINGS COl\:IP ANY By: (sgcl) J. C. SCULLY, JR.

Title: 0 ou'J1.CJel.

Date: Feb. 1D, 1D52.

(sgd) jIoJine l\1alleable Iron Company, :MOLINE l\1ALLEABLE IRON COl\IPANY (sgc1) SIDLEY, AUSTIN, BUIWESS & Sl\IITI-I By (sgc1) Al\IES E. S. B.-\Imr Title: 0 onnsel.

Date: February 15, 1952.

(sgd) Deere, &: Company, Trading as Union 1\1a11eab1e Iron 'Yorks of Deere &: Company, DEERE &:' COl\IPANY, TRADING AS UNION r.L"I.LLEABLE IRON 'V ORKS OF DEEHE &; COlHP ANY ( sgc1 ) BELL, BOYD, l\IARSI-IALL 8.; LLOYD By (sgd) GLEN A. LLOYD Title: Counsel.

Date: February 16 ~ If)52.

Order 48 F. T. C.

MARK PATTERSON (sgd) COVINGTON AND BURLING By (sgd) J. HARRY COVINGTON Title: Counsel.

Date: February 28, 1952.

GORTON FAUNTLEROY (sgd) COVINGTON AND BURLING By (sgd) J. HARRY COVINGTON Title: Counsel.

Date: February 28, 1952.

LINK-BELT COMPANY By (sgd) POPE &; BALLARD Title: Counsel.

Date: February 11, 1952.

THE JEFFREY :J\'UNUFACTURING COlvIPANY By (sgd) HARKER H. HrrTsON Title: Legal Ooumel.

Date: 2/25/52.

(sgd) Chain Belt Company, CHAIN BELT COMPANY ( sgd) "\tV OOD, 1V ARNER, TYRRELL &. BRUCE By (sgd) RICHARD H. TYRRELL Title: Counsel.

Date: Feb. 14, 1952.

. The foregoing Consent Settlement is hereby accepted by the Federal Trade Commission and ordered entered of record this 10th day of April, 1952.

DEJAI' STORES, INC. 1177 Syllabus