Alexander Auerbach

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IN THE l\LATTER OF ALEXANDER AUERBACH TRADING IN HIS O\VN NA~lE AND AS FRANK COR\VIN, ETC.

MODIFIED CEASE A:KD DESIST ORDER Docket 502.5. Orlle' -June 2, 1952 Order modifying prior order in the aforesaid matter, April 18, 1944, 38 F. T. 272 at 277, so as to require respondent, his agents, etc., in connection ,Yitl1 the offer, etc., in commerce, of fibrous stock composed ill ,,-hole 01' in part of fibers reclaimed from woolen rags, clippings 01' other wool waste which have been reclaimed and reworked, to cease and desist from making certain misrepresentations in connection with the use of the term "wool" reprocessed wool", and otherwi::;e; and from misbranding ';slloddy" or other wool products, in violation of the Federal Trade Commission and 'Vool Products Labeling Act, as in said order belmv set out. Mr' . R. P. Bellinge1' and 1IIl'. Randolph TV. BHtlich for the Commission.

Mr' . Sarrwel Shapiro of New York City, for respondent. :MODlFIED ORDER TO CEASE AND DESIST . This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission and the answer of respondent, in which answer respondent admitted all the materia..l allegations of fact set forth in the complaint and waived 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 respondent . has violated the provisions of the Federal Trade Commission Act and the provisions of the 'V 001 Products Labeling Act of 1939, on April 18, 1944, issued and subsequently served upon the respondent said findings as to the facts, conclusion and its order to cease and desist.

Thereafter, this matter came on for reconsideration by the Commission up~n a motion by counsel for the Commission s Bureau of Antideceptive Practices to reopen this proceeding for the purpose of alter- 1ng in certain respects the order to cease and desist herein, an affidavit as to certain facts alleged in said motion, a reply opposing said motion by eoUl~sel for respondent and an affidavit by respondent to the matters set out in said reply; and the Commission having reconsidered the matter and being of the opinion that the order to cease anel desist should be so modified, and having granted saiel motion to -reopen and alter he order to cease and desist:

ALEXA..~DER AUERBACH, ETC. 1375 1374 Order 1 t is oi'del'ed That the respondent, Alexander Auerbach, individually and trading in his own name or as Frank Corwin, Frank Corwin Company, David Demerer, or Hanover \V 0'01 Company, or trading l,1nder any other name, his agents, representatives and employees directly or through any corporate or other device, in connection with the offering for sale, sale or distribution in commerce, as "commerce is defined in the Federal Trade Commission Act, of fibrous stock composed in whole or in part of fibers reclaimed from woolen rags, clippings or other wool ,,'aste 'which have been reclaimed and reworked~ do forthwith cease and desist from: (1) Using the terIll "wooF' to designate, describe or otherwise refer to such reclaimed or reworked fibers unless such fibers are "wool " as the term is defined in the \V 001 Products Labeling Act of 1939. (2) Using the term "reprocessed wooF' to designate, describe or othenyise refer to such reclaimed and re\yorked fibers unless such "\V 001fibers are "reprocessed wool ': a~ the term is defined in the Products Labeling Act of 1939.

PJ'o'L'ided, hUlCe'Vel' That nothing herein contained shall be construed as in any way restricting, enlarging or altering the applicability the provisions of the \V 001 Products Labeling ~\ct of 1939 and the Rules and Regulations promulgated thereunder to respondent or his products.

(3) Representing, directly or by implication, that fibrous stock composed in whole or in part of fibers reclaimed from \voolen rags clippings, or other wool \yaste which have been reclaimed and reworked, is or may be described or identified as " wool" under' the provisions of the \V 001 Products Labeling Act of 1939, except to the extent which it contains constituent fibers of "wool" as defined in said exc.ept to theAct, or is or may be described as "reproc.essed wool" extent which it contains constituent fibers of "\'001" as "reprocessed wool" as defined therein.

( 4) j\iisrepresenting or concealing, through the use of fictitious names or otherwise, the identity of respondent or his business. It is lwf'the7' o-r-de1' That the respondent, Alexander Auerbac.h individually and trading in his own name and as Frank Corwin Frank Corwin Company, Frank Cohen, David Demerer, and Hanover \Vool Stock Company, or trading under any other name, and his representatives, agents, and employees, directly or through any corporate or other device, in connection with tl~e introduction or manufacture for introduction into commerce, or the sale, transportation, or distribution in coml11erc.e, as "commerce" is defined in the aforesaid orActs, do forthwith cease and desist from misbranding "shoddy" vV 001 Productsother wool produc.ts " as defined in and subject to the 21384.0-54- 1376 FEDERAL TRADE. COMMISSION .. Decisions Order 48F.

Labeling Act of 1939, which contain, purport to contain, or in any way are represented as containing "wool reprocessed wool " or reused wool " as those terms are defined in said Act, by failing to securely affix to or place on each of such products a stamp, tag, label or other means of identification showing in a clear and conspicuous manner:

(a) The percentage of the total fiber weight of such wool product exclusive of ornamentation not exceeding five percentl1m of said total fiber weight, of (1) wool, (2) reprocessed wool, (3) reused wool, (4) each fiber other than wool where said percentage by weight of such fiber is five percentum or more, and (5) the aggregate of all other fibers.

(b) The maximum percentage of the total weight of such wool product of any non-fibrous loading, filling, or adulterating matter. ( c) The name of the manufacturer of such wool product, or the manufacturer s registered identification number and the name of a seller of such wool product, or the name of one or more persons introducing such wool product into commerce, or engaged in the sale transportation, or distribution thereof in commerce, as "commerce is defined in the Federal Trade Commission Act and the 'V 001 (Products Labeling Act of 1939.

Provided That the foregoing provisions concerning misbranding shall not be construed to prohibit acts permitted by paragraphs (a) and (b) of Section 3 of the vVool Products Labeling Act of 1939; and provided, further that nothing contained in this order shall be construed as limiting any applicable provisions of said Act or the Rules and Regulations promulgated thereunder.

I t is further ordered That the respondent shall, within sixty (60) days after service upon him of this order, file with the Commission a report in writing, setting forth in detail the manner and form in which he has complied with this order.

, BORK MANUFACTURING CO., INC., ET AL. 1377 Order IN THE MA'ITER OF BORK MANUFACTURING CO. INC. AND ALVIN BaRKIN MODIFIED CEASE AND DF.SIST ORDER Docket 5525. Order-J /(ne 2, 1952 Order modifying, in accordance with the final decree entered on February 5, 1952, by the Court of Appeals for the Ninth Circuit in Bork Manufacturing 00. , Inc. et al. v. Federal Trade OOnml-ission, cease and desist order of October 24 1950, 47 F. T. C. 518 at 525 which required respondents to cease and desist from selling, etc., in commerce, punch boards, push cards, or other lottery devices "which are to be used or may be used in the sale or distribution of merchandise to the public by means of a game of chance, gift enterprise, or lottery scheme -so as to delete therefrom the words "or may be used" .

Before Mr. W. W. Sheppard hearing examiner. Mr. J., W. Brookfield, Jr. for the Commission. Mr. Mamw-ell Slote of New York City, for respondents. Battle, Fowler, Neaman, Stokes Kneel and M'i' . Alvin Miller New York City, also represented Alvin Bork. MODIFIED ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission and th~ respondents' substituted answer (no brief having been filed by the respondents) ; and the Commission having made its findings as to the facts and its conclusion that said respondents have violated the provisions of the Federal Trade Commission Act, and having issued an order to cease and desist; and Respondents Bork Manufacturing Co., Inc., a corporation, a.nd Alvin Borkin, individually and as President of such corporation, having filed in the United States Court of Appeals for the Ninth Circuit their petition to review and set aside the order to cease and desist issued herein, and that Court having heard the matter on briefs and oral argument, having fully considered the matter, and having, thereafter, on February 5, 1952, entered its final decree modifying and affirming and enforcing, as modified, the aforesaid order to cease and desist pursuant to its opinion announced on February 5, 1952; and Thereafter, the Commission having reconsidered the matter, and being of the opinion that its order should be modified so as to accord with the aforesaid opinion and final decree of the United States Court. of Appeals for the Ninth Circuit:

Oruer 48 F. T. C.. J t is he1'eby order'eel That the respondents, Bark Manufacturing Co., Inc., a corporation, and Alvin Bork, individually and as President of such corporation, and their officers, agents, representatives and employees, directly or through any corporate or other device, do forthwith cease and desist from:

Selling or distributing in commerce, as "commerce" is defined in the Federal Trade Commission Act, punchboards, puslY cards, or other lottery devices, which are to be used in the sale or distribution of merchandise to the public by means of a game of chance, gift enterprise or lottery That within the period of time allowed by the 1 t is furtherschome.ordered aforesaid final decree of the United States Court of Appeals for the Ninth Circuit, the respondents shall file with the Commission a report in writing setting forth in detail the manner and form in which they have complied with this order.

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THE ELMO CO. , INC. 1379 Syllabus