Czecho-Slovak Crystal Importers Association, Inc.

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In THe Marrer or CZECHO-SLOVAK CRYSTAL IMPORTERS ASSOCIATION, INC. (IMPORTED CRYSTAL ASSOCIATION, INC.) ET AL. COMPLAINT, SETTLEMENT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED: VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 5988. Complaint, May 12, 1952—Decision, June 25, 1958 While a small percentage of the lighting glass products made for use in the United States is presently manufactured in Japan, Germany, Austria and. other foreign countries as well as in the United States, such glass products have generally been deemed to be of inferior quality to Czechoslovakian. lighting glass products and have not enjoyed the acceptance in the United States accorded to said Czechoslovakian products. Where twelve corporations, two partnerships and an individual, which were: engaged in importing “lighting glass products”—i. e., glass crystals, prisms, drops, chandeliers, and related products—from Czechoslovakia and other foreign countries for sale and distribution throughout the United States. and for use in the manufacture of lighting fixtures for such sale and distribution; would have been in competition with one another, except for the facts below set forth, and were in competition with their customers and with importers who were not members of their association; and for a number of years theretofore imported about 90% of the volume of lighting glass products made in Czechoslovakia for sale and distribution in the United States and thereby dominated and controlled the lighting glass products. industry in this country; together with their association, incorporated in 1946 to “advance the business of importers of crystal chandeliers and of all chandelier parts from Czechoslovakia, and to deal with problems concerning or affecting them and of allied and kindred businesses; * * * —3 1 8 2 0 0 487 1974 1326 366 -1 4 1 8 2 1 0 487 1974 1324 31 -1 5 1 8 2 1 1 487 1974 188 31 91.235802 Cooperated,5 1 8 2 1 2 696 1975 158 30 95.913193 combined,5 1 8 2 1 3 874 1976 160 29 95.913193 conspired,5 1 8 2 1 4 1055 1977 114 28 96.462189 agreed,5 1 8 2 1 5 1189 1977 58 23 96.566086 ands 1 8 2 1 6 1267 1977 118 24 96.958321 entered5 1 8 2 1 7 1404 1976 62 24 96.537048 into5 1 8 2 1 8 1486 1976 58 23 96.537048 ands 1 8 2 1 9 1563 1975 116 25 96.444778 carried5 1 8 2 1 10 1698 1977 50 23 96.592697 outs 1 8 2 1 11 1767 1980 44 19 70.051308 an4 1 8 2 2 0 558 2018 1255 29 -1 5 1 8 2 2 1 558 2018 233 29 96.544945 understandings 1 8 2 2 2 811 2018 57 23 96.999405 ands 1 8 2 2 3 889 2019 126 28 96.209175 planned5 1 8 2 2 4 1035 2024 129 19 96.260933 common5 1 8 2 2 5 1184 2024 102 19 96.496712 courses 1 8 2 2 6 1306 2018 31 24 96.749420 of5 1 8 2 2 7 1356 2018 98 24 96.389763 actions 1 8 2 2 8 1472 2018 130 24 95.553169 between5 1 8 2 2 9 1622 2018 59 23 96.443329 ands 1 8 2 2 10 1702 2022 111 24 85.856621 among’4 1 8 2 3 0 559 2059 1247 30 -1 5 1 8 2 3 1 559 2059 173 25 96.526985 themselves5 1 8 2 3 2 753 2060 58 24 96.515541 ands 1 8 2 3 3 831 2061 99 23 96.308189 others5 1 8 2 3 4 956 2060 44 29 96.531830 (1)5 1 8 2 3 5 1027 2061 28 23 96.674065 to5 1 8 2 3 6 1075 2061 121 28 96.160080 prevents 1 8 2 3 7 1215 2060 163 29 96.684608 competing5 1 8 2 3 8 1396 2060 175 29 96.416183 purchasers5 1 8 2 3 9 1591 2059 77 24 93.256866 from5 1 8 2 3 10 1688 2059 118 29 91.667755 import-4 1 8 2 4 0 557 2100 1253 31 -1 5 1 8 2 4 1 557 2101 51 29 96.808922 ings 1 8 2 4 2 626 2101 125 30 96.594101 lighting5 1 8 2 4 3 769 2102 79 29 96.782043 glass5 1 8 2 4 4 867 2102 138 29 96.300056 products5 1 8 2 4 5 1024 2102 124 29 96.554504 directly5 1 8 2 4 6 1165 2101 77 24 96.780663 from5 1 8 2 4 7 1261 2102 49 24 96.790054 thes 1 8 2 4 8 1329 2101 159 29 96.200050 suppliers;5 1 8 2 4 9 1516 2100 43 30 96.569168 (2)5 1 8 2 4 10 1584 2102 29 23 96.418732 to5 1 8 2 4 11 1630 2100 40 25 96.418732 fix5 1 8 2 4 12 1689 2100 57 25 93.217644 ands 1 8 2 4 13 1765 2106 45 19 92.192863 es-4 1 8 2 5 0 559 2142 1252 31 -1 5 1 8 2 5 1 559 2143 109 24 96.783508 tablish5 1 8 2 5 2 690 2144 102 29 95.875153 prices,5 1 8 2 5 3 814 2145 98 27 96.365776 terms,5 1 8 2 5 4 935 2144 58 23 96.845634 ands 1 8 2 5 5 1014 2144 164 23 96.710922 conditions5 1 8 2 5 6 1199 2144 32 23 96.869873 of5 1 8 2 5 7 1252 2143 143 29 96.351601 purchases 1 8 2 5 8 1417 2143 31 24 96.267433 in5 1 8 2 5 9 1468 2142 171 25 96.257950 connections 1 8 2 5 10 1660 2142 73 24 96.277893 with5 1 8 2 5 11 1756 2142 55 25 96.434883 thea 1 8 2 6 0 559 2184 1246 31 -1 5 1 8 2 6 1 559 2185 190 30 96.140228 importations 1 8 2 6 2 771 2184 32 25 96.913704 of5 1 8 2 6 3 824 2185 70 24 96.697617 such5 1 8 2 6 4 916 2185 154 29 96.485077 products;5 1 8 2 6 5 1094 2185 58 24 95.545807 ands 1 8 2 6 6 1180 2184 44 30 85.942787 (3)5 1 8 2 6 7 1252 2186 29 23 96.984467 to5 1 8 2 6 8 1303 2184 178 29 96.131950 monopolize5 1 8 2 6 9 1503 2184 106 24 95.922089 within5 1 8 2 6 10 1631 2184 174 24 96.777328 themselves4 1 8 2 7 0 559 2226 1251 31 -1 5 1 8 2 7 1 559 2227 49 25 96.378723 thes 1 8 2 7 2 627 2227 114 30 96.469460 import,5 1 8 2 7 3 762 2227 62 24 96.282890 sales 1 8 2 7 4 842 2227 58 24 96.597595 ands 1 8 2 7 5 919 2227 191 24 96.837372 distributions 1 8 2 7 6 1128 2227 32 24 96.434807 of5 1 8 2 7 7 1177 2226 65 25 96.415916 said5 1 8 2 7 8 1261 2226 138 30 96.423309 products5 1 8 2 7 9 1417 2226 31 23 96.732452 in5 1 8 2 7 10 1465 2232 174 22 96.390625 commerce;5 1 8 2 7 11 1660 2226 58 23 95.714020 ands 1 8 2 7 12 1736 2231 33 18 95.714020 as5 1 8 2 7 13 1788 2230 22 19 95.889000 4.4 1 8 2 8 0 558 2267 1255 32 -1 5 1 8 2 8 1 558 2271 68 28 96.549652 parts 1 8 2 8 2 645 2269 58 24 96.258667 ands 1 8 2 8 3 722 2269 98 30 96.258667 parcels 1 8 2 8 4 839 2268 32 25 96.366692 of5 1 8 2 8 5 889 2269 65 24 95.735077 said5 1 8 2 8 6 974 2269 97 24 96.440720 actions 1 8 2 8 7 1090 2269 58 24 95.026009 ands 1 8 2 8 8 1166 2268 129 30 95.026009 practices 1 8 2 8 9 1312 2268 176 28 96.326851 unlawfully5 1 8 2 8 10 1506 2268 29 24 96.948128 to5 1 8 2 8 11 1555 2268 118 28 93.302391 thwart,5 1 8 2 8 12 1693 2267 120 29 84.901505 hinder,.4 1 8 2 9 0 558 2310 632 30 -1 5 1 8 2 9 1 558 2311 154 29 95.557503 frustrate,5 1 8 2 9 2 733 2311 58 24 96.117027 ands 1 8 2 9 3 811 2316 136 24 91.135399 suppress5 1 8 2 9 4 967 2310 223 30 91.135399 competition—3 1 8 3 0 0 494 2351 1319 156 -1 4 1 8 3 1 0 494 2351 1316 32 -1 5 1 8 3 1 1 494 2353 47 30 72.231239 (a)5 1 8 3 1 2 565 2353 166 24 96.559723 Restricted5 1 8 3 1 3 756 2352 50 25 96.923233 thes 1 8 3 1 4 830 2352 194 30 96.448090 memberships 1 8 3 1 5 1048 2352 31 25 96.226425 of5 1 8 3 1 6 1102 2352 78 25 96.432747 theirs 1 8 3 1 7 1203 2352 179 25 96.257660 associations 1 8 3 1 8 1405 2351 58 25 96.257660 ands 1 8 3 1 9 1486 2351 138 24 96.719711 obtained5 1 8 3 1 10 1647 2356 39 18 93.031601 an5 1 8 3 1 11 1708 2355 102 25 89.392044 agree-4 1 8 3 2 0 558 2392 1255 31 -1 5 1 8 3 2 1 558 2396 80 24 96.011192 ments 1 8 3 2 2 656 2395 77 24 96.687851 from5 1 8 3 2 3 753 2395 50 24 96.519058 thes 1 8 3 2 4 823 2394 264 25 96.468765 Czechoslovakian5 1 8 3 2 5 1105 2394 79 29 96.215225 glass5 1 8 3 2 6 1202 2394 108 29 96.215225 imports 1 8 3 2 7 1328 2393 176 25 96.377831 authorities5 1 8 3 2 8 1522 2392 136 29 96.437340 whereby5 1 8 3 2 9 1677 2393 49 23 96.790688 thes 1 8 3 2 10 1744 2392 69 24 64.885544 sale4 1 8 3 3 0 559 2433 1248 33 -1 5 1 8 3 3 1 559 2436 31 25 96.087830 of5 1 8 3 3 2 608 2437 65 24 95.938225 said5 1 8 3 3 3 691 2436 138 30 95.938225 products5 1 8 3 3 4 847 2442 61 18 96.368729 was5 1 8 3 3 5 927 2436 155 24 96.364029 restricted5 1 8 3 3 6 1100 2437 30 23 96.932610 to5 1 8 3 3 7 1147 2436 142 24 96.488029 members5 1 8 3 3 8 1307 2435 32 24 96.352821 of5 1 8 3 3 9 1355 2434 77 25 96.147598 theirs 1 8 3 3 10 1450 2434 178 24 96.495239 associations 1 8 3 3 11 1647 2434 58 24 95.630089 ands 1 8 3 3 12 1723 2433 84 25 96.653442 other4 1 8 3 4 0 559 2477 498 30 -1 5 1 8 3 4 1 559 2478 155 29 96.040283 importers5 1 8 3 4 2 736 2477 147 29 96.726898 approved5 1 8 3 4 3 904 2477 37 29 96.997398 by5 1 8 3 4 4 964 2477 93 29 96.707123 them;3 1 8 4 0 0 494 2516 1319 116 -1 4 1 8 4 1 0 494 2516 1317 34 -1 5 1 8 4 1 1 494 2520 46 30 89.485733 (b)5 1 8 4 1 2 565 2519 115 26 96.544296 Caused5 1 8 4 1 3 700 2520 66 24 96.959038 said5 1 8 4 1 4 787 2518 265 25 95.248192 Czechoslovakian5 1 8 4 1 5 1072 2518 79 30 96.233971 glass5 1 8 4 1 6 1171 2519 104 28 96.517296 exports 1 8 4 1 7 1295 2518 176 24 96.214088 authorities5 1 8 4 1 8 1491 2518 29 24 96.603355 to5 1 8 4 1 9 1540 2516 100 29 96.603355 enjoins 1 8 4 1 10 1660 2517 79 29 93.288078 glass5 1 8 4 1 11 1759 2523 52 18 89.043419 ex-4 1 8 4 2 0 558 2558 1255 33 -1 5 1 8 4 2 1 558 2563 114 28 96.941116 porters5 1 8 4 2 2 691 2561 77 25 96.708160 from5 1 8 4 2 3 787 2561 105 29 96.182610 selling5 1 8 4 2 4 910 2561 71 24 96.182610 such5 1 8 4 2 5 1000 2560 138 30 96.101929 products5 1 8 4 2 6 1156 2561 30 24 96.403076 to5 1 8 4 2 7 1204 2560 185 24 96.065300 nonmembers 1 8 4 2 8 1407 2560 155 28 96.065300 importers5 1 8 4 2 9 1581 2559 31 24 96.329239 in5 1 8 4 2 10 1630 2559 49 25 96.877724 thes 1 8 4 2 11 1697 2558 116 25 95.669746 United.4 1 8 4 3 0 561 2603 113 29 -1 5 1 8 4 3 1 561 2603 113 29 82.083511 States5 1 8 4 3 2 660 2599 18 40 82.083511 ; 1476 ' FEDERAL TRADE COMMISSION DECISIONS Syllabus 49 EF. T.C.

(c) Agreed with the Czechoslovak Glass Export Co., Ltd., that that export agency would lower its prices to enable said members to meet the competition of such products of other origin; that the sale of the Czechoslovakian products would be made exclusively to the members and other importers they approved; and that respondents would confine their purchases of such lighting glass products to said export agency to the exclusion of other sources of supply;

(d@) Agreed among themselves and with their source of supply in Czechoslovakia that the purchase price paid by any member of any lighting glass product would be identical with that paid by any other members for the same product; and (e) Organized and used their said association as an unlawful medium of effectuating and carrying out such agreement, understanding, and practices; and Where their aforesaid association— (f) Received from the Czechoslovakian government officials their current list of United States lighting glass product importers and also numerous inquiries to such officials from non-member importers in the United States in regard to the purchase of lighting glass products; and advised said _ officials as to whether or not said non-member importers should be allowed to purchase directly from Czechoslovakia; and (g) Kept said government officials apprised of its membership and of competitive activities in the industry; and Where the aforesaid members during the same period of time— : (l) Refrained from purchasing lighting glass products from sources outside of Czechoslovakia; and Where respondents, through the terms of an agreement entered into on or about August 29, 1949, with the Czechoslovak Glass Export Co. Ltd.— (4) Further implemented and insured a successful continuation of their unlawful cooperation, planned common course of action, ete. through the terms of said agreement whereby the association members were supplied with new prices and price lists, sales were limited to members with certain approved exceptions, members undertook to purchase exclusively in Czechoslovakia, competitive orders were to be cancelled if possible, and said Export Company undertook to quote competitive prices against all other suppliers, proof of whose lower prices was to be made available by the association; and Where said respondents and said Glass Export Company, notwithstanding latter’s notice in April 1950 that the agreement would not be renewed— (j) Continued to adhere to its terms and conditions until on or about October 1951 when circumstances beyond their control precluded respondents’ further importation of lighting glass products from said country; Capacity, tendency, and effect of which agreement, understanding, etc., and of the acts and practices done pursuant thereto were to substantially lessen, restrain, and eliminate competition among and between said respondent members and between them and others in the importation of lighting glass products and in the sale and distribution thereof and of lighting fixtures IMPORTED CRYSTAL ASSN., INC. ET AL. 1477 1475 ; Complaint manufactured therefrom in commerce; empower and enable respondent members to control the market for said products and fixtures; enhance prices paid for said products and fixtures by competitors and consumers; and to tend dangerously to create a monopoly in respondent members in the importation of lighting glass products and in the sale and distribution of such products and fixtures in commerce:

Held, That such acts and practices were all to the injury and prejudice of the public and competitors, and constituted unfair methods of competition in commerce. - Before Mr. James A. Purcell, hearing examiner. Mr, Floyd O. Collins and Mr. J, Wallace Adair for the Commission. Davis & Heffner, of New York City, for respondents generally. Mr, Daniel Schnabel, of Beverly Hills, Calif., for Lewis J. Smith. Complaint Pursuant to the provisions of the Federal Trade Commission Act, 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 Section 5 of the Federal Trade Commission Act (U.S. C. Title 15, Section 45), 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 in that respect as follows:

Paracrapy 1. The respondent, Czecho-Slovak Crystal Importers Association, Inc., hereinafter referred to as respondent “Association”, is a New York corporation, incorporated in 1946, with its principal office and place of business presently located at 48 West 37th Street, New York, New York, which is the business office of its Secretary, Irvin G. Nelson. The membership of the respondent Association is composed of corporations and individuals trading as partnerships or sole proprieters who are generally engaged in the business of importing glass crystals, prisms, drops, chandeliers and other similar or related products (sometimes hereinafter referred to as “lighting glass products”) for sale and distribution in commerce and for use in the construction of lighting fixtures for sale and distribution in commerce among and between the various states of the United States. The constitution and by-laws of the respondent Association declares its purpose to be:

ARTICLE II-——-PURPOSES Section 1. The general purposes of the Association shall be to foster, encourage and generally to advance the business of importers of erystal chandeliers Complaint 49 F.T.C.

and of all chandelier parts from Czechoslovakia, and to deal with problems concerning or affecting them and of allied and kindred businesses; to secure freedom from unjust and unlawful exactions; to unite for appropriate study and action, the said importers and allied or kindred businesses who are interested in the tariff law and in the administration of the Customs in general; to secure for said businesses the fair and administrative treatment to which they are entitled and to discourage ill-considered tariff legislation which might result not only in unfair discrimination in the United States but also in adverse effects on our international trade in general; to reform abuses relating to said businesses, and to promote and encourage sound, ethical and progressive business methods among them; to collect and disseminate accurate and reliable information relating to matters of said businesses and also the standing of persons and corporations engaged therein; to procure uniformity and certainty of practices and usages of said businesses; to settle differences between its members and those with whom they do business; to insure united action wherever else the interests of its members are concerned; and to do all such things as may be neces- ‘sary and proper for the carrying out of the foregoing purposes. ARTICLE IV—-MEMBERSHIP, DUES, VOTING, COMPLAINTS Section 1. Any American citizen or a partnership, or a corporation, consisting of American citizens, or of whom American citizens shall be controlling or managing members or directors, who import merchandise into the United States or ‘its territories, or who deal in imported merchandise or who are interested in the tariff laws, shall be eligible to membership in the Association. Par. 2. The following is a description of the corporate and individual respondents (sometimes hereinafter referred to as “respondent members”), all of whom are members of respondent Association: Bohemia Import Co., Inc., isa New York corporation, incorporated in 1946, with its principal office and place of business located at 39 West 23rd Street, New York, New York.

Crystal Mart, Incorporated, is a New York corporation, incorporated in 1946, with its principal office and place of business located at 31 East 27th Street, New York, New York. Elite Glass Co., Inc., is a New York corporation, incorporated in 1926, with its principal office and place of business located at 111 West 22nd Street, New York, New York.

Nelson Bead Co., Inc., is a New York corporation, incorporated in 1946, with its principal office and place of business located at 48 West 3 37th Street, New York, New York. Weiss & Biheller Merchandise Corporation is a New York corporation, incorporated in 1934, with its principal office and place of business located at 584 Bro oadway, New York, New York Lightolier Co., Inc., is a New York corporation, incorporated in 1904, with its principal office and place of business located at 346 ‘Claremont Avenue, Jersey City, New Jersey. IMPORTED CRYSTAL ASSN., INC. ET AL. 1479 1475 Complaint Rialto Import Corporation is a New York corporation, incorporated in 1925, with its principal office and place of business located at 185 West 44th Street, New York, New York. Gregory Sales Company, Inc., is a New York corporation, incorporated in 1938, with its principal office and place of business located at 232 East 59th Street, New York, New York. Charles J. Winston & Co., Inc., is a New York corporation, incorporated in 1940, with its principal office and place of business located at 515 Madison Avenue, New York, New York. Lawson Crystal, Inc., is a Missouri corporation, incorporated in 1947, with its principal office and place of business located at 4453a Olive Street, St. Louis, Missouri.

Sol Horn, Inc., is a New York corporation, incorporated in 1946, with its principal office and place of business located at 236 Fifth Avenue, New York, New York.

Warren Kessler, Inc., is a New York corporation, incorporated in 1929, with its principal office and place of business located at 220 Fifth Avenue, New York, New York.

Isaac Albert, Louis Albert, and Charles Albert are individuals and co-partners, trading and doing business under the partnership name and style of I. Albert Co., with their principal office and place of business located at 232 East 59th Street, New York, New York. Sol Goodman and Edith Goodman are individuals and copartners, trading and doing business under the partnership name and style of Goody Lamp Co., with their principal office and place of business located at 40 West 27th Street, New York, New York. Lewis J. Smith is an individual trading and doing business under the firm name and style of Crystal Import Co., with his principal office and place of business located at 7201 Melrose Avenue, Los Angeles, California.

Par. 8. The respondent Association is not engaged in the business of importing, selling; or distributing lighting glass products as herein described, but said respondent has aided, abetted, guided, and ‘assisted its respondent members in the performance of unlawful acts and practices hereinafter alleged.

Par. 4. The respondent members are now, and since October 1946 have been, engaged in the business of importing lighting glass products from Czechoslovakia and other foreign countries for sale and distribution throughout the United States and for use in the manufacture of lighting fixtures for sale and distribution throughout the United States. Said respondents cause such products, when sold, to be shipped to purchasers thereof, many of whom are located in the Complaint 49 F.T.C, several states of the United States other than the states of origin of said shipments and in the District of Columbia; and there has. been, and now is, a constant current and course of trade in said lighting glass products and lighting fixtures in commerce, as “commerce” is defined in the Federal Trade Commission Act, among and between the several states of the United States and in the District of Columbia. .

Par. 5. Except for the unlawful cooperation, planned common course of action, understanding, agreement, combination and conspiracy hereinafter alleged, respondent members would be in competition with one another in the import of lighting glass products. Said respondent members have been, and are now, in competition with others engaged in the import of lighting glass products. Said respondents are also in competition with their customers and with importers who are not members of respondent Association in the offering for sale, sale and distribution of lighting glass products and. lighting fixtures manufactured from such products throughout the. several states of the United States and in the District of Columbia. Par. 6. Prior to World War II, and for several years thereafter,. substantially all of the lighting glass products used in the United States in the manufacture of chandeliers and other similar or related lighting fixtures were obtainable only from Czechoslovakia. A small percentage of the lighting glass products manufactured for use in the United States is presently manufactured in J apan, Germany, Austria, and other foreign countries as well as in the United States. Such glass products have generally been deemed to be of inferior quality to Czechoslovakian lighting glass products and have not enjoyed the acceptance in the United States accorded to said Czechoslovakian glass products. Respondent members have for several years: past imported, and still do import, approximately 90 percent of the volume of lighting glass products manufactured in Czechoslovakia for sale and distribution in the United States, and by reason of this fact possess the ability and the means of dominating and controlling, and have actually, for several years past, dominated and controlled the lighting glass glass products industry in the United States. Par. 7. For more than five years last past, the respondent members, together with the respondent Association, have been and are engaged in unfair methods of competition and unfair acts and practices in commerce, as “commerce” is defined in the Federal Trade Commission Act, in that they have acted and are still acting unlawfully to thwart, hinder, frustrate and suppress competition by cooperating, combining, conspiring, agreeing and entering into and car- IMPORTED CRYSTAL ASSN., INC. ET AL. 1481 “1475 Complaint rying out an understanding and planned common course of action between and among themselves and others to prevent competing purchasers from importing lighting glass products directly from the suppliers thereof; to fix and establish prices, terms and conditions of purchase in connection with the purchase and importation of lighting glass products; and to monopolize within themselves the import, sale, and distribution of said products in said commerce. As a part and parcel thereof they have committed acts and promulgated and used policies, methods and practices hereinafter more particularly set forth in subparagraphs 1 to 7, inclusive, of this Paragraph 7: 1. Respondents restricted the membership of respondent Association and obtained an agreement or understanding from the Czechoslovakian glass export authorities, which were in control of the shipment of lighting glass products from Czechoslovakia, whereby the sale of said lighting glass products was restricted to respondent members and other importers approved by respondents. 2. Respondents caused the Czechoslovakian glass export authorities to enjoin glass exporters from selling lighting glass products to importers in the United States who were not members of respondent Association.

3. Respondents agreed with Czechoslovak Glass Export Co., Ltd. that that export agency would lower its price to enable respondent members to meet the competition of lighting glass products of other origin; that the sale of Czechoslovakian lighting glass products would be made exclusively to the respondent members and other importers approved by respondents; and that respondents would confine their purchases of such lighting glass products to the said export sigency to the exclusion of other sources of supply. 4. Respondents agreed among themselves and with their source of supply in Czechoslovakia that the purchase price paid by any respondent member for any lighting glass product would be identical to that paid by any other respondent member for the same product. 5. Respondents organized and used, and are now using, respondent Association as an unlawful medium of effectuating and carrying out the agreement, understanding, and practices herein alleged. 6. In compliance with the aforesaid cooperation and planned common course of action, understanding or agreement, the Czechoslovakian government officials transmitted its current list of United States lighting glass product importers to the respondent Association for its approval. Since 1946, said Czechoslovakian officials have received numerous inquiries from importers located in the United States who were not members of respondent Association in regard to the pur- Complaint 49 F.T.C.

chase of lighting glass products. These inquiries have been consistently referred to respondent Association which, acting through its members, have advised said Czechoslovakian officials as to whether or not said importers should be allowed to purchase said products directly from Czechoslovakia. Respondent Association has also kept the Czechoslovakian government officials apprised of its membership and of competitive activities in the industry. During the same period of time respondent members have refrained from purchasing lighting glass products from sources outside of Czechoslovakia. _ 7 Respondents further implemented and insured a successful continuation of the unlawful cooperation, planned common course of action, combination and conspiracy, through an agreement entered into on or about August 29, 1949, with the Czechoslovak Glass Export Co. Ltd., in the following terms:

“(1) New prices of Chandelier Trimmings will be put into force as of August Ist 1949 as per the Price List attached. “(2) New Price-Lists for Chandeliers are to be in force as of August 1st and the members of the Association will receive their new prices promptly. ‘ “(3) The sales of Trimmings and complete Crystal Chandeliers Crystal Breakets, Baskets and Ceiling Pieces will be sold only to the members of the Association and in addition to the following firms: Halcolite, Brooklyn, Crystal Import, Los Angeles, Lawson, St. Louis, Sol Horn Inc., New York 1.

“(4) As stated before, this selling policy will concern complete Crystal Chandeliers, Crystal Breakets, Baskets and Ceiling pieces. Regarding Chandeliers Glass Parts for the purpose of making Chandeliers except Chandelier Trimmings it has been agreed that the selling policy for these items will be discussed and organized at a later date. “(5) Mr. Sanford on behalf of the Association agreed we supply Chandelier Trimmings a. Crystal Chandeliers to the following clients: Halcolite, Brooklyn, Crystal Import, Los Angeles, Lawson, St. Louis, Sol Horn, Inc. New York 1.

“(6) All members of the Association as well as the clients as per Par. (5) will buy Chandelier Trimmings and Crystal Chandeliers exclusively in Czechoslovakia. All orders placed with our competitors IMPORTED CRYSTAL ASSN., INC. ET AL. 1483 1475 Complaint prior to this agreement are to be cancelled if possible and on the other side all orders of non-members of the Association accepted and coufirmed by the Czechoslovak Glass Export Co. Ltd. prior to this agreement will be delivered under the old conditions and prices. Such orders are not in excess of $10,000.00 and will be shipped before October Ist 1949.

“(7) Czechoslovak Glass Export Co. Ltd. is at all times prepared to quote competitive prices against all other suppliers. The Importers Association agree to make available proof of lower prices being quoted by competitors and engage themselves to cooperate closely in this regards with Centroglass.

“(8) The Glassexport expects in view of the lower prices and of this agreement that the members will support them promptly with substantial orders.

“(9) This agreement will be in force until July 1st 1950 and will be renewed automatically for a further year unless either party has given two months written notice that they desire to renegotiate a new contract.” :

At a later date the last three named firms in paragraph three of said agreement were admitted into membership in respondent Association.

Nothwithstanding the fact that Czechoslovak Glass Export Co., Ltd. in April 1950 notified the respondents that the foregoing agreement would not be renewed respondents and Czechoslovak Glass: Export Co. 4 1 3 6 4 0 466 1820 519 33 -1 5 1 3 6 4 1 466 1820 79 33 96.318024 Ltd.5 1 3 6 4 2 557 1820 72 33 86.142181 still5 1 3 6 4 3 640 1820 125 33 96.792114 adheres 1 3 6 4 4 774 1824 35 28 96.710495 to5 1 3 6 4 5 820 1820 43 32 96.308792 its5 1 3 6 4 6 873 1824 112 28 95.957382 terms.3 1 3 7 0 0 462 1869 1318 806 -1 4 1 3 7 1 0 508 1869 1271 45 -1 5 1 3 7 1 1 508 1873 82 31 95.774544 Par.5 1 3 7 1 2 612 1875 28 29 96.766556 8.5 1 3 7 1 3 664 1872 72 32 96.081718 Thes 1 3 7 1 4 756 1872 166 42 96.137573 capacity,5 1 3 7 1 5 940 1872 177 41 96.873100 tendency,5 1 3 7 1 6 1137 1872 67 31 96.719749 ands 1 3 7 1 7 1224 1871 98 32 96.837921 effects 1 3 7 1 8 1340 1870 38 33 96.512772 of5 1 3 7 1 9 1396 1870 58 33 96.772202 thes 1 3 7 1 10 1474 1869 173 33 91.630920 aforesaid5 1 3 7 1 11 1666 1880 113 30 91.630920 agree-4 1 3 7 2 0 466 1920 1312 45 -1 5 1 3 7 2 1 466 1928 104 37 96.301720 ment,5 1 3 7 2 2 591 1923 283 42 96.615814 understanding,5 1 3 7 2 3 894 1923 240 41 96.482063 combination,5 1 3 7 2 4 1156 1922 67 32 96.905121 ands 1 3 7 2 5 1246 1921 199 42 96.298775 conspiracy5 1 3 7 2 6 1466 1920 237 34 92.567932 hereinbefore5 1 3 7 2 7 1724 1920 54 32 92.003021 de-4 1 3 7 3 0 466 1969 1313 47 -1 5 1 3 7 3 1 466 1976 133 32 96.532158 scribed5 1 3 7 3 2 621 1975 68 32 96.965790 ands 1 3 7 3 3 710 1975 58 33 96.632774 thes 1 3 7 3 4 790 1978 70 28 96.398148 acts5 1 3 7 3 5 882 1974 68 32 96.398148 ands 1 3 7 3 6 972 1974 164 42 96.694435 practices5 1 3 7 3 7 1158 1974 38 31 96.862801 of5 1 3 7 3 8 1216 1973 58 32 96.998230 thes 1 3 7 3 9 1294 1972 233 42 96.595711 respondents,5 1 3 7 3 10 1549 1971 68 32 96.595711 ands 1 3 7 3 11 1638 1971 82 31 96.611633 each5 1 3 7 3 12 1741 1969 38 33 96.683235 of4 1 3 7 4 0 466 2021 1312 46 -1 5 1 3 7 4 1 466 2026 102 41 96.909294 them,5 1 3 7 4 2 584 2026 87 34 95.803314 done5 1 3 7 4 3 685 2025 68 33 96.017609 ands 1 3 7 4 4 768 2025 197 42 96.315277 performed5 1 3 7 4 5 979 2028 169 38 96.792015 pursuant5 1 3 7 4 6 1160 2024 131 32 96.753098 thereto5 1 3 7 4 7 1306 2023 68 32 95.882362 ands 1 3 7 4 8 1387 2022 37 32 96.902718 in5 1 3 7 4 9 1438 2022 218 32 93.285324 furtherance5 1 3 7 4 10 1670 2021 108 32 92.185585 there-4 1 3 7 5 0 466 2070 1312 46 -1 5 1 3 7 5 1 466 2077 49 39 96.931137 of,5 1 3 7 5 2 532 2087 56 21 96.725311 ares 1 3 7 5 3 605 2088 75 20 96.876076 now5 1 3 7 5 4 699 2076 68 31 96.506508 ands 1 3 7 5 5 782 2076 87 31 96.506508 have5 1 3 7 5 6 884 2075 83 32 96.197021 been5 1 3 7 5 7 982 2078 37 29 96.967949 to5 1 3 7 5 8 1034 2074 240 41 96.023468 substantially5 1 3 7 5 9 1292 2074 116 40 96.659729 lessen,5 1 3 7 5 10 1425 2072 147 32 96.806137 restrains 1 3 7 5 11 1588 2072 67 31 93.280579 ands 1 3 7 5 12 1671 2070 107 33 93.112007 elimi-4 1 3 7 6 0 464 2121 1316 47 -1 5 1 3 7 6 1 464 2131 80 28 96.828796 nates 1 3 7 6 2 565 2126 220 42 96.223206 competitions 1 3 7 6 3 806 2137 124 30 96.260796 among5 1 3 7 6 4 952 2125 66 32 96.611397 ands 1 3 7 6 5 1037 2125 150 32 96.498451 between5 1 3 7 6 6 1207 2124 75 32 96.236366 said5 1 3 7 6 7 1301 2123 207 42 96.236366 respondents 1 3 7 6 8 1526 2122 165 33 96.309334 members5 1 3 7 6 9 1711 2121 69 32 96.927780 anda 1 3 7 7 0 465 2172 1313 45 -1 5 1 3 7 7 1 465 2178 149 32 95.927887 between5 1 3 7 7 2 629 2177 75 32 96.028641 said5 1 3 7 7 3 718 2177 163 32 96.028641 members5 1 3 7 7 4 897 2176 68 32 96.609833 ands 1 3 7 7 5 979 2176 114 32 95.743111 others5 1 3 7 7 6 1107 2176 35 31 96.823158 in5 1 3 7 7 7 1158 2175 57 33 96.987007 thes 1 3 7 7 8 1230 2174 224 43 96.165077 importations 1 3 7 7 9 1469 2174 39 32 96.093758 of5 1 3 7 7 10 1522 2173 152 42 96.902122 lighting5 1 3 7 7 11 1688 2172 90 43 96.643715 glass4 1 3 7 8 0 465 2223 1315 48 -1 5 1 3 7 8 1 465 2229 164 42 96.658165 products5 1 3 7 8 2 642 2229 66 31 96.902344 ands 1 3 7 8 3 723 2229 35 31 96.904716 in5 1 3 7 8 4 771 2226 57 34 96.919319 thes 1 3 7 8 5 840 2227 68 32 96.919319 sales 1 3 7 8 6 922 2227 67 32 96.901131 ands 1 3 7 8 7 1002 2226 222 33 96.598564 distributions 1 3 7 8 8 1237 2226 37 31 96.790184 of5 1 3 7 8 9 1287 2225 74 32 96.962685 said5 1 3 7 8 10 1372 2224 163 42 96.394547 products5 1 3 7 8 11 1548 2223 68 32 96.788902 ands 1 3 7 8 12 1627 2223 153 41 96.804344 lighting4 1 3 7 9 0 463 2273 1316 44 -1 5 1 3 7 9 1 463 2279 142 32 96.404625 fixtures5 1 3 7 9 2 623 2277 261 34 96.334869 manufactured5 1 3 7 9 3 902 2277 189 33 96.329445 therefrom5 1 3 7 9 4 1108 2276 36 32 95.815056 in5 1 3 7 9 5 1162 2286 199 31 95.815056 commerce;5 1 3 7 9 6 1379 2275 87 32 96.423309 have5 1 3 7 9 7 1483 2274 211 41 96.737869 empowered5 1 3 7 9 8 1711 2273 68 32 96.617363 anda 1 3 7 10 0 464 2324 1314 47 -1 5 1 3 7 10 1 464 2330 143 32 96.695183 enabled5 1 3 7 10 2 622 2330 58 32 96.687347 thes 1 3 7 10 3 697 2329 205 42 96.229256 respondents 1 3 7 10 4 918 2328 163 32 96.229256 members5 1 3 7 10 5 1098 2331 34 29 96.544495 to5 1 3 7 10 6 1148 2327 131 32 96.541367 controls 1 3 7 10 7 1294 2326 58 33 96.541367 thes 1 3 7 10 8 1366 2325 133 32 96.329628 markets 1 3 7 10 9 1514 2325 57 31 96.798592 for5 1 3 7 10 10 1585 2324 76 32 92.870773 said5 1 3 7 10 11 1675 2324 103 41 92.321083 prod-4 1 3 7 11 0 462 2374 1318 45 -1 5 1 3 7 11 1 462 2385 74 28 96.658783 ucts5 1 3 7 11 2 565 2380 67 33 96.658783 ands 1 3 7 11 3 660 2380 157 39 95.880577 fixtures;5 1 3 7 11 4 847 2379 86 31 95.880577 have5 1 3 7 11 5 962 2378 171 32 96.132599 enhanced5 1 3 7 11 6 1162 2377 57 33 96.308800 thes 1 3 7 11 7 1246 2377 109 42 96.596848 prices5 1 3 7 11 8 1382 2376 84 41 95.767288 paid5 1 3 7 11 9 1493 2376 57 31 96.615395 for5 1 3 7 11 10 1577 2374 73 38 90.289398 said5 1 3 7 11 11 1678 2374 102 41 90.289398 prod-4 1 3 7 12 0 464 2424 1314 46 -1 5 1 3 7 12 1 464 2435 75 28 96.268661 ucts5 1 3 7 12 2 561 2430 68 32 96.705399 ands 1 3 7 12 3 651 2429 139 32 96.494019 fixtures5 1 3 7 12 4 811 2429 44 41 96.542183 by5 1 3 7 12 5 878 2428 218 42 96.542183 competitors5 1 3 7 12 6 1119 2427 67 33 96.915939 ands 1 3 7 12 7 1208 2436 207 30 96.536545 consumers;5 1 3 7 12 8 1438 2425 86 32 96.201492 have5 1 3 7 12 9 1546 2436 19 21 96.896507 a5 1 3 7 12 10 1588 2424 190 42 96.414070 dangerous4 1 3 7 13 0 463 2474 1315 48 -1 5 1 3 7 13 1 463 2481 166 41 96.373100 tendency5 1 3 7 13 2 643 2484 35 28 96.373100 to5 1 3 7 13 3 694 2484 109 28 96.281471 creates 1 3 7 13 4 818 2490 19 21 96.281471 a5 1 3 7 13 5 850 2478 183 43 96.825378 monopoly5 1 3 7 13 6 1048 2478 36 32 97.012405 in5 1 3 7 13 7 1097 2478 206 42 96.465378 respondents 1 3 7 13 8 1316 2476 165 33 96.350136 members5 1 3 7 13 9 1494 2476 36 31 96.986816 in5 1 3 7 13 10 1543 2474 58 34 92.923996 thes 1 3 7 13 11 1612 2475 166 41 91.134109 importa-4 1 3 7 14 0 463 2525 1315 48 -1 5 1 3 7 14 1 463 2533 75 31 96.876579 tions 1 3 7 14 2 552 2532 38 32 96.876579 of5 1 3 7 14 3 604 2531 152 42 96.378571 lighting5 1 3 7 14 4 769 2531 91 41 96.670135 glass5 1 3 7 14 5 873 2530 162 42 96.809372 products5 1 3 7 14 6 1050 2530 68 31 96.977890 ands 1 3 7 14 7 1130 2530 36 30 96.953011 in5 1 3 7 14 8 1180 2529 58 31 96.769585 thes 1 3 7 14 9 1250 2528 69 32 96.769585 sales 1 3 7 14 10 1333 2527 67 32 96.816307 ands 1 3 7 14 11 1416 2525 222 34 96.890068 distributions 1 3 7 14 12 1651 2526 39 31 97.005920 of5 1 3 7 14 13 1703 2525 75 32 96.996666 said4 1 3 7 15 0 463 2575 1316 50 -1 5 1 3 7 15 1 463 2583 165 42 41.297573 products5 1 3 7 15 2 644 2582 68 32 96.967545 ands 1 3 7 15 3 727 2581 140 32 96.885826 fixtures5 1 3 7 15 4 881 2581 39 32 96.431152 in5 1 3 7 15 5 935 2590 198 30 96.455070 commerce;5 1 3 7 15 6 1152 2579 68 32 96.966370 ands 1 3 7 15 7 1235 2590 67 29 96.952560 are,5 1 3 7 15 8 1319 2578 67 33 96.602272 ands 1 3 7 15 9 1401 2578 86 31 96.602272 have5 1 3 7 15 10 1501 2577 94 40 96.010872 been,5 1 3 7 15 11 1609 2576 46 32 96.506310 all5 1 3 7 15 12 1670 2579 36 29 96.713066 to5 1 3 7 15 13 1720 2575 59 32 96.783783 thea 1 3 7 16 0 463 2627 1314 48 -1 5 1 3 7 16 1 463 2632 119 43 89.791946 injury5 1 3 7 16 2 594 2632 67 33 97.001534 ands 1 3 7 16 3 673 2632 176 42 96.561264 prejudice5 1 3 7 16 4 859 2632 39 31 96.478386 of5 1 3 7 16 5 908 2631 58 32 96.478386 thes 1 3 7 16 6 976 2630 116 43 96.960434 public5 1 3 7 16 7 1104 2630 67 32 96.811020 ands 1 3 7 16 8 1183 2629 217 42 96.634987 competitors5 1 3 7 16 9 1411 2628 38 32 97.005989 of5 1 3 7 16 10 1459 2627 207 41 93.265129 respondents 1 3 7 16 11 1675 2637 102 20 92.381310 mem- Consent Settlement 49 B.T.C.

bers, and constitute unfair methods of competition in commerce within the intent and meaning of Section 5 of the Federal Trade Commission Act.

CONSENT SETTLEMENT * Pursuant to the provisions of the Federal Trade Commission Act (15 U.S. C. A., Sec. 45), the Federal Trade Commission on May 12, 1952, issued and subsequently served its complaint on the respondents named in the caption hereof, charging them with the use of unfair methods of competition in commerce in violation of the provisions of said Federal Trade Commission Act.

The respondents, desiring that this proceeding be disposed of by the consent settlement procedure provided for in Rule V of the Commission’s Rules of Practice, solely for the purposes 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 answer to said complaint heretofore filed by Lewis J. Smith, an individual, and which, upon acceptance by the Commission of this settlement, shall be deemed to have been withdrawn from the record, and in lieu of answers to said complaint by all other respondents herein, hereby : 1. Admit all the jurisdictional allegations set forth in the complaint, and state that the name of the respondent Czecho-Slovak Crystal Importers Association, Inc., a corporation, was officially changed in accordance with the laws of the State of New York to Imported Crystal Association, Inc., a corporation, as of May 19, 1952. 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 said findings as to the facts, conclusion, and order to cease and desist, specially refrain from admitting or denying that they have engaged in any of the acts or practices stated therein to be in violation of law.

3. Agree that this consent settlement may be set aside in whole or in part under the conditions and in the manner provided in paragraph (f) of Rule V of the Commission’s Rules of Practice. 1The Commission’s ‘‘Notice” announcing and promulgating the consent settlement as published herewith, follows:

The consent settlement tendered by the parties in this proceeding, a copy of which is served herewith, was accepted by the Commission on June 25, 1958, and ordered entered of record as the Commission’s findings as to the facts, conclusion, and order in disposition of this proceeding.

The time for filing report of compliance pursuant to the aforesaid order runs from the date of service hereof.

IMPORTED CRYSTAL ASSN., INC. ET AL. 1485 1475 Findings 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: FINDINGS AS TO THE FACTS Paracrapy 1. The respondent, Imported Crystal Association, Inc., (formerly Czecho-Slovak Crystal Importers Association, Inc.), hereinafter referred to as respondent “Association,” is a New York corporation, incorporated in 1946, with its principal office and place of business presently located at 48 West 87th Street, New York, New York, which is the business office of its Secretary, Irvin G. Nelson. The membership of the respondent Association is composed of corporations and individuals trading as partnerships or sole proprietors who are generally engaged in the business of importing glass crystals, prisms, drops, chandeliers and other similar or related products (sometimes hereinafter referred to as “lighting glass products”) for sale and distribution in commerce and for use in the construction of lighting fixtures for sale and distribution in commerce among and between the various States of the United States. The constitution and by-laws of the respondent Association declares its purpose to be:

ARTICLE II—PURPOSES Section 1. The general purposes of the Association shall be to foster, encourage and generally to advance the business of importers of crystal chandeliers and of all chandelier parts from Czechoslovakia, and to deal with problems concerning or affecting them and of allied and kindred businesses; to secure freedom from unjust and unlawful exactions; to unite for appropriate study and action, the said importers and allied or kindred businesses who are interested in the tariff law and in the administration of the Customs in general; to secure for said businesses the fair and administrative treatment to which they are entitled and to discourage ill-considered tariff legislation which might result not only in unfair discrimination in the United States but also in adverse effects on our international trade in general; to reform abuses relating to said businesses, and to promote and encourage sound, ethical and progressive business methods among them; to collect and disseminate accurate and reliable information relating to matters of said businesses and also the standing of persons and corporations engaged therein; to procure uniformity and certainty of practices and usages of said businesses; to settle differences between its members and those with whom they do business; to insure united action wherever else the interests of its members are concerned; and to do all such things as may be necessary and proper for the carrying out of the foregoing purposes. 260133—55——_97 Findings 49 BLT. C.

ARTICLE IV—MEMBERSHIP, DUES, VOTING, COMPLAINTS Section 1. Any American citizen or a partnership, or a corporation, consisting of American citizens, or of whom American citizens shall be controlling or managing members or directors, who import merchandise into the United States or its territories, or who deal in imported merchandise or who are interested in the tariff laws, shall be eligible to membership in the Association. Par. 2. The following is a description of the corporate and individual respondents (sometimes hereinafter referred to as “respondent members”), all of whom are members of respondent Association:

Bohemia Import Co., Inc., is a New York corporation, incorporated in 1946, with its principal office and place of business located at 39 West 23rd Street, New York, New York.

Crystal Mart, Incorporated, is a New York corporation, incorporated in 1946, with its principal office and place of business located at 31 East 27th Street, New York, New York.

Elite Glass Co., Inc., is a New York corporation, incorporated in 1926, with its principal office and place of business located at 111 West 22nd Street, New York, New York.

Nelson Bead Co., Inc., is a New York corporation, incorporated in 1946, with its principal office and place of business located at 48 West 37th Street, New York, New York.

Weiss & Biheller Merchandise Corporation is a New York corporation, incorporated in 1934, with its principal office and place of business located at 584 Broadway, New York, New York. Lightolier Co., Inc., is a New York corporation, incorporated in 1904, with its principal office and place of business located at 346 Claremont Avenue, Jersey City, New Jersey. Rialto Import Corporation is a New York corporation, incorporated in 1925, with its principal office and place of business located at 135 West 44th Street, New York, New York. Gregory Sales Company, Inc., is a New York corporation, incorporated in 1938, with its principal office and place of business located at 932 East 59th Street, New York, New York. Charles J. Winston & Co., Inc., is a New York corporation, incorporated in 1940, with its principal office and place of business located at 515 Madison Avenue, New York, New York. Lawson Crystal, Inc., is a Missouri corporation, incorporated in 1947, with its principal office and place of business located at 4453a Olive Street, St. Louis, Missouri.

IMPORTED. CRYSTAL ASSN., INC. ET AL. 1487 1475 Findings Sol Horn, Inc., is a New York corporation, incorporated in 1946, with its principal office and place of business located at 236 Fifth Avenue, New York, New York.

Warren Kessler, Inc., is a New York corporation, incorporated in 1929, with its principal office and place of business located at 220 Fifth Avenue, New York, New York.

Isaac Albert, Louis Albert, and Charles Albert are individuals and copartners, trading and doing business under the partnership name and style of I. Albert Co., with their principal office and place of business located at 232 East 59th Street, New York, New York. Sol Goodman and Edith Goodman are individuals and copartners, trading and doing business under the partnership name and style of Goody Lamp Co., with their principal office and place of business located at 40 West 27th Street, New York, New York. Lewis J. Smith is an individual trading and doing business under the firm name and style of Crystal Import Co., with his principal office and place of business located at 7201 Melrose Avenue, Los Angeles, California.

Par. 8. The respondent Association is not engaged in the business of importing, selling, or distributing lighting glass products, as herein described, but said respondent has aided, abetted, guided, and assisted its respondent members in the performance of unlawful acts and practices hereinafter set forth.

Par. 4. The respondent members are now, and since October 1946 have been, engaged in the business of importing lighting glass products from Czechoslovakia and other foreign countries for sale and distribution throughout the United States and for use in the manufacture of lighting fixtures for sale and distribution throughout the United States. Said respondents cause such products, when sold, to be shipped to purchasers thereof, many of whom are located in the several States of the United States other than the States of origin of said shipments and in the District of Columbia; and there has been, and now is, a constant current and course of trade in said lighting glass products and lighting fixtures in commerce, as “commerce” is defined in the Federal Trade Commission Act, among and between the several States of the United States and in the District of Columbia. Par. 5. Except for the unlawful cooperation, planned common course of action, understanding, agreement, combination and conspiracy hereinafter alleged, respondent members would be in competition with one another in the import of lighting glass products. Said re- ‘Findings; 49 B.T.C.

spondent members have been, and are now, in competition with others engaged in the import of lighting glass products. Said respondents are also in competition with their customers and with importers who are not members of respondent Association in the offering for sale, sale and distribution of lighting glass products and lighting fixtures manufactured from such products throughout the several States of the United States and in the District of Columbia. - ‘Par. 6. Prior to World War IT, and for several years thereafter, substantially all of the lighting glass products used in the United States in the manufacture of chandeliers and other similar or related lighting fixtures were obtainable only from Czechoslovakia. A small percentage of the lighting glass products manufactured for use in the United States is presently manufactured in Japan, Germany, Austria, and other foreign countries as well as in the United States. Such glass products have generally been deemed to be of inferior quality to Czechoslovakian lighting glass products and have not enjoyed the acceptance in the United States accorded to said Czechoslovakian glass products. Respondent members have for several years past imported, and still do import, approximately 90 percent of the volume of lighting glass products manufactured in Czechoslovakia for sale and distribution in the United States, and by reason of this fact possess the ability and the means of dominating and controlling, and have actually, for several years past, dominated. and controlled, the lighting glass products industry in the United States. Par. 7. For more than five years last past, the respondent members, together with the respondent Association, have been and are engaged in unfair methods of competition and unfair acts and practices in commerce, as “commerce” is defined in the Federal Trade Commission Act, in that they have acted and are still acting unlawfully to thwart, hinder, frustrate and suppress competition by cooperating. combining, conspiring, agreeing and entering into and carrying out an understanding and planned common course of action between and among themselves and others to prevent competing purchasers from importing lighting glass products directly from the suppliers thereof ; to fix and establish prices, terms and conditions of purchase in connection with the purchase and importation of lighting glass products; and to monopolize within themselves the import, sale, and distribution of said products in said commerce. Asa part and parcel thereof they have committed acts and promulgated used policies, methods and practices hereinafter more particularly set forth in subparagraphs 1 to 7, inclusive, of this Paragraph 7:

IMPORTED CRYSTAL ASSN., INC. ET AL. 1489 1475 . Findings 1. Respondents restricted the membership of respondent Association and obtained an agreement or understanding from the Czechoslovakian glass export authorities, which were in control of the shipment of lighting glass products from Czechoslovakia, whereby the sale of said lighting glass products was restricted to respondent members and other importers approved by respondents. 2. Respondents caused the Czechoslovakian glass export authorities to enjoin glass exporters from selling lighting glass products to importers in the United States who were not members of respondent association.

38. Respondents agreed with Czechoslovak Glass Export Co., Ltd. that that export agency would lower its price to enable respondent members to meet the competition of lighting glass products of other origin; that the sale of Czechoslovakian lighting glass products would be made exclusively to the respondent members and other importers approved by respondents; and that respondents would confine their purchases of such lighting glass products to the said export agency to the exclusion of other sources of supply. 4. Respondents agreed among themselves and with their source of supply in Czechoslovakia that the purchase price paid by any respondent member for any lighting glass product would be identical to that paid by any other respondent member for the same product. 5. Respondents organized and used, and are now using, respondent Association as an unlawful medium of effectuating and carrying out the agreement, understanding, and practices herein alleged. 6. In compliance with the aforesaid cooperation and planned common course of action, understanding or agreement, the Czechoslovakian government officials transmitted its current list of United States lighting glass product importers to the respondent Association for its approval. Since 1946, said Czechoslovakian officials have received numerous inquiries from importers located in the United States who were not members of respondent Association in regard to the purchase of lighting glass products. These inquiries have been consistently referred to respondent Association which, acting through its members, have advised said Czechoslovakian officials as to whether or not said importers should be allowed to purchase said products directly from Czechoslovakia. Respondent Association has also kept the Czechoslovakian government officials apprised of its membership and of competitive activities in the industry. During the same period of time respondent members have refrained from purchasing lighting glass products from sources outside of Czechoslovakia. Findings 49 FLTC.

7. Respondents further implemented and insured a successful continuation of the unlawful cooperation, planned common course of action, combination and conspiracy, through an agreement entered into on or about August 29, 1949, with the Czechoslovak Glass Export Co. Ltd., in the following terms:

“(1) New prices of Chandelier Trimmings will be put into force as of August 1st 1949 as per the Price List attached. © (2) New Price-Lists for Chandeliers are to.be in force as of August Ist and the members of the Association will receive their new prices promptly.

(3) The sales of Trimmings and complete Crystal Chandeliers Crystal, Breakets, Baskets and Ceiling Pieces will be sold only to the members of the Association and in addition to the following firms:

Halcolite, Brooklyn, Crystal Import, Los Angeles, Lawson, St. Louis, Sol Horn Inc., New York 1.

(4) As stated before, this selling policy will concern complete Crystal Chandeliers, Crystal Breakets, Baskets and Ceiling pieces. Regarding Chandeliers Glass Parts for the purpose of making Chandeliers except Chandelier Trimmings it has been agreed that the selling policy for these items will be discussed and organized at a later date.

(5) Mr. Sanford on behalf of the Association agreed we supply Chandelier Trimmings a. Crystal Chandeliers to the following clients:

Halcolite, Brooklyn, Crystal Import, Los Angeles, Lawson, St. Louis, Sol Horn, Inc., New York 1.

(6) All members of the Association as well as the clients as per Par. (5) will buy Chandelier Trimmings and Crystal Chandeliers exclusively in Czechoslovakia. AIl orders placed with our competitors prior to this agreement are to be cancelled if possible and on the other side all orders of non-members of the Association accepted and confirmed by the Czechoslovak Glass Export Co. Ltd. prior to this agreement will be delivered under the old conditions and prices. Such orders are not in excess of $10,000.00 and will be shipped before October Ist 1949.

IMPORTED CRYSTAL ASSN., INC. ET AL. 1491 1475 Findings (7) Czechoslovak Glass Export Co. Ltd. is at all times prepared to quote competitive prices against all other suppliers. The Importers Association agree to make available proof of lower prices being quoted by competitors and engage themselves to cooperate closely in this regards with Centroglass.

(8) The Glassexport expects in view of the lower prices and of this agreement that the members will support them promptly with substantial orders.

(9) This agreement will be in force until July 1st 1950 and will be renewed automatically for a further year unless either party has given two months written notice that they desire to renegotiate a new contract.”

At a later date the last three named firms in paragraph three of said agreement were admitted into membership in respondent Association. Notwithstanding the fact that Czechoslovak Glass Export Co., Ltd. in April 1950 notified the respondents that the foregoing agreement would not be renewed respondents and Czechoslovak Glass Export Co., Ltd. continued to adhere to its terms and conditions until on or about October 1951 when circumstances beyond their control precluded respondents’ further importation of lighting glass products from Czechoslovakia.

Par. 8. The capacity, tendency, and effect of the aforesaid agreement, understanding, combination, and conspiracy hereinbefore described and the acts and practices of the respondents, and each of them, done and performed pursuant thereto and in furtherance thereof, are now and have been to substantially lessen, restrain and eliminate competition among and between said respondent members and between said members and others in the importation of lighting glass products and in the sale and distribution of said products and lighting fixtures manufactured therefrom in commerce; have empowered and enabled the respondent members to control the market for said products and fixtures; have enhanced the prices paid for said products and fixtures by competitors and consumers; have a dangerous tendency to create a monopoly in respondent members in the importation of lighting glass products and in the sale and distribution of said products and fixtures in commerce; and are, and have been, all to the injury and prejudice of the public and competitors of respondent meinbers, and constitute unfair methods of competition in commerce within the intent and meaning of Section 5 of the Federal Trade Commission Act.

Order 49 F.T.C.

CONCLUSION The acts and practices of respondents, as hereinabove found and set forth, are all to the prejudice of the public and constitute unfair methods of competition in commerce within the intent and meaning of the Federal Trade Commission Act.

ORDER TO CEASE AND DESIST It is ordered, That respondents Imported Crystal Association, Inc. (formerly Czecho-Slovak Crystal Importers Association, Inc.) ; Bohemia Import Co., Inc.; Crystal Mart, Incorporated; Elite Glass Co., Inc.; Nelson Bead Co., Inc.; Weiss & Biheller Merchandise Corporation; Lightolier Co., Inc.; Rialto Import Corporation; Gregory Sales Company, Inc.; Charles J. Winston & Co., Inc.; Lawson Crystal, Inc. ; Sol Horn, Inc.; and Warren Kessler, Inc. ; corporations, their officers, agents, representatives and employees; Isaac Albert, Louis Albert, and Charles Albert, as individuals and copartners trading under the name and style of I. Albert Co.; Sol Goodman and Edith Goodman, as individuals and copartners trading under the name and style of Goody Lamp Co.; and Lewis J. Smith, as an individual trading under the name and style of Crystal Import Co., directly or through any corporate or other device, in connection with the purchase, sale or distribution of lighting glass products or lighting fixtures in commerce, as “commerce” 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, or conspiracy between any two or more of said respondents, or between any one or more of said respondents and others not parties hereto engaged in competition with any of said respondents, to do or perform any of the following things:

1. Inducing, coercing, compelling, or attempting to induce, coerce, or compel manufacturers of Czechoslovakian lighting glass products or any other manufacturers or suppliers of lighting glass products to restrict their sales of such products only to respondents. 2. Hindering, preventing, or attempting to hinder or prevent purchasers, or potential purchasers, of lighting glass products who are not members of the Czecho-Slovak Crystal Importers Association, Inc., from obtaining such products from Czechoslovakia or any other source of supply.

IMPORTED CRYSTAL ASSN., INC. ET. AL. 1493 1475 ; Order 3. Fixing or attempting to fix prices, discounts, terms or conditions of purchase of lighting glass products from Czechoslovakia or any other source of supply or maintaining any prices, terms or condition of sales so fixed.

4. Confining, restricting, limiting, or attempting to confine, restrict, or limit their purchases of lighting glass products to Czechoslovak Glass Export Co., Ltd., or any other source or sources of supply. It is further ordered, 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. Importep Orystat Assocrarion, Nrzson Bran Co., Inc. Inc., Nelson Bead Co., Inc.

Imported Crystal Association, By [S] Herman Netson Inc., ; Title, President (formerly Czecho - Slovak Date: Sept. 17, 1952 Crystal Importers Associa- Wrourss & BinetLter MercHanvisE tion, Inc.) Corr.

By [S] Gorpow W. Sanrorp Weiss & Biheller Merchandise Title, President Date: Sept. 17, 1952 Bourmia Imvorr Co., Inc.

Bohemia Import Co., Inc.

By [S] Josern Gurrmann Title, Vice President Date: Sept. 16, 1952 Crystal Mart Incorporated Crystal Mart, Incorporated By [S] Cuartzs Gorresman Title, President Date: Sept. 17, 1952 Exrre Guass Co., Ine.

Elite Glass Co., Inc.

By [S] Irvine Levin Title, President Date: Sept. 17, 1952 Corp.

By [S] Gorpon W. Sanrorp Title, Secretary-treasurer Date: Sept. 17, 1952 Licutouier Co., Inc.

Lightolier Co., Inc.

By (S] M. Puurnaver Title, Secretary Date: Sept. 24, 1952 Riatto Iurporr Corporation Rialto Import Corporation By [S] Jospea L. Weiss Title, President Date: Sept. 22, 1952 1494 FEDERAL: TRADE COMMISSION DECISIONS Order 49 F.T.C.

Grecory Sates Company, Inc. Louis ALBERT Gregory Sales Company, Inc. Louis Albert (one of three partners trading as I. Albert Co.) By [S] Lovis ALBERT Title, Partner Date: Sept. 19, 1952 Caries ALBERT _ Charles Albert (one of three partners By [S] Cuartes ALBERT © Title, President Date: Sept. 19, 1952 Cuartes J. Winston & Co., Inc.

Charles J. Winston & Co., Inc.

By [S] Srantey Winston trading as I. Albert Co.) Title, President By [S] Cartes ALBERT Date: Sept. 24, 1952 Title, Partner Lawson Orystat, Inc. Date: Sept. 19, 1952 Lawson Crystal, Inc. Sot GoopMan By [S] Paut S. LAansMAan Sol Goodman (one of two partners By Ira an trading as Goody Lamp Co.) b) By [8] Son Goopman Date: Sept. 18, 1952 Title, Partner a Sou Horn, Inc. Date: Sept. 24, 1952 Sol Horn, Inc. Evrru Goopman By [S] Sor Horn Edith Goodman (one of two partners Title, President trading as Goody Lamp Co.) Date: Sept. 23, 1952 By [S] Epvrra Goopman Warren Kesstrr, Inc. ae carne 1989 Warren Kessler, Inc. ate: Sept. 24, By [S] Warren L. Kussuzr Lewis J. Surrn Title, President Lewis a Smith (an dadividual trad- Date: Sept. 22, 1952 me By [8] L. J. Sarre Tsaac ALBERT Title, Owner Isaac Albert (one of three partners Date: 9/19/52 trading as I. Albert Co.) /19/ By [S] Isaac Atzerr Title, Partner Per I. A.

Date: Sept. 19, 1952 The foregoing Consent Settlement is hereby accepted by the Federal Trade Commission and ordered entered of record on this the 25th day of June, 1953.

JAN-WARREN CORP. ET AL. 1495 Complaint