Lester B. Patterson

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

In the Matrer OF LESTER B. PATTERSON ET AL. DOING BUSINESS AS LESLIE PATTON CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 6876. Complaint, Aug. 23, 1957—Deciston, Dec. 10, 1957 Consent order requiring sellers in Chicago to cease advertising falsely in magazines and otherwise that persons completing their correspondence course could make $50 a day or $15,000 to $20,000 a year buying and selling scrap gold; that it was “to be found wherever you go,” ‘‘waiting for you to pick it up”; and that the U.S. Government paid $35 an ounce for the gold contained in “old junk jewelry.”

Mr. Kent P. Kratz supporting the complaint. Mr. John A. Nash, of Chicago, Ill., for respondents. Initial Decision Or Joun Lewis, Hearne Examiner The Federal Trade Commission issued its complaint against the above-named respondents on August 23, 1957, charging them with the use of unfair and deceptive acts and practices in commerce, in violation of the Federal Trade Commission Act, by falsely representing the advantages to be derived from taking respondents’ correspondence course on the subject of buying and selling scrap gold, including the earnings which may be expected by persons taking such course, and the availability and price of such scrap. After being served with said complaint, respondents appeared by counsel and entered into an agreement dated October 16, 1957, containing a consent order to cease and desist. purporting to dispose of all this proceeding astoallparties. Saidagreement, which has been signed by all respondents, by counsel for said respondents, and by counsel supporting the complaint, and approved by the director and assistant director of the Commission’s Bureau of Litigation, has been submitted to the above-named hearing examiner for his consideration, in accordance with section 3.25 of the Commission’s rules of practice for adjucicative proceedings.

Respondents, pursuant to the aforesaid agreement, have admitted all the jurisdictional facts alleged in the complaint and agreed that the record may be taken as if findings of jurisdictional facts had been duly made in accordance with such allegations. Said agreement further provides that. respondents waive dny further procedural steps before the hearing examiner and the Commission, the making of find- LESLIE PATTON. 713 712 Order ings of fact or conclusions of law and all of the rights they may have to challenge or contest the validity of the order. to cease and desist entered in accordance with such agreement. It has been agreed that the order to cease and desist issued in accordance with said agreement shall have the same force and effect as if entered after a full hearing and that the complaint may be used in construing the terms of said order. It has also been agreed that the record herein shall consist solely of the complaint and said agreement, and that said agreement is for settlement purposes only and does not constitute an admission by respondents that they have violated the law as alleged in the complaint.

This proceeding having now come on for final consideration on the complaint and the aforesaid agreement containing consent order, and it appearing that the order provided for in said agreement. covers all ‘the allegations of the complaint and provides for an appropriate disposition of this proceeding as to all parties, said agreement. is hereby accepted and is ordered filed upon this decision’s becoming the decision of the Commission pursuant to sections 3.21 and 3.25 of the Commission’s rules of practice for adjudicative proceedings, and the hearing examiner, accordingly, makes the following jurisdictional findings and order:

1. Respondents Lester B. Patterson and Edith F. Patterson are copartners trading under the name of Leslic Patton with their office and principal place of business located at 335 W. Madison Street, Chicago, Hl.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents hereinabove named. The complaint states a cause of action against said respondents under the Federal Trade Commission Act, and this proceeding is in the interest of the public.

ORDER It 1s ordered, That respondents Lester B. Patterson and Edith F. Patterson, individually or as copartners, trading as Leslie Patton, or trading under any other name, their 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 a course of instruction in buying and selling scrap gold, do forthwith cease and desist from representing, directly or by implication, that: 1. Persons completing said course of instruction and engaging in the buying and selling of scrap gold can make $50 a day or $12,000 Decision 54 F.T.C.

to $20,000 a year or any other amount in excess of the amount that is customarily and usually earned by such persons. 2. The United States Government pays $35 per ounce, or any other amount for scrap gold that is in excess of the net amount actually paid after all deductions.

3. Scrap gold is readily available or that it can be obtained readily or with little effort.

DECISION OF THE COMMISSION AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to section 3.21 of the Commission’s rules of practice, the initial decision of the hearing examiner shall, on the 10th day of December 1957, become the decision of the Commission; and, accordingly:

It is ordered, That the respondents herein 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 the order to cease and desist. TEITELBAUM FURS ET AL. 715 Decision