Kochton Plywood and Veneer Company, Inc.

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IN THE MATTER OF KOCHTON PLYWOOD AC\D VENEER COMPANY, INC" ET AL.

CONSEl'' T ORDER, l':TC., IN REGARD TO THE ALLEGED VIOLATJON OF THE FEDERAL TRADE COM:inSSION ACT Ducket 7114-. Complaint, Apr. l(), IDS8-Dec".ston, Dec. , 1958 Consent order requiring Chicago sellers of plywood paneling imported from Japan and grained 01' finished in the United States which was not made from either wtl1nut or oak, to cease misrepresenting the paneling by distributing to retailers samples identified r:s " Blond Walnut Silver Oak Natural \Valnut, " etc. ; and to cease distributing said samples stamp(-'d with their name and address, without clearly disclosing that the paneling was made in Japan.

William A. Somers Esq., for the Commission. Mr. Lawrence .1. West of Chicago, 111. for respondents. INITIAL DECISION BY JAMES A. PURCELL, HEARING EXAMINER The complaint in this proceeding, issued April 10, 1958, charges the respondents Kochton Plywood and Veneer Company, Inc. , a corporation, and Emil J. Kochton, individually and as an offcer of the corporate respondent, with violation of the provisions of the Federal Trade Commission Act in connection with the sale and distribution of plywood paneJing.

After the issuance of said complaint respondents, on Odober G 1958, entered into an agreement for a consent order with counsel in support of the complaint, disposing of all of the issues in this proceeding, which agreement was duly approved by the director and assistant director of the Bureau of Litigation of the Fcderal Trade Commission. It was expressly provided in said agreement that the signing thereof is for settement purposes only and does not constitute an admission by respondents that they have vilated the law as alleged in the complaint. By the terms of said agrecment, thc respondents admitted all of the jurisdictional1 allegations of the complaint and agreed that. the record herein may be taken as though the Commission had made findings of jurisclictiona1 facts in accordance with sllch allegations. By said agreement thc parties expressly waived a hearing before the hearing examiner or the Commission, the making of findings of fad or conclusions of 1aw by the hearing examiner or the Commission, the filing of exceptions and oral KOCH TON PLYWOOD AND VENEER COMPANY, INC., ET AL. 871 870 Order argument before the Commission, and all further and other procedure before the hearing examiner and the commission to which the respondents may otherwise be entitled under the Federal Trade Commission Act or the Rules of Practice of the Commission. By said agreement, respondents further agreed that the order to cease and desist issued in accordance with said agreement shall have the same force and efiect as though made after a full hearing, presentation of evidence and findings and conclusions thereon, and specifically waived any and all right, power or privilege to challenge or contest the validity of such order. It was further provided that said agreement, together with the complaint, shall constitute the entire record herein; that the complaint herein may be used in construing the terms of the order issued pursuant to said agreement; and that the said order may be altered, modified or set aside iu the manner provided for other orders of the Commission.

Said agreement recites that respondent Kochton Plywood and Veneer Company, Inc., is a corporation, existing and doing business under and by virtue of the laws of the Stale of JJinois. Respondent Emil ,1. Kocbton is an individual and offcer of said corporate respondent. Said corporate and individual respondents have their offce and principal place of business located at 509 West Hoosevelt Road, Chicago, Ill.

The hearing examiner has considered such agreement and the order contained therein, and, it appearing that said agreement and order provides Jar an appropriate disposition of this proceeding, the same is hereby accepted and, without further notice to the respondents, is ordered filed upon becoming part of the Commission s decision in accordance with Sections 3.2.1 and 3. of the Rules of Practice, and in consonance with the terms of said agreement, the hearing examiner finds that the Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents named herein, and that this proceeding is in the interest of the public, wherefore he jssues the following order:

ORDER It is onle,' That respondents Kochton Plywood and Veeneer Company, Inc., a corporation, and its offcers, and Emil J. Kochton individually and as an offcer of said corporation, and their agents representatives and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or Decision 55 F.

distribution of "Beauty-Glo" plywood paneling, plywood paneling or any other product, in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

1. Offering for sale any product the whoJe or any substantial part of which originates in any foreign country without clearly disclosing such foreign origin on the product itself and on samples thereof.

2. Representing, directly or by implication, contrary to the fact, that any product is composed in whole or in part of wood or woods of any particular species.

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 shan, on the 17th day of December 1958, become the decision of the Commission; and, accordingly:

It is urdered That the respondents herein shan, within sixty (60) days after service upon them of this order, file with the Commission a report in \;\lriting setting forth in detail the manner and form in which they have complied with the order to cease and desist.

B. ALTMAN & CO. 873 Decision