St. Regis Paper Company

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IN THE MATTER OF ST. REGIS PAPER COMPANY, ET AL.

ORDER , ETC., IN REGARD TO THE ALLF.GED VIOLATION OF THE FEDERAL TRADE COMYIISSIO:- ACT Docket. 6.176'. Complaint, Dec. loss-Decision, Apr. , 1959 Order dismissing without prejudice as to the two remaining" respondents complaint charging 21 leading paper bag" manufacturers with using the same pricing formula to quote identical delivered prices to customers eganJless of their location or freight costs. On Fcb. 12, 19':;9 , the Commission approved a consent order requiring 17 of the manufacturers to discontinue said adivities (p. 11G2 herein) and in 1956 had dismissed the complaint as to two respondents who had ceased to manufacture the products concerned.

Mr. Andl'll C. Goodhope, M,'. Ross D. Yo"ng, Jr. and Mr. John Perechinsky, supporting complaint. Lamb Long, by Mr. George P. Lamb of Washington, D. C., for Fulton Bag and Cotton Mills; and iesel, Lessall Dowling, of New York, N. , for Equitable Paper Bag Co. Before Mr. John l-lewis hearing examiner. INITIAL DECISION AS TO REMAINIKG RESPONDENTS FULTON BAG AND COTTON MILLS AND EQUITABLE PAPER BAG CO.

The Federal Trade Commission issued its complaint against the ahove-named respondents on December 7, 1955 , charging them with the use of unfair methods of competition, in commerce, in violation of the Federal Trade Commission Act, by entering into a combination or conspiracy to hinder, lessen, restrict and restrain competition in price in the sale and distribution of multi-wall paper shipping sacks. After being served with said complaint, respondents appeared by counsel and filed their separate answers thereto. Thereafter, by orders dated respectively, February 20 , 195fi, and November 9 , 195fi, the complaint herein was dismissed as to respondents Raymond Bag Company and Thomas Phillips Company on the ground, substantially, that said respondents had ceased engaging in the manufacture and sale of multi-wall paper shipping sacks. Subsequently the remaining respondents, except Fulton Bag and Cotton Mills, and Equitable Bag Co., entered into separate but identical agreements, dated ST. REGIS PAPER CO., ET AL. 1673 1672 Decision December 8, 1958, containing a consent order to cease and desist purporting to dispose of all of this proceeding as to all remaining respondents, except Fulton Bag and Cotton Mills, and Equitable Bag Co. The undersigned filed his Initial Decision, based on said agreements, on December 22 , 1958 , disposing of this proceeding as to all remaining respondents except Fulton Bag and Cotton Mills, and Equitable Paper Bag Co. Said Initial Decision became the decision of the Commission by Decision and Order issued February 12, 1959.

There are now before the undersigned for disposition motions which have been filed to dismiss this proceeding as to the remaining respondents, Fulton Bag and Cotton Mills, and Equitable Paper Bag Co. Counsel for respondent Fulton Bag and Cotton Mills have moved to dismiss the complaint as to it on the ground substantially, that it has disposed of its multi-wall paper bag operations and that the matters asserted in the complaint against it are now moot. The facts with respect to said respondent' s disposition of its multi wall paper bag business are set forth in the affdavit of its acting president, attached to said motion. Counsel supporting the complaint have filed answer to said motion stating that they do not oppose the granting thereof. Counsel supporting the complaint have themselves moved to dismiss the complaint as to the respondent Equitable Paper Bag Co., on the ground, substantially, that it will be the only respondent remaining in the proceeding, and that it would not be in the public interest to expend the time and money which would be necessary in order to proceed against said respondent in view of the fact that the order agreed to by the other respondents will effectively deal with the acts and practices charged in the complaint.

The undersigned is of the opinion, based on the facts set forth in the affdavit attached to the motion of respondent Fulton Bag and Cotton Mills, and the lack of opposition by counsel supporting the complaint, that this proceeding may appropriately be dismissed as to said respondent, without prejudice. The undersigned is further of the opinion that this proceeding may also appropriately he dismissed as to respondent Equitable Paper Bag Co., as the only respondent as to whom this proceeding would otherwise remain undisposed of in view of the approval by the Commission of the aforementioned agreements containing consent order to cease and desist.

1674 FEDERAL TRADE COM:\ISSION DECISIONS Decision 55 F.

This proceeding having now come on for final consideration as to respondents Fulton Bag and Cotton Mills, and Equitable Paper Bag Co., on motions to dismiss as to said respondents, and said motions to dismiss being unopposed, and it not appearing that the public interest requires a continuation of this proceeding as to said respondents It is ordered That the complaint herein be, and the same hereby is, dismissed as to respondents Fulton Bag and Cotton Mills, and Equitable Paper Bag Co. , without prejudice to the right of the Commission to issue a new complaint or to take such further action against the said respondents at any time in the future as may be warranted by the then existing circumstances. DECISION OF THE CO:\ MISSION Pursuant to Section 3. 21 of the Commission s Rules of Practice, the initial decision of the hearing examiner shall, on the 11th day of April 1959 , hecome the decision of the Commission. RONA Y, INC., ET AI,. 1675 Decision