Stewart & Stevenson Services, Inc.

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

IN THE MATTER OF STEWART & STEVENSO:\ SERVICES, INC., F;T AL. CONSENT Order, ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 7002. ColllJla,int, Dec. 19/i7-Decision, May 23, 1959 Consent order requiring five franchised wholesale distributors of General Motors diesel engines and replacement parts to cease conspiring to fix maintain prices, terms, and conditions of sale for such replacement parts. Before 1111' Prank Hl:eT hearing examiner. M,' . F. C. Maye,., Mr. W. W. Rogal and Mr. F. A. Snyde,' for the Commission.

Fulb,.iqht, C,.ooke,., Fneman, Bates JawoTSki by M,' . W. N. A,.nold, .f. of Houston, Tex. , for Slewart & Stevenson Services, Inc.

Taylor, Costen Taylor by M,.. Hillnwn Taylor of Memphis Tenn. , for Lewis Diesel Engine Company (Inc. ) of Memphis Tenn., and Lewis Diesel Engine Company (Inc. ) of Little Rock Ark.

Manne/., Hayes, Bulli" , G,.ubl) Thompson by M,' . Coleman Hayes of Oklahoma City, Okla. , for Dicsel Power Company. Adams Reese by M,' . W. Ford Reese of New Orleans, La., for George Engine Company, Inc.

INITIAL DECISION AS TO CERTAIJ- RESPONDENTS Pursuant to the provisions of Section 5 of lhe Federal Trade Commission Act, the Federal Trade Commission on December 19, 1957, issued and subsequently served its complaint in this proceeding against respondents Stewart & Slevenson Services, Inc. Lewis Diesel Engine Company (Inc. ), of Memphis, Tenn. ; Lewis Diesel Engine Company (Inc. ), of Litte Rock, Ark. ; Diesel Power Company; and George Engine Company Inc. On March 10, 1959, there were submitted to the undersigned hearing examiner separate agreements by the above-named respondents and counsel supporting the complaint providing for the entry of a consent order. By the terms of said agreements the signatory respondents admit all the jurisdictional facts al- 1 A sirniJar order as to three other wholesalers was bsued 1'ov . 20, 19S9, 6 F. T. C. - , at which time the complaint was dismissed at to Kennedy Mari!le Engine Co., Inc. STEWART & STEVENSON SERVICES, INC., ET AL 187;i 1872 Decision leged in the complaint and agree that the record may be taken as if findings of jurisdictional facts had been duly made in accordance with such allegations. By such agreements, signatory respondents waive any further procedural steps before the hearing examiner and the Commission; waive the making of findings of fact and conclusions of law; and waive al1 of the rights they may have to challenge or contest the validity of the order to cease and desist entered in accordance with these agreements. Such agreements further provide that they dispose of all of this proceeding as to said parties; that the record on which this initial decision and the decision of the Commission shall be based shall consist solely of the complaint and these agreements; that the latter shall not become a part of the offcial record unless and until they become a part of the decision of the Commission; that these agreements are for settlement purposes only and do not constitute an admission by the signatory respondents that they have violated the law as alleged in tbe complaint; and that the following order to cease and desist may be entered in this proceeding by the Commission without further notice to said respondents, and, when so entered, it shall have the same force and effect as if entered after a full hearing, and may be altered, modified, or set aside in the manner provided for other) orders; and that the complaint may be used in construing the terms of the order.

The hearing examiner having considered the agreements and proposed orders, and being of the opinion that they provide an appropriate basis for settlement and disposition of this proceeding as to the signatory respondents, the agreements are hereby accepted, the following jurisdictional findings made, and the following order issued.

1. Respondent Stewart & Stevenson Services, Inc. , is a corporation existing and doing business under and by virtue of the laws of the State of Texas, with its principai place of business iocated at 1718 Congress Street, Houston, Tex. Respondent Lewis Diesel Engine Company (Inc. ), of Memphis Tenn., is a corporation existing and doing business under and by virtue of the Jaws of the State of Tennessee, with its offce and principal place of business located at 92 West Carolina Street Memphis, Tenn.

Respondent Lewis Diesel Engine Company (Inc. of Litte Rock, Ark. , is a subsidiary of Lewis Diesel Engine Company 1874 FEDERAL TRADE CO IMISSION DECISIONS Ordcr 55 F.

, and is a corporation existing and do- (Inc. ), of Memphis, Tenn. ing business under and by virtue of the laws of the State of Arkansas, with its offce and principal place of business located at 3021 East Broadway, in North Little Rock, Ark. Respondent Diesel Power Company is a corporation existing and doing business under and by virtue of tbe laws of the State of Oklahoma, with its principal place of business located at 1801 Xortheast 0th Street, Oklahoma City, Okla. Respondent George Engine Company, Inc. , is a corporation existing and doing business under and by virtue of the laws of the State of Louisiana, with its offce and principal place of business located at 630 Destrehan Avenue, Harvey, La. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDEI( It is or-dene! That respondents Stewart & Stevenson Services Inc., Lewis Diesel Engine Company (Inc. ), of Memphis, Tenn., and Diesel Power Company, their offcers, agents, representatives and employees, in or in connection with the offering for sale, sale or distribution of General Motors replacement parts for diesel engines 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 or among any two or more of said re- , v,with any spondents named in the above-entitled proceeding, Of other party, to do or to perform thc following: Establish, fix, or maintain prices, terms, or conditions of sale of General Motors replacement parts for diesel engines, or adhere to any prices, terms, or conditions of sale so fixed or maintained. Y"rther ardm' That the respondents Lewis Diesel Eng-ine Company (Inc. ), of Litte Rock, Ark. , and Gcorge Engine Company, Inc. , their respective offcers, agents, representatives and employees, in or in connection with the offering for sale, sale or distribution of General Motors replacement parts for diesel engines in commerce, as j'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, combina- STEWART & STlcVENSON SERVICES, INC., ET AL 1875 1872 Decision tion, or conspiracy between or among any two or more of said respondents named in the above-entitled proceeding, or with any other party, or between anyone or more of them and others not parties hereto to do or to perform the following: Establish, fix, or maintain prices, terms, or conditions of sale of General Motors replacement parts for diesel engines, or adhere to any prices, terms, or conditions of sale so fixed or maintained. 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 as to respondents Ste\vart & Stevenson Services, Inc. , Lewis Diesel Engine Company (Inc. ), of Memphis, Tenn., Lewis Diesel Engine Company (Inc. ), of Little Rock, Ark. , Diesel Power Company, and George Engine Company, Inc. did, on the 23d day of May 1959 become the decision of the Commission; and, accordingly: It is O1.dered That said respondents shall, within sixty (GO) days after service upon them of this order, file with the Commission a report in \vriiing setting forth in detail the nlanner and form in which they have complied with the order to cease and desist.

1876 FEDERAL TRADE COMMISSroN DECISroNS Decision 55 F.