Virginia Excelsior Mills, Inc.

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

In toe Marrer or VIRGINIA EXCELSIOR MILLS, INC., ET AL.

MODIFIED ORDER IN REGARD TO THE ALLEGED VIOLATION OL THE FEDERAL TRADE COMMISSION ACT Docket 6630. Order, May 6, 1960 Order modifying desist order of Oct. 25, 1957 (54 F.T.C. 455, 465), to earry out the direction of the Court of Appeals, Fourth Circuit, of June 4, 1958 (256 F. 2d 538, 6 S. & C.D; 428), to limit the prohibition against the maintenance of a common selling agent to its utilization in aid of the unlawful practices inhibited by preceding sections of the order. Before Mfr, Abner L. Lipscomb, hearing examiner. Mr, Floyd O. Collins for the Commission. Mason & Stehl, of Bowling Green, Va., and Daniel & Smith, of Washington, D.C., for respondent.

ORDER MODIFYING ORDER TO CEASE AND DESIST AND ORDER TO CEASE AND DESIST AS MODIFIED Respondents having filed in the United States Court of Appeals for the Fourth Circuit their petition for review of and to set aside or, in the alternative, to modify the order to cease and desist. issued by the Commission on the 25th day of October, 1957; and, the Court having heard the cause on briefs and oral argument and having thereafter, on the 4th day of June, 1958, handed down its opinion, and on the same date entered its decree, in which it modified the aforesaid order by “limiting the prohibition against the maintenance 13858 FEDERAL TRADE COMMISSION DECISIONS Order 56 F.T.C.

of a common selling agent to its utilization in aid of a purpose which could not be lawfully accomplished under the order by a direct agreement among the participating producers” and, as thus modified, - affirmed and enforced the said order; and, The Commission being of the opinion that its said order to cease and desist issued on the 25th day of October, 1957, as aforesaid, should be modified so as to bring it into conformity with the decision of the United States Court of Appeals for the Fourth Circuit; it is therefore, Ordered, That the said order to cease and desist. be modified by striking therefrom paragraph numbered 1, renumbering the remaining numbered paragraphs and adding the following paragraph to be numbered 6:

6. Operating, maintaining or utilizing Respondent Virginia Excelsior Mills, Inc., or any other central agency, as an instrument or medium for promoting, aiding, or making more effective any cooperative or concerted efforts to suppress or eliminate competition by or through any of the means or methods set forth in the preceding paragraphs numbered 1 to 5, inclusive, of this order; and as thus modified to issue and serve upon Respondents the following modified order:

It 7s ordered, That respondents Virginia Excelsior Milis, Inc., a corporation, W. H. Baker, T. Frank Flippo, H. L. Taylor and F. C. Flippo, individuals and officers of Respondent Virginia Excelsior Mills, Inc., T. Frank Flippo, F. Carter Flippo and Arthur P. Flippo, individuals and copartners trading as T. F. Flippo & Sons, H. L. Taylor, H. Ashton Taylor, G. K. Coleman, Sr., and G. K. Coleman, Jr., individuals and copartners trading as Ruther Glen Excelsior Company, T. Nelson Haley and Jesse C. Haley, individuals and copartners trading as Haley Excelsior Company, W. H. Baker, an individual trading as Hallsboro Manufacturing Company, S. D. Quarles and J. R. Gilman, individuals and copartners trading as Penola Excelsior Company, C. J. Haley, an individual trading as Ashland Excelsior Company, H. L. Taylor and Thomas H. Chewning, individuals and copartners trading as Caroline Excelsior Company, and as Chilesburg Excelsior Company, Benjamin Jeter, an individual trading as Benjamin Jeter, 5S. D. Quarles Lumber Company, Inc., a corporation, C. T. Smith, an individual trading as C. T. Smith, Ray S. Campbell, Addie C. Doswell, Elhot Campbell, E. May Campbell, and Bessie S. Campbell, individuals and copartners trading and doing business as Milford Excelsior Company, and said respective Respondents’ officers, agents, representatives and employees, in or in connection with the production, offer- VIRGINIA EXCELSIOR MILLS, INC., ET AL. 1359 13857 - Order ing for sale, sale or distribution in commerce, as “commerce” is defined in the Federal Trade Commission Act, of excelsior, do forthwith cease and desist from entering into, continuing, cooperating in, or carrying out any combination, agreement, understanding, or planned: common course of action between any two or more of said respondents, or between or among any one or more of said respondents and others not parties hereto, to do or perform any of the following acts or practices:

1. Fixing the selling price of excelsior or maintaining any prices so fixed;

2. Fixing or in any wise regulating production quotas; 3, Restricting manufacturers in selling and offering excelsior for sale by a. designating the party to whom they or either of them can sell; b. designating the party to whom they or either of them can offer to sell;

c. designating the party to whom they or either of them can quote prices; 3 1 3 8 0 0 551 1533 1309 89 -1 4 1 3 8 1 0 595 1533 1265 48 -1 5 1 3 8 1 1 595 1541 31 31 92.348930 d.5 1 3 8 1 2 652 1538 218 43 96.766281 designating5 1 3 8 1 3 887 1538 58 31 96.737297 thes 1 3 8 1 4 962 1537 109 41 96.955307 prices5 1 3 8 1 5 1089 1536 110 32 96.950851 which5 1 3 8 1 6 1218 1536 81 41 96.871819 they5 1 3 8 1 7 1318 1546 37 20 96.640495 or5 1 3 8 1 8 1374 1535 107 31 96.692566 either5 1 3 8 1 9 1499 1534 38 32 96.463104 of5 1 3 8 1 10 1555 1533 91 32 96.463104 them5 1 3 8 1 11 1665 1543 61 21 96.950813 cans 1 3 8 1 12 1744 1535 116 37 94.063683 quote;4 1 3 8 2 0 551 1602 37 20 -1 5 1 3 8 2 1 551 1602 37 20 96.546974 or3 1 3 9 0 0 552 1631 1310 100 -1 4 1 3 9 1 0 593 1631 1269 49 -1 5 1 3 9 1 1 593 1652 26 19 86.517731 e.5 1 3 9 1 2 644 1638 170 42 96.446228 imposing5 1 3 9 1 3 838 1648 66 30 96.331848 any5 1 3 9 1 4 928 1638 96 30 96.976021 others 1 3 9 1 5 1047 1636 203 40 96.781799 restriction,5 1 3 9 1 6 1273 1646 38 20 96.997841 or5 1 3 9 1 7 1333 1635 180 40 96.403931 enforcing5 1 3 9 1 8 1537 1644 63 30 96.661919 any5 1 3 9 1 9 1626 1632 79 32 91.010490 such5 1 3 9 1 10 1731 1631 131 31 91.010490 restric-4 1 3 9 2 0 552 1686 927 45 -1 5 1 3 9 2 1 552 1691 70 31 96.376587 tions 1 3 9 2 2 640 1691 43 40 96.651016 by5 1 3 9 2 3 700 1690 57 32 96.488731 thes 1 3 9 2 4 773 1688 196 41 95.733688 imposition5 1 3 9 2 5 986 1687 37 32 96.856659 of5 1 3 9 2 6 1039 1686 176 42 96.862770 penalties,5 1 3 9 2 7 1231 1697 39 20 96.997444 or5 1 3 9 2 8 1286 1686 193 39 93.301170 otherwise5 1 3 9 2 9 1462 1682 18 53 93.195343 ;3 1 3 10 0 0 594 1737 872 42 -1 4 1 3 10 1 0 594 1737 872 42 -1 5 1 3 10 1 1 594 1744 29 28 94.830605 4.5 1 3 10 1 2 647 1739 213 40 93.095222 Classifying5 1 3 10 1 3 880 1737 160 32 92.254875 excelsior5 1 3 10 1 4 1059 1737 56 31 96.567444 for5 1 3 10 1 5 1132 1737 136 41 96.271950 pricing5 1 3 10 1 6 1287 1747 179 30 86.192894 purposes;3 1 3 11 0 0 552 1785 1312 145 -1 4 1 3 11 1 0 594 1785 1268 45 -1 5 1 3 11 1 1 594 1794 27 27 77.857330 5,5 1 3 11 1 2 644 1789 229 41 96.550873 Designating5 1 3 11 1 3 890 1788 189 31 96.513138 conditions5 1 3 11 1 4 1095 1787 108 31 96.565750 under5 1 3 11 1 5 1219 1787 111 31 96.565750 which5 1 3 11 1 6 1346 1787 74 31 96.230125 mills 1 3 11 1 7 1438 1797 129 21 96.230125 owners5 1 3 11 1 8 1584 1787 75 31 96.426971 who5 1 3 11 1 9 1676 1797 75 21 96.637581 owns 1 3 11 1 10 1768 1785 94 32 96.560196 stock4 1 3 11 2 0 553 1835 1311 46 -1 5 1 3 11 2 1 553 1842 34 30 96.442459 in5 1 3 11 2 2 608 1840 205 41 95.128098 respondents 1 3 11 2 3 831 1838 161 41 95.859886 Virginia5 1 3 11 2 4 1010 1837 175 32 95.859886 Excelsior5 1 3 11 2 5 1203 1836 107 41 93.301155 Mills,5 1 3 11 2 6 1330 1837 82 39 92.589523 Inc.,5 1 3 11 2 7 1429 1847 78 30 96.993927 may5 1 3 11 2 8 1528 1836 59 32 95.494949 sells 1 3 11 2 9 1607 1836 90 31 96.474304 theirs 1 3 11 2 10 1715 1835 90 31 96.455124 mills5 1 3 11 2 11 1825 1845 39 21 96.982147 or4 1 3 11 3 0 552 1891 187 39 -1 5 1 3 11 3 1 552 1891 170 32 84.526947 machines5 1 3 11 3 2 732 1902 7 28 89.808411 ;3 1 3 12 0 0 551 1935 1313 302 -1 4 1 3 12 1 0 594 1935 1268 47 -1 5 1 3 12 1 1 594 1944 27 30 96.387733 6.5 1 3 12 1 2 646 1940 202 42 96.815392 Operating,5 1 3 12 1 3 865 1938 229 41 96.486748 maintaining5 1 3 12 1 4 1110 1949 38 20 96.947479 or5 1 3 12 1 5 1165 1937 160 42 96.766922 utilizing5 1 3 12 1 6 1343 1937 205 41 96.668785 respondents 1 3 12 1 7 1564 1935 163 43 93.291573 Virginia5 1 3 12 1 8 1744 1935 118 33 91.522064 Excel-4 1 3 12 2 0 551 1987 1313 45 -1 5 1 3 12 2 1 551 1993 69 32 92.426140 sior5 1 3 12 2 2 643 1992 106 40 93.278488 Mills,5 1 3 12 2 3 773 1991 83 40 93.105202 Inc.,5 1 3 12 2 4 880 2001 38 21 96.889336 or5 1 3 12 2 5 942 2001 66 30 96.812698 any5 1 3 12 2 6 1033 1989 95 31 96.618858 others 1 3 12 2 7 1153 1988 126 32 96.239426 central5 1 3 12 2 8 1306 1998 137 31 96.730904 agency,5 1 3 12 2 9 1468 1998 36 22 95.704361 as5 1 3 12 2 10 1529 1998 42 21 95.704361 an5 1 3 12 2 11 1597 1987 204 32 95.881302 instruments 1 3 12 2 12 1825 1995 39 21 95.881302 or4 1 3 12 3 0 552 2037 1310 45 -1 5 1 3 12 3 1 552 2043 147 32 96.055573 mediums 1 3 12 3 2 717 2043 56 31 96.055573 for5 1 3 12 3 3 789 2040 207 42 95.737740 promoting,5 1 3 12 3 4 1012 2039 127 41 96.630966 aiding,5 1 3 12 3 5 1157 2049 37 21 96.843353 or5 1 3 12 3 6 1210 2038 142 41 96.427849 making5 1 3 12 3 7 1366 2049 93 20 95.820511 more5 1 3 12 3 8 1475 2037 152 32 96.775444 effective5 1 3 12 3 9 1644 2047 65 30 93.274544 any5 1 3 12 3 10 1728 2046 134 31 92.217972 cooper-4 1 3 12 4 0 553 2086 1309 45 -1 5 1 3 12 4 1 553 2094 89 32 96.674782 atives 1 3 12 4 2 661 2104 37 21 96.674782 or5 1 3 12 4 3 717 2091 176 34 96.743065 concerted5 1 3 12 4 4 911 2091 117 32 96.647705 efforts5 1 3 12 4 5 1045 2094 35 28 96.983299 to5 1 3 12 4 6 1099 2100 159 31 96.407837 suppress5 1 3 12 4 7 1276 2100 40 20 96.310593 or5 1 3 12 4 8 1333 2088 173 32 96.407272 eliminates 1 3 12 4 9 1524 2087 219 41 96.421631 competitions 1 3 12 4 10 1761 2086 44 41 96.416718 by5 1 3 12 4 11 1825 2096 37 21 96.416718 or4 1 3 12 5 0 551 2136 1313 49 -1 5 1 3 12 5 1 551 2143 149 42 96.763229 through5 1 3 12 5 2 727 2154 66 30 96.173393 any5 1 3 12 5 3 817 2142 39 31 96.429604 of5 1 3 12 5 4 880 2141 58 32 96.815842 thes 1 3 12 5 5 961 2151 115 22 96.461548 means5 1 3 12 5 6 1099 2151 40 21 96.666122 or5 1 3 12 5 7 1162 2139 154 32 96.281654 methods5 1 3 12 5 8 1342 2142 49 28 96.799065 sets 1 3 12 5 9 1416 2139 95 31 96.185844 forth5 1 3 12 5 10 1537 2138 36 32 96.143105 in5 1 3 12 5 11 1598 2138 58 31 96.143105 thes 1 3 12 5 12 1680 2136 184 42 96.431145 preceding4 1 3 12 6 0 553 2189 997 48 -1 5 1 3 12 6 1 553 2195 214 42 96.662048 paragraphs5 1 3 12 6 2 781 2192 181 33 96.739128 numbered5 1 3 12 6 3 979 2194 16 30 96.237885 15 1 3 12 6 4 1012 2196 35 28 96.380310 to5 1 3 12 6 5 1063 2194 29 38 96.537140 5,5 1 3 12 6 6 1108 2190 173 41 96.200066 inclusive,5 1 3 12 6 7 1297 2190 37 31 96.507454 of5 1 3 12 6 8 1349 2189 69 32 96.628952 this5 1 3 12 6 9 1435 2189 115 40 93.037102 order;3 1 3 13 0 0 551 2238 1313 244 -1 4 1 3 13 1 0 593 2238 1269 47 -1 5 1 3 13 1 1 593 2247 35 30 94.796196 It5 1 3 13 1 2 647 2247 29 30 94.796196 is5 1 3 13 1 3 694 2244 139 41 96.402496 furthers 1 3 13 1 4 851 2242 153 39 96.402496 ordered,5 1 3 13 1 5 1021 2243 92 31 96.715790 That5 1 3 13 1 6 1131 2241 58 31 96.393875 thes 1 3 13 1 7 1207 2240 188 41 96.515419 complaints 1 3 13 1 8 1412 2240 128 38 96.515419 herein,5 1 3 13 1 9 1559 2238 132 32 83.813873 insofar5 1 3 13 1 10 1711 2248 37 21 96.751335 as5 1 3 13 1 11 1766 2238 29 31 93.014465 it5 1 3 13 1 12 1814 2248 48 19 92.702202 re-4 1 3 13 2 0 551 2286 1312 49 -1 5 1 3 13 2 1 551 2298 84 31 96.992508 lates5 1 3 13 2 2 658 2300 34 27 96.298447 to5 1 3 13 2 3 717 2294 221 41 96.298447 respondents5 1 3 13 2 4 961 2293 147 32 93.295738 Thomas5 1 3 13 2 5 1130 2292 39 31 92.894318 L.5 1 3 13 2 6 1194 2291 162 41 96.881721 Blanton,5 1 3 13 2 7 1379 2290 99 33 96.338913 Noah5 1 3 13 2 8 1501 2289 155 40 96.449921 Markey,5 1 3 13 2 9 1681 2286 182 35 96.680710 Catherine4 1 3 13 3 0 552 2337 1311 52 -1 5 1 3 13 3 1 552 2348 37 33 86.593010 C.5 1 3 13 3 2 611 2346 142 43 96.065094 Wright5 1 3 13 3 3 775 2345 67 32 96.065094 ands 1 3 13 3 4 865 2344 157 41 93.301346 Dorothy5 1 3 13 3 5 1044 2343 41 31 91.706467 E.5 1 3 13 3 6 1109 2341 189 42 96.449013 Campbell,5 1 3 13 3 7 1319 2341 51 40 96.397820 be,5 1 3 13 3 8 1394 2340 66 32 95.871109 ands 1 3 13 3 9 1483 2340 58 31 96.739380 thes 1 3 13 3 10 1564 2350 91 21 95.887413 same5 1 3 13 3 11 1675 2337 125 41 96.422462 hereby5 1 3 13 3 12 1825 2337 38 39 95.638611 is,4 1 3 13 4 0 554 2388 1310 48 -1 5 1 3 13 4 1 554 2397 175 34 96.455856 dismissed5 1 3 13 4 2 750 2396 146 32 96.434265 without5 1 3 13 4 3 914 2394 174 42 96.726097 prejudice5 1 3 13 4 4 1107 2397 35 28 97.011703 to5 1 3 13 4 5 1162 2393 56 32 97.010254 thes 1 3 13 4 6 1238 2392 96 42 96.857506 rights 1 3 13 4 7 1353 2391 38 31 96.229538 of5 1 3 13 4 8 1409 2391 59 32 95.955254 thes 1 3 13 4 9 1487 2389 225 34 95.955254 Commissions 1 3 13 4 10 1731 2392 35 28 96.290878 to5 1 3 13 4 11 1785 2388 79 31 96.980881 take4 1 3 13 5 0 553 2442 1091 40 -1 5 1 3 13 5 1 553 2451 79 31 95.632240 such5 1 3 13 5 2 653 2448 111 32 95.567482 actions 1 3 13 5 3 784 2447 34 31 96.828079 in5 1 3 13 5 4 838 2446 58 31 96.802055 thes 1 3 13 5 5 914 2445 117 31 96.694252 futures 1 3 13 5 6 1050 2455 35 21 96.427750 as5 1 3 13 5 7 1102 2444 58 31 96.219109 thes 1 3 13 5 8 1179 2443 89 31 96.279083 facts5 1 3 13 5 9 1286 2453 79 29 96.078392 may5 1 3 13 5 10 1384 2442 81 31 96.532974 then5 1 3 13 5 11 1484 2445 160 28 96.600548 warrant.3 1 3 14 0 0 553 2488 1312 303 -1 4 1 3 14 1 0 593 2488 1271 51 -1 5 1 3 14 1 1 593 2500 36 32 88.642181 It5 1 3 14 1 2 648 2500 28 31 95.021049 is5 1 3 14 1 3 694 2497 139 42 96.684845 furthers 1 3 14 1 4 851 2494 152 42 96.585091 ordered,5 1 3 14 1 5 1021 2495 92 32 96.989876 That5 1 3 14 1 6 1131 2492 233 42 96.708344 respondents,5 1 3 14 1 7 1382 2491 162 42 96.888435 Virginia5 1 3 14 1 8 1562 2489 177 33 96.634941 Excelsior5 1 3 14 1 9 1758 2488 106 38 89.652451 Mills,4 1 3 14 2 0 553 2538 1311 52 -1 5 1 3 14 2 1 553 2552 83 38 82.919426 Inc.,5 1 3 14 2 2 652 2561 18 20 94.405220 a5 1 3 14 2 3 685 2548 227 42 93.252747 corporation,5 1 3 14 2 4 926 2548 54 30 92.991203 W.5 1 3 14 2 5 996 2546 45 32 90.071365 H.5 1 3 14 2 6 1057 2545 124 39 93.205902 Baker,5 1 3 14 2 7 1195 2545 40 30 89.364944 T.5 1 3 14 2 8 1250 2544 118 31 93.274704 Frank5 1 3 14 2 9 1384 2542 138 41 92.693008 Flippo,5 1 3 14 2 10 1537 2542 46 31 89.725990 H.5 1 3 14 2 11 1599 2542 38 30 91.931114 L.5 1 3 14 2 12 1654 2540 127 41 96.900650 Taylor5 1 3 14 2 13 1798 2538 66 32 96.544884 anda 1 3 14 3 0 553 2590 1312 51 -1 5 1 3 14 3 1 553 2603 39 31 79.119087 F.5 1 3 14 3 2 613 2601 37 33 91.594627 C.5 1 3 14 3 3 670 2600 138 41 93.119064 Flippo,5 1 3 14 3 4 827 2597 209 32 96.576088 individuals5 1 3 14 3 5 1056 2596 66 31 96.576088 ands 1 3 14 3 6 1143 2594 123 32 96.395584 officers5 1 3 14 3 7 1286 2593 38 32 96.957886 of5 1 3 14 3 8 1343 2593 73 32 96.867241 said5 1 3 14 3 9 1436 2591 228 43 93.237457 corporation,5 1 3 14 3 10 1684 2590 39 32 70.708511 F.5 1 3 14 3 11 1744 2590 121 33 96.970238 Carter4 1 3 14 4 0 553 2639 1311 54 -1 5 1 3 14 4 1 553 2653 138 40 91.248459 Flippo,5 1 3 14 4 2 711 2650 135 33 93.296829 Arthur5 1 3 14 4 3 868 2649 37 31 91.677994 P.5 1 3 14 4 4 928 2648 138 40 92.897575 Flippo,5 1 3 14 4 5 1087 2647 46 31 93.182045 H.5 1 3 14 4 6 1155 2646 135 31 96.699280 Ashton5 1 3 14 4 7 1312 2644 139 42 93.025795 Taylor,5 1 3 14 4 8 1474 2644 40 32 88.255249 G.5 1 3 14 4 9 1537 2643 44 31 87.335724 K.5 1 3 14 4 10 1606 2641 171 40 93.287567 Coleman,5 1 3 14 4 11 1800 2639 64 40 90.389214 Sr.,4 1 3 14 5 0 554 2690 1310 50 -1 5 1 3 14 5 1 554 2704 41 32 92.495636 G.5 1 3 14 5 2 613 2704 44 31 92.501976 K.5 1 3 14 5 3 676 2702 172 38 93.293892 Coleman,5 1 3 14 5 4 865 2700 64 38 92.627304 Jr.,5 1 3 14 5 5 946 2699 39 31 92.091881 T.5 1 3 14 5 6 1003 2698 124 31 96.645981 Nelson5 1 3 14 5 7 1144 2696 125 41 96.480118 Haley,5 1 3 14 5 8 1287 2695 94 33 93.172440 Jesse5 1 3 14 5 9 1399 2694 37 33 92.965790 C.5 1 3 14 5 10 1453 2694 125 40 93.176239 Haley,5 1 3 14 5 11 1597 2692 33 33 90.333374 S.5 1 3 14 5 12 1648 2692 43 32 88.304192 D.5 1 3 14 5 13 1711 2690 153 39 95.659515 Quarles,4 1 3 14 6 0 553 2742 1312 49 -1 5 1 3 14 6 1 553 2755 33 33 90.397728 J.5 1 3 14 6 2 607 2754 41 32 90.271141 R.5 1 3 14 6 3 670 2752 150 39 93.269272 Gilman,5 1 3 14 6 4 841 2749 37 34 92.434982 C.5 1 3 14 6 5 900 2749 32 33 96.726212 J.5 1 3 14 6 6 952 2749 124 40 96.320084 Haley,5 1 3 14 6 7 1097 2748 148 31 93.246857 Thomas5 1 3 14 6 8 1265 2746 47 31 93.003296 H.5 1 3 14 6 9 1335 2744 199 42 91.586357 Chewning,5 1 3 14 6 10 1555 2742 182 42 96.621338 Benjamin5 1 3 14 6 11 1760 2742 105 38 96.668076 Jeter, Decision 56 F.T.C.

S. D. Quarles Lumber Company, Inc., a corporation, C. T. Smith, Ray S. Campbell, Addie C. Doswell, Elliot Campbell, E. May Campbell, Bessie S. Campbell, shall, within sixty (60) days after service upon them of this modified order, file with the Commission a report, in writing, setting forth in detail the manner and form in which they have complied with the modified order to cease and desist.