Battaglia Fruit Company, Inc.

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Ix THE 1ATTR OF BATTAGLIA FHUIT CO:MPAKY, INC.

COX SENT ORDER, ETC., IX REGARD TO THE ALLEGED VIOLATIOK OF SEC. 2 ( c) OF Tile ala YTON ACT Docket 7922. Complaint, June 1960 Decision, May, 1961 Consent order requiring a packer of citrus fruit in Winter Garden, Fla., to cease violating Sec. 2(c) of the Clayton Act by paying brokerage, or its equivalent, to customers making purchases for their own accounts for resale.

COMPLAINT The Federal Trade Commission, having reason to believe that the party respondent named in the caption hereof, and hereinafter more particularly described, has been and is now violating the provisions of subsection (e) of Section 2 of the Clayton Act, as amended (U. C. Title 15, Section 13), hereby issues its complaint, stating its charges with respect thereto as follows: PARAGIL\PH 1. Respondent Battag1ia Fruit Compn,ny, Inc. is a corporation organized, existing and doing business under and by virtue of the Jaws of the State of Florida with its offce flnd prin- , withcipa1 place of business located at .Winter Garden, Florida mailing arlc1ress as Post Offce Box 398 , ,Vinter Garden, Florida. PAn. 2. Respondent is now and since January 1 , 1957 has been engaged in the business of packing, selling and distribut.ing citrus fruit, such as ora,nges, tangerines and grapefruit, all of which are hereinafter referred to as citrus fruit or fruit products. R.esponclas well nsent sells and distributes its citrus fruit through brokers, direct, to customers located in many sections of t.he United States. when brokers are utilized in making sales for it, respondent pays nsnally at thethem for their services a brokerage or commission, rate of 10 cents per 1% bushel box, or equivalent. Respondent's annual volume of business in the sale and distribution of citrus fruit is substantial.

PAR. 3. In the course and conduct of its business over the past several1 years, respondent has sold and distributed and is nO\j' selling BATTAGLIA FRVIT COMPfu'lY , L'IC. 835 834 Decision and distributing its citrus fruit in commerce, as "commerce" is defined in the aforesaid Clayton Act, as amended, to buyers located in the several states of the United States other than the State of Florida in which respondent is located. Respondent transports or causes such citrus fruit, when sold, to be transported from its place of business or packing plant in the State of Florida, or from other places within the State, to such buyers or to the buyers' customers located in various other states of the 17nitecl States. Thus there has been, at all times mentioned herein, a continuous course of trade in commerce in such citrus fruit across state lines between said respondent and the respective buyers of such fruit. PAR. 4. In the course and conduct of its business as aforesaid respondent has been and is now making substantial sales of citrus fruit to some, but not all, of its brokers and direct buyers purchasing for their own account . for resale, and on a large number of these sales respondent paid, granted or allowed, and is now paying, granting or allowing to these brokers and other direct buyers on their purchases, a commission, brokerage, or other compensation, or an allowance or discount in lieu thereof, in connection there,\vit, PAR. 5. The acts ancl practices of respondent, as above alleged tl1cl described, are in violation of subsection (c) of Section 2 of the Clayton Act, as amended (U. C. Title 15 , Seetion 13). 1Jr. Oecil G. lIiiles and Mr. E1'1ceSt G. Barnes for the Commission. 3/1. Byrne Litschgi of Coles, Himes il Litschgi of Tampa, Fla. 101' respondent.

I XITIAL DECISION BY EARL J. I(oL1 , I-IEARIXG EXAMINER The complaint in this matter cJ1argues the respondent \with violotion of Section 2 (c) of the Clayton Act, as amended. JU1 agreement for disposition of the proceeding by means of a consent. order has now been executed by respondent and its counsel and counsel support jug the complaint and submitted to the hearing examiner for his consideration. Attached to and made a part of the agree ment is a st.ipulation entered into by the same parties for the purpose of making clear the intent of the complaint and of the proposed order to cease and desist.

The agreement provides, among other things: that respondent admits all of the jurisdictional allegations in the comphlint; that the record on "which the initial decision and the decision of the Comm-ission shall be based shah consist solely of the complaint and the agreement; that the inclusion of findings of fact or conclusions of law in the dec-isjoll disposing of this matter is waived together with any further procedural steps before the hearing ex- ., 836 :B'EDERAL TRADE C01vLYIISSIO DECISIO Decision i:S F. aminer and the Commission; that the order hereinafter set forth may be entered in disposition of the proceeding: such order to have rhe same force and eilect as if entered after a full hearing, respondent specifically waiving any and all rights to challenge or contest the validity of such order; that the order may be altered, modified or set aside in the manner provided for otller o1'ders of the Commission; that the complaint may be used in construing the terms of the order; and that the agreement is for settlement purposes only and does not constitute an a,admission by respondent that it hns loJatec1 the law as alleged in the complaint. The hearing examiner having consi(lcl'ed the agreement and the proposcll order, nnd being of the opinion that they provide an adequate basis for appropriate disposition of the proceeding, the agreement is hereby accepted, the following jurisdictional findings made and the follmving order issued:

1. R.esponclent Battaglia Fruit Company, Inc. , is a corporation existing and doing business under and by virtue of the la\\s of the State of Florida, with its ofiice and principal place of business located in the City of 'Winter Garden, State of Florida, with mailing address as Post omce Box 3B8 , ';Vinter Garc1en Florida. 2. The Fcde.ral Trade Commission has jurisdiction of the subject. matter of this proceeding and of the respondent. ORDER It ,is onlered That the respondent Battaglia Fruit Company, Inc.. a corporation, and its offcers, agents, representatives and employees directly 01' through any corporate or other device, in connection with the sale of citrus fruit or fruit products in commerce; as "commerce:' is defined in the aforesaid Clayton Act, do fort.hwith cease nd desist from:

Paying, granting or allowing; directly or indirectly, to any buyer or to anyone acting for or in behalf of, or who is subject to the direct or indirect control of such buyer, anything of value as n comm1Sslon, brokerage, or other compensation, or an:,)" allowa.nce or discount in lieu thereof, upon or in connection with any sale of citrus fruit or fruit products to such buyer for his 0\\11 account. DECISION OF THE COJ\C\IlSSION AND ORDER TO FILE REPORT O.F COJ\IPLIA)lce Pursuant to Section 3.21 of the Commission s Hules of l practice the initial decision of the hearing examiner sha.ll, on the, 19th day of :May 1961, become the decision of the Commission; and, accordingly: It i8 ol'Ze1' That the respondent herein shall, within sixty (60) days after service upon it of this order, file with the. Commission it ZELLWOOD FRUIT DISTRIBUTORS, INC. 837 834 Complaint report in writing setting forth in detail thc manner and form in ,which it has complied with the order to cease and desist.