John S. Taylor Company (Inc.)

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

IN THE L-\TTEn OF JOHN S. TA YLOH COj\PA Y (DIC.

COXSEXT ORDER. ETC.. I REG \RD TO THE .\ALLEGED nOLATION OF SJeC. 2 ( c) OF Tile CLAYTON ACT Docket 7924. C01nplaint, June 1960-Decision, May 1961 Consent order requiring a Largo, Fla. , packer of citrus fruit 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. CO::IPLAINT The Fec1era.l Trade Commission, having reason to believe that the party respondent named in the caption hereof. fllc1 hereinafter more part1cuhrly described, has been and is now, iola.ting the proyisions of subsection (c) of Section 2 of the Chyton Act, as amended (D. C. Title 15 : Se,ction 13), hereby issues its complaint stating its charges "ith respect thereto ns follo"s: PAR.\GTI,\PII 1. Respondent ,John S. Tnylor Company (Ine. ) is a corporation organized, existing and doing business under and by virtue of t.he laws of the State of Florida, with its once and principal place of business located at Largo, Florida, witll mailing address as Post Offce Box 236. Largo, Florida. PAll. 2. Respondent is now and for the past several years has been engaged in the business of packing, se1Jing fl1cl distributing citrlls fruit, such as oranges, tangcr111CS and grapefruit, all of which are hereinafter sometimes referred to ns citrus fruit or fruit products. Respondent sells and distributes 11:5 citrus fruit through brokers, as well as direct, to customers located in many sections of the United Sillies. "'1'hen brokers are utilized in mn.king sales for it., respondent pays them for their services a brokerage or commission usually at the ritte of 5 cents per % bushel box or 10 cents per 1% bushel box. Respondent's flnnual volume of business in the sale and distribution of citrus fruit is sl1bstantittl. PAn. 3. In the course and conduct of its business over the, past several e8rs respondent hfls .;:old rmc1 d1stributecl and is now sell- JOHN S. TAYLOR COMP,,"Y (IKC. 841 840 Decision iug and clistribui ing 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 FIOl'ic1a in which respondent is located. Respondent transports or causes such citrus fruit, when solel, to be transported from its place of business 01' packing plant in the State of Florida, or other places within the State, to buyers or to the buyers' cllstomers located in various other states of the Unitell States. Thus there has been, at all times mentioned herein 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 an, of its brokers and other direct buyers purchasing for their O\yn account for resale, and on a large number of these sales respondent paid, granted or allowed, and is now paying, granting or allo\\-ing to these brokers and other direct buyers 011 their pnrchnses, a commission, brokerage, or other compensation or an allowance or discount in lieu thereof, in connection therewith. PAJL 5. T:le acts and practices of respondent: fls above alleged and described, arc in violation of subsection (0) of Section 2 of the Clayton Act, as amended (U. C. Title 15, Seetion 13). Jh. Oecil O. Miles and ilr. Emest O. Eames for the Commission. Jh. Oonnts Johnson of Tampa, Fla., for respondent. TXITL\L DECISJOX BY EARL J. KOLB, J-IEARING EXAJ'IlXER The complaint in this matter charges the respondent with violation of Section 2(c) of the Clayton Act, as amended. An agreement for disposition of the proceeding by means of a consent order has now been executed by re,sponclcnt and its counsel and counsel supporting the c.complaint a.nd submitted to the hearing examiner for his consideration. Attached to and made a part of the agrceme.nt is a stipulation 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 de,sist.

The agreement provides, among other things, that respondent admits nJ1 of the jurisdictional allegations in the. complaint; that the record on which the initiflJ decision and the decision of the Commission shan be based shall consist solely of the complaint and the agreement; that the inclusion of findings of fact and conclusions of bw in the decision disposing of this matter is \Valved, together with any fur! het procedural steps before the hearing examiner and the Commission; that. the oroer hereinafter set forth may be entered in 842 FEDERAL TRADE CO:\:\ISSION DECISIOKS Decision 58 F.

disposition of the proceeding, such order to have the same force and effect as if entered after a full hearing, respondent specifically waiving any and all rights to challenge or contest the validity of sllch order; that the order may be altered, modified or set aside in the manner provided for other orders 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 admission by respondent that it has violated the law as alleged in the complaint.

The hearing examiner having considered the agreement and the proposed order, and being of the opinion that t.hey provide an adequate basis for appropriate disposit.icn of the proceeding, the agreement is hereby accepted, the following jurisdictional findings made and the following order issued.

1. Respondent John S. Taylor Company (Inc. ) is a corporation existing and doing business under and by virtue of the laws of the State of Florida, with its offee and principal place of business located in the city of Largo, State of Florida, with mailing address as Post Offce Box 236, Largo, Florida.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent. ORDER It;8 o1'dencl That t.he respondent John S. Taylor Company (Ine. a corporation, and its offcers, agents, representatives and employees directly or through any corporate or other device, in connection with the sale or citrus rruit or rruit products in commerce, as "commerce': is defined in the aroresaid Clayton Act, do forthwith cease and desist from:

PRying, granting or allo\ving, directly or indirectly, to any buyer or to anyone acting ror or in behalf or, or who is subject to the direct or indirect control of such buyer, anything or value as a commission, brokerage, or other compensation, or any allowance or discount in lien thereof upon or in connection with any sale or citrus fruit or fruit products to such buyer for his own account. COMPLIANCE DECISION OF THE COl\unSSIQ:! AND ORDER TO FILE REPORT OF The Commission having now determined that the hearing examiner s initial decision, fied January 25, 1961, is adequate and appropriate to dispose or this proceeding:

It '/s ordeTecl That said decision be, and it hereby is, adoptBel as the c1eeision or the Commission.

SORRELLS BROS. PACKlNG CO., INC. 843 840 Complaint It i8 furthe1' ordered That the respondent shall, within sixty (60) days a.after service upon it of this order, file with the Commission a report, in \\Titing, setting forth in detail the manner and form in \which it has complied with the order to cease and desist contained in the aforesaid initial decision.

IN TUE l\iatter OF SORRELLS BI OS. PACKING CO. INC.

COXSE TT ORDER, ETC., IX REGARD TO THE ALLEGED VIO 4.'lox OF SEC. 2 (c) OF THE CLAYTON ACT Doclcet 7925. Complaint, June 3, 1960-Decision, May 1961 Consent order requiring a packer of citrus fruit in Arcadia, 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, COJ\IPLAIXT 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 (n. c. Title 15, Section 13), hereby issues its complaint, stating its charges with respect thereto as follows:

\RAGRAPH 1. Respondent Sorrells Bros. Packing Co. Inc. , is a corpora6on organized, existing and doing business under and by irtuc of the Jaws of thc State of Florida, with its offce and prin, cipal place of business located at Arcadia, Florida, with mailing address as Post Offce Box 551, Arcadia, Florida. Pc,,:, 2. Respondent is now and since 1056 has been engaged in the business of packing, selling and distributing citrus fruit, such as oranges, tangerines and grapefruit, all of which are hereinafter sometimes referred to as citrus fruit, or fruit products. Respondent sens and djstributes its citrus fruit through brokers as well as direct to customers located in many sections of the United States. Where brokers are utilized in making sales for it, the respondent pays them for their services a brokerage or commission, usually at the rate of 10 cents per 1% bushel box. Respondent's annual volume of busi, 11PSS in the sale and distribution of citrus fruit is substantial. PAR. 3. In the course and conduct of jts business over thc past seveml years, respondent has sold and distributed and is now selling and distributing its citrus fruit in commerce, as Hcommerce" is de- Decision 58 F.

fined in the aforesaid Clayton Act, as amended, to buyers located in the several states of thc United States other than the State of Florida in which respondent is located. R.respondent transports or causes such citrus fruit, ,vhen so1c, 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 t.he buyers' customers located in various other states of the united States. Thus there has been at an times mentioned herein a continuous course of trade in commerce in saiel 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 sales or citrusrespondent has been and is now mabng substantial fruit to some, but not aJ!, of its brokers and direct buyers purchasing for the.ir 0\\11 account for resale, and on a large number of these sales respondent paid, granted 01' allowed, and is now paying, grant.ing or allow-ing to these brokers and direct buyers on their purchases a commission, brokerage, or otller compensation, or an allowance or discount in Heu thereof, in connection therewith. PAn. 5. The acts and practices of respondent, as above alleged and described, are in violation of subsection (c) of Section 2 of the Clayton Act, as amended (u.S. C. Title 15, Section 13). .llr. Cecil J. Miles and Mr. Ernest G. Barnes for the Commission. .lh. William A. Jf cRae, Jr. of Bartow, Fla., for respondent. INITIAL DF.CISIOX BY EARL tT. rCOLE, HEARING EXA::HNER The complaint in this matter charges the respondent with violation of Section 2 (c) of the Cla,yton Aet, as amended. An agreement for disposition of the IJToceeding by means of a consent order has now been executed by respondent and its counsel and counsel supporting the complaint and submitted to the hearing examiner for part or the agreement is his consideration. Attacl1ec1 to and made a a stipulation entered into by the same parties for the purpose of making clear the intent of the complaint and oT the proposed order to ce,ase and desist.

that respondent The agreement provides, among other things, admits an of the jurisc1ictiomtl allegations in the complaint; that the record on which the initial decision and the decision of the Commission shall be based shan consist sale 1)' of the complaint and the agreement; that the ine111sion of findings of fact and conclusions of law in the decision disposing of this ITfl,tter 1S waiyec1, together with any furthCl' proeednral steps before the hearing examiner and t.he Commission; that the order hereinafter set forth may be entered in disposition of the proceeding, Sl1Cl1 order to have the same Torce SORRELLS BROS. PACKING CO. , IKC. 845 843 Decision and effect as if entered after a full hearing, respondent specifically waiving any and all rights to challenge or contest the validity of such order; that t.he order may be alt.ered, modified or set aside the manner provided for other ardors of the Commission; that the comphtint may be used in construing the terms of the order; and that the agreement is for settlement purposes only and does not constitute an admission by respondent that it has violated the law as alleged in the complaint.

The hearing examiner having considered the agreement and the proposed order, and being of the opinion that they provide an adequate basis for appropriate disposition of the proceeding, the agreement is hereby accepted, the following jurisdictional fmdings made and the following order issued:

1. I respondent Sorrells Bros. Packing Co. Inc. is a corporation existing and doing business under' and by virtue of the laws of the State of Florida, with its offce and principal place of business located in the City of Arcadia, State of Florida, with mailing address as Post GRice Box 551, Arcadia, Florida. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent. onder Ii is ordered That the respondent Sorrells Bros. Packing Co., Inc. a corporation, and its offcers, agents, representatives and employees directly or through any corporate or other device, in connection with the 8a1e of citrus fruit or fruit products in commerce, as "commece is deiined in the aforesaid Clayton Act, do forthwith cease and desist from:

RY1ng, 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 a commission brokerage, or other compensation, or any allowance or discount in eu thereof, upon or in connection with any sale of citrus fruit or fruit products to such buyer for his own account. DECJSIOX OF THE CO::n:UISSIQN AXD ORDER TO FILE REPORT OF COMPLIANCE The Commission 11aving now determined that the hea.ring examiner s i1l1tial decision, filed January 25, 1961 , is adequate and appropriate to dispose of this proceeding:

It i8 ordered That said decision be, and it hereby is, adopted os the decision of the Commission.

It is ,hwther ordered That the respondent shall, within sixty (60) ch:n after service upon it of this oreler, file witll the Commission a 846 FEDERAL TRADE CO:\:\ISSION DECISIONS COllplaillt 58 F.

report, in writing, setting forth in detail the manner and form in which it has complied with the order to cease and desist contained in the aforesa.id initial decision.