Lakeland Highlands Cooperative Association

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which it has complied with the order to cease and desist. Ix THE :.VA TIER OF LAKE LAND HIGHLANDS COOPERATIVE ASSOCIATION SENT ORDER, ETC. , 11\ REGARD TO ALLEGED 'VTOLATION OF SEC. 2 (C) OF THE CLAYTON ACT Docket 7927. Complaint, June 1960-Decision, May 19, 1961 Consent order requiring a packer of citrus fruit in Highland City-' , Fla., to cease violating See, 2(c) of the Clayton Act iJ y paying brokerage, 01' its equivalent, to customers making purchases for their OWIl accounts for resale. CO),fPLA1NT 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 violat.ing the provisions of subsection (c) of Section 2 of the Clayton Act, as amended (D. C. Title 15, Section 13), hereby issues its complaint, stating its charges with respect threto as follows:

PARAGRAPH 1. Respondent Lakeland Highlands Cooperative Associat.ion is a corporation organized, exist.ing and doing business under and by virtue of the laws of the State of Florida, with its offee and principal place of business located at Highland City, Florida, with mailing address as Post Offce Box 188, Highland City, Florida. PAR. 2. Respondent is now and for the past several years has been engaged in the business of packing, selling and distributing citrus fruit, such as oranges, tangerines and grapefruit, all of which are hereinafter referred to as citrus fruit or fruit products. Respondent sells and distributes its citrus fruit through brokers, as well as direct to customers located in many sections of the 'United States. \Vhen brokers are utilized in making sales for it, respondent pays t.hem for their services, a brokerage or commission at the follovdng rates: '0 cents per 1 % bushel box 5 cent.s per 1 % bushel box, f. b. the packers pla.nt-acceptance fial 10 cents for 14 five-pound bags 10 cents for 9 eight-pound bags 10 percent of invoiced price of the fruit. Respondent' s a.annual volume of business in the sale and distribution of eitrus fruit is substantial.

fi81- 237-(jS- Decision 58 F. 'J.

PAR. 3. In the course and conduct of its business over the past several years, respondent has sold and distributed and is now selling 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 United 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 therewith. PAR. 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. C. Title 15, Section 13). Mr. Oecil G. Miles and Mr. Ernest G. Barns for t.he Commission. Mr. J. Hardin Peterson of Lakeland, Fla., for respondent. INITIAL DECISION BY EARL J. KOLB, HEARING EXAl\IINER 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 respondent and its counsel and counsel supporting the complaint and submitted to the hearing examiner for his consideration. Attached to and made a part of the agreement is a stipulation entered into by the same parties for the purpose of making clear the int.ent of the complaint and of the proposed order t.o cease and desist.

The agreement provides, among other things, that respondent admits all of the jurisdictional allegations in the complaint.; that the record on which the initial decision and the decision of the Commission shall be based shall consist solely of the complaint and the agreement; that. the inclusion of findings of fact and conclusions of law in the decision disposing of this matter is waived, together LAKELAND mGHLAKDS COOPERATIVE ASSN. 851 849 Decision with any further procedural steps before the hearing examiner and the Commission; that the order hereinafter set forth may be entered in 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 such 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 they provide an adequate basis for appropriate disposition of the proceeding, the agreement is hereby accepted, the following jurisdictional findings made and the following order issued:

1. Respondent Lakeland Highlands Cooperative Association 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 Highland City, State of Florida, with mailing address as Post Offce Box 188, Highland City, Florida. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeeding and of the respondent. ORDER 1 t is ordered That the respondent Lakeland Highlands Cooperative Association, a corporation, and its offcers, agents, representatives, and employees, directly or 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 forthwith cease and 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 a commission, brokerage, or other compensation, or any allowance or discount in lieu thereof, upon or in connection with any sale of citrus fruit or fruit products to sllch buyer for his own account. DECISION OF THE COl\DfISSION AND ORDER TO FH,E REPORT OF CO?tfPLIAXCE The Commission having Ilow determined that the hearing exami. ner s initial decision, fied January 25 , 1961, is adequate and appropriate to dispose of this proceeding:

It is ordered That said decision be, and it hereby is, adopted as the decision or the Commission.

852 FEDERAL TRADE COMMISSIOK DECISIO:.S Complaint 5S F.

It is further ordered That the Respondent shall, within sixty (60) days after service upon it of this order, fie with the Commission a report, in writing, setting forth in detail the manner and form in which it has complied ",'ith the order to cease and desist contained in the aforesaid initial decision.