Lake Wales Citrus Growers Association, Inc.

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

Ix THE )I,YfTER OF LAKE WALES CITRLS GROWERS ASSOCIATIO~, JNC. CONSE:KT ORVER ETC. , n'- HEG \RD TO THE ALLEGED VIOLATION OF SEC. 2 (c) or THE CMYTO:\ ACT Docket 7928. Complaint, June S, 1960-Decisfon, May 19, 1961 Consent order requiring a Lake Wales, 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 O"\Vll accounts for resale. COJ'IPLAINT 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 (c) of Section 2 of the Clayton Aet, as amended (U. C. Title 15, Section 13), hereby issues its complaint, stating its charges with respect thereto as follows: PARAGRAPH 1. Respondent Lake .Wales Citrus Growers Association, Inc.. , is a corporation organized, existing and doing business under and by virtue of the laws of the State of Florida, with its offcc and principal place of business loeatecl at Xorth IValker Street Lake IVales, Florida, with mailing address as Post Offce Box 672 Lake Wales, Florida.

PAR. 2. Respondent is now and for the past several years has been engaged in the business of packiug, selling and distributing citrus fruit, such as oranges, tangerines Rnd grapcfruiL all of which are sometimes referred to as citrus fruit or fruit products. Respondent sens and distributes its citrus fruit through brokers, as well as direct to customers located in many sections of the United States. When brokers are utilized in making sales for it, respondent pays them for their services) usually at the rate of 10 cents per 1% bushel box except on auction sales, where the broker is compensated for his services usually at the rate of 8 cents per 1 % bnshel box. Respond- LAKE WALES CITRUS GROWERS ASSOCIATION, INC. 853 852 Decision cnt' s annual volume of business in the sale and distribution aT citrus Truit is substantial.

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 buycrs located in the several states of the United States other than the State 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, or other places within the State aT Florida, to such buyers, or to the buyers' customers, located in various other states aT the United States. Thus there has been at alj times mentioned herein a continuous COUfse of trade in commerce in said citrus fruit across state lines between respondent and the respective buyers of such citrus fruit.

PAR. 4. In the course and conduct of its business as aforesaid respondent has been and is now making substantial sales to some but not a11, of its brokers and other 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 CJayton Act, as amended (U. C. Title 15, Section 13). i'Jr. Oecil G. Miles and Mr. Kmest G. Barnes for the Commission. Mr. Oounts Johnson of Tampa, Fia., for respondent. INITAL DECISION BY EARL J. ICoLn, HEARING EXA:\:INER The complaint in this matter charges the respondent with violotion 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 intent of the complaint and of tbe proposed order to cease and desist.

The agreement provides, among other things, that respondent admits al1 of the jurisdictional allegations in the complaint; that 854 FEDERAL TRADE CO:MMISSIOK DECISIO Order 58 F.

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 conclu. sions of law in the decision disposing of this matter is waived together with any further procedural steps before the hearing examier and the Co=ission j 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 j 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 Rppropriate disposition of the proceeding, the agreement. is hereby accepted, the following jurisdictional findings made, and the following order issued:

, is 1. Respondent Lake Wales Citrus Growers Association, Inc. a corporation existing and doing business under and by virtue of t.he laws of t.he State of Florida, with its offce and principal place of business located at North vVaiker Street, in the City of Lake Wales, St.ate of Florida, with mailing address as Post Offce Box G72, Luke ,Vales, Florida.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent. ORDER It i8 ordered That the respondent Lake Wales Citrus Growers Association, Inc., 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 product.s 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 such buyers for his own account. PEACE RIVER PACKIG CQMPAx.l 855 852 Complaint DECISION Or' THE cO).UnSSION AND ORDER TO FILE REPORT OF CO IPLIAXCE The Commission having now determined that the hearing examiner s initial decision, filed January 25 , 19tH , is adequate.e and appropriate to dispose Df this proceeding:

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

It is further ordered That the respondent shall, within sixty (60) days after service upon it of this order, fie "with the Commission n 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 f1foresaid initial decision.