Peace River Packing Company

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Ix THE IATTER OF PEACE RIVER PACKING CmIPANY CO::SE2\,TT ORDER, ETC. , IX REGARD TO THE :ALLEGED \'10LATrox OF SEc. 2(c) OF THE CLAYTON "'CT Docket 7929. Complaint, June.' , 1960-Decision, May 1961 Consent order requiring a citrus fruit packer in Fort Meade, 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. :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 (c) of Section 2 of the Clayton Act, as amended (e. , Title 15 , Section 13), hereby issues its complaint, stating its charges with respect thereto as follows: PARAGRAPH 1. R,respondent Peace River Packing Company is a corporation organized, 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 at Fort Meade, Florida, with its mailing address as Post Offee Box 248, Fort Meade, Florida. PAR. 2. Respondent is now and for tbe past several years has been engaged in the business of packing, seJJing and distributing citrus fruit, such as oranges, grapefruit and tangerines, all of which arc hereinafter sometimes referred to as citrus fruit or fruitpro(1uets. Respondent sells and distributes its citrus fruit through bro- , ,, 856 FEDERAL TRADE COMMISSIO DECISIO Decision 8 F.

kers, as wen as direct, to customers located in many sections of the Gnitec1 States. Respondent pays its brokers, when their services are utilized in making sales for it, a brokerage or commission, usually at the mte 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 several years, respondent has sold and distributed and is now sell ing and distributing its citrus fruit in commerce, as "commerce" is defined in the aforesaid Cbyton Act, as amended, to buyers located in the seveml 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, or other places in the State of Florida to such buyers, or to the buyers' customers, located in various other slates of the United Stales. Thus there has been at all times mentioned herein a, continuous course of trade in commerce in said citrus fruit across state lines between said respondent and the respective buyers of such citrus fruit.

PAR. 4. In the course and conduct of its business as aforesaid respondent has made substantial sales of cit.rus fruit to some, but not all: 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 own 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. , Title 15 , Section 13). fr. Cecil G. 11files and iffT. Ernest G. Barna for the Commission. o appearance for respondent.

INITIAL DECISTOX BY EARL tT. ICoLTI: HK\Into EXA.:\IIXER The complaint in this proceeding issued June 3, 1960, charges the respondent Peace River Packing Company, n. Florida corporation located at Fort Meade, Florida ith violation of Section 2(c) of the Clayton Act, as amended, in connection with packing, selling an(l distributing citrus fruit or fruit products. After the issuance of the complaint, respondent entered into an agreement containing consent order to cease and desist with counsel in support of the complaint, c11sposing of all the issues in this prn- PEACE RIVER PACKING CO 1PA.\TY 857 855 Order ceeding, which agreement was duly approved by the Associate Director of the Bureau of Litigation.

It was expressly provided in said agrcement that the signing thereof is for settlement purposes only and does not constitute an admission by respondent that it has violated the law as alleged in the complaint.

By the terms of said agreement, the respondent admitted all the jurisdictional facts alleged in the complaint and agreed that the record herein may be taken as if the Commission had made findings of jurisdictional facts in accordance with the allegations. By said agreement, the respondent expressly waived any further procedural steps before the hearing examiner and the Commission; the making of findings of fact or conclusions of 1a w; and al1 the rights it may have to clml1enge or contest the validity of the order to cease and desist entered in accordance with the agreement. Respondent further agreed that the order to cease and desist issued in accordance with said agreement, shall have the same force and effect as jf made after a full hearing. It was further provided that said agreement, together with the complaint, 8ha,11 constitute the entire record herein; that the complaint herein may be used in construing the terms of the order issued pursuant to said agreement; and that said order may be altered modified or set aside in the manner prescribed by the statute for orders of the Commission.

The hearing examiner has considered such agreement and the order therein contained, and, it appearing that said agreement and order provides for an a.appropriate disposition of this proceeding the same is hereby accepted and is ordered filed 11 pon becoming part. of the Commission s decision in accordance with Sections 3.21 and 2;'3 of the Hules of Pra.ctice, and, in consonance with the terms of said agreement the hearing exa.miner fil1ds that the Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent named herein: and issues the following Order:

ORDER It i8 ordered That the respondent, Peace River Packing Company, a corporation, a,nel 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 wllo is subject to the 858 FEDERAL TRADE CO::L\IISSIO DECISIONS Complaint 58 :F' direct or indirect control of such buyer, anything or value as a connnission, brokerage, or other compensation, or any allowance or discount in lieu thereof, upon or in connect.ion with any sale of citrus fruit or fruit products to such buyer for his own account. DECISIOX OF THE CO:\BIISSION AXD ORDER TO FILE REPORT OF COl\IPLIANCE Ul'Sllant to Section 3. 21 of the Commission s Rnles of Practice the initial decision of the hearing examiner shall, on the 1Dth day of :\fay 1!)()1 , become the decision of the Commission; and, accordingly: It f( ordered That. respondent herein shah, within sixty (60) days after service upon it or this order, file ,,-ith the Commission a report in 'Writing setting rorth in detail the manner and form in which