Holly Hill Fruit Products, Incorporated

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Ix THE l\1:ATTER OF HOLLY HILL FRUIT PRODUCTS, INCORPORATED CONSENT mlDER, ETC., IX REGARD TO ALLEGED VIOLATION OP SEC. 2(c) OF THE CLAYTON ACT Docket 7934. Complaint, June S, 1960-Decision, May 19, 1961 Consent order requiring a citrus fruit packer in Davenport, 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. CO:\fPLAINT The Federal Trade Commission, having reason to believe that the party respondent named in the caption hereof, and hereinafter more part.icularly 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: P AHAGTIAPH 1. Eespondent Holly Hi1 Fruit Products, Incorporat.ed is a corporation organized, existing and doing business under and by virtue of the la,," of the State of Florida, with its offce and priucipaJ place of business located at Davenport, Florida, wjth mailing address as Post Offce Box 5 Davenport, Florida. PAn. 2. Respondent is now and for the past several years has been engaged in the business of packing, se11iug and distributing citrus fruit, such as oranges, tangerines and gra.pefruit, a11 of which are hereinafter referred to as citrus fruit or fruit products. Respondent sells and distrjbutes its citrus fruit through brokers, as weJJ 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 a brokerage or commission, usually at the rate of 10 cents per 1% busheJ box, or equivalent. Respondent' annual volume of business in the sale and dist.ribution of citrus fruit IS substa.ntial.

PAR. 3. In the course and conduct of its business over the past several ye.ars. respondent has sold and distributed and is now selling is de-and distributing: its citrus fruit in commerce, as "commerce" fined in the aforesaid Chyton Act, as amended, to buyers Jocated jn the several states of the United States other than the State of FJorjda in which respondent is located. RE"'3pondent transports. or causes such citrus fruit, when sold, to be transnortecl from its place of business or packing plant in the Stale of FloricJn, or from other places Decision 5S F.

within the State, to such buycrs 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 thpsc sales respondent paid, granted or allowed, and is now paying, granting or allowing to these brokers and other direct buyers on their purcha,ses, a commission, brokerage, or ot.her compensation, or an allo\vance or discount in lieu thereof, in connection therewith. PAR. 5. The acts a.nd practices of respondent, as above a.lleged and described, are in violation of subsection (c) of Section 2 of the Clayton Act, as amended (l'. C. Title 15, Section 13). Mr. Oecil G. llfUes and lir. Ernest G. Em'nes for the Commi sion. Mr. R. B. Huffaker of Bartow, Fla., for respondent. INITIAL DECISION BY EARL J. KOLB , HEARING EXA::II F.R The complaint in this matter charges the respondent Vlith violation of Seetion 2(c) of the Clayton Act, as amended. An agreement for disposition of the proceeding hy 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 the proposed order to cease and desist.

The agreement provides, a,among other things, that respondent admits all of the jurisdictional allegations in the complaint; that the record on which the init.ial 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 with any further procedural steps before the hearing examiner and the Commission; that the order hereinafter set fort.h mny be entered in disposit.ion of the proceeding such order to hnvc the same force fmc1 effect as if entered after a fun hea.ring, respondent specifically waiving any and all rights to challenge or contest thc 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 com- HOLLY HILL FRUIT PRODUCTS, INCORPORATED 873 871 Decision plaint 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 exa.miner 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 Holly Hill Fruit Products, Incorporated, 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 Davenport, State of Florida, with mailing address as Post Offce Box 5, Davenport, Florida. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent. ORDER It is ordered That the respondent Holly Hill Fruit Prodnets Incorporated, a. corporation and its offcers: agents, representatives and employees, directly or througll any corporate or other device. in cunnection 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 aho-wing, 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 va.1ue as a commission, brokerage or other compensation, or any allowance or discount in lieu thereot: upon or in connection with any sale of citrus fruit or fruit products to such buyer for his own account. DECISION OF THE CO::BIISSIOX . ORDER TO FILE REPORT OF COMPLIANCE The Commission having nmy determined that the hearing examiner s initial (1ecision, filed January 25, 1961, is adequate and appropriate to dispose of this proceeding:

1 t i8 ordaed That said decision be, and jt hereby is, adopted as the decision of the Commission.

It i8 .further ordered That the respondent shall, within sixty (60) days after service upon it of this order, file. with the Commission a report, in writing setting forth in detail tile manner and form in which it has complied with the order to cease and desist contained in the aforesftid initia.l decision.

874 E-DERAL 'I'TRADE COMMISSION DECISIOKS Complaint 58 F.