O. D. Huff, Jr., Groves, Inc.

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

IN THE :YIATTER OF O. D. HUFF, JR., GROVES, IKC.

CONSENT ORDER, ETC., IX REGAlil TO THE ALLEGED 'VOLATION OF SEC. 2 (C) OF THE CL.\ YTON ACT Docket 7935. Complaint, J1une S, 1960-Decision, May 19, 1961 , :B"la. , to cease vio-Consent order requiring a packer of citrus fruit in McIntosh lating Sec. 2(c) of the Cla:rton Act by paying brokerage, or its equivalent, to customers making purchases for their o"l"n accounts for resale. COJIPLAINT The Fedral Trade Commission, having reason to believe that the part.y respondent named in the caption hereof, and hereinafter more pflrticula.r1y 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:

UL\GRAPH 1. Respondent O. D. 1-IuIf, Jr., Groves, Inc. 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 McIntosh, Florida. PAR. 2. Respondent is now and since 1957 has been engaged in the such asbusiness of packing, sening and distributing citrus fruit, oranges, tangerines and gnlpefruit, all of which are hereinafter rc ferred to as eitrus fruit, or fruit products. Respondent sells and distributes its citrus fruit through brokers a,s well as direct to customers located in many sections of the united States. When brokers ara utilized in making sales for it, respondent pays them for their services a brokerage or commission, usually at the rate of 10 cents pci' 1 % bushel box, or equivalent. Respondent's annual volume of business in the sale and distribution of citrus fruit is substantin PAR. 3. In the course and eon duct of its business over the past several years, respondent has sold and distributed and is now selling , as "commerce" is de-and distributing its c.itruB fruit in commerce fined in the afore,said Clayton Act, as amended, to buyers located in the several states of the l 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 O. D. HUFF, JR. , GROVES, I 875 874 Decision 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 said citrus fruit across state lines between said respondent and thc 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 ajj, 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 direct buyers on their purchases a commission, brokerage, or other com pensat.on, or an allowance or discount in lieu thereof, in connection therewith. PAR., 5. The acts and practices of respondent, as above alleged and described, arc in violation or subsection (c) of Section 2 of the Clayton Act, as amended (U. C. Title 15, Section 13). 3fr. Cecil G. ;!liles and Jlr. Ernest G. Ba7' ?WS for the Commission. Mr. Cowds Johnson of Tampa, Fla., for respondent. bnTIAL DECISION BY EARL J. KOLE, IIE,\I\li\"a Ex.unxER The complaint in this matter charges the respondent with violation of Section 2 (c) of the Clayton Act, as amended. An agrecment for disposition of the proceeding by mr.Rolls or 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 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, among other things, that respondent admits ajj 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 or fact and conclusions of law in the decision disposing of this matter is waived, together with any further procednral stcps 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 a11 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 876 FEDERAL TRADE co::nnSSION DECISIONS Decision 58 F, 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 ade quate basis for appropriate disposition of the proceeding, the agree mont is hereby accepted, the following jurisdictional findings made and the following order issued:

1. Respondent O. D. Huff, Jr., Groves, 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 at McIntosh, Florida.

2. The Federlll Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent. ORDER It i8 ordered That the respondent O. D. Huff, Jr., Groves, Inc., a corporation, and its offces, agents, representatives and employees directly or through any corporate or other device, in connection with he sale OT citrus fruit or fruit products in commerce, as "commerce is defined in the aforesaid Clayton Act, do forthwith cease and desist from:

Paying, grandng or allowing, directly or indirectly to any buyer or to anyone acting for or in beha..1 of, or who is subject j-,O the direct or inc1ireet control of such buyer, anything or vnIue 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 buyer ror his own account. DECISION OF THE GO::flIISSION AND ORDER TO FILE REPORT OF CO:rPLIAXCE The Commission having now determined that t.he hearing examiner s initial decision, filed January 25 1961 , is adequate and appropriate to dispose of this proceeding:

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

It is further ordel' That the respondent shall, within sixty (60) days a,ft.er service upon it or this order, file with the Commission a report, in writing, setting forth in data.il the manner and form in which it has complied with the order to cease and desist eontaiued in the aforesaid initial decision.

APOPKA FRUIT CO. 877 877 Complaint