Adams Packing Association, Inc.

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

IN THE J\fatter OF ADA:\IS PACKING ASSOCIATIO , INC.

cox SENT ORDER, ETC. , IN HEGAlil TO 'l' HE ALLEGED VIOLATIO SEC. 2(c) OF THE CLAYTON ACT Docket 79.98. Gomplrzint, June 24, 1960-Decision, May, 1961 Consent order requiring an AUburndale, Fla., citrus fruit packer 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. COMPLAINT 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 (U. C. Title 15 , Section 13), hereby issues its complaint, stating its charges with respect thereto as follows: PARAGRAPH 1. Respondent Adams Packing Association, 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 AuburndaJe, Florida, with mailing address as Post Ofliee Box 37, Auburndale, Florida. PAR. 2. Respondent is now and since .January 1 , 1957 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. Respond ent sells and distributes its citrus fruit. through brokers, as well as direct, to customers located in many sections of the United States. Wllen brokers arc 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% bushel box, or equivalent. Respondent' annual volume of business in the sale and distribution of citrus fruit is substantia.l 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 de. fined in the aforesaid Clayton Aet, as amended, to buyers located in the several states of the United States other than the State of Florida in which respondent is locate,d. Respondent transports, or causes such citrus fruit: when soJeL 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 ADAMS P ACKL'\G ASSOCIATIO)/ , DIG. 881 880 Decision located in various other states of the l:united States. Thus there has been, at all times mentioned herein, a cont.inuous 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 pntCtices of respondent, as above alleged and described, are in violation of subsection (c) of Section 2 of the Clayton Act, as amended (li. C. Title 15, Section 13). Afr. 0 ecil G. AI iles and ilfr. Ernest G. B arms for thc Commission. Jfr. TVmiarn A. McRae, Jr. of Bartow, Fla., for respondent. INITIAL DECISION BY AnXEH E. SCOMB, IIEARI EXAMINER The complaint herein was issued on June 24, 1960, charging Respondent with violation of 92(c) of the Clayton Act, as amended by paying, granting, or allowing commission, brokerage, compensation, or an allowance or discount in lieu thereof, to certain of its brokers and direct buyers, on purchases for their own account for resale.

Thereafter, on January 4, 1961 , Eespondent, its counsel, and counsel supporting the compla.int herein entered into an Agreement Containing Consent Order To Cease And Desist, which was approved by the Director and Associate Director of the Commission s Bureau of Litigat.ion, and thereafter, on anuary 9, 1961, submitted to the Hearing Examiner for consideration. Attached to and made a part of the agreement is a stipulation entered into by the same parties for the purpose of making dear beyond any possible doubt the intent of the complaint and of the proposed order to cease and desist. The agreement identifies Respondent Adams Packing Association Inc. as a Florida corporation, with its offce and principal place of ftsiness located in Auhllrnclale, Florida, with mailing address as Post Offce Box 37, Auhurndale, Florida.

Respondent admits all the jurisdictional facts alleged in the I'omplaint, and agrees that the record may be taken as if findings of accordance with such jurisdictional facts had been duly made in allegations.

6S1 237- r;,\- ;)7 , 882 FEDERAL TRADE COMMISSIOK DECISIONS Decision 58 F.

Respondent waives any further procedure before the Hearing Examiner and the Commission; the making of findings of fact and conclusions of law; and all of the rights it may have to challenge or contest the validity of the order to cease and desist entered accordance with the agreement. All parties agree that the record on which the initial decision and the decision of thl Commission sha,n be based shall consist solely of the complaint and the agreement; that the order to cease and desist, as contained in the agree.ment, when it shall ha,'e become a part of the decision of the Commission, shall have t11c same force and effect as if entered after a full hearing, and may be a.altered, modified or set aside in the manner provided for other orders; that the complaint herein may be llse.d in construing the terms of said order; and that the agreement is for settlement purposes only and does not constitute an admission by Respondent that it has violated the Jaw as alleged in the complaint.

After consideration of the allegations of the complaint, and the provisions of the agreement and the proposed order, the I-Iearing Examiner is of the opinion that such order constitutes a. satisfactory disposition of this proceeding. Accordingly, in consonance with the terms of the aforesaid agreement, the I-Ioaring Examiner accepts the Agreement Containing Consent Order To Cease And Desist; finds that the Commission has jurisdiction over the Respondent and over its acts and practices as alleged in the complaint.; and finds that this proceeding is in the public interest. Therefore 1 t ordered That the Respondent Adams Packing Association Inc., a corporation, and its offcers, agents, representatives a,nd employees, directly or through any corporate.e 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 forthwhh 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 commission, brokerage, or other compensation, or any allowance or rliscount in lien thereof, upon or in connection with the sale of citrus fruit or fruit products to such buyer for his own account. DECISl,)":\T OF THE CO:\Uris5WX .\XD UHDlm TO FILE REPORT OF CO)IPLIAXCE The Commission having now determined that the hearing examjDPr s jnij-inl decision, filt-'c1 .TnnllHl'Y Ii. 1!161. is adequate and appropriate to cli"pose of thi:: P1'ocppding: ALTURAS PACKING COMPANY, IXCORPORATED 883 880 Complaint It is OJ'dated That said decision be, and it hereby is, adopted as the decision of the. Commission.

It is fnrthe?' onle;' That the respondent shall, within sixty (60) days after service upon it of this order, file wit.h the Commission a report, in writing, setting forth in detail t.he manner and form in which it has complied "with the order to cease and desist contained in the aforesaid initial decision.