Chase & Company, Inc.

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

days after service upon it of this order, file with the Commission a 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 aforesaid initial decision.

---

IN THE MATTER OF

CHASE & COMPANY, INC.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF SEC. 2(c) OF THE CLAYTON ACT

Docket 8009. Complaint, June 27, 1960—Decision, May 19, 1961

Consent order requiring a Sanford, Fla., packer of citrus fruit and vegetables 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

916 FEDERAL TRADE COMMISSION DECISIONS 58 F.T.C.

Complaint

more particularly described, has been and is now violating the provisions of subsection (c) of Section 2 of the Clayton Act, as amended (U.S.C. Title 15, Section 13), hereby issues its complaint, stating its charges with respect thereto as follows:

PARAGRAPH 1. Respondent Chase & Company, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of Florida with its office and principal place of business located at Sanford, Florida.

PAR. 2. Respondent is now, and for the past several years has been, engaged in the business of packing, selling and distributing citrus fruit such as oranges, tangerines and grapefruits, and fresh vegetables such as celery, pepper, and radishes, all of which are hereinafter sometimes referred to as citrus fruit and vegetables. Respondent sells citrus fruit and vegetables through brokers, as well as direct, to customers located in many sections of the United States. When brokers are utilized in making sales of citrus fruit, respondent pays said brokers for their services a brokerage or commission, usually at the rate of 10 cents per 1 1/2 bushel box, or equivalent. When brokers are utilized in making sales of vegetables, respondent pays said brokers for their services a brokerage or commission, usually at the rate of 8 cents or 10 cents per bushel except for radishes on which the rate is usually at the rate of 5 cents per carton. Respondent's annual volume of business in the sale of citrus fruit and vegetables 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 citrus fruit and vegetables in commerce, as "commerce" is defined in the aforesaid Clayton Act, as amended, to buyers located in the several states of the United States other than the State of Florida in which respondent is located. Respondent transports or causes such citrus fruit and vegetables, when sold, to be transported from its place of business or packing plant in the State of Florida, or from other places within said State, to such buyers or to the buyers' customers located in various other states of the United States. In many instances respondent sells to brokers or buyers located in the State of Florida, but ships or causes the citrus fruit and vegetables to be shipped to the buyers' customers located outside of said state. Thus there has been at all times mentioned herein a continuous course of trade in commerce in said citrus fruit and vegetables across state lines between said respondent and

CHASE & COMPANY, INC. 917

915 Decision

the respective buyers of such citrus fruit and vegetables, or the buyers' customers.

PAR. 4. In the course and conduct of its business as aforesaid, respondent has been and is now making substantial sales of citrus fruit and vegetables 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 paying, granting, or allowing to these brokers and 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 facts 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.S.C. Title 15, Section 13).

Mr. Cecil G. Miles and Mr. Ernest G. Barnes for the Commission. Maguire, Voorhis & Wells, of Orlando, Fla., by Mr. M. W. Wells, for respondent.

INITIAL DECISION BY WILLIAM L. PACK, HEARING EXAMINER

The complaint in this matter charges the respondent with violation 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 the proposed order to cease and desist. The word "agreement" as used hereinafter will include the stipulation.

The agreement provides, among other things, that respondent admits all 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 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 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; that the order may be altered, modified or set aside in the

Decision 58 F.T.C.

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 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 Chase & Company, Inc., is a Florida corporation with its office and principal place of business located in Sanford, 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, Chase & Company, Inc., a corporation, and its officers, 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 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 buyer for his own account.

DECISION OF THE COMMISSION AND ORDER TO FILE REPORT OF COMPLIANCE

The Commission having now determined that the hearing examiner's initial decision, filed January 18, 1961, is adequate and appropriate to dispose of this proceeding:

It is ordered, That said decision be, and 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, file with the Commission a 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 aforesaid initial decision.

HERMAN J. HEIDRICH & SONS Complaint IN THE MATTER OF HERMAN J. HEIDRICH ET AL. DOING BUSINESS AS HERMAN J. HEIDRICH & SONS CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF SEC. 2(c) OF THE CLAYTON ACT Docket 8010. Complaint, June 27, 1960—Decision, May 19, 1961 Consent order requiring Orlando, Fla., packers 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 own accounts for resale. COMPLAINT The Federal Trade Commission, having reason to believe that the parties named in the caption hereof, and hereinafter more particularly described, have been and are now violating the provisions of subsection (c) of Section 2 of the Clayton Act, as amended (U.S.C. Title 15, Section 13), hereby issues its complaint, stating its charges with respect thereto as follows: PARAGRAPH 1. Respondents Herman J. Heidrich, Francis X. Heidrich and Paul D. Heidrich are individuals and are copartners trading and doing business as Herman J. Heidrich & Sons, with principal office and place of business located at Orlando, Florida, with mailing address as Post Office Box 3788, Orlando, Florida. PAR. 2. Respondents are now, and for the past several years have been, engaged in business of packing, selling and distributing citrus fruit, such as oranges, tangerines and grapefruit, and other fresh fruit products, all of which are hereinafter referred to as citrus fruit or fruit products. Respondents sell and distribute 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, respondents pay said brokers for their services a brokerage or commission, usually at the rate of 10 cents per 1 ⅗ bushel box, or equivalent. Respondents' annual volume of business in the sale of citrus fruit and other fresh fruit products is substantial. PAR. 3. In the course and conduct of their business over the past several years, respondents have sold and distributed and are now selling and distributing citrus fruit and fruit products in commerce, as "commerce" is defined in the aforesaid Clayton Act, as amended, to buyers located in the several states of the United States other than the State of Florida in which respondents are located. Respondents

Decision 58 F.T.C.

transport or cause such citrus fruit and fruit products, when sold, to be transported from their 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 located in various other states of the United States. In many instances respondents sell to brokers or buyers located in the State of Florida, but ship or cause the citrus fruit to be shipped to the buyers' customers located outside of said state. 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 respondents and the respective buyers of such fruit, or the buyers' customers.

PAR. 4. In the course and conduct of their business as aforesaid, respondents have been and are now making substantial sales of citrus fruit to some, but not all, of their brokers and direct buyers purchasing for their own account for resale, and on a large number of these sales respondents paid, granted, or allowed, and are now paying, granting, or allowing to these brokers and 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 respondents, as above alleged and described, are in violation of subsection (c) of Section 2 of the Clayton Act, as amended (U.S.C. Title 15, Section 13).

Mr. Cecil G. Miles and Mr. Ernest G. Barnes for the Commission. Andrews & Smathers, of Orlando, Fla., for respondents.

INITIAL DECISION BY WILLIAM L. PACK, HEARING EXAMINER

The complaint in this matter charges the respondents with violation 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 respondents and their 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 word "agreement" as used hereinafter will include the stipulation.

The agreement provides, among other things, that respondents admit all 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 of fact and conclusions

HERMAN J. HEIDRICH & SONS 921

919 Order

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 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, respondents specifically waiving any and all 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 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 respondents that they have violated the law as alleged in the complaint.

The hearing examiner having considered the agreement and 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. Respondents Herman J. Heidrich, Francis X. Heidrich, and Paul D. Heidrich are individuals and are copartners doing business as Herman J. Heidrich & Sons under the laws of the State of Florida, with their principal office and place of business located in Orlando, Florida, with mailing address as Post Office Box 3788, Orlando, Florida.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents.

ORDER

It is ordered, That the respondents Herman J. Heidrich, Francis X. Heidrich and Paul D. Heidrich, individually and as copartners doing business as Herman J. Heidrich & Sons, and their agents, representatives and employees, directly or through any corporate, partnership, sole proprietorship, 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 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 buyer for his own account.

Complaint 58 F.T.C.

DECISION OF THE COMMISSION AND ORDER TO FILE REPORT OF COMPLIANCE

The Commission having now determined that the hearing examiner's initial decision, filed January 24, 1961, is adequate and appropriate to dispose of this proceeding: It is ordered, That said decision be, and it hereby is, adopted as the decision of the Commission. It is further ordered, That the respondents shall, within sixty (60) days after service upon them of this order, file with the Commis-