Roper Growers Cooperative

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

IN THE J\IATTBH OF ROPER GROWERS COOPERATIVE CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF SEC. 2 (c) OF THE CLA TTON ACT Docket 8018. Complai, nt.ne 1960-Decision, May, 1961 Consent order requiring a packer of citrus fruit in Winter Garden, Fla., to cease Tiolating Scc. 2(c) of the Clayton Act by paying brokerage. or ih equivalent, to customers making purchases for their own accounts for resale.

CO::\IPT-, The Federal Tra(le Commission, having Teason to believe that the party respondent named in the caption hereof, and hereinafter more particularly described, has been and is no"- violating the provisions of subsection (c) of Section 2 of the Clayton Act, as amended , stating(U. c. Title 15, Section 13), hereby issues its compbint its charges with respect thcret.o as follo,ys: PARAGRAPH 1. Respondent Hopei' Gl'OIVeTS Corporation 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 \Vinter Garden, Florida, wit.h mailing address as Post Offce Box 218 , ",Vinte,r Garden, Florida::. PAIL 2. Respondent is no\' and for the past s8vcrfll years has been engaged in the bllsincs of packing, selling, and distributing citrns fruit, such as oranges, tangerines, and grape,fruit, an of which are hereinafter EOmetimes referred to as citrus fruit or fruit products. Respondent sells and distributes its citrus fruit through brokers as \\" cll fts direct, to customers located in many sections of the Unit.ed States. \Vhe,n brokers arc utilized in making sales for it the respondent pays them for their services a brokerage or commission, usually at the rate of 10 cents per 1% bushcl box. Respondent's annual volume of business in t.he sale and distribution of citrus frujt is substantial.

PAR. 3. In the course and conduct of its blls1ness over the past several years, respondent has sold and distribut.ed and is now selling ROPER GROWERS COOPERATIVE 947 946 Decision and distributing its citrus fruit 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, 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 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 or fruit products to be shipped to the buyers' customers located outside of saiel state. Thus there has been at all times mentioned herein a continuous course of trade i'n commerce in said 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 for the past several years, but more particularly since January 1 , 1959 respondent has been and is now making numerous and 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 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 practices of respondent in paying, granting, or allowing a, brokerage or commission or a discount or an allowance in lieu thereof, to buyers on purchases for their own account as hereinabove alleged and described, are in violation of subs?ction (c) of Section 2 of the Clayton Act, as amended (IT. C. Title 15 Section 13).

Hr. Cecil G. l11iles and Hr. Ernest G. Eame8 for the Commission. No appearance for respondent.

INITIAL DECISIO V BY ",VILLIAJI L. PACK : I-IEAlUNG EX.DIINER The complaint in this mattaI', issued ,June 27, 1960, charges the respondent with violation of Section 2 (c) of the Clayton Act, as amended, in connection with the sale and distribution of citrus fruit, citrus juices and other food products. An agreement has now been entered into by respondent and counsel supporting the 948 FE DE HAL TRADE COMMISSIOK DECISIONS Decision 58 F.

complaint which provides, among other things, that respondent admits an of the jurisdictional anegations in the complaint; that the record on which the initia.l decision and the decision of the Commission shall be based shall consist solely of the complaint and 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 proced lral 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 fun 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 manner provided for other orders of the Commission; that the complaint may be used in construing the terms of the order; and that, the agrcenlCllt 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 01 the opinion that they pl'ovirlc an adequate basis for appropriate disposition of the proceeding, the agreement is hereby accepted, the follmving jurisdictional findings made, and the following order issued:

1. Respondent Roper Growers Cooperative (erroneously referred to in the complaint as Hoper Growers Corporation) is a Florida corporation ",with its offce 8,ncl principal place of business located at '''inter Garden, Florida.

2. The l, ecleral Trade Commission has jurisdiction of the subject mauer of this proceeding and of the respondent. onder I t is ordered That the respondent, Roper Growers Cooperati a corporation, and jts offcers, agents, representMjves and elnployees directly or through any corporate or other device, in connection with the sale or citrus fruit or fruit products, in commerce, as "commerce is defined in the aJoresaic1 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 01' who is subje, ct 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. NEVINS FRUIT CO, ) INC. ! ET AL. 949 9'16 Complaint DECJSIO:: OF THE CO:.\IJ\ITSSJOX A);D ORDER TO FILE REPonT OF CmIPLIA::CE Pursuant to Section 3.21 of t.he Commission s Rules of Practice, the initial decision of the hearing examiner shall, on the 10th day of May IDG1 , become t.he decision of the Commission; fmc1 accordingly: It i;. OI'del' That respondent herein shall within sixty (60) days after service upon it of this orcler file ,with the Commission a report in writing setting forth in detail the manner and form in