George C. Palmer Co., Inc.

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

IN THE MATTER OF GEORGE C. P ALyIER CO. IKC., ET AL. CONSENT ORDER, ETC., IX REGARD TO THE ALLEGED VIOLATION OF SEC. (c) OF THE CLAYTON ACT Docket C-64. Complaint, Ja, 17, 19G2-lJeci8ion, Jan. 1"1, 1962 Consent order requiring a Minneapolis wholesale distributor of citrus fruit produce, and other food products, to cease acce-pting' ilegal brokerage on purchases for its own account such as a discount of 10 cents per 1% bushel box of citrus fruit from Texas packers, or a lower price refiecting such commission.

170 FEDERAL TRADE COMMISSION DECISIOKS Complaint GO F.

COMPLAINT The Federal Trade Commission, having reason to believe that the parties respondent named in the caption hereof, and hereinafter more particularly described, have been and arc now violating the provisions of subsection (c) of Section 2 of the Clayton Act, as amended (U. Title 15, Sec. 13), hereby issues its complaint, stating its charges with respect thereto as follows:

PARAGRAPH 1. Respondent George C. Palmer Co., Inc., is a corporation organized on October 1, 1960, existing and doing business under and by virtue of the la ws of the State of Minnesota with its offces and principal place of busines located at 4300- 13 West 36'1 Street, Minneapolis, Minn.

The corporate respondent is successor to George C. Palmer Brokerage Co., Inc., a corporation organized 011 Ja.nuary 5, 1953. Hespondent Oscar Edward J olmson served as Vice President of the predecessor corporation.

Respondent Oscar Edward J oh1180n is an individual and is president of the corporate respondent, and Owns substantially all of its capital stock. As president and substantial o\vner, he formulates, directs and controls the acts, practices, and policies of the said corporate respondent, including the acts and practices hereinafwr mentioned. Such corporate respondent and individual respondent are hereinafter jointly referred to as respondents.

PAR. 2. Respondents are now, and for the past several years have been, engaged in business primarily as a wholesale dist.ributor, buying, selling and distributing citrus fruit, produce, and other food products all of which are hereinafter sometimes referred to as food products. Respondents purchase their food products from a large number of suppliers located in many sections of the "Gnited States. The annn"l volume of business done by respondents in the purchase anel sale of food products is substantial.

PAn. 3. In the course and conduct of their business for the past several.! years, respondents have purchased and distributed, and are now pllrchRsing and distributing, food products, in commerce, as commerce" is defined in the aforesaid Clayton Act, as amended, from suppliers or sellers located in several states of the United States other than the State of Minnesota, in which respondents are located. He. spondents transport or cause such products, when purchased to be transported from the places of business or packing plants of their suppliers Jocated in various other states of the United States to respo11dents who are located in the State of j\li1lesota, or to responclpnts GEORGE C. PALMER CO. , INC. , ET AL. 171 169 Decision and Order customers located in said state, or elsewhere. Thus, there has been at all times mentioned herein a continuous course of trade in commerce in the purchase of said food products across state lines between respondents and their respective suppliers of such food products. PAR. 4. In the course and conduct of their business for the past several years, bnt more particular.rly since October 1, 1960, respondents have been and are now making substantial purchases of food products for their own account for resale from some, but not all, of their snppliers, and on a large number of these purchases respondents have received and accepted, and are now receiving and accepting, from said suppliers a commission, brokerage, or other compensation or an allowance or discount in lieu thereof, in connection therewith. For example, respondents make substantial purchases of citrus fruit from a number of packers or suppliers located in the State of Texas, and receive on said purchases a brokerage or commission, or a discount in lieu thereof, usually at the rate of 10 cents per 1% bushel box, or equivalent. In many instances respondents receive a lower price from the supplier which reflects said commission or brokerage. PAR. 5. The acts and practices of respondents in receiving and accepting a brokerage or a commission, or an a-Iowance or discOlmt in lieu thereof, on its own purchases, as above alleged and described, are in viola.tion of subsection (c) of Section 2 of the Clayton Act, as amended (U. C. Titlc 15, Sec. 13).

DECISION A1''" ORDER The COllission having heretofore determined to issue its complaint charging the respondents named in the caption hcreof with violation of subsection (c) of Section 2 of the Clayton Act, as amend- , and the respondents having been served with notice of said determination and with a copy of the complaint the Commission intended to issue, together with a proposed form of order; and The respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondents of aU the jurisdictional facts set forth in the complaint to issue herein, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondents that the law has been violated as set forth in such complaint, and waivers and provisions as required by the Commission rules; and The Commission, having considered the agreement, hereby accepts same, issues its complaint in the form contemplated by said agreement makes the following jurisdictional fuldings, and enters the following order:

172 FEDERAL TRADE CO:\CllISSION DECISIONS Syllabus 60 F.

1. Respondent George C. Palmer Co. Inc., is a corporation organized on October 1, 1960, existing and doing business under and by virtue of the laws of the State of Minnesota with its offce and principal place of business located at 4300-B West 12 Street, Mineapolis, Minn. Respondent Oscar Edward Johnson is President of said corporation and his address is the same as that of said corporation. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents. ORDER It i8 ordered That respondent George C. Palmer Co., Inc., a corporation, and its offcers, and Oscar Edward Johnson, individually and as an offcer of George C. Palmer Co. Inc., and respondents' agents representatives and employees, directly or through any corporate or other device, in connection with the purchase of citrus fruit or produce in commerce, as "commerce" is defined in the Clayton Act, as amended, do forthwith cease and desist from:

Receiving or accepting, directly or indirectly, from any seller, anything of value as a commission, brokerage, or other compensation or any allowance or discount in lieu thereof, upon or in connection with any purchase of citrns fruit or produce for respondents' own account, or where respondents ate the agents, representatives, or other intermediaries acting for or in behalf, or are subject to the direct or indirect control, of any buyer.

It is fwrther ordered That the respondents herein shall, within sixty (60) days after service upon them of this order, file with the Commission a report in writing setting forth in detail the manner and form in which they have complied with this order.