Brown and Loe, Inc.

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IN THE MA'ITE;R OF BROWN AND LOE, INC.

CONSEN1' ORDER, ETC. , IN REGARD '1'0 Tile ALLEGED VIOLATION OJ'-' SEC. 2 ( C) OF THE CLAYTON AC'!' Docket 0-138. CO"lpla' int, May 1962-Decision, May 16, 1962 Consent order requiring a Kansas City, Mo., wholesale distributor of citrus fruit and produce to cease 'Violating Sec. 2(c) of the Clayton Act by accepting illegal brokerage on its mvn purchases for resale, such as a commission or discount, usually at the rate of 10 cents per 1% bushel box, all pl1chases of citrus fruit from Florida and California packers, or a lower price reflecting such commission.

CO::fPL:\INT The Federal Trade Commission, having reason to believe that the part.y respondent named in the caption hereor, and hereinafter marc particular.rly described, has been and is 110W violating the pro visions of subsection (c) or Section 2 or the Clayton Act, as amended (U. C. Title 15, See. 13), hereby issues its complaint, stating its cha,rges with respect thereto as follows:

p ARAGR- PII 1. Respondent Brown and Loe, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of l.1missouri, with its office and principal place of business located at 101. E. 5th Street, Kansas City, 110. years has PAR. 2. Respondent is now and for the past se,veral been engaged in lmsiness primarily a.s a wholesale distributor, buying: selling and distributing citrus fruit and produce, hcreafter sometimes referred to as food products. Respondent purchases sucll load products from a large number of suppliers located in many sections of the LuiLed States. The annual volume of busines;s done by respondent in the purchase and sale of food products is substantial. PAR. a. In the course and conduct of its business for the past several years, respondent has purchased rUlcl distributed, and is now in conllner ;lS "com-purchasing a,nel distributing, food products, frommerce" is defined in the aloresaid Clayton -,\d, as amended suppliers or scners located in several states of the United States located.other than the State of Thhssouri, in which respondent is when purchasec1 to' llespondent transports or causes such products, be transported from the places of business or packing plants of its suppliers located in various other states of the United States to respondent who is located ill the State of Iissourj, or to respondent customers located in sa.id State, or elsewhere. Thus, there has been BROVlK AND LOE) I TC. 1265 1261 Dedsion and Order at all times mentioned herein a continuous course of trade in commerce in the purchase of said food products across state line between respondent and its respective suppliers of such food products. PAR. 4:. In the course and conduct of its business for the past several years, but more particularly since October 1, 1959 respondent has been lld is now making substantial plln hases of food produpts for its own account for resale from some, but nol all, of its suppliers, and on a large Jlllnber of these Plll'Chases respondent has received and accepted, and is now receiving and accepting, from said suppliers it commission, brokerage, or other compensation 01' an allowance or discount in ljeu thereof, ill connection therewith. For example, respondent makes substantial purchases of citrus fruit from a number of packers or suppliers located in the States of Florida and California, and receives on said purchases a brokerage or COllmission, or a discount in lieu thereof, usually at the rate of 10 cents per 1:r"j bushel box, or equivalent. In other instances respondent receives a lower price from the suppliers which reflects said commission or brokerage.

PAR. 5. Tho acts and practices of respondent in receiving and accepting a brokerage or a commission, or an allmvance or discount in lieu thereof, on its own purchases, as above alleged and described are in violation of subsection (c) of Section 2 of the Clayton Act as amended (U. C. Title 15, Sec. 13). DECISION AND ORDER The Commission having heretofore determined to issue its complaint charging the respondent named in the caption hereof with violation of subsection (c) of Section 2 of the Clayton Act, as amended and the respondent 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 respondent flnd counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondent of all the jurisdictional facts set forth in the complaint to issue herein, a statenlcllt that the signing of said agreement is for settlement purposes only and does not constitute an admission by respollde.llt that the la\v has been violated as set forth in such complaint, and \vaivers and provisions a,s 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 1266 FEDERAL TRADE CO:vMISSIOK DECISIONS Complaint 60 F.

makes the following jurisdictional findings, and enters the following order:

1. Respondent Brown and Loe, Inc. , is a corporation organi%ed existing and doing business under and by virtue of the la \\7S of the Stat.e of )fissouri, with it.s offce and principal place of business located at 10'1 E. 5th Street, Kansas Cit.y, Mo.

2. The Federal Trade Commission has jurisdiction of t.he subject matter of this proceeding and of the respondent.. ORDER It is ordered That respondent Brown and Loe, Inc., a corporation and its offcers, agent.s, representatives and employees, directly or through any corporate or other device, in connection with the purchase of citrus fruit or produce in commerce, as "conlmercc" 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 comlnission, brokerage, or other compensation or any allowance or discount in lieu thereof, upon or in connection with any purchase of citrus fruit or produce for respondent's own account, or where respondent is tho agent, representative, or other intermediary acting for or in behalf, or is subject to the direct or indirect control, of any buyer.

It is further ordered That the respondent herein shall, within sixty (60) days after service upon it of tills order, file with the Commission a report in writing set.ting forth in detail the manner and form in which it has complied with this order.

IN THE )'fATIEH OF MASON B1 OS. & TARLL'I , INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO Tile ALLEGED VIOLATION OF THE l"ED- ERAL TRADE COJnnsslO AND THE J.' LAMJIABLE FABRICS ACTS lJ()ket 0-13.9. Complaint, May 1962-DeuiNion, May, 1962 Consent order requiring Boston importers to cease violating the lallmable l1' abrics Act by sellng in commerce leis which were so highly flammable as to be dangerous when worn.

COl\IPLAINT Pursuant to the provisions of the Federal Trade Commission Act and the Flammable Fabrics Act., and by virtue of the authority vest.ed , :MSQX BROS. & TARLL , IKC. , ET AL. 1267 1266 Decision and Order in it by said Acts, the Federal Trade Commission, having reason to believe that Mason Bros. & Tarlin, Inc. , a corporation, and Paul .YIason, inclividua.lly and as an offcer of said corporation, hereinafter referred to a.s respondents, have violated the provisions of said Acts and the Rules and Regulations promulgated under the Flammable Fabrics Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint, stat.ing its charges in that respect as follows: PARAGRAPH 1. Re,spondent JHason Bros. & Tarlin, Inc., is a corporation duly organized, existing and doing business under and by virtue of the laws of the State of :Massachusetts. Respondent Paul Mason is the President of the corporate respondent. He formulates directs and controls the policies, acts and practices of the said corporate respondent. The respondents have their offces and principal place of business at 73-75 High Street, Boston, ::Iass. PAR. 2. Eespondents, subsequent to July 1, 1954, the effective date , in of the Flammable Fabrics Act, haw soh! ,md offered for sale commerce; have imported into the United States; and have intro duced, deli vcrcel for introduction, transported, and ca.,used to be transported, in COll11l1CrCC; and have transported and caused to be transported lor the purpose of sa.le or delivery after sale in commerce; as "commerce" is de, fined in the Flammable Fabrics Act, articles of wearing apparel, as the term "article of wearing apparel" is defined therein \\l)ich articles of wearing apparel were under Section 4 of the Flammable Fabrics Act, as amended, so highly flammable as to be dangerous '\v11en worn by individuals.

Among the articles of wearing apparel mentioned herein were leis. PAll. 3. The a.foresflid acts and practices of respondents herein alleged were and are in violation of the Flammable Fabrics Act and of the Eules and Regulations promulgated thereunder, and as such constitute unfair and deceptive acts and practices and unfair methods of competition in COl1unerce within the intent and meaning of the Federal Trade Commission Act.

DECISION A:ND ORDER The Commission having heretofore detcI1nined t.o issue its complaint charging the respondents named in the caption hereof with violation of the Federal Trade Commission Act and the FJammable Fabrics Act, and the respondents having been served with notice of said determination and with a copy of the complaint the Comnlissionintellded to issue, together with a proposed form of order; and 719 003-- Decision and Order 60 F.

The respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondents of all 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 findings, and enters the fol- Io.wing order:

1. Respondent, Mason Bros. & Tarlin, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Massachusetts, with its offce and principal place of business located at 73-75 High Street, in the city of Boston, State of Massachusetts.

Respondent Paul Mason is an offcer 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, and the proceeding is in the public interest.

OIWER It i8 ordered That respondent 1ason Bros. & Tarlin, Inc., a corporation and its offcers, a,ncl respondent Paull\fason, individually and as an offcer of said corporation, and respondents' representatives agents and employees, directly or through any corporate or other device, do forthwith cease and desist from:

1. (a) Importing into the United States; or (b) Selling, offering for sale, introducing, delivering for introduction, transporting, or causing to be transported, in COlnmerce, as "commerce" is defined in the Flmnmable Fabrics Act; or (c) Transporting or musing to be transported, for the purpose of sale or delivery after sale in commerce any article of wearing apparel which under the provisions of Section 4. of the said Flammable Fabrics Act, as amended, is so highly flammable as to be dangerous when worn by individuals. It is further ordered That the respondents herein shall, within sixty (60) days after service upon them of this order, file with the Commission a re.port in writing setting forth in detail the lnanner and form in which they have. eomplied with this order. NORTH AMERICA.'l QUILTING CORP. ET AL. 1269 Complaint