American Transportation Institute, Inc.

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In roe Marrer or AMERICAN TRANSPORTATION INSTITUTE, INC., ET AL. CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FED- ERAL TRADE COMMISSION ACT Docket C-250. Complaint, Oct. 5, 1962—Decision, Oct. 5, 1962 Consent order requiring Kansas City, Mo., sellers of correspondence courses in airline training to cease representing falsely, through their sales agents calling upon prospective purchasers, that they were affiliated with a large airline, that employment with an airline was guaranteed to persons completing their course, and that enrollees in the course would receive free air transportation to Kansas City to attend the resident portion of the course. AMERICAN TRANSPORTATION INSTITUTE, INC., ET AL. 963 962 Complaint Complaint Pursuant to the provisions of the Federal Trade Commission Act, and by virtue of the authority vested in it by said Act, the Federal Trade Commission, having reason to believe that American Transportation Institute, Inc., formerly known as Air Age Institute, Inc., a corporation, and Leslie M. Reed, individually and as an officer of said corporation, and Arthur F. Lohrey, individually, hereinafter referred to as respondents, have violated the provisions of said 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 stating its charges in that respect as follows:

Paracrary 1. Respondent American Transportation Institute, Inc., formerly known as Air Age Institute, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Missouri with its principal office and place of business located at5 1 2 2 5 2 618 1411 78 30 74.539757 12115 1 2 2 5 3 708 1410 144 33 95.689995 Walnut5 1 2 2 5 4 862 1408 122 41 96.564758 Street,5 1 2 2 5 5 996 1410 135 31 96.383141 Kansas5 1 2 2 5 6 1142 1408 90 42 96.183861 City,5 1 2 2 5 7 1242 1409 68 31 96.892593 Mo.3 1 2 3 0 0 563 1458 1318 195 -1 4 1 2 3 1 0 614 1458 1267 43 -1 5 1 2 3 1 1 614 1460 219 41 93.276642 Respondents 1 2 3 1 2 853 1459 111 32 93.209396 Leslie5 1 2 3 1 3 982 1459 48 32 90.097931 M.5 1 2 3 1 4 1051 1459 93 32 96.233429 Reed5 1 2 3 1 5 1164 1459 29 32 96.439926 is5 1 2 3 1 6 1213 1470 43 21 95.561783 an5 1 2 3 1 7 1277 1458 108 33 96.537659 officers 1 2 3 1 8 1405 1458 38 33 96.168373 of5 1 2 3 1 9 1462 1458 73 33 96.776161 said5 1 2 3 1 10 1556 1458 225 42 95.469650 corporation.5 1 2 3 1 11 1825 1458 56 31 96.127014 He4 1 2 3 2 0 569 1508 1311 43 -1 5 1 2 3 2 1 569 1509 225 42 96.481842 participates5 1 2 3 2 2 811 1509 36 33 96.061462 in5 1 2 3 2 3 864 1511 57 31 96.061462 thes 1 2 3 2 4 938 1510 234 41 96.464760 formulation,5 1 2 3 2 5 1190 1509 164 33 95.186089 directions 1 2 3 2 6 1373 1510 67 32 96.008690 ands 1 2 3 2 7 1457 1510 130 32 96.748741 controls 1 2 3 2 8 1605 1509 38 32 96.853142 of5 1 2 3 2 9 1658 1509 59 33 96.456657 thes 1 2 3 2 10 1731 1508 149 43 96.211449 policies,4 1 2 3 3 0 573 1559 1308 43 -1 5 1 2 3 3 1 573 1564 69 28 96.052254 acts5 1 2 3 3 2 664 1560 66 32 96.488335 ands 1 2 3 3 3 749 1560 165 42 96.488335 practices5 1 2 3 3 4 933 1560 38 33 96.631523 of5 1 2 3 3 5 989 1561 57 32 96.874794 thes 1 2 3 3 6 1064 1560 73 33 96.391830 said5 1 2 3 3 7 1159 1564 177 38 96.388550 corporate5 1 2 3 3 8 1353 1560 212 42 96.453735 respondent.5 1 2 3 3 9 1610 1560 67 33 82.200775 His5 1 2 3 3 10 1696 1560 136 32 96.714417 address5 1 2 3 3 11 1852 1559 29 32 96.048759 is4 1 2 3 4 0 563 1611 900 42 -1 5 1 2 3 4 1 563 1611 61 31 96.769279 thes 1 2 3 4 2 646 1622 90 21 96.046661 same5 1 2 3 4 3 759 1623 35 20 96.473106 as5 1 2 3 4 4 816 1612 76 31 96.100395 that5 1 2 3 4 5 913 1611 39 32 96.215347 of5 1 2 3 4 6 974 1611 57 31 96.556656 thes 1 2 3 4 7 1054 1616 177 36 96.472603 corporate5 1 2 3 4 8 1251 1611 212 42 70.852150 respondent.3 1 2 4 0 0 568 1659 1312 245 -1 4 1 2 4 1 0 612 1659 1267 43 -1 5 1 2 4 1 1 612 1661 218 41 96.577087 Respondents 1 2 4 1 2 848 1661 135 31 92.832802 Arthur5 1 2 4 1 3 1000 1661 38 31 90.032417 F.5 1 2 4 1 4 1057 1661 135 41 92.220123 Lohrey5 1 2 4 1 5 1211 1671 69 21 96.278946 was5 1 2 4 1 6 1297 1661 163 41 96.278946 formerly5 1 2 4 1 7 1479 1672 44 20 95.314903 an5 1 2 4 1 8 1540 1660 107 32 70.384903 officers 1 2 4 1 9 1663 1660 39 32 96.667091 of5 1 2 4 1 10 1719 1659 74 33 92.893196 said5 1 2 4 1 11 1809 1671 70 21 92.667267 cor-4 1 2 4 2 0 570 1708 1310 44 -1 5 1 2 4 2 1 570 1716 117 36 96.665886 porate5 1 2 4 2 2 705 1711 204 41 96.454384 respondents 1 2 4 2 3 926 1711 67 32 96.671806 ands 1 2 4 2 4 1011 1710 228 42 96.671806 participated5 1 2 4 2 5 1256 1711 35 32 96.867630 in5 1 2 4 2 6 1308 1711 57 32 96.582558 thes 1 2 4 2 7 1381 1710 232 41 96.663391 formulation,5 1 2 4 2 8 1631 1708 165 35 96.188454 directions 1 2 4 2 9 1812 1710 68 32 96.414925 anda 1 2 4 3 0 570 1761 1309 41 -1 5 1 2 4 3 1 570 1763 127 31 96.509392 controls 1 2 4 3 2 723 1761 38 32 96.728760 of5 1 2 4 3 3 783 1762 57 32 96.791626 thes 1 2 4 3 4 862 1761 148 41 96.114357 policies,5 1 2 4 3 5 1033 1766 70 28 96.114357 acts5 1 2 4 3 6 1126 1761 67 32 96.621429 ands 1 2 4 3 7 1215 1761 164 41 96.593079 practices5 1 2 4 3 8 1399 1761 39 33 96.528152 of5 1 2 4 3 9 1459 1761 59 33 96.616318 thes 1 2 4 3 10 1539 1761 74 32 96.837311 said5 1 2 4 3 11 1634 1765 176 37 93.216957 corporate5 1 2 4 3 12 1830 1771 49 21 91.707932 re-4 1 2 4 4 0 571 1811 1309 43 -1 5 1 2 4 4 1 571 1812 167 42 91.648094 spondents 1 2 4 4 2 753 1812 89 32 96.861900 until5 1 2 4 4 3 857 1812 172 32 96.047081 sometimes 1 2 4 4 4 1045 1812 35 31 96.237526 in5 1 2 4 4 5 1095 1812 184 32 96.040192 December5 1 2 4 4 6 1296 1813 89 30 95.735855 1961.5 1 2 4 4 7 1423 1812 67 32 92.261932 His5 1 2 4 4 8 1505 1812 138 31 95.808716 address5 1 2 4 4 9 1659 1812 29 31 96.816620 is5 1 2 4 4 10 1701 1811 36 31 96.699547 in5 1 2 4 4 11 1753 1821 75 22 94.601219 cares 1 2 4 4 12 1841 1811 39 31 94.601219 of4 1 2 4 5 0 568 1862 1226 42 -1 5 1 2 4 5 1 568 1863 189 33 96.108551 Hoffmann5 1 2 4 5 2 774 1863 158 32 95.685951 Aircraft5 1 2 4 5 3 949 1863 173 41 96.199051 Institute,5 1 2 4 5 4 1139 1863 82 32 95.779770 79245 1 2 4 5 5 1237 1863 123 41 96.005249 Floyd,5 1 2 4 5 6 1379 1863 174 33 96.696495 Overland5 1 2 4 5 7 1570 1862 101 41 96.227104 Park,5 1 2 4 5 8 1687 1863 107 30 96.483208 Kans.3 1 2 5 0 0 564 1912 1316 297 -1 4 1 2 5 1 0 611 1912 1269 42 -1 5 1 2 5 1 1 611 1914 81 31 95.351608 Par.5 1 2 5 1 2 708 1916 29 29 94.542801 2.5 1 2 5 1 3 760 1913 235 41 95.836914 Respondents5 1 2 5 1 4 1012 1924 55 21 96.694336 ares 1 2 5 1 5 1079 1924 87 30 96.547554 now,5 1 2 5 1 6 1180 1913 66 32 96.274765 ands 1 2 5 1 7 1261 1914 85 31 96.274765 have5 1 2 5 1 8 1357 1913 82 32 96.920341 been5 1 2 5 1 9 1454 1913 57 31 95.741554 for5 1 2 5 1 10 1522 1923 93 22 96.032303 more5 1 2 5 1 11 1628 1912 84 33 96.032303 than5 1 2 5 1 12 1725 1922 62 22 96.321304 ones 1 2 5 1 13 1798 1921 82 32 96.462112 year4 1 2 5 2 0 569 1961 1311 44 -1 5 1 2 5 2 1 569 1965 66 31 96.193207 lasts 1 2 5 2 2 649 1968 86 37 96.193207 past,5 1 2 5 2 3 751 1963 150 42 96.641380 engaged5 1 2 5 2 4 917 1963 35 32 96.641380 in5 1 2 5 2 5 967 1963 58 32 96.991707 thes 1 2 5 2 6 1039 1964 69 32 96.313263 sales 1 2 5 2 7 1120 1963 67 32 96.848518 ands 1 2 5 2 8 1204 1962 219 33 96.525665 distributions 1 2 5 2 9 1436 1962 38 33 96.271156 of5 1 2 5 2 10 1487 1974 20 20 96.271156 a5 1 2 5 2 11 1519 1973 115 22 96.413765 courses 1 2 5 2 12 1646 1962 39 32 96.706970 of5 1 2 5 2 13 1697 1962 102 40 96.333611 study5 1 2 5 2 14 1812 1961 68 32 96.869354 anda 1 2 5 3 0 569 2011 1311 45 -1 5 1 2 5 3 1 569 2014 201 33 96.472595 instructions 1 2 5 3 2 792 2014 161 33 96.381523 intended5 1 2 5 3 3 973 2018 36 29 96.775230 to5 1 2 5 3 4 1030 2025 143 31 96.430962 prepares 1 2 5 3 5 1194 2013 152 33 96.261719 students5 1 2 5 3 6 1366 2013 133 32 96.450996 thereof5 1 2 5 3 7 1519 2013 58 31 96.002533 for5 1 2 5 3 8 1597 2013 227 40 96.078453 employment5 1 2 5 3 9 1843 2011 37 32 96.206955 in4 1 2 5 4 0 569 2062 1310 45 -1 5 1 2 5 4 1 569 2065 136 33 96.690041 various5 1 2 5 4 2 725 2065 165 42 96.713913 positions5 1 2 5 4 3 910 2064 37 33 96.341125 in5 1 2 5 4 4 965 2065 58 33 96.341125 thes 1 2 5 4 5 1042 2064 122 32 96.452484 airlines 1 2 5 4 6 1185 2064 167 42 95.722046 industry.5 1 2 5 4 7 1393 2064 73 34 96.784859 Thes 1 2 5 4 8 1486 2074 115 22 95.926460 courses 1 2 5 4 9 1620 2063 29 32 95.926460 is5 1 2 5 4 10 1668 2062 148 42 96.520012 pursued5 1 2 5 4 11 1834 2062 45 42 96.520012 by4 1 2 5 5 0 569 2112 1309 46 -1 5 1 2 5 5 1 569 2117 284 41 96.501572 correspondence5 1 2 5 5 2 878 2116 151 41 96.469116 through5 1 2 5 5 3 1057 2116 58 31 96.966469 thes 1 2 5 5 4 1141 2115 130 34 96.390450 United5 1 2 5 5 5 1287 2112 125 36 96.722328 States5 1 2 5 5 6 1440 2115 82 31 96.752533 mails 1 2 5 5 7 1553 2114 66 32 96.555771 ands 1 2 5 5 8 1646 2114 36 32 96.723007 in5 1 2 5 5 9 1710 2113 168 33 96.291229 residence4 1 2 5 6 0 564 2164 868 45 -1 5 1 2 5 6 1 564 2166 158 43 92.600861 training5 1 2 5 6 2 732 2171 35 28 96.654442 at5 1 2 5 6 3 777 2167 58 31 92.093597 thes 1 2 5 6 4 845 2166 111 32 92.093597 schools 1 2 5 6 5 970 2166 36 31 96.733910 in5 1 2 5 6 6 1015 2166 136 31 96.844620 Kansas5 1 2 5 6 7 1162 2164 89 42 96.593079 City,5 1 2 5 6 8 1261 2164 171 33 96.186813 Missouri.3 1 2 6 0 0 565 2212 1315 395 -1 4 1 2 6 1 0 610 2212 1270 42 -1 5 1 2 6 1 1 610 2217 80 32 95.377472 Par.5 1 2 6 1 2 717 2219 29 30 86.017601 3.5 1 2 6 1 3 769 2217 43 32 94.954765 In5 1 2 6 1 4 835 2217 59 32 96.769241 thes 1 2 6 1 5 916 2226 116 23 96.811340 courses 1 2 6 1 6 1056 2216 66 32 96.744484 ands 1 2 6 1 7 1147 2215 145 33 96.327461 conducts 1 2 6 1 8 1314 2215 38 31 96.327461 of5 1 2 6 1 9 1375 2213 88 33 96.742470 theirs 1 2 6 1 10 1486 2213 152 34 96.746880 business5 1 2 6 1 11 1660 2212 220 42 96.397575 respondents4 1 2 6 2 0 565 2262 1315 46 -1 5 1 2 6 2 1 565 2268 89 32 89.690567 have5 1 2 6 2 2 669 2268 120 32 96.617470 caused5 1 2 6 2 3 805 2267 73 32 96.302498 said5 1 2 6 2 4 893 2278 116 22 96.608253 courses 1 2 6 2 5 1024 2266 38 33 96.906433 of5 1 2 6 2 6 1077 2265 100 43 96.789314 study5 1 2 6 2 7 1194 2265 67 32 96.289207 ands 1 2 6 2 8 1278 2265 200 32 96.241966 instructions 1 2 6 2 9 1492 2269 36 27 97.003586 to5 1 2 6 2 10 1543 2265 40 31 97.004204 be5 1 2 6 2 11 1597 2269 74 27 96.082741 sents 1 2 6 2 12 1684 2264 90 32 96.082741 from5 1 2 6 2 13 1789 2262 91 34 96.258324 their4 1 2 6 3 0 565 2313 1314 48 -1 5 1 2 6 3 1 565 2320 99 41 94.741867 places 1 2 6 3 2 679 2319 39 32 96.272888 of5 1 2 6 3 3 733 2318 151 33 96.233643 business5 1 2 6 3 4 902 2318 35 32 96.233643 in5 1 2 6 3 5 952 2318 58 32 96.771248 thes 1 2 6 3 6 1027 2317 96 34 96.659973 States 1 2 6 3 7 1138 2317 37 32 96.782463 of5 1 2 6 3 8 1191 2316 161 32 96.767693 Missouri5 1 2 6 3 9 1369 2321 46 35 96.991379 to,5 1 2 6 3 10 1430 2316 72 31 96.750481 into5 1 2 6 3 11 1518 2315 68 32 96.204498 ands 1 2 6 3 12 1600 2315 150 41 96.204498 through5 1 2 6 3 13 1766 2313 113 34 96.528122 States4 1 2 6 4 0 568 2364 1311 43 -1 5 1 2 6 4 1 568 2370 39 31 96.898109 of5 1 2 6 4 2 624 2370 57 32 96.452698 thes 1 2 6 4 3 697 2369 131 34 96.192009 United5 1 2 6 4 4 847 2368 113 33 96.615936 States5 1 2 6 4 5 978 2369 95 31 96.379150 others 1 2 6 4 6 1091 2368 84 32 96.479866 than5 1 2 6 4 7 1190 2367 60 33 96.629883 thes 1 2 6 4 8 1269 2366 95 33 96.444572 States 1 2 6 4 9 1381 2366 38 32 96.947205 of5 1 2 6 4 10 1437 2365 171 42 96.438004 Missouri,5 1 2 6 4 11 1626 2369 35 29 96.798264 to5 1 2 6 4 12 1679 2364 200 43 96.510506 purchasers4 1 2 6 5 0 568 2415 1309 37 -1 5 1 2 6 5 1 568 2420 133 32 96.802734 thereof5 1 2 6 5 2 717 2419 131 33 96.963684 located5 1 2 6 5 3 862 2419 36 32 96.963684 in5 1 2 6 5 4 913 2419 81 32 96.862061 such5 1 2 6 5 5 1008 2419 95 32 96.264366 others 1 2 6 5 6 1119 2417 120 34 96.273140 States.5 1 2 6 5 7 1275 2418 110 31 95.849403 There5 1 2 6 5 8 1398 2418 61 31 96.756462 has5 1 2 6 5 9 1471 2417 82 31 96.552422 been5 1 2 6 5 10 1569 2421 35 27 96.631012 at5 1 2 6 5 11 1617 2417 46 31 94.482872 all5 1 2 6 5 12 1676 2415 99 33 93.239403 times5 1 2 6 5 13 1787 2425 90 21 92.638474 men-4 1 2 6 6 0 568 2465 1308 42 -1 5 1 2 6 6 1 568 2470 113 33 95.198402 tioned5 1 2 6 6 2 696 2470 116 32 95.593231 herein5 1 2 6 6 3 828 2481 19 21 96.650581 a5 1 2 6 6 4 862 2470 201 32 96.117401 substantial5 1 2 6 6 5 1079 2479 116 22 96.820656 courses 1 2 6 6 6 1209 2469 38 31 96.795761 of5 1 2 6 6 7 1262 2468 97 32 78.951462 traces 1 2 6 6 8 1374 2468 34 31 96.418320 in5 1 2 6 6 9 1423 2467 73 33 97.001984 said5 1 2 6 6 10 1512 2477 115 22 96.761292 courses 1 2 6 6 11 1640 2466 40 32 96.375061 of5 1 2 6 6 12 1693 2466 101 41 95.737152 study5 1 2 6 6 13 1810 2465 66 32 96.455109 anda 1 2 6 7 0 568 2518 1310 44 -1 5 1 2 6 7 1 568 2521 211 41 96.467613 instruction,5 1 2 6 7 2 802 2532 35 21 96.648537 so5 1 2 6 7 3 859 2521 73 32 96.795158 sold5 1 2 6 7 4 955 2520 66 31 96.966263 ands 1 2 6 7 5 1044 2518 202 33 96.299263 distributed5 1 2 6 7 6 1267 2518 44 42 96.299263 by5 1 2 6 7 7 1332 2518 220 41 95.969765 respondents5 1 2 6 7 8 1573 2518 37 30 86.739006 in5 1 2 6 7 9 1630 2527 190 29 96.511452 commerce,5 1 2 6 7 10 1842 2526 36 21 96.799286 as4 1 2 6 8 0 568 2567 1114 40 -1 5 1 2 6 8 1 568 2572 221 35 95.671303 “commerce”5 1 2 6 8 2 800 2572 29 31 96.582199 is5 1 2 6 8 3 841 2571 130 32 96.582199 defined5 1 2 6 8 4 982 2570 35 32 96.650986 in5 1 2 6 8 5 1027 2570 58 32 96.792023 thes 1 2 6 8 6 1094 2569 144 38 95.948128 Federal5 1 2 6 8 7 1249 2569 113 32 95.948128 Trades 1 2 6 8 8 1373 2567 223 35 95.989609 Commissions 1 2 6 8 9 1605 2567 77 32 96.614113 Act.3 1 2 7 0 0 562 2616 1315 97 -1 4 1 2 7 1 0 610 2616 1267 47 -1 5 1 2 7 1 1 610 2623 80 31 95.638275 Par.5 1 2 7 1 2 709 2624 28 29 96.239189 4.5 1 2 7 1 3 761 2621 235 42 96.275276 Respondents5 1 2 7 1 4 1015 2624 35 29 96.291267 at5 1 2 7 1 5 1066 2621 47 32 96.221504 all5 1 2 7 1 6 1131 2620 98 33 96.202110 times5 1 2 7 1 7 1247 2619 192 32 96.167107 mentioned5 1 2 7 1 8 1454 2618 127 41 96.341537 herein,5 1 2 7 1 9 1597 2618 87 32 96.233505 have5 1 2 7 1 10 1699 2617 91 40 96.816437 been,5 1 2 7 1 11 1810 2616 67 33 96.699562 anda 1 2 7 2 0 562 2667 1315 46 -1 5 1 2 7 2 1 562 2684 63 20 88.222221 ares 1 2 7 2 2 648 2684 85 29 83.799919 now,5 1 2 7 2 3 758 2673 36 31 96.003296 in5 1 2 7 2 4 818 2671 202 33 96.652748 substantial5 1 2 7 2 5 1046 2670 219 42 96.605209 competitions 1 2 7 2 6 1288 2671 35 30 96.417564 in5 1 2 7 2 7 1347 2680 182 21 96.417564 commerce5 1 2 7 2 8 1552 2668 83 32 96.417168 with5 1 2 7 2 9 1657 2667 220 40 96.478546 individuals, Complaint 61 F.T.C.

firms and corporations engaged in the sale and distribution of like courses of study and instruction.

Par. 5. In the course and conduct of their business, as aforesaid, respondents employ commission sales agents or representatives who call upon prospective purchasers and solicit their purchase of said course of study and instruction.

In the course of such solicitation, such sales agents or representatives have made directly or by implication many statements and representations to purchasers and prospective purchasers of said course of study and instruction; typical, but not all inclusive, of which are the following: OF , 1. Employment with an airline is guaranteed to persons completing respondents’ course of study and instruction; or that such persons are otherwise assured of employment with an airline upon completion of respondents’ course of study and instruction ; 2. Respondents are affiliated with or are sponsored by Trans World Airlines, a large and well known airline. 3. Persons enrolling in respondents’ course will receive free air transportation from their place of residence to Kansas City, Missouri, for the purpose of attending the resident portion of respondents’ course.

Par. 6. In truth and in fact:

1. Respondents do not guarantee employment with an airline to persons completing respondents’ course. Such persons are in no way assured of employment with an airline upon completion of said course. .

2. Respondents are neither affiliated with nor sponsored by Trans World Airlines or any other airline.

3. Persons enrolling in respondents’ course do not receive free air transportation from their place of residence to Kansas City, Missouri, for the purpose of attending the resident portion of respondents” course.

Therefore, the representations referred to im paragraph 5 were, and are, false, misleading and deceptive.

Par. 7. The use by respondents of the foresaid false, misleading and deceptive statements, representations and practices, has had, and now has, the tendency and capacity to mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that said statements and representations were and are true and to induce a substantial number thereof to purchase respondents said course of study and instruction. AMERICAN TRANSPORTATION INSTITUTE; INC., ET AL. 965 962. Decision and Order Par. 8. The aforesaid acts and practices of respondents as herein alleged, were, and are, all to the prejudice and injury of the public and of respondents’ competitors and constituted and now constitute, unfair methods of competition in commerce and unfair and deceptive acts and practices in commerce, in violation of Section 5(a) (1) of the Federal Trade Commission Act.

Decision AND ORDER The Commission having heretofore determined to issue its complaint charging the respondents named in the caption hereof with violation of the Federal Trade Commission Act, 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 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’s 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 following order:

1. Respondent American Transportation Institute, Inc., formerly known as Air Age Institute, Inc., is a corporation organized, existing and doing business under the laws of the State of Missouri, with its principal office and place of business located at 1211 Walnut Street in the city of Kansas City, State of Missouri. Respondent Leslie M. Reed is an officer of said corpore ation and his address is the same as that of said corporation. Respondent Arthur F. Lohrey was formerly an officer of said corporation. His address is in care of Hoffman Aircraft Institute, 7924 Floyd, Overland Park, Kansas.

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.

ORDER It is ordered, That respondents American Transportation Institute, Inc., formerly known as Air Age Institute, Inc., a corporation, and its 728-122—65. 62 966 ; FEDERAL TRADE COMMISSION DECISIONS Syllabus 61 F.T.C.

officers, and Leslie M. Reed, individually and as an officer of said corporation, and Arthur F. Lohrey individually, and respondents’ representatives, agents and employees, directly or through any corporate or other device, in connection with the offering for sale, sale and distribution of courses of training and instruction in commerce as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing, directly or by implication, that: 1. Employment with an airline is guaranteed to persons completing respondents’ course of study and instruction, or that such persons are otherwise assured of employment with an airline upon completion of respondents’ course of study and instruction, or misrepresenting in any other manner the opportunities for employment by persons completing said course.

2. Respondents are affiliated with or sponsored by Trans World Airlines or any other airline, or misrepresenting in any other manner respondents’ relationship with members of the airline industry.

3. Persons enrolling in respondents’ course will receive free air transportation from their place of residence to Kansas City, Missouri, for the purpose of attending the resident training portion of respondents’ course, or representing in any other manner that persons enrolling in said course can attend the resident training portion of said course without expense for transportation between their place of residence and respondents’ resident training school. 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 report in writing setting forth in detail the manner and form in which they have complied with this order.