briefs and the presentation of oral argument. Thereafter, the proceeding regularly came on for final hearing before the Commission on the complaint and substitute answer, and the Commission, having duly considered the matter and being now fully advised in the prem ises, finds that this proceeding is in the interest of the public and makes this its findings as to the facts and its conclusion drawn therefrom. FINDINGS AS TO THE FACTS PARAGRAPH 1. Respondents Margood Publishing Corp., Select Publications, Inc., Red Circle Magazines, Inc., Euclid Publishing Co., Inc., Zenith Publishing Corp., Bard Publishing Corp., Sphere Publications. Inc., Hercules Publishing Corp., Gem Publications, Inc., Miss America Publishing Corp., Cornell Publishing Corp., and London Publishing Corp., are corporations organized and existing under the laws of the State of New York, and, together with the individual respondents hereinafter mentioned, have their principal offices and places of business at 350 Fifth Avenue in New York City. PAR. 2. Respondents Martin Goodman and Jean Goodman are individuals residing at Smith Lane, Woodmere, Nassau County, Long Island, N. Y. Said individuals, who are husband and wife, are copartners trading as Magazine Management Co. from the said address, 350 Fifth Avenue, New York City. Said partnership owns stock in all of the corporations named as respondents in this proceeding, and said respondents Martin Goodman and Jean Goodman are the chief officers of each of said corporate respondents, and in their official capacities, at all times mentioned herein, have formulated, controlled, and directed the policies, acts, and practices of said corporate respondents. PAR. 3. For several years respondents were engaged in the publishing, sale, and distribution of books and other publications containing novels, fiction, or other stories or articles to dealers, purchasers, and users thereof, located in the various States of the United States and in the District of Columbia. Respondents caused said books and other publications, when so sold, to be transported from their principal place of business in New York City, or from the places of business of respondents' printers or distributors in certain States of the United States to dealers and purchasers thereof located in the various States of the United States other than the State in which such transportation originated or commenced. There was a course of trade and commerce by said respond Findings its in such books and other publications between and among the tates of the United States and in the District of Columbia. In the course and conduct of their business respondents were enged in direct and substantial competition with various corporations, rtnerships, and individuals likewise engaged in the sale and disibution in commerce between and among the various States of the nited States and in the District of Columbia of books and other blications containing novels, fiction, or other stories or articles. PAR. 4. In the course and conduct of their business and in connecon with the sale and distribution in commerce of their books or her publications, respondents represented and implied that they ntained the original, complete, and unabridged novels, stories, or ticles by the particular author; and in a number of instances reondents placed, or caused to be placed, conspicuously, on the covers f said books or publications the words "a complete $2.00 novel," or ther words of like import. PAR. 5. In truth and in fact, said books or publications did not conin the original, complete and unabridged novels, stories, or articles y the particular author, but contained condensed, abridged, or tered version of novels, stories, or articles previously published. In such instances, when said books or publications contained any notice of condensation, abridgment, or alteration of the original novel, story or article, such notice was set forth in fine print on an inside page, and was insufficient to adequately inform dealers and the public of uch condensation, abridgment, or alteration. Said notices were frequently contrary to statements that said novels, stories, or articles vere complete, appearing on the covers of said books or publications. PAR. 6. Respondents likewise changed the titles of a number of aid novels, stories, or articles without disclosing that such changes had been made, or without disclosing such changes in such manner as to be informative to purchasers and prospective purchasers, thus causing or tending to cause purchasers to buy books or publications containing condensed or abridged versions of novels, stories, or articles read by them previously, and which they would not have purchased if said novels, stories, or articles had been properly identified as to the titles under which they were previously published. Where said books or publications contained any notice of such change of title, such notice was set forth in fine print on an inside page, and was insufficient to adequately inform dealers and the public of such change of title. PAR. 7. The aforesaid representations and implications and omissions made by respondents had the capacity and tendency to and did mislead and deceive purchasers and prospective purchasers of respond ents' books or publications by creating the erroneous and mistaken be lief that such representations and implications were true and that th said publications sold by respondents contained the original complet and unabridged novels, stories and articles of particular author and that the titles therefor had not been changed, and said erroneou and mistaken beliefs so engendered caused a substantial number of members of the public to buy said books or publications of respond ents, thereby diverting trade in said commerce to respondents from their competitors who did not misrepresent their books or publication or the novels, stories, or articles therein contained. By such repre sentations, implications, and omissions, respondents caused serious injury to substantial competition in said commerce. PAR. 8. While the record indicates that respondents have discon tinued the practices herein referred to, there is no assurance that such practices will not be resumed in the future, and the Commission is therefore of the opinion that in the public interest the foregoing findings as to the facts should issue, together with an order requiring respondents to cease and desist from such practices. CONCLUSION The acts and practices of the respondents, as herein found were all to the prejudice of the public and of respondents' competitors, and constituted unfair methods of competition in commerce and unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act. ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission and the substitute answer of respondents, in which answer respondents admit all of the material allegations of fact in the complaint, and respondents hav ing waived all intervening procedure and further hearings, including the filing of briefs and the presentation of oral argument, and the Commission having made its findings as to the facts and conclusion that the respondents have violated the provisions of the Federal Trade Commission Act: It is ordered, That the respondents, Margood Publishing Corp., Select Publications, Inc., Red Circle Magazines, Inc., Euclid Publishing Co., Inc., Zenith Publishing Corp., Bard Publishing Corp., Sphere Publications, Inc., Hercules Publishing Corp., Gem Publications, Inc., Miss America Publishing Corp., Cornell Publishing Corp. and Lon Order Publishing Corp., corporations, and their officers, and Martin dman and Jean Goodman, individually and as officers of the aboveed corporations, and as copartners trading as Magazine Manageit Co., and respondents' representatives, agents, and employees, ctly or through any corporate or other device, in connection with offering for sale, sale and distribution of books and other publions in commerce, as "commerce" is defined in the Federal Trade mission Act, do forthwith cease and desist from: Representing, directly or indirectly, that respondents' books or er publications contain original, complete, or unabridged novels, ies, or articles when such is not the fact. Failing to adequately inform dealers and the public of the consation, abridgment, or alteration of the novels, stores, or articles tained in respondents' books or other publications. 1. Changing the titles of said novels, stories, or articles without closing clearly and conspicuously that such changes have been de. t is further ordered, That the respondents shall, within 60 days er service upon them of this order, file with the Commission a report writing setting forth in detail the manner and form in which they ve complied with this order. 789940-50- -9 Syllabus IN THE MATTER OF ELGIN RAZOR CORPORATION ET AL. 44 F. COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLA OF SECTION 5 OF AN ACT OF CONGRESS APPROVED SEPTEMBER 26, 191 Docket 4458. Complaint, Feb. 4, 1941-Decision, Aug. 14, 1947 Where certain trade names, namely, the words "Elgin," "Hamilton," "Re ton," and "Underwood," which were the property of four manufac of precision instruments, including watches, typewriters, bookkeeping, chines, etc., and were a part of said manufacturers' respective cor: names, had been widely advertised, and had come to be well and a ably known, throughout the United States and to be associated by the with the respective companies and their products, for which t a preference on the part of a substantial portion of such public; thereafter A corporate and individual group, which was engaged in the manufacture competitive interstate sale and distribution of novelty merchandise, cluding electric shavers, cameras, sunlamps, talking machines, ela clocks and electric lighters, and which included (1) five corporat and a husband and wife, and their son and nephew, who were holders, officers and directors of said corporations, and directed and ried on the acts and practices herein concerned-operating at va times under numerous trade names including the names "Kee facturing Company," "Razor Service Co.," "General Chromium ani per Company,” and “Utility Manufacturing Company”—in addition other stockholders who participated actively in the practices in qe and (2) three corporations, and the daughter and son-in-law of the above referred to, who, along with three others, were stockholders. and directors of one or more of said corporations, and also particip actively in the practices below set out (a) Adopted and used for their products, including particularly their ele shavers and cameras, aforesaid well-known and long-established names, imprinted them upon certain of the products themselves and cartons in which they were packaged and sold, and featured the in the advertising literature distributed among prospective purcha and in newspaper advertisements published in many cities and throughout the United States; and (b) Included in the names of the three corporations first referred to-st upon their products and cartons and in their advertisements-the "Elgin" or "Underwood"; With the result that by reason of their wrongful and unauthorized aforesaid names, and attempts to capitalize thereon, numerous per purchased their products as and for those of the companies, whose they thus made use of; (c) Falsely represented that their electric shaver usually and regularly at retail at $15, through use of price tags reading $15 attached there and through similar representations in newspapers and other advertis |