Paint. One of the largest manufacturers and distributors of paint, and its wholly-owned subsidiary corporations, were charged with discriminations in price in various ways; among others, by the discriminatory use of discounts allegedly granted through classifying buyers selling to consumers as wholesalers or distributors in some instances and as retailers in other instances, and the combining of orders to obtain quantity discounts. (3965.) Crayon manufacturers.-Two of the largest manufacturers and distributors of crayons, chalk, and allied products were charged in separate complaints with having directly discriminated in price between their customers purchasing such products and with having indirectly discriminated by compensating some customers for services connected with the resale of such products and not making available on proportionally equal terms such compensation to other customers competing with those so favored. (4142 and 4143.) Bread company.-One of the large nation-wide manufacturers and distributors of bakery products was charged with violation of the Robinson-Patman Act through discriminating in price and with violation of the Federal Trade Commission Act through use of various oppressive, monopolistic, and deceptive acts and practices, including setting prices and stating or implying that reprisals in the form of price cutting would follow deviation from such prices by any competing manufacturer; promotion of the sale of its bread by retailers through lottery devices; secretly giving away to some retailstore operators certain free goods to the detriment of competing bakers, and giving to some of its retail customers, free of charge, valuable facilities such as bread racks and trays, thereby preventing competitiors from having their bread adequately displayed for resale. (4149.) ALLEGED VIOLATION OF SECTION 2 (c) OF THE CLAYTON ACT, AS AMENDED BY THE ROBINSON-PATMAN ACT Department-store chain.-A number of department stores operating under substantially the same name in many cities and towns of North Carolina, South Carolina, and Virginia were charged with having received brokerage fees and commissions, or allowances in lieu thereof, on purchases of merchandise. Orders allegedly were placed by a common director having an office in New York, who was employed as a vice president to act in the capacity of purchasing agent. (3955.) ALLEGED VIOLATIONS OF SECTION 3 OF THE CLAYTON ACT Spark plugs and oil filters.-See Complaints Charging Violation of Section 2, etc., Spark Plugs, p. 44. (3886 and 3977.) Fire-fighting equipment, parts and supplies.—A manufacturer of fire-fighting equipment was charged, among other things, with entering into license agreements with other corporations, such agreements con taining provisions whereby the licensee corporations were to purchase from the respondent licensor all the parts, apparatus, and equipment necessary for the manufacture, sale, and installation by them of carbondioxide fire-extinguishing systems and carbon-dioxide portable fire extinguishers. Violation of section 5 of the Federal Trade Commission Act was also alleged. (For further details, see Orders to Cease and Desist, p. 64. (3929.) Tubular rivets.-Three manufacturers of rivet-setting machines and tubular rivets for use therein were charged with leasing and licensing their rivet-setting machines to customers on the condition, agreement, or understanding that the lessees or licensees thereof would not use the machines for setting tubular rivets other than those manufactured by the respondent. (4110, 4111, 4113.) In addition to the complaints listed above, which were filed during the fiscal year ended June 30, 1940, there were pending, and in the process of trial, similar representative complaints against three wire and steel strap-tying machine manufacturers; an automobile parts and accessories manufacturer; a miner and distributor of pyrophyllite, which is an aluminum silicate used in the manufacture of earthenware; a manufacturer of bowling alley equipment; a manufacturer of corn products, and a manufacturer of frozen confections. ALLEGED VIOLATIONS OF SECTION 7 OF THE CLAYTON ACT 5 Automobile storage batteries.-An electric storage-battery company and its subsidiary were charged with unlawful acquisition of the capital stock of a competitor. (3892.) Cane-fiber board.-One of the country's largest manufacturers of structural insulation and acoustical material (the only manufacturer of such material from cane fiber with factories located in the United States proper) was charged with acquisition of the capital stock of a competitor. (3927.) Oil-well equipment.-A manufacturer of oil-well equipment was charged with unlawful acquisition of the capital stock of competing corporations. (4172.) 6 ORDERS TO CEASE AND DESIST UNFAIR TRADE PRACTICES PROHIBITED IN 282 CASES The Commission issued 282 orders to cease and desist from the use of unfair methods of competition and other violations of law during 5 See Stock Acquisitions, Mergers, and Consolidations, p. 30. Under sec. 12 of the Federal Trade Commission Act, as amended by the Wheeler-Lea Act, a total of 204 orders to cease and desist have been entered (since the effective date of the act as amended), preventing dissemination of false advertisements of food (31 cases), drugs (108 cases), devices (19 cases), and cosmetics (46 cases). Of the total, 115 orders were entered during the last fiscal year representing food (16 cases), drugs (65 cases), devices (7 cases), and cosmetics (27 cases). the fiscal year ended June 30, 1940. One of the 282 orders was rescinded, leaving a net total of 281. The following list of respondents who were served with orders to cease and desist contains 280 names, due to the rescission of the one order and to the fact that 2 of the orders had been directed against the same respondent and related to substantially the same subject matter, this respondent's name consequently appearing but once. LIST OF RESPONDENTS Respondent Adele, Mme., and others__ Misrepresenting results effected: cosmetics. Affiliated Products, Inc--- Misrepresenting results effected: cosmetics. Al Viola Products-- Misrepresenting results effected: preparation for tightening dentures. Alle-Rhume Remedy Co., Inc., and others- Misrepresenting therapeutic value: medicinal prepa rations. American Clinical Laboratories, Inc., and others. Misrepresenting results effected and failing to disclose harmful potentialities: flesh-reducing compound. American Distributors, Inc., and others_ Misrepresenting therapeutic value: medicinal prepa rations. American Memorial Co--- Distributor claiming to be manufacturer; advertising as gifts or premiums articles whose cost is included in the price charged for other purchases: granite and marble monuments. Location Jersey City, N. J. Los Angeles. Jersey City, N. J. Flushing, N. Y. Linton, Ind. Atlanta. American Veneer Package Association, Inc., and others---- Washington, D. C. Combining in restraint of trade: wooden containers for fruits and vegetables. America's Medicine, and others.... Misrepresenting therapeutic value and failing to disclose harmful potentialities: medicinal preparations. Anesthetic Laboratories, Inc-- Passing off a commercial enterprise as a guild operating without profit for the benefit of the dental and medical professions: anesthetics. Anheuser-Busch, Inc---- Price discrimination: bakers' yeast. Anthony Co., C. R., and others--- Price discrimination: wearing apparel. Antisepto Products Co., and others___ Misrepresenting therapeutic value and failing to disclose harmful potentialities: medicinal preparations. Chicago. Do. St. Louis. Oklahoma City. Chicago. LIST OF RESPONDENTS Respondent Arvil Co-‒‒‒‒‒ Misrepresenting results effected and failing to disclose harmful potentialities: hair dyes. Association of American Arts, Inc., and others... Passing off tinted enlargements of photographs as paintings; misrepresenting prices and conditions of sale: picture frames and tinted enlargements of photographs. Aurine Co., Inc-----. Misrepresenting results effected: oil for use in the ears. Averbach Co., Inc., and others--- Distributor claiming to be manufacturer; misrep resenting quality of merchandise and financial returns to agents: food products, cosmetics, and novelty merchandise. B & T Floor Co_ Misrepresenting chromium content; distributor claiming to be manufacturer: metal trimmings. B & T Sales Co Misrepresenting therapeutic value: medicinal prepa rations. Bauer & Black_ Misrepresenting results effected: cosmetics. Belmont Sales Co., and others---. Lottery novelty merchandise. Benson Specialty Co.-- Misrepresenting prices, quality, construction, and durability and falsely claiming products have been approved by an underwriters' laboratory: fountain pens, jewelry, and electrical appliances. Bergman, Henry___. Misrepresenting prices, value of merchandise, and results effected: books, divining rods, and fortune telling crystals. Berkeley Studios International Press Service, Inc., and others--- Falsely claiming to be affiliated with press agencies: photographs. Location Chicago. Boston. Chicago. St. Paul. Columbus, Ohio. Indianapolis. Chicago. Do. Minneapolis. Springfield, Mo. Boston. LIST OF RESPONDENTS Respondent Cardinal Company, and others. Misrepresenting therapeutic value and failing to disclose harmful potentialities: medicinal preparations. Casa Blanca Cigar Co., and others--- Passing off cigars not hand-made or composed of Cuban tobacco, as hand-made, Havana cigars: cigars. Chanel, Inc‒‒‒‒‒‒ Passing off domestic products as imported products: cosmetics. Chapman Health Products Co., and others___ Misrepresenting therapeutic value and failing to disclose harmful potentialities: medicinal preparations. Chenille Corporation of America‒‒‒‒‒‒ Passing off machine-made products as hand-made products: rugs. Christopher Candy Co---. Lottery candy. Civilian Preparatory Service, Inc. Misrepresenting availability of positions and relation to Federal Government: correspondence school (civil service). Clearwater, H. P_____ Misrepresenting therapeutic value: medicinal prep arations. Commonwealth Publishing Co--- Distributor claiming to be publisher and printer; misrepresenting financial returns to agents; representing that products have been approved by state and government officials, and that their use is a requirement in making tax returns: accounting systems for income tax. Consolidated Candy Co., Inc., and others--- Consolidated Pinnacle Coal Co., and others--- Location St. Louis. York, Pa. New York. Cleveland. Chicago. Los Angeles. Huntington, W. Va. Hallowell, Me. Chicago. Dallas. Lottery: candy. Denver. Passing off respondent's products as a superior product handled by competitors: coal. Detroit. Consolidated Silver Co. of America-- Misrepresenting value of premiums and terms under which coupons are redeemed; falsely claiming affiliation with favorably known business firms: silverware distributed as premiums in connection with a sales-promotion plan. Coty, Inc., and others--- Passing off domestic products as imported products: cosmetics. Crete Mills_. Misrepresenting results effected: poultry feed. Crown Distributing Co., and others--- Lottery novelty merchandise. Cuban Health Products, Inc__-- Misrepresenting therapeutic value: honey. Wilmington, Del. Crete, Nebr. Los Angeles. Lansing, Mich. |