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or other words or picturizations indicative of Cuban origin to designate cigars not made from tobacco grown in Cuba. It was found that the company's "Havana Counts" cigars were made entirely of domestic tobacco.

The Court unanimously affirmed the Commission's order and directed its enforcement, saying (107 F. (2d) 429):

A study of the voluminous testimony taken shows conclusively that the word "Havana" has acquired a special meaning or significance in the cigar trade when applied to a cigar. It has come to mean that a cigar labeled with a phrase in which the word is used, is made, at least in part, from tobacco grown in Cuba. This being true, it necessarily follows that the word cannot properly be used in describing a cigar made entirely of domestic tobacco. (See H. N. Heusner & Son, page 87, for similar case.)

Fashion Originators Guild of America, Inc., and others, New York, filed petitions for review of the Commission's order in the Second (New York), Sixth (Cincinnati), and Seventh (Chicago) Circuits, the principal and determinative case having been docketed in the Second Circuit. The Commission order had required the Guild (usually referred to as F. O. G. A.), its officers and directors, and membership composed of 225 manufacturers of textiles and women's garments to cease and desist from certain boycotts and monopolistic practices. Other respondents included approximately 100 manufacturers, converters, dyers, and printers of silk and rayon fabrics; retailer organizations in Chicago, Minneapolis, and Baltimore, their respective officers, directors, and members, and approximately 12,000 cooperating retailers.

The Commission found that as a result of the commanding position of the F. O. G. A. members in the wholesale garment trade many retailers deemed it necessary to carry their lines to meet the public demand; that F. O. G. A. brought about agreements, sometimes through threats, that its members would sell only to cooperating retailers; that retailer organizations agreed their members would not purchase from manufacturers who failed to cooperate with F. O. G. A.; that the garment manufacturers agreed to buy only textiles registered with the F. O. G. A. official registration bureau, and that textile members agreed to sell only to cooperating garment manufacturers.

At the year's close, the case awaited decision of the Second Circuit. (For further details see Annual Report of the Commission, 1939, pages 101 and 102.) (See Millinery Creators' Guild, Inc., and others, page 89 herein, for similar case.)

Geo. H. Lee Co., Omaha, Nebr., filed a petition in the Eighth Circuit (St. Louis) for review of the Commission's cease and desist

1 Commission's order affirmed by Circuit Court, July 22, 1940. Now pending in U. S. Supreme Court on certiorari.

order directed against what the Commission had found to be misleading claims as to the efficacy of "Gizzard Capsules," a remedy for worms in poultry. The company claimed that the Commission was estopped from issuing its order because of a prior decision by a United States District Court involving the same subject matter. At the year's close the case awaited the court's decision on the merits.* Gimbel Brothers, Inc., New York.-A petition for review of the Commission's order was docketed in the Second Circuit (New York). The order directed the corporation to cease and desist from using the word "wool" or "woolens" or any other word or term descriptive of wool, to describe, designate, or in any way refer to any fabric or product not composed wholly of wool, with the proviso that, in the case of fabrics or products composed in part of wool and in part of other fibers, such words may be used as descriptive of the wool content if there be used in immediate connection or conjunction therewith words truthfully describing and designating each constituent fiber or material thereof in the order of its predominance by weight, beginning with the largest single constituent. As of June. 30, 1940, the case awaited printing of the transcript.

Goodyear Tire & Rubber Co., Akron, Ohio.-The Commission filed a petition in the Supreme Court for writ of certiorari, to review the decision of the Sixth Circuit (Cincinnati) (101 F. (2d) 620) setting aside its cease and desist order directed against price discrimination in violation of the Clayton Act. (See Annual Report of the Com mission, 1939, pages 102–103. For prior decisions, see 92 F. (2d) 677; 304 U. S. 257; 101 F. (2d) 620.) The petition was denied (308 U. S. 557).

The Great Atlantic & Pacific Tea Co., New York.-The Third Circuit (Philadelphia) unanimously affirmed the Commission's order requiring this company to cease and desist from violation of the brokerage provision of section 2 of the Clayton Act (106 F. (2d) 667).

The court directed enforcement of the Commission's order, which prohibited The Great Atlantic & Pacific Tea Co. from accepting allowances and discounts in lieu of brokerage on its purchases of commodities in interstate commerce. The court's opinion is a clear-cut ruling on the most important questions which have arisen in connection with the interpretation and application of the brokerage provision of the act.

The court held that the "services-rendered" clause of the brokerage paragraph did not set up a condition upon which brokerage could be paid or allowed to a buyer on his own purchases; that that paragraph absolutely prohibited the payment of such brokerage; that paragraph (c) was entirely independent of paragraph (a), the general price

2 Commission's order reversed July 23, 1940.

discrimination paragraph of the act, and that the provisions of the latter could not be read into the former; and that paragraph (c), as construed and applied by the Commission, was not violative of the Constitution.

During the course of its opinion, the Court said:

The question presented for our consideration is simply whether or not the vendee may be compensated for services rendered by the vendee's agent acting as agent for the vendors. It is obvious that dual representation by agents opens a wide field for fraud and oppression. Conflicting interests are always engaged when an attempt is made by buyers and sellers to arrive at a market price for commodities. We entertain no doubt that it was the intention of Congress to prevent dual representation by agents purporting to deal on behalf of both buyer and seller.

The practice of paying brokerage, or sums in lieu of brokerage to buyers or their agents by sellers was found by Congress to be an unfair trade practice resulting in damage to commerce. Paragraph (c) prohibits such practice. We conclude that Congress has properly exercised its power to the end that the named abuse may be done away with.

The company filed a petition in the Supreme Court for writ of certiorari, which was denied (308 U. S. 625), as was a petition for rehearing (309 U. S. 694). (Other brokerage cases are Quality Bakers of America, p. 90, and the Webb-Crawford Co., p. 94.)

Hershey Chocolate Corporation, Hershey, Pa.; Peter Cailler Kohler Swiss Chocolate Co., Inc., Fulton, N. Y., Lamont, Corliss & Co., New York; Sanitary Automatic Candy Corporation, New York; Berlo Vending Co., Philadelphia; and Confection Cabinet Co., Newark, N. J.-These companies, which include two of the largest chocolate candy-bar manufacturers, a sales corporation, and the three largest vending-machine operators, filed petition in the Third Circuit (Philadelphia) to review and set aside the Commission's order directed against restraint of trade agreements in the sale of candy bars to the vending-machine trade. At the end of the year the case awaited briefing and argument. (For further details see Annual Report of the Commission, 1939, p. 104.)

H. N. Heusner & Son, Hanover, Pa.-The Third Circuit (Philadelphia) unanimously affirmed the Commission's order in this case and directed its enforcement (106 F. (2d) 596).

The order required the company to cease and desist from "representing, through the use of the words 'Havana' or 'Habana,' that cigars not manufactured entirely from tobacco grown on the island of Cuba are Havana cigars." The Commission found that the petitioner's "Heusner's Havana Smokers" and "Martinez Havana Smokers" have not at any time contained Havana tobacco, but have been manufactured entirely from domestic tobacco grown in the United States. Commenting on a "Notice" appearing on the box in which

they were packed-"These cigars are made in the United States and only of United States tobacco"-the court said:

The difficulty of petitioner's position lies in the fact that the implication of the word "Havana" is totally false. The purchaser can be guided by either label or legend, but not by both.

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We doubt if petitioner would accede to a true qualification-"Fake Havana Smokers."

(See El Moro Cigar Co., p. 84, for similar case.)

International Art Co. and others, Chicago.-The Seventh Circuit (Chicago) unanimously decided this case in favor of the Commission (109 F. (2d) 393). The order had been directed against false and misleading representations in connection with the interstate advertising and sale as "paintings" of tinted or colored enlargements of family and other photographs and of frames therefor. Petition for writ of certiorari filed by the respondent was denied by the Supreme Court.

Justin Haynes & Co., Inc., New York. The Second Circuit (New York) unanimously affirmed the Commission's cease and desist order (105 F. (2d) 988) prohibiting certain misrepresentations concerning the therapeutic value of a medication for external use containing 1.5 percent of aspirin and designated "Aspirub." Petition for a writ of certiorari was denied (308 U. S. 616).

Kidder Oil Co., La Crosse, Wis.-This company filed a petition in the Seventh Circuit (Chicago) to review and set aside the Commission's order which was directed against the dissemination of misleading representations in the sale of a lubricant designated as "Koatsal." Among other things, the order directed the petitioner to cease representing that "Koatsal" penetrates and adheres to all metal surfaces it reaches, permeates the pores of the metal, soaks into the metal, providing a plating on the metal for moving parts to ride on, or that the lubricating qualities of this product are any greater than those of the oil which it contains. At the year's close the case awaited briefing and argument.

McKinley-Roosevelt College of Arts and Sciences, Chicago, filed a petition in the Seventh Circuit (Chicago) to review and set aside the Commission's order prohibiting the use of the words "college" and "university" in the petitioner's corporate or trade names and also the use of symbols indicating academic degrees after the names of faculty members when the degrees so indicated were not the result of study pursued at recognized colleges or universities. The Commission had found that petitioner was the successor of a number of correspondence schools operated under various corporate names by Walter Raleigh Taylor, as president, and his wife as secretarytreasurer; that the entire business was carried on in a Chicago apart

ment; that it lacked all requirements with respect to equipment and educational facilities which would enable it to be classified as a college or university; and that it advertised courses leading to degrees in arts, sciences, philosophy, education, and a large number of other branches of learning. At the year's close the case awaited certification.

Mentho-Mulsion, Inc., and others, Atlanta.-These respondents filed petition in the Fifth Circuit (New Orleans) to review and set aside the Commission's order directed against misrepresentations concerning the efficacy of cough and cold medicines sold by them. As of June 30, 1940, the case awaited printing of the transcript.

Millinery, Creators' Guild, Inc., and others, New York.-Unanimous decision for the Commission in this case was handed down by the Second Circuit (New York) (109 F. (2d) 175). The object of the petition for review had been to obtain a reversal of the Commission's cease and desist order directed against petitioners' plan to prevent so-called "style piracy" of designs in women's hats.

The Court, in affirming the order, made the following comment, among others:

We believe, therefore, that concerted action to eliminate style piracy extends beyond the permissible area of industrial self-regulation. The purpose of the milliners, and the necessary effect of their combination, is to maintain their price structure, and to eliminate a distasteful "evil" which the law nevertheless recognizes to be a socially desirable form of competition.

A petition for rehearing was denied. (See Fashion Originators Guild of America, Inc., and others, p. 85, for similar case.)

Monica M. Rock, Milwaukee.-Petition to review the Commission's cease and desist order was docketed in the Seventh Circuit (Chicago). Under the order, the petitioner, individually and as executrix of the estate of Dr. Arthur A. Rock, was directed to discontinue representations that her method was a scientific, efficacious, safe, and proper treatment for goiter, regardless of the variety, form, or stage of progression. At the end of the year the case awaited briefing and argument.

Moretrench Corporation, Rockaway, N. J.-This corporation, a manufacturer of well points, pumps, and equipment used in drawing water from wet soil during excavation work, petitioned the Second Circuit (New York) to set aside the Commission's order prohibiting the disparagement of competitive products through various means. At the year's close the case awaited briefing and argument.

National Silver Co., New York, filed a petition in the Second Circuit (New York) to set aside the Commission's order directing it to cease and desist from making misleading representations as to special

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