20. Same.-Publishing and circulating on the part of a corporation engaged in the purchase and sale to retailers of talking machines a catalogue containing a cut representing a manufacturing plant, together with the words "Home of the Masterphone, Adrian, Michigan," for the purpose and with the tendency and capacity to mislead said customers into believing that the corporation manufactured machines sold by it, the fact being that it did not manufacture and did not own, lease, occupy, or operate the plant represented, held, under the circumstances set forth, to constitute an unfair method of competition. (Boston Piano & Music Company, 3 F. T. C. 168.)

21. Falsely representing business as storage and warehouse.-Persons regularly engaged in the manufacture and sale by mail of phonographs resembling well-known makes adopted the trade names "Illinois Storage Company," "Chicago Storage Company," and "Chicago Storage Sales Company" for the purpose and with the effect of deceiving purchasers and the public generally as to the true nature of their business; and falsely advertised under one of their various names that—

(a) The phonographs advertised had been stored for safekeeping and were offered for sale to cover unpaid storage charges; (b) In the course of their storage and warehouse business they had come into possession of a single phonograph or single lots of phonographs never removed from the original crates in which shipped from the factory and now offered for sale for the purpose of covering unpaid storage;

the said method of advertising being for the purpose of disposing of new phonographs manufactured by them under the name of Tyrolia Talking Machine Co.; held that such false and misleading advertising, under circumstances set forth, constituted unfair methods of competition. (Waverly Brown, Mrs. Waverly Brown, and John F. Connelly, trading as Illinois Storage Co., Chicago Storage Co., Chicago Storage Sales Co., and Tyrolia Talking Machine Co., 3 F. T. C. 156.)

22. Same. A person regularly engaged in the sale by mail of phonographs resembling well-known makes adopted the trade name "Household Storage Company" for the purpose and with the effect of deceiving purchasers and the public generally as to the true nature of his business, and in the conduct of such business he falsely advertised that

(a) In the course of his storage and warehouse business he had come into possession of a single phonograph or single lots of phonographs never removed from the original crates in which shipped from the factory and of value greatly in excess of the price at which offered;

(b) Such offers were limited to a single phonograph or lot and would not again be made;

said phonographs being offered at less than one-third of the prices at
which listed in the advertising matter, the fact being that such pho-
nographs were manufactured to sell and were customarily sold at the
prices at which offered; held that such false and misleading advertising,
under circumstances set forth, constituted unfair methods of competi-
tion. (P. Tyrrell Ward, trading under the name and style of House-
hold Storage Co., 3 F. T. C. 163.)

23. Falsely representing self as wholesaler.—Falsely advertising by
a firm in the sale of groceries by mail, exclusively in combination
orders which were of comparatively small size and so priced that each
order yielded a satisfactory profit, and equaled or exceeded the sum
of such prices as retailers would usually obtain for the different items
composing the various assortments, that it was regularly engaged in
the sale of groceries at wholesale and that purchasers from it saved
from 30 to 50 per cent on their purchases, held, under the circum-
stances set forth, to constitute an unfair method of competition.
(Liberty Wholesale Grocers, 3 F. T. C. 103.)

XI. OLD, SECONDHAND, OR RECONSTRUCTED GOODS.

24. Automobile tires.- Failure of an individual or corporation
advertising and selling automobile tires to advertise and disclose to
purchasers that said tires were rebuilt and reconstructed from travel-
worn and discarded tires from which the name and brand or mark
of the original maker had been obliterated, and the advertising of
such tires in such a way as to convey the impression that the goods
were new and made of theretofore unused material, held to constitute,
under the circumstances set forth, unfair methods of competition.
(E. P. Janes, S. A. Paul, Ironclad Tire Co. (Inc.), Queen Rubber Co.
(Inc.), Overoad Tire Co. (Inc.), and Worth More Tire Co. (Inc.),
1 F. T. C. 380.)

25. Same.-A corporation and two individuals owning the major-
ity of the stock thereof advertised automobile tires, rebuilt or
reconstructed from partially worn and discarded tires from which the
name and brand or mark of the original maker had been obliterated
and new name or brand stamped thereon, according to the agency
through which such tires were offered for sale, with a tendency
thereby to mislead the purchasing public into believing that such
tires were new and manufactured in accordance with the processes
generally employed by the manufacturers of standard automobile
tires; held that such advertising, under the circumstances set forth,
constituted an unfair method of competition. (Wm. H. Batcheller,
Geo. Batcheller, and Akron Tire Co. (Inc.), 2 F. T. C. 119.)

26. Same.-A partnership engaged in the business of cementing
and sewing together used and secondhand tires advertised the same

extensively as "double-tread" tires, and sold them to the public throughout the United States without clearly indicating that said tires were made of secondhand and unserviceable tires, held that such false and misleading advertising constituted, under the circumstances set forth, an unfair method of competition. (Sophia Cohn, Samuel Chazanoff, and B. Counslbaum, copartners doing business under the firm name and style of The Goodwear Tire & Tube Co., 2 F. T. C. 216.) 27. Motion-picture films. An individual engaged in the business of selling, leasing, exploiting, and exhibiting motion-picture films and advertising matter, sold, exploited, and exhibited a picture called "Mothers of Liberty" to motion-picture exhibitors and the motionpicture-theater-going public, without apprising them of the fact that a portion of the same had been previously shown as "The Ordeal"; and distributed advertising and publicity matter in connection with the exploiting and exhibiting of such pictures, also without indicating that a part thereof had already been shown as "The Ordeal." The various acts as set out in the foregoing resulted in misleading the motion-picture-theater-going public in the belief that the said "Mothers of Liberty" was new and had never theretofore been shown or exhibited; held, that such relabeling and advertising, under the circumstances set forth, constituted unfair methods of competition. (The Royal Cinema Corp., The Mothers of Liberty Picture, and The Monopole Pictures Co., 2 F. T. C. 88.)

28. Typewriters.-Selling through advertisements, on the part of a corporation dealing in used typewriters, in which it was not distinctly, definitely, and clearly stated and set out that such machines were used, repaired, or rebuilt, held, under the circumstances, to constitute an unfair method of competition. (Typewriter Emporium, 1 F. T. C. 105.)

In the following cases involving substantially the same facts, the commission issued similar orders:

Dearborn Typewriter Co. (Inc.), 1 F. T. C. 109; Harry A. Smith, 1 F. T. C. 109; and W. H. Beardsley, doing business as Metro Typewriter Co., 1 F. T. C. 109.

ADVETISEMENTS SHOULD CLEARLY INDI-
CATE THAT MACHINES WERE USED OR RE-
BUILT.

"Where defendants engaged in making a competing machine, sold plaintiff's patented machine, designed to protect checks from adulteration, held that defendants should make it clear in adver

tisements that plaintiff's machines were used or rebuilt ones." (Syllabus.) (Todd Protectograph Co. v. Hedman Manufacturing Co. et al., 254 Fed. 829; affirmed in 265 Fed. 273.)

See also Passaic Print Works v. Ely & Walker Dry Goods Co. et al., 105, Fed. 163.

XII. ORDER OR RULING OF GOVERNMENT BODIES.

29. Federal Trade Commission. The publishing and circulating, on the part of a mail-order house dealing in lumber and building materials, an advertisement purporting to be a quotation from an

and printed in a public health bulletin of the
Health Service, so gotten up as reasonably to
lieve that such Public Health Service had swee
use of drip machines employed by his comp
fectors, the fact being that the individual quo
with said service and did not speak for it; and
that he had the word of every health authorit
drip cans were a fraud and their use had bee
hibited as insanitary in every United States pul
such false and misleading advertising and such
circumstances set forth, constitute unfair me
(Plunkett Chemical Co., 3 F. T. C. 53.)

32. United States Bureau of Standards.-F
the part of a corporation engaged in the ma
spark plugs, that its product had been certif
Standards of the United States Department of
the circumstances set forth, to constitute an un
tition. (The Silvex Co., 1 F. T. C. 301.)

XIII. ORIGIN OF GOODS.

33. Oil, turpentine, etc.-Selling and offering
general public, on the part of a manufacturer
oil, turpentine, and kindred products, a prod
tised as "Manchurian Linseed Oil Compound
ported, held to constitute an unfair method o
solidated Oil Co. et al., 1 F. T. C. 285.)

34. Seed (farm, garden and flower).-Advert
corporation dealing in farm and grass seed, w
leading the public and embarrassing competi

stock was grown exclusively for it in the Northwest, and its buyers were sent into these sections where the seed reached its highest perfection, and the entire output of the whole community bought; (2) that its standard grades of alfalfa were invariably Nebraska grown; (3) that it bought no alfalfa seed after it reached the terminal market but secured it direct from the grower, all of which claims were false and misleading, held, under the circumstances, to constitute an unfair method of competition. (American Mutual Seed Co., 3 F. T. C. 177.)

35. Same.-A corporation engaged in the sale of farm, garden, and flower seed, upon the mail-order plan, with a capacity to mislead the public, falsely represented in one of its catalogues that a large portion of its grass seed was grown by farmers in its immediate vicinity, the most fertile section of the State, and that it contracted for such seed at the lowest possible cost, with no freight, profit, or commission to be paid, and further falsely represented in its catalogues that it secured its grass seed direct from the producers in carload lots, and that it had the advantage of being located in the midst of an ideal grass region, held that such false and misleading advertising, under the circumstances set forth, constituted unfair methods of competition. (A. A. Berry Seed Co., 2 F. T. C. 427.)

36. Tea and coffee.—Advertising, on the part of a mail-order house, that its teas were purchased by a representative in Japan who supervised the picking and selected the choicest grades, thereby eliminating the middleman's profit, the fact being that a large part thereof was purchased from importers in the United States in the same manner as its competitors; and also advertising that its coffees were purchased from the best plantations in the world, thus securing the pick of the crop enabling it to sell the best coffee at very low prices, the fact being, however, that it purchased such coffees from importers located in the United States from whom its competitors also purchase their coffees, held, under the circumstances set forth, to constitute unfair methods of competition. (Sears, Roebuck & Co., 1 F. T. C. 163.)

UNFAIR COMPETITION ΤΟ ADVERTISE
GOODS AS PURCHASED ABROAD BY OWN
REPRESENTATIVE, WHEN LARGE PART
ARE PURCHASED FROM IMPORTER.

A finding by the Federal Trade Commission that a mail-order house doing an interstate business was guilty of unfair competition in advertising and selling

tea, coffee, etc., as purchased abroad by own representative, thus eliminating middleman's profits, the fact being a large part thereof was purchased from importers in the United States, held warranted. (Sears, Roebuck & Co. v. Federal Trade Commission, 258 Fed. 307.)

XIV. PASSING OFF.

37. Falsely advertising appropriated values.-A publisher of maps copied and approprated the context, subject matter, statements, impressions, language, punctuation, typographical arrangement, and