ered to the purchasers thereof at their respective points of location in a State or States of the United States other than the State of New York. Respondent causes other of its bay rum so sold to be shipped and transported into foreign countries and delivered to the purchasers thereof at their respective points of location.

PAR. 3. Respondent in the course and conduct of its business places on the bottles in which its bay rum is sold to the public, labels conspicuously bearing the words printed in bold type "H. Michelsen, St. Thomas, West Indies ", followed in smaller type by the legend "The H. Michelsen Company, New York, sole agents for the North American Continent "; places illustrations of bottles bearing such labels upon its letterheads, invoices, and order blanks; offers for sale and sells some of its bay rum in bottles which have blown in the glass composing said bottles the words "St. Thomas"; and ships its bottled bay rum in packing boxes bearing the words "H. Michelsen, St. Thomas, W.I.

PAR. 4. Respondent's bay rum is not made in St. Thomas, West Indies, but is made by respondent in its plant in New York City. Respondent between 1894 and 1917 was the sole bay rum selling agent for the North American continent for H. Michelsen, who for over 45 years preceding 1918 made bay rum at St. Thomas, West Indies, and sold it through the respondent among the several States in bottles bearing labels of which the labels now used by the respondent are facsimiles. In 1918 the St. Thomas plant was acquired by respondent or its president and the manufacturing business was transferred to New York City. Respondent makes its bay rum from oil of bay brought from Porto Rico and St. Johns, alcohol purchased in the State of New Jersey, which alcohol has been distilled from molasses, pure water, and the denaturant required by the prohibition law.

PAR. 5. The bottles containing respondent's bay rum are sold by retail dealers to the consuming public and when so sold have affixed to them the labels affixed by the respondent and heretofore referred to. Retail dealers and purchasing consumers understand the words "St. Thomas" when applied to bay rum to signify bay rum made at St. Thomas, West Indies. Retail dealers and consumers will pay a higher price for bay rum so labeled than they will for bay rum manufactured in the United States. Other brands of domestic bay rum are manufactured in this country and are not represented as having been made at St. Thomas. Such other domestic brands sell for a lower price than that at which the respondent's bay rum is retailed to the consuming public.

PAR. 6. There are other corporations and individuals and partnerships engaged in the manufacture and sale of bay rum to wholesale and retail dealers located in the several States of the United States and in foreign countries and who cause the same when so sold to be shipped and transported from the State and country of manufacture to said wholesale dealers and retail dealers, purchasers thereof at their respective points of location. Some of these manufacturers make and mix their bay rum at St. Thomas in the Virgin Islands where bay rum has been made and sold since at least 1872. Such manufacturers, name, designate, brand, and label their products so as to indicate that it is made at St. Thomas and have done so for many years. Others of these manufacturers make their bay rum in the United States but in the sale thereof as aforesaid in no wise represent that it is made at St. Thomas in the Virgin Islands.

PAR. 7. Respondent's largest customer, the Panama Railroad Company, is acquainted with the fact that the bay rum sold to it by respondent is manufactured in New York City.

CONCLUSION

The practices of said respondent, under the conditions and circumstances described in the foregoing findings are unfair methods of competition in interstate commerce. The use by respondent of the labels, bottles, brands, tags, letterheads, invoices, and order blanks as hereinbefore found by the Commission has the capacity and tendency to and does in fact injure competitors who do not use such labels, bottles, brands, tags, letterheads, invoices, and order blanks because it diverts to respondent from its competitors sales of bay rum to persons who believe that the bay rum manufactured by respondent in New York and offered for sale and sold in interstate commerce so labeled and marked is made in St. Thomas, Virgin Islands, and who purchase respondent's bay rum in and because of such belief. The practices of respondent under the conditions and circumstances described in the foregoing findings constitute a violation of an act of Congress approved September 26, 1914, entitled "An act to create a Federal Trade Commission, to define its powers and duties, and for other purposes."

ORDER TO CEASE AND DESIST

This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission, the answers of the respondent, and the testimony taken and brief filed herein, and the

Commission having made its findings as to the facts with its conclusion that the respondent has violated the provisions of an act of Congress approved September 26, 1914, entitled "An act to create a Federal Trade Commission, to define its powers and duties, and for other purposes ",

It is now ordered, That the respondent, H. Michelsen Company, Inc., its officers, agents, representatives, and employees, or any of them, in connection with the offering for sale, or sale of bay rum in commerce among the several States of the United States or in the District of Columbia, cease and desist from:

(1) Using labels on its bottles or other containers containing bay rum bearing the unqualified phrase "H. Michelsen, St. Thomas, West Indies ", or in any other way representing or implying that the said bay rum offered for sale and sold by it is manufactured in the West Indies when such is not the case;

(2) Using letterheads, invoices, order blanks or other literature or advertising matter containing pictorial illustrations of bottles bearing such labels;

(3) Using bottles which contain the words "St. Thomas " blown therein in which to offer for sale or sell its bay rum when such bay rum so offered for sale and sold by it is not manufactured in St. Thomas, Virgin Islands;

(4) Using the phrase "H. Michelsen, St. Thomas, W. I." as a brand or tag on packing boxes or other containers containing bay rum offered for sale or sold by it, or in any other way representing or implying that the said bay rum offered for sale and sold by it is manufactured in the West Indies when such is not the case.

It is further ordered, That respondent shall within 60 days from the date of service upon them of the order herein, file with the Commission a report in writing setting forth in detail the manner and form in which this order has been complied with and conformed to.

Complaint

IN THE MATTER OF

SAMUEL BRIER, DOING BUSINESS AS SAMUEL
BRIER & CO.

COMPLAINT AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914

Docket 2097. Complaint, Mar. 29, 1933—Order, June 8, 1933

Consent order requiring respondent individual, in connection with sale or offer in interstate commerce of luggage, to cease and desist 'from labeling, stamping, or otherwise advertising luggage manufactured in whole or in part from split seal or seal splits as seal' or 'genuine seal' or in any manner indicating that the material used in the manufacture is other than seal splits or split seal."

Mr. Alfred M. Craven for the Commission.

Bender & Rubin, of Philadelphia, Pa., for respondent.

COMPLAINT

Acting in the public interest pursuant to the provisions of an act of Congress approved September 26, 1914, entitled "An act to create a Federal Trade Commission, to define its powers and duties, and for other purposes ", the Federal Trade Commission charges that Samuel Brier, hereinafter referred to as respondent, has been and is using unfair methods of competition in interstate commerce in violation of the provisions of section 5 of said act and states its charges in that respect as follows:

PARAGRAPH 1. The respondent is now and has been for several years last past engaged at the city of Philadelphia, Pa., under the name of Samuel Brier & Co., in the business of manufacturing and selling in interstate commerce to jobbers and retail dealers throughout the United States handbags, suitcases, and other luggage. He causes said merchandise when sold to be shipped in interstate commerce from his said place of business at Philadelphia into and through other States of the United States to the purchasers thereof at their respective points of location. In the course and conduct of his business respondent is and has been in competition with many other persons, firms, and corporations located in the United States engaged in the manufacture and sale in interstate commerce of handbags, suitcases, and other luggage and in the shipment of same from their respective points of location to purchasers throughout the various States of the United States.

PAR. 2. Many of respondent's competitors mentioned in paragraph 1 hereof make and sell luggage manufactured from leather made

from the outside or topside of sealskin after same has been separated or split from the flesh side of the skin. Such leather is generally described by makers of luggage and generally known to manufacturers, dealers, and the purchasing public as "seal" or "genuine seal." Until recently the flesh side of the sealskin has been by manufacturers of leather discarded as waste material. Such material is now used to some extent for the making of leather, which leather is ordinarily described in the trade as "split seal." It is very much inferior in quality, durability, and price to "seal" or "genuine seal" as described in this paragraph.

PAR. 3. Respondent among other merchandise manufactures and sells in the course of business described in paragraph 1 hereof luggage made from cardboard and wood over which is imposed as a covering the material mentioned in paragraph 2 hereof as split seal, which material is treated, embossed, and finished by said respondent so as to imitate the leather known as seal or genuine seal as described in paragraph 2 hereof. Respondent by means of stamps and tags affixed to said luggage made of split seal describes said luggage as being made of "genuine seal." Said description made on or attached to said luggage reaches the public through the retail merchants and is used by said merchants in advertising said spurious luggage and also in selling said spurious luggage to the public.

PAR. 4. The said description and representation made by respondent as to his merchandise is false and fraudulent in that the material described is not genuine seal or seal in any sense as the terms seal and genuine seal are commonly understood by the purchasing public. The use of said description and representation has the capacity and tendency to deceive the purchasing public and to induce purchasers to buy the luggage thus described in and on account of a belief that the said luggage is made of genuine sealskin. The said false branding and description also have the capacity and tendency unfairly to divert and do divert trade from respondent's competitors to the respondent.

PAR. 5. The above alleged acts and things done by respondent are all to the prejudice of the public and of respondent's competitors and constitute unfair methods of competition in commerce within the intent and meaning of section 5 of an act of Congress entitled "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes ", approved September 26, 1914.

ORDER TO CEASE AND DESIST

Pursuant to the provisions of an act of Congress approved September 26, 1914, entitled "An act to create a Federal Trade Com