60 ANNUAL REPORT OF THE FEDERAL TRADE COMMISSION, 1947 CASES DECIDED BY THE COURTS Acme Asbestos Covering & Flooring Co., and others, Chicago.-The Sixth Circuit (Cincinnati) affirmed the Commission order to cease and desist except as to one respondent in a case involving a price-fixing combination and restraint of trade in the sale of pipe insulation, through use of license agreements and zone-delivered prices. American Drug Corp., St. Louis, Mo.-The Eighth Circuit_(St. Louis) remanded this case to the Commission on motion of the Commission. The Commission then reinstated its order to cease and desist which had been vacated previously. The order is directed against misrepresentation of a medicinal preparation. A. P. W. Paper Co., Albany, N. Y.-The Second Circuit (New York) remanded this case and directed the Commission to consider the desirability of modifying the order to cease and desist to accord with the mandate of the Supreme Court. The Commission modified the order in accordance with the court's direction. Elizabeth Arden, Inc., and others, New York.-The Supreme Court of the United States denied a petition for writ of certiorari to review a decision of the Second Circuit (New York) affirming the Commission's order to cease and desist from violation of section 2 (e) of the Robinson-Patman Act by discrimination in the furnishing of cosmetic demonstrator services to retailers. Nelson C. Brewer, and others, Chicago.-The Sixth Circuit (Cincinnati) affirmed the Commission's order prohibiting the sale of lottery devices in interstate commerce. Š. Buchsbaum & Co., Chicago-The Seventh Circuit (Chicago) set aside the Commission's order forbidding use of the term "ElastiGlass" to designate or describe merchandise made of vinylite or any other similar synthetic resinous compound. The Cement Institute, and others, Chicago.-The Seventh Circuit (Chicago) set aside the Commission's order to cease and desist issued under the Federal Trade Commission Act and the Robinson-Patman Act and involving alleged Nation-wide restraint of competition in the price of Portland cement through the agreed use of a multiple basingpoint delivered-price system. The Supreme Court granted a writ of certiorari to review the circuit court decision. Eastman Kodak Co., Rochester, N. Y.-The Second Circuit (New York) affirmed the Commission's order forbidding suppression of competition by use of a resale-price-maintenance policy in connection with the sale of photographic film. The Supreme Court denied a writ of certiorari. (Subsequently, the Commission modified its order so as to permit Eastman to use such a sales policy in selling Kodachrome film because the product is now "sold in free and open competition" with Ansco color film manufactured by a competitor of Eastman.) General Seafoods Corp., and others, Boston.-The First Circuit (Boston) remanded this case to the Commission in accordance with stipulation of counsel to vacate the order and dismiss the complaint which had alleged misrepresentation in the sale of seafood. Harvest House, New York.-The Second Circuit (New York) dismissed the petition to review in accordance with the stipulation of counsel. The Commission's order prohibits misrepresentation of a book dealing with methods for developing the body. CASES IN FEDERAL COURTS 61 Koret, Inc., New York.-The Second Circuit (New York) dismissed the petition to review in accordance with stipulation of counsel. The modified order in this case is directed against certain representations concerning the composition of women's handbags. Langendorf United Bakeries, San Francisco.-The Ninth Circuit (San Francisco) dismissed the petition to review in accordance with stipulation of counsel. The order was directed against misrepresentation of bread. Morton Salt Co., Chicago.-The Seventh Circuit (Chicago) set aside the Commission's order to cease and desist involving alleged violation of section 2(a) of the Clayton Act by discriminating in prices of salt. National Crepe Paper Association of America, and others, Philadelphia.-The Seventh Circuit (Chicago) affirmed the Commission's order forbidding price fixing in the sale of paper through use of a system of zone-delivered prices. The Supreme Court denied a petition for writ of certiorari. The Parker Pen Co., Janesville, Wis.-The Seventh Circuit (Chicaga) modified and affirmed the Commission's order forbidding misleading advertising of guaranties in connection with the sale of fountain pens. Vacu-Matic Carburetor Co., Wauwatosa, Wis.-The Seventh Circuit (Chicago) affirmed the Commission's order prohibiting misrepresentation concerning the economy in gasoline consumption to be derived from use of a mechanical device for attachment to automobile engines. The Supreme Court denied a petition for writ of certiorari. CASES PENDING IN THE COURTS Allied Paper Mills, Kalamazoo, Mich., and others.-Seventh Circuit (Chicago), combination in restraint of trade in book print and coated paper. Amasia Importing Corp., New York.-Second Circuit (New York), misbranding and mislabeling of women's girdles. American Association of Law Book Publishers, Rochester, N. Y., and others.-Second Circuit (New York), price-fixing combination in law books and legal publications. Canute Co., Milwaukee.-Seventh Circuit (Chicago), false and misleading advertising of Canute Water, a hair dye. The Cement Institute, and others, Chicago.-Supreme Court of the United States, alleged Nation-wide combination to restrain competition in the price of Portland cement and to discriminate in price. through the agreed use of a multiple basing-point delivered-price system. Consumers Home Equipment Co., and others, Detroit.-Sixth Circuit (Cincinnati), false and misleading representations as to silverware, mattresses and other household goods. Ox'O-Gas Co., New York.-Second Circuit (New York), misrepresentation of solution designated "Ox'O," advertised and sold as capable of increasing the efficiency of automobile engines and mileage. Morton Salt Co., Chicago.-Seventh Circuit (Chicago), alleged price discrimination in the sale of salt, in violation of section 2 (a) of the Robinson-Patman Act. The case is pending on petition for 62 ANNUAL REPORT OF THE FEDERAL TRADE COMMISSION, 1947 Edward P. Paul & Co., New York.-United States Court of Appeals for the District of Columbia, false and misleading advertising of lamps, dishes and other articles. Rigid Steel Conduit Association, and others, New York.-Seventh Circuit (Chicago), price-fixing combination through use of basingpoint system. Scotch Woolen Mills, Chicago.-Seventh Circuit (Chicago), misleading use of the words "Scotch" and "Mills" in trade name. Standard Oil Company, an Indiana corporation, Chicago.-Seventh Circuit (Chicago), price discrimination in the sale of gasoline in violation of section 2 (a) of the Robinson-Patman Act. United States Steel Corp., American Bridge Co., Carnegie-Illinois, Steel Corp., American Steel & Wire Co. of New Jersey, and Tennessee Coal, Iron & Railroad Co.-Third Circuit (Philadelphia) and Fifth Circuit (New Orleans), use of "Pittsburgh-plus" basing point system of fixing prices for rolled-steel products in alleged violation of the Clayton and Federal Trade Commisison Acts. CIVIL PENALTY JUDGMENTS American Steel & Wire Co. of New Jersey, Worcester, Mass.; Anaconda Wire & Cable Co., Phelps-Dodge Copper Products Corp., and General Cable Corp., all of New York; General Electric Co., Schenectady, N. Y.; and The Okonite Co., Passaic, N. J.-Consent judgments totaling $38,000 were entered in the United States District Court for the Southern District of New York against these six manufacturers of electric wire and cable for alleged violation of a Federal Trade Commission cease and desist order directed against a price-fixing conspiracy. General Cable Corp. paid a judgment of $500 and the other five corporations paid judgments of $7,500 each. The suit for recovery of civil penalties was filed at the direction of the Attorney General, acting on the request of the Commission. TABLES SUMMARIZING LEGAL WORK OF THE COMMISSION AND COURT PROCEEDINGS, 1915-47 1 This classification includes such reasons as death, business or practices discontinued, private controversy, controlling court decisions, etc. Closed without further proceed ings 1 45 Total for disposition--- 21.267 To complaints 4,993 Settled by stipulation to cease and 6, 674 Settled by acceptance of TPC rules_ 97 172 3,863 0 Closed without further proceedings 1 4,328 Total disposition--- 20, 127 Pending June 30, 1947--‒‒‒‒‒‒‒‒‒‒ 1, 140 This classification includes such reasons as death, business or practices discontinued, private controversy, controlling court decisions, etc. TABLE 3.-Court proceedings-orders to cease and desist-petitions for review to circuit courts of appeals Total disposition--- 5. 195 Pending June 30, 1947- 392 This table lists a cumulative total of 103 decisions in favor of respondents in Commission cases before the United States circuit courts of appeals. However, the Grand Rapids furniture (veneer) group (with 25 different docket numbers) was in reality 1 case, with 25 different subdivisions. It was tried, briefed, and argued as 1 case and was so decided by the court of appeals. The same held true of the curb-pump group (with 12 different subdivisions), the Royal Milling Co. group (with 6 different subdivisions), and the White Pine cases (12 subdivisions). In reality, therefore, these 55 docket numbers mean but 4 cases; and, if cases and not docket numbers are counted, the total decisions in favor of the respondents would be 52. NOTE.-During the fiscal years 1919-47, inclusive, 60 petitions by the Commission for enforcement of orders to cease and desist were passed upon by courts. Of these proceedings 56 were decided in favor of the Commission; 4 in favor of adversaries. Petitions for enforcement of orders issued under the Federal Trade Commission Act were made unnecessary by amendment of the Federal Trade Commission Act (Mar. 21, 1938) making orders finally effective unless review is sought by respondents within 60 days after service of an order. TABLE 4.-Court proceedings—orders to cease and desist-petitions for review to the Supreme Court of the United States Pending June 30, 1947. |