CASES IN FEDERAL COURTS 45 Standard Oil Co. (an Indiana corporation), Chicago.-The Seventh Circuit (Chicago), after slight modification, affirmed the Commission's order against price discrimination in the sale of gasoline in violation of the Clayton Antitrust Act. Tag Manufacturers Institute, New York, N. Y., and others.-The First Circuit (Boston) set aside the Commission's order, holding the evidence to be insufficient to sustain the charge of conspiracy to fix prices and otherwise restrain competition in the sale of tag products. United States Steel Corp., New York, N. Y., and others.-Petitions had been filed in both the Third Circuit (Philadelphia) and the Fifth Circuit (New Orleans) for review of the Commission's order forbidding use of the "Pittsburgh-plus" basing-point system of determining prices for rolled-steel products, in violation of the Clayton Act and the Federal Trade Commission Act. The Third Circuit affirmed the order, and thereafter the Fifth Circuit, pursuant to joint stipulation of the parties, dismissed the petition pending before it. CASES PENDING IN THE COURTS Alberty Food Products, Hollywood, Calif., and others.-District of Columbia Circuit, misrepresentation of the therapeutic properties of food and drug products. Americana Corp., Chicago.-Second Circuit (New York), deceptive practices in the sale of encyclopedias. Artra Cosmetics, Inc., Bloomfield, N. J.-Third Circuit (Philadelphia), false and misleading advertising of a depilatory preparation. Crown Manufacturers Association of America, Washington, D. C., and others.-Fourth Circuit (Richmond), combination and conspiracy tending to restrain competition in the sale of crown bottle caps. Jack Galter, Chicago, and others (Elgin Razor Corp.).-Seventh Circuit (Chicago), false and misleading advertising in the sale of razors, clocks, and other merchandise. Gold-Tone Studios, Inc., Rochester, N. Y., and others.-Second Circuit (New York), misrepresentation in the sale of photographs. Minneapolis-Honeywell Regulator Co., Minneapolis.-Seventh Circuit (Chicago), sales practices tending to restrain trade and to create a monopoly in the sale of automatic temperature controls, in violation of the Federal Trade Commission Act and sections 2 (a) and 3 of the Clayton Antitrust Act. Dr. F. A. Newcomb, Lawrence, Kans.-Tenth Circuit (Denver), false and misleading advertising in the sale of a medical device. Standard Oil Co. (an Indiana corporation), Chicago.-Supreme Court, certiorari granted to review. decision of the Seventh Circuit (Chicago), modifying and affirming as modified the Commission's order against price discrimination in the sale of gasoline, in violation of the Clayton Act. OTHER COURT CASES INVOLVING THE COMMISSION General Foods Corp., New York, N. Y.-The Seventh Circuit (Chicago), on motion of the Commission, dismissed for lack of jurisdiction a petition to review an order requiring a special report. U.S. v. Morton Salt Co.; U. S. v. International Salt Co.-Complaints were dismissed in the District Court (Chicago), and prayers for injunctions and forfeitures for failure to file special reports ordered by the Commission were denied. Judgments were affirmed by a divided court on review in the Seventh Circuit (Chicago).* U. S. v. Al B. Wolf and others.-Judgment for $2,000 was entered in United States District Court (Chicago) in a suit for civil penalties for violation of a Commission order to cease and desist. U. S. v. Worthmore Sales Promotion Service, Inc.-Judgment for $10,000 was entered in United States District Court (Chicago) in a suit for civil penalties for violation of a Commission order to cease and desist. U. S. v. Canadian Ace Brewing Co.-Judgment for $4,900 was entered in United States District Court (Chicago) in a suit for civil penalties for violation of a Commission order to cease and desist. The Supreme Court of the United States granted certiorari in these cases October 24, 1949. CASES IN FEDERAL COURTS 47 TABLES SUMMARIZING LEGAL WORK OF THE COMMISSION AND COURT PROCEEDINGS, 1948-49 1 These are cases in which the Commission issues a formal complaint charging violation of one or more of the statutes it administers. TABLE II.-Court proceedings, fiscal years 1948 and 1949 PART III. SETTLEMENT OF CASES BY STIPULATION CORRECTIVE ACTION THROUGH INFORMAL CONFERENCES Certain types of cases 1 involving unfair methods of competition or unfair or deceptive practices may be settled by the Commission without resort to the formal complaint and trial method. Settlement of these cases is effected in the public interest on the basis of a stipulation of facts and an agreement to cease and desist from practices deemed violative of law. Cases considered appropriate for such treatment are referred by the Commission to its Bureau of Stipulations. This bureau takes no part in the investigation or prosecution of any matter. Its procedure is to notify the person concerned that certain of his business practices have been challenged as illegal. The notice includes a statement of the specific practices which preliminary investigation indicates should be discontinued. The businessman may reply by correspondence or confer, either in person or through an authorized representative, with the Director of the Bureau of Stipulations or with an attorneyconferee. These conferences are usually conducted by an attorneyconferee. Other participants, besides the businessman and his representatives, may include one or more representatives of the Bureau of Legal Investigation and any other bureau interested in the matter. Opportunity is always afforded for an informal hearing, 85 having been held during the fiscal year. Through frank, informal, and thorough discussion of the facts and issues involved, amicable settlements are usually reached whereby unfair and deceptive practices are eliminated in the public interest on a cooperative basis. As to charges deemed to have been substantially proved, a stipulation of facts is drafted, signed, and presented to the Commission for its consideration in disposing of the case. this informal hearing may result in a recommendation for closing the case, either in whole or in part, or for other action in accordance with law and the public interest. Or Should it appear in the course of negotiations for a stipulation that the practices charged are generally in use in the industry involved, The policy of the Commission with respect to disposition of cases by stipulation is set forth in its statement of policy on p. 114. CORRECTIVE ACTION THROUGH INFORMAL CONFERENCES 49 the bureau recommends to the Commission the institution of investigations on an industry-wide basis. The objective is to provide uniform and concurrent voluntary corrective action applicable to all members of a given industry so that all may be placed on an equal competitive basis. Another function of the Bureau of Stipulations is to obtain reports showing in detail the manner and form of compliance with stipulations. During the fiscal year, upon the recommendation of the bureau, the Commission disposed of 212 cases as follows: Accepted executed stipulations including 5 amendment stipulations. Referred for further investigation. Directed issuance of complaints_ Placed on suspense-- Total_ 139 41 11 16 5 212 A recapitulation of the bureau's work during the fiscal year follows: |