Lawrence S. Mayers and Chauncey M. Mayers

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COliiPLAINT IN THE l\IATTER OF Tile ALLEGED VIOLATION OF SECTION IS OF AN ACT OF CONGRESS APPROVED SEPTEMBER 267 1914, Docket 876-october 8, 1023.

SYLLAUUS.

WlJCre the City of Geneva, Switzerland, had long enjoyed the reputation of being the place in which were assembled in the largest numbers the world's finest watchmakers, and had become well known to the watch and jewelry trade and to a substantial part of the purchasing public as the place responsible for Switzerland's reputation for watches of excellence, so that the name " Geneva " as applied to a watch had become of particular significance and value; and thereafter an American firm engaged in the sale of Imported Swiss watches or watch movements, most of which were not manufactured in Geneva, adopted the trade name " Geneva Watch Co." and the trade mark " Genva" and branded and labeled such watches and watch movements and the containers thereof with said name and mark, and so advertised and sold the same; with the Intent and etrect or misleading and deceiving the traue and consuming public Into believing said watches to have been made in Geneva, Switzerland, and to the prejudice of competitors:

Ilcld, 'that such misbranding and mislabellng, and such false and misleading advertising, under the circumstances set forth, constituted unfair methods of competition.

COMPLAINT.

The Federal Trade Commission having reason to believe from a preliminary investigation made by it, that Lawrence S. Mayers and Chauncey 1\I. Mayers, partners doing business under the firm name and style of Geneva Watch Company, hereinafter referred to as respondents, have been and now are using unfair methods of competition in interstate commerce in violation of the provisions 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," and it appearing to the Commission that a proceeding by it in respect thereof would be of interest to the public, issues this complaint, stating its charges in that respect on information and belief, as follows:

GENEVA WATCH CO. 453 ~52 Oomplaint. PARAGRAPH 1. Respondents are partners who have been for about ten years last past and are now engaged in a wholesale general jewelry business, with their principal.place of business at No. 46 Cortlandt Street in the City and State of New York, under the trade name and style of L. & C. Mayers Company. In the year 1919, respondents, as an addition to their said business, commenced the importation into the United States of watch movements made at various points in Switzerland, which watch movements were fitted into watch cases of American manufacture by respondents and the watches thus assembled were sold by respondents at wholesale to various retail jewelry dealers in various cities and towns in the several States of the United States. Respondents delivered the watches thus sold by causing same to be transported from their said place of business in the City and State of New York, to the purchasers at their several said points of residence. Respondents have continuously conducted said wholesale watch business since said time and still so conduct the same and in the course and conduct thereof respondents continuously have been and are now in competition with other persons, partnerships and corporations engaged in wholesaling in interstate commerce watches of foreign and domestic manufacture. Upon commencing said watch business, or shortly thereafter, respondents chose the trade name" Geneva 'Vatch Company," under which to carry on the said watch business separately and apart from their aforesaid general jewelry business and have ever since the adoption of said name conducted said watch business under the firm name and style "Geneva \Vatch Company." Respondents, upon the adoption of said name for said watch business, did not discontinue the aforesaid trade name of L. & C. Mayers Company, under which their said general jewelry business had theretofore been conducted, but continued to conduct said general jewelry business thereunder. Respondents have always purchased and still purchase under the trade name and style of L. & C. Mayers Company, the watch movements which they use in their said watch business, but market the watches assembled by them under the trade name and style of "Geneva Watch Company" as hereinbefore set out. Respondents have never manufactured and do not now manufacture any watches or watch movements whatsoever except in so far as the fitting by them of said movements into cases, as hereinbefore set out, may be considered manufacture, and respondents never have owned or operated and do not now own or operate any watch or watchmovement factory in said City of Geneva or elsewhere. PAR. 2. The City of Geneva in Switzerland has for many years been known to the public throughout the United States as the place 454 FEDERAL TRADE COMMISSION DECISIONS. Complaint. 6F.T.C.

of origin of watch movements and watches of a very high degree of excellence and the known reputation of Swiss made watch move· ments and watches is in a large measure attributable to the ex· cellence of the Geneva product from which city come the finest watches and watch movements made in Switzerland. Two general classes of watches and watch movements are made in said City of Geneva; one of these classes consists of very fine movements and is limited to the product of two or three manufacturers in said city, who market their movements and watches largely through selected representatives and do not cater to the general wholesale trade in the usual manner. The good reputation which all Geneva watches enjoy in the United States springs largely from the excellence of these products. The other class of movements above referred to, although of good quality are substantially inferior in quality to the watch movements mentioned as the first class and are known to the trade as "commercial grade" movements. These "commercial grade" movements are sold by the manufacturers to jobbers and wholesalers indifferently and ultimately form the great bulk of "Geneva " watches offered by the retailers to the consuming public. Said "commercial grade" movements, when imported into th~ United States, habitually bear, stamped upon the dial and directly under the center pinion, the word "Geneva" and upon the bottom of the dial under the figure "6 '' the word "Swiss," and said move· ments, either fitted into cases in Switzerland and imported into the United States, or imported separately and afterwards fitted into cases in the United States, are wholesaled throughout the United States by many of respondent's competitors. PAn. 3. Respondents well knowing the facts set out in paragrapl1 2 hereof, and with the purpose of misleading and deceiving the public into the belief that the watch movements imported by them into the United States from places in Switzerland other than the City of Geneva, were and are movements made in said city and of a quality fairly comparable therewith, did, shortly after com· mencing their aforesaid watch business, the following acts and things:

(a) Adopted the trade name "Geneva Watch Company"; and proceeded to conduct said watch business under said name; (b) Procured to be stamped directly under the center pinion on the dial of the watches purchased by them the word "Gen· eva" and under the figure " 6 " the word " Swiss "; (c) Procured the registration in the United States of the trade mark "Genva" to be used as a mark upon said watches, and after applying for said trade mark, caused the same to be GENEVA WATCH CO. 455 452 Findings. stamped upon the dial of the watches purchased by them in lieu of the word " Geneva ";

(d) Caused to be inserted in journals of general circulation in the jewelry and watch trade throughout the United States advertisements depicting said watches and containing statements referring to said "Geneva" and "Genva" watches, and caused to be conspicuously inserted in said advertisements their aforesaid trade name "Genva 'Vatch Company," together with statements to the effect that respondents manufactured the watches thus advertised and offered the same direct to the trade at the lowest manufacturer's prices.

Respondents have, since the adoption of such practices, continuously used and still use the same.

PAR. 4. The above alleged acts and things done by respondents had and have the capacity and tendency to mislead and deceive the trade and the consuming public into the mistaken belief that respondents are engaged in the manufacture of watches and watch movements in the City of Geneva, Switzerland; that the watches sold by respondents and advertised by them, as hereinbefore set out, are manufactured in said city and are sold direct to the trade at manufacturers' prices, thus eliminating the middleman's profit, and therefore to induce the trade, and through it the .consuming public, ·to purchase said watches in preference to competing watches whose movements are, like those in respondents' watches, made at points in Switzerland other than the City of Geneva but which are not similarly marked with the word "Geneva" or "Genva," or otherwise represented to be made in said city, and in many instances, to purchase respondents' watches in preference to "commercial grade" watches actually made in the City of Geneva. PAn. 5. That the above alleged acts and things done by respondents 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. REPORT, FINDINGS AS TO THE FACTS, AND ORDER. Pursuant to the provisions of an Act of Congress, approved September 26, 1914, the Federal Trade Commission issued and served a complaint upon the respondents, Lawrence S. Mayers and Chauncey M. Jtf'ayers, partners doing business under the firm name and style of Geneva 'Vatch Company, charging them with the use of unfair 456 FEDERAL TRADE COMMISSION DECISIONS. Findings. 6F.T.C.

methods of competition in commerce, in violation of the provisions of said act. . Respondents having entered their separate appearances and filed their separate answers herein, hearings were had before Mr. Edward M. Averill, an examiner of the Federal Trade Commission, theretofore duly appointed, at which hearings evidence was introduced in support of the allegations of said complaint and on behalf of the respondents. This proceeding coming on for final hearing and the Commission having heard argument of counsel, and having duly considered the record, and being now fully advised in the premises, makes this its findings as to the facts and conclusion. FINDINGS AS TO THE FACTS.

PARAGRAPH 1. Respondents, Lawrence S. and Chauncey M. Mayers, in 1912 started in a wholesale jewelry business as co-partners under the firm name 'and style of L. & C. Mayers Company. This business has been continued up to the present time and is still conducted under the same n·ame. The present office and place of business is at 46 Cortlandt Street, New York City. Up to July, 1919, in the course of such business, under such trade name, respondents handled among other things, watches, of which either the entire watches or the movements had been made in Switzerland. These watches were obtained by respondents from importers thereof. In July, 1919, respondents, Lawrence S. Mayers and Chauncey M. :Mayers, commenced to import watch movements manufactured in Switzerland. They purchased such movements in Switzerland under the trade name of L. & C. Mayers Co., but adopted a new trade name, Geneva "'Watch Company, under which to conduct the business of placing such movements in cases in this country and selling such completed watches throughout the United States. At the same time, respondents adopted as 'a trade mark name for such watches the word" Genva." They were subsequently granted registration of " Genva" as a trade mark by the United States Patent Office on l\fay 24, 1921, for use on ladies' and gentlemen's watches, and clocks, without restriction 'as to place of origin of such watches and clocks or as to whether or not such watches and clocks be of domestic or foreign manufacture. Respondents have ever since continued to sell watches as Geneva 1Vatch Company and under that trade mark name " Genva," at wholesale to various retail jewelry dealers in the various cities and towns in the several states of the United States, and in the course and conduct of such business, have caused such watches to be transported from their said pl·ace of business in the City and State of New York GENEVA WATCH CO. 457 452 Findings. to the purchasers at their several places of business in the various States of the United States, thereby being engaged in interstate commerce.

PAR. 2. From the time respondents first started in business as above described, under the name of Geneva ·watch Company, in July, 1919, up until the commencement of the investigation by the Commission in October, 1921, less than 50% of the watch movements so imported by respondents, were made in Geneva, Switzerland, the others being made at other points in Switzerland, principally at the City of Bienne. These movements, irrespecti Ye of whether they were made in the City of Geneva, or other places in Switzerland, were placed in cases in this country by respondents and sold by them under the trade name Geneva '\Vatch Company and trade mark namo "Genva," to retail jewelers throughout the United States as above described.

PAR. 3. A substantial number of such watches so sold by respond· ents under the trade name Geneva 'Vatch Company and trade mark name" Genva" were also marked on the dial or works or both with the word " Genva," and of the watches so marked, at least 50% of tho movements had been made at points in Switzerland, other than the City of Geneva. This marking of the dials and works was dis· continued by respondents early in 1922.

PAR. 4. Respondents have also sold some watches, under the trade name Geneva watch Company and trade mark name" Genva," the movements of which watches were purchased by them in this country from Swiss manufacturers' agents and have gradually ceased their direct purchases of movements in Switzerland, until they have finally come, sometime during 1922, to handle almost exclu· sively movements purchased from Swiss manufacturers' agents in New York. Such movements have been placed in cases and sold by respondents under the trade name Geneva '\Vatch Company and the trade mark "Genva," although a substantial portion thereof are not manufactured in the City of Geneva, Switzerland, but are manu· factured at other points in Switzerland.

PAn. 5. All the watches so sold by respondents as above described under the trade name Geneva '\Vatch Company and trade mark. name "Genva" have been delivered by respondents to their customers in individual velvet boxes with the word " Genva" printed in large type upon ribbons sewn across the lower edges of inside of the hinged covers of such boxes. Between the inside covers of such boxes and such ribbons, respondents place cards upon which the following matter is printed:

458 FEDERAL TRADE COMMISSION DECISIONS. Findings. 6F.T.C.

" Guarantee This Watch is guaranteed to give satisfaction It was accurately adjusted and regulated before leaving our factory.

· Geneva Watch Co., Manufacturers 46 Cortlandt Street. New York." PAR. 6. Ever since the commencement of their business as Geneva Watch Company, respondents have caused to be inserted in periodicals of general circulation in the jewelry and watch trade through· out the United States, advertisements offering watches for sale and featuring both " Genva" as the general trade mark name of such watches and the trade name Geneva "\Vatch Company as the concern so offering such watches for sale. Respondents have also circulated to the retail jewelry trade throughout the United States two pamphlets, cataloguing and describing the various watches handlt>d by them, which said pamphlets similarly have featured the trade mark name" Genva" and the trade name Geneva 1Vatch Company as the concern so offering such watches for sale. In a number of these advertisements and in each of these pamphlets, watches have been depicted with the word "Genva" appearing on the dials. PAn. 7. In said advertisements and in said pamphlets, the firm name, Geneva "\Vatch Company has been followed in practically every case with the words "Makers of Fine "\Vatches "· Several of said advertisements offer said watches at "Direct Manufacturers' Prices and Service ", and other advertisements state that, although many watches offered to the trade are of "unpedigreed origin", one buying standardized watches from the Geneva 1Vatch Company can get " factory prices" andjor "manufacturers' prices". PAn. 8. There is no statement in any of respondents' advertising in publications or said two pamphlets or on the watches themselves or the individual containers to the effect that any of the watches so offered were obtained at any point in Switzerland other than the City of Geneva.

PAR. 9. Switzerland has for many years been known to the public throughout the United States as the place of origin of watch movements and watches of a high standard of excellence, and the City of Geneva, Switzerland, is well known in the watch and jewelry trade and to a substantial portion of the purchasing public as the place which built up and created the reputation of Switzerland as the point of origin of watches of excellence. The City of Geneva, Switzerland, enjoys and has enjoyed for over 200 years the reputation of being the one place where there are assembled in the largest GENEVA WATCH CO. 459 452 Findings. numbers the finest and most skilled and efficient watchmakers of the world. ·watchmakers who are taught the trade of their fathers and schooled in the theory as well as the practice of the trade in the technical institutions established and maintained in that city for that purpose. Great care is taken by the watchmakers' guilds and by the authorities of the City of Geneva to preserve and enhance the high reputation for workmanship, finish, reliability and excel~ lence which that city has attained in the watch movement making industry, and by reason of its reputation the name Geneva in connection with a watch or watch movement is of particular significance and adds value to the product.

PAR. 10. Respondents in the course of their business as above outlined, are in competition with other persons, partnerships and corporations engaged in the business of importing completed watches and watch movements from Geneva andjor other points in Switzerland; and of selling said completed watches and movements after such importers have placed them in cases to retail and wholesale jewelers in the various cities and States of the United States, in considerable quantities. The watches so sold by competitors of re~ spondents, the movements of which were made in the City of Geneva, are marked with the word "Geneva " and/or the fact that such movements were made in the City of Geneva is availed of in the sale of the said watches and found to be of considerable assistance therein, as the watch and jewelry trade generally have a marked preference for watches, the movements of which are made in Geneva as against watches, the movements of which ar~ made at other points in Switzerland.

PAR. 11. The use by the respondents of the trademark "Genva " in connection with the trade name " Geneva 'Vatch Company " is with the purpose and intent of deceiving and misleading the purchasers of said watch movements into the belief that the said watch movements are made in the City of Geneva, Switzerland, and the effect of the adoption and use by the respondent of the trademark "Genva" and the trade name "Geneva 'Vatch Company" is and has been to mislead and deceive the trade and the consuming public into the mistaken belief that the respondents are engaged in the manufacture of watches and watch movements in the City of Geneva, Switzerland, and that the watches or watch movements sold by respondents and advertised by them as hereinbefore set out are manu~ factured in said city. Such practices of respondents unfairly and injuriously effect the business of competitors of respondents, who are engaged in the importation and sale throughout the United States of watches, the movements of which are made in Gf!neva andjor other points in Switzerland.

460 Federal TRADE COMMISSION DECISIONS. Order. 8 F. T. C.

CONCLUSION.

The practices of the said respondents under the conditions and circumstances described in the foregoing .findings, are unfair methods of competition in interstate commerce and 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 answer of the respondents, and testimony and evidence submitted, the trial examiner's report upon the facts and the exceptions thereto, and the Commission having made its .findings as to the facts with its conclusion that the respondent has violated the provisions of the Act of Congress approved September 26, 1914, entjtled "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes ";

Now, therefore, it is ordered, That the respondents, Lawrence L. Mayers and Chauncey M. 1\fayers, individually and as copartners trading under the name and style of Geneva 'Vatch Company, their agents, servants, representatives and employees do cease and desist from:

1. Using or displaying upon circulars or advertising matter used in connection with the sale of watches and watch movements manufactured, dealt in or sold by them in interstate commerce, upon the cases containing said watch movements, or upon the boxes or packages containing said watches or watch movements, the words "Geneva 'Vatch Company" or the word "Geneva," alone or in combination with other word or words, if in truth and fact the said watches and watch movements were not made in the city of Geneva, Switzerland, unless following such word or words and in type or lettering equally conspicuous with them, appear words in which the true place of manufacture, town or city and State, is stated. 2. Using or displaying upon circulars or advertising matter used by them in connection with the sale of watches or watch movements made, dealt in or sold by them in interstate commerce, upon the dials of said watches or watch movements, upon the cases containing said watr·h movements, or upon the boxes and containers thereof, the word or brand 'Genva" in association with the words "Geneva 'Vatch Company" or in simulation of the word or brand " Ckneva," if in GENEVA WATCH CO. 461 452 Order.

truth and fact such watches or watch movements were not made in the city of Geneva, Switzerland, unless such brand and words are tollowed by words in type or lettering equally conspicuous with them, in which the true place of manufacture, town or city and State, is stated.

It is further ordered, That the respondents, Lawrence L. Mayers and Chauncey M. Mayers, partners doing business under the firm name and style of Geneva Watch Company, shall within sixty (60) days after the service upon them of a copy of this order, file with the Commission a report in writing, setting forth in detail the manner and form in which they have complied with the order to cease and desist hereinbefore set forth.

4G2 FEDERAL TRADE COMMISSION DECISIONS. Complaint. 61l'.T.C. FEDERAL TRADE COMMISSION v.

B. RAFF & SONS.

COMPLAINT IN Tile l\IA'ITER OF Tile ALLEGED VIOI..ATION OF SECTION II OF AN ACT OF CONGRESS APPROVED SEPTEMBER 26, 1914, Docket 973-Qctober 10, 1923.

SYLLABUS.

Where a firm engaged ln the sale to retail dealers of combs, toilet sets, etc., composed of "white pyroxylln" or "celluloid," In competition with con· cerns which correctly described and represented their products, In its cata· logues described the same as "Parisian Ivory," "White Ivory," "need Ivory," etc., and thereby misled dealers and other purchasers Into believing said articles to be made of Ivory;

Held, That such false and misleading advertising under the circumstances set !orth, constituted an unfair method of competition. COMPLAINT.

Acting in the public interest pursuant to the provisions of an Act of Congress, approved September 2G, 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 B. Raff and. Sons, a partnership, composed of the following members, B. Ruff, I. Rail', and. M. Raff, hereinafter referred to as respondents, have Leen and. are using unfair methods of com· petition in commerce in violation of the provisions of Section 5 of said. Act, and. states its charges in that respect as follows: PARAGRAPH 1. The respondents, D. naif and. Sons, a partnership composed of B. Raff, I. Raff, and M. Raff, against which partnership this complaint is brought and also against the said. individuals com· posing said partnership, are located at 233 Fifth Avenue, New York City, and are engaged. in a jobbing business handling jewelry, plated ware, toilet sets, etc. Respondents are not manufacturers but buy these articles from various manufacturers located in different parts of the country. Sales of these articles are made to retail dealers iu all parts of the United States, partly through the personal efforts of the partners and the traveling salesmen employed, and partly by mail. To facilitate the sale of these articles respondents issue cata· logues containing cuts and written descriptions of its merchandi~. These catalogues are sent throughout the trade and are used by the retail dealers when ordering by mail. Respondents caused the B. RAFF & SONS, 463 462 Fin <lings. ariicles sold by them to be transported from the City of New York to purchasers through and into various other states of the United States. In the course of business above referred to the respondents hr..ve been and now are in competition with other persons, partnerships and corporations engaged in the sale of such articles as are above set out.

PAR. 2. Among the other commodities bought and sold by respondents they buy and sell considerable quantities of combs, toilet set3, etc., made of white pyroxylin or "celluloid," as it is commonly known. These goods are purchased from several different manufacturers and are not branded. In offering these articles for said respondents freely use in their catalogue the descriptive terms sucl1 as: "Parisian Ivory," "'Vhite Ivory," "Reed Ivory" and other similar expressions to designate the material of which these articles are manufactured, which articles are manufactured of white pyroxy· lin or "celluloid," and contain no ivory at all. PAR. 3. The advertisements so published in said catalogue by said respondents, which catalogues are sent by mail to various dealers in such articles, and other prospective purchasers of such articles who are not dealers but who buy such articles for their own use throughout the various states of the United States, are misleading and cause such dealers and other persons who are not dealers to believe that such articles are manufactured of ivory when in truth and in fact such articles are manufactured entirely of pyroxylin, commonly known as "celluloid," which is a cheap substance of small value and worth very much less than ivory. PAR. 4. The above alleged acts and things done by respondents are all to the prejudice of the public and respondents' 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 2G, 1914. REPORT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of an Act of Congress approved September 2G, 1!>14, the Federal Trade Commission issued and served its complaint upon the respondents, D. Rafl', I. Rafl', and 1\[. Rafl', co- Pat'tners doing business under the firm name and style of n. Ratr & Sons, charging them with unfair methods of competition in commerce in violation of the provisions of said act. The respondents having entered their appearance without filing an answer herein and an agreed statement as to the facts having been 36727° -25--VOL 6--31 464 FEDERAL TRADE COMMISSION DECISIONS. Findings. 6F.T.C.

made and filed in which it is stipulated that the facts therein recited may be taken as the facts of this proceeding and in lieu of testimony, and upon such facts the Commission may proceed further to make its report in said proceeding, stating its findings as to the facts and conclusion and entering its order disposing of the proceeding. And thereupon this proceeding came on for final hearing without oral argument, and the Commission, having duly considered the record and being fully advised in the premises makes this its findings as to the facts and conclusion:

FINDINGS AS TO Tile FACTS.

PARAGRAPH 1. The respondents, B. Ratr & Sons, a partnership composed of n. Raff, I. Raff, and :M. Raff, against which partnership this complaint is brought and also against the said individuals composing said partnership, are located at 233 Fifth Avenue, New York City, and ale engaged in a jobbing business handling jewelry, plated ware, toilet sets, etc. Respondents are not manufacturers but buy these articles from various manufacturers located in different parts of the country. Sales of these articles are made to retail dealers in all parts of the United States, partly through the personal efforts of the partners and the traveling salesmen employed, and partly by mail. To facilitate the sale of these articles respondents issue catalogues containing cuts and written descriptions of its merchandise. These catalogues are sent throughout the trade and are used by the retail dealers when ordering by mail. llespondents caused the articles sold by them to be transported from the City of New York to purchasers through and into various other States of the United States. In the course of business above referred to the respondents have been and now are in competition with other persons, partnerships and corporations engaged in the sale of such articles ns are above set out.

l 1AR. 2. Among the other commodities bought and sold by respondents they buy and sell considerable quantities of combs, toilet sets, etc., made of white pyroxylin or "celluloid," as it is commonly known. These goods are purchased from several different manufacturers and are not branded. In offering these articles for snJe respondents freely use in their catalogue the descriptive terms such as: "Parisian Ivory," "'White Ivory," "Heed Ivory," and other similar expressions to designate the material of which these articles are manufactured, which articles are manufactured of white pyroxylin or ''celluloid," and contain no ivory at all. PAn. 3. The advertisements so published in said catalogue by said respondents, which catalogues are sent by mail to various dealers in B. RAFF & SONS, 465 462 Order. such articles, and other prospective purchasers.of such articles who are not dealers but who buy such articles for their own use through· out the various States of the United States, are misleading and cause such dealers and other persons who are not dealers to believe that such articles are manufactured of ivory when in truth and in fact such articles are manufactured entirely of pyroxylin, commonly known as "celluloid," which is a cheap substance of small value and worth very much less than ivory.

PAn. 4. That among the competitors of the respondents there are and have been a considerable number who sell in interstate commerce articles mentioned in paragraph 2 hereof, manufactured from genuine ivory and there are also among such competitors a consider· able number who sell and have sold in interstate commerce such ar· tides manufactured from white pyroxylin or "celluloid," who do not brand, label, represent or advertise such articles as " Parisian Ivory," "'Vhite Ivory,"" Reed Ivory," or by any other description indicating that said articles are manufactured from ivory. CONCLUSION, The practices of the said respondents, under the conditions and circumstances described in the foregoing findings, are unfair. methods of competition in interstate commerce, and constitute a violation of the Act of Congress approved September 2G, 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 :qaving been heard by the Federal Trade Com· mission upon the complaint of the Commission, and the agreed statement as to the facts made and filed herein, in lieu of the testimony and evidence, :md the Commission having made its "findings as t •. the facts and :ts conclusion that the respondent has viclated the provisions of an Act of Congress approved September 2G, 1914, en· titled, "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes," It is now ordered, That the respondents, B. Raft, I. Raft, and M. Haff, as partners and individually do cease and desist from directly or indirectly advertising or representing as '' Ivory " articles offered for sale or sold by them, unless such articles are in fact made or composed of ivory.

466 FEDERAL TRADE COMMISSION DECISIONS. Complaint. 6F.T.C.

FEDERAL TRADE COMMISSION v.

CROFTS & REED COMPANY AND POLONIA SOAP COMPANY.