Jacobs & Brother, Leon E

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IN THE 1\f:A TTER OF' LEON E .•JACOBS AND MORRIS JACOBS, COPARTNERS, TRADING UNDER THE NAl\1E & STYLE OF LEON E. JACOBS AND BROTHER COMPLAINT (SYNOPSIS), FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. II OF AN ACT OF CONGRESS APPROVED SEPT. 26, lOH Docket 1559. Complaint, Jan. 2, 1929-Deoision, Feb. 11, 1929 Where a new species of cotton cloth made In England and of distinctive ap.. pearance had come to be kuuwn m the United States as "English Broatl· cloth", to be very popular and In high repute, "English Broadcloth" shirts had come to be in great demand, and the words " Imported English " and " English " applied to said type of fabric had come to denote to the pur· chaser that the same was made in Englund, and, to a large proportion of retaiiers and a substantial portion of the consuming public, was of excellent quality and had a recognized value; and then after a firm engaged in the manufacture and sale of men's shirts, purchu.;ed a similar cloth manufactured by American manufacturers under the name "broadcloth", and sold shirts made thereof to their retail customer dealers as of "English Broadcloth " and labeled the same "Imported Knox English Broadcloth" and/or "English Broadcloth", with the capacity and tendency to deceive retail dealers and a substantial portion of the purchasmg public into believing the aforesaid shirt~ to be made of material made in and imported from England:

Tleld, That such practlccs, under the circumstances set forth, constituted unfair methods of competition.

Mr. 1Villiam T. Kelley for the Commission. SYNOPSis OF Complaint Reciting its action in the public interest, pursuant. to the provisions of the Federal Trade Commission Act, the Commission charged respondents, individuals engaged as partners in the manufacture of cotton fabrics purchased from American mills, into men's shirts, and in the sale thereof to retailers throughout the various States, and with principal place of business in New York City, with misrepresenting product and misbranding or mislabeling, in violation of the provisions of section 5 of such act, prohibiting the use of unfair methods of competition in interstate commerce, in that respondent sold as "English Broadcloth". shirts made of a cotton fabric manufactured by American mills, termed "broadcloth", and 103133.--3Q--vol12----23 Findings 12F.T.C.

resembling English-made cotton fabric, there termed "taffeta poplin", but known in the United States as" English Broadcloth ",1 and labeled said shirts "Imported English Broadcloth", "Imported Knox English Broadcloth" and/or "English· Broadcloth", thereby denoting to the purchaser that the fabric so named was inade in England, the product of English mills and, to a large proportion of retailers and a substantial proportion of the consuming public, a reputation for excellence and quality and a recognized value; and with the capacity and tendency to deceive not only retailers but a substantial portion of the purchasing public as to the source of the material of which the shirts were made; all to the prejudice of the public and of respondents' competitors. Upon the foregoing complaint, the Commission made the following REPORT, FINDINGS AS TO THE FACTS, AND ORDER 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 issued and served a complaint upon the respondents Leon E. Jacobs and Morris Jacobs, copartners, trading under the name and style of Leon E. Jacobs & Bro., charging them individually and as copartners with the use of unfair methods of competition in commerce in violation of the provisions of said act. The respondents thereafter having made, executed, and filed an agreed statement of facts in which it is stipulated and agreed by the respondents and the Federal Trade Commission that the Federal Trade Commission shall take such agreed statement as the facts in this case and in lieu of testimony and proceed forthwith with said agreed statement of facts to make its findings as to the facts and such order as it may deem proper to enter therein without the introduction of testimony o~ the presentation of argument in support of same, and the Federal Trade Commission having duly considered the record and being now fully advised in the premises makes this its report, stating its findings as to the facts: FINDINGS AS TO THE FACTS P ARAGI:APH 1. The respondents, Leon E. Jacobs and Morris Jacobs, are copartners trading under the name and style of Leon E. Jacobs & Bro., with their principal office and place of business • The history of the English fabric, and its Importation and nomenclature ln the United States, as alleged In paragraphs 2 to 15 of the complaint, are set forth ln the correepondlng paragraphs of the flndlng&. See p. 330. LEON E. JACOBS & BltOTHER 339 337 Findings located in tlie city of New York, State of New York. Respondents for more than one year last past have been, and are now, engaged in the business of purchasing from American mills cotton fabrics and causing said :fabrics to be made into men's 'shirts and in the sale of said shirts to retail dealers located throughout the various States of the United States. Respondents have caused, and now cause, the said shirts when so sold to be transported in interstate commerce from New York City to the purchasers thereof at various points in States of the United States other than the State of New York. In the course and conduct of their business, respondents have been, and are now, in competition with other individuals, partnerships, and corporations engaged in the manufacture and sale of men's shirts in interstate commerce.

PAn. 2. During the year 1919 certain American importers learned of a cotton fabric then being manufactured in England, which, by reason of its construction and the quality of the yarn used, possessed a distinctive appearance and was, in fact, a new species of cotton cloth. This cloth was made from the finest grade of Egyptian long staple cotton yarn, the counts running from 156 by 84 to 144 by 76, two-ply, both ways, 100 yarn, gassed and highly mercerized, weighing about 4¥2 pounds to the yard. This fabric possessed a fine, silky &been, great durability, and resembled a fabric made of silk so closely that it was named by the English mills and dealers, "taffeta poplin." PAn. 3. This new fabric the American importers bought, shipped over to the United States, and introduced the same to the manufacturers of shirts, who at once designated it as a "broadcloth," on acJ count of the resemblance of this very superior cotton to a silk fabric which for a generation or more has been made in America and known as a "silk broadcloth." · PAR. 4. This new spieces of cotton cloth at once became known in the United States a~ "English Broadcloth." From the start it became very popular, the demand exceeded the supply, and between the last of 1919 and the first of 1921 a very high reputation was established for this cloth among the retail dealers in shirts throughout the States of the United States, and with the consumers; and " English Broadcloth " shirts came into great demand. PAR. 5. The word " broadcloth " is not, in England, applied to any cotton fabric, but for centuries has been applied to a very fine Woolen fabric of unusual width, from which men's dress suits and women's skirts and tailored suits are made, and, in the United States, the word 1' broadcloth " is also used to designate the same woolen fabric. The words "silk broadcloth " were used in the shirt industry to designate a fine fabric maue of silk, and from which shirts were 340 FEDl!.:RAI, TRADE COMMISSION DECISIONS Conclusion 12F.T.O.

made, and after the introduction from England, in 1919, of the fine cotton fabric descrihed in paragraph 2, the American mills manufactured a similar cotton doth, which was known to the shirt manu• facturers in the United States as" broadcloth." The American mills ao not style or designate the cotton fabric produced by them " English Broadcloth."

PAn. 6. The respondents in the course and conduct of their business in interstate commerce, as set out in paragraph 1 hereof, purchased the cotton fabric termed " broadcloth " made by American mills und c:aused tho same to be ·manufactured into shirts, which shirts they sold to retail dealers as shirts made of " English Broadcloth " and fixed or attached upon such shirts labels bearing the words "Imported Knox English Broadcloth" and/or "English Broadcloth."

PAn. 7. The words" Imported English" and the word "English" when apphed to the type of cotton fabric described in paragraph 2 hereof denotes to the purchaser that the fabric was made in England, is the product of English mills and among a large proportion of retailers and a substantial portion of the consuming public of the United States the words "Imported English " and the word "Eng. lish" when applied to the type of cotton fabric, described in para· grapl1 2 hereof, has acquired a reputation for excellence and quality and has a recognized value.

PAn. 1::!. The words " Imported English " and the word " English " as applied to the cotton fabric, described in paragraph 2 hereof, are understood by the retail trade and the purchasing public to signify and represent that shirts so labeled are made from a material which is made in and imported from England.

PAR. 9. The label "Imported English Broadcloth " and the label '' Engli~:ih Broadcloth " used by the respondents as aforesaid are false, the cloth of which the shirts are made,·not being made in England and not being a product of English mills, and are calculated to cteceive not only the retail dealers, but a substantial portion of the purchasing public into the belief that shirts so labeled are made of mate· rial imported from England.

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 section 5 of the act of Congres!'l approved September 26, 1914, entitled ''An act to create a Federal Trade Commission, to define its power~:~ and duties, and for .other purposes."

BY.MAN FINKELSTEIN 341 837 Memorandum ORDER TO CEASE AND DESIST This proceeding having beet. heard by the" Federal Trade Commission upon the complaint of the Commission and the statement of facts agreed upon by the respondents and counsel for the Commission, and the Commission havmg made its findmgs as to the facts with its conclusion that the respondents have 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 respondents, Leon E. Jacobs and Morris Jacobs, do cease and desist from using the words " English Broadcloth " or the words " Imported English Broadcloth '' as a label or brand or otherwise in connection with the advertising, offering for ~ale, or sale of shirts or other garments in interstate commerce, unless such garment.s be made from broadcloth made in and imported from England.

It is further o1·dered, That the respondents within 60 days after the date of the service upon them of this order file with the Commission a report in writing setting forth in detail the manner and form in whi~h they have complied with the order to ~ease and desist hereinbefore set forth.

MEMORANDUl\( HnuN FINKELSTEIN, Complaint, December 22, 1928--Decision, February 16, 1929. {Docket 1552.) Similar findings and order were issued in this case.

Appearances: Mr. William T. Kelley for the Commission; Reswick & .Avrutis, of New York City, for respondent. Syllabus 12F.T.O.

T. G. COOKE, DOING DUSINE$S UNDER THE TRADE NAME AND STYLE OF UNIVERSITY OF APPLIED SCIENCE COMPLAIN'r (SYNOPSIS), FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLA'IlON OF' SE'C. II OF AN A'C~ OP_CONGUESS APPROVED SE,PT. 26, 1914 Doclcet 1502. Complaint, Mar. 13, 1928-Declsion, Feb. 26, 1929 Where an individual engaged ;n the sale of a correspondence course in Finger Printing, Bert1llon ldentlflcatlon and Secret Service Intelligence, and of a fingerprint outfit and apparatus accessory to the course, and with no corps of instructors other than one person chiefly engaged in grading pupils' examination papers, and using the same place of business as that of three other school~> in 'Which the aforesaid Individual was financially interested, (a) Advertised under the trade name "University of Applied Science" and signed form letters to prospective PUllils as "President, University of Applied Science", making such statements as that there was "probably no other university president I.n the United States" "so close to his students and gmduates" as himself, and otherwise representing his business as a university and himself as the fll'esidcnt thereof; thereby implying to prospec-tive pupils and to the public an institution of higher learning, with a group of learned instructors engaged in teaching the several sciences and the application thereof, and that pupils successfully pursuing its course of study would receive the benrll~ and advantages of the high reputation and prestige of such an institution;

(b) Represented to prospective pupils that be was offering them his course at a temporarily reduced price, mukir1g such statement as "This fs a special rate made to a selected number of prospective students ••, "I don't want you to have to scrimp and strain to make good. • • • To do this I have made a very considerable concession", "These terms • • • open to you for immediate acceptance", the fact being that the pretended reduced price or' concession was his regular price for the course and the articles and servic~s sold therewith;

(c) Represented that he was offering the aforesaid articles and services to prospective pupils, free, and without compensation, the fact being that the price thereof was included in the regular charge for the course; and (d) Represented that he furnished pupils with a iife meml>ersblp in an "actual and existing identification bureau", the fact being that there was no such organization pertaining to his business, but that reference was had to a cabinet with fingerprint records of a large number of anonymous persons, and that pupils coming to his place of business were afforded an opportunity of Inspecting the same and of receiving instructions by means thereof in classifying, filing and searching for fingerprints; With the capacity and tendency to mislead and deceive the public and induce persons to enroll as pupils in reliance upon the truth and accuracy of the aforesaid representations and in the erroneous belief that said business con· UNIVERSITY OF APPLIED SCIENCE 343 342 Complaint stltuted a university within the popular conception thereof and that pnplls successfully pursuing the course would rc.ccive the benefit and advantages of the high reputation and prestige of such an institution: IIeld, That such practices, under the circumstances set forth, constituted unfair methods of competition.

Mr. Alfred M. Craven for the Commission.

McKercher & Linlc, of New Yorlc City, for respondent. SrNorszs oF Co.11rPLAINT Reciting its action in the public interest, pursuant to the provisions of the Federal Trade Commission Act, the Commission charged respondent individual, engaged at Chicago under the trade name and style" University of Applied Science", in selling a course of printed instruction in fingerprint work and secret service intelligence, together with a complete fingerprint outfit for practical work 1 and a subscription, without cost to the pupil, to the only fingerprint magazine published, with using misleading trade name and advertising falsely or misleadingly, in violation of the provisions of section 5 of such act, prohibiting the use of unfair methods of competition in interstate commerce.

. Respondent, as charged, engaged as above set forth, carries on all his advertising, correspondence, and other business only under the aforesaid trade name of University of Applied Science, thereby implying to the public and prospective pupils an institution of higher learning engaged in teaching· the practical application and use of the several sciences usually taught in colleges or universities, together with a faculty, proper plant and equipment and high standards and that pupils successfully pursuing a course therein will receive the benefit and advantage of the high reputation and prestige of such an institution, the fact being that respondent, as above set forth, does not undertake to teach any subject other than the single one above referred to, nor operate or control a univerl'ity within the popular conception or any proper conception thereof.2 ·1 Set forth In the complaint as consisting of "magnifying glass, fingerprint rolls, oil can, gla~s slab, counter, fingerprint cards, and other articles regarded as accessories and aids to the acqulrf)mnt of the lmowledga of, and to the use and practice of, said arts, sciences, professions, or trades."

1 The allegations of the complaint with reference to the meaning and Implication of the Words" University", and" University of Applied Science", follow r 1 The word " University" carries by necessary lmpl!cation to the public mind and to the Dllnds of prospective pupils, and is commonly understood by the public to include and insure, an educntlonnl Institution of higher learning with a slnglo organization, a single faculty of learned persons acting as istructors In the various departments which severally give Instruction in the several !!bern! arts and sciences embraced in tbe curriculum of said educational Institution. Su<'h curriculmn is presumed to include the liberal arts and sciences, together with an additional subject or additional subjects of more advanced learn- Complaint 12F.T.C.

Respondent, further, as charged, in advertising his aforesaid course, and the articles and things supplied therewith, in newspapers, magazines, periodicals and other publications of general circulation in the United States and in the several States thereof, and in pamphlets, letters, circulars, and other forms of printed, written, or mimeographed matter, using his aforesaid trade name only, falsely and misleadingly represents that- The course, with accessories, for which the regular price is $100, is being offered to pupils who shall enroll within a certain fixed time, at the temporarily reduced price of $70, the fact being that $70 is the regular full price for such course and accessories. The course, with accessories, for which the regular price is $100 as above set forth, is offered to a limited number of selected prospective pupils at a special reduced price of $70, the fact being that such reduced price, as above set forth, is respondent's permanent full price, regularly and freely offered to all prospective pupils indiscriminately.

Prospective pupils are offered freely and without compensation to respondent, a fingerprint outfit (to wit, the articles and things above enumerated), employment bureau service for five years, and a course of instruction in secret service intelligence, the fact being that the price or cost of said pretended free gifts and service is included in the regular full price charged by respondent, and that they are not given to pupils without full payment therefor. A life membership in an actual and existing identification bureau is included among the things of value furnished by respondent to pupils, the fact being that such bureau has no real existence and the promised life membership therein can have none. The use by respondent of said trade name, and the statements and representations made as above set forth, as charged, have the tendency and capacity to mislead and deceive the public and prospective pupils and will probably mislead and deceive them into the erroneous belief that respondent is a university within the popular conception of the word and term, as hereinabove set forth, " and that pupils successfully pursuing a course of study therein will receive the benefit and advantage of the high reputation and prestige ing. The name "University or Applied Science" cnrrles by necessary impllcntlon to the public mind and to the minds or prospective pupils, and Is commonly understood by the public to include and insure, such an Institution or blgher learning engaged In teaching the practical application and use of au or portion ot the several sciences usually taught In col!egett or universities. E.uch name by like uccc881lry lmpllca tlon can'les to the public mind the assur11nce cr s group of Ruch scholars and Instructors engaged In such work, witll n Jlrop-.r plant and equipment and with high standards or ability, character nnd con• duct, and that pupils successfully pursuing a. course or study therein will receive the benelit and advantage of the high reputation and preatlge of such institution. UNIVERSITY OF APPLIED SCIENCE 345 342 Findings of such institution; that it is safe to rely and act upon statements and representations made by such university; that the several false statements and representations above set forth are made seriously and in good faith, and are true; and that, therefore, said uni• versity offers the best available opportunity for education, and that it is advisable to emoll as a pupil therein and pay to respondent the tuition so demanded by him."

Said acts and practices of respondent, as charged, 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.

Upon the foregoing complaint, the Commission made the following REPORT, FINDINGs AS TO THE FACTs, A~n ORDER Pursuant to the provisions of an act of Congress approved September 26, 1914, entitled "An act to create a Federal Trade Comnlis •. sion, to define its powers and duties, and for other purposes", the Federal Trade Commission on the 13th day of March, 1928, issued and thereafter served upon respondent, '1'. G. Cooke, a complaint charging him with the use of unfair methods in competition in commerce, in violation of the provisions of section 5 of said act of Congress. The respondent, '1'. G. Cooke, having entered his appearance and filed his answer herein, a hearing was had and evidence was thereupon introduced and received on behalf of both the Commission and the respondent before an examiner of the Commission theretofore duly appointed. Thereafter this proceeding came on for decision upon the record, and the briefs of counse] for the Commission, having duly considered the matter and being fully advised in the premises, makes this its findings as to the facts and its conclusion drawn therefrom:

FINDINGS AS TO THE FACTS P ARAORAPH 1. Respondent, 'I'. G. Cooke, is now and since April, 1917, has been engaged in Chicago, Ill., under the trade name and style of University of Applied Science, in the business of selling and furnishing by correspondence a course of instruction in fingerprinting, Bertillon Identification and Secret Service Intelligence, consisting in all of 54 printed lessons, to pupils residing at various places in the several States of the United States, and in selling to such. pupils certain articles comprising a fingerprint outfit or apparatus accessory to said course of instruction. Findings 12F.T.O.

PAR. 2. Respondent, when a pupil enters into a contract with him, and enrolls as such pupil, in consideration of the agreed cash tuition paid and agreed to be paid by such pupil, undertakes to sell and deliver to such pupil, through the United States mails and otherwise, the course of instruction and the fingerprint outfit described in paragraph 1 hereof. Thereafter and, in pursuance of said contract with such pupils respondent furnishes and causes to be transported from his said place of business at Chicago, Ill, into and through the several States of the United States and delivered to such several pupils at their respective places of residence, the lessons comprising said course of instruction and the said articles comprising said fingerprint outfit. In all of his said business, and in the several parts thereof, and in the procurement of pupils to enroll as such, and to purchase slid course of instruction and said articles, and to pay therefor, respondent is in competition with other persons, firms, and corporations, who are engaged in the same' or similar lines of business activity in interstate commerce.

PAR. 3. In aid of his said business and for the purpose of in· clueing persons to enter into contracts with him and to enroll as pupils and to purchase the said course of instruction and the articles of merchandise comprising the fingerprint outfit, respondent causes advertisements of his said course Qf instruction, and of said articles of merchandise, to be inserted and made accessible to the public in newspapers, magazines, periodicals, and other publications of general circulation irl. the United States and throughout the several States thereof, and also in catalogues, pamphlets, drcular letters, and other forms of printed, written, and mimeographed matter. In all such advertisements.respondent by and under said trade name of University of Applied Science, makes the statements a.nd representations hereinafter referred to, as follows: (1) Respondent represents that he is offering prospective pupils said course of instruction, together with eaid articles of merchandise, for which the regular price is the sum of $100, at the temporary reduced and special price of $70. In a; catalogue sent out by respondent to each prospective pupils copyrighted in 1925, and used by respondent since that time, respondent states that the regular price of his said course of instruction is $100. From the year 1925 up to shortly after the commencement of this proceeding, to wit, March 13, 1928, respondent, in. a form letter mailed with said catalogue to each prospective student, stated as follows: The actual price of this course is $100. The regular terms are $20 down and $10 a month for 8 months. Dut to you, 1f you act quickly, they will be $70-only $5 down and $5 a month for 13 months-a reduction of $30, or 30 per cent. UNIVERSITY OF APPLIED SCIENCE 347 342 Findings In another form letter sent out by respondent to each prospective pupil, and used up to shortly after the commencement of this pro· ceeding, respondent, in referring to the price of $7b, said: This is a special rate made to a selected number of prospective students to make up a new class.

The form letters above referred to were succeeded, shortly after the institution of this proceeding, by another form letter, which, thereafter and up to the present time, respondent has used, sending same out to each prospective pupil. In such form letter, the respondent, in reference to the price of $70, at which the course is offered, states:

So I have made the terms as low as business considerations will permit. I don't want you to have· to scrimp and strain to make good. • • • To do this I have made a very considerable concession. If you act quickly, my terms Wlll be $7Q--only $5 down and $5 a month for 13 months. • • • This Is a wonderful opportunity for you. It gives you 'every advantnge and privllege at a very considerable saving, and the term!'! are made exactly as you Would like to make them yourself. The only condition is that you act quickly. These terms are open to you for immediate acceptance. In truth and in fact, the said pretended reduced or special price of $70 is, and has been since the year 1925, the regular permanent and full price of said course of instruction, together with the articles of merchandise comprising the fingerprint outfit. (2) The respondent represents that he is offering to give to prospective pupils, free and without compensation, the articles and things comprising the fingerprint outfit above mentioned, and also other articles or services; in truth and in fact, all of the said articles and things so represented as free gifts, are part of and included in the instruction, service, and articles for which pupils pay respondent in the payment of the regular price charged by respondent, as above set forth, and none of the said things so promised is given to pupils without payment therefor.

(3) Respondent represents that among the things of value fur• nished by him to pupils, is a life membership in an "actual and existing identification bureau ". Respondent maintains at his place of business in Chicago, Ill., a filing c3:binet designed to hold 10,000 card records of fingerprints. It is kept practically filled at all times with fingerprint records of anonymous persons·, most of whom are dead criminals. Pupils of respondent, who may come to Chicago and respondent's place of business, are airorded the opportunity of inspecting this filing cabinet and of receiving instruction by means of such cabinet, in classifying, filing, and searching for fingerprints. 348 FEDERAL TRADE COl\Il\IISSION DECISIONS Findings 12F.T.O.

It is contended by respondent that this filing cabinet is an identifica. tion bureau, and the identification bureau referred to in his adver· tisements. An identification bureau, in which there can be any mem· bership, is an organization of persons for the purpose of identifying criminals or other persons. There is no such organization pertaining to respondent's business, "and respondent does not furnish to his pupils a membership in any such organization. PAR. 4. The false and misleading statements and representations set forth in the third paragraph hereof, and each of them, have the capacity and tendency to. deceive the public and to induce persons to enroll as pupils of respondent in reliance upon and by reason of their belief in the truth and accuracy of such representations. PAR. 5. Respondent carries on all of his advertising under the trade name "University of Applied Science". He signs many of the form letters sent to prospective pupils for the purpose of inducing them to enroll as pupils, as "President, University of Applied Science". He otherwise represents his business to be a university, and himself to be the president of such university; :for example, in the catalogue above referred to appears the following statement:

There is probably no other university president ln the United States who ls so close to his students and graduates as T. J. Cooke. A university, as commonly understood, is an educational institution of higher learning, empowered to confer degrees, with a faculty o:f learned persons acting as instructors in the various higher br.anches of learning embraced in the curriculum, and which curriculum usually includes the liberal arts and sciences and one or more special branches of learning, such as theology, law, and medicine.

The name "University of Applied Science" carries by necessary implication to the public mind and to the minds of prospective pupils of respondent, an institution of higher learning engaged in teaching the several sciences, and the application thereof, usually taught in colleges and universities. Such name, by like necessary implication, carries to the public mind the assurance of a group of learned instructors, and that pupils successfully pursuing the course of study therein, will receive the benefit and advantage of the high reputation and prestige of such institution. In truth and in fact, respondent is not and does not have, operate, or control a "University" or "University o:f Applied Science" within any proper or common meaning of such terms. UNIVERSITY OF APPLIED SCIENCE 349 842 Order Respondent's course of instruction is limited to the subjects set forth in paragraph 1 hereof, and such meager instruction in photography and chemistry as is incidental to instruction in fingerprinting. The lessons are printed and sent out by mail to pupils, and when returned, are usually accompani,ed by a certain so-called examination, which is comprised of certain answers which the pupil makes to certain questions appearing at the end of the lesson. These examinations are graded by the respondent. The respondent has no faculty or corps of instructors other than one person whose time is chiefly taken up with marking or grading the examination papers above referred to. Respondent's place of business is one in common with three other correspondence schools, in which respondent individually is heavily interested financially. Respondent uses the term "University of Applied Science" solely as a trade name for his business.

PAR. 6. The use by respondent of the trade name "University of Applied Science", as set forth in paragraph 5 hereof, has the tendency and capacity to mislead the public and prospective students into the erroneous belief that respondent is a university within the popular conception of the word "University", as set forth in paragraph 5 hereof and within the popular conception of the name "University of Applied Science" as set forth in said paragraph, and that pupils successfully pursuing the course of study therein will receive the benefit and advantage of the high reputation and prestige of such an institution.

CONCLUSION The practices of said respondent under the conditions and circumstances described in the foregoing findings are to the prejudice of the public and respondent's competitors, and are unfair methods of competition in commerce, and constitute a violation of the act of Congress approved September 26, 1014, 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 on the complaint of the Commission, the answer of the respondents, the evidence introduced on behalf of the Commission and said respondent, and the briefs o£ counsel for the Commission and counsel for respondent, and the Commission having made its findings as to the facts and its conclusion that said respondent, T. G. Cooke, has violated the provisions o£ an act of Congress approved 350 FEDERAL TRADE COMl\IISSION DECISIONS Order 12F.T.O.

September 2G, 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 respondent, T. G. Cooke, in. offering for sale or selling courses of instruction or articles of merchandise, in inter::;tate commerce, to cease and desist from: (1) Representing to prospective ·pupils or to the public that the price at 1which any course of instruction offered is a special or reduced price or a price that is lower than: the price ordinarily and usually received, when such is not the fact. (2) Representing that any article of merchandise or other thing or service is furnished free to pupils, when the price or value of such article of merchandise or other thing or service is included in the price specified as the price of the course of instruction. (3) Representing that the respondent furnishes to the prospective pupil a life membership in an identification bureau. (4) Using the word "University" in the trade name of respondent, or in any manner as descriptive of respondent's business; and from representing that the respondent is president of a "University", or that respondent's business is a "University" or "University of Applied Science".

It is furth.er ordered, That said respondent, T. G. Cooke, shall within 60 days after the service upon him of a copy of this order, file with the Commission a report in writing, setting forth in detail the manner and form in which he has complied with the order to cease and desist heretofore set forth.

I· MASLAND DURALEATHER CO, ET AL, 351 Complaint