Davis Knitting Mills, Inc.

Text (OCR of the scan at left; may contain errors)

IN THE Matrer OF DAVIS KNITTING MILI~S, INC., TRADING UNDER ITS OWN NAME AND AS YORKE KNITTING MILLS COMPLAINT AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. li OF AN ACT OF CONGRESS AI'PROVED SEPT. 2{1, lOH Docket f525. Complaint, Aug. 21, 1935-order, Oct. 15, 1935 Oonsent order requiring respondent corporation, its officers, etc., in connection with the advertisement, offer for sale and sale in interstate commerce and In the District of Columbia of men's and boys' knitted outerwear, to cease and desist from using the word "Mills" or the words "Knitting Mills" In Its corporate or trade name and In any trade name under which it may do business; and from the use of the word "Mills" or the words "Knitting Mills" In any way which may have the capacity or tendency to confuse, mislead or deceive purchasers Into the belief that it owns, controls and op· crates a mill or factory wherein Its products are made or fabricated, unless and until such representations arc true In fact. Mr. Wilburn. Baughman for the Commission, Mr. Harry W. Pitt, of New York City, for respondent. COMPLAINT 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, having reason to believe that Davis Knitting Mills, Inc., trading under its own name, and as Yorke Knitting Mills, have been and are using unfair methods of competition in commerce, fi.S "commerce" is defined in said act of Congress, in violation of said act, and it appearing to said Commission that a proceeding by it in respect thereof would be in the public interest hereby issues its com· plaint stating its charges in that respect as follows: PARAGRAPII 1. That the respondent is a corporation incorporated and existing under the laws of the State of New York, having its princi· pal place of business at 1199 Broadway, New York City; in its own name and also under the style and name of Yorke Knitting Mills, and is engaged in the business of selling men's and boys' knitted outerwear, in the course of which it has solicited orders for its products from dealers and prospective customers in various States other than the State of New York, and has contracted to sell and deliver and has sold and caused to be transported to purchasers outside of the State of New York, its products as above described; that the respondent is in competition with persons, partnerships, and corporations who manufacture and sell in interstate commerce a similar line of knitted outer· DAVIS KNITTING MILLS, INC. 393 392 Order -wear, advertising themselves truly as manufacturers; and also in competition with other persons, partnerships, and corporations who sell in interstate commerce a similar line of knitted outerwear who do not manufacture the same and do not advertise themselves as manufacturers of the same.

PAR. 2. That the respondent does not own or operate a knitting mill, although in its corporate name and trade name it uses the words "Knitting Mills"; and although the letterheads and billheads of both the Davis Knitting Mills, Inc., and the Yorke Knitting Mills, represents them, and each of them, to be "Manufacturers of Knitted N" ovelties".

PAR. 3. That the use by respondent of the words "Knitting Mills", or the word "Mills", in its corporate or trade name and in any trade name under which it may do business, and the use of letterheads and billheads which represents it to be "manufacturers of knitted novelties", have the capacity and tendency to confuse, mislead, and deceive purchasers into the belief that it owns, controls, and operates a knitting mill or factory wherein its products are made and fabricated, and to believe that in purchasing its product they are buying direct from a manufacturer and without the intervention of, or profit to, any lniddleman, when such is ·not the fact; and said representations constitute unfair methods of competition with persons, partnerships, and corporations who do manufacture and sell a similar line of knitted outerwear, and said representations further constitute an unfair tnethod of competition with persons, partnerships, and corporations \Vho sell a similar line of knitted outwear but who do not manufacture the same and who do not advertise themselves as manufacturers of the same.

Wherefore, said acts and practices of respondents are all to the prejudice of the public 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 This proceeding coming on for final hearing by the Federal Trade Commission on the record, including the complaint of the Commission issued under Section 5 of an Act of Congress approved September 26, 1914, entitled "An Act to create a Federal Trade Comtnission, to define its power and duties, and for other purposes", and respondent's amended answer thereto in which respondent waives hearing on the charges set forth in the complaint, refrains from Order 21F. T.C.

contesting the proceeding and, pursuant to the Commission's Rules of Practice with respect to answers, consents that the Commission may make, enter and serve up<m respondent without a trial, without evidence, and without findings as to the facts or other intervening procedure, an order to cease and desist from the method or methods of competition alleged in the complaint; and the Commission having duly considered the matter and being fully advised in the premises- It is now ordered, That respondent, Davis Knitting Mills, Inc., trading under its own name and as Yorke Knitting Mills, a corporation, its officers, agents, servants, and employees, in connection with the advertising, offering for sale, and selling in interstate commerce, and in the District of Columbia, of men's and boys' knitted outerwear, do cease and desist from :

The use of the word "Mills" or the words "Knitting Mills" in its corporate or trade name and in any trade name under which it n:·ay do business; and from the use of the word "Mills" or the words "Knitting Mills" in any way which may have the capacity or tendency to confuse, mislead, or deceive purchasers into the belief that it owns, controls and operates a mill or factory wherein its products are made or fabricated, unless and until such representations are true in fact.

It is further ordered, That the respondent within 60 days from and after the date of service upon it of this order shall file with the Com· mission a report or reports, in writing, setting forth in detail the manner and form in which it is complying with the order to cease and desist hereinbefore set out by the Commission. PETERS SERUl\I CO. 395 Complaint