Brenner Paper Manufacturing, Inc.

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

IN THE MATTER OF BRENNER PAPER l\IANUF ACTURING, INC.

COMPLAINT AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGR:ESS APPROVED SEPT. 26, 1914 Docket 2590. Compla-int, Oct. 21, 1935-ordcr, Dec. 11, 1935 Consent order requiring respondent corporation, its agents, etc., in connection with the printing or converting of paper or the imprinting thereon of forms and panels in preparation for use in printing announcements, or in tbe sale and distribution of such products in interstate commerce, to cease and desist from using a corporate name containing the word "manufacturing", or repre,;enting by any other means that it is a paper manufacturer, or using phrase "paper manufacturing", or publishing in any manner state· ments conveying impression that it or any of its officers, agents or employees on its behalf is engaged ln paper manufacturing business or that its pt·od· ucts are manufactured on its premises, unless and until it actually manufactures the paper It sells or offers for sale or owns or absolutely controls a mill, mills, factory or factories in which such paper is manufactured. J,fr. T. II. Kennedy for the Commission.

J,fr. Jacob Brenner, 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 Brenner Paper Manufacturing, Inc., a corporation, hereafter. referred to as respondent, has been and now is using unfair methods of competition in commerce as "commerce" is defined in said act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, states its charges in that respect as follows: PARAGRAPH 1. The Brenner Paper Manufacturing, Inc., respondent herein, is a corporation organized in October 1933, then, ever since and now, existing under and by virtue of the laws of the State of New York and now has its principal place of business in the city of New York, State of New York. . PAn. 2. The respondent, Brenner Paper Man,ufacturing, Inc., is and has been since on and after March 1, 1935, engaged in the business of printing or in the converting of paper or the imprinting thereon on forms and panels in the preparation for use in printing announcements and in the sale and distribution of such products in commerce between and among the various States of the United States. BRENNER PAPER 1\IANUFACTURING, INC, 663 662 Complaint PAR. 3. The respondent is and has been since on and after March 1, 1935, engaged in the sale or distribution of the above mentioned products in commerce to members of the public residing in States other than New York and the respondent has caused the products when so sold or distributed by it to be transported from the respondent's place of business in New York or from the State of origin of the shipment to, into and through States other than New York, or the State of origin of the shipment to members of the public, the purchasers or consignees of the said products. PAn. 4. The respondent, since its incorporation, has been and now is in competition with other individuals, firms, partnerships, and corporations located in the United States who have been and are engaged in the sale or distribution in interstate commerce of products like or similar to those sold or distributed by respondent as hereinbefore described.

PAR. 5. In the course and conduct of its business the respondent, In soliciting the sale and distribution of its products, has carried on its business under its corporate name, Brenner Paper Manufacturing, Inc., and has used and featured said name so containing the words and phrase "Paper Manufacturing" and the statements: Louis B1·enner Is a producer haring 20 years experience in the printing business and 10 years in the manufacturing and convert· ing of announcements, and Everything we sell is made on our own premises, and has caused the same to appear on its stationery, bill heads, trade directories, price lists, announcements and other business stationery circulated among its customers and prospective customers. Said solicitation and sale has been and now is in interstate commerce. Respondent, throughout all its business transactions since March 1, 1935, has represented itself to be a paper manufacturer, when in truth ~nd in fact it has not been a paper manufacturer but a converter and printer.

PAn. 6. The representations made by respondent as alleged in paragraph 5 hereof, are false and misleading and have the tendency and capacity to mislead and deceive the purchasers of respondent's prod- Ucts into the belief that when purchasing from respondent they are dealing with a manufacturer of paper and thereby are gaining an advantage by saving the middleman's profits. The said false representations also have the capacity and tendency unfairly to divert and do divert trade from its competitors.

Order 21F.T. O.

PAR. 7. The above alleged acts and practices of respondent are all to the prejudice of respondent's competitors, and constitute unfair methods of competition in interstate commerce within the intent and meaning of Section 5 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 '1'0 CEASE AND DESIST The respondent herein having filed its answer to the complaint in this proceeding, and having subsequently filed with this Commission its motion that it be permitted to withdraw its said answer and that it be permitted to file in lieu thereof as a substituted answer, the draft of a proposed substituted answer annexed to the said motion; and the Commission having duly considered the said motion: It is hereby ordered, That the said motion be and the same is hereby granted; that the said answer be and the same is hereby withdrawn; and that the said proposed substituted answer be, and the same is hereby filed in lieu of the said answer so withdrawn. And the said respondent in and by its said substituted answer having waived hearings on the charges set forth in the complaint in this proceeding, and having stated in its said substituted answer that it does not contest the said proceeding, and having consented in its said substituted answer that the Commission, without a trial, without evidence, and without findings as to the facts or other intervening procedure, might make, enter, issue, and serve upon the said respondent, an order to cease and desist from the methods of competition charged in the complaint; and the Commission being fully advised in the premises;

It is hereby further ordered, That the respondent, Brenner Paper Manufacturing, Inc., a corporation, its officers, agents, representatives or employees, in connection with the printing or the converting of paper or the imprinting thereon, forms and panels in preparation for use in printing announcements or in the sale or offering for sale or distribution of such products in interstate commerce, do cease and desist from :

Using a corporate name containing the word "manufacturing" or from representing by any other means that the respondent is a paper manufacturer, or using the phrase "paper manufacturing", or publishing in any manner statements conveying the impression that respondent or any of its officers, agents or employees on behalf of respondent is engaged in the paper manufacturing business or that products of said respondent are manufactured on the premises of BRENNER PAPER MANUFA.CTUIUNG, INC. 665 {\62 Order respondent, unless and until said respondent actually manufactures the paper it sells or offers for sale or owns or absolutely controls a mill, mills, factory or factories in which such paper is manufactured. It is further ordered, That the said respondent within 60 days from the date of the service upon it of this order shall file with the {)ommission a report in writing setting forth in detail the manner and form in which it is complying and has complied with the order to cease and desist hereinabove set forth. Syllabus 21 F. T. C.