Acme Distilleries, Inc

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IN THE MATTER OF ACME DISTILLERIES, INC.

<:!COMPLAINT, FINDINGS, AND ORDER IN REGARD TO TllEl ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGREJSS APPROVED SEPT. 26, 1914, AND OF SEC. 3 OF TITLE I OF AN ACT OF CONGRESS APPROVED JUNE 16, 1933 1 Docket 2310. Complaint, Apr. 22, 1935-Decision, Sept, 29, 1936 Where a corporation engaged in rectifying, blending, and bottling whiskies, brandies, rum, gin, and other spirituous beverages, and neither distilling such whiskies, etc., by process of original and continuous distillation through closed pipes and vessels until manufacture is complete, nor owning, operating, or controlling a place or places where such beverages are tffiade by process of distillation, but purchasing its distilled Rpirits requirements from distillers, and selling its said rectified and bottled products among the various States, in competition with corporations, firms, etc., engaged in manufacture and distillation of whiskies, etc., and who truthfully use words "Distillery," "Distilleries," "Distillers," or "Distilling" as part of their corporate or trade names and on their stationary and on labels of bottles in which they sell and ship such products, and in competition with corporations, etc., engaged in rectifying, blending, and bottling whiskies, n etc., and who do not use said words as a part of their said names, ~tc.epresented, through use of word "Distilleries" in its corporate name, prmted on its stationery and on labels attached to bottles in which it sold and shipped its said products, and in various other ways, that its said whiskies, brandies, rum, gin, and other spirituous beverages, thus containered and labeled, were by it made through process of distillation, and furnished its Said customers with means of similarly misrepresenting said products as thus made to their own customer retailer vendees and to ultimate W consuming public, as case might be;

ith effect of misleading and deceiving dealers and purchasing public- into belief that said whiskies, etc., sold by it were by it made and distilled, and with capacity and tendency so to do and to induce dealers and purchasing public, in such belief, to buy said whiskies, etc., tbus rectified, blended, and bottled by it, and with effect of diverting trade thereby to it from competitors who did not, through their trade or corporate names, or 1~ any other manner, misrepresent that they were manufacturers by distillation of whiskies, and other spirituous beverages; to the substantial li Injury of substantial competition in commerce: ela, That such acts and practices were to the prejudice of the public and competitors and constituted unfair methods of competition. Before Mr. John lV. Bennett, trial examiner.i CAt,., PGad B. Morehouse and Mr. DelVitt T. Puckett for the onunission.

S ~~h & Donnelly, of 'Washington, D. C., and 11!1'. /. William ~ of Baltimore, Md., for respondent.

1 Cou d nt 2 ot the complaint, under the National Industrial Recovery Act, dlsmlsse · 542 FEDERAL TRADE COl\ll\USSION DECISIONS Complaint 23F. T.C.

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 Acme Distilleries, Inc., a corporation, hereinafter referred to as respondent, has been and is using unfair methods of competition in commerce, as "commerce" is defined in said act, and in violation of the Act of Congress approved June 16, 1933, known as the National Industrial Recovery Act, and it appearing to the said Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues this its ~om plaint, stating its charges in that respect as follows: Count 1 P .ARAGRAPH 1. Respondent is a corporation organized, existing, and doing business under and by virtue of the laws of the State of Maryland, with its principal office and place of business in the city of Baltimore in said State. It is now and since its organization in 1934 has been engaged in the business of rectifying, blending, and bottling whiskies, brandies, rum, gin, and other spirituous beverages and in the sale thereof between and among the various States of the United States and in the District of Columbia. In the course and conduct of its business it causes its said products when sold by it to be transported from its place of business in the city of Baltimore aforesaid. to the purchasers thereof consisting of \vholesalers and retailers, some located in the State of Maryland and others located. in various other States of the United States and in the District of Columbia. In the course !l.nd conduct of its business, respondent is now and at all times since its organization has been in substantial competition with other corporations and with individuals, partnerships, and firms engaged in the manufacture by distillation of whiskies, brandies, rum, gin, and other spirituous beverages and in the sale thereof between and among the various States of the United States and. in the District of Columbia; and in the course and conduct of its business as aforesaid, respondent is and has been since its organization in substantial competition with other corporations and with individuals, firms, and partnerships engaged. in the business of rectifying-, blending, and bottling whiskies, brandies, rum, gin, and other spirituous beverages and in the sale thereof between and among the various States of the United States and in the District of Columbia.

PAR. 2. For a long period of time the word "distilleries" when u:;ed in connection with the liquor industry and with the products of such industry has had and still has a definite significance and meaning to ACME DISTILLERIES, INC, 543 Ml Complaint the minds of the wholesalers and retailers in EJuch industry and to the ultimate purchasing public, to wit, a place or places where such liquors are manufactured by the process of distillation; and a substantial portion of the purchasing public prefer to buy spirituous liquors bottled by actual distillers and manufacturers thereof. PAn. 3. In the course and conduct of its business as aforesaid, by the Use of the word "distilleries" in its corporate name, printed on its stationery and on the labels attached to the bottles in which it sells and ships its said products and in various other ways, respondent represents to its customers and furnishes them with the means of representing to their vendees, both retailers and the ultimate consuming public, that the said whiskies, brandies, rum, and gin, and other spirituous beverages therein contained were by it manufactured through the Process of distillation, when, as a matter of fact, the respondent is not a distiller does not distill the said whiskies or other spirituous liquors by it so b~ttled, labeled, sold, and transported, and docs not own, operate, or control a place or places where such beverages are manufactured by the process of distillation.

PAR. 4. There are among the competitors of respondent engaged in the sale of spirituous liquors as mentioned in paragraph 1 hereof, corporations, firms, partnerships, and individuals who manufacture and distill whiskies, brandies, rum, gin, and other spirituous beverages sold by them and who ·truthfully use the words "distillery," "d" . t Ishlleries" "distillers" or "distillin()"" as a l)art of their corpora e na:rnes and on' their stationery' and on theo labels of the bottles in whic~1• they sell and ship such products. There are also among such competitors, corporations, firms, partnerships, and individuals engaged in the b~siness of rectifying, blendin()" and bottlin()" whiskies, brandies, rum, fi'IU d . . ol o d "J" l::>. ' an other sp1ntuous bevera<Yes who do not use the wor s ISblleries," "distillery" "distillin()"";, or "distillers" as a part of their cor ' o' 1 d t 0 Porate names nor on their stationery nor on the labels attac 1e the bottles in which they sell and ship their said products. PAR. 5. The representation by respondent as set forth in paragraph 3 ~ereof, is calculated to and has a capacity and tendency to and d~es llllslead and deceive dealers and the purchasing public into the behef that the whiskies brandies rum gin and other spirituous beverages Sold b ' ' ' ' · d Y the respondent are manufactured and distilled by it and m uce dealers. and the purchasing public, acting in such belief, to purcha~e ~he Wlnskies, brandies rum gin and other spiriluous beverages rrctied, blended, and bottled the 'respondent thereby diverting trade to b; respondent from its competitors who do not by their corporate name ~: 1~ any other manner misrepresent that they are manufacturers by lStillation of whiskies, brandies, gin, rnm, and other spirituous bev· Complaint 23F.T.O.

erages, and thereby respondent does substantial injury to substantial competition in interstate commerce.

PAR. 6. The acts and things above alleged to have been done and the false representations alleged to have been made by respondent are to the prejudice of the publlc and the competitors of respondent 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. Count~ PARAGRAPH 1. Respondent is a corporation organized, existing, and doing business under and by virtue of the laws of the State of :Maryland, with its principal office and place of business in the city of Dal· timon~ in said State. It is now and since its organization in 1934 has been engaged in the business of rectifying, blending, and bottling whiskies, brandies, rum, gin, and other spirituous beverages and in the sale thereof between and among the various States of the United States and in the District of Columbia. In the course and conduct of its business it causes its said products when sold by it to be transported from its place of business in the city of Baltimore aforesaid to the purchasers thereof consisting of wholesalers and retailers, some located in the State of :Maryland and others located in various other States of the United States and in the District of Columbia. In the course and conduct of its business, respondent is now and at all times since its organization has been in substantial competition with other corporations and with individuals, partnerships, and firms engaged in the manufacture by distillation of whiskies, brandies, rum, gin, and other spirituous beverages and in the sale thereof between and among the various Statps of the United States and in the District of Colum· bia; nnd in the course and conduct of its business as aforesaid, respondent is and has been since its organization in substantial com· petition with other corporations and with individuals, firms, and partnerships engaged in the business of rectifying, blending, and bottling whiskies, brandies, rum, gin, and other spirituous beverages and in the sale thereof between and among the various States of the United States and in the District of Columbia. PAR. 2. As grounds for this paragraph of this complaint, the Federal Trarle Commission relies upon the matters and things set out in paragraph 2 of count 1 of this complaint to the same extent as though the allegations thereof were set out at length herein and said paragraph 2 of count 1 of this complaint is incorporated herein by ACl\IE DISTILLERIES, INC. 545 Complaint reference and adopted as the allegations of this paragraph of this count and is hereby charged as fully and as completely as though the several averments of said paragraph 2 of said count 1 were repeated Verbatim.

PAn. 3. As grounds for this paragraph of this complaint, the Federal Trade Commission relies upon the matters and things set out in paragraph 3 of count 1 of this complaint to the same extent as though the allegations thereof were set out at length herein and said paragraph 3 of count 1 of this complaint is incorporated herein by reference and adopted as the allegations of this paragraph of this count and is hereby charged as fully and as completely as though the several averments of said paragraph 3 of said count 1 were re- Peated verbatim.

PAn. 4. As grounds for this paragraph of this complaint, the ~ederal Trade Commission relies upon the matters and things set out In Paragraph 4 of count 1 of this complaint to the same extent as though the allegations thereof were set out at length herein and said Paragraph 4 of count 1 of this complaint is incorporated herein by reference and adopted as the allegations of this paragraph of this count and is hereby charged as fully and as completely as though the several averments of said pararrraph 4 of said count 1 were repeated Verbatim. "" PAn. 5. As grounds for this paragraph of this complaint, the Fed- ~rai Trade Commission relies upon the matters and things set out .~~ Paragraph 5 of count 1 of this complaint to the same extent ~s ongh the allegations thereof were set out at lenrrth herein and said baragraph 5 of count 1 of this compla~nt is i~c~rporated herein Y. reference and adopted as the allerratwns of tlns paragraph of th ~ 1::> tl count and is hereby charged as fully and as completely as lough the several averments of said pararrraph 5 of said count 1 were reh "" l'eated verbatim. n PAn. 6. Under and pursuant to Title I of the National Industrial p eco.very Act, approved June 16, 1933 ( 48 Stat. 195 C. 90) the 26resldent of the United States, by Executive Order No. 6182, of June 19, l933, as supplemented by Executive Order No. 6207, of July 21, t 33, and Executive Order No. 6345 of October 20, 1933, delegated 0 " II. A. \Vallace as Secretary of Agriculture, certain of the powers e~ed in the President of the United States by the aforesaid Act .. S nder and pursuant to the delegation of such powers, the said !<:ecreta.ry of Agriculture pursuant to Section 3 (d) of the act and C:x:ecutive orders under the act upon his own motion presented a 1 odde of Fair Competition fo~ the Distilled Spirits Rectifiying ' n nstry a ft er d ue notice· and opportumty· for hearmg· ·m connec t1'on 546 FEDERAL TRADE COl\IMISSION DECISIONS Complaint 23F.T.C.

therewith had been afforded interested parties, incluuing respondent, in accordance with Title I of the N a tiona! Industrial Recovery Act and applicable regulations issued. thereunder, to the President of the United States who approved the same on the 9th day of December 1933, thereby constituting the said code a Code of Fair Competition within the meaning of the said National Industrial Recovery Act, for the regulation of the aforesaid industry. In his written report to the President, the said Secretary of Agriculture made, among others, the following findings with respect to the said code in the following words, to wit: That said Code will tend to etrectuate the declared policy of Title I of the National Industrial Recovery Act as set forth in Section 1 of said Act in that the terms and provisions of such Code tend: (a) to remove obstructions to the free flow of foreign commel·ce, which tend to diminish the amount thereof i (b) to provide for the general welfare by promoting the organization of industry for the purposes of cooperative action among trade groups; (c) to eliminate unfair competitive practices; (d) to promote the fullest possible utilization of the present productive capacity of industries; (e) to avoid undue restriction of production (except as may be temporarily required); (f) to increase the consumption of industrial and agricultural products bY increasing purchasing power; and (g) otherwise to rehabilitate industry. Dy his approval of the said code on December 9, Ul33, the Presi· dent of the United States, pursuant to the authority vested in hiJll by Title I of the National Industrial Recovery Act aforesaid, made and issued his certain written Executive order, wherein he adopted and approved. the report, recommendations, and findings of the said Secretary of Agriculture, and oruered that the said Code of Fait Competition be, and the same thereby was approved, and by virtue nf the National Industrial Recovery Act aforesaid, the following provision of Article V of said code became and still is one of the standards of fair competition for the Distilled Spirits Rectifying Industry and is binding upon every member of said industry and this respondent:

The following prnctlces constitute unfnlr methods of competition and sbnll not he engaged in by nny member of the industry: SECTIOS 1. False Adl•ertising.-To publish or disseminate in any manner any false adn~rtlsrment of ony rPCtifled product. Any advertist'ment shall be deemed to be false if it is untrue in any pnrtlcular, or if directly or by ambiguity• omission, or inference it tends to create a mlslcRding impression. PAR. 7. The use by respondent of the word "distilleries" in its corporate name, printed upon its stationery and on the labels at· tached to the bottles in which it sells and ships such products and in various other ways, constitutes false ad,·ertising within the meand ing of the aforesaid provision of said Article V and tends to an does create the misleading impression that respondent is engaged ACME DISTILLERIES, INC. 547 541 Findings in the business of distilling spirits, and that the spirituous ben•rages by it :>o s::->lcl and transported have been bottled at a distillery by the original distillers thereof, all contrary to the provisions of Section 1, Article V, of the code aforesaid.

PAR. 8. The above alleged methods, acts, and practices of the respondent are and have been in violation of the standard of fair competition for the Distilled Spirits Rectifying Industry of the United States. Such violation of such standard in the aforesaid transactions in interstate commerce and other transactions which affect interstate commerce in the manner set forth in paragraph 5 of count 1 hereof, are in violation of Section 3 of Title I of the N ationa! Industrial Recovery Act and they are unfair methods of competition in commerce within the meanin()' of the Federal Trade Commission Act, as amended. "' REPORT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of an Act of Conm-ess approved Septemher 26, 1914, entitled "An Act to create a Fed:ral Trade Commission, to define its powers and duties, and for other purposes," the Federal ::rrade Commission, on April 22, 1935, issued and served its complaint ~n this proceeding upon respondent, Acme Distilleries, Inc., charging It. Wit.h the use of unfair methods of competition in commerce ~n VIolation of the provisions of said act. After the issuance of said complaint, and the £ling of respondent's answer thereto, testimo.ny and other evidence in support of the allegations of said complamt ~·ere introduced by PGad D. Morehouse, attorney for the Commis- Sion, before J olm 1V. Dennett, an examiner of the Commission there- !afore duly designated by it, and in opposition to the allegations of he complaint by Horace J. Donnelly, Jr., attorney for the respond· (lnt; and said testimony and other evidence were duly recorded and filed in the office of the Commission. Thereafter, the proceeding regularly came on for final hearinoo before the Commission on the sa'd~ complaint, the answer thereto,"' testimony, and other ev1'd ence,1 )rief in support of the complaint (brief in opposition thereto and ~roal a~g~ments ?f counsel af~resaid having been wai;ed); and the mmission havmoo duly considered the same and bemg now fully ad · c ' · t VIsed in the premises finds that this proceedinoo is in the mteres 0 f h ' "' . t e public, and makes this its findinos ag to the facts and Its conclu · d "' 81011 ra wn therefrom : FINDINGS AS TO THE FACTS P ARAcitAru 1 Respondent corporation was orooanized in 1934, andstill · · "' r 1 d e:usts under and by virtue of the laws of the State of~ aryan ' 781J3:Jm-3fl-vol. 23-37 FEDERAL TUADE COMMISSION DECISIONS548 Findings 23F.T.C.

with its principal office and place of business at 723-725 West Pratt Street, in the city of Baltimore, in said State. From the time of its organization as aforesaid until about July 1, 1935, it was engaged under a basic permit, No. R-462, from the United States, in thebusiness of rectifying, blending, and bottling whiskies, brandies, rumt gin, and other spirituous beverages and in the sale thereof between and among the various States of the United States and in the Dis· trict of Columbia. In the course and conduct of its business it caused its said products when sold by it to be transported from its. place of business in the city of Baltimore aforesaid to the purchasers there-.,.1 consisting of wholesalers and retailers, some located in the State of Maryland and others located in various other States of the United States and in the District of Columbia. In the course and conduct of its business, respondent was, during said period of timer in substantial competition with other corporations and with indi· viduals, partnerships, and firms engaged in the manufacture by dis· tillation of whiskies, brandies, rum, gin, and other spirituous bever· ages and in the sale thereof between and among the various States of the United States and in the District of Columbia; and in the course and conduct of its business as aforesaid, respondent was likewise in substantial competition with other corporations and with individualsr firms, and partnerships engaged in the business of rectifying, blend· ing, and bottling whiskies, brandies, rum, gin, and other spirituous beverages and in the sale thereof between and among the various States of the United States and in the District of Columbia. Later, respondent's business was placed in the hands of receivers by the Circuit Court of Baltimore City h involuntary receivership proceedings (Central lVlwlesale Company, Inc. v. Acme Distilleriesr Inc., Docket 1935-A, Folio 308), and late in November 1935, all of its assets were sold and disposed of by auction except that no sale was made of the name "Acme Distilleries, Inc." nor of the right to use the same, unless and insofar as such right may be incident to a sale made by said receivers to the Overbrook Company, another Balti· more rectifier of respondent's unused labels bearing its corporate name. At the time of the hearings it was not known by the receivers whether the respondent's corporate existence would or would not be dissolved.

PAR. 2. For a long period of time the word "distilleries" when used in connection with the liquor industry and with the products of such industry has had and still has a definite significance and meaning to the minds of the wholesalers and retailers in such industry and to the ultimate purchasing public, to wit: a place or places where such liquors are manufactured by the process of distillation. There is a ACME DISTILLERIES, INC. 549 541 Findings sharp distinction at present in the trade between the processes of distilling and of rectifying. Distilling is confined to the manufacture of alcoholic spirits by continuous process from grain mash to cistern room in the case of whiskies. Rectifying deals wholly with s~b~equent modification of the product, not involving the process of distillation, and a substantial portion of the purchasing public prefer to buy spirituous liquors bottled by actual distillers and manufacturers thereof, usually for the reason they feel that the goods put out directly by the manufacturer are likely to be more trustworthy and because they feel that the manufacturer has more at stake than any middleman.

PAn. 3. Rectifying in the distilled spirits rectifying industry means the mixing of whiskies of different ages or types or the mixing of oth~r ingredients with whiskies, but reducing proof of whiskey .by addmg_ water is not rectifying. Rectifiers also blend whiskies with neutral spirits (grain alcohol).

A distiller, in the sense ordinarily understood by the liquor industry, is one who prepares distilled spirits by a process of original a.nd continuous distillation from mash, wort, or wash, through continuous closed pipes and vessels until the manufacture thereof is complete. :Many distillers operate a separate establishment 600 feet or more away from their distillery, known as a rectifying plant, Wh · f e:em they operate in the same manner as described above, or a r:cbfiet-sometimes exclusively with spirits of their own distilla- ~Ion and sometimes with spirits purchased from other distillers or both. Some distilleries have a tax-paid bottlin()' room on the distillery t~nded premises wherein their distilled spirits"'are bottled stra~ght as come from the still, or in a bonded warehouse after agmg, or /y a ter reduction of proof. Any rectifying by a distiller, however, ~~lst be done in his rectifying plant under his rectifier's permit. 0? ~ . bottled liquors, whether bottled at the distillery or at any recti- Ylllg- plant, appear the words "Bottled" or "Blended" (as the case !Uay ?e) "by the Company." If the distilled spirits therein c~nt~Ined are bottled by a distiller either in his distillery or are spirits 0 hrs own distillation bottled in his rectifying plant, the distiller may ~~d.does put "Distilled and Bottled by-- Company." If, in the fi 1~ 1 ller's rectifying plant, other spirits have been blended or rectihieown' he( puts "Blended· and Bottled by -- Company." Finally,· ·of usual 1ly m the bottom) of E'ach bottle is a symbol, cons1stmg a letter followed by a number identifyin()' the bottler, viz, a "D"f or a d' · ' "' · 'dle ' rstillery and "R" for a rectifier, the number followmg sal ,,~ter corresponding with the distiller's or rectifier's permit. Thus -4C2" designates this respondent. A distiller who also operates FEDERAL TRADE COJ\IMISSION DECISIONS550 Findings 23F.'r.c.

a rectifying plant, having both kinds of permits, may use either symbol depending upon whether the liquor contained in the bottle was produced and bottled under his distiller's or his rectifier's permit. Knowledge of these details is not widespread among the retail trade and is very limited to the general public. All whiskies. whether emanating from distilleries or rectifiers, are generally in the trade conceded to be "distilled products."

It is not possible to determine from the presence of the phrase "Blended and Bottled by" alone or the phrase "llottled by" alone~ on the label, whether the package was bottled by a rectifier who is a dis· tiller or by a rectifier who is not a distiller. This respondent purchased its distilled spirits requirements fron other distillers, rectified some and bottled some without rectification, and sold it in interstate commerce.

Like many other rectifiers, this respondent bottled certain brands of liquors for customers, placing the customer's label on the whiskies or liquors at the customer's request. These were known as "private brand labels," and did not contain its corporate name. PAR. 4. In the course and conduct of its business as aforesaid, by the use of the word "distilleries" in its corporate name, printed on its stationery and on the labels attached to the bottles in which it wld and shipped its said products and in various other ways, respondent represented to its customers and furnished them with the means of representing to their vendees, both retailers and the ultimate con· suming public, that the said whiskies, brandies, rum, and gin, and other spirituous beverages therein contained were by it manufactured through the process of distillation, when, as a matter of fact, the respondent was not a distiller, did not distill the said whiskies or other spirituous liquors by it so bottled, labeled, sold, and transported, and did not own, operate, or control a place or places where such beverages are manufactured by the process of distillation. PAR. 5. There were and still are among the competitors of respond· ent engaged in the sale of spirituous liquors as mentioned in para· graph 1 hereof, corporations, firms, partnerships, and individuals who manufacture and distill whiskies, brandies, rum, gin, and other' spirituous beverages, sold by them and who truthfully use the ,.,·ords "distillery," "distilleries," "distillers," or "distilling" as a part of theil' corporate names and on their stationery and on the labels of the bottles in which they sell and ship such products. There were and still are among such competitors, corporations, firms, partnerships, and indi· viduals engaged in the business of rectifying, blending, and bottling whiskies, brandies, rum, gin, and other spirituous beverages who do not now and who did not during the period here involved, use the words ACl\IE DISTILLERIES, INC. 551 541 Order "distilleries," "distillery," "distilling," or "distillers" as a part of their corporate names nor on their stationary nor on the labels attached to ,, the bottles in which they sell and ship their said products. 1:I PAR. 6. The representation by respondent as set forth in paragraph 3 ?ereof, was calculated to and had a capacity and tendency to and did lllislead and deceive dealers and the purchasing public into the belief that the whiskies, brandies, rum, gin, and other spirituous beverages sold by the respondent were manufactured and distilled by it and had a t~ndency to induce dealers and the purchasing public, acting in. s~ch hebe£, to purchase the whiskies, brandies, rum, gin, and other spintu- 0~1S beverages rectified, blended, and bottled by the respondent thereby div~rting trade to respondent from its competitors who did not by their trade or corporate names or in any other manner misrepresent. that they were manufacturers by distillation of whiskies: brandies, gin, ~um, .and other spirituous beverages, and thereby respondent did substantial injury to substantial competition in interstate conunert:>c. Nothing appears to show that respondent's corporate existence will not be continued or that in the future it mirrht not, unless prohibited therefrom, again engage in the distilled s;irits rectifying business, an<} in connection therewith resume the acts and practices above described.

CONCLt.'SION trth~ aroresaid acts and practices of the respondent, Acme Dis- I lenes, Inc., were to the prejudice of the public and of respondent's competitors, and constitute unfair methods of competition in com- ~res s, approved September 26, 1914,~ entitled "An Act to create afl11erce, within the intent and meanin<Y of Section 5 of an Act of Con· ederal Trade Commission to define its powers and duties, and for other purposes." ' ORDER TO CEASE AND DESIST 111 Isslon.TI~is proceedingupon the complainthaving beenof theheardCommission,by the Federalthe answerTrade ofCom·re· ~Pondent, testimony and other evidence taken before John "\V. Benbet~, a.n examiner of the Commission theretofore duly designated s~·lt' In support of the alle<Yations of said complaint and in oppo- 1 Ion thereto, brief filed her~in in support of said complaint (brief l. 11 op · · I Clb.' . position thereto and oral arguments by counsel for t 1e omlb.~ss~on and for the respondent having been waived), and the Com· ~SSion having made its findin<YS as to facts and its conclusion thats:tid r ~ap respondent has violated the provisions of an Act of Congress, Proved September 26 1914 entitled "An Act to create a Federal ' ' ' 552 FEDERAL TRADE COl\Il\IISSION DECISIONS Ordnr 23 F. T.C.- Trade Commission, to define its powers and duties, and for other purposes."

It is ordered, That the respondent, Acme Distilleries, Inc., its officers, representatives, agents, and employees in connection with the offering for sale, sale, and distribution of whiskies, brandies, rum, gin, and other spirituous beverages in interstate commerce or in the District of Columbia, do forthwith cease and desist from representing through the use of the word "Distilleries" in its corporate name, on its stationery, advertising, or on the labels attached to the bottles in which it sells and ships its said products or in any other way by word or words of like import from representing (a) that it is a distiller of whiskies, brandies, rum, gin, or other spirituous beverages; or (b) that the said whiskies, brandies, rum, gin, or other spirituous beverages were by it manufactured through the process of distillation; or (c) that it owns, operates, or controls a place or places where such products are manufactured by the process of distillation, unless and until the said respondent shall own, operate, or control a place or places ·where such products are by it manufactured through a process of original and continuous distillation through closed pipes and vessels until the manufacture thereof is complete. It is further ordered, That the said complaint be and the same is hereby dismissed as to count 2 thereof.

It is further ordered, That the respondent shall, within 30 days after service upon it of this order, file with the Commission, a report in writing setting forth in detail the manner and form in which it has complied with this order.

W, A. GIBBS & SON, INC. 553 Complaint