French, Eustace N

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IN THE MA'ITER OF ZION HOLY SPIRITUAL MISSION, AND EUSTACE N. FRENCH, DOING BUSINESS THROUGH ZION HOLY .SPIRITUAL MISSION AND UNDER TRADE NAME OF ZION HOLY SPIRITUAL MISSION LABORATORIES 'COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 2963. Complaint, Oct. 31, 1936-Decision, Apr. 21, 1931 Where a corporatlon and an individual, who dld lmsiness through it and under a trade name Including corporate name of the other and word "Laboratories," engaged In sale of medicines under trade name "Bry-0-Lyn"- Represented, In labels upon their said products and other advertising matter published and distributed In the various States, that they operated a laboratory or laboratories !n which the medicines offered for sale and sold by them were manufactured, and that said medicines were made by them, facts being that they did not own any such laboratory or laboratories or any Interest ln any manufacturing establishment from which their products were obtained, but medicines offered and sold by them under the aforesaid trade name were made and compounded by pharmaceutical laboratories ln which they had no interest 'whatsoever, and were sold to them in regular course of trade;

With tendency and capacity to deceive and mislead substantial portions of purchasing public Into the erroneous belief that such representations were true, and with result that consuming public, as a direct consequence of 1:1uch mistaken and erroneous beliefs, thus engendered, was persuaded to purchase n substantial volume of Its said products, and trade was unfairly diverted to them from competitors engaged In selling commodities of the same kind and nature, and who truthfully advertise and represent the character, quality and source of their said products; to the substantial injury of competition in commerce :

Held, That such acts and practices were to the prejudice of the public and competitors and constituted unfair methods of competition. Before Mr. Roberts. Hall, trial examiner.

Mr. John Darsey for the Commission.

l.!r. Blaine G. Alston of Ellis & 'Vestbrooks, of Chicago, Ill., for respondents.

Complaint Pursuant to the provisions of an Act of Congress, approved Sep. t~mber 26, 1914, entitled "An Act to create a Federal Trade Commis- Sion, to define its powers and duties, and for other purposes," the Federal Trade Commission, having reason to believe that Zion Holy ~pirituall\Iission, an Illinois corporation, and Eustace N. French, an lndividual, doing business through the Zion Holy Spiritual Mission Complaint 24F.T.C.

and under the trade name of Zion Holy Spiritual Mission Labora· tories, Chicago, Ill., hereinafter referred to as respondents, have been and are using unfair methods of competition in commerce as "com· merce" is defined in 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 complaint stating its charges in that respect as follows:

PAnAcRArH 1. The respondents, Zion Holy Spiritual Mission, a cor· poration organized and existing by virtue of the laws of the State of Illinois, and Eustace N. French, an individual doing business through the Zion Holy Spiritual ]\fission and under the trade name of Zion Holy Mission Laboratories, and having a place of business at 333S South State Street, Chicago, Ill., are now, and for several years last past have been, engaged in the sale and distrilmtion of correspondence courses in spiritual development, magic and mysticism, success seals, good luck coins, talismen, books, and medicines,·in commerce between and among the various States of the United States, and in the course of sale and distribution of the aforesaid articles cause the same to be transported into and through the various States of the United States. PAR. 2. The respondents, in the sale and distribution of the afore· said products, have been and are in competition with other individuals, firms, partnerships, and corporations engaged in the sale and distribution, in interstate commerce, of similar and like products and articles and of products and articles to be used for the same and similar purposes.

PAR. 3. In the course of sale of the aforesaid articles and products, the respondents cause statements and representations to be made in advertisements, pamphlets, circulars, and other printed matter, which said advertisements or printed matter are published or distributed in the various States of the United States, to the following effect, gist, or meaning:

1. That respondent, Eustace N. French, is an ordained minister of the Spiritualist church;

2. That respondent, Eustace N. French, is a graduate of a Theologi· cal Seminary of the Spiritualist Church;

3. That respondent, Eustace N. French, has received a degree or degrees from the Theological Seminary entitling him to use the titles "Doctor" or "Reverend Doctor," as a prefix to his name or signature, or to use the initials "D. D." or "D. D." after his name or signature; 4. That respondents maintain and operate a laboratory or labora· tories in which the aforesaid products or articles are manufactured, produced, or developed;

ZION HOLY SPIRITUAL l\IISSION1 ETC. 1040 1047 Complaint 5. That the respondents' correspondence courses will give complete instructions in Magical Spiritual Arts and Science and are complet~ courses in religious, educational, and spiritual development based on the Bible;

6. That respondents' courses will equip students to give readings, healings, blessings, and spiritual advice, and will enable its students to :make and use spiritual lucky goods, such as holy oils, incense, talismen, seals, herbs, remedies, etc.;

7. That respondents will give legal protection to graduates in these courses to work in any State they desire and will make its students independent by giving them a life trade or business; 8. That students of respondents' courses will begin making money immediately upon beginning the course and will earn many times th~ price of the course before they have finished the same; 9. That respondents' correspondence courses will enable one to have good friends, make money, and be wise;

10. That respondents' "success seals" will enable one to obtain what he wants, to be successful in love and marriage, to win in all games, to conquer enemies, and to have power and influence over all things; 11. That respondents' "success s_eals" are products of the Orient; 12. That respondents' "success seals" are reproduced on genuine imported parchment paper made from the skin of Iambs and are based on the Gth and 7th Books of Moses:

13. That respondents' "Book of Power" will unfold the mystic records of all the secrets of the ages and enable one to know the particular day and hour to do anything he desires, gain control of and bend the Will of enemies, regain lost love, bring happiness to broken homes, regain youth and vigor, understand motives, of people around him and determine machinations of their minds, to choose words according to ancient holy methods of the Old Cuthian and Chaldean forms, to chant one's desires in the silent tongue so that one may be reached anywhere, to make people walk in their sleep and do one's bidding; 14. 'I11at respondents are the first to reveal the secrets of the "Book of Powers"; that the regular price of the said "Book of Power" is $2.00, but that the special coupon accompanying said representation will entitle one to said book for an additional dollar; 15. That respondents' book "The Truth About Candles" discloses the secrets of the candle, other startling facts, and will make one master of his own destiny and make dreams come true; that the regular price of respondents' book "The Truth About Candles" is $3.00, but that the special coupon accompanying said representation will entitle one to said book for an additional $2.00;

1050 FEDERAL TRADE COMl\HSSION DECISIONS Complaint 24F.T.C.

16. That knowledge gained from respondents' book "How to Make Your Dreams Come True" will make dreams come true and enable one to dream winning numbers, etc.; that the regular price of respondents' book "How to Make Your Dreams Come True" is $2.00, but that the special coupon accompanying said representation will entitle one to said book for an additional dollar;

17. That respondents' publication "The Ten Lost Books of Moses" is the key to knowledge and will disclose "The Mystery of Sinai- Things Never Told Before" and is the Fountain of Wisdom and the Way to All Power;

18. That respondents' Bry-0-Lyn is an effective remedy for chronic constipation and indigestion and is a product of the laboratory or laboratories of respondents.

PAR. 4. All of the representations and statements made by the respondents in the manner indicated in paragraph 3 hereof are false and untrue and have no foundation in fact, Respondent Eustace. N. French is not an ordained minister of the Spiritualist Church, is not a graduate of a Theological Seminary of saitl Church, and has received no degree or uPgrecs from any Theological Seminary entitling him to use the titles hereinaboye iwlicatetl. l~Pspomlents do not maintain or operate any laborato1·y in whirh any of their products are manufactured or produced. Respondents' various courses of instruction and books do not give complete instructions in magical spiritual arts, are not complete courses in educational, religious and spiritual development, and do not equip the purchasers thereof with the powers to accomplish the many results claimed from a purchase of said courses of instruction or books. Re~pondents' "Success s~als" will not accomplish the results claimell and are. not products of the Orient. The knowledg·c gained from a study of the various books sold by the respondents will not enable the purchasers thereof to acquire the powers claimed and the regular price of said books is not as claimed by the respondents. The regular price of mid books is, in truth and in fact, the price at which they are sold under the respondents' so-called "special sale price." Respondents' "Dry-0-Lyn" is not an effective remedy for chronic constipation and · jndigestion and is not made in laboratories of respondents, but is, in truth and in fact, made and compounded by pharmaceutical laboratories and sold to the respondents in the regular course of trade. PAR. 5. Each and aU of the false and misleading stateme>nts antl representations made by the respondents. as hereinabove set out, in their advertising in newspapers and otherwise, in offering for sale and in selling their several products was, and is calculated to, and ZION HOLY SPIRITUAL 1\IISSION, ETC. 1051 1047 Findings had, and now has, the tendency and capacity to mislead and deceive a substantial portion of the purchasing public into the erroneous belief that said representations are true. As a direct consequence of the mistaken and erroneous beliefs induced, as aforesaid, the consuming public has purchased a substantial volume of respondents' several products with the result that trade has been unfairly diverted to the respondents from competitors engaged in selling products and articles of the same kind and nature in commerce, as hereinabove set out, aml who truthfully ad,·ertise and represent the character and quality of their said products. As a result thereof, substantial injury has been, and is now being done by respondents to competition in commerce,· as hereinabove set out.

PAR. G. The aforementioned methods, acts and practices of respond- E:>nts are all to the prejudice. of the public and respondents' competitors as hereinabove alleged. Said methods, acts, and practices 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 Septrmher 2G, 1914. REPORT, FINDINGS AS TO THE FACTS, AND ORDER 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, on October 31, 193G, issued and served its complaint inl this proceeding upon respondents, Zion Holy Spiritual .Mission and Eustace N. French, doing business thro~1gh the Zion Holy Spiritual Mission and under the trade name, Zion Holy Spiritual Mission Laboratories, charging them with the use of unfair tnethods of competition in commerce in violation of the provisions of said act. After the issuance of said complaint, and the filing of respondents' answers thereto, testimony and other evidence in sup- Port of the allegations of said complaint were introduced by John Darsey, attorney for the Commission, before Robert S. Hall, an e:examiner of the Commission, theretofore duly designated by it, and in opposition to the allegations of the complaint by Blaine G. Alston, attorney for the respondents; 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 hearing before the Commission on the said complaint, the answer thereto, testimony and other evidence, and briefs in support of the complaint and in opposi- Findings 24F.T.O.

tion thereto; and the Commission having duly considered the same, and being now fully advised in the premises, finds that this proceeding is in the interest of the public, and makes this its findings as to the facts and conclusion drawn therefrom:

FINDINGS AS TO THE FACTS PARAGRAPH 1. The respondent, Zion Holy Spiritual Mission, is a <:orporation organized and existing by virtue of the laws of the State of Illinois. The respondent, Eustace N. French, is an individual doing business through the Zion Holy Spiritual Mission and under the trade name of Zion Holy Spiritual Mission Laboratories. All of the aforesaid respondents have their principal place of business lo· cated at 3338 South State Street, Chicago, Ill., and are now and for several years last past have been engaged in the sale of medicines under the trade name, "llRY-0-LYN." The respondents cause their medicines when sold to be transported from their place of business in the State of Illinois to purchasers thereof located in the various States of the United States other than the State of Illinois. PAR. 2. There are other individuals, firms, partnerships, and cor· porations engaged in the sale and distribution in commerce among and between the various States of the United States of similar and like medicines, or medicines to be used for the same and similar pur· poses, and with such individuals, firms, partnerships, and corpora· tions the respondents have been and are in competition in such commerce.

PAR. 3. In the course of sale of the aforesaid products, the respond· ents cause statements and representations to be made upon labels placed on products and other advertising matter which are published and distributed in the various States of the United States to the effect that the respondents operate a laboratory or laboratories in which the medicines offered for sale and sold are manufactured, and that the medicines are manufactured by respondents. PAR. 4. The respondents do not own, operate, or maintain a labora· tory or laboratories in which the medicines are manufactured nor do they own any interest in any manufacturing establishment frolll which the products are obtained. The medicines offered for sale and sold by respondents under the trade name, "llRY-0-LYN", are made and compounded by pharmaceutical laboratories in which the re· spondents have no interest whatsoever and are sold to the respondents in the regular course of trade.

The representations and statements made by respondents to the effect and meaning of those set forth in paragraph 3 above are cal· ZION HOLY SPIRITUAL MISSION, ETC. 1053 1047 Order culated to and have the tendency and capacity to deceive and mislead substantial portions of the purchasing public into the erroneous belief that such representations are true. As a direct consequence of such mistaken and erroneous beliefs so induced, the consuming public is persuaded to purchase a substantial volume of respondents' products With the attendant result that trade is unfairly diverted to respondents from competitors engaged in selling commodities of the same kind and nature in commerce as hereinbefore set out, who truthfully advertise and represent the character, quality and source of their said Products. Substantial injury is thereby done by respondents to com- Petition in commerce as hereinabove set forth. CONCLUSION The aforesaid acts and practices of the respondents, Zion Holy Spiritual Mission and Eustace N. French, doing business under the trade name, Zion Holy Spiritual Mission Laboratories, are to the Prejudice of the public and of respondents' competitors, and constitute unfair methods of competition in 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 TO CEASE AND DESIST . This proceeding having been heard by the Federal Trade Commis- Sion upon the complaint of the Commission, the answers of respondents, testimony and other evidence taken before Robert S. Hall, an examiner of the Commission theretofore duly designated by it, in ~:support of the allegations of said complaint and in opposition there- ~o, and briefs filed herein, and the Commission having made its findlugs as to the facts and its conclusion that said respondents have ''iolated 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." It is ordered, That the respondents, Zion Holy Spiritual Mission, a <:orporation, and its officers, and Eustace N. French, doing business tl~rough the Zion Holy Spiritual Mission and under the trade name, Zion Holy Spiritual Mission Laboratories, or under any other tradt> llurne, their respective representatives, agents, and employees, in connection with the offering for sale, sale and distribution of their tnedicine products in interstate commerce or in the District of Columbia, do forthwith cease and desist from: 146756m---39-\·ol. 2-1--G!l Order 24F.T.C.

Representing, through the use of the words "Laboratories'' and "Manufacturers" or any other word or words' of similar· import and effect, alone or in conjunction with other words, or through any other means, device, or in any manner, that they compound, make, or manu· facture said medicine products until and unless they actually own and operate or directly and absolutely control a laboratory or plant wherein such products are made.

It is further ordered, That the respondents shall, within 60 days after service upon them 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 this order.

• OLSON RUG CO. 1055 Syllabus