National Foods, Inc

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IN THE MATTER OF NATIONAL KREAM COMPANY, INC., AND NATIONAL FOODS, INC.

COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. ti OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 290fl. Complaint, Sept. 8, 1936 1-Decislon, June 11, 1937 'Where a corporation and Its subsidiary distributing ngency engRgC'd, as cuse might be, In manufacture and sale of jams, pre~erves, and other food.l products, In substantial competition with those od'erlng or selling similar products ln like commerce, and Including therein those engaged ln manufacture of jams and preserves In accordance with conception thereof entertained by trade and consuming public, and who truthfully descri!Je and represent their products, and Including also preserve manufacturers making products similar to those made by said corpomtlon, as hereinbelow set forth, and who label, describe, and sell the E~ame as imitation preserves, In accordance with universal practice among other manufacturers- Otrered and sold, to retailers, chain stores, and others, certain imitu tlon preserves and imitation jums whl<:h so ~dmuluted In appearunce the genuine that the diiTE'rence In fruit content conhl not he di>werne<l hy vlsnnl lnspf'C· tlon, in jars or containers la!Jeled as "Pure Preserves," together with name of particular fruit, notwithstanding fact products In question, thus labeled, were not made from the edible portion of the fruit or fruits ir.dicntc<l ami In the proportion of forty-five pounds of actual fmlt to each fifty-five pounds of sugar, but were adulterated by undi~closcd substitution, in part, tor fruits of mixture of water, sugar, and pectin, and were not jnms, pure jams, presen·es, or pure preserres, within meaning nnd popular acceptation of words "jams'' or "preserves," as implying composition and proportion hereinbefore Indicated;

With result that competitors selling standard unadulterated preserves were placed at a decided disadvantage in the marketing of their producm in competition with the less costly imitation preserves made by said corporation and labeled1 sold and described, as aforesaid, as "Pure Preserves," and at prices to dealers which producers of the genuine product could not meet by reason of fruit shortage In, and consequent lower production cost of, Imitation product, and with capacity and tendency to mislead and deeelve trade and consuming public into bellef that products de~l<'rihro as aforesaid by said corporation had been made from at least forty-five pounds of fruit or fruits Involved to tltty-tive pounds of sugar, and Into purchase thereof in reliance on such erroneous belief, and with result of placing in bands of dealers at wholesale and retail, Instrument of fraud enabling them to mislead and deceive public, and with capacity and tend· ency, :turthPr, unfairly to divert trade to them from their competitors, and otherwise Injuriously atrect the same; to the substantial injury ot substantial competition in commerce:

'Amended.

NATIONAL KllEAJ\I CO., INC., ET AL. 127 l26 Complaint lleld, That BtJCh acts and practices were to the prejudice of the public and competitors and constituted unfair methods of competition. Before Mr. Robe-rts. II all and ill r. John L. II omor, t~·ial exami.J1ers. Mf'., James M. Brinson and Mr. James M. Hawmond for the Commission.

Mr. Henry Duke, of Long Island City, N.Y., for respondents. AMENDID 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 the National Kream Company, Inc., and National Foods, Inc., corporations hereinafter designated respondents, have been and are, and each has been and is, using unfair methods of competition in commerce as "commerce" is defined in said act, and it appearing to said Commis- Rion that a proceeding by it in respect thereof would be in the public interest, and having determined to modi:fy its complaint herein here- 1of ore on August 22, 1936, issued, hereby issues its amended complaint stating its charges in that respect as follows: PARAGRAPH 1. Respondents National Kream Company, Inc., and ~ational Foods, Inc., are now, and for several years last past have been, corporations organized, existing and doing business under the laws of the State of New York, with offices and principal place of business at 360 Furman Street, in Brooklyn, in said State. Respondent National Kream Company, Inc., has been during such period, and now is, engaged in the manufacture of jams, jellies, preserves, and other food products and each of them has been and is engaged in their sale, and also in the sale of jams, jellies, and preserves purchased by them, and each of them, from other manufacturers, in commerce between and among the State of New York and the various States of the United States other than the State of New York.

National Foods, Inc., acts as a distributing agency for National Kream Company, Inc. and is a subsidiary of, and owned, controlled, tnanaged, and directed by National Kream Company, Inc. Some of the jams, jellies, and preserves manufactured by National Kream Company, Inc., or purchased by it from other manufacturers, are sold in commerce as above described, bearing labels of National Foods, Inc.

It has been and is the practice of respondents, and each of them, te trnnc;;port such products, or cause them to be transported, when sold, l~R12tm--30----11 128 :FEDERAL TRADE COMMISSION DECISIONS Complaint 21SF.T.O. from their said place of business at Brooklyn, N. Y., to purchasers thereof located in States of the United States other than the State of New York.

Respondents have been and are, and each of them has been and is, engaged in substantial competition in interstate commerce with· individuals, partnerships, and corporations offering for sale or selling jams, jellies, preserves, and other food products in like commerce. PAR. 2. It has been and is the practice of respondents and of each of them to offer for sale and sell their products to retail dealers, (•chain stores and others in jars or containers bearing labels which represent that the contents of such jars or containers are "pure jams," "pure jellies," or "pure preserves." Such labels also name the fruits which respondents represent have been used in the manufacture of the contents of such jars or containers.

The following are typical labels which indicate the said representations, by means of which respondents induce purchase of their pr~d­ acts:

NATIONAL PURE PRESERVES STllAWDEllllY CONTI<~NTS 4 lbs. (or "2 lbs." or "1 lb.") NET Manu!act.urec.l by NATIONAL KllEA~I CO., INC.

NEW YOllK, N. Y.

• • • NATIONAL PURE PRESERVES STRAWDEllllY Contents 1 lb. net )lonu!octured by NATIONAL KllEAM CO., INC.

New York, N. Y.

In truth and in fact the products of respondents, so denominated, described and represented, have not been and are not jams, jellies or preserves or pure jam, pure jellies or pure preserves within the mean· ing and popular acceptation of the words "jams," "jellies," or "preserves."

The expressions ''jams," "fruit jams," "jelly," "fruit jelly," "pre· serves," and ''fruit presenes" signify. and mean to and are known and understood by the trade and the purchasing public to be a product prepared from a mixture of the fruit or fruits specifically named on the label, or otherwise specified or represt>nted, with sugar in the NATIONAL KREAM CO., INC., ET AL. 129 126 Complaint proportion of at least forty-five pounds of fruit to fifty-five pounds of sugar and cooked to an appropriate consistence, or expressed in terms of percentages, a product so cooked from at least 45 percent of :fruit and 55 percent of sugar.

The jams, jellies, and preservl:'s offered for sale and sold by respondents ·ai1d each of them, in interstate commerce, by and with the representation that they have been or were jams. or pure jams, jellies or pure jellies, preserves or pure preserves have been or ~were adulterated by the substitution in part for fruits of a mixture of water, sugar, and pectin, so that the products have contained substantially less fruit than the pure or genuine jams, je1Iies, and preserves. Uespondents have failed to disclose such deficiency of the fruit so named on the label, or otherwise specified or represented, and the presence of substitutes therefor in their products. This practice of respondents lowers and redncrs the quality of their products and enables them to sell adlllterated jams, jellies, and preserves, as, and for the pure and genuine articles they purport to be and are not. PAR. 3. 'V1tter, sugar, and pectin, the materials used for adulteration by respondent National Kream Company, Inc., in the manufacture of its so-called jams, jellies, anJ pre:;erves are less expensive than the fruit for which they are snl>stitnted, and in addition thereto, the substitution of wuter, sugar and pectin for the proportion of fruit prescribed by the usages of the trade and the popular significance of the Words "jams," "jellies," and "preser-ves" enables respondent National l\reum Company, Inc., to procure a substantially higher yield than results from usc of the proportion of at least forty-five pounds of fruit to fifty-five pounds of sugar.

Such practice of so substituting water, sugar and pectin in part for fruit, results in the reduction of costs of manufacture for National Rream Company, Inc., both because of greater yield and cheape1· lllatE:rial.

. PAn. 4. There are now and for several years last past have been Individuals, partnerships and corporations engaged in the manufacture ?f jams, jellies and preserves in accordance with the conception of jams, Jelli!:'s, and pres!:'rves entertained by the trade and consuming public, as ~llore particularly described in paragraph 2 hereof, and in their sale 1ll interstate commerce, truthfully described and represented, in competition with respondents.

PAu, 1>. The practices of respondents and each of them in offering for sale uml selling as jams, or pure jams, as jellies or pure jellies, us l>re::,{'nes or pure preserves, products which have not been manufa<;· hired from at least forty-five pountls or forty-five percent of the fruit or fruits 11named on the label, or otherwise specified or represeutPtl, to COl\Il\II~SION DECISIONS 130 FEDERAL TR:\DE Findings 25F.T. C.

fifty-five pounds, or fifty-five percent of sugar, but which have beeJl adulterated with substitutes in part for said named fruit or fruits, have had and have the capacity and tendency to mislead and deceive the trade including wholesale and retail dealers and the consuming public into the belief that the products described as jams or pure jam, jelly or pure jelly, preserves or pure preserves, have been or are made from at least forty-five pounds of said fruit or fruits to fifty-five pounds of sugar and into the purchase of respondents' products in reliance on such erroneous belief.

By such practices, respondents have placed or put directly into the J1ands of dealers, wholesale and retail, an instrument of fraud by means of which they have been and are enabled to mislead and deceive the consuming public.

PAR. 6. The aforesaid practices of respondents described in paragraph 2 hereof have had and have the capacity and tendency to divert trade to respoll<lents from their competitors mentioned in paragraph { hereof, and otherwis() injuriously to affect them. Thereby substantial injury has been done, and still is being done, by rPspoll(lents to substantial competition in interstate commerce. PAR. 7. The aforesaid practices of respondents have been and are all to the prejudice of the public anu respondents' competitors, and have been and are unfair methods of competition in interstate commerce in violation of the provisions of Section 5 of an Act of Congress approved September 2G, 1914, entitled "An Act to create a Fedrral Trade Commission, to define its powers and duties, and for other purposes."

HEI'ORT, FINDINGS AS TO THE FACTs, AND Onmm Pursuant to the provisions of an Act of Congress approved Sep· tember 26, 1914, entitled "An Act to create a Federal Trade Com· mission, to define its powers and duties, and for other purposes," the Federal Trade Commission on September 8, 1936, issuetl and served its amended complaint in this proceeding upon the respondents, National Kream Company, Iuc., and National Foods, Inc., both incorporated, charging them with the use of unfair methods of competition in commerce in violation of the provisions of said act. After tho issuance of said amended complaint and the filing of re· spondent's answer thereto, testimony and other evidence in support of the allegations of said amended complaint were introduced by James Drinson, Esq., and James M. Hammond, Esq., attorneys fol' the Commission, before Hobert S. Hall and John L. Hornor, exam· iners of the Conm1ission that·etofore duly designated by it, and in opposition to the allegations of the complaint by Henry Duke, Esq., NATIONAL II:REAl\I CO., IN"C., ET AL. 131 126 . Findings 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 amended complaint, the answer thereto, testimony and other evidence, briefs in support of the amended complaint and in opposition thereto, and the oral arguments,of counsel aforesaid; 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. its conclusion drawn therefrom: FINDINGS AS TO THE FACTS PAnAGRAPII 1. Respondents, National Kream Company, Inc., and. National Foods, Inc., are now, and have been for several years last Past, corporations organized. and existing in accordance with the laws of the State of New York, with their offices and principal places of business located at 3GO Fmman Street in Brooklyn in said. State. Respondent, National Kream Company, Inc., has been and is now engaged in the manufactme of jams, preserves, and. other food prodllcts and together with the respondent, National Food.s, Inc., has been and is engaged in their sale, and in the sale of jams and. preserves Pllrchased. by them, and each of them, from other manufacturers, in commerce between and among the State of New York and the various other States of the United. States and in the District of Columbia. The respondent, National Food.s, Inc., acts as a distrilmting agency for the respondent, National Kream Company, Inc., and is a subsidiary of, and is owned., controlled, managed., and directed. by the said National Kream Company, Inc. Some of the jams and preserves n1anufactured by National Kream Company, Inc., or purchased by it from other manufactmers, are sold. in commerce as above11 described, haring labels of National Foods, Inc.

It has been and. is the practice of respond.ents, and. each of them, to transport such prod.ucts, or cause them to be transported, when sold., from their said place of business at Brooklyn, N. Y., to purchasers thereof located. in States of the United. States other than the State of New York.

. The respondents have been and are, and. each of them has been and. ls rngaged in substantial compt>tition in interstate commerce with :orporations, ind.ivid.uals and. partnerships offering for sale or selling Jams, preserves, and. other food products in like commerce. PAn. 2. It has been and is the practice of respondents, and. of each of them, to offer for sale and. sell their products to retail dealers, chain stores and others in jars or containers bearing labels which CO~IMISSIO:N DECISIONS132 FEDEllAL Tll.-\DE Findings 21iF.T.C. 1epresent that the contents of such jars or containers are "pure preserves." Such labels also name the fruits which respondents represent have been used in the manufacture of the contents of such jars or containers.

The following are typical labels which indicate the said representations by m~ns of which respondents induce the purchase of their products:

NATIONAL PURE PRESERVES STRAWBERRY CONTENTS 4 lbs. NET Manufactured by NATIONAL KREAM CO., INO.

NEW YORK, N. Y.

NATIONAL PRESERVES PURE BLACKBERRY 2 lbs. Net Wt.

NATIONAL FOODS, INC., Brooklyn, N. Y.

ln truth and in fact, the products of respondents, so denominated, described and represented, have not been and are not jams, pure jams, preootves, or pure preserves, within the meaning and popular acceptation of the words "jams" or "preserves."

Preserves and jams originated as food products produced in the home by the housewife. In such horne production, fruit and sugar, as ingredients of these products, were used in the proportion of a cup of sugar to a cup of fruit, and for many years such proportion of fruit nnd sugar was used and became generally recognized as the proper minimum proportion of fruit to sugar for such home production of preserves and jams. Since a cup of sugar is slightly heavier than a cup of fruit, this household formula is npproximat.ely equivalent to the ratio of nt least forty-five pounds of fruit to fifty-five pounds of sugar as used in the standard or accepted formula by commercial manufachlrers of jams and preserves as described below. As defined commercially, insofar as fruit and sugur content is con· cerned, pl'{'serve, fruit preserve, jam and fruit jam are understood to mean the fruit product made by cooking or concentrating to a suitable consistency the properly prepared, entire edible portion of fresh fruit, cold-packed fruit, canned fruit, or a mixture of two or all of these, with sugar, in the prepnmtion of which fruit product there is NATIONAL lme.\.:M CO., INC., ET AL. 133 126 Findings Used not less than forty-five pounds of actual fruit to each fifty-five pounds of sugar.

This formula of at least forty-five pounds of fruit to fifty-five pounds of sugar used in manufacturing jam or preserves has been universally recognized by preserve manufacturers as the minimum proportion of fruit to sugar required to produce a product that conforms to the public's understanding as to what constitutes "Jam" or ''Preserve."

The jams and preserves offered for sale and sold by respondents, and each of them, in interstate commerce, by and with the representation· that they are jams, pure jams or pre~n;es or pure preserves, have been or were adulterated by the substitution in part for fruits of a mixture of water, sugar, and pectin, so that the products have wntained substantially less fruit than pure or genuine jams and · l)reserves.

Respondents have failed to disclose such deficiency of the fruit so nam£>.d on the label, or otherwise specified or represented, and the }>res('nce of water, sugar, and pectin as a substitute therefor in their Products by naming them as imitations. This practice of respond- ('nts lowers and reduces the quality and cost of manufacture of their Products and enables them to sell adulterated jams and preserves, HR, and for pure and genuine jams and preserves. During the period 1932 to 1936, parts of both yettrs inclusive, fifty-three samples of the respondents' preserves, representing seven different kinds of fruit were purchased at various retail stores in :tnany different States, covering a territory from Massachusetts to Ohio and '1\Iaryland. In order to determine whether or not adulternt ion had been practiced by respondents, it was necessary to resort to chemical analysis. By comparing these analyses of respondents' Products with the anrage analysis of corresponding fruits, properly fJUalitied chemists are ab~ to calculate the ratio of fruit to sugar in the preparation of a jam or preserve, both of which terms are synonymous ns to the amount of fruit and sugar content. Twenty-eight <jf these samples were analyzed under the supervision of Commission's witness Sale, an expert food chemist of the United States De· Pnrtment of Agriculture. The result of each of these analyses is ~shown by Commission's Exhibit 38. He found that all samples annlyzC"d were deficient in fruit content and averaged only npproxilllatdy thirty-three pounds of fruit to fifty-five pounds of !"ugar. ~eventeen samples of respondents' preserves were analyzed by Comtnission's witness Harrison, a commercial chemist of eighteen years' ~experience, who likewise found all samples deficient in fruit. Eight sarnples we1·e analyzed by {:ommission's witness Walde, a cltemist 134 FEDERAL TRADE C01\IMISSI01S" DECISIONS Findings 25F.T.C.

who has speeialized for ten years in the analysis of preserves. Mr. 'Valde, who interpreted his own and 1\Ir. Harrison's analyses, found un 'average shortage in respondents' product of thirteen pounds of fruit; that is to say, only thirty-two pounds of fruit were used to fifty-five pounds of sugar, instead of at least forty-five pounds of fruit to fifty-five pounds of sugar as required by the accepted formula. The principal shortage of fruit in respondents' product was found to rxist in strawberries, the most expensive of all the fruits used by the respondents for preserving purposes. The average content of fruft of all of the fifty-three samples analyzed w:ts thirty-two and five-tenths pounds of fruit to fifty-five pounds of sugar. !)reserve manufacturers who are in competition with respondents also manufacture jams and presenes in the preparation of which less than forty-five pounds of fruit are tts('d to each fifty-five pounds of sugar, and in which water, sugar, and pectin, a chemical which has the property of jellifying sugar and water, are used as a substitute 1naterial for part o£ the fruit that is required for a standard preserve. In composition, such products are substantially the same in appearance and consistency as the average composition of the products of the respondents. Preserve manufacturers in competition with respondents, who produce such products deficient in fruit_, label, describe anti sell the same us "Imitation Preserve," and this fonn of labeling and description is generally a universal practice among manufacturers other than respondents.

As known to the tratie and to the purchasing and consuming public, "Imitation preserve" and "Imitation jam" are products prepared with less than forty-five pounds of fruit to each fifty-five pounds of sugar and in place of the full proportion of fruit there is added sugar and water with or without pectin, or combinations of one or more of these ingredients. The chemical analyses referred to above show that respondents' products were, in fact, imitation preserves and imitation jams manufactured in this manner. The evidence further shows that in 1935 a criminal information was filed in the United States District Court for the Eastern District of New York, containing thirty counts, each charging the respondent, National Kream Company, Inc., with the adulteration of preserves in substantially the same manner as allcgeti in the amended com· plaint in this case. The National Kream Company, Inc., pled guilty to twelve of these counts and was fined $25.00 on each of seven counts, for a total fine of $175.00 anti received a suspended sentence as to the other five counts to which the plea. of guilty was ent('rrd. The other eighteen counts were dismissed.

NATIO:NAL ImEAl\I CO., INC., ET AL. 135 126 Findings PAR. 3. Various preserve manufacturers were called by the Commission for the purpose of ascertaining what savings would accrue as a result of an adulteration of preserves as described above. They testified that manufacturers of preserve so adulterated might ·save from five to thirty-eight per cent of their manufacturing costs by this subterfuge depending in each instance on the degree of adulteration and the cost of the fruit involved. Commission's Exhibits 40, 41, 43, and 51 set out complete tabulations on costs and savings accruing as a result of adulteration. Comparison of these exhibits with the degree of adulteration in respondents' product, as shown by the chemical analyses referred to above, indicates the amount the respondent saved in production costs. For example, referring to Commission's Exhibit No. 51, a tabulation covering strawberry preserves where the fruit was purchased at $0.115 per pound, if the respondents adulterated to the extent of using only twenty-five pounds of fruit to fifty-five pounds of sugar, they would save 24% in cost of production, or $0.98 per dozen on their two-pound jars of strawberry preserves. If the respondents used only thirty pounds of strawberries to fifty-five pounds of sugar, they would save 18% of their production costs, or $0.72 on each dozen of their two-pound jars of strawberry preserves. The respondent's adulteration of strawberry preserves, as shown by the chemical analyses referred to above, averaged twenty-seven pounds of fruit to fifty-five pounds of sugar. Its average saving· in production costs was therefore about $0.80 per dozen on their two-pound jars of strawberry preserves, depending on the cost of the fruit, with a similar proportionate saving on onepound or four-pound jars, as the case might be. Respondent's competitors in the sale of standard unadulterated preserves were placed at a decided disadvantage in the marketing of their products in competition with the imitation preserve manufachired by the respondents but labeled, sold and described by respondents as pure preserve, and sold to dealers at prices which the producers of pure preserves could not meet as a result of respondents' trade advantage because of fruit shortage in their product which necessarily gave them a lower production cost. Respondents' imitation preserves and imitation jams were so made that they simulated unadulterated preserves or jams in appearance to the extent that the difference in fruit content between the imita- !ion and the genuine products could not be discerned by visual Inspection.

PAR. 4. There are now, and have been for many years past, other <'nrporations, partnerships, and individuals engaged in the manu- ,136 FEDERAL TRADE COMMISSION DECISIONS Oruer 25~'. T. C. facture of jams and preserves in accordance with the conception of jams and preserves entertained by the trade and consuming public, as more particularly described in paragraph 2 hereof, who truthfully describe and represent their products in their sale in interstate commerce in competition with respondents.

PAn. 5. The practices of respondents and each of them in offering for sale and selling as jams, or pure jams and as preserves or pure preserves, products which have not been manufactured from at least forty-five pounds of the fruit or fruits named on the label, or otherwise specified or represented, to fifty-five pounds of sugar, uut which have been adulterated with substitutes in part for said named fruit or fruits, have had and now have the capacity and tendency to mislead and deceive the trade, including wholesale and retail dealers, and the consuming public into the belief that the products described by respondents as jams or pure jams, preserves or pure preserves, have been or are made from at least forty-five pounds of said fruit or fruits to fifty-five pounds of sugar and into the purchase of respondents' products in reliance on such erroneous belief. Dy such pmctices, respondents have placed in the hands of dealers, wholesale and retail, an instrument of fraud by means of which said dealers have been and are enabled to mislead and deceive the consuming public.

PAn. 6. The aforesaid practices of respondents, as described herein, have had and now have the capacity and tendency to unfairly divert trade to respondents from their competitors and otherwise to injuriously affect them, thereby, substantial injury has been done, and still is being done by respondents to substantial competition in interstate commerce.

CONCLUSION The aforesaid acts and practices of the respondents, National Kream Company, Inc., and National Foods, Inc., respondents herein, ar(\ to the prejudice of the public and of the respondents' competi· tors and constitute unfair methods in competition in commerce within the intent and meaning of Section 5 of an Act of Congress, approwd September 2G, 1914, entitled, "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes."

Orller TO CEASE AND J)DESIST This proceeding having been heard by the Federal Trade Com· mission upon the amended complaint of the Commission the answer of respondents, testimony and other evidence taken be,fore Robert S. Hall and John L. Hornor, trial examiners of the Commission NATIONAL l(REAl\I CO., INC., ET AL. 137 126 Order theretofore duly designateu by it, in support of the allegations of said amenued complaint and in opposition thereto, briefs filed herein and oral arguments by James :M. Hammond, Esq., counsel for the Commission, and. by Henry Duke, Esq., counsel for respondents, and the Commission having made its findings as to the facts and its conclusion that said 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 i8 ordered, That the respondents, National Kream Company, Inc., and National Foods, Inc., their officers, representatives, agents, and employees in connection with the offering for sale, sale, and distribution of preserves or imitation preserves, jams or imitation jams in interstate commerce or in the District of Columbia, do forthwith cease and desist from :

1. Representing in any manner whatsoever that a mixture of fruit and sugar is pure preserve or preserve or pure jam or jam unless the same is properly prepareu from the entire edible portion of fresh, cold-packed, or canned fruit, or a mixture of two or all of these, and cooked or concentrated to a suitable consistency with sugar, and in the preparation of which jam or preserve there is used not lss than forty-five pounds of actual fruit to each fifty-five pounds of sugar;

2. Selling or offering for sale a product made in simulation of a jam or preserve but containing less than forty-five pounds of fruit to each fifty-fiye pounds of sugar used in the manufacture thereof tmtil there is affixed to the container in which said product is sold, in a conspicuous place so as to be easily and readily seen, a word or Words clearly indicating that said fruit product is imitation jam or imitation preserve.

It i.g hereby further ordered, That the respondents, National }{cream Company, Inc., and National Foods, Inc., shall, within 30 days from the date of service upon them of this order, file with the ~nunission their reports in writing stating the manner and form In which they shall have complied with this order. 138 FEDERAL TRADE CO?.DII~SIO~ DECISIONS Syllabus 25F. '£.C.