Giant Tiger Corp

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

IN THE MATI'ER OF GIANT TIGER CORPORATION COMPLAINT, FINDINGS, AND ORDER IN REGARI1 TO THE ALLEGED VIOLATION OF SUDSEC. (c) OF SEC. 2 OF AN ACT OF CONGRESS APPROVED OCT. 15, 1914, AS AMENDED BY AN ACT OF CONGRESS APPROVED JU:SE 19, 1936 Docket 4216. Complaint, .Aug. 28, 1940-Dccision, July 81, 19.p Where a corporation engaged in operating a chain of self-service retail food stores, commonly known as "SUPER MARKETS," purchasing a substantial portion of its requirements from sellers in other States- Received and accepted allowances and discounts in lieu of brokerage in substantial amounts, through purchasing commodities at prices lower than those at which such commodities were sold to other purchasers by an amount which reflected all or a portion of the brokerage currently being paid by the sellers to their respective brokers for effecting sales thereof to other purchasers : Held, That such receipts and acceptance of allowances and discounts in lieu of brokerage fees or commissions from sellers upon purchases of commodities violated the provisions of section 2 (c) of the Clayton Act, as amended by the Roblnson-Patman Act.

Mr. John T. Haslett for the Commission.

Einhorn&! Schachtel, of Philadelphia, Pa., for respondent. Complaint The Federal Trade Commission having reason to believe that the respondent named in the caption hereof, and hereinafter more particularly designated and described, since June 19, 1936, has violated and is now violating the provisions of subsection (c) of section 2 of the Clayton Act, as amended by the Robinson-Patman Act, approved Juue 19, 1936 (U. S.C. title 15, sec. 13), hereby issues its complaint stating its charges with resp<>ct thereto as follows: PARAGRAPH 1. Respondent Giant Tiger Corporation is a corporation organized and existing under the laws of the State of Pennsylvania, with its principal office and place of business located at Fortyfirst and Chestnut Streets, Philadelphia, Pa. Respondent is engaged in the business of operating a chain of self-service retail food stores, commonly known as "soPER liiARKETs."

PAR. 2. In the course and conduct of its said business responueu~ purchases a substantial portion of its requirements from sellers located in States other than the State in which the respondent is located, pursuant to which purchased commodities are caused to be shipped and transported by the respective sellers thereof across State lines to the respondent.

GIANT TIGER CORP, 831 830 F!ndlngs PAR. 3. Since June 19, 1936, in connection with a purchase of its requirements in interstate commerce, as aforesaid, respondent has received and accepted allowances and discounts in lieu of brokerage in substantial amounts.

Usually, the receipt and acceptance of the aforesaid allowances and discounts in lieu of brokerage is accomplished by respondent by purchasing commodities at prices lower than the prices at which such commodities are sold to other purchasers thereof by an amount which reflects all or a portion of the brokerage currently being paid by the sellers of such commodities to their respective brokers for effecting sales of such commodities to other purchasers.

PAR. 4. The receipt and acceptance of allowances and discounts in lieu of brokerage by respondent as set forth in paragraph 3 hereof is in violation of subsectioa (c) of section 2 of the Clayton Act as amended. REPORT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of ·an Act of Congress entitled "An Act ·to supplement existing laws against unlawful restraints and monopolies and for other purposes," approved October 15, 1914, the Clayton Act as amended by act of Congress approved June 19, 1936, the Robinson-Patman Act (U. S. C. title 15, sec. 13), the Federal Trade Commission, on the 28th day of August 1940, issued and thereafter served its complaint in this proceeding upon respondent Giant Tiger Corporation, a corporation, charging it with violation of the provisions of subsection (c) of section 2 of said act. After the issuance and service of said complaint and the filing of respondent's answer, the Commission, by order entered herein, granted respondent's motion for permission to withdraw said answer and to substitute therefor an answer admitting all of the material allegations of fact set forth in said complaint and waiving all intervening procedure and further hearings as to said facts and expressly waiving the filing of briefs and oral argument, which substitute answer was duly filed in the office of the Commission.

Thereafter this proceeding regularly came on for final hearing before the Commission on said complaint and substitute answer, and the Commission having duly considered the matter and being now fully advised in the premises, makes this its findings as to the facts and its conclusion drawn thc>refrom.

FINDINGS AS TO Tile FACTS PARAGRAPH 1. Respondent Giant Tiger Corporation is a corporation organized and existing under the laws of the State of Pennsylva- Order 33F. T. C.

nia, with its principal office and place of business located at Forty-first and Chestnut Streets, Philadelphia, Pa. Respondent is engaged in the business of operating a chain of self-service retail food stores, commonly known as "surer MARKETS."

PAR. 2. In the course and conduct of its said business respondent purchases a substantial portion of. its requirements from sellers located in States other than the State in which the respondent is located, pursuant to which purchased commodities are caused to be shipped and transported by the respective sellers thereof across State' lines to the respondent. · PAR. 3. Since June 19, 1936, in connection with the purchase of its requirements in interstate commerce, as aforesaid, respondent has received and accepted allowances and discounts in lieu of brokerage in substantial amounts.

Usually, the receipt and acceptance of the aforesaid allowances and discounts in lieu of brokerage is accomplished by respond<mt by purchasing commodities at prices lower than the prices at which such commodities are sold to other purchasers thereof by an amount which reflects all or a portion of the brokerage currently being paid by the sell- 'ers of such commodities to their respective brokers for effecting sales of such commodities to other purchasers.

CONCLUSION In rece1vmg and accepting allowances and discounts in lieu of brokerage fees or commissions from sellers upon purchases of commodities as set forth in paragraph 3 hereof, the respondent has violated the provisions of section 2 (c) of the Clayton Act as amended by the Robinson-Patman Act, approved June 19, 1936 (U. S.C. title 15, sec. 13).

ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission and substitute answer of respondent, in which answer respondent admits all of the material allegations of fact set forth in said complaint and states that it waives all intervening procedure and further hearings as to said facts and expressly waives the filing of briefs and oral argument and the Commission having made its findings as to the facts and conclusion that said respondent has violated the provisions of section 2 (c) of the Clayton Act, as amended by the Robinson-Patman Act, approved June 19, 1936 (U.S. C. title 15, sec. 13).

It is ordered, That the respondent Giant Tiger Corporation, a corporation, its officers, directors, agents, employees, and representatives, GIANT TIGER CORP. 833 830 Order jointly or severally, directly or through any corporate or other device, in connection with the purchasing of commodities in interstate commerce, do forthwith cease and desist from:

1. Accepting from sellers, directly or indirectly, any allowance or discount in lieu of brokerage fees or commissions in whatever manner or form said allowances, discounts, brokerage fees, or commissions may be offered, allowed, granted, paid, or transmitted; and 2. Accepting from sellers in any manner or form whatever, directly or indirectly, anything of value as a commission, brokerage fee or other compensation or any allowance or discount in lieu thereof upon purchases of commodities made by respondent. It is further ordered, That the said respondent Giant Tiger Corporation, a corporation, shall within 60 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 the order to cease and desist hereinabove set forth by the Commission. Syllabus 33F.T.C.