Standard Container Manufacturers' Association, Inc

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IN THE MATTER OF STANDARD CONTAINER MANUFACTURERS' ASSOCIATION, INC. ET AL MODIFIED CEASE AND DESIST ORDER Docket 3289. Order, Aug. 11, 1941 Modified order, pursuant to provisions of section 5 (i) of Federal Trade Commission Act, in proceeding in question, in which (1) Commission on March 5, 1940, made i~ findings and conclusion and Issued cease and desist order In Docket 3289, 30 F. T. C. 577, 598, and (2) Circuit Court of Appeals for the Fifth Circuit on April23, 1941, in Standard Container Manufacturers' Associat-ion, Inc., et al. v. Federal Trade Commission, 119 F. (2d) 262, 32 F. T. C. 1879, rendered its decision and, on May 20, 1941, issued its decree modifying said order of the Commission in certain particulars and affirming same In other particulars, and directed the Commi&Sion to modify such order in ac~ordance with said decree- !. Requiring respondent corporations, partners, and individuals engaged in manufacture, sale, and distribution, or sale and distribution, of wooden fruit and vegetable containers in the southeastern portion of the United States, and more particularly in Georgia and Florida, and their officers, etc., to cease and desist from- Entering into or carrying out any understanding, agreement, etc., with intent or effect of restricting, etc., competition in sale in interstate commerce of such containers, and, as a part of such understanding, etc.- (1) Agreeing to fix and maintain, or fixing and maintaining, (a) uniform or minimum prices, or (b) uniform terms and conditions of sale, such as maximum discounts, brokerage fees, freight and other allowances, and time limitations in contracts;

(2) Agreeing to curtail, or curtailing, production of such containers or parts, or to check, or checking, production of other parties to agreement re agreed curtailment; · (3) Threatening, etc., members of industry to induce them to become parties to, or to maintain prices fixed by, agreement, or to curtail production in furtherance thereof;

( 4) Filing with their association, Its officers, etc., report as to member com· pliance re prices or production; and (5) Reporting or conferring with respondent Adkins or any officer, etc., of respondent association re prices for sale of profluct, or production curtallment, or nonconformance to agreement by industry members as to aforesaid matters; and II. Requiring respondent a&Sociation and its officers, etc., including respondents Adkins, Chazal, nnd Bennett, to cease and desist from- Aiding, abettfng, encouraging, or coopl'ratlng with respondent corporations, partners, and Individuals, In doing any of the acts and things 11rohibited by this order; and III. Requiring respondent Adkins, former president of association of members of such industry, to cease and desist from- STA.~DARD CONTAIN!I.""En MAN1JFACTURERS' AS'SN., INC., ET AL. 947 946 Order Threatening, coercing, or in any wise intimidating members of the industry in an attempt to Induce them to become a party to such an understanding, etc., or to maintain prices, terms, and conditions of sale or to curtail production in furtherance of any such understanding, etc. Modified ORDER TO CEASE AND DESIST This matter coming on for further hearing before the Federal Trade Commission and it appearing that on March 5, 1940, the Commission made its findings as to the facts herein, and concluded therefrom that the respondents had violated the Federal Trade Commission Act, and on March 5, 1940, issued and subsequently served its order to cease and desist; and it further appearing that on May 20, 1941 the United States Circuit Court of Appeals for the Fifth Circuit rendered its decree modifying the aforesaid order of the Commission in certain particulars and affirming said order in other particulars, and directed the Commission to modify its said order to cease and desist in accordance with said decree.

Now, therefore, Pursuant to the provisions of subsection (i) of section 5 of the Federal Trade Commission Act, the Commission issues this its modified order to cease and desist in conformity with the said Court decree :

It is ordered, That the respondents Adkins Manufacturing Co., Consumers Lumber and Veneer Co., Elberta Crate & Box Co., Hector Supply Co., Georgia Veneer & Package Co., R. C. Balfour, Jr. and J. V. Hawthorne, doing business as the Georgia Crate & Basket Co., The Greenville Veneer & Crate Co., Keysville Lumber Co., 'Walton E. N ants and R. A. N ants, trading and doing business as N ants Manufacturing Co., Nocatee-Manatee Crate Co., Ocala Manufacturing, Ice & Packing Co., Inc., The Pierpont Manufacturing Co., Roux Crate & Lumber Co., Inc., Shollar Crate and Box Co., Inc., Southern Crate &'Veneer Co., Southern Veneer Co., L. B. 'Valling, Hugh Walling and Frieda Walling, doing business as Walling Crate Co., Frank R. Pounds Crate Co., Lake Crat~ and Lumber Co., Zachary Veneer Co., Osceola Crate Mills, Inc., Montbrook Crate Co., Southern Container Co., Cummer Sons Cypress. Co., Zach Russ, trading as Russ Crate Co., and Stephen 0. Shinholzer, their officers, agents, representatives and employees, cease and desist from entering into, or carrying out, any understanding, agreement, combination, or conspiracy between and among any two or more of said respondents, or between any one or more of said respondents and any other member or members of the industry, for the purpose or with the effect of restricting, restraining, or monopolizing, or eliminating competition in, the sale in interstate commerce of wooden containers used in packaging fruits Order 33F. T. C.

and vegetables, variously described and referred to as crates, baskets, boxes, hampers, lugs, cups, and trays, and the parts thereof, and as a part of such understanding, agreement, combination, and conspiracy from doing any of the following acts or things: 1. Agreeing to fix and maintain, or fixing and maintaining, uniform or minimum prices.

2. Agreeing to fix and maintain, or fixing and maintaining, .uniform terms and conditions of sale, such as maximum discounts, brokerage fees, freight, and other allowances and time limitations in con tracts.

3. Agreeing to curtail, or cmtailing, production of such containers or the parts thereof or agreeing to check, or checking, the production of the mills of other parties to such an agreement to determine if such other mills have curtailed production as agreed upon.

4. Threatening, coercing or in any wise intimidating members of the industry in an effort to induce such members to become parties to said understanding, agreement, combination or conspiracy, or to induce such members to maintain the prices fixed by, or to curtail production in furtherance of, said understanding, agreement, combination, or conspiracy.

5. Filing with the respondent associati_on, Standard Container Manufacturers' Association, Inc., its officers, agents, or employees, any report as to the manner and form in which any member of the industry is carrying out any agreement or understanding with reference to prices or production.

6. Reporting to or conferring with respondent James B. Adkins, or any officer, agent or employee of said respondent association, as to the prices at which said products are to be sold or as to the curtailing of the production of any of such products, or as to the failure of any member of the industry to carry out any agreement or understanding on the part of such member of the industry to maintain prices, terms, and conditions of sale or to curtail production. It is fwrther ordered, That the respondent Standard Container Manufacturers' Association, Inc., its officers, agents, and employees, and the respondents James B. Adkins, Charles P. Chazal, and Russel W. Bennett, forthwith cease and desist aiding, abetting, or encouraging, or cooperating with, the respondents hereinabove named in doing any of the acts and things prohibited by this order. It is further ordered, That the respondent James B. Adkins cease and desist threatening, coercing, or in any wise, intimidating members of the industry in an attempt to induce such members to bl',come STANDAF.D CONTAINER MANUFACTURERS' ASSN., IKC., ET AL. 949 946 Order a party to such an understanding, agreement, combination, or conspiracy, or to maintain prices, terms, and conditions of sale or to curtail production in furtherance of any such understanding, agreement, combination, or conspiracy.

It is furrther orilereil, That the respondent shall, within 30 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.

Syllabus 33 F. T. C.