James J. Collins

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IN THE MA'ITER OF JAMES J. COLLINS, CHARLES J. HEPP AND CATHERINE HEPP, TRADING AS ROCKDALE MONUMENT COMPANY ~Ol\IPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. I! OF AN ACT OF CONGRESS APPROVED SEPT. 26, 19'14 Docket 4404. Complai·nt, Dec. 6, 1940-Deciswn, Aug. 22, 1941 Whe1·e a firm engaged in the Interstate sale and distribution of imitation granite monuments and markers; by means of advertisements In periodicals of general circulation and in circulars, catalogs and other advertising media, directly and by implicatlon- {a) Represented that the prices at which they offered their products were wholesale and special or reduced, and substantially lower than those at which they sold said products in the usual course of business, and that they were the only dealers offering a plan by which monuments and markers could be purchased at low prices on the installment plan; facts being the prices in question were the regular and customary prices, and many other dealers sold such products at low prices and on installments; ( lJ) Represented that their said products were of natural granite, of a permanent nature, and of certain specified weights; when they were not natural granite, monuments and markers of which have an established reputation for beauty, durability, and other preeminent qualities and are consequently decidedly preferred over those of cast or artificial stone, but were made of a mixture of cement and granite chips molded Into the desired form and ground and polished to resemble natural granite, would deteriorate much more rapidly than natural granite, and in many instances were substantially less in weight than represented; and (c) Made use in their advertising literature of drawings and cuts purporting to show the size, color, nature, and quallty of their monuments, when in fact said products were not of the size, color, nature, and quality Ulustrated; With effect of misleading and deceiving a substantial portion of the purchasing public into the erroneous belief that such representations were true, and of' causing It, because of such belief, to purchase substantial quantities of their said products:

Held, That such acts and practices, under the circumstances set forth, were all to the prejudice and injury of the public, and constituted unfair and deceptive acts and practices in commerce.

Before JJ!r. Andrew B. Duvall, trial examiner. 11/r. B. G. "Wilson for the Commission.

Mr. Frank E. & Arthur Gettleman, of Chicago, Ill., for respondents Complaint Pursuant to the provisions of the Federal Trade Commission Act, and by virtue of the authority vested in it by said act, the Federal Trade Commission having reason to believe that James J. Collins, Charles J. Hepp, and Catherine Hepp, individually and trading as 1124 FEDERAL TRADE COlHMISSION DECISIONS Complaint 33 F. T. C. Rockdale Monument Co., hereinafter referred to as respondents~ have violated the provisions of the said act, and it appearing to the 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:

PARAGRAPH 1. Respondents, James J. Collins, Charles J. Hepp, and Catherine Hepp, are individuals trading as Rockdale Monument Co., with their office and principal place of business in Joliet, Ill. Respondents are now, and for more than 2 years last past have been, engaged in the business of manufacturing and selling imitation granite monuments and markers in commerce between and among the various States of the United States and in the District o.f Columbia. Respondents cause their said products, when sold, to be shipped from their said place of b,usiness in the State of Illinois to purchasers thereof located in various other States of the United States and in the District of Columbia. Respondents maintain, and at all times mentioned herein have maintained, a course of trade in their said monuments and markers in commerce between and among the various States of the United States and in the District of Columbia. PAR. 2. In the course and conduct of their business, and to induce the purchase of their said products, the respondents have disseminated false and misleading statements and representations with respect to said products, such statements. and representations being inserted in magazines having a general circulation and in circulars, catalogs, and other advertising matter, distributed among prospective purchasers. Among and typical of such false and misleading representations, are the following:

You buy ft·om us at wholesale prices.

Special Offer. Rockdale marker (as illustrated) specially priced, $12.50- $25.00 value.

We are the only company offering an easy payment plan on the purchase at monuments or markers by mail at the low prices as shown in our catalog. Rockdale monuments and markers have been sk1lltully designed and executed by expert stone cutters.

They have been styled and cut by expert artisans. Dignified beauty and dependable durability. Flint-like hardness. Made ot the finest grades at granite aggregates. A lasting memorial that will endure through the years. Model A-10 • • • Approxiroate weight, 470 lbs. · Model A-11 • • • Approximate weight, 600 lbs. PAR. 3. Through the use of the foregoing representations, and others of similar import not specifically set out herein, the respondents represent and have represented, directly or by implications, that the prices at which respondents offer their products for sale are ROCKDALE J:\WNUMENT CO. 1125 1123 Complaint wholesale prices and are special or reduced prices, being substantially lower than the prices at which such products are sold by respondents in the usual course of business; that respondents are the only dealers offering a plan by which monuments and markers may be purchased at low prices on the installment plan; that respondents' products are of natural granite; that said products are of a permanent nature; that said monuments and markers are of certain specified weights. PAR. 4. The foregoing representations are grossly exaggerated, false, and misleading. In truth and in fact, the prices at which respondents offer their products for sale are not wholesale prices, nor are said prices special or reduced prices but are the regular and customary prices ·at which such products are offered for sale and sold by respondents in the usual and ordinary course of business. Repondents are not the only dealers offering monuments and mark~ ers for sale at low prices on the installment or partial payment plan, there being many other dealers who sell such products at low prices and on the installment plan. Respondents' products are not of natural granite but are cast stone or artificial stone, said products being made of a mixture of cement and granite chips molded into the desired fonns, and ground and polished to resemble natural granite. Respondents' products are not of a permanent nature but deteriorate much more rapidly than natural granite. In many in~ stances the monuments and markers represented by respondents as being of certain specified weights are substantially lighter in weight than represented.

A further practice on the part of the respondents is the use in their ~dl'ertising literature of drawings, cuts, and picturizations purport.. lng to represent the size, color, nature, and quality of respondents' Products, when in fact such products are not of the size, color, nature, or quality so represented.

PAR. 5. Monuments and markers of natural granite hale estab~ lished among the members of the purchasing public a reputation for beauty, durability, and other preeminent qualities, and as a result of SUch reputation the purchasing public has a decided preference for such products over monuments and markers which are cast stone or artificial stone.

PAR. 6. The use by the respondents of the aforesaid false and mis~ leading statements and representations has the tendency and capacity to, and does, mislead and deceive a substantial portion of the pur~ chasing public into the erroneous and mistaken belief, that such statements and representations are true, and to cause the public, because of such erroneous and mistaken belief, to purchase sub~ stantial quantities of respondents' products. Findings 33 F.T. C. PAR. 7. Thg aforesaid acts and practices o:f the respondents, as herein alleged, are all to the prejudice and injury of the public and constitute unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act.

REPORT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission on December 6, 1940, issued, and subsequently served its complaint in this proceeding upon the respondents James J. Collins, Charles J. Hepp, and Catherine Hepp, individually and trading as Rockdale Monument Co., charging them with unfair and deceptive acts and practices in commerce in violation o:f the provisions of said act. On December 26, 1940., the respondents filed their answer in this proceeding. Thereafter, at a. hearing held in Chicago, Ill., on l\fay 22, 1941, before Andrew B. Duvall, an examiner of the Commission, theretofore duly designated by it, certain testimony was received and a stipulation was entered into whereby it was stipulated and agreed that, subject to the approval of the Commission, a statement o:f facts read into the record may be taken as the facts in this proceeding and in lieu of testimony in support of the charges stated in the complaint or in opposition thereto, and that the Commission may proceed upon said statement of facts to make its findings as to the facts (including the inferences which it may draw from the said stipulated facts) and its conclusion based thereon, and issue its order disposing of this proceeding without the presentation of argument or the filing of briefs. Counsel for respondents expressly waived the filing of the trial examiner's report upon the evidence. Thereafter, this proceeding came on for final hearing before tqe Commission on said complaint. answer, testimony, and stipulation as to the facts, said stipulation having been approved, 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 its findings as to the facts and its conclusion drawn therefrom. FINDINGS AS TO THE FACTS PARAGRAPH 1. Respondents, Charles J. Hepp, Catherine Hepp, and James J. Collins, are individuals who, prior to October 15, 1940, composed a partnership trading under the name Rockdale Monument Co., with their office and principal place of business at Joliet, Jll. On October 15, 1940, respondent James J. Collins severed his connection with the partnership and he has not since that date been inter- ROCKDALE MONUMENT CO. 1127 1123 Findings ested in the business conducted under the name Rockdale Monument Co. All of said individuals, for more than 2 years prior to October 15, 1940, had been engaged in, and the respondents Charles J. Hepp and Catherine Hepp are now engaged in, the business of manufactur· ing and offering for sale and selling imitation granite monuments and markers in commerce between and among the various States of the United States and in the District fo Columbia. Respondents Charles J. Hepp and Catherine Hepp now cause their said products, and all of said respondents prior to October 15, 1940, caused their said products, when sold, to be shipped from said place of business in the State of Illinois to the purchasers thereof located in the various other States of the United States and in the District of Columbia. Respondents, during the respective periods of time above mentioned, maintained a course of trade in said monulllents and markers in commerce between and among the various States of the United States and in the District of Columbia. PAR. 2. In the course and conduct of their said business, prior to October 15, 1940, and for the purpose of inducing the purchase of said products, the respondents disseminated false and misleading statements and representations with respect to said products. Such statements and representations were inserted in magazines having a general circulation and in circulars, catalogs, and other advertising media distributed among prospective purchasers. Among and typical of such false and misleading representations are the following: You buy from us at wholesale prices.

Special Offer. Rockdale marker (as illustrated) specially priced, $12.5(}- $25.00 value.

\Ve are the only company offering an easy payment plan on the purchase of lllonuments or markers by mail at the low prices as shown in our catalog. Rockdale monuments and markers have been skillfully designed and executed by expert stone cutters.

They have been styled and cut by expert artisans. Dignified beauty and dependable durability. Flint-like hardness. l\Iade of the finest grades of granite aggregates. A lasting memorial that will endure through the years. Motlel A-10 • • • Approximate weight, 470 lbs. liJodel A-ll • "' • Approximate weight, 600 lbs. PAR. 3. Through the use of the foregoing representations, and others of similar import and meaning not specifically set out herein, the respondents represented, directly and by implication, that the prices at which respondents offered their products for sale were wholesale prices and were special or reduced prices, substantially lower than the prices at which such products were sold by respondents in the usual course of business; that respondents were the only dealers offering a Con elusion 33F.T.C.

plan by which monuments and markers could be purchased at low prices on the installment plan; that respondents' products were of natural granite; that said products were of a permanent nature; and that said monuments and markers were of certain specified weights. PAR. 4. The foregoing representations were false and misleading. In truth and in fact, the prices at which respondents offered their products for sale were not wholesale prices, nor were said prices special or reduced prices but the regular and customary prices at which such products were offered fot· sale and sold by respondents in the usual and ordinary course of business. Respondents were not the only dealers offering monuments and markers for sale at low prices on the installment or partial payment plan, there being many other dealers who sell such products at low prices and on the installment plan. Respondents' products were not natural granite but were cast stone or artificial stone; said products were made of a mixture of cement and granite chips molded into the desired forms, and ground and polished to resemble natural granite. Respondents' products were not of a permanent nature but would deteriorate much more rapidly than natural granite. In many instances, the monuments and markers represented by respondents as being of certain specified weights were substantially less in weight than represented. A further practice on the part of respondents was the use in their advertising literature of drawings, cuts, and picturizations purporting to show the size, color, nature, and quality of respondents' products, when in fact respondents' products were not of the size, color, nature, and quality illustrated in said drawings, cuts, and picturizations. PAR. 5. :Monuments and markers of natural granite have estab· lished among the menibers of the purchasing public a reputation for beauty, durability, and other preeminent qualities, and as a result of such reputation the purchasing public has a decided preference for such products over monuments and markers which are cast stone or artificial stone.

PAR. 6. The use by the respondents of the aforesaid false and mis· leading statements and representations had the tendency and capacity to, and did, mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that such statements and representations were true, and caused the public, because of such erroneous and mistaken belief, to purchase substantial quantities of respondents' products.

CONCLUSION The aforesaid acts and practices of the respondents, as herein found, are all to the prejudice and injury of the public and constitute unfair ROCKDALE l\IONUl\LENT CO. 1129 1123 Onlt>r and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act. ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission, the answer of the respondents, testimony and a stipulation as to the facts entered into which provides, among other things, that without further evidence or other intervening procedure the Commissl.on may issue and serve Upon the respondents herein findings as to the facts and conclusion based theron and an order disposing of the proceeding, and the Commission having made its findings as to the facts and conclusion that said respondents have violated the provisions of the Federal Trade Commission Act.

It is ordered, That the respondents, James J. Collins, Charles J. Repp, and Catherine Hepp, individually and trading as Rockdale Monument Co., or trading under any other name or names, their representatives, agents, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale, and distribution of monuments and markers in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from :

1. Representing that usual and customary prices at which said products are sold are "wholesale," special or reduced prices or anything other than the regular retail prices for said products. 2. Representing that respondents are the only dealers in monuments offering such products for sale at low prices on the installment plan.

3. Representing that said products are natural granite, or that said products are of permanent nature.

4. Representing that the weight of any of said monuments is greater than the actual weight of such monument. 5. Using cuts, drawings, or picturizations of monuments to show the size, color, nature, or quality of respondents' products which do not accurately reflect the actual size, color, nature, or quality of the monuments so illustrated.

It is fllrther 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.

Syllabus 33F. T. C.