Specialty Accounting Supply Manufacturers Ass'N

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IN THE :MA'ITER OF SPECIALTY ACCOUNTING SUPPLY MANUFACTURERS ASSOCIATION ET AL.

COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATIO~ OF SEC. 15 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 4538. Complaint, Dec. 11, 1941!-Decision; Sept. 9, 191/~ Where some 30 concerns, members of their unincorporated trade assoclationd engaged In the manufacture and Interstate sale and distribution of "prlnte stationery," l. e., (1) sales books, (2) continuous forms for use in billl~g machines, typewriters, or other office equipment, and (3) autograph c se In registry stationery consisting of multiple sets of business forms for u d business recording machines; and in competition among' themselves a\ with jobber and subjobber sellers of such products, except insofar as sue competition had been restrained or eliminated as below set forth- d (a) Agreed and conspired among themselves to organize and maintain, a~ did maintain, an unlawful combination to eliminate competition In t : sale and distribution of their "printed stationery;" and in pursuanc thereof- td (1) l\lade use of their said trade association as an Instrument for their sa joint purpose and action; dl· (2) Agreed to and dld concertedly fix and maintain prices, terms, and con 11 tlons of sale, and agreed· to refrain from selllng their products to jobber and fiubjobbers who failed to observe and maintain such agreed prices. terms, and conditions; and agreed to and did make use of esplonag:• coercion, and cooperation In dealing with such jobbers and subjobber d with Intent and effect of enforcing such adherence; and exchanged 90 circulated lists of "recognized" jobbers and dealers; 9 (3) With Intent and effect of diverting trade from nonmember cmnpetlt~u: gave special and valuable inducements to customers of nonme~ber Ilia nu· facturers while denying such Inducements to customers of member IJIO d facturers; and operated "bogus Independents" under the sponsorship a~p direction of certain of their' o;,n. members through outright o,wnershl • financial and contractual affiliations, and otherwise; to ( 4) Allocated and divided business among themselves; and entered I~on cross-licensing agreements and other licensing arrangements In connectl to with the claims of certain of their number under patents, pursua~t0119 which they agreed that they would maintain prices, terms, and condJti of sale; n (5) Agreed to and did bold meetings under the auspices of their assocla~~t~ and through it and Its officers, etc., cooperated with one another and ts ac • their jobbers and subjobbers in furthering and carrying out t h e practices, and policies above set forth; . ·t(eS (6) Agreed to and did cooperate with each other In utilizing the factll ·ice and agents of their association In formulating and using "open pltlte plans" and "reporting plans," pursuant to which they made known to 1 Amended, SPECIALTY ACCOUNTJING SUPPLY MFRS. ASSO. ET AL. 431 430 Syllabus secretary, other agents, and each other, for dissemination among them, information concerning the Intimate detail~. :of their business transactions, Including names and addresses of their customers, volume of production, sales and shipments,lists of prices to be quoted and charged on current and future sales, and the prices obtained on past transactions; and opened up their books for examination by their common agents; and (7) Through said filing of prices, quotations, and other information, and intimate business details, Including sales of individual members and prices at Which made, and said opening of their books and records, entered into and carried out an agreement and understanding that they would adhere to their price lists or price quotations and modifications thereof, :filed and distributed as above set forth, until and unless Intention to depart therefrom Was given to their competitors by similar filing and distribution of other price lists, etc. ; and lVhere eleven of said manufacturing members, pursuant to and in furtherance of aforesaid agreements- (b) Acted collusively between and among themselves through collective discussion of bids and prices In advance' of their submission and allocating particular orders through agreement that the one of their number first receiving favorable consideration from any prospective purchaser would Inform the others, and with the pnderstandlng that others would be compensated In turn by similar reciprocal treatment; with intent and effect of frustrating honest rivalry, avoiding and preventing competition, deceiving buyers generally, and preventing consideration by them of genuinely competitive bids or prices, while attempting to keep up an appearance of competition and making false claims with regard thereto in the. submission of bids; \Vtth tendency and effect of unduly restraining and suppressing competition In sale and distribution of "printed stationery" and depriving the public of the benefit of competition among themselves and between them and their competitors:

lleld, That such acts and practices, as above set forth, were all to the prejudice of the public and competitors, and bad a dangerous tendency to and did actually suppress and lessen competition, placed In them power to control and enhance prices, unreasonably restrained commerce in said "printed stationery," and constituted unfair methods of competition therein. Mr. Everett~ Macintyre for the Commission.

lhe two concerns of 1Vimton, Stratwn & Shaw, of Chicago, Ill., and & Sher, of 'Vashington, D. C., for Specialty Accounting SupplyI. ~ayer ~ anufacturers Association, and in case of former firm for 0. L. foore, secretary of aforesaid association.

. J/ ayer, Meyer, A. ustri(Jffl, & Platt, of Chicago, Ill., for Acme Reg- ~ster Co., Bonnar-Vawter Fanform Co., Stephen Greene Co., Ham- Ilton Autographic Register Co. and The Rotary Printing Co., and ~ong with SteaT"JUJ & McBride, of Chicago, Ill., for The ·wallace ress, Inc.

~Doran, /{line, OoBgrove, Jeffrey & Russell, of Topeka, Kans., for dams Bros. Sales Book Co.

ll 11'i8h, Richardson & Neave, of New York City, for American Sales Ook Co. and Cosby-'\Virth Manifold Book Co. 432 FEDE.RAL TRADE COMMISSION DE.ClSIONS COD!>laint 35F.T.C· Mr. George A. McLaughlin, Mr. WAH. McLmtghlin and Mr. C. S. McLaughlin, of Boston, Mass., for Atlantic Register Co. and C. W. Potter Co. · Leech & Radue, of 'Vashington, D. C., and Mr. Thoma.rJ J. By~ and Cooper, Kerr & Dunham, of New York City, for Autographic Register Co.

Mr. G. Ridgely Sappington, of Baltimore, Md., for Baltimore Sales Book Co.

Sloan & 'Sloan, of Philadelphia, Pa., for Craft Sales Book Co., Inc£ Toulmin & Toulmin, of Dayton, Ohio, and Mr. John M. MCMon, 0 '\Vashington, D. C., for Egry Register Co.

Boyd, Brooks & Wickhr.mn, of Cleveland, Ohio, for ,V. S. GilkeY Printing Co.

Jenki-ns & Olson, of Springfield, Ill, for Hanna Register Co. Mr. Abraham Greenspan, of Holyoke, Mass., for Philip Hano Co., Inc.

Mr. F. W. Andrews, of Alliance, Ohio, for McCaskey Register Co., and along with Moore & Moore, of Lisbon, Ohio, for Lisbon Sales Book Co.

lVood, Crump & Rogers, of Los Angeles, Calif., for Los Angeles Register & Printing Co.

Nieberding & Nieberding, of Cincinnati, Ohio, for The Miami Sys· terns Corporation. · Mr. Raymond H. Dresser, of Sturgis, Mich., for National Carbon Coated Paper Co. . Newton, Brickett & lV entworth, of Boston, Mass., for The Potter Press. · Heller, 'Ehrman, White & 11/cAulitfe, of San Francisco, Calif., for Schwabacher-Frey Co. · Mr. lV. R. Morris, of Shelby, Ohio, for Shelby Salesbook Co. Bostwick & Bostwick, of Chardon, Ohio, for The Snapout ForJllS Co.

E. H. & lV. B. Turner and Mr. Harry N. Routzohn, of Dayton, Ohio, for The Standard Register Co. . Morrlson, Ilohfeld~ Foerster, Shuman & Clark, of San Francisco, Calif., and Mr. Henry B. Weaver, of Washington, D. C., for Sunset· McKee Sales Book Co.

Chritton, Wiles, Davies, Hirschl, Schroeder & Merriam and Pa1lh Hurd &Reichmann, of Chicago, Ill., for United Autographic Registe~ Co.

AMENDED Complaint Pursuant to the provisions of the Fed~ral Trade Commission .Actj and by virtue of the authority vested in i_t by said act, the Federa SPE·CIALTY ACCOUNTING SUPPLY MFRS. ASSO. E.T AL. 433 '' 430 Complaint trade Commission, having reason to believe that the persons, partnerships, and corporations named in the caption hereof, and hereinafter described and referred to as respondents; have violated the provisions of Section 5 of the said ~,tct; and it appearing to the Commission that a Proceeding· by it in respect thereof would be in the· public interest, hereby issues its amended complaint, stating its charges in that respect as follows:

PARAGRAPH 1. Respondent, Specialty Accounting Supply Manufac- ~Urers Association, hereinafter referred to as respondent association, 18 an unincorporated, voluntary trade association, organized to promote the mutual interests of its members. It was organized in 1933. Its ~eadquarters now are, and have been for several years, in the offices of lts secretary, respondent, 0. L. Moore, 208 South Lasalle Street, Chicago, Ill., who is now and has for many years maintained and carried on a business of organizing, managing and directing the affairs {)f trade associations and groups in various industries, including the lllanufacturers and sellers of "printed stationery" (as it is hereinafter described and defined in par. 4 hereof) and their trade association, the Specialty Accounting Supply Manufacturers Association. The Specialty Accounting Supply ·Manufacturers Association serves its lllembers as an instrument or vehicle for their joint and cooperative ll~!tion. On and since July 1, 1939, its membership hns included prachcaUy all manufacturers and sellers of sales books and continuous form sales records stationery, located and doing business in this country, 30 of whom are named as respondents in the caption hereof. From time to time its membership has included other persons, partnerships, and corporations engaged in like pursuits.

PAR. 2. The manufacturers of sales books and other forms of "printed stationery" (as it is hereinafter described and defined in par. 4 hereof) llained in the caption hereof as respondents, and hereinafter referred ~0 merely as manufacturing respondents, are more;fully described as .tollows:

.Acme Register Co. is a Delaware corporation, with its principal place of business at 413 South Fifth Street, Minneapolis, Minn . . A.dams Bros. Sales Book Co. is a Kansas corporation, with its prin .. Clpal place of business ut 200 Jackson Street, Topeka, Kans. ~american Sales Book Co., Inc., is a Delaware corporation, with its trlllcipal place of business at 3000 Highland Avenue, Niagara Falls, ~~. Y.

Autographic Register Co. is a New Jersey corporation; with its Principal place of business at 1000 Clinton Street, Hoboken, N. J. Atlantic Register Co~ is a Massachusetts corporation, with its princil)al place of business at 144: Moody Street, 'Valtham, Mass. 434 FEDERAL TRADE COMMISSION DE·ClSIONS Complaint 35F.T.C· Baltimore Sales Book Co. is a Maryland corporation, with its prin· cipal place of business at 3120 Frederick Avenue, Baltimore, }!d. Bonnar-Vawter Fanform Co. is a Delaware corporation, with principal place of business at 1717 East Thirtieth Street, Cleveland, Ohl~ . . . Cosby-Wirth Manifold Book Co. is a Minnesota corporation, with its principal place of busin~ss located at 628 Stinson Boulevard, Minneapolis, Minn. . Craft Sales Book Co., Inc., is a Pennsylvania corporation, with Its principal place of business at 2210 Cambria Street, Philadelphia, Pll· Egry Register Co. is an Ohio corporation, with its principal place of business at 429 East Monument A venue, Dayton, Ohio. • . W." S. Gilkey Printing Co. is an Ohio corporation, with its principal place of business at 1138 West Ninth Street, Cleveland, Ohio. . Stephen Greene Co. is a Pennsylvania corporation, with its princi· pal place of business at Thirty-fourth and Market Streets, Philadel· phia, Pa. . Hamilton Autographic Register Co. is an Ohio corporation, WI.tb its principal place of business at 802 Symmes A venue, Hamilton, 0~ 10 i Hanna Register Co. is an Indiana -corporation, with its principa place of business at Springfield, Ill. . Philip Hano Co., Inc., is a Massachusetts corporation, with its prin· cipal place of business at Sargeant Street, Holyoke, Mass. . 1 Lisbon Sales Book Co. is an Ohio corporation, with its principa place of business at Maple Street, Lisbon, Ohio. Roscoe 1\I. Breeden is an individual, doing business under tl~e ~r~ name of Los Angeles Register and Printing Co., whose prlllClP 11 place of business is 428 Boyd Street, Los Angeles, Calif. . . 111 McCaskey Register Co. is an Ohio corpo~ation, with its prlllC1P place of business at South Union Avenue, Alliance, Ohio. . The Miami Systems Corporation is an Ohio corporation, with 1t; principal place of business located at 2735 Colerain Street, Cincinnati, Ohio.

National Carbon Coated Paper Co. is a Michigan corporation, with its principal place of business located at Sturgis, 1\fich,/ 111 The Potter Press is a Massachusetts corporation, with its princip place of business located at 515 South Street, Waltham, Mass. . 1 C. \y. Potter, Inc., is a ~Iassachusetts corporation, with its princlpa place of business located at 1441\Ioody Street, Waltham, 1\Iass. . l The Rotary Printing Co. is an Ohio corporation, with its princ1P11 place of business located at Norwalk, Ohio. SPE·CIALTY ACCOUNTING SUPPLY MFRS. ASSO. E.T AL. 435 .43o Complaint Schwabacher-Frey Co. is a corporation, the place of whose incor- Poration is not known to the. Commission, with its principal place of business at 735 Market Street, San Francisco, Calif. Shelby Salesbook Co. is an Ohio corporation, with its principal Place of business at Shelby, Ohio.

'!'he Snapout Forms Co. is an Ohio corporation, with i.ts principal Place of business at Chardon, Ohio.

'lhe Standard Register Co. is an Ohio corporation, with its 'princi- Pal place of business at 626 Albany Street, Dayton, Ohio. Sunset-McKee Sales Book Co. is a California corporation, with its Principal place of business at 2101 Livingston Street, Oakland, Calif. . United Autographic Register Co. is· an Illinois corporation, with lts Principal place of bu~iness at 5000 South California Avenue, Chicago, Ill.

'lhe Wallace Press, Inc., is an Illinois corporation, with its princi- Pal place of business at 730 West Monroe Street, Chicago, Ill. PAR. 3. Manufacturing respondents in the regular course of their business in the sale and distribution of sales books and continuous forms, and sales records blanks, cause the same to be shipped and t~ansported from the various points of production in certain respech"e States through and into other States of the United States. They are in competition among themselves and with jobbers and subjobbers ~ho resell such products to customers except insofar as such competition has been hindered, frustrated, lessened, restricted, restrained Or eliminated as alleged in paragraphs 5 and 6 hereof. Respondent association is not engaged in commerce but is engaged in aiding and cooperating with manufacturing respondents in carrying out Said. unlawful methods as alleged herein, which directly and sub- !ito.ntially affect competition among its members. " PAR. 4. The commodity involved here is generally described as .Printed stationery" used chiefly for making records of sales and other business transactions. Embraced in such stationery are sales books, continuous forms consisting of multiple sets. of business forms for use in billing machines, typewriters, or other office equipment, and autographic register stationery consisting of multiple sets of business forms for use in autographic or credit registers and other business re· cording machines, all for making hand-written and machine records of Various business transactions. Each of the manufacturing respond- ~nts produces and sells at least one of the types of stationery de· scribed. For convenience, all forms of the three types of the comlnodity are referred to hereinafter merely as "printed stationery." PAR. 5. For more than ten years last past, and continuing to the llresent time, ·respondents have cooperated. confederated, combined, 436 FEDEUAL TRADE COMMISSION DECISIONS Complaint 35 F. '1'. C.. agreed and conspired between and among themselves to organize and maintain, have organized and maintained, and do now maintain an unlawful combination among and between themselves to hinder, frusd trate, suppress, lessen, restrain, and eliminate competition in price an otherwise in the sale and distribution of "printed stationery" in the course of their aforesaid commerce among and between the various States.

Pursuant to and in furtherance of the aforesaid cooperation, co~· federation, combination, agreement, and conspiracy, respondents, 111 cooperation between and among themselves have- . 1. Organized and 9perated .respondent Specialty Accounting Sup· ply Manufacturers Association as an unincorporated, voluntary tr~de association to promote the mutual interests of the manufacturing respondents and to serve them, and they no~ use it as an instrume~t or vehicle for their joint and cooperative purpose and action. 111 hindering, frustrating, suppressing, lessening, restraining, and e~un· inating competition in price and otherwise in the sale and distribu· tion of "printed stationery" in commerce among and between the various States.

2. Agreed to fix and maintain, and have fixed and do now conf certedly maintain prices, terms and sales conditions in the sale 0 ''printed stationery." . . . d 3. Attempted to keep up an appearance of genume competition an and made false claims regarding same, in the submission of· bids ~0 purchasing officials of the Federal Government, to awarding auth~n· ties of other governmental units or subdivisions and in the submissi?n of price quotations to buyers of "printed stationery" generally, whie in reality they acted collusively between and among themselves 111 an effort to frustrate and with the effect of frustrating honest rival~' of avoiding and preventing competition, deceiving purchasing ~ • cials, awarding authorities and buyers generally, and of preventing consideration by purchasing officials, awarding authorities an~ .bY buyers of "printed stationery" generally, of genuinely competJUV~ bids or price quotations. All of this has been accomplished in pard by respondents and groups of respondents who met and discusse bids and prices in advance of the date or dates on which they kne'\'9' they were to submit bids or price quotations to purchasing officials: awarding authorities of the Federal Government and other govern; mental units and to buyers of "printed stationery" generally. .t\d such meetings and in such discussions respondents decided and agre~ upon the use of plans, schemes or devices by which the one of their number who first received favorable consideration from any prospe~: tive purchaser of "printed stationery" would inform other resp00 SPE.CIALTY ACCOUNTING SUPPLY MFRS. ASSO. E.T AL. 437 I' Complaint ents of that £act and all other respondents would then submit to such Prospective purchaser or purchasers o£ "printed stationery" higher but noncompetitive bids or price quotations. The purpose and effect of this procedure was to allocate particular awards or orders to the ~particular respondents who had first received favorable consideration from any particular prospective purchaser as to any particular Prospective purchase or order o£ "printed.stationery," it being understood that each of the other respondents would be compensated in turn by similar and reciprocal treatment whenever one of them initiated or originated favorable consideration on the "part o£ any other Prospective purchaser as to any other particular prospective purchase or order of "printed stationery."

4. Agreed to enter into, and have entered into, carried out and are now carrying out, understandings and agreements to the effect that the manufacturing respondents refrain from selling printed stationery to jobbers and subjobbers who fail to observe, adhere to and maintain the prices, terms and conditions of sale as agreed upon and fixed by the manufacturing respondents and jobbers. · 5. Agreed to adopt, and have adopted and used and are now using, ~spionage, coercion and cooperation in dealing with jobbers and sub- Jobbers for the purpose and with the effect of enforcing adherence to ~he prices, terms, and conditions o£ sale o£ "printed stationery" as :ted by agreement and understanding between and among the lllanufacturing respondents, their jobbers and subjobbers. 6. Given special and valuable inducements in price and otherwise to customers o£ manufacturers not members o.f the combination, while at the same time denying and withholding such inducements from c~stomers of the manufacturing respondents, for the purpose and \\'lth the effect of diverting trade to themselves from competing man- ~!acturers of "printed stationery'' not members o£ respondents' com- Ination. · . · t' 7. Operated bogus independents under the sponsorship and direct ton of respondent American Sales Book Co. and certain other of he manufacturing respondents through outright ownership, financial and contractual aflUiations and otherwise.

8. Allocated to and divided among the manufacturing respondents l>particular lots or pieces of business and the business of particular PUrchasers of "printed stationery."

9. Exchanged and circulated lists o£ "recognized" jobbers and dealers of "printed stationery."

., 10, Entered into cross license . arrangements and other licensing ~rra.ngements in connection with claims of certain o£ the manufactur- Ing respondents under patents, pursuant to which arrangements the Complaint 35F. T.C.

manufacturing respondents sought to and did agree with each other that they would uphold and maintain prices, terms and conditions of sales of "printed stationery."

11. Agreed to hold and have held meetings, from time to time, under the auspices and supervision of respondent, 0. L. Moore, and other representatives and agents of respondent association, during the course of which and at other times, respondent associations, its ofli· cers, directors, and other agents cooperated with and assisted the manufacturing re~pondent;;, their jobbers and subjobbers in furthe;· ing and carrying out the unlawful acts, ·practices and methods heretn set forth. · 12. Agreed to cooperate with each other in utilizing, and have co· operated with each other and 1n connection therewith utilized, the facilities and offices of the respondent association and respondent, 0. L. Moore, and other agents of respondent association, in forrnul.at· mg and cooperatively using "Open Price Plans" and "Reporttng Plans," pursuant to which the variotls manufacturing respondent~ have advised and informed respondent, 0. L. Moore, other agents~, respondent association and each other concerning the intimate detat~~ of their respective business· transactions, including names and. 11 d dresses of their respective customers, volume of production, sales and shipments, lists of prices to be quoted and charged on current an future sales transactions and the prices obtained on past transactions, which information and advice has in turn been disseminated bY respondent 0. L. Moore and other agents and employees of respondent association to and among various manufacturing respondents. 13. Reported, filed, or exchanged and are now reporting, filing, or exchanging between or among themselves intimate details of tr~ns· actions handled by the manufacturing respondents and transact1? 119 expected to be handled by the manufacturing respondents, includtng information as to prices, price lists, bids or price quotations. 14. Opened up books and other records of the manufacturing rr spondents for examination by their common agents, and reported~ filed and exchanged between and among the manufacturing respo~ ents, through common agents and otherwise, information regardt~"'11 the sales of individual manufacturing respondents, including \ 1e prices at which such sales are made for the purpose and with t 1e effect of securing a collective and cooperative comparison and cont· fl.1;1'd eratwn. t 11rou!!h common a!!ents and otherwise of the pnce. s ~ u - k'n111which the manufacturing respondents made sales and are ma. "' sales with the price quotations previously announced by the same manufacturing respondents.

I, SPECIALTY ACCOUNTING SUPPLY MFRS. ASSO. E.T AL. 439 Findings PAn. 6. The aforesaid combination, and the doing and performing Df the acts and things, and the use of the methods set forth in the Preceding paragraphs hereof tend to have, have had, and now have, ~he effect of depriving the public of the full benefit of competition 111 commerce among the manufacturing respondents and between and among the manufacturing respondents and between them and their competitors .

. PAn. 7. The acts, practices, methods, agreements, and combina- ~10~ of the respondents, as hereinbefore alleged, are all to the prejf chce of the public; have a dangerous tendency to and have actually rustrated, hindered, suppres.sed, lessened, restrained and eliminated ~ompetition in the sale of printed stationery in commerce within the llltent and meaning of the Federal Trade Commission Act; have the caparity and tendencv to restrain unreru;onably, and have restrained ~lllreasonably, such dommerce in said products; have a dangerous ben~ency to create in respondents a monopoly in the sale and distri- Utlon of such products and constitute unfair methods of competition tllld unfair acts and practices in commerce within the intent and l11meaning of Section 5 of the Federal Trade Commission Act. REPORT, FINDINGs AS TO THE Facts, AND Onder tl Pursuant to the provisions of the Federal Trade Commission Act, le Federal Trade Commission on December 11, 1941, issued and served an amended complaint in this proceeding upon respondents llanJ.ed in the caption hereof, charging them with the use of unfair ~ethods of competition in commerce in violation of the provisions () Section 5 of said act. After issuance of the said amended com- Naint and filing of the respondents' answers, the Commission, by ~rder entered herein, granted the motion of respondents' American ~ales Book Co., Inc., Autographic Register Co., Baltimore Sales l3 °0k Co., Bonnar-Vawter Fanform Co., Cosby-,Virth Manifold 'l'~k Co., Egry Register Co., Hanna Register Co.,_ The Potter Press, .A.. e Snapout Forms Co., The Standard Register Co., and United. lltographic Register Co., for permission to withdraw said answers ~.nd to substitute therefor answers admitting all the material allega- 1?ns of fact set forth in the said amended complaint. The Com- ~lssion also granted the motion of respondents Specialty Accounting .A..Upply Manufacturers Association, 0. L. Moore, Acme Register Co., Cdarns Bros. Sales Book Co., Atlantic Register Co., Craft Sales Book o., 'V. S. Gilkey Printing Co.; Stephen Greene Co., Hamilton Autoraphic Register Co., Philip Hano Co., Inc., Lisbon Sales Book Co., osc~e M. Breeden, an individual, doing business under the firm name 440 FEDE.RAL TRADE COMMISSION "DE-CISIONS Findings 35F. t(.C • . of Los Angelo Register & Printing Co., McCaskey Register Co., The Miami Systems Corporation, National Carbon Coated Paper Co., C. W. Potter, Inc., The Rotary J>rip.ting Co., Schwabacher-Frey Co., Shelby Salesbook Co., Sunset-McKee Sales Book Co., and The Wal· lace Press, Inc., for permission to withdraw their said answers and to substitute therefor answers admitting all the material allegations of fact set forth in said amended complaint except the allegations contained in subparagraph 3 of paragraph 5 of said amended co~d plaint, which they neither admitted nor denied, but stating in sal substitute answers that they lacked knowledge of the facts relating\~ the allegations last referred to. All respondents further waived at intervening procedure and hearing as to said facts and consente.d th~ the Commission may, without trial and without the taking of evl· dence, make and enter its findings as to the facts, including inferences which it may draw therefrom and its conclusions based thereon· Thereupon said substitute admission answers were duly filed in t~e offices of the Commission. Thereafter this proceeding came on ~~ due course for final hearing before the Commission on the sal amended complaint, and the said substitute admission answers of the respondents, and the Co:r;nmission having duly considered the matt~~ and being now fully advised in the premises, finds that this procee ing 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 FACI'S PARAGRAPH 1. Respondent, Specialty Accounting Supply :Manu~ac~ turers Association, hereinafter referred to as respondent Associat1°:' is an unincorporated, voluntary trade association organized in 1933 ~ promote the interests of its members. Its headquarters now are ant have been for several years, in the offices of its secretary, responde? ' 0. L. Moore, 208 South Lasalle Street, Chicago, Ill. Said Associat1011 serves its members as an instrument or vehicle for their joint and co~Pd erative action. On and since July 1,1939, its membership has in~lu ~s practically all manufacturers and sellers of sales books and continuo 1form sales records, stationery, and machines in which such stationer is used, who are located and doing business in this country, 30 o~ W"h~~ are named as respondent in this proceeding. From time to time 1 • membership has included other per~ons, partnerships, and corpora tions engaged in like business. . Respondent, 0. L. Moore, who does now, and has for several years managed and directed the affairs of respondent Association, and served as its secretary, does now and has for many years maintaine~ aJ1 SPE·CIALTY ACCOUNTING SUPPLY MFRS. ASSO. E.T AL. 441 430 Findings ~a~ried on a business of organizing, managing, and directing the afhalrs of trade associations and groups in various industries, includingt .e manufacturers and sellers of "printed stationery," the commodity "'1th which this proceeding is concerned as it is hereinafter described and defined in paragraph 2 hereof. · The manufacturers of sales books and other forms of "printed stationery" (as it is hereinafter described and defined in par. 2 hereof) named in the caption hereof as respondents, and hereinafter referred to as manufacturing respondents, are more fully described as follows: Acme Register Co., is a Delaware corporation, with its principal Place of business at 413 South Fifth Street, Minneapolis, Minn. ~d.ams Bros. Sales Book Co., is a Kansas corporation, with its Ptincipal place of business at 200 Jackson Street, Topeka, Kans. ~rnerican Sales Book Co., Inc., is a Delaware corporation, with its ~rincipal place of business at 3000 Highland Avenue, Niagara Falls, ·Y.

. ~utographic Register Co., is a New Jersey corporation, with its Principal place of business at 1000 Clinton Street, Hoboken, N. J . . Atlantic Register Co., is a Massachusetts corporation, with its prin- Cipal place of business at 144 Moody Street, 'Valtham, Mass . . Baltimore Sales Book Co., is a Maryland corporation, with its prin- <'IPal place of business at 3120 Frederick Avenue, Baltimore, Md. ~onnar-Vawter Fanform Co., is a Delaware corporation, with its llMncipal place of business at 1717 East ·aoth Street, Cleveland, Ohio . . Cosby-Wirth Manifold Book Co., is a Minnesota corporation, with· ~t~ Principal place of business at 628 Stinson Boulevard, Minneapolis, ~'finn. . ' ~raft Sales Book Co., Inc., is a Pennsylvania corporation, with its Pl'lncipal place of business at 2210 Cambria Street, Philadelphia, Pa. Egry Register Co., is an Ohio corporation, with its principal place Of business at 429 East Monument A venue, Dayton, Ohio . . \V. S. Gilkey Printing Co., is an Ohio corporation, with its prin- CIPal place of business at 1138 'Vest Ninth Street; Cleveland, Ohio . . Stephen Greene Co., is a Pennsylvania corporation, with its prin- ~IJ:lal place of business at Thirty-fourth and Market Streets, Philaelphia, Pa.

't llamilton Autographic Register Co., is an Ohio corporation~ with ~sh.Principal place of business at 802 Symmes Avenue, Hamilton, 10, .

llllianna Register Co., is an Indiana corporation, with its principal ace of business at Springfield, Ill.

p ~philip Harto Co., Inc., is a Massachusetts corporation, with its l'lncipal place of business at Sargeant Street, Holyoke, Mass. . Findings 35F. T.C.

Lisbon Sales Book Co., is an Ohio corporation, with its principal place of business at Maple Stre~t, Lisbon, Ohio. Roscoe M. Breeden, is an individual, doing business under the firm name of Los Angeles Register & Printing Co., whose principal place of business is 428 Boyd Street, Los Angeles, Calif. McCaskey Register Co., is an Ohio corporation, with its principal place of business at South Union Avenue, Alliance, Ohio. The l\liami Systems Corporation, is an Ohio corporation, with its principal place of business located at 2735 Colerain Street, Cincinnati, Ohio. . National Carbon Coated Paper Co., is a Michigan corporation, with its principal place of business located at Sturgis, Mich. The Potter Press, is a Massachusetts corporation, with its pri1icipal place of business located at 515 South Street, ·waltham, Mass. C. "\V. Potter, Inc., is a Massachusetts corporation, with its principal place of business located at 144 Moody Street, 'Valtham~ :Ma.ss. The Rotary Printing Co., is an Ohio corporation, with its prlllcipal place of business located at Norwalk, Ohio. Schwabacher-Frey Co., is a corporation, with its principal place of business at 735 l\larket Street, San Francisco, Calif. Shelby Salesbook Co., is an Ohio corporation, with its principal place of business at Shelby, Ohio.

The Snapout Forms Co., is an Ohio corporation, with its. principal place of business at Chardon, Ohio. . The Standard Register Company, is an Ohio corporation, with its principal place of business at 626 Albany Street, Dayton, Ohio. Sunset-McKee Sales Book Co., is a California corporation, with its principal place of business at 2101 Livingston Street, Oakland, Calif. · • United Autographic Register Co., is an Illinois corporation, "\"\"'ith its principal place of business at 5000 South California Avenue, Chicago, Ill.

The ·wallace Press, Inc., is an Illinois corporation, with its principal place of business at 730 'Vest Monroe Street, Chicago, Ill. PAR. 2. The commodity involved here, generally described ns "printed stationery," is used chiefly in making records o£ sales and other business transactions. · Embraced in such stationery are sales books, continuous forms consisting of multiple sets of business form1 for use in billing machines, typewriters, or other office equipment, an autographic register stationery consisting of multiple sets of business forms for use in autographic or credit registers and in other business recording machines, all for making hand-written or machine records ?f various business transactions. Each of the manufacturing respond· SPECIALTY ACCOUNTING SUPPLY MFRS. ASSO. E.T AL. 443 Findings ents produces and sells at least one of the types of stationery de- ~cribed. For convenience, all forms of the three types of the commodlty are referred to hereinafter merely as "printed stationery." "P. b rmted stationery" is an important item in commercial intercourse etween and throughout the several States of the United States and the District of Columbia, both as a commodity sold in commerce and as an aid to commerce in many other commodities. PAR. 3. Manufacturing respondents, in the regular course of their business in the sale and distribution of "printed stationery," sell and cause the same to be shipped and transported from the various points ~ ~production in various States into and through other States of the nlted States. In doing so they are in competition among themselves and with jobbers and subjobbers who resell such products to their respective customers and consumers except insofar as such com- Petition has been hindered, frustrated, lessened, restricted, restrained, or eliminated as found herein.

Respondent Association is not engaged in· the sale and shipment of "printed stationery" but it is employed by manufacturing respond- ~nts and engaged in aiding and cooperating with said manufacturlng respondents in the making of sales and shipments of "printed stationery" and machines in which the same is used in interstate commerce and in carrying out the unlawful acts, practices, policies and n1ethods as found herein and which substantially affect competition ntnong its members and with their competitors. PAR. 4. For more than ten years last past, and continuing to th~ Present time, respondents have cooperated, confederated, combined, agreed and conspired bet\Yeen and among themselves, to organize nnd maintain, have organized and maintained, and do now maintain, ~n unlawful combination among and between themselves to hinder, rustrute, suppress, lessen, restrain, and eliminate competition in price ~d otherwise in the sale and distribution of "printed stationery" in · ~ e course of their aforesaid commerce among and between the varlous States. Pursuant to, and in furtherance of the aforesaid cooperation, confederation, combination, agreement and conspiracy, respondents, in cooperation between and among themselves, have: (a) Organized and operated respondent Association as an unincorporated, voluntary trade association to promote the mutual inter- ~sts of the manufacturing respondents and to serve them, and which t?ey now use as an instrument or vehicle for their joint and coopera- .1\'e purpose and action in hindering, frustrating, suppressing, lessen- ~ng, restraining, and eliminating competition in price and otherwise ln the sale and distribution of "printed stationery" in commerce among and between the Yarious States.

Findings 35F. T.C.

(b) Agreed to fix and maintain, and have fixed and do now con~ certedly maintain, prices, terms and sales conditions in the sale of "printed stationery."

(c) Agreed to enter into, and have entered into, carried out and are now carrying out, understandings and agreements to the effect that the manufacturing respondents refrain from selling printed stationery ~ 0 jobbers and subjobbers who fail to observe, adhere to, and maintalll the prices, terms, and conditions of sale as agreed upon and fixed by the manufacturing respondents and jobbers.

(d) Agreed to adopt, and have adopted and used and are now using, espionage, coercion, and cooperation in dealing with jobbers and sub· jobbers for the purpose and with the effect of enforcing adherence to the prices, terms, and conditions of sale of "printed stationery" as fixed by agreement and understanding between and among the manufuc· turing respondents, their jobbers and subjobl:iers. . (e) Gave special and valuable inducements in price and other-w~se to customers of manufacturers not members of the combination, whlle at the same time denying 'and withholding such inducements fr?~ customers of the manufacturing respondents, for the purpose and Wltl the e:ll'ect of diverting trade to themselves from competing manufac~ turers of "printed stationery" not members of respondent~ combination.

(f) Operated bogus independents under the sponsorship and direc· tion of respondent American Sales Book Co. and certain other of th~ 111manufacturing respondents through outright ownership, financial an contractual affiliations and otherwise.

(g) Allocated to and divided among the manufacturing respondents particular lots or pieces of business and the business of particular pur· chasers of "printed stationery." d (h) Exchanged and circulated lists of "recognized" jobbers an dealers of "printed stationery." . ( i) Entered into cross license agreements and other licenslng arrangements in connection with claims of certain of the JJlanufac· turing respondents under patents, pursuant to which arrangements the manufacturing respondents sought to and did agree -;with each other~ that they would uphold and maintain prices, terms and conditions 0 sale in "printed stationery."

(j) Agreed to hold and have held meetings, from time to tiJlle, under the auspices and supervision of respondent, 0. L. Moore, and other representatives and agents of respondent association, during the course of which and at other times, respondent association, its officers, directors, and other agents cooperated with and assisted the manufacd turing respondents, their jobbers and subjobbers in furthering an carrying out the acts, practices, policies and methods herein set forth· Si'ECIALTY ACCQUNTI'NG SUPPLY MFRS. ASSO•. E.T AL. 445 Find logs (k) Agreed to cooperate with each other in utilizing, and have cooperatedgle faciliiieswithandeachofficesotherof theandrespondenti.n connectionassociationtherewithandhaverespondent,utilized, · .L. Moore, and other agents of respondent association, in formu- 1 atlng and cooperatively using "Open Price Plans" and "Reporting ~lans," pursuant to which the various manufacturing respondents av-e adv-ised and informed respondent 0. L. Moore, other agents of respondent association and each other concerning the intimate details of their respective business transactions, including names and addresses of their respective customers, volume of production, sales and ship- 11lents, lists of prices to, be quoted and charged on current and future ~al(:s transactions, and the prices obtained on past transactions, which ~formation and advice has in turn been disseminated by respo~d~nt · L. Moore and other agents and employees of respondent assocmtwn to and among various manufacturing respondents. ( l) Reported, filed, or exchanged and are now reporting, filing, or ~~changing between or among themselves the intimate details of part lcular transactions handled by the manufacturing respondents and transactions expected to be handled by the manufacturing respond- ~nts, including information as to prices, price lists, bids, or price quotations.

(m) Opened up books and other records of the manufacturing ~~spondents for examination by their common agents, and reported, ed, and exchanged between and among the manufacturing respond- ~nts, through common agents and otherwise, information regarding h7 sales of individual manufacturing respondents, including the J.:lrices at which such sales are made, for the purpose and with the ~~ect of securing a collective and cooperative comparison and con- ~ldh~ration through common agents and otherwise of the prices at "' Ich the manufacturing respondents made sales and are making Sales with the price quotations previously announced by the same lllanufacturing respondents.

th 'I'therefore the Commission infers, concludes; and finds that when 1.18e manufacturing respondents filed their current and future price 1 ~s, price quotations, and other information explaining or modi- the same with respondent, 0. L. Moore, as a· common agent, for rug; ls~ribution by him among their respective competitors, filed the t~hrnate details, including prices, of their respective sales transactio~s for similar distribution by said respondent, Moore, and opened 1 ~' 1 r books and records for examination by their common agents t '[Jor .the purpose and with the effect of making a cooperative comarlson between the prices received in actual sales transactions and ~09749m--43--vol.35----31 446 FEDERAL TRADE COMMISSION DE.CISIONS Findings 35F.T.C.

the price lists or price quotations and explanations or modifications of the same previously filed and distributed through said respondentj Moore, as their common agent, there existed under such circllmstances an agreement, understanding, or meeting of the minds of the man~d facturing respondents that they would and should adhere to t~1e sal f price lists or price quotations and explanations or modifications. 0 the same so filed and distributed until and unless notice of intention to depart therefrom was given to their competitors by similar filing and distribution of other and different price lists or price quotations, explanations, or modifications of the same. In addition to the foregoing acts, practices, policies, and methods participated in by all respondents, but pursuant to and in further· ance of the aforesaid agreements, understandings, cooperation, con· cert, and common course of action of all respondents, respondents, · American Sales Book Co., Inc., Autographic Register Co., Baltimo~e Sales Book Co., Bonnar-Vawter Fanform Co., Cosby-,Virth :Manl· fold Book Co., Egry Register Co., Hanna Register Co., The Potter Press, The Snapout Forms Co., The Standard Register Co., and United Autographic Register Co. have adopted and put into effect the following acts, practices, policies, and methods of competition: d Attempted to keep up an appearance of genuine competition .an made false claims regarding same, ·in the submission of bids to ~~r· chasing officials of the Federal Government, to awarding author1tle~ of other governmental units or subdivisions and in the submission ? price quotations to buyers of "printed stationery" generally, while 1n reality they acted collusively between and among themselves in an effort to frustrate, and with the effect of frustrating, honest rivah'Yt of avoiding and preventing competition, deceiving purchasing ~tli­ cials, awarding authorities, and buyers generally, and of preventing consideration by purchasing officials, awarding authorities, an~ .bY buyers of "printed stationery" generally, of genuinely compet1tl\'e bids or price quotations. All of this has been accomplished in pari by said respondents and groups of said respondents who met an discussed bids and price in advance of the date or dates on which they knew they were to submit bids or price quotations to purchasing otli· cials, awarding authorities of the Federal Government and other governmental units, and to buyers of "printed stationery" generall~ At such meetings and in such discussions respondents decided ·an agreed upon the use of plans, schemes, or devices by which the one of their number who first received favorable consideration from any prospective purchaser of "printed stationery" would inform other respondents of that fact, and all other respondents would then sub· mit to such prospective purchaser or purchasers of "printed statiJW SPE·CIALTY ACCOUNTING SUPPLY MFRS. ASSO. E.T AL. 447 430 Order ery" higher but noncompetitive bids or price quotations. The pur- Pose and effect of this procedure was to allocate particular awards or 'orders to the particular respondents who had first received favorable consideration from any particular prospective purchaser as to ~ny particular prospective purchase or order of "printed stationery," lt being understood that each of the other respondents would be compensated in turn by similar and reciprocal treatment whenever one of them initiated or originated favorable consideration on the Part of any other prospective purchaser as to any other particular Prospective purchase or order of "printed stationery." PAn. 5. The aforesaid understandings, agreements, combinations, and conspiracies, and the things done thereunder and pursuant thereto and in furtherance thereof as hereinabove found, have had, ~nd now have, the tendency and effect of unduly lessening, restrict~ lng, restraining, and suppressing competition in the sale and distribution of "printed stationery," and of depriving the public of the full benefit of competition in commerce between and among the Inanufacturing respondents and between them and their competitors. CONCLUSION The acts and practices of respondents as herein found, are all to the prejudice of competitors of respondents, and of the public, and have a dangerous tendency to, and have actually frustratec;t, hindered, suppressed, lessened, restrained, and eliminated competition in the ~ale of "printed stationery'' in commerce as "commerce" is defined 111 the Federal Trade Commission Act; have placed in respondents the power to control and enhance· prices; have unreasonably re~ strained such commerce in "printed stationery"; and constitute unfair lnethods of competition in commerce within the intent and meaning of Section 5 of the Federal Trade Commission Act. ORDER TO CEASE ~ND DESIST .This proceeding having been heard by the Federal Trade Comlllission upon the. amended complaint of the Commission and the ~answers of the respondents, in which answers respondents, American ales Book Co., Inc., Autographic Register Co., Baltimore Sales llook Co., Bonnar-Vawter Fanform Co., Cosby-'Virth :Manifold Book ~o., Egry Register Co., Hanna Register Co., The Potter Press, The • n~pont Forms Co., The Standard Register Co., and United Autographic Register Co., admit all of the material allegations of fact set forth in said amended complaint, and respondents, Specialty, !.ccounting Supply Manufacturers Association, 0. L. Moore, Acme 448 FEDERAL 'l,'TRADE COMMISSION DECISIONS Order 3rif.'.l'.C· Register Co., Adams Dros. Sales Dook Co., Atlantic Register Co., Craft Sales Dook Co., Inc., ·w. S. Gilkey Printing Co., Stephen Greene Co., Hamilton Autographic Register Co., Philip Hano Co., Inc., Lisbon Sales Book Co., Roscoe M. Dreeden, an individual, doing business under the firm name of Los Angeles Register & Printing Co., McCaskey Register Co., The Miami Systems Corporation, :Na· tiona! Carbon Coated Paper Co., C. vV. Potter, Inc., The Rotary Printing Co., Schwabacher-Frey Co., Shelby Salesbook Co., Sunset· McKee Sales Dook Co., and Th~ Wallace Press, Inc., admit all the material allegations of fact set forth in the said amended complaint, except the allegations contained in subparagraph (3) of paragraph .5 of said amended complaint, which subparagraph they neither adnnt nor deny, but state in connection therewith that they lack knowledge of the facts relating to the charges therein contained. All respond· ents waived all intervening procedure and hearing as to said facts and consented that the Commission may, without trial, and without the taking of evidence, make and enter its findings as to the facts, including inferences which it may draw therefrom, and its conclu· sions based thereon, and issue and serve upon them an order to cea~~ and desist from any methods of competition alleged in the sal amended complaint; and the Commission having made its findings ?~ to the facts, and having stated its conclusion that all of the sal respondents have violated the provisions of Section 5 of the Federal Trade Commission Act.

It is ord~red, That the respondents, Specialty Accounting Sup~ly Manufacturers Association, an unincorporated association hereinafter referred to as "respondent Association," its officers, directors, agents, and employees and 0. L. Moore, individually, and as an o~· ficer of Speciality Accounting Supply Manufacturers Association, his representatives, agents, and employees and the following persons, firms, and corporations, individually, and as members of the Specialty~ Accounting Supply Manufacturers Association, hereinafter referred to as "manufacturing respondents": Acme Register Co., a corpora· tion; Adams Dros. Sale~ Dook Co., a corporation; American Sales Book Co., Inc., a corporation; Atlantic Register Co., a corporativn; Autographic Register Co., a corporation; Baltimore Sales Dook Co., a corporation; Donnar-Vawter Fanform Co., a corporation; Cosby· 'Virth Manifold Dook Co., a corporation; Craft Sales Dook Co., I~c., a corporation; Egry Register Co., a corporation; ·w. S. Gilkey Print· ing Co., a corporation; Stephen Greene Co., a corporation; Hamilton Autographic Register Co., a corporation; Hanna Register Co., a cor~ poration; Philip Hano Co., Inc., a corporation; Lisbon Sales 13°0• ·Co., a corporation; McCaskey Register Co., a corporation; The ]!b· SPECIALTY ACCOUNTING SUPPLY MFRS. ASSO. E.T AL. 449 43o urder ~Ini Systems Corporation, a corporation; National Carbon Coated ·. a per Co., a corporation; The Potter Press, a corporation; C. ,V. Potter, Inc., a corporation; The Rotary Printing Co., a corporation; Schwabacher-Frey Co., a corporation; Shelby Sales book Co., a corporation; The Snapout Forms Co., a corporation; the Standard Regl~ter Co., a corporation; Sunset-McKee Sales Book Co., a corporabon; United Autographic Register Co., a corporation; and The Wallace Press, Inc.; a corporation;. their respective officers, agents, repre~entatives, and employees; and Roscoe 1\f. Breeden, an individual, ~oing business under the firm name of Los Angeles Register & Printtn~ Co., and his representatives, agents, and employees, in connectio~ "'1th the offering for sale, sale, and distribution in commerce as "comlnerce': is defined in the Federal Trade Commission Act, of "printed stationery" for use in making records of sales and other business transa.actions, including sales books, continuous forms consisting of multiple sets of business forms for use in billing machines, typewriters, 0~ other office equipment, and autographic register. stationery con- Slsting of multiple sets of business forms for use in autographic or ~redit registers and other business recording machines for making andwritten or machine' records of various business transactions, or other stationery :for similar uses, do forth with cease and desist from entering into, continuing1 cooperating in, or carrying out, any comlnon course of action, agreement, understanding, combination, or ~onspiracy between and among any two or more of said respondents, ~r between any one or more of said respondents and others not parties ereto, to do or perform any of the following acts or practices. 1. Establishing, fixing, or maintaining prices, terms, or conditions of sale for "printed stationery," or adhering to, or promising to adhere to, the prices, terms, and conditions of sale so fixed. 2. Holding or participating in any meeting, discussion, or exchange of information among themselves or under the auspices of respondent Association, respondent 0. L. Moore, or any other medium or agency concerning proposed or future prices, terms, or conditions of Sale or concerning bids and prices in advance of the submittal of ·bids ~r Price quotations to purchasing officials, awarding authorities of the t ederal Government or other governmental units, or to any buyer Of" prmte . d stationery.. " · · ~· Arriving at the amount of any bid or price quotations to be sublnltted to purchasing officials of the Federal Government, to a warding ~Authorities of other governmental units or subdivisions, or to any llyer of "printed stationery'' through agreement, understanding, or eollusion with other bidders.

450 FEDERAL TRADE COMMISSION DE·CISIONS Order 35F. T. C.

4. Exchanging, distributing, or relaying among manufacturing respondents, information as to bids submitted or to be submitted to purchasing officials of the Federal Government or to awarding authorities of other governmental units or. subdivisions or to any buyer of "printed stationery," or submitting bids which are not bona fide, to such officials, agencies, or purchasers, for the purpose, or with the effect, of protecting or favoring any one or more of the manufacturing respondents or of eliminating competitive bidding. 5. Exchanging or circulating among respondent members or through respondent Association or any other medium or central agency, lists of "recognized" jobbers or dealers in "printed stationery," to protect or favor any one or more such jobbers or dealers or restrict the sale of "prinwd stationery" to jobbers and dealers so listed. . 6. Coercing, inducing, or persuading, by espionage, refusal .to sell, or other means, or so attempting to coerce, induce, or persuade, jobbers or subjobbers of "printed stationery" to adhere to or maintain the prices, terms, or conditions of sale as fixed by any of the manufacturing x·respondents and their jobbers or subjobbers. , 1. Giving special or valuable inducement!'t in price, or otherwise, to purchasers of "printed stationery" not customers of the respo~d­ cnts herein, while at the same time denying or withholding such 1nducements or valuable consideration from customers of the respond£ ents, for the purpose, or with the effect, of diverting trade to any 0d the respondents from other manufacturers or sellers of "printed stationery." .

8. Holding out or permitting any printing stationery concern to be held out and advertised as an independent business when, in fac_t, such concern is owned, operated, or controlled by any ol the rerNmonclents 9. Allocating or dividing among theniselves or anyone, any given lot or piece of business or the business of any given purchaser of "printed stationery'' which allocation or division has the tendency or effect of fixing prices or otherwise restricting, restraining, or cliJll~ inating competition iq the sale and distribution of "printed stationery."

10. Entering. into, continuing, or carrying out any licensing or cross-licensing arrangements in connection with claims of any of the manufacturing respondents under patents, for the purpose, or with the tendency or effect, of upholiding or maintainin()' prices, terms, or conditions of sale of "printed 'stationery." o 11. Exchanging, distributing, or relaying among manufacturing respondents or any of them, or through respondent Association, re~ SPECIALTY ACCOUNTJ1NG SUPPLY MFRS. ASSO. E.T AL. 451 43Q Order spondent 0. L. Moore, or through any other medium or central a~ency, price lists or other information showing current or future Prices, terms, or <(Onditions of sale, or information sh~wing current or future prices, terms, or conditions of sale of any particular re- . ~po~dent, or bid or price quotations submitted or to be submitted on any prospective piece of business.

12. Exchanging, distributing, or relaying among manufacturing respondents or any of them, or through respondent Association, respondent, 0. L. Moore, or any other medium or central agency, .inf?rrnation concerning prices charged particular customers or information. concerning v9lume of production, sales, or shipments of "printed stationery" where the identity of the manufacturer, seller, or purchaser can be determined through such information, and which has. the capacity or tendency of aiding in securing compliance with an- ~ounced prices, terms, or conditions of sale. 13. Formulating, establishing, putting into operation, continuing, or Using in any way, any "open price plan'' or "reporting plan" which has the tendency. or effect of depriving the public of any benefit of competition in price between and among the manufacturing respondents, or between any of them and any other manufacturer or seller Of" · · prmted statwnery." 14 .. Authorizing or permitting the examination of the books and other records of the manufacturing responuents by any agent of the ,respondents or any of them, to permit or make possible a collective or cooperative consideration, through any common agent of the respondents, of the prices at which any given manufacturing respondent has lnade sales, is currently making sales, or expects. to make sales, and a. comparison of the sales with the price quotations previously announced by such manufacturing respondents. · ' 15. Formulating or putting into operation any other practice or which has the purpose, or the tendency or effect, of fixing prices f1an . or "printed stationery" or otherwise restricting, restraining, or elim- Inating competition in the sale and distribution of such products. · J\. 16..Employing or utilizing respondent, 0. L. Moore, or respondent ~ ssociation or any other medium or central agency as an instrulent, vehicle, or aid in performing or doing any of the acts and Practices prohibited by this order.

It i.'J further ordered, That the respondents shall within 60 days after service upon them of this order, file with the Commission a .rep.ort in writing, setting forth in detail the manner and :form m \\'which they have complied with this order. 452 ' FEDERAL TRADE COMMISSION DECISIONS.' . Complaint 35 F. T. C