Joseph 0. Maggioni

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IN THE MATTER OF JOSEPH 0. MAGGIONI, JOSEPH S. CAFIERO AND MAD- ELINE CAFIERO, DOING BUSINESS AS L. P. MAGGIONI & COMPANY COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SUBSEC. (c) OF SEC. 2 OF AN ACT OF CONGRESS APPROVED OCT. 15, 1914, AS AMENDED BY AN ACT APPROVED JUNE 19, 1936 Docket 6129. Complaint, Feb. 6, 1944-Decision, Mar. 20, 1945 Where three partners engaged in packing and canning fish, oysters, shrimp and clams, and in the marketing, sale and distribution of said sea food products under their own brands and also under private or buyers' brands; selling (1) through a large number of legitimate intermediaries who acted as their agente and were paid commissions or brokerage fees; and (2) direct to a few buyers who were paid, directly or indirectly, commissions or brokerage fees on their own purchases of such sea food products- Paid or granted, directly or indirectly, commissions, brokerage or other compensation in lieu thereof, to buyers of a substantial portion of their said sea food products in other States:

Held, That such paying and granting, directly or indirectly, of commissions, brokerage or other compensation in lieu thereof, to buyers of said sea food products on their own purchases, an4 the acts and practices of said partners in promoting sales of sea food products by such payments to buyers, were in violation of subsection (c) of section 2 of the Clayton Act as amended.

Mr. Edwards. Ragsdale for the Commission.

Abrahams, Bouhan, Atkinson & Lawrence, of Savannah, Ga., for respondents.

Complaint The Federal Trade Commission having reason to believe that the parties respondent named in the caption hereof and hereinafter more particularly designated and described, since June 19, 1936, have violated and are now violating the provisions of subsection (c) of section 2 of the Clayton Act (U.S.C. Title 15, Sec. 13) as amended by the Robinson-Patman Act, approved June 19, 1936, hereby issues its complaint, stating its charges with respect thereto as follows:

PARAGRAPH 1. Respondents, Joseph 0. Maggioni, Josephs. Cafiero and Madeline Cafiero, are partners, doing business as L. P. Maggioni & Company, having their principal office and place of business located at 401 West Bay Street, Savannah, Ga.

PAR. 2. The respondents are now engaged, and for many years prior hereto have engaged, in the business of packing and canning fish, oysters, shrimp and clams (all of which are hereinafter called" Sea Food Products") and in the marketing, sale and distribution of such sea food products in its own name and for its own account for resale.

The respondents sell and distribute their sea food products through two separate and distinct methods: (1) through a large number of legitimate intermediaries who act as their agents in negotiating the sale of sea food Complaint 40 F. T. C.

products and for which services such intermediaries customarily are paid directly, or indirectly, commissions or brokerage fees; (2) through the sale of its sea food products direct to a few buyers who are paid, directly or indirectly, commissions or brokerage fees on their own purchases of such sea food products from the respondents.

The respondents to distinguish their sea food products from the sea food products sold by competitors, to facilitate sales utilize registered and unregistered trade-marks-and brands for the various sea food products it sells. These brands are generally known as packers' or sellers' brands. Representative of the respondents' brands are: Mermaid, Sea Zone, Daufuski, ·warsaw, Coosaw, Sambo, Port Royal, Fox Inn, Crown, Off Shore, Jekyl Island, Magico, 1\!aggioni, Magestic, English Ace.

Respondent also sells its sea food products under the labels or brands of its buyers, which brands or labels are generally known to the trade as private or buyers brands. Some of such buyers who incorrectly designate themselves as brokers also utilize registered and unregistered labels and brands, which labels and brands are utilized by the respective buyers in selling such buyers merchandise. Representative of respondents' buyers who purchase respondents' sea food products under their own buyer.s' brands or labels as well as under the sellers brands or labels is Wm. H. Stanley, Inc., of New York City, N.Y. This buyer purchases in its own name, and for its own account, large quantities of respondents' sea food products under its own registered private brand" Seaspray." RE-presentative of respondent's buyers who purchase in their own name and for their own account respondents' sea food products exclusi~ly under the sellers brands or labels are Haas-Guthman Co., Savannah, Ga. and Britt-Mc- Kinney Co., Inc., Greenville, S. C.

PAR. 3. The respondents, in the course and conduct of their said business, since June 19, 1936, have sold and distributed a substantial portion of their sea food products directly to buyers located in States other than the State in which the respondents are established, and as a result of said sales and the respondents' instructions such sea food products are shipped and transported across State lines to such buyers who are located in various States of the United States.

PAR. 4. The respondents since June 19, Hl3G, in connection with the interstate sale and distribution of sea food products in their own name and for their own account for resale, have sold such sea food products to buyers located in the various States of the United States other than the State where respondents are established and have been and are now paying or granting or have paid or granted, directly or indirectly, commissions, brokerage or other compensation or allowance or discounts in lieu thereof to buyers of said sea food products.

PAR. 5. The paying and granting by respondents, Joseph 0. l\1aggioni, Joseph S. Cafiero and l\IaJelinc Cafiero, partners, doing business us L. P. l\1aggioni & Company, directly or indirectly, of commissions, brokerage or other compensation anJ allowances or discounts in lieu thereof to the buyers of said sea food products, on their own purchases, and the acts and practices of the respondents in promoting sales of sea food products by paying to buyers, directly or indirectly, commissions, brokerage or other compensation and allowances or discounts in lieu thereof, as set forth above, are in violation of subsection (c) of section 2 of the Clayton Act, as amended.

L. P. MAGGIONI & CO. 243 241 Findings REPORT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of an Act of Congress entitled, "An Act to ~Upplement existing laws against unlawful restraints and monopolies, and or other purposes," approved October 15, 1914 (the Clayton Act), as a~ended by the Robinson-Patman Act, approved June 19, 1936 (U.S.C. !title 15, Sec. 13), the Federal Trade Commission on February 5, 1944, Issued and served its complaint in this proceeding upon the parties res~ondent named in the caption hereof, charging said respondents with Violating the provisions of subsection (c) of section 2 of said act as amended.

After the issuance of said complaint the respondents in due course filed a~swer to said complaint and denied that their acts and practices were in Vtolation of subsection (c) of section 2 of the Clayton Act as amended. Thereafter the respondents requested and received permission from the Commission to withdraw their original answer and to file in lieu thereof an answer dated September 29, 1944, which substitute answer admitted all material allegations of fact set forth in said complaint and waived all inter- Vening procedure and further hearings as to said facts. h Thereafter, this proceeding regularly came on for final hearing before t e Commission on the said complaint and substitute answer; and the ~ommission, having duly considered the same and being now fully advised ~n the premises makes this its findings as to the facts and its copclusion rawn therefrom.

FINDINGS AS TO THE FACTS PARAGRAPH 1. Respondents, Joseph 0. Maggioni, Joseph S. Cafiero, and Madeline Cafiero, are partners, doing business as L. P. Maggioni & Company and having·their principal office and place of business located at 401 West Bay Street, Savannah, Ga.

PAR. 2. The respondents are now engaged, and for many years prior hereto have engaged, in the business of packing and canning fish, oysters, shrimp, and clams (all of which are hereinafter called "sea food products") and in the marketing, sale, and distribution of such sea food products in their own name and for their own account for resale.' . The respondents sell and distribute their sea food products through two ~eparate and distinct methods: (1) through a large number of legitimate Intermediaries who act as their agents in negotiating the sale of sea food r>;oducts and for which services such intermediaries customarily are paid, dtrectly or indirectly, commissions or brokerage fees; and (2) through the sale of their sea food products direct to a few buyers who are paid, directly or indirectly, commissions or brokerage fees on their own purchases of such sea food products from the respondents. The respondents, to distinguish their sea food products from the sea food products sold by competitors and to facilitate sales, utilize registered and unregistered trade-marks and brands for the various sea food products sbold by them. These brands are generally known as packers' or sellers' rands. Representative of the respondents' brands are: h Mermaid, Sea Zone, Daufuski, Warsaw, Coosaw, Sambo, Port Royal, ~ox: Inn, Crown, Off Shore, Jekyl Island, Magico, 1\Iaggioni, Magestic, and English Ace.

Respondents also sell their sea food products under the labels or brands Of their buyers, which brands or labels are generally known to the trade as Order 40 F. T. C.

private or buyers' brands. Some of such buyers who incorrectly designate themselves as brokers also utilize registered and unregistered labels and brands, which labels and brands are utilized by the respective buyers in selling such buyers' merchandise. Representative of respondents' buyers who purchased respondents' sea food products under their own buyers' brands or labels, as well as under the sellers' brands or labels, was Wm. II. Stanley, Inc., of New York City, N.Y. This buyer purchased in its own name, and for its own account, large quantities of respondents' sea food products under its own registered private brand "Seaspray." Representative of respondents' buyers who purchased in their own name, and for their own account, respondents' sea food products exclusively under the sellers' brands or labels were Haas-Guthman Co., Savannah, Ga., and Britt-McKinney Co., Inc., Greenville, S. C.

PAR. 3. The respondents, in the course and conduct of their said business, since June 19, 1936, have sold and distributed a substantial portion of their sea food products directly to buyers located in States other than the State in which the respondents are established, and as a result of said sales and the respondents' instructions such sea food products are shipped and transported across State lines to such buyers who are located in various States of the United States.

PAR. 4. The respondents, since June 19, 1936, in connection with the interstate sale and distribution of sea food products in their own name and for their own account for resale, have sold such sea food products to buyers located in the various States of the United States other than the State where respondents are established and have been and are now paying or granting, or have paid or granted, directly or indirectly, commissions, brokerage, or other compensation, or allowance or discount in lieu thereof, to buyers of said sea food products.

CONCLUSION The paying and granting by respondents, Joseph C. Maggioni, Joseph S. Cafiero, and Madeline Cafiero, partners doing business as L. P. Maggioni & Company, directly or indirectly, of commissions, brokerage, or other compensation, and allowances or discounts in lieu thereof, to the buyers of said sea food products, on their own purchases, and the acts and practices of the respondents in promoting sales of sea food products by paying to buyers, directly or indirectly, commissions, brokerage, or other compensation, and allowances or discounts in lieu thereof, as set forth above, are in violation of subsection (c) of section 2 of the Clayton Act as amended.

ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission and the answer of respondents, which answer ndmits, with certain exceptions, the material allegations of fact set forth in said complaint and waives all intervening procedure and further hearing as to said facts; and the Commission having made its find· ings as to the facts and its conclusion that said respondents have violated the provisions of subsection (c) of section 2 of the 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 an act of Congress approved June 19, 1936 (the Robinson-Patman Act) (U. S. C. Title 15, Sec. 13). L. P. MAGGIONI & CO. 245 241 Order It is ordered, That the respondents, Joseph 0. Maggioru, Joseph S. Cafiero, and Madeline Cafiero, doing business as L. P. Maggioni & Company or under any other name, and their agents, employees, and representatives, directly or through any corporate or other device, in connection :OVith the sale and distribution of sea food products or any other commodity In commerce as "commerce" is defined in the aforesaid Clayton Act, do forthwith cease and desist from:

Paying or granting, directly or indirectly, to any buyer, anything of value as a commission, brokerage, or other compensation, or any allowance or discount in lieu thereof, upon purchases made for such buyer's own account. .

It is further ordered, That the respondents shall, within 60 days after ~ervice upon them of this order, file with the Commission a report in writ- JUg setting forth in detail the manner and form in which they have complied with this order.

650780-47-19 Complaint 40 F. T. U.