Bolger Brothers

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In THE MatTrer oF BOLGER BROTHERS COMPLAINT,’ FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 AND OF AN ACT OF CONGRESS APPROVED OCT. 14, 1940 Docket 5378. Complaint, Sept. 5, 1945—Decision, Aug. 26, 1946 Where a corporation engaged in the introduction into commerce of garnetted or reclaimed wool waste material, composed of spun, woven, knitted, or’ felted yarns or fabrics which it purchased and garnetted, sold and distributed in commerce for its own account, and also garnetted for other concerns on a commission basis and shipped as directed by the owners thereof, and which was a wool product under the terms of the Wool Products Labeling Act of 1939,— Caused to be misbranded, and misbranded, said products in violation of said act and the rules and regulations promulgate thereunder, in that they did not have on or affixed thereto a stamp, tag, label, or other means of identification showing the percentage of the total fiber weight of wool, reprocessed wool, reused wool, nonwool fiber and aggregate thereof, including filler or adulterating matter, and. proper identification of the manufacturer or seller: Held, That such acts, practices and methods, under the circumstances set forth, were all to the prejudice and injury of the public, and constituted unfair and decepgive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act and the Wool Products Labeling Act of 1939.

Before Mr. James A. Purcell, trial examiner. ; Mr. J. W. Brookfield, Jr. and Mr. George M. Martin for the Commission.

: Complaint Pursuant to the provisions of the Federal Trade Commission Act, and the Wool Products Labeling Act of 1939, and by virtue of the authority vested in it by said acts, the Federal Trade Commission, having reason to believe that Bolger Brothers, a corporation, hereinafter referred to as respondent, has violated the provisions of said acts and the rules and regulations promulgated under the Wool Products Labeling Act of 1939, 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: ; Paracraru 1. The respondent, Bolger Brothers, is a corporation, organized, existing and doing business under and by virtue of the laws of the State of Pennsylvania and has its principal office and Complaint 43 F. T. C. place of business at 1139-51 East Chelten Avenue, Germantown, Philadelphia, Pa. ‘orn Par. 2. Respondent’s business is that of garnetting or reclaiming svool waste material, composed of spun, woven, knitted, or felted yarns or fabrics, which material is a wool product under the terms of the Wool Products Labeling Act of 1939. A large portion of such wool waste material is garnetted for other concerns on a commission basis and shipped as directed by the owners thereof. _ Respondent is engaged in the introduction into commerce, as “commerce” is defined in the Wool Products Labeling Act of 1939, and in the Federal Trade Commission Act, of the garnetted wool products which are processed on contract for others as aforesaid. The garnetted material which is processed for others and introduced into commerce by respondent as aforesaid is a wool product as that term is defined in the Wool Products Labeling Act of 1939, and such products are subject to the provisions of said act and the rules and regulations promulgated thereunder.

Respondent also purchases wool waste material composed of spun, woven, knitted or felted yarns and fabrics, and garnetts such material which is by it sold and shipped in commerce to purchasers thereof on its own account. Respondent, as to this material, is engaged in the manufacture for introduction into commerce, as “commerce” is defined in the Wool Products Labeling Act of 1939, and in the Federal Trade Commission Act, and in the introduction into said commerce, and in the sale, transportation and distribution of said wool products in said commerce, as such products are defined in the Wool Products Labeling Act of 1939. The garnetted material which is processed for its own account and manufactured for introduction into commerce, and introduced, sold and distributed in conimerce by respondent, as aforesaid, is a wool product, as that term is defined in the Wool Products Labeling Act of 1939, and such products are subject to the provisions of said act and the rules and regulations promulgated thereunder.

Since July 15, 1941, respondent has violated the provisions of said act and said rules and regulations in the introduction and manufacture for introduction into commerce, and in the sale, transportation and distribution of said wool products in commerce, by causing said wool products to he misbranded within the intent and meaning of said act and the rules and regulations.

Par. 3. Exemplifying respondent’s practice of violating said act, and the rules and regulations promulgated thereunder, in connection with said wool products manufactured for introduction into said com- BOLGER BROTHERS 89 87 Findings merce and introduced, sold and transported, and distributed in said commerce, is its misbranding of the aforesaid wool products in violation of the provisions of said act and said rules and regulations by failing to aflix to said wool products a stamp, tag, label, or other means of identification, or a substitute in lieu thereof, as provided by said act, showing (a) the percentage of the total fiber weight of the wool product, exclusive of ornamentation not exceeding 5 per centum of said total fiber weight, of (1) wool, (2) reprocessed wool, (3) reused wool, (4) each fiber other than wool where said percentage by weight of such fiber was 5 percentum or more, and (5) the aggregate of all other fibers; (6) the maximum percentage of the total weight of the wool product of nonfibrous loading, filling or adulterated matter; (¢) the percentages in words and figures plainly legible by weight of the wool contents of such wool product where said wool product contains a fiber other than wool; (d) the name of the manufacturer of the wool product, or the manufacturer’s registered identification number and the name of a seller or reseller of the product as provided for in the rules and regulations promulgated under such act, or the name of one or more persons subject to section 3 of said act with respect to such wool product.

Par. 4. The aforesaid acts, practises, and methods of the respondent as alleged were and are in violation of the Wool Products Labeling Act of 1939 and the rules and regulations promulgated thereunder, and constitute unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act. Report, FrnpincGs 4s To THE Facts, AND ORDER Pursuant to the provisions of the Federal Trade Commission Act and the Wool Products Labeling Act of 1939, the Federal Trade Commission, on the 5th dayof September, 1945, issued and subsequently served its complaint in this proceeding upon respondent Bolger Brothers, a corporation, charging it with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of said acts. After the issuance of said complaint and the filing of respondent’s answer, the Commission, by order entered herein, granted respondent’s motion for permission to withdraw said answer and to substitute therefor an answer admitting all the material allegations of fact set forth in said complaint and waiving all intervening procedure and further hearing as to said facts, which substitute answer was duly filed in the office of the Commission. Thereafter, this proceeding regularly came on for final hearing before the Commission on the said complaint and substitute answer, and the Commission, Findings 43 BF. TC. having duly consideredthe matter and being now fully advised in the premises, finds that this proceeding 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 FACTS Paracrary 1. The respondent, Bolger Brothers, is a corporation, organized, existing and doing business under and by virtue of the laws of the State of Pennsylvania and has its principal office and place of business at 1139-51 East Chelten Avenue, Germantown, Philadelphia, Pa.

Par. 2. Respondent’s business is that of garnetting or reclaiming wool waste material, composed of spun, woven, knitted or felted yarns or fabrics, which material is a wool product under the terms of the Wool Products Labeling Act of 1939. A large portion of such wool waste material is garnetted for other concerns on a commission basis and shipped as directed by the owners thereof. Respondent is engaged in the introduction into commerce, as “commerce” is defined in the Wool Products Labeling Act of 1939, and in the Federal Trade Commission Act, of the garnetted wool products which are processed on contract for others as aforesaid. The garnetted material which is processed for others and introduced into commerce by respondent as aforesaid is a wool product as that term is defined in the Wool Products Labeling Act of 1939, and such products are subject to the provisions of said act and the rules and regulations promulgated thereunder.

Respondent also purchases wool waste material composed of spun, woven, knitted, or felted yarns and fabrics, and garnetts such material which is by it sold and shipped in commerce to purchasers thereof on its own account. Respondent, as to this material, is engaged in the manufacture for introduction into commerce, as “commerce” is defined in the Wool Products Labeling Act of 1939, and im the Federal Trade Commission Act, and in the introduction into said commerce, and in the sale, transportation and distribution of said wool products in said commerce, as such products are defined in the Wool Products Labeling Act of 1939. The garnetted material which is processed for its own account and manufactured for introduction into commerce, and introduced, sold and distributed in commerce by respondent, as aforesaid, is a wool product, as that term is defined in the Wool Products Labeling Act of 1939, and such products are subject to the provisions of said act and the rules and regulations promulgated thereunder. BOLGER BROTHERS 91 87 Order Since July 15, 1941, respondent has violated the provisions of said act and said rules and regulations in the introduction and manufacture for introduction into commerce, and in the sale, transportation and distribution of said wool products in commerce, by causing said wool products to be misbranded within the intent and meaning of said act and the rules and regulations.

Par. 3. Exemplifying respondent’s practice of violating said act, and the rules and regulations promulgated thereunder, in connection with said wool products manufactured for introduction into said commerce and introduced, sold and transported, and distributed in said commerce, is its misbranding of the aforesaid wool products in violation of the provisions of said act and said rules and regulations by failing to affix to said wool products a stamp, tag, label, or other means of identification, or a substitute in lieu thereof, as provided by said act, showing (a) the percentage of the total fiber weight of the wool product, exclusive of ornamentation not exceeding 5 percentum of said total weight, of (1) wool, (2) reprocessed wool, (3) reused wool, (4) each. fiber other than wool where said percentage by weight of such fiber was 5 percentum or more, and (5) the aggregate of all other fibers; (b) the maximum percentage of the total weight of the wool product of nonfibrous loading, filling or adulterated matter; (c) the percentages in words and figures plainly legible by weight of the wool contents of such wool product where said wool product contains a fiber other than wool; (d) the name of the manufacturer of the wool product, or the manufacturer’s registered identification number and the name of a seller or reseller of the product as provided for in the rules and regulations promulgated under such act, or the name of one or more persons subject to section 3 of said act with respect to such wool product.

CONCLUSION The aforesaid acts, practices and methods of respondent as herein found 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 and the Wool Products Labeling Act of 1939.

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 respondent, in which answer respondent admits all the material allegations of fact set forth in said complaint, and states that it waives all intervening procedure and further hearing as to said facts, and the Commission Order ASH TE CS having made its findings as to the facts and its conclusion that said respondent has violated the provision of the Federal Trade Commission Act and the provisions of the Wool Products Labeling Act of 1939; It is ordered, that respondent, Bolger Brothers, a corporation, its officers, representatives, agents and employees, directly or through any corporate or other device, in connection with the introduction or manufacture for introduction into commerce, or the sale, transportation or distribution in commerce, as “commerce” is defined in the aforesaid acts, do forthwith cease and desist from misbranding garnetted or reclaimed wool waste material composed of spun, woven, knitted or felted yarns or fabrics or any other “wool products,” as such products are defined in and subjected to the Wool Products Labeling Act of 1939, which products contain, purport to contain, or in any way are represented as containing “wool,” “reprocessed wool” or “reused wool” as those terms are defined in said act, by failing to affix securely to or place on such products a stamp, tag, label or other means of identification, showing in a clear and conspicuous manner : (a) The percentage of the total fiber weight of such wool product, exclusive of ornamentation not exceeding 5 percentum of said total fiber weight, of (1) wool, (2) reprocessed wool, (8) reused wool, (4) each fiber other than wool where said percentage by weight of such fiber is 5 percentum or more, and (5) the aggregate of all other fibers. (6) The maximum percentage of the total weight of such wool product of any nonfibrous loading, filling, or adulterating matter. (c) The name of the manufacturer of such wool product; or the manufacturer’s registered identification number and the name of a seller of such wool product; or the name or one or more persons introducing such wool product into commerce, or engaged in the sale, transportation, or distribution thereof in, commerce, as “commerce” is defined in the Federal Trade Commission Act and the Wool Products Labeling Act of 1939.

Provided, that the foregoing provisions concerning misbranding shall not be construed to prohibit acts permitted by paragraphs (a) and (b) of section 3 of the Wool Products Labeling Act of 1939; and Provided, further, that nothing contained in this order shall be construed as limiting any applicable provisions of said Act or the Rules and Regulations promulgated thereunder.

Hitis further ordered, that the respondent shall, within 60 days after service upon it of this order, file with the Commission a report in writing setting forth in detail the manner and form in which it has complied with this order.

Commissioner Ferguson not participating on account of his absence from Washington.

THE PAEBAR CO., INC. ET AL. 93 Syllabus