Kkowles and Company

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Ix THE MATTER OF KKOWLES AKD COMPANY CONSEN'l' ORDER , ETC., l REGARD TO THE ALLEGED VIOLATION OF SEC. 2 ( c) OF THE CL.ATTON ACT Docket /926. Complaint, June 3, 1960-Decision, May 1961 Consent order requiring a Leesburg, Fla., packer of citrus fruit to cease yiolating Sec. 2 (c) of the Clayton Act by paying brokerage, or its equivalent, to customers making purchases for their own accounts for resale. COMPLAINT The Federal Trade Commission, ha ving reason to believe that the party respondent named in the cu-,ption hereof, and hereinafter more particuhuly described, has been and is now violating the provisions of subsection (c) of Section 2 of the Clayton Act, as amended (D. C. Title 15, Section 13), hereby issues its complaint, stating its charges wit.h respect t.hereto as follows: RAGHAPH 1. Respondent Knmvles and Compa.ny is a corporation organized, existing and doing business under and by virtue of the l.,,' s of the State of Florida, with its offce and principal place or business located at Leesburg, Florida: with mailing address as Post Offce Box 466, Leesburg, Florida.

PAR. 2. Respondent is now and for the past several years has been engaged in the business of packing, sening and distributing citrus fruit, such as oranges, tangerines and grapefruit, all of which are hereinafter referred to as cit.rus fruit, or fruit products. R.respondent sells and distributes its citrus fruit through brokers as well as direct to customers located in many sections of the "United States. When brokers are utilized in ma.king sales for it, respondent pays them for their services a brokerage or commission usually at the rate 10 cents per 1% bushel box, or equivalent. Respondent's annual volume of business in the sale and distribution of citrus fruit is substantial.

PAn. 3. In the course and conduct of its business over the past seller-al years, respondent has sold and distributed and is now selling and distributing its citrus fruit in commerce, as "commerce" is defined in the aforesaid Clayton Act, as amended: to buyers located in K--,OWLES AND COMP Ai'\ 847 846 Decision the several states of the United States other than the State of Florida in which respondent is located. Respondent transports or causes sneh citrus fruit, when sold, to be transported from its place of business or packing plant in the State of Florida, or from other places within the state, to such buyers or to the buyers' customers located in various other states of the D united States. Thus there has been at al1 times mentioned herein a continuous course of trade in commerce in s id citrus fruit across state lines between said respondent and the respective buyers of such fruit. PAR. 4. In the course and conduct of its business, as aforesaid respondent has been and is now making substantial sales of citrus fruit to some, but not an, of its brokers and direct buyers purchasing for their own account for resale, and on a large number of these sales respondent paid, granteel or allowed tnd is now paying, granting or allowing to these brokers and direct buyers on their purchases a commission, brokerage, or other compensation, or an allowance or eliscount in lieu thereof, in connection therewith. PAR. 5. The acts and practices of respondent, as above alleged and described, are in violation of subsection (c) of Section 2 of the Clayton Act, as amended (D. C. Title 15, Section 13). Mr. Cecil G. Miles and lift. E7'e8t G. Ba7'es for the Commission. Hr. TV. P. Robinson of Lecsburg, Fla., for respondent. INITIAL DECISION BY EAHL J. KOLE, HEARING EXl\.::UNDER The cornplaint in this proceeding issued June 3, 1960, charges the respondent Knmylcs a.nd Company, a Florida corporation, located at Leesburg, Florida, with violation of Section 2 (c) of the Clayton Act, as amended, in connection with packing, selling and distributing citrus fruit or fruit products.

After the issuance of the complaint, respondent entered into an agreement containing consent order to cease and desist with counsel in support of the complaint, disposing of aJl the issues in this proceeding, which agreement was duly -approved by the Director ancl Associate Director of the Bureau of Litigation. It was expressly provided in said agreement that the signing thereof is for settle,ment purposes only and does not constitute an admission by respondent that it has violated the law as alleged in the complaint.

By the terms of said agreement, the respondent admitted all the jurisdictional facts aneged in the complaint and agreed that the record herein may be taken as if the Commission had mncle findings of jurisdictional facts in accordance with the allegations. 848 FEDERAL TRADE COMMISSION DECISIOKS Decision ;)81' By said agreement, the respondent expressly waived any further procedural steps before the hearing examiner and the Commission; the making of findings of fact or conclusions of law; and all the rights it may have to challenge or contest the validity of the order to cease and desist entered in accordance with the agreement. Respondent further agreed that the order to cease and desist issued in accordance with said agreement, shall have the same force and effect as if made after a full hearing. It was further prm idcc1 that said agreement, together wit.h the complaint shan constitute the entire record herein j that the complaint herein may be used in construing the terms of the order issued pursUfl,nt to said agreement; and that said order may be altered modified or set aside in the manner prescribed by the statute for orders of t.he Commission.

The hearing examiner has considered such agreement and the order therein contained, and, it appearing that said agreement and order provides for an appropriate disposition of this proceeding, the same is hereby accepted and is ordered fied upon becoming part of the Commission s decision in aeeorda,nee with Sections 3.21 and 25 of the Rules of Practice, and, in eonsonance with the terms of said agreement, the hearing examiner finds that the Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent named herein, and jssues the following order: ORDER It is ordered That the respondent, Knowles and Company, a corporation, and its offcers: agents, representatives and employees, directly 01' through any corporate.e or other device, in connection with the sale of citrus fruit or fruit products in commerce, as "commerce is de.fined in the aforesaid Clayton Act, do forthwith cease and desist from:

Paying: granting, or allo"ing, directly or indirectly, to any buyer or to anyone acting for or in behalf of or who is subject to the direct or indirect control of such buyer, anything of value as a commission, brokerage, or other compensation, or any allowance or discount in lieu thereof, upon or in connection with any sale of citrus fruit or fruit products to such buyer for his own account. DECJSIOX OF THE CO)DIISSIQN AXD ORDER TO FJLE REPORT OF COMPLIANCE Pursuant to Sect.ion 3.21 of the Commission 5 Rules of Practice the initial decision of the hearing examiner shalt on the 19th day of l\fay 1961, become t.he decision of the Commission; and, accordingly: It is ordered That the respondent herein shall, within sixty (6n) LAKELAND HIGHLANDS COOPERATIVE ASSN. 849 846 Complaint 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