Snively Groves, Inc.

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IN THE )L'lTTER OF S~IVBLY GROVES, INC.

COXSEXT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION m' SEC. 2 ( C JOF THE CLAYTON ACT Docket 8014. Complaint, June 1960-Decision, Ma,y, 1961 Consent order requiring a packer of citrus fruit and other food products in Winter Haven, Fla., to cease violating Sec. 2 (c) of the Clayton Act by paying brokerage, or its equivalent, to customers making purchases for their own accounts for resale.

CO::IPLAINT The Fedeml Trade Commission, having reason to believe that the corporation lwmerl in the, caption hereof, and hereinafter more SNIVELY GROVES , IXC. 933 932 Complaint particubxly 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, sta6ng its charges with respect thereto as follows: i\IL GRAPJI 1. Respondent Snively Groves, Inc. is (t corporation organized, existing and doing business under and by virtue of the Jaws of the St.ate of Florida, with its offce and principal place of business located at 'Vinter Haven, Florida. PAR. 2. Respondent. is now, and for t.ho past several years has been, engaged in the business of packing, so1Jing and distributing citrus fruit, such as oranges, tangerines and grapcfruit citrus juices citrus sections and other food products, all of which are hereinafter sometimes referred to as food products. Respondent sells and dis- , astributes citrus fruit and other food products through brokers well as direct, to customers located in many sections of the "Cuitcd States. "\Vhen brokers are utilized in making sales of citrus fruit respondent pays said brokers for their services a brokerage or commission, usually at the rate of 10 cents per 1% bushel box, or equivalent. '\Then brokers arc utilized in making sales 01 citrus juices and citrus sections, respondent pays said brokers lor their services a brokerage or commission, usually at the rate of two, three or five percent of the net. sening price. Respondent's annual volume of business in the sale of citrus fruit and other food products is substantial.

PAn. 3. In the course and conduct of its business over the past several years, respondent has sold and distributed and is now selling and distributing citrus fruit: citrus juices, and food products in commerce: us "commerce ' is defined in the aforesaid Clayton Act as amended, to buyers located in the several states of the United Stoctes other than the State of Floricb in which respondent is locitruscated. Re,spondent transports or causes such citrus fruit, juices and food products: \yhen 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: cus- States. Tntomers located in yarions other states of the United lTany instances respondents sen to brokers or buyers located in the, Stat,e of Florida, but ship or cause the citrus fruit, citrus juices and food prorlucts to be shipped to the buyers' custOlners located outside of said state. Thus there has been at an times mentioned herein a continuous course of trade in commerce in said ciirus fruit, citrus jnices, and food products across state lines bct een said respondent and the respective buyers of such food products, or the bu:vers Cllstomers.

934 FEDERAL TRADE COJ\IMISSION DECISIONS Decision GS F.

PAR. 4. In the course and conduct of its business as afol'esaic1 respondent has been and is now making substantial sttles of citrus fruit, citrus juices, and other products to some, but not aJl, of its brokers and direct. buyers purchasing for its mvn account for resale. and on n. Jarge number of these sales respondent pa.ic1, gnlltec1 , or aHowe.c1, and is now paying, granting, or a.l1owing to these brokers and direct buyers on its own purchases, a commission, brokerage, or other compensation, or an allo",yance or discount in heu thereof, in connection therewith.

PAIL 5. The acts and practices of respondent, as above alleged and described, ate in violation of subsection (c) of Section 2 of the Clayton Act. as amended (V. C. Title J5, Section J3). Jl1'. Cecil G. illiles and MI'. Ernest G. Barnes for the Commission. Jir. Walia", A. JlcRae of Bartow, Fla., for respondent. INITIAL DECISION BY ABNER E. LIPSC03IB: I-IE.\RIXG EX.-\l\lIXEH The. complaint herein was issued on ,June 27, 1860. clulrging Respondent ,,-ith violation of 82(e) of the Clayton Act, as amended, by paying, granting, or allowing commission, brokerage; compensation. or an allowance or discount in lieu thereof, to certain of its brokers and direct buyers, on purchases for the.ir own account for resale.

Thereafter, on .January 4 ; 1961 ; Respondent, its counsel, and counsel supporting the complaint herein entered into an Agreement Containing Consent Order To Cease And Desist, "which was approved by the Associate Director of the Commission s Bureau of Litigation and thereafter, on January 9 , J961, submitter) to the Hearing Examiner for consideration. Attached to and made a part of the agreement is a stipulation entered into by the same parties for the purpose of making clear beyol1(l any possible doubt the intent of the eomplnint and of the proposed order to cease and desist. The agreement identifies Respondent Snively Groves, Inc. as fl Florida corporation; with its offce and principal place of business located in 'Winter Haven, Florida, R.respondent admits an the jurisdictional facts alleged in the complaint, and agrees that the record may be taken as if findings of jurisdictional facts had been duly mflc1e in accordance with such allegations.

Respondent waives an ' further procedure, before the Hearing Examiner and the Commission; the making of findings of fact and conclusions of law; and all of the rights it may lwve to challe,nge SNIVELY GROVES , INC. 935 932 Decision or contest the validity of the order to cease and desist entered in accordance with the agreement. A11 parties agree. that the record on which the initial decision and the decision of the Commission shall be based shall consist solely of the complaint and the agreement; that the order to cease and desist, as contained in th2 agreement: when it shan have become a part of the decision of the Commission: sllall haye the same force and effect as if entered after a full hearing, and may be altered, modified or set aside in the manner provided for other orders; that the complaint herein may used in construing the terms of said order; and that the agreement is for settlement purposes only and does not constitute all admission by Hesponc1cnt that it has violated the la:\" as alleged in the complaint.

After consideration of the allegations of the complaint, and the provisions of the agreement and the proposed order, the I-Iearing Examiner is of the opinion that such order constitutes a satisfactory disposition of this proceeding. Accordingly, in Consol18.nce ,with the terms of the aforesaid agreement, the Hearing Exruniner accepts the Agreement Containing Consent Order To Cease And Desist; finds that the Commission has jurisdiction over the Respondent and over its tl,cts and practices as alleged in the complaint; and finds that this proceeding is in the public interest. Therefore It is ordel'ed That the Respondent Snively Groves, lnc. a corporation, and its offcers agents, representatives and employees, directly or through any corporate or other device, in connection with the sale of citrus fruit or fruit products in commerce, as ;' commer('e is defined in the aforesaid Clayton Act do forthwith cease :md desist from:

Paying, granting or allowing, directly or indirectly, to any buyer 01' to anyone acting for or in be-half or who is subject to the direct or indirect control of such buyer, anything of value as a commission, brokerage or other c.compensation, or any allowance 01' discount in lieu thereof, upon or in connection with the sale of citrus fruit or fruit products to such buyer for his own account. DECISION OF THE co::nnSSIOK AND ORDER TO FILE REPORT OF CO::fPLL\XCE The Commission having now determined that the hearing examiner s initia.l decision, filed January 17, 1961 , is adequate and a.ppropriate to dispose of this proceeding:

It i8 onlered That said decision be, and it hereby is, adopted as the decision of the Commission.

936 :FEDERAL TRADE COMMISSION DECISIO Complaint 38 F.

It ':8 fU/rther o1'dered That the. respondent shall, within sixty (60) da.ys after service upon it of this order, file with the Commission a report, in IVriting, setting forth in detail the manner and Iorm in which it has complied with the order to cease and llesist contained in the i.foresaic1 ini6al decision.