Indian Lake Fruit Co., Inc.

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IN THE IATTER OF I'\DL\N LAKE FRUIT CO., INC.

CONS:EX'l onder: ETC. , I REG,\RD TO THE ALLEGED nOLATIOK OF SEC. :2 (c) 0:1 THE CLA YTOX ACT Docket 8149. Complaint, Oct. 11, 196rJ-Decision, May 1.9 1961 , to cease violat-Consent order requiring a packer of citrus fruit at Ocoee, Fla. , to ing Sec. 2(c) of the Clayton Act by paying brokerage, or its equivalent customers making purchases for their own accounts for resale. CO:\IPLAI)lT The Federal Trade Commission, having reason to believe that the party respondent named in the caption hereof, and hereinafter more particlllarJy described, has been and is now violating the provisions of subsection (c) of Section 2 of the Clayton Act, as amended (U. C. Title 15, Section 13), hereby issues its complaint stating its charges with respondent thereto as follows: PARAGRAPH 1. R.cspondent Indian Lake Fruit Co. Inc. , is a corporation organized, existing and doing business under and by virtue IKDIAK LAKE FRUIT CO. 967 966 Complaint of the Jaws of the State of Florida, with its offce and principal place of business located at Ococe, Florida, with mailing address as Post Offce Box 87, Oeoee, Florida.

PAR. 2. Hesponclent is now and for t.he past. several years has been engaged in the business of packing, selling and distributing citrus fruit, such as oranges, tangerines, and grapefruit, all of which are hereinafter sometimes referred to as citrus fruit or fruit products. Respondent sells and distributes its citrus fruit through brokers, as ,,-ell as direct, to customers located ill many sections of the United States. "When brokers are utilized in making sales for , respondent pays them for their services H, brokerage or commission, usually at the rate of 10 cents per 1% bushel box. Respondent' s annual volume of business in the sale and distribution of citrus fruit is substantial.

PAR. 3. In the course and conduct of its business over the past 8e11-several years, respondent has sold and distributed, and is now ising and distributing, its citrus fruit in commerce, as "commerce" defined in the aforesaid Clayton Act, as amended, to buyers located in the several states of the United States other than the State of Florida in which respondent is located. Respondent transports or causes such 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 said state, to such buyers, or to the buyers' customers located in various other states of the United States. Thus there has been, at an times mentioned herein, a continuous course of trade in commerce in said citrus fruit across state lines between respondent and the respective buyers of such citrus fruit. PAR. 4. In the course a.nd conduct of its business as aforesaid, for the past several years, but more particularly since J anllary 1 , 1959 respondent has been and is now making numerous and substantial sales of citrus frnit to some, but not all, of its brokers and direct buyers purchasing for their own account for resale, and on a large number of these sales respondent paid, granted or allowed, and is now paying, granting or allowing to these brokers and direct buyers on their o"\\'n purchases, a commission, brokerage, or other compensation, or an allmyance 01' discount in lieu thereof, in connection therewith.

PAR. 5. The acts and practices of respondent in paying, granting or allowing a brokerage or commission, or an allowance or discount in lieu thereof, to buyers on their own purchases, as hereinabove alleged and described, are in violation of subsection (c) of Section 2 of the Clayton Act, as amended (U. C. Title 15 , Section 13). 968 FEDERAL TRADE COMMISSION DECISIOXS Decisioll oR F.

111,. Cecil G. 1file8 and 311' . Ei'1U38t G. /JCI' nes for the Commission. Johnson d-' Johnson of Tampa, Fln., by .11)'. m&11.-t8 Johnson for respondent.

INlTL\L DECISION BY ,Vn.LLDJ L. P.\CK. IIE.-\HISG \IIXER The complaint in this matter ehflrges the respondent ,"lth violation of Section 2(c) of the Clayton Act, as amended. An agreement for disposition of the proceeding by means of L c.Ollscnt order has now been executed by respondent and its counsel flncl counsel supporting the comphlint and sublnitted to the hCfcrillg examiner for his consillerfltion. Attached to and made a part of the agreement is a stipulat.ion entered into by t.he same parties for the purpose of making clear the intent of the complaint and of the proposed order to cease and desist. The ,yord "ngl'C'cmenf' as used lwreinafter \,il1 include the stipulation.

The agreement provides, among other things, that respondent admits all of the jurisdictional allegations in the complaint; that the record on which the initially1ecision and the decision of the Commission shall be bflsec1 shall consist solely of the complaint a.nd the agreement; that the inclusion of findings of fact and conclusions of law in the decision disposing of this matter is \Yftivcd, together with any further procedural steps before the hearing examiner anti the Commission; t.hat the order hereinafter set. forth may be entered in disposition of the proceeding, such order to have the same force and effect as if entered after a full hearing, respondent specifically \vai"ing any and all rights to challenge or cont.cst the yalidit.y of such order; that the onler may be altered, modified or set r-.sicl in the J18.1111e1' provided for other orders of the Commission; that the complaint may be used in construing the terrns of the o1'le1'; and that the agreement. is for settlement purposes only and docs not const.itute an admission by respondent that it has violated the law as alleged in the complaint.

The hearing examiner having considered the agreement and proposed order, and being of the opinion that they Pl'oyicle an adequate basis fol' appropriate c1i::posilion of the. procccc1ing the :lgreement is hereby accepted, the follo\\'ing jurisdidiol1fll iindings made, and the following order issued:

1. Respondent indian Lake Fruit Co. , JI , is a Florida corporation with its offce and principal place of business located in the PIPPIKG PACKING COMPA , INC. 969 966 Syllabus City of Ocoee, State of Florida, "ith mailing address as Post Offce Box 87, Oc06e, Florida.

2. The 1, ecleral Trade Conunission hllS jurisdiction of the subject matter of this proceeding and of the respondent. onder It i8 oJYleJ'e-cl That the respondent Indian Lake I' l'uit Co. , Inc. a corporation, and its offcers agents, representat.ives and employees directly or through any corporate.e or other device, in connection Iyith the sale of citrus fruit or fruit products in commerce, as "commerce" is defined in the aforesaid Clayton Act, do fortln,ith cease and desist from:

Paying, granting 01' allo-wing, directly or indirectly, to any buyer or to anyone acting for or in beha.lf of, or Iyho is subject to the direct or indirect control of such buyer, anything of value as a commission, brokerage, or other compensation, or any allo\"ance or discount in lieu thereof, upon or in connection Iyith any sale of citrns fruit or fruit products to such buyer for his 0\"11 account. DECISION OF TH COMMISSION AXD ORDER TO FILE REPORT OF CO)IPLIAXCE Pursuant to Section 3.21 of the Commission s Rules of Practice the initial decision of the hearing exa.miner shall, on t.he 19th day of May, 1961, become t.he decision of the Commission; and, accordingly:

It i8 ordered That the responc1cnt herein shall, within sixty (60) days after service upon it of this order, fie with the Commission a report in writing setting forth in detail the rrlHnner and form in