Grabler Manufacturing Co., Inc.

Text (OCR of the scan at left; may contain errors)

IN THE l\1A'ITER OF GRABLER MANUFACTURING CO., INC.

CONSENT ORDER , ETC., IN REGARD TO THE ALLEGED VIOLATION OF SEC. 2 ( d) OF THE CLAYTON ACT Docket 7838. Complaint, Ma,' . 21, 1960-Decision, Nov. 29, 1961 Consent order requiring a Cleveland manufacturer of pipe fittings and accessories to cease violating Sec. 2 (d) of the Clayton Act by paying promotional allowances to some customers but not to all their competitors. such as payments of sums amounting to $3 400 to American Radiator and Standard Sanitary Corp. for promoting its products on television programs in trading areas of Dallas rex. , St. Louis, Mo., New Orleans, La. and Pittsburgh, Pa.

COUPLAINT The Federal Trade Commission, having reason to believe that the party respondent named, in the caption hereof, and hereinafter more particularly designated and described, has violated and is now violating the provisions of subsection (d) of Section 2 of the Clayton Act, as amended (U . C. Title 15, Sec. 13), hereby issues its complaint, stating its charges with respect thereto as follows: PARAGRAPH 1. Respondent Grabler :Manufacturing Company, 111e. is a corporation organized, existing and doing business under and by virtue of the laws of the State of Ohio: with its principal office and place of business located at 6565 Broadway, S. , Cleveland, Ohio. PAR. 2. Respondent is nmy and has been engaged in themanufacture, sale and distribution of pipe fittings and accessories thereto. Respondent. sells its products of like grade and quality to a large number of customers located throughout the United States for use or resale therein. Respondent:s sales of its products are substantial exceeding $16 OOO OOO annually.

. PAR. 3. Respondent, in the course and conduct of its business as aforesaid, has caused and now causes its said products to be shipped Decision 59 F.

and transported from the State or States of location of its various manufacturing plants, ,nlrehouses and places of business, to pur- .chasers thereof located in states other than the State or States wherein said shipment or transaction originated. There has been at all time mentioned herein a continuous course of trade in commerce .as "commerce" is defined in the Clayton Act as amended. PAR. 4. In the course and conduct of its business in commerce since January 1 1957, respondent has paid or contracted for the payment of something of value to or for the benefit of certain of its customers as compensation or in consideration for services or facilities furnished by or through such customers in connection with their offering for sale or sale of products sold to them by respondent, and such payments have not been offered or otherwise made available on proportionally equal terms to all other customers competing in the sale and distribution of respondent' s products. PAR. 5. For example, between :May, 1957, and April, 1959, respondent contracted to pay, and periodically did pay, sums amounting to 400.00 to the American Radiator and Standard Sanitary Corporation for services and facilities furnished it by American Radiator and Standard Sanitary Corporation in promoting the sale of respondenfs products through television programs sponsored by American Radiator and Standard Sanitary Corpor:ition in the trading areas Dallas, Texas; St.. Louis, l\lisSOUI'i; New Orleans, Louisiana; and Pittsburgh, Pennsylvania. Such pa:nl1ents ,,- ere not offered or otherwise made avaihble on proportionally equal terms to nil other customers competing with /unerican Rndiator and StancLnl'Cl Sanitary Corpc1:ation in the sale and distribution of products or like grade and r;uality purchased from respondent..

\R. 6. The acts and practices of respondent as allleged herein are in violation of subsection (d) of Section 2 of the Clayton Act, as amended by the Robinson Patman .A..et.

DECISION AND ORDER This matter having come on to be heard by the Commission ,upon a reeorc1 consisting of the Commission s complajnt charging the respondent named in the caption hereof with violation of subsection (d) of Section 2 of the Clayton ~\et, as amended by the H.obinson-Patman Act, and an agreement by and bell-veen the respondent and its counsel ~nd counsel supporting the complaint, which agreement contains an order to cease and desist, an admission by the respondent of all the jurisdictional facts alleged in the complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondent that it has violated ,, LOU LITTMAN & CO. ET AL, 1207 1205 Syllabus the b;w as alleged in the complaint, and waivers and provisions as required by the Commission s rules; and The Commission having considered the agreement and order contained therein and being of the opinion that. the agreement provides an adequate basis for appropriate disposition of the proceeding, the agreement is hereby accepted, the following jurisdictional findings are made, and the following order is entered: 1. Respondent is a corporation existing and doing business under and by virtue of the hws of the State of Ohio, with its office and prin- ('.ip~l place of business located at 6565 Broadway, S. , in the City of Cleveland, State of Ohio.

2. The Federal Trade Commission has jurisdiction of the subject lnatter of this proceeding and of the respondent. ORDER It is ordered That respondent GrableI' JUanufacturing Company, Inc.. , a coj:poration, and its officers, employees, agents and representatives, directly or through any corporate or other device, in or in connection with the ofrering for sale, sale or distribution of any of its products in commerce, as "c.commerce is defined in the Clayton Ad, as arne.nc1ed, do forth wi th cease and desist from: Paying or contracting- for the pn.yment of anything of value to, or for the bener-it of, any customer of respondent. as compensation or ill eonsi(lerntion for any services or facilities furnished by or through surh Cllstomer in connection "'with the otTering for sale, sale fJl' distribution of respondent' s products, unless such payment or consideration is made ayaibble on proportionally equal terms to an other customers competing in the distribution of such products. It is fui'fhcJ' ordered That the respondent. shall within sixty (GO) (lays after service upon it of this order, file "ith the Commission a. report. in writing setting forth in detail the manner and form in hieh it has complied with this order.