NAB reports (Jan-Dec 1941)

Record Details:

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distribution of wire rope in the United States, they are in a position to dominate and control the prices at which this product must be purchased by distributors, dealers and users, including federal, State and municipal agencies. Pursuant to their agreement, combination and conspiracy, the complaint alleges, the respondent association members, acting between and among themselves, or through the association or its three respondent officers, have fixed and maintained uniform de¬ livered prices, terms and conditions for the sale of wire rope in the United States; continued, in effect, by agreement and concerted action a uniform, delivered price-fixing formula adopted at the time of their N.I.R.A. code, and have maintained a uniform method of computing net delivered prices for wire rope sold by them throughout the country. The complaint further charges that pursuant to their agreement the respondent manufacturers have maintained a system of delivered prices which prevent the differences in the cost of freight delivery between their respective places of business and those of intended purchasers from creating any advantage or disadvantage to such purchasers in delivery costs. This system of identical delivered prices is based on so-called basing points whereby all delivered prices are calculated as though shipments within a given area were made from a single point or points to a common freight destination, according to the complaint. Pursuant to their combination and agreement, the respondents, according to the complaint, divided the United States into basing point areas so that purchasers in each area get the same delivered price regardless of their distance from the manufacturer; required distributors of their products to resell them according to the re¬ spondents’ price formula ; adopted a uniform basic and chain dis¬ count system; defined what constitutes a recognized distributor and filed with the association the names of their distributors, and included in a uniform contract entered into by all the respondent members with their respective distributors, a provision forbidding such distributors from selling any wire rope other than that made by the particular respondent member with whom the distributor had a distributing contract. In order to carry out the agreements and the acts and practices performed thereunder, the respondents, according to the complaint, held meetings, supervised and investigated the fulfillment and enforcement of the agreements, and coercively required recalcitrant manufacturers, distributors and dealers to conform to the agree¬ ments. (4443) STIPULATIONS During the past week the Commission has entered into the following stipulations: Colorado ISedding Company — Four Denver, Colo., mattress and bedding manufacturers have entered into stipulations to cease and desist from certain representations in the sale of their products. The respondents are: Colorado Bedding Company; Sam Moskin, trading as Mountain States Mattress Manufacturing Company; Kindel Bedding Company; and Abe D. Penn, trading as National Bedding Company. Each respondent agrees to cease designating, describing, or repre¬ senting its products which are made, either in whole or in part, of used or second-hand material, to be products made of or con¬ taining all new material, and each agrees to cease and desist from failing to clearly and unequivocally disclose that its products are composed, either in whole or in part, as the case may be, of used or second-hand material. The Colorado Bedding Company also stipulates that it will cease representing that its products are made in compliance with the laws of Colorado or any other State, when in fact the products do not conform to such laws, and the Kindel Bedding Company agrees to cease representing that its products are made in compliance with Colorado or other State laws or that the products are sterilized, when in fact they are not made so as to conform to such laws and have not been subjected to a sterilization process. Sam Moskin, trading as Mountain States Mattress Manufactur¬ ing Company, and Abe D. Penn, trading as National Bedding Company, agree to discontinue the use on or in connection with their products of any false, fictitious or misleading price repre¬ sentation which purports to be the retail sales price of the products but which, in fact, is in excess of the price for which such articles are customarily sold. (3009-3010-301 1-3012) Kindell Bedding Company — See Colorado Bedding Company. Kranier-Brandeis, Ine., 1S9 Madison Ave., New York, en¬ gaged in the manufacture and sale of neckties and other men’s wear, has entered into a stipulation in which it agrees to cease and desist from use of the word “llama”, or the picturization of a llama, either alone or in connection with any other word or words, so as to imply to purchasers that its merchandise is composed either in whole or in substantial part of llama wool or hair. (3013) Mountain States Mattress Mfg. Company — See Colorado Bedding Company. Na-Pa Clieinical Company — D. R. Sterett and Margaret IT Sterett, trading under the firm name of Na-Pa Chemical Company, 1108 South Broadway, Leavenworth, Kans., selling a drug product designated “Na-Pa Balm”, have entered into a stipulation in which they agree to cease representing that the product is a competent treatment or an effective remedy for colds ; that it will break up colds, or that it provides protection or insurance against colds, will aid in their prevention, or do more than afford tem¬ porary relief from the symptoms and discomforts associated there¬ with. The respondents also agree to cease representing that the product is a competent treatment or effective remedy for, or that it will provide protection or insurance against, or aid in the pre¬ vention of, muscular aches and minor ailments, or do more than afford temporary relief from the pains associated therewith ; that the product penetrates; that it acts as a barrier to keep out cold germs, or that it is a competent treatment or an effective remedy for throat infections or sinus irritations, or v/ill aid in preventing those conditions. The respondents also agree that in making comparisons of the absorbing pow’er of goose grease or any other ingredient contained in the product, they will state the ingredient with which com¬ parison is made, and that no such comparison will be made unless the statements are actually a fact. (02695) National Bedding Company — See Colorado Bedding Company. Snr-Kid Broduets Company — Chas. Denny, trading as Sur-Rid Products Company, 455 Paul Brown Building, St. Louis, engaged in selling a rat killing preparation designated “Sur-Rid Rat Killer”, has stipulated to discontinue representing that he tests every lot of the product, or that he guarantees the killing power of the product, and further agrees to cease and desist from using the term “Sur-Rid” or any other similar term or w'ords as a part of the brand name of the product, or from otherwise representing or implying that it is sure in action or that its use wall rid premises of rats. (02694) CEASE AND DESIST ORDERS Commission has issued the following cease and desist orders: American Crayon Company, Sandusky, Ohio, and Binney and Smith Company, 41 East 42nd St., New York, manufacturers of crayons, chalk, paint sets, educational supplies and allied products, have been ordered to cease and desist from violations of the Robinson-Patman Act, Commission findings are that the respondents sell their products of like grade and quality to all customers at one list price from which they allow" a 50 per cent trade discount to customers buying solely in case lots, and that they grant to some customers further varying discounts in addition to this trade discount. The .American Crayon Company, according to findings, grants in addition to the regular trade discount, discounts ranging from 5 to 10 per cent to some customers, and varying discounts ranging from 15 per cent to 10 plus 10 per cent on certain sizes of “Prang” tempera only. Binney and Smith Company, according to findings, had allowed additional 5 and to some customers 10 per cent discounts over January 10, 1941 — 41