Method of competition involved Misrepresenting and misstating in advertisements and catalogues the value and character of the business of respondent, the kind, character, and quality of goods sold, the sources of supply, and the prevailing prices at which others sell like goods, wares, and mer. chandise of similar kind and quality. Using the word "Sheffield" in connection with the sale of silver-plated ware not made in Sheffield, England. False and misleading advertising and misbrand- False advertising and misbranding. False advertising and misbranding. Misbranding and the use of the word "Mills" Using the word "Sheffield" in connection with Do. The giving to salesmen employed by dealers in the products made by respondent of premiums, rewards, and bonuses conditioned upon the sale of respondent's product by said salesmen which premiums, rewards, or bonuses are made without the full knowledge and consent of the employers of the salesmen. Using the word "Sheffield" in connection with the sale of silver-plated ware not made in Sheffield, England. Falsely representing by the use of the word "Quadruple" silver-plated ware to be coated or plated four times with silver. The use of the word "Havana" as a brand name of cigars composed of tobacco not grown on the Island of Cuba. Combining for the purpose of preventing retailers of groceries from purchasing from anyone not acceptable to the respondents and using as a means to accomplish that end a boycott against manufacturers selling to jobbers not acceptable to the combination. A number of representative cases have been selected to indicate the nature of the orders to cease and desist issued during the fiscal year. These cases are described below: Northwest Chair Co.-Violation of section 5 of the Federal Trade Commission act. This company, a manufacturer of chairs, was charged in a complaint issued by the commission with selling under the designation of "Walnut " and "Mahogany " certain chairs which were made of maple wood, finished so as to resemble in color walnut and mahogany. An agreed statement of facts was entered into by respondent upon which the commission found that the company's designation of its maple chairs as "Walnut" or "Mahogany,' respectively, was false and had the capacity and tendency to mislead and deceive many of the trade and purchasing public into the erroneous belief that such chairs were in fact made of walnut or mahogany wood. An order was entered by the commission on May 9, 1927, directing the respondent to cease and desist from representing, describing, advertising, branding, or labeling any chairs as "Mahogany" or "Walnut " unless the exposed surfaces thereof are composed wholly of solid mahogany or walnut wood, respectively, or mahogany or walnut veneered with mahogany or walnut, respectively. The order also contained a provision that it shall not be construed as prohibiting the use of such phrases as "Mahogany Finish" or "Walnut Finish" or phrases of similar import denoting color in connection with chairs composed of wood other than mahogany or walnut wood, respectively, if and when using such phrases and immediately preceding the same the company clearly designates the name of the wood or woods of which such chairs are actually composed. Atlanta Wholesale Confectioners Association, its officers and members-Violation of section 5 of the Federal Trade Commission act.-The members of this association consist of jobbers of candy and confectionery at Atlanta, Ga., and they and their association were charged in a complaint issued by the commission with conspiring and confederating together to prevent manufacturers and producers from selling confectionery and allied products to competitors whom they deemed "illegitimate" dealers, and to suppress competition, especially competition in price. After trial and hearing the commission found that the association and its members, with the exception of Harry L. Schlesinger, conspired and confederated together to prevent all dealers except those dealing principally in confectionery and candy from obtaining such merchandise from the manufacturers thereof and from other sources, and that in order to accomplish and effectuate the purpose and object of the conspiracy they employed the following methods, among others: (a) Held meetings for the interchange of information concerning, and the discussion and adoption of, plans and measures for the carrying out of their conspiracy; (b) wrote letters and otherwise informed manufacturers who sold candy, confectionery, and allied products to their competitors, the so-called "illegitimate " dealers, that such so-called "illegitimate" dealers should not be permitted to purchase from said manufacturers; (c) threatened to cancel and did cancel orders to said manufacturers, giving as the reason therefor the sale by such manufacturers to so-called "illegitimate" dealers; (d) falsely representing to such manufacturers that the so-called "illegitimate" dealers were selling goods below the prices suggested by such manufacturers and were thereby demoralizing the market; and (e) gave orders for merchandise to be filled by one of said manufacturers only on the condition that the manufacturer would thereafter refuse to sell to certain competitors which they classified as "illegitimate dealers." The commission also found that as a result of the above-mentioned conspiracy many of the respondents' competitors have been hindered and prevented from purchasing in interstate commerce and that competition in said products has been suppressed. An order was entered by the commission on March 30, 1927, directing the association and its members, with the exception of Harry L. Schlesinger and T. S. Lewis Co., to cease and desist from cooperating, confederating, or agreeing among themselves to hinder or prevent any manufacturer or dealer from selling or any jobber, dealer, or other person from purchasing in interstate commerce confectionery, candy, and other products, and also to cease and desist from making any attempt or effort through the association or by concert of two or more members to hinder or prevent by persuasion, intimidation, threat, withdrawal of patronage or by any other method any person, firm or corporation from purchasing or selling such products in interstate commerce. Acme Fountain Pen Co.-Violation of section 5 of the Federal Trade Commission act.--Two partners owning this company were charged in complaint issued by the commission with selling fountain pens and lead pencils labeled with fictitious and exaggerated prices which were greatly in excess of the actual value of the pens and pencils. They were also charged with falsely representing themselves as manufacturers. After trial and hearing the commission found that respondents, although so representing themselves, were not in fact the manufacturers of their pens and pencils. The commission also found that respondents placed a paper band on their pens and pencils bearing price marks of $7 on the fountain pen and $4 on the lead pencil and that they represented that these were the ordinary and customary retail prices, which prices the commission found were fictitious, false, and exaggerated and greatly in excess of the price at which the products were customarily sold to the consuming public. An order was entered on April 26, 1927, directing the respondents to cease and desist from representing that they are the manufacturers of their pens and pencils and also from using such false and fictitious price marks. Arnold Electric Co.-Price maintenance-Violation of section 5 of the Federal Trade Commission act.-This company, a manufacturer of electrically driven drink-mixing machines, sells same to about 1.000 dealers throughout the United States. It was charged in a complaint by the commission with enforcing a merchandising system of fixing and maintaining specified uniform prices for the resale of its machines by dealers, refusing to supply price cutters and employing cooperative means for the maintenance of the resale prices fixed by it. After trial and hearing the commission found that it supplied its dealers with a "confidential price list" specifying the retail prices at which the machines were to be sold by the dealers. Instructions to its salesmen were carried out by which dealers were informed that the company would cut off their supply of machines if they deviated from the confidential price list and by which the company procured from dealers in many cases oral agreements that such dealers would maintain the prices fixed by the company. The commission also found that respondent removed from its list of customers those jobbers who failed to give the company assurances that they would not deviate from the prices fixed by the company. For the purpose of eliminating price cutting among dealers, respondent enlisted the cooperation and aid of its dealers in ascertaining the names of dealers who cut prices. All of which the commission found was with the effect that the uniform resale prices fixed by the company generally prevailed and prevented dealers from selling the machines at lower prices. An order was entered by the commission on December 23, 1926, directing the company to cease and desist from (1) entering into contracts, agreements, or understandings with dealers that its machines are to be resold by dealers at specified prices fixed by it; (2) procuring from its dealers promises or assurances that the prices fixed by it will be observed by such dealers; (3) requesting dealers to report the names of other dealers who do not maintain or are suspected of not maintaining the fixed resale prices; and (4) seeking the cooperation of dealers in making effective its price maintenance policy by, among other things, eliminating the source of supply of price cutters. Sheffield" silverware cases-Violation of section 5 of the Federal Trade Commission act.-Orders to cease and desist have been issued during the year against nine manufacturers and dealers of silverplated ware who, after complaint and hearings before the commission, were found by it to have been using the word "Sheffield" in describing or branding silver-plated ware made in the United States. The commission found that the word "Sheffield," when used in connection with silverware and silver-plated ware, signifies and denotes to a substantial portion of the public that such merchandise was manufactured in Sheffield, England, and is of the highly regarded quality which has become associated with the name and the silversmith industry of Sheffield, England. Orders were entered against each of the respondents directing them to cease and desist from using the word "Sheffield" in branding silver-plated ware which has not been made in Sheffield, England. Philippine mahogany cases-Violation of section 5 of the Federal Trade Commission act.-In complaints issued by the commission against Indiana Quartered Oak Co., Jones Hardwood Co., and Thomas E. Powe and F. C. Harrington, partners, trading as Thomas E. Powe Lumber Co., the respondents were charged with the use of unfair methods of competition in that they sold as "mahogany" and Philippine mahogany " certain woods grown in the Philippine Islands and having the general appearance of mahogany. Testimony was taken and after hearing before the commission it found that the woods sold by respondents as " Philippine mahogany," which are set out by name in the order to cease and desist, were not in fact mahogany, and the selling of said woods as "mahogany " or " Philippine mahogany" is misleading and deceptive to the purchasing public. Orders were entered by the commission on July 15, 1926, directing the respondents to cease and desist from advertising, describing, or otherwise designating or selling or offering for sale under the term "Mahogany," "Philippine Mahogany," or any other term of similar import, woods known under the common or trade names," red lauan," "white lauan," "tanguile," "narra," "apitong," "bataan," "lamao," "almon," "orion," "batang," "bagaac," "batak," and "balachacan," or any other wood, lumber, or wood products, unless such wood or lumber, or the wood from which such products are made, is derived from the trees of the mahogany or meliaceae family. Subsequent to the issuance of the above-mentioned orders to cease and desist respondents were granted a rehearing by the commission. which was still pending at the close of the fiscal year. Tuinplex Sales Co.-Commercial bribery-Violation of section 5 of the Federal Trade Commission act.-Complaint was issued against the above-named respondent, a manufacturer of safety-razor blade stroppers, by which it was charged with the use of unfair methods of competition in the offering and giving of sums of money to salesmen in the employ of retail merchants, without the knowledge or consent of their employers, to induce said salesmen to sell respondent's stroppers to the exclusion of those of competitors. Upon an agreed statement of facts entered by respondent the commission found that there were more than 1,300 salesmen of merchants in the United States who were receiving from respondent cash rewards for each of respondent's stroppers sold by them as an inducement to such salesmen to push respondent's product; that said salesmen were employed in stores where the owners or operators thereof were opposed to the practice of the manufacturer giving premiums to such salesmen and that they did not know that said salesmen were receiving premiums or rewards from respondent. The commission also found that the executive officials of respondent had not authorized or approved the payment of rewards to salesmen without the knowledge and consent of their employers, and when, after learning that rewards had been paid to certain salesmen without the knowledge and consent of their employers, respondent instituted a policy whereby such salesmen were required to have the consent of their employers before becoming eligible for the reward or premiums. An order was entered by the commission on January 11, 1927, directing respondent to cease and desist from offering to give or giving to salesmen employed by dealers in the products made by respondent any pre |