That the practices of said respondents under the conditions and circumstances described in the foregoing findings are unfair methods of competition in interstate commerce and constitute a violation of an Act of Congress approved September 26, 1914, entitled "An Act to create a Federal Trade Commission, to define its powers and duties and for other purposes". ORDER TO CEASE AND DESIST. This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission, the answer of the respondents, the testimony and the evidence, and the Commission having made its findings as to the facts with its conclusion that the respondents have violated the provisions of an Act of Congress approved September 26, 1914, entitled, "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes,' It is ordered, That the Cigar Manufacturers' Association of Tampa, Florida, Jose Escalante, as President of said Association; Enrique Pendas, as Treasurer of said Association, and A. A. Martinez, as Secretary of said Association and each of its aforesaid officers as an individual, and the Members of said Cigar Manufacturers' Association of Tampa, Florida, namely: Solis Alvarez Francisco Arango & Co. Arguelles, Lopez & Bros. F. Benjamin & Co. Perfecto Garcia & Bros. Havana-American Cigar Co. Saint Minitol Cigar Co. Diaz Raphael & Co. and said respondent cigar box manufacturers, namely; the Tampa Box Company, a corporation, D. N. Holway, J. W. Young and J. Van Roe, copartners under the firm name and style of D. N. Holway & Company; George F. Weidman, T. D. Fisher and J. A. B. Anderson, under the firm name and style of Weidman, Fisher & Co., forever cease and desist (1) From entering into any agreement or understanding whereby control of the entire production of cigar boxes manufactured by respondents Tampa Box Co., Weidman, Fisher & Co. and D. N. Holway & Co., is exclusively vested in respondent Cigar Manufacturers Association of Tampa, Florida, or its members, and nonmember cigar manufacturers of cigars are hindered and obstructed in procuring cigar boxes, and (2) From entering into any agreement or understanding whereby cigar manufacturers who are not members of respondent Association are hindered or obstructed in or prevented from purchasing cigar boxes from the manufacturers thereof upon the same terms and conditions as members of respondent Association, and (3) From continuing in force and effect three certain agreements by and between respondent Association and respondent cigar box manufacturers, each dated March 16, 1920, or any extensions or renewals thereof. It is further ordered, That the respondents within sixty days after the service upon them of a copy of this order, file with the Commission a report in writing setting forth in detail the manner and form in which they have complied with the order to cease and desist herein before set forth. Complaint. 5 F. T. C. FEDERAL TRADE COMMISSION v. ALFRED KLESNER, DOING BUSINESS UNDER THE TRADE NAME AND STYLE OF SHADE SHOP, HOOPER & KLESNER. COMPLAINT IN THE MATTER OF THE ALLEGED VIOLATION OF SECTION 5 OF AN ACT OF CONGRESS APPROVED SEPTEMBER 26, 1914. SYLLABUS. Docket 696-June 23, 1922. Where an individual engaged in the manufacture and sale of window shades under the style of "The Shade Shop," carried on his business under said name, thus advertising it, and displaying the same on his letterheads, billheads, windows of his business places, and delivery wagons, so that said business had come to be well known to the trade and purchasing public, and the trade name Shade Shop" had come to mean and signify to the purchasing public the business owned and operated by him; and thereafter a competitor, for the purpose of injuring him in his said business, and securing the same, (a) Placed upon the windows of its establishment, theretofore jointly occupied by itself and by said individual, the sign "Shade Shop," using the same size, style and color of lettering and the same place theretofore used by said individual for his sign "The Shade Shop "; (b) Used the words "Shade Shop " upon its letterheads and billheads; (c) Advertised and listed its business in the telephone directory as Shade Shop, Hooper & Klesner"; (d) Placed upon its delivery trucks the words "Shade Shop, Hooper & Klesner"; and (e) Deceived and misled customers of said individual who entered its establishment into believing that its store was that of said individual; With the result that there was confusion in the trade and customers of said individual were confused and deceived into purchasing of said competitor in the mistaken belief that they were dealing with him: Held, That such simulation of trade name, under the circumstances set forth, constituted unfair methods of competition. COMPLAINT. The Federal Trade Commission, having reason to believe from a preliminary investigation made by it that Alfred Klesner, doing business under the trade name and style of Shade Shop, Hooper & Klesner, hereinafter referred to as respondent, has been and is now using unfair methods of competition in interstate commerce in violation of the provisions of Section 5 of an Act of Congress approved September 26, 1914, entitled: "An Act to create a Federal Trade Commission, to define its powers and duties, and for other pur poses," and it appearing that a proceeding by it in respect thereof would be to the interest of the public, issues this complaint stating its charges in that respect on information and belief as follows: PARAGRAPH 1. That the respondent, Alfred Klesner, doing business under the trade name and style of Shade Shop, Hooper & Klesner, is a resident of the City of Washington, District of Columbia, with his office and principal place of business located at the southeast corner of 12th & H Streets, N. W., in said City, engaged in the business of selling wall paper and window shades throughout the District of Columbia in direct competition with other persons, firms, and corporations similarly engaged. PAR. 2. That W. Stokes Sammons is a resident of the City of Washington, District of Columbia, engaged since the year 1907 in the business of manufacturing and selling window shades throughout said District of Columbia under the trade name and style of The Shade Shop which he adopted in 1907 and under which he has continually carried on and conducted, and is now carrying on and conducting his said business. That during such period he has owned and operated stores for the manufacture and sale of window shades under the name of The Shade Shop at the following locations in said City of Washington, to wit: and during all of such period has by advertisements placed in newspapers of general circulation throughout the District of Columbia and by letterheads, billheads, and in city and telephone directories and by signs prominently displayed upon his windows and various places of business and by other means, held himself out to the trade and general public as The Shade Shop and as such has become, and is, well known and established to dealers and purchasers of window shades and the general public in and throughout said District of Columbia. PAR. 3. That in May, 1914, the respondent, Alfred Klesner, then in partnership with one Harry Hooper, trading as Hooper & Klesner, and engaged in the business of painters, paperhangers, and decorators, leased store room located at the southeast corner of 12th and H Streets NW., in the City of Washington, District of Columbia, renting one-half of said store to the said W. Stokes Sammons, who occupied and used the same for the manufacture and sale of window shades, neither the said respondent nor the said Hooper being then or theretofore engaged in selling window shades and the said Sammons utilized one of the two show windows to said store to display window shades, having his trade name THE SHADE SHOP prominently displayed thereon; that thereafter, to wit, in November, 1915, said Sammons moved his business to a store room located two doors south on 12th Street, to wit, No. 733 12th Street NW., in said City of Washington, where he has ever since and is now carrying on and conducting his business under the trade name of The Shade Shop. PAR. 4. That the respondent, Alfred Klesner, at the time of such removal as aforesaid, refused to permit the said Sammons to remove his sign "The Shade Shop" from the show window and premises at 12th & H Streets NW., in said City of Washington and thereafter erased and removed the word "The" from said signs and proceeded to engage in the business of manufacturing and selling window shades and ever since has manufactured and sold and is now selling and offering to sell window shades to the general public under the trade name and style of Shade Shop, Hooper & Klesner, at and in that portion of the said store room formerly occupied by the said Sammons, trading as "The Shade Shop" and the respondent, Klesner, having dissolved his partnership with the said Hooper in the year 1919 has ever since carried on and conducted his business as aforesaid and ever since November, 1915, has left the sign "Shade Shop" upon the said premises at the corner of 12th & H Streets NW.; has carried the sign Shade Shop on the side window of an auto truck owned and operated by him; has caused and permitted the telephone directory for the City of Washington to list his business as Shade Shop, Hooper & Klesner, and by other means has advertised and held his business out to the trade and general public as Shade Shop. That the effect of such simulation and appropriation of name has been, and is, among others— (a) to confuse the trade and general public and to cause customers and prospective customers of the said Sammons to trade and deal with the respondent in the belief that they were trading and dealing with the said Sammons. (b) to mislead and deceive the trade and general public into the erroneous belief that The Shade Shop owned and operated by the said Sammons, at 733-12th Street, N. W., in the City of Washington is identical with and the same as that of Shade Shop, owned and operated by the respondent, at the southeast corner of said 12th & H Streets, N. W. |