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waiving any and all rights they may have to require the introduction of such testimony.

FINDINGS AS TO THE FACTS.

PARAGRAPH 1. That both respondents, Louis Philippe, Inc., and Park & Tilford, are corporations organized under the laws of the State of New York, with their principal places of business in the city of New York, N. Y.

PAR. 2. That Louis Philippe is the president and treasurer and owns and controls the majority of the capital stock of Louis Philippe, Inc., which corporation was organized under his direction in 1915; Louis Philippe was formerly a citizen of and a resident in France, until 1910, when he came to the United States, and is now a naturalized citizen of this country. In 1905 he began the production of a toilet preparation which he designated "Creme Angelus," and marketed the same in France for about five years. Since he came to the United States in 1910 he has manufactured and marketed this toilet preparation as an individual and through the corporation which he formed, until the year 1920, when Louis Philippe, Inc., entered into a contract with Park & Tilford, by the terms of which said. Park & Tilford agreed to purchase the entire output of manufactured toilet preparations of Louis Philippe, Inc., the delivery of the same to take place at the factory of Louis Philippe, Inc., in the city of New York; that prior to the delivery of these toilet preparations they were completely labeled and fully prepared at the factory of Louis Philippe, Inc., and ready for distribution upon their delivery to Park & Tilford.

PAR. 3. The contract further provided that the advertising of these products should be entirely under the control and direction of Park & Tilford as to the subject matter, style and arrangement; the cost, however, of said advertising to be borne equally by the two respondents in this proceeding. Prior to November, 1920, the " Angelus Cleansing Cream" labels contained the following matter:

An exquisite French preparation of real lemons; cleansing and bleaching cream. Instantly removes dust and make-up. Whitens the skin.

That since November, 1920, said labels contained the following printed matter:

Creme Angelus, the lemon cleansing cream, cleans and instantly removes dirt, dust, and powder from the pores. Hygienic. Cleanses and softens the skin. Bleaches. A French preparation of lemon and oil emollients. Softens and whitens the skin. For sunburn, freckles and tan. Reg. U. S. Pat. Off., Louis Philippe, Inc., N. Y. Made in U. S. A.

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That in November, 1920, and prior thereto, labels for the preparation now known as "Tissue Cream " contained the following printed matter:

An exquisite French retiring cream of real lemons for bleaching the skin. A superfine French skin food and perfect massage cream.

Since that date said labels contain the following printed matter:

Creme Angelus, the lemon tissue cream, a superfine skin improver, invigorates and strengthens the tissue by careful massage. A retiring cream of lemon and oil emollients. Softens. Whitens, soothes and refreshes. Reg. U. S. Pat. Off., -Louis Philippe, Inc., N. Y. Made in U. S. A.

PAR. 4. That the toilet preparations of "Creme Angelus" are made through a secret formula known only to Louis Philippe; that these preparations contain no juice of lemons, but do contain as one of the ingredients, a constituent produced from lemon rind or skin known as "Oil of Lemon, U. S. P. B. F., hand pressed"; and all of these preparations herein referred to are made in the United States. PAR. 5. The respondent Park & Tilford is engaged in the business. among other things, of buying and selling in wholesale quantities, all of the output of toilet preparations of Louis Philippe, Inc., and .causes such commodities when sold by it to be transported to the purchasers thereof, from the State of New York through and into other States of the United States, and carries on said business in direct and active competition with other persons, partnerships and corporations similarly engaged, and in promoting the sale and distribution of these products, advertised the cleansing cream trademarked "Creme Angelus" on the 31st day of October, 1920, as follows:

Made with real lemons. The juice of the lemon-Nature's own source of the beautiful complexion of Italy's and Spain's fairest daughters-now for the first time skillfully blended with the choicest oil emollients by Louis Philippe into a superfine cleansing cream.

Accompanying this advertisement was a pictorial illustration showing a hand holding half of a cut lemon, from the pulp of which lemon, drops of lemon juice were being squeezed. That advertisement, which appeared in the New York Times of October 31, 1920, was repeated, similarly illustrated, in the same paper of November 11, 1920, and in the New York World of December 12, 1920, but the printed matter did not contain any statement that the cream contained lemon juice. The arrangement of this advertising matter was changed at different times, both as to wording and as to the pictorial illustrations. The New York Times issue of September 12, 1920, contained the advertisement of Angelus cleansing cream de

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scribing it as the "product of real lemons." The pictorial illustration was the hand holding a half of a cut lemon and squeezing from the pulp, drops of lemon juice into an open jar of the cleansing cream; beside the jar was the half of a cut lemon; and this advertisement, as illustrated, was repeated October 10, 1920, and November 7, 1920, in the same newspaper. That respondent, in the latter part of 1920, caused advertisements of "Angelus " products to be inserted in various publications of general circulation in the State of New York and States adjacent thereto, in which advertisements said products were described as being "made from real lemons." Then and thereafter the illustration was changed so as to show a hand holding half a lemon suspended over a jar of "Creme Angelus," with no drops dripping into the jar, and with the top of the jar closed and sealed.

PAR. 6. The advertising campaign of these products was conducted by a reputable advertising agency in the city of New York, under the direction of Park & Tilford. During this campaign Park & Tilford gave directions to this advertising agency to omit from the advertisements statements that "Creme Angelus" contained lemon juice. Through an inadvertence on the part of the advertising agency, twice after notice were statements made that lemon juice was used in the preparations.

PAR. 7. That since June 1, 1921, the advertisements of these preparations have not contained statements that they are made from lemon juice, nor have any of the illustrations contained pictures of real lemons.

PAR. 8. That the effect of such labeling and advertising as herein set forth, where the printed statements referred to the preparations as containing the "juice of lemons," or where the pictorial illustrations showed real lemons from which juice was being squeezed, or other similar illustrations of real lemons, whether associated together or used separately, has been to mislead purchasers and the general public into believing that they are obtaining through the use of these preparations, the cleansing or detergent effects of lemon juice, when in fact there is not nor never has been lemon juice therein.

CONCLUSION.

That the practices of said respondents, under the conditions and circumstances described in the foregoing findings and condensed in the eighth paragraph thereof, are unfair methods of competition in interstate commerce and constitute a violation of the Act of Congress approved September 26, 1914, entitled, "An Act to create a

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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 under the pleadings and the stipulations received by an examiner duly appointed by the Commission, and the Commission having made its findings as to the facts and 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," which said report is hereby referred to and made a part hereof,

Now, therefore, it is ordered, That the respondents, Louis Philippe, Inc., and Park & Tilford, or either of them, their officers, directors, agents and employes, cease and desist from directly or indirectly making or causing to be made, statements or representations in labels, advertisements in newspapers, magazines and other publications of general circulation, or in other advertising matter which respondents, or either of them cause to be given general circulation, which statements or representations relate to toilet preparations offered for sale or sold by respondents or either of them in the due course of commerce among the several States of the United States, or with foreign nations, and announce in express terms or by implication that such toilet preparations contain the juice of lemons, except and unless such preparations do in fact contain such juice of lemons; or from illustrating such advertisements or advertising matter with pictures which may have the capacity or tendency to create in the minds of the purchasing public, the erroneous belief that such preparations contain the juice of lemons.

It is further ordered, That the respondents file a report in writing with the Commission, three months from notice hereof, stating in detail the manner in which this order has been complied with and conformed to.

Commissioner Van Fleet dissenting.

Complaint.

FEDERAL TRADE COMMISSION

v.

SWIFT & COMPANY.

COMPLAINT IN THE MATTER OF THE ALLEGED VIOLATION OF SECTION 7 OF AN ACT OF CONGRESS APPROVED OCTOBER 15, 1914, AND SECTION & OF AN ACT OF CONGRESS APPROVED SEPTEMBER 26, 1914.

SYLLABUS.

Docket 453-August 3, 1922.1

Where a corporation engaged in the purchase of live stock and the manufacture, distribution, and sale of meat and meat products, purchased the capital stock of two competing packing plants, assumed the operation of said competing businesses, caused said stock to be issued in the names of certain of its officers and employees to be held for its use and benefit, and caused said officers and employees as officers and stockholders of said competing businesses to convey to it the respective businesses and properties for a nominal consideration; with the result that (1) existing competition between said packing plants and between said corporation and said packing plants in the sale of meat and meat products, and (2) increasing, prospective, and potential competition between said plants in the purchase of live stock, was suppressed and eliminated, and (3) commerce in a section or community was restrained:

Held, That such acquisition of stock, under the circumstances set forth, constituted a violation of Section 7 of the Clayton Act, and unfair methods of competition in violation of Section 5 of the Federal Trade Commission Act.

AMENDED COMPLAINT.

I.

The Federal Trade Commission, having reason to believe from a preliminary investigation made by it that Swift & Company, hereinafter referred to as the respondent, has been and is violating the provisions of Section 7 of an Act of Congress approved October 15, 1914, entitled “An Act to supplement existing laws against unlawful restraint and monopolies, and for other purposes," issues this complaint, stating its charges in that respect on information and belief as follows:

PARAGRAPH 1. That the respondent, Swift & Company, is a corporation organized, existing and doing business under and by virtue of the laws of the State of Illinois, with its principal office and place

business located at the City of Chicago, in said State, and has been and is now and at all times hereinafter mentioned engaged in

Findings printed as very slightly modified by the Commission on November 17, 1922. 80044°-24-VOL 5-11

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