Document 6wRQemEJnJ3gKgqmDbq1v5GOm

FILE NAME: National Safety Council (NSC) DATE: 1941 Dec 27 DOC#: NSC275 DOCUMENT DESCRIPTION: Legal - Amended Federal Trade Commission Complaint / . UNITED STATES OF A?ERICA BEFORE FEDERAI^ TRADE COMMISSION In the Matter of ACME ASBESTOS COVERING AND FLOORING COMPANY, a corporation; ASBESTOS, ASPHALT AND INSULATION MANUFACT 7RING COMPANY, a corporation; ATLANTIC ASBESTOS CORPORATION, a corporation; A. F . BENNETT COMPANY, a corporation; THE PHILIP CAREY MANUFACTURING COMPANY, a corporation; THE CLARK ASBESTOS COMPANY, a corporation; EMPIRE ASBESTOS PRODUCTS, IN C ., a corporation; GILLEN-COLE COMPANY, a corporation; JOHNS-MANVILLE CORPORATION, a corporation; KEASBSY & MATTISON COMPANY, a corporation; L . A. RUBBER & ASBESTOS WORKS INCORPORATED, a corporation; G. A. MACARTHUR COMPANY, a corporation; NORRISTOWN MAGNESIA AND ASBESTOS COMPANY, a corporation; W. S . NOTT COMPANY, a corporation; PACIFIC ASBESTOS & SUPPLY COMPANY, a corporation; PLANT RUBBER & ASBESTOS WORKS, a corporation; THE RUBEROID CO ., a corporation; SALT- MOUNTAIN COMPANY, a corporation; STANDARD ASBESTOS MANUFACTURING a corporation; DONALD TULLOCH, J R ., an in d iv id u a l. COMPANY, DOCKET NO. 4613 206 IVNUliVN JHi i (JJJIIUuadJO AMENDED COMPLAINT \ Pursuant to tne provisions o f the Federal Trade Commission Act, and by virtue of the authority vested in i t by said Act, the Federal Trade Commission, having reason to believe that the parties named in the caption hereof, and more p a r tic u la r ly described and referred to hereinafter as respondents, have violated the provisions of Section 5 of said Act, and i t appearing to the Commission that a proceeding by i t in respect thereof would be in the public in te r e s t, hereby issues i t s amended complaint, sta tin g i t s charges in that respect as follow s: PARAGRAPH ONE: The words and terms set out in tnis paragraph sh a ll have the following meanings, wherever used in this amended complaint: "Licensed m aterials" means the follow ing materials which the respondents c la s s ifie d in the sub-license agreements which the respondent Donald Tulloch, J r . , had with the other respondents, as fo riin g part of United States Patent No. 1,972,500: (1) Low pressure (coarse corrugated) A ir c e ll type asbestos pipe covering, sheets and/or b lo ck s. (2) Low pressure (fine corrugated) A ir c e ll type asbestos pipe covering, sheets and/or b locks.3456789 (3) Low pressure Laminated type asbestos pipe covering, sheets and/or b lo ck s. (4) W oolfelt types pipe covering. (5) Anti-sweat type pipe covering. (6) Frost proof type pipe coverings. (7) High pressure Laminated type asbestos pipe covering, sheets, and/or blocks. (8) Corrugated asbestos paper. (9) Asbestos paper and rollboard. (M aterials so designated include a l l paper whose c h ie f con stituent is asbestos fib e r. ) 207 -2 ' (10) Wool f e l t paper. (M aterials so designated include a l l paper whose chief constituent is wool or rag fib e r .) (11) Sponge f e l t paper. (Materials so designated include a l l paper whose ch ief constituent is asbestos and sponge fib e r s .) "Non-licensed m aterials'' includes such items as: solid brass, zin c, and lacquered bands, fle x ib le range b o ile r ja ck e ts, and canvas covering. "Toohey Patent" means United States Patent No. 1,972,500, issued on September 4, 1934, to respondent Johns-Manvilie Corporation as assignee of Edward A. T'oohey and Earl K. W illiam s. "Respondent corporations" means a l l o f the respond ents named in the caption hereof, except respondent Donald Tulloch, J r . The P h ilip Carey Company, the wholly owned subsidiary of respondent The P h ilip Carey Manu factu rin g Company, is likewise referred to in th is complaint as a "respondent corporation", for the reason tnat the respondent, The P h ilip Carey Manufacturing Company i s le g a lly responsible and lia b le fo r the acts and p ractices performed by the said The Philip Carey Company prior to i t s d isso lu tio n as hereinafter set forth. PARAGRAPH TWO: Respondent, Acme Asbestos Covering and Flooring Company, is a corporation organized and e x istin g under the laws of the State of I l l i n o i s , with i t s o ffic e and prin cipal place of business being located at Fulton and Elizabeth S tr e e ts , Chicago, I l l i n o i s . Respondent, Asbestos Asphalt and Insulation Manufactur ing Company, i s a corporation organized and e x istin g under the laws o f the State of I l l i n o i s , with i t s o ffic e and prin cipal place of business being located at 2100 West Fullerton Avenue, Chicago, I l l i n o i s . ( It is the successor to the I l l i n o i s P h ilip Carey Company.) Respondent, A tla n tic Asbestos Corporation, is a corporation organized and e x is tin g under the laws of the State o f New York, with i t s o ffic e and principal place of business being located at 2128 Westchester Avenue, Bronx, New York. I t was organized on January 1, 1939, when 3- i t succeeded to the business, a ss e ts, good w ill , etc* of J . Ozurovitch, Inc. On such succession i t adopted, accepted, approved, and became a party to any and a l l of the agreements hereinafter set out which may have been entered in to by i t s predecessor, J . Ozurovitch, Inc. Respondent, A. H. Bennett Company, is a corporation organized and e x istin g under the laws o f the State of Minnesota, with i t s o ffic e and prin cipal place of business being located at 113 F ir s t S tre e t, North, Minneapolis, Minnesota. Respondent, The P h ilip Carey Manufacturing Company, is a corporation organized on or about February 14, 1888, under the laws of the State of Ohio, and which has existed under the laws o f said state since that date, vdth i t s o ffic e and p rin cip a l place o f business being located at Lockland, Ohio. One o f i t s wnolly owned sub sid ia r ie s was The P hilip Carey Company, a corporation organized on or about June 10, 1907, under tne laws of the State of New Jersey, and e x is tin g under said laws u n til about June, 1941, when i t was dissolved for tax purposes. G. D. Crabbs, R. S . King, C. A. B lin n , W. L . S te ffe n s , and 'W. C. Ig n a tiu s, were Chairman o f the Board, President, Vice President, vice President, and SecretaryTreasurer, respectively of both the respondent, The P h ilip Carey Manufacturing Company and The P hilip Carey Company, at the time of the l a t t e r ' s d isso lu tio n . Also the o ffic e and principal place of business of both corporations always was during the existence o f The P h ilip Carey Company, at the same lo c a tio n , Lockland, Ohio, When The P h ilip Carey Company was dissolved in about June, 1941, a l l o f i t s assets were transferred to respondent, The P h ilip Carey Manufacturing Company, which respondent likewise assumed a l l of what i t considered to be the law ful and valid contracts of i t s wholly owned subsidiary, The P h ilip Carey Company, in cludin g the sub-licensing agreement, hereinafter described, which then existed between the said The P h ilip Carey Company and respondent, Donald Tulloch, J r . , and said respondent, The Philip Carey Manufacturing Company, has c ntinued, and is s t i l l continuing the operation under said sub-licensing agree ment and the merchandising plan, herein after described, which is a part thereof or an adjunct thereto. 209 4- n r n o n m i r p n i t t w t n a t i o n *! a d o m i v t c Respondent, The ClarK Asbestos Company, is a corporation organized and e x istin g under the laws of the State of Ohio, with i t s o ffic e and p rin cip al place of business being located at 1893 East 55th Stre e t, Cleveland, Ohio* Respondent, Empire Asbestos Products, I n c ., i s a corporation organized and e x istin g under the laws of the State of New York, witn i t s o ffic e and prin cipal place of business being located at the A tlas Terminal, Glen dale, Long islan d , New York. Respondent, G illen-Cole Company, is a corporation organized and e x istin g under the laws of the State of Oregon, with i t s o ffic e and p rin cip a l place of business being located at 714 S . W. Front Avenue, Portland, Oregon. Respondent, Johns-Manville Corporation, is a corporation organized and e x istin g under the laws of . the State of New Yori-:, with i t s o ffic e and principal place of business being located at 22 East 40th Street, New York, New York. Respondent, Keasbey & Mattison Company, i s a cor poration organized and e x istin g under the laws of the State of Pennsylvania, with i t s o ffic e and principal place o f business being located at Ambler, Pennsyl vania. Respondent, L . A. Rubber & Asbestos Works, Incor porated, i s a corporation organized and e x istin g under the laws of the State of C a lifo r n ia , with i t s o ffic e and p rin cip al place o f business being located at 124 East Third S tre e t, Los Angeles, C a lifo r n ia . Respondent, G. A. MacArthur Company, i s a cor poration organized and existin g under the laws of the State of Minnesota, with i t s o ffic e and principal place of business being located at 2387 Hampden Avenue, S t . Paul, Minnesota. This corporation was organized in February, 1913, under the name of Twin C ity Pipe Covering Company, which corporation was changed to i t s present form in May, 1931. 210 -5 - 4 A. Respondent, Norristown Magnesia and Asbestos Company, is a corporation organized and e x istin g under the laws o f the State o f Pennsylvania, with i t s o ffic e and principal place o f business being located at Norristown, Pennsylvania Respondent, W. S . Nott Company, is a corporation organized and e x istin g under the laws o f the State of Minnesota, with it s o ffic e and principal place of business being located a t Second Avenue, North, and Third Street, Minneapolis, Minnesota. Respondent, P a c ific Asbestos & Supply Company, is a corporation organized and e x istin g under the laws of the State of Oregon, with i t s o ffic e and prin cipal place of business being located, at S . W. Front and Clay S tre e ts, Portland, Oregon, Respondent, Plant Rubber Asbestos Works, is a corporation organized and e x istin g under the laws of the State o f C a lifo r n ia , with i t s o ffic e and prin cipal place of business being located at 557 Brannan S tr e e t, San Francisco, California* Respondent, The Ruberoid C o ., is a corporation organized and e x istin g under the laws o f the State of New Jersey, with i t s o ffic e and principal place o f business being located at 500 F ift h Avenue, New *ork, New York, Respondent, S a il Mountain Company, is a corporation organized and e x istin g under the laws o f the State of Delaware, with i t s o ffic e and principal place of business being located at 70 Pine S tr e e t, New York, New York, Respondent, Standard Asbestos Manufacturing Company, is a corporation organized and e x istin g under the laws of the State of I l l i n o i s , with it s o ffic e and principal place o f business being located at 820-22 West Lake Street, Chicago, I llin o is . Respondent, Donald Tulloch, J r . , is an in d ivid u al, having his prin cipal o ffic e and place of business on the 16th flo o r o f the Inquirer Building, Philadelphia, Pennsylvania. 211 -6' c c PARAGRAPH THREE: Respondent corporations manufact ure and s e ll approximately from 80 per cent to 90 per cent of the low pressure asbestos pipe covering manufact ured and sold in the United S ta te s , with respondents Johns-K an vili Corporation and The P h ilip Carey Manufact uring Company and i t s wholly owned subsidiary, The P h ilip Carey Company up to the time o f the d issolution o f the said The P h ilip Carey Company, about June, 1941, manufact uring and s e llin g approximately 50 per cent o f same. Both licen sed and non-licensed materials are embodied, involved, and employed in the manufacture, use, and sale of such covering. Some o f respondent corporations manufacture some or a l l of their licensed and non-licensed materials end convert same into low-pressure asbestos pipe covering, while the other respondent corporations, which are known in the trade as "winders," purchase some or a l l o f said m aterials from those respondent corporations which manu facture same, and then convert them into such covering. To the extent that the respondent corporations act c o llu s iv e ly and c o lle c tiv e ly in the pricing and sale of such covering and m a teria ls, they are in a position to dominate and control the prices at which same must be purchased by the purchasers and users thereof throughout the United S ta te s , PARAGRAPH POUR: In the course and conduct of their respective businesses, each of respondent corporations s e lls and d istrib u tes licen sed and non-licensed m aterials and the asbestos covering, which are manufactured or converted by i t , to the purchasers thereof located in the various States of the United States and in the D is t r ic t of Columbia, and in connection with such sa le s, transports or causes to be transported said products to such purchasers located in the various States of the United States other than the state o f o rigin of said shipments and in the D is t r ic t o f Columbia, The said respondent corporations have maintained, and s t i l l do maintain, a regular current o f trade in such products in commerce between and among the various States o f the United States and in the D is t r ic t of Columbia, 212 - 7- V > rr p n n n n r r n at t u r PARAGRAPH FIVE: Respondent, Donald Tulloch, J r . , (referred to herein as "respondent Tulloch") aided, abetted, furthered, cooperated w ith, ano was an instrum entality o f, and a party to , the understanding, agreement, combination, and conspiracy hereinafter set out, and a ctiv e ly p a r tic i pated in the performance o f some, i f not a l l , of the acts and things hereinafter set o u t, which were done for the purpose of making said agreement, understanding, combina tio n , and conspiracy, e ffe c t iv e , and o f requiring compliance therewith by respondent corporations, PARAGRAPH SIX: Each of respondent corporations has been, during the various times herein set fo r th , and some of them s t i l l are, in competition with one or more of the other respondent corporations in making and seeking to make sales in commerce between and among the various states of the United States and in the D is t r ic t of Columbia, of some or a ll o f the licensed and non-licensed m aterials, and also of the low-pressure pipe covering embodying some or a l l o f such m aterials except in so fa r as such competi tio n has been hindered, lessened, r e str ic te d , or fo re sta lle d by the understanding, agreement, combination, and conspiracy and the methods, p o lic ie s , and p ractices done in pursuance thereto and in furtherance thereof, as hereinafter set fo rth . PARAGRAPH SEVEN: During the year 1931, application was made fo r respondent Johns-iJanville Corporation for the Toohey patent which contained claims embodying the licensed m aterials and for an a i r - c e l l asbestos which, by the in sertion of a wax " s iz e r ," would make the asbestos cover ing both water repellent and moisture proof. Such asbestos is used prim arily for low pressure pipe covering. This patent was granted on September 4, 1934, and as part o f, and an incident to , the agreement, understanding, combination, and conspiracy hereinafter set fo r th , respondent JohnsManville Corporation d id , on September 11, 1935, grant to respondent Tulloch an exclusive license to make, use, and s e l l , and exclusive righ t to issue non-exclusive licen ses to others to \ise and s e l l the materials and products covered by the Toohey p aten t, PARAGRAPH EIGHT: Prior to and during the year 1934* respondents Tulloch, Johns-ilanville Corporation, The P h ilip Carey Company, a wholly owned subsidiary o f the respondent, The P h ilip Carey Manufacturing Company, Norristown Magnesia and Asbestos Company, together with some of the other respondent corporations, entered into an unlawful agreement, -8 213 understanding, combination, and conspiracy for the purpose, in te n t, and with the e ffe c t of su b sta n tia lly r e s tr ic tin g , suppressing and elim inating actual and poten tial competition in price anc otherwise in the sale and d istrib u tio n in commerce between and among the various states o f the United States and in the D is t r ic t of Columbia, of both licen sed and non-licensed materials and also of the low-pressure asbestos covering embodying some or a l l of such m a teria ls. Thereafter, during the years 1935 and 1936, those respondent corporations which o r ig in a lly did not enter into said agreement, understand in g, combination, and conspiracy, did, from time to time, adopt, join in , and become parties to same, and a ll of the respondents named in the caption hereof did, after they entered in to , joined in or became parties to said agreement, understanding, combination, and conspiracy, by concerted action and in cooperation with one another, carry out, enforce, and maintain same and did perform some, or a l l o f the acts and practices done in furtherance of said agreement, understanding, combination, and conspiracy, ana in pursuance thereto, as herein alleged; although respondent The P h ilip Carey Manufacturing Company, for the reasons hereinbefore set fo r th , is le g a lly lia b le and responsible fo r the acts and practices of i t s wholly gwned su bsid iary, The P h ilip Carey Company, for the acts and practices o f said subsidiary which were performed as a part o f and in pursuance to , said agreement, understand in g, combination and conspiracy, the said respondent, The P hilip Carey Manufacturing Company, also acting individu a l l y , did in about June, 1941 adopt, jo in in , and become a party to same; and respondents Tulloch, Johns-ManvilleCorporation, and The P h ilip Carey Manufacturing Company are s t i l l carrying on, enforcing,,and maintaining said agreement, understanding, combination, and conspiracy, and are performing many, i f not a l l , of the methods, p o lic ie s , and practices done in furtherance thereof and in pursuance thereto, as herein a lle g e d . PARAGRAPH NINE: Pursuant to, in furtherance o f , and to e ffe c tu a te , the said agreement, understanding, combina tion and conspiracy, respondent corporations and respond ent Tulloch, cooperatively and concertedly, formulated, adopted, performed, and put into e f f e c t , among others, the following co llu siv e methods o f competition, p o lic ie s , and trade p ractices: -9 - (1) Fixing am. maintaining the prices at which, and the cond.itions under which, both licensed and non-licensed materials are offered for s a le , and so ld , by respondent corporations to the various purchasers and users thereof; (2) Requiring and adopting a uniform method of computing and fix in g the prices at which said licen sed and non-licensed materials are offered for s a le , and sold, by respondent corporations to the various purchasers and users thereof, through the use by respondent corporations of a so -ca lle d niManual o f unit Prices for Pipe Covering and Insulating B lo ck s," and by other means and methods; (3) Adopting and using uniform d e fin itio n s of various classes o f purchasers of said m aterials, so that respondent corporations a ll c la s s ify their respective customers in the same manner for pricing purposes; (4) F ix in g , e sta b lish in g , and maintaining fixed d iffe r e n tia ls in prices between d iffe re n t classes of cits toners ; (5) Adopting and maintaining, by respondent corporations, uniform contracts for the sale of said materials by respondent corporations; (6) Adopting and maintaining by respondent corporations a system of se llin g said materials at delivered prices only, which system is designed to prevent, and does prevent, the differences in the cost o f fre ig h t delivery from the respective places o f business of respondent corporations to those of purchasers o f such m aterials, from creating any advantage or d is advantage in price to said purchasers without re gard from which o f respondent corporations such purchasers may desire to purchase said m aterials. Such system of id e n tic a l delivered prices is predicated upon the use by respondent corporations of so -called basing p o in ts, whereby the delivered prices on said m aterials shipped from the widely separated places of business o f respondent corpora tions are calculated as though shipments were made from a single point or points having a common freigh t rate or common delivery cost to any given d estin ation ; -1 0 - 2L5 (7) Adopting and maintaining a plan whereby the United States is divided into certain price zones, so that the purchasers from a l l the respondent corporations w ithin a designated price zone or area, regardless o f the varying costs of delivery from the places o f business o f respondent corporations to the places o f business of such purchasers, are quoted and charged the same delivered prices on said m aterials sold by respondent corporations; (8) Simultaneously s h iftin g particular lo c a li t i e s or States from one delivered price zone in the United States to another such *onej (9) Establish in g standards fo r the size and thickness of said materials and also of low-pressure asbestos covering embodying some or a l l o f said m aterials, and fix in g d iffe r e n tia ls in price betv/een said materials or coverings of d iffe r e n t sizes or thickness; (10) Discussing and adopting, before the granting o f the Toohey patent on September 4, 1934, at meetings attended by respondent corpor a tio n s, including the wholly owned subsidiary of respondent, The Philip Carey Manufacturing Company, The P h ilip Carey Company, and respond ent Tulloch, a merchandising plan to be used, and which was used, by respondent corporations for the sale by them of both licensed and nonlicen sed m aterials and also of low-pressure pipe covering embodying some or a l l of such m aterials, under which merchandising plan said respondents s p e c ific a lly agreed, among other things, upon (a) The c la s s ific a t io n of buyers from respondent corporations of said materi a ls and covering, in order to determine the discounts and prices which customers of said corporations, so c la s s ifie d , were to receive ; (b) The zoning of the various States o f the United States for pricing purposes, in order to n u llify and neutralize d iffe r ences in fre ig h t rates on said materials and coverings; - 216 - li- p m o n n n c r n at tm f w t i ow ai * o p u i vr (c) The tenus and conditions of sale which respondent corporations should, and did follow in the sale o f said materials and of said covering; (d) The imposition o f rig id control of the prices respondent corporations charge their purchasers fo r said m aterials and said coverings under threat of the imposition of penalties against respondent corporations for any digressions therefrom; (e) The arrangement for the appoint ment by each respondent corporation of a lim ited number of d istrio u tio n a l accounts wnich were to be given, and were given, certain stated special discounts; (f) The f i l i n g of price l i s t s of said materials ana covering, by respondent corporations, with respondent Tulloch, which price l i s t s contained the delivered prices for and within the various price zones. This merchandising plan was adopted during the period the National In d u stria l Recovery Act was in e ffe c t by respondent corporations, including The P hilip Carey Com pany, the wholly owned subsidiary of respondent. The P h ilip Carey Manufacturing Company, out i t never was approved by the Administrator of the National Recovery Admini s tr a ti on. (11) Discussing and agreeing upon, in meet in g s, by correspondence and by other means and methods, a proposed form of licensing agreement between respondent Johns-Manville Corporation and respondent Tulloch regarding the use and sale of the licensed materials and products covered by the Toohey patent, a form o f sub-license agreement between respondent Tulloch and respondent corpora tions regarding tne same subjects and a schedule of p rice s, terms, and conditions of sale of licensed m aterials by respondent corporations -under such sub-license agreement; (12) Entering into and carrying out said licen sin g agreement between respondent Johns-Manville Corporation and respondent Tulloch, and also enter ing into and. carrying out such non-exclusive sub- . m - 12- nrpnnniierh license agreements between respondent Tulloch and respondent corporations, including both respondent The Philip Carey Manufacturing Company and i t s wholly owned subsidiary, The P h ilip Carey Company, under the terms of which sub-license agreements respondent corporations are required to s e ll the licensed materials according to the schedti.le of p rice s, terms, and conditions of sale which are fixed by agreement among said respondents; (13) Adopting by respondent corporations, as an in tegral part o f said sub-license agreements which s a i,, respondent corporations had with respond ent Tulloch, a merchandising plan su bstantially id e n tica l with the plan hereinbefore set out in subparagraph (10) o f this paragraph, with respondent Tulloch managing and supervising the operation and enforcement of same and also imposing penalties upon respondent corporations for fa ilu r e to s e ll either the licensed ornonlicensed materials at the delivered prices provided for in said plan; (14) Discussing and agreeing in advance, as to the changes and amendments to be made to sub licen se agreements which respondent Tulloch had with respondent corporations for the sale by said corporations of both licen sed and non-licensed m aterials, before respondent Tulloch actually announced such changes and amendments; (15) Agreeing upon the inclusion of nonlicensed materials to be covered by said merchand isin g plan and thereby fix in g the p rice s, terms, and conditions of sale o f said m aterials. PARAGRAPH TEN: As an in cident to , and a necessary resu lt o f , respondent corporations' agreement to use, and their use o f, the basing point system o f delivered p rice s, delivered prices were made id e n tica l within certain zones or areas defined by respondent corporations throixgh agree ments and understandings among said respondent corporations, notw ithstanding differences in the actual fre igh t from their respective places o f business to various destinations w ithin the same zone or area. As a further incident and necessary r e s u lt, respondent corporations have h ab itu ally 218 13- and system atically demanded, charged, accepted and re ceived within the same delivered price zones and in other such zones, larger sums per unit of product from their customers located near th eir respective places of business than from their other customers located at greater distances within the same zones and in other such zones, and have thereby forced th e ir nearby customers to pay more to respondent corporations for the licensed and non-licensed m aterials and the lowpressure pipe covering embodying such m aterials, in order that the more distant customers within the same area might pay le s s , thus depriving the nearby customers of any price advantage, which otherwise they would have by reason of th eir proximity to the places of production. PARAGRAPH ELEVEN: Each o f respondent corporations nas acted, and some s t i l l a ct, in concert and cooperation with one or more o f the other respondent corporations, by means o f, and through, respondent Tulloch, or by, and through, other means and methods, in doing and performing the methods, p o lic ie s , p ra ctice s, and agreements, herein before set fo rth . PARAGRAPH TWELVE: The methods, p o lic ie s , p ra ctices, and agreements o f respondents, as herein alleged , are a l l to the prejudice o f actual and p o ten tial competitors of respondent corporations and of the p u b lic; have a dangerous tendency to , and have a c tu a lly , hindered and prevented competition in commerce, between and among the various states of the United States and in the D is tr ic t o f Columbia in the sale of both licensed and non-licensed material and of low-pressure pipe covering embodying some or a ll o f such m aterials; have unreasonably restrained such commerce in sale, products; have a dangerous tendency to create in respondent corporations a monopoly in the sale and d is tribution of such products, and constitute un fair methods of competition in commerce within the intent and meaning of Section 5 of the Federal Trade Commission Act. WHEREFORE, THE PREMISES CONSIDERED, the Federal Trade Commission, on th is 27th day of December, A .D ., 1941 issues i t s amended complaint against a l l of the respondent named in the caption hereof, r e c itin g i t s charges in that respect as hereinabove set out. 21S - 14- CO * NOTICE Notice is hereby given you, Acme Asbestos Covering and Flooring Company, a corporation; Asbestos, Asphalt and Insulation manufacturing Company, a corporation, A tlantic Asbestos Corporation, a corporation; A. H. Bennett Company, a corporation; The P h ilip Carey Manufactur ing Company, a corporation; The ^lerk Asbestos Company, a corporation; Empire Asbestos Products, I n c ., a corpora tio n ; Gillen-Oole Company, a corporation; Johns-Manvilie Corporation, a corporation; Keasbey & lit tison Company, a corporation; L . A. Rubber & Asbestos Works Incorporated,, a corporation; G. A. liacArthur Company, a corporation; Norristown Magnesia and Asbestos Company, a corporation; W. S . Nott Company, a corporation; P a cific Asbestos & Supply Company, a corporation; Plant Rubber t- Asbestos Works, a corporation; The Ruberoid C o ., a corporation; S a il Mountain Company, a corporation; Standard Asbestos Manu facturing Company, a corporation; Donald Tulioch, J r . , an Individual,respondents herein, that the SOthday of January, A. D ., 1942, at 2 o ' clock in the afternoon, is hereby fixed as the time, and the o ffic e s o f the Federal Trade Commission in the c ity o f Washington, D. C ., as the place, when and where a hearing w ill be had on the charges set forth in this amended complaint, at which time and place you w ill have the r ig h t, under said A ct, to appear and show cause why an order should not be entered by said Commission requiring you to cease and d e sist from the vio latio n s of the law charged in the amended complaint You are n o tifie d and required, on or before the twentieth day a fte r service upon you o f this amended com p la in t, to f i l e with the Commission an answer to the amended complaint. I f answer is f ile d and i f your appearance at the place and on the date above stated be not required, due notice to that e ffe c t w ill be given you. The Rules o f Practice adopted by the Commission with respect to answers or fa ilu r e to appear or answer (Rule IX) provide as follow s: In case o f desire to contest the proceeding, the respondent s h a ll, within twenty (20) days from the service o f the complaint, f i l e with the Commission an answer to the complaint. Such answer sh a ll con tain a concise statement o f the fa cts which constitute the ground of defense. Respondent shall s p e c ific a lly admit or deny or explain each of the fa cts alleged in the complaint, unless respondent is without knowledge, in which case respondent sh a ll so s ta te , - 220 -1 5 - * * * * * Failure of the respondent to f i l e answer within the tine above provided and fa ilu r e to appear at the time and place fixed fo r hear ing sh a ll be deemed to authorize the Commission, without further notice to respondent, to pro ceed in regular course on the charges set forth in the complaint. I f respondent desires to waive hearing on the a lle g a tio n s of fa c t set forth in the com p la in t and not to contest the f a c t s , the answer may co n sist of a statement that respondent admits a l l the m aterial allegation s of fa c t charged in the complaint to be true. Respondent by suchanswer sh a ll be deemed to have waived a hearing on the a lle g a tio n s of fa c t set fo rth in said complaint and to have authorized the Commission, without further evidence, or other intervening procedure, to find such fa c ts to be true, and i f in the judgment of the Commission such fa cts admitted constitute a v io la tio n of law or laws as charged in the complaint, to make and serve f rndings as to the fa c ts and an order to cease and d esist from such v io la tio n s. Upon application in w riting made contemporaneously with the f i l i n g of such answer, the respondent, in the discretion of the Commission, may be heard on b r ie f, in oral argument, or both, so le ly on the question as to whether the fa cts so admitted con stitute the v io la tio n or violation s of law charged in the complaint. IK WITNESS '.'.TIEREOF, the Federal Trade Commission has caused t h is , i t s amended complaint, to be signed by its Secretary, and it s o f f i c i a l seal to be hereto a ffix e d , at Washington, D. C ,,, th is 27th day of December, A. D. 1S41, By the Commission. 221 - 16-