Guarantee Veterinary Co. v. Federal Trade Commission

285 F. 853, 1922 U.S. App. LEXIS 2017
CourtCourt of Appeals for the Second Circuit
DecidedNovember 6, 1922
DocketNo. 8
StatusPublished
Cited by20 cases

This text of 285 F. 853 (Guarantee Veterinary Co. v. Federal Trade Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Guarantee Veterinary Co. v. Federal Trade Commission, 285 F. 853, 1922 U.S. App. LEXIS 2017 (2d Cir. 1922).

Opinion

ROGERS, Circuit Judge.

This proceeding brings before us for review an order, entered by the Federal Trade Commission, directing the petitioners to desist from certain unfair methods of competition. The Guarantee Veterinary Company is an association in the form of a common-law trust, and has its principal office and place of business in the city of Chicago in the state of Illinois. George L. Owens is the controlling and managing trustee. They are engaged in the use of salt in the form of blocks for the use of live, stock under the brand name “Sal-Tonik” in the several states of the United States.

It appears that the Federal Trade Commission, proceeding under the Act of September 26, 1914, commonly known as the Federal Trade Commission Act (38 Stat. 717, c. 311 [Comp. St. §§ 8836a-8836k]), on September 2, 1919, issued a complaint against the petitioners in which it averred that they are engaged in interstate commerce in the sale of salt in the form of blocks for the use of live stock under the brand of “Sal-Tonik” in direct competition with other persons, copartnerships, and corporations also engaged in the sale of block salt for the use of live stock; that in connection with the sale of said “Sal-Tonik” blocks they had been publishing and distributing advertising matter containing false and misleading statements concerning the said “SalTonik” blocks. And the complaint alleged that among the false and misleading statements which the petitioners put forth in their advertising matter were representations and implications to the effect that the “Sal-Tonik” blocks contained certain medicinal ingredients; that they operated a number of factories in various parts of the United States,, the total product of one of which was purchased, and thereby indorsed, by the Quartermaster’s Department of the United States Army, and that the petitioners owned and operated certain large and expensive machinery necessary for the manufacture of the said “SalTonik” blocks; and that all of this was designed to and did mislead the purchasing public into the belief that the petitioners’ product possessed certain unique and beneficial characteristics, and tended to secure for the product an undue preference over the product of competitors.

The complaint was duly served upon the petitioners, who filed their answer thereto on October 11, 1919. Notice of the taking of testimony was given, and testimony was taken on September 9, 1920, and on December 15, 1920. On June 8, 1921, tire Commission filed its findings as to facts and conclusion and on the same day entered the order to cease and desist. On July 18, 1921, the petitioners filed their' exceptions, and on December 13, 1921, the Commission filed modified findings and a modified order.

The Commission has made the following findings of fact:-

"(1) That the respondent the Guarantee Veterinary Company is an association in the form of a trust, having its principal office and place of business in [855]*855the city of Chicago, state of Illinois, of which, the respondent George !>, Owens is the controlling and managing trustee, and that the respondents are now and for more than two years last past have been engaged in the sale of salt in the form of blocks, for the use of live stock, under the brand name 'Sal-Tonik..' in and among the several states of the United States and the District of Columbia, in direct competition with other persons, copartnerships, and corporations also engaged in the sale of block salt for the use of live stock.
“ (2) That during the years 1018 and 1919 the respondents printed and caused to be circulated, in and throughout the various states of the United States, circulars in which it stated that its product, Sal-Tonik, contained the following ingredients: Sulphate of iron (redried), carbonized peat, charcoal, tobacco, quassia, sulphur, gentian, pure salt, chloride of magnesia, Epsom salts, Glauber’s salts, bicarbonate of soda, oxide of iron, mineralized humoides, American worm seed, Levant worm seed, capsicum (red pepper)— when in truth and in fact respondents’ product, Sal-Tonik, did not contain all of said ingredients, and did not contain carbonized peat, charcoal, tobacco, quassia, sulphur, gentian, mineralized humoides, American worm seed, Levant worm seed, or capsicum (red pepper).
“ (3) That prior to the organization of the respondent Guarantee Veterinary Company, in the year 1918, the respondent George L. Owens caused to be organized the Guarantee Swine Veterinary Company, a corporation organized trader the laws of South Dakota, and the Guarantee Serum Company, a corporation organized under the laws of Iowa, in both of which corporations the respondent George D. Owens was the largest stockholder, and of which, he was •the controlling manager and president.
“(4) That said Guarantee Serum Company was owned and operated by said Guarantee Swine Veterinary Company; that later the word ‘Swine' was dropped from the corporate name, and the owning and operating company became the Guarantee Veterinary Company, Incorporated; that said Guarantee Veterinary Company, Incorporated, succeeded to all property, assets, and rights of both the said Guarantee Serum Company and the said Guarantee Swine Veterinary Company, and that later the assets and rights of the said Guarantee Veterinary Company, Incorporated, were assigned or surrendered to the Guarantee Veterinary Company, a common-law trust; that George L. Owens was the principal stockholder and president of the Guarantee Serum Company, the Guarantee Swine Veterinary Company, and the Guarantee Veterinary Company, Incorporated, and is the controlling and managing trustee of the Guaiantee Veterinary Company, a common-law, trust; and that all these corporations and the trust and George I#. Owens, first as president and later as trustee, caused to be manufactured and sold, and are now causing to be manufactured and sold, in interstate commerce, the article known and designated Sal-Tonik.
“(5) That during all the time of the existence of the said Guarantee Serum Company, the said Guarantee Swine Veterinary Company, the said Guarantee Veterinary Company, Incorporated, the said Guarantee Veterinary Company, a common-law trust, George L. Owens, as the principal stockholder and president of the first three named eoi'porations and as trustee for the last named, a common-law trust, was advertising and representing, or causing to be advertised and represented, to customers and dealers in said gal-Tonik. that, their product, Sal-Tonik, contained substantially the following ingredients: Sulphate of iron (redried), carbonated peat, charcoal, tobacco, quassia, sulphur, gentian, pure salt, chloride of magnesia, Epsom salts, Glauber’s salts, bicarbonate of soda, oxide of iron, mineralized humoides, American w orra seed, Levanc worm seed, capsicum (red pepper) — when in truth and in fact ref.pon(lent’s product, Sal-Tonik, did not contain all of said ingredients, and did. not contain carbonized peat, charcoal, tobacco, quassia, sulphur, gentian, mineralized humoides, American worm seed, Levant worm seed, or capsicum (rod pepper).
“((5) That during the years 3918 and 1919 respondents advertised in the Cooperative Manager and Farmer (Commission’s Exhibit Is-o.

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Cite This Page — Counsel Stack

Bluebook (online)
285 F. 853, 1922 U.S. App. LEXIS 2017, Counsel Stack Legal Research, https://law.counselstack.com/opinion/guarantee-veterinary-co-v-federal-trade-commission-ca2-1922.