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Scott Paper Co. v. Federal Trade Commission

UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT


April 23, 1964

SCOTT PAPER COMPANY
v.
FEDERAL TRADE COMMISSION

Before KALODNER, GANEY and SMITH.

Final Order

Upon consideration of the joint motion filed by the petitioner and the respondent on April 23, 1964, and with the consent of both parties,

It is ordered, adjudged and decreed that the order of the Federal Trade Commission issued on December 16, 1960 be, and it hereby is, modified to read in its entirety as follows:

1. It is ordered that from the date of the Court's order Scott Paper Company (hereinafter referred to as Scott) shall cease and desist from acquiring, directly or indirectly, through subsidiaries or otherwise, the whole or any part of the stock, share capital or assets (other than products sold in the regular course of business) of any concern engaged in the manufacture or converting and sale in the United States of toilet tissue paper, facial tissue paper, paper napkins, paper towels or household waxed paper (hereinafter referred to as sanitary paper products), without the prior approval of the Federal Trade Commission. For the purposes of this paragraph a subsidiary is a company owned fifty percent or more by Scott. This paragraph shall not apply (a) to the acquisition of stock, share capital or assets of any company which is already a subsidiary of Scott on the date of the Court's order; (b) to the acquisition of assets of any concern which are not being utilized or capable of being rebuilt for use in the conversion or manufacture of said sanitary paper products; or (c) to the acquisition of facilities covered by paragraphs 2 and 3 below.

2. It is further ordered that if within a period of ten (10) years from the date of the Court's order Scott shall acquire the whole or any part of any concern (other than products sold in the regular course of business) in the United States, Scott shall not thereafter for a period of ten (10) years rebuild or convert any of the papermaking equipment so acquired for the manufacture of paper to be used or the converting of paper to be used for the production of said sanitary paper products in the United States without the prior approval of the Federal Trade Commission.

3. It is further ordered that if within a period of ten (10) years from the date of the Court's order Scott shall acquire a pulp mill from a concern operating such mill in the United States, Scott shall not during such period of ten (10) years use any of the output of such pulp mill in its manufacture of said sanitary paper products in the United States without the prior approval of the Federal Trade Commission.

4. Commencing not later than five (5) years from the date of the Court's order and thereafter until the expiration of seven (7) years from the date of the Court's order, Scott shall use its best efforts to sell the two rebuilt sanitary paper product machines (Nos. 7 and 10) acquired from Detroit Sulphite Pulp & Paper Company to a purchaser approved by the Federal Trade Commission who will utilize such machines for the manufacture and sale of sanitary paper products in the United States. At the end of a period of seven (7) years from the date of the Court's order Scott shall discontinue utilizing any paper machines acquired from Detroit Sulphite Pulp & Paper Company for the manufacture of sanitary paper products in the United States, provided, however, that Scott may continue to manufacture wax base stock with facilities so acquired and may continue to use the output of the pulp mill located at Detroit for any purpose.

It is further ordered, adjudged and decreed that the order of the Commission, as so modified, be, and it hereby is, enforced, and that petitioner be, and it hereby is, ordered to obey and comply with the terms of the order of the Federal Trade Commission, as so modified; and

It is further ordered, adjudged and decreed that the Order Pendente Lite issued by this Court on March 20, 1961 be, and it hereby is, vacated and dissolved.

19640423

© 1998 VersusLaw Inc.



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