The Washington times., 1938-02-28
Eight Golf Boil Makers
DrdW Federal Trade Bon
Pro Association
Also Cited For
Violations
BY BOB ADDIE


today cracked down on eight golf
ball manufacturers, their trade
group, the Golf Ball Manufactur-
ers Association, and the ProfeS-
sional Golfers Association of Amer
lea for various unlawful pricing
practices held to be in violation
of the Federal Trade Commission
and Robinson-Patman acts.
The eight respondent manufac-
turererS named are: A. G. Spald-
ing and Brothers, New York; John
Wanaker. Inc, Philadelphia; L.
A. Young Golf Company. Detroit;
Worthington Ball Company,
Elyria, Ohio; Wilson Sporting
Goods Company, Chicago; U. S.
Rubber Products Company, New
York; Dunlop Tire and Rubber
Company, New York, and AcuSh-
net Process Company, New Bed
ford.
Individual professionals, as rep
resentativeS of the 1900 members
of the P. G. A., engaged in the
retail sale of golf balls, are also
named respondents.
In it's cease and deSist order,
the Federal Trade Commission
charged the companies are found
to own and control practically all
factories manufacturing golf balls
and produce most of the golf balls
sold in the United States"
BAN PRICE FAVORNG
Price discrimination in favor of
the P. G. A. by the manufacturers
is specifically prohibited by the
order. The golfers group is di-
rected to discontinue the practice
of receiving royalties from manu-
facturers for the use of the in
sigma "PGA" Jn the golf balls.
This practice, the trade commits
sion contends, creates prefer
ence on the part of consumers for
balls having the official P. G. A.
"seal."
Discrimination between differ
ent purchasers of golf balls of like
grade is held to be violation Of
Section 2 (a) Of the Robinson
Patman Act. The agreement be-
tween the manufacturers and P.
G. A. to fix and maintain uniform
wholesale prices or resale prices
is held a violation of Section S Of
the Federal Trade Commission
Act.
Stripped Of its legal verbage,
the order means the endorsing"
custom is no more-not when it
helps to sell one particular golf
ball over another. From the Off
cial report of the cease and desist
order, some harsh words such as
coercion" i" intimidation" and "in-
ducing" were directed against theI
p. G. A. The Federal Trade Com
mission didn't say the Pros group
did these things. It merely said
the P. G. A. must stop 1t.
CAN'T PROMOTE PRODUCTS
In other words, the pros won't
be able to push their favorite golf
ball any longer. If the manufac-
turers want to give them golf balls
for nothing, that will be legal. But
the boys can't promote or try to
'induce" customers to use the
''house" products. The manu-.
3acturerS are allowed to give royal
ties if they give them to all other
customers competing with P. G.
A. members in the distribution Of
golf balls. But it is unlikely the
tycoonS will take advantage Of the
offer.
The respondents, according to-
the Federal Trade Commission,
admitted all material allegationSI
of the complaint with certain ex-
ceptions. It Is on the answers
filed to the charges that the order
to cease and deSist is based.
Officers named respondents are
Lawrence B. Icely, president; Ed
ward c. Conlin, vice president,
and william T. Brown, secretary
treasurer. of the Golf Ball Manu-
facturers' Association; and George
r. Jacobus. president; Jack B.
Mackie, treasurer, and Tom Walsh,
secretary. Of the P. G. A.