In re FTC Corporate Patterns Report Litigation

Decision Date12 April 1977
Docket Number76-0127.,Misc. No. 76-0126
Citation432 F. Supp. 291
PartiesIn re FTC CORPORATE PATTERNS REPORT LITIGATION. In re FTC LINE OF BUSINESS REPORT LITIGATION.
CourtU.S. District Court — District of Columbia

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Edwart T. Tait, Lee A. Rau, John M. Wood, Stuart M. Gerson and Thomas H. Reilly of Reed, Smith, Shaw & McClay, Washington, D. C., for American Air Filter Co., Inc., et al.

Ira M. Millstein, Mark A. Jacoby and Salem M. Katsh of Weil, Gotshal & Manges, New York City, for Chamber of Commerce of the U. S., et al.

John F. McClatchey and Leslie W. Jacobs of Thompson, Hine & Flory, Cleveland, Ohio, for Goodyear Tire & Rubber Co., Hobart Corp. and Van Dorn Co.

J. Randolph Wilson, John S. Koch, Steven S. Rosenthal, and Philip C. Stahl of Covington & Burling, Washington, D. C., for Chamber of Commerce of the U. S., et al.

Richard W. Pogue of Jones, Day, Reavis & Pogue, Cleveland, Ohio, and Mark Elliot Mazo and John C. Reitz of Jones, Day, Reavis & Pogue, Washington, D. C., for American Greetings Corp., et al.

Robert E. Jordan, III, Robert M. Goolrick and Michael K. Wyatt of Steptoe & Johnson, Washington, D. C., and Edward E. Vaill and Michael J. Myers, Los Angeles, Cal., for Atlantic Richfield Co.

Michael K. Wyatt of Steptoe & Johnson, Washington, D. C., for Fairmont Foods Co.

Philip A. Lacovara, Gerald Goldman and David M. Becker of Hughes, Hubbard & Reed, Washington, D. C., for Allen-Bradley Co. and Merck & Co., Inc.

Frank P. Cihlar and James R. Henderson, IV, of Mayer, Brown & Platt, Washington, D. C., for CPC Intern., Inc.; Cargill, Inc., Inland Steel Co., Northwest Industries, Inc.; Oscar Mayer & Co., Inc.; Ross Industries, Inc. and Sundstrand Corp.

John F. Graybeal and Robert C. Houser, Jr., of Foley, Lardner, Hollabaugh & Jacobs, Washington, D. C., for Square D. Co.

William Simon, Harold F. Baker, David C. Murchison, J. Wallace Adair, John DeQ. Briggs and Stuart H. Harris of Howrey & Simon, Washington, D. C., for American Cyanamid Co., et al.

Jack L. Lipson, Andrew S. Krulwich and Hadrian R. Katz of Arnold & Porter, Washington, D. C., for Hoffmann-La Roche Inc. and Lone Star Industries, Inc.

Philip J. Davis of Kirkland, Ellis & Rowe, Washington, D. C., and Donald G. Kempf, Jr., and Joseph F. Coyne of Kirkland & Ellis, Chicago, Ill., for Chemetron Corp., Dean Foods Co., The Firestone Tire & Rubber Co., FMC Corp., Harnischfeger Corp., Kirsch Co., Lehigh Portland Cement Co., Motorola, Inc., Polaroid Corp., and Rexnord, Inc.

Peter E. Fleming, Jr., Eliot Lauer and Samuel F. Abernethy of Curtis, Mallet-Prevost, Colt & Mosle, New York City, for Dover Corp.

James F. Rill and Kathleen E. McDermott, of Collier, Shannon, Rill, Edwards & Scott, Washington, D. C., for Carpenter Technology Corp., Kohler Co., Safeway Stores, Inc., and A. E. Staley Mfg. Co.

Theodore A. Groenke and Harold J. Bressler of McDermott, Will & Emery, Chicago, Ill., for Kohler Co. and A. E. Staley Mfg. Co.

James F. Bromley of Macleay, Lynch, Bernhard & Gregg, Washington, D. C., for U. S. Gypsum Co.

Harold S. Barron and Noel C. Crowley of the Bendix Corp., Southfield, Mich., for The Bendix Corp.

Arloe Mayne, Gen. Counsel, Ashland Oil, Inc., Ashland, Ky., and Ronald P. Wertheim, of Ginsburg, Feldman & Bress, Washington, D. C., for Ashland Oil, Inc.

Milton J. Schubin and Richard C. Seltzer, of Kaye, Scholer, Fierman, Hays & Handler, New York City, for GAF Corp.

Daniel K. Mayers and Neil J. King, of Wilmer, Cutler & Pickering, Washington, D. C., and James R. DeVita of Sullivan & Cromwell, New York City, for American Standard, Inc.; The Babcock & Wilcox Co., Ford Motor Co., The General Tire & Rubber Co.; and Kaiser, Aluminum & Chemical Corp. James M. Porter, of Squire, Sanders & Dempsey, Cleveland, Ohio, and William C. Collishaw of Cox, Langford & Brown, Washington, D. C., for White Consolidated Industries, Inc.

David S. Pennock of Alexander & Green, New York City, for Cerro-Marmon Corp.

Samuel K. Abrams and Wilbur L. Fugate of Morison, Murphy, Abrams & Haddock, Washington, D. C., for Cone Mills Corp. and The Sperry & Hutchinson Co.

Raymond E. Vickery, Jr., of Hogan & Hartson, Washington, D. C., for Hughes Tool Co. and Republic Steel Corp.

Ramsay D. Potts and Steven L. Meltzer of Shaw, Pittman, Potts & Trowbridge, Washington, D. C., for Emerson Elec. Co.

Leonard I. Horowitz of Times Mirror Co., New York City, for Times Mirror Co.

Barry Hirsch of Loews Corp., New York City, for Loews Corp.

Milton Wolson and Edwin Silverstone of SCM Corp., New York City, and S. White Rhyne, Jr., of Mullin, Connor & Rhyne, Washington, D. C., for SCM Corp.

Sydney B. Wertheimer of Weisman, Celler, Spett, Modlin, Wertheimer & Schlessinger, New York City, for Fedders Corp.

Paul J. Newlon and Victoria G. Traube of Paul, Weiss, Rifkind, Wharton & Garrison, New York City, for Milliken & Co.

Fred L. Woodworth of Dykema, Gossett, Spencer, Goodnow & Trigg, Detroit, Mich., for Overhead Door Corp. and Champion Home Builders Co.

Philip W. Schaefer of Texaco Inc., New York City, for Texaco Inc.

Jesse P. Luton, Jr., John E. Bailey and Kevin F. Cunningham of The Gulf Companies, Houston, Tex., for Gulf Oil Corp.

Joseph W. Burns of Burns, Van Kirk, Greene & Kafer, New York City, for Ingersoll-Rand Co.

Albert R. Connelly and Andrew D. Postal of Cravath, Swaine & Moore, New York City, for Bethlehem Steel Corp.; Cincinnati Milacron, Inc.; Kellogg Co.; Olin Corp.; Republic Steel Corp.; Rhinechem Corp.; and Time Inc.

Edwin S. Rockefeller and Alan M. Frey of Bierbower & Rockefeller, Washington, D. C., for Norton Simon Inc.

Norman Solovay of Holtzman, Wise & Shepard, New York City, and Leonard M. Kessler of Kelley Drye & Warren, New York City, for Chrysler Corp.

Charles H. McAuliffe of Thomas J. Lipton, Inc., Englewood Cliffs, N. J., for Thomas J. Lipton, Inc.

David J. Lewis and Elroy H. Wolff of Sidley & Austin, Washington, D. C., for Thomas J. Lipton, Inc. and Kimberly-Clark Corp.

Robert D. Tyler, Jr., of Beatrice Foods Co., Chicago, Ill., and John R. Reilly of Winston & Strawn, Washington, D. C., for Beatrice Foods Co.; Rorer-Amchem, Inc., Fort Washington, Pa.

Kenneth Schnaper of Crane Co., New York City, for Crane Co.

Eve E. Bachrach of Stein, Mitchell & Mezines, Washington, D. C., for C.I.T. Financial Corp. and Food Fair Stores, Inc.

Thomas C. Morrison of Patterson, Belknap, Webb & Tyler, New York City, for Johnson & Johnson.

Dennis M. Sheedy of Kirkpatrick Lockhart Johnson & Hutchison, Pittsburgh, Pa., for Cyclops Corp.

Donald J. Mulvihill and Gerald J. Brown of Cahill, Gordon & Reindel, Washington, D. C., for The Great Atlantic & Pacific Tea Co., Inc.

Andrew J. Kilcarr of Donovan, Leisure, Newton & Irvine, Washington, D. C., and Thomas R. Trowbridge, III, of Donovan, Leisure, Newton & Irvine, New York City, and Charles F. Rice of Mobil Oil Corp., New York City, for Mobil Oil Corp.

Donald G. McCabe and Anthony B. Barton of Hall, McNicol, Hamilton & Clark, New York City, for American Maize-Products Co.

Charles Kadish of Breed, Abbott & Morgan, New York City, for Honeywell, Inc. Gilbert H. Weil and Robert L. Sherman of Weil, Guttman & Davis, New York City, for Bristol-Myers Co.

Caswell O. Hobbs, III, and David W. Huston of Morgan, Lewis & Bockius, Washington, D. C., for American Stores Co.

David C. Trowbridge of Hallmark Cards, Inc., Kansas City, Mo., for Hallmark Cards, Inc.

Ronald G. Precup of Nussbaum & Owen, Washington, D. C., for American Beef Packers, Inc.

Stephen Kurzman of Nixon, Hargrave, Devans & Doyle, Washington, D. C., for Bausch & Lomb, Inc.; Dunlop Tire & Rubber Corp., Buffalo, N.Y.; NL Industries, Inc., New York, N.Y.; R. T. French Co., Rochester, N.Y.

Larry L. Williams and Robert J. Pope of Clifford, Glass, McIlwain & Finney, Washington, D. C., for The Continental Group, Inc. (formerly Continental Can Company, Incorporated).

Robert J. Lewis, Gen. Counsel; Gerald P. Norton, Deputy Gen. Counsel; Jerold D. Cummins, Acting Asst. Gen. Counsel; Warren S. Grimes, Joanne L. Levine, and Thomas A. Sheehan, III, Attys., F.T.C., Washington, D. C., for petitioner-defendant F.T.C.

Barbara Allen Babcock, Asst. Atty. Gen., Earl J. Silbert, U. S. Atty., David J. Anderson and Jack E. Thornton, Jr., Dept. of Justice, Washington, D. C., for defendant Comptroller General.

MEMORANDUM OPINION

FLANNERY, District Judge.

The court presently has before it consolidated preenforcement and enforcement actions concerning the Federal Trade Commission's orders directing numerous companies to file certain special reports. At issue are the FTC's information-gathering activities with respect to the 1974 Line of Business (LB) report and the Corporate Patterns Report (CPR) survey. The court already has considered various motions to dismiss. Order of Jan. 31, 1977. The FTC and the Comptroller General have moved for summary judgment at this time, while the corporate parties seek partial summary judgment. Oral hearings on these motions were held February 11 and 25, 1977, and the motions are ripe for consideration and decision at this time.

The corporate parties challenge the enforcement of the FTC's orders to file the LB and CPR forms on a number of grounds. The court will consider each of these claims in turn. An appropriate order accompanies this memorandum opinion.

I. Statutory Authority

The corporate parties contend that the FTC lacks the statutory authority to implement the LB and CPR programs. This claim centers on an interpretation of section 6 of the Federal Trade Commission Act, 15 U.S.C. § 46.1 While the corporate parties admit that section 6 relates to the general power of the Commission to conduct investigations, require special or annual reports, and publish the results of its investigations, they argue that section 6 is not an unfettered grant of authority to conduct any type of investigation or information-gathering project. To...

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