Detailed statement of costs of the Federal Trade Commission for the fiscal year ended June 30, 1925

1, 327. 56

26.42 329.93

1,015, 250. 09

Adjustments.-The following adjustments are made to account for the difference between the costs and expenditures:

Total cost for the year ended June 30, 1925–

Less transportation issued‒‒‒‒‒

New total____.

Plus transportation paid.

New total___

Increase of compensation (bonus)__.

Expenditures for the year ended June 30, 1925

$1, 015, 250. 09

43, 576, 57

971, 673. 52

45, 671. 63

1,017, 345. 15

22.94

1,017, 368. 09

Appropriations available to the commission since its organization and the expenditures for the same period, together with the unexpended balances, are shown in the following table:

The following publications were issued during the fiscal June 30, 1925:

Cotton Merchandising Practices, June 7, 1924, 38 pages (printed as Senate Document 194).

Cotton Trade, Part 2, October 15, 1924; 230 pages (printed as Senate Document 100).

House Furnishings Industries, Volume 3 (Kitchen Equipment and Domestic Appliances), October 6, 1924; 347 pages.

Annual Report for the Fiscal Year ended June 30, 1924, December 1, 1924;

236 pages.

Cooperation in Foreign Countries, December 2, 1924; 202 pages.

Packer Consent Decree, December 8, 1924; 44 pages (printed as Senate Document 219).

Empire Cotton Growing Corporation, January 27, 1925; 30 pages (printed as Senate Document 226).

Decisions, Findings, and Orders of the Federal Trade Commission, Volume VI (February 14 to November 4, 1923); June 30, 1925; 628 pages.

Grain Trade, Volume VI (Prices of Grain and Grain Future), September 10, 1924; 374 pages.

Copies of these publications may be purchased from the Superintendent of Documents, Washington, D. C., for nominal sums. During the fiscal year ended June 30, 1924, 4,021 copies of reports of the

commission were sold by the Superintendent of Documents for $1,189.95. The figures for the fiscal year 1925 are not yet available.

DOCKET

This section is somewhat comparable to the office of a clerk of court. In this section are kept the documents and records pertaining to the legal work of the commission. These records are reported under the caption "Legal work," on page 19.

LIBRARY

The library has a collection of over 20,000 books, pamphlets, and bound periodicals, devoted largely to the subjects of law, economics, and industries. In addition are extensive files of clippings, leaflets, etc. The distinctive features of the economic collection are the files relating to corporation and trade association data and files of trade periodicals for the more important industries. There is a function peculiar to the commission's library in the character of work it performs, and that is in the material it gathers in the form of pamphlets, corporation reports, association records, current financial and statistical services, catalogues and trade lists, which are not ordinarily found in libraries of even a technical character. The greater amount is furnished gratuitously. This material furnishes a valuable adjunct to the investigatory work and is adapted to furnish leads to examinations rather than to complete and substantive information on the subject matter.

The bulk of the law collection consists of the various national and regional reporter systems and the more important encyclopedias and reference books that are commonly found in law libraries. The distinctive feature, however, is a file of records and brief of antitrust cases, which were acquired without expenditure.

Care is exercised to limit the purchase of books and periodicals to supply only those needed constantly and immediately in the commission's work. The commission is far removed from other Government law libraries and must have available sufficient volumes to answer the ordinary requirements of the legal and economic force. The Library of Congress and the department libraries are freely drawn upon to supplement the commission's limited collection.

QUARTERS

The commission is housed in one of the temporary war structures at Twentieth and D Streets NW. To facilitate trial and investigaltory work and in the interest of economy, small branch offices are maintained at New York City, Chicago, San Francisco, and Seattle. All communications should be addressed to the commission at Wash ington, D. C.

LEGAL DIVISION

Under this caption is reported the work relating to the prevention of unfair methods of competition prohibited by section 5 of the Federal Trade Commission act and cases of price discrimination, tying contracts, corporate-stock acquisitions, and interlocking directorates arising under sections 2, 3, 7, and 8, respectively, of the Clayton Act.

To make clear the duties of the commission in this regard, pertinent portions of the acts are quoted. It will be noted that the function of the commission is remedial, not punitive, and that no power is given to impose any penalty. The commission prevents the unfair act to protect the public, not to punish the doer of the act.

FEDERAL TRADE COMMISSION ACT

Section 5, in part, reads:

That unfair methods of competition in commerce are hereby declared unlawful.

The commission is hereby empowered and directed to prevent persons, partnerships, or corporations, except banks, and common carriers subject to the acts to regulate commerce, from using unfair methods of competition in

commerce.

Whenever the commission shall have reason to believe that any such person. partnership, or corporation has been or is using any unfair method of competition in commerce, and if it shall appear to the commission that a proceeding by it in respect thereof would be to the interest of the public, it shall issue and serve upon such person, partnership, or corporation a complaint stating its charges in that respect, and containing a notice of a hearing upon a day and at a place therein fixed at least 30 days after the service of said complaint. The person, partnership, or corporation so complained of shall have the right to appear at the place and time so fixed and show cause why an order should not be entered by the commission requiring such person, partnership, or corporation to cease and desist from the violation of the law so charged in said complaint. * ** If upon such hearing the commission shall be of the opinion that the method of competition in question is prohibited by this act, it shall make a report in writing, in which it shall state its findings as to the facts, and shall issue and cause to be served on such person, partnership, or corporation an order requiring such person, partnership, or corporation to cease and desist from using such method of competition,

If such person, partnership, or corporation fails or neglects to obey such order of the commission while the same is in effect, the commission may apply to the circuit court of appeals of the United States for the enforcement of its order * *. The court shall have power to make and enter a decree affirming, modifying, or setting aside the order of the commission. The findings of the commission as to the facts, if supported by testimony, shall be conclusive.

The judgment and decree of the court shall be final, except that the same shall be subject to review by the Supreme Court upon certiorari as provided in section 240 of the Judicial Code.

Any party required by such order of the commission to cease and desist from using such method of competition may obtain a review of such order in said circuit court of appeals by filing in the court a written petition praying that the order of the commission be set aside.

The jurisdiction of the circuit court of appeals of the United States to enforce, set aside, or modify orders of the commission shall be exclusive.

Such proceedings in the circuit court of appeals shall be given precedence over other cases pending therein, and shall be in every way expedited. No order of the commission or judgment of the court to enforce the same shall in any wise relieve or absolve any person, partnership, or corporation from any liability under the antitrust acts.

CLAYTON ACT

Section 2-Price discriminations:

That it shall be unlawful for any person engaged in commerce, in the course of such commerce, either directly or indirectly to discriminate in price between different purchasers of commodities, which commodities are sold for use, consumption, or resale within the United States or any Territory thereof or the District of Columbia or any insular possession or other place under the jurisdiction of the United States, where the effect of such discrimination may be to substantially lessen competition or tend to create a monopoly in any line of commerce: Provided, That nothing herein contained shall prevent discrimination in price between purchasers of commodities on account of differences in the grade, quality, or quantity of the commodity sold, or that makes only due allowance for difference in the cost of selling or transportation, or discrimination in price in the same or different communities made in good faith to meet competition: And provided further, That nothing herein contained shall prevent persons engaged in selling goods, wares, or merchandise in commerce from selecting their own customers in bona fide transactions and not in restraint of trade.

Section 3-Tying contracts:

That it shall be unlawful for any person engaged in commerce, in the course of such commerce, to lease or make a sale or contract for sale of goods, wares, merchandise, machinery, supplies, or other commodities, whether patented or unpatented, for use, consumption, or resale within the United States or any Territory thereof or the District of Columbia or any insular possession or other place under the jurisdiction of the United States, or fix a price charged therefor, or discount from, or rebate upon, such price, on the condition, agreement, or understanding that the lessee or purchaser thereof shall not use or deal in the goods, wares, merchandise, machinery, supplies, or other commodities of a competitor or competitors of the lessor or seller, where the effect of such lease, sale, or contract for sale or such condition, agreement, or understanding may be to substantially lessen competition or tend to create a monopoly in any line of commerce.

Section 7.-Corporate stock acquisitions:

That no corporation engaged in commerce shall acquire, directly or indirectly, the whole or any part of the stock or other share capital of another corporation engaged also in commerce, where the effect of such acquisition