for 1920, $51,000,000,000 for 1921, $70,000,000,000 for 1923, $78,500,000,000 for 1925, and $79,000,000,000 for 1926.

It appears that there would be great public interest in more frequent and comprehensive estimates of national wealth and income.

STOCK DIVIDENDS

On December 24, 1926, the chief economist was directed to institute an inquiry into the payment of stock dividends by corporations under a Senate resolution dated December 22, 1926, directing the commission to "ascertain and report to the Senate, the names and the capitalization of corporations that have issued stock dividends, together with the amount of such stock dividends, since the decision of the Supreme Court holding that stock dividends were not taxable, and to ascertain and report the same information as to the same corporations for the same period of time prior to such decision."

The decision of the Supreme Court, referred to in this resolution, was rendered on March 8, 1920. To answer this resolution properly, therefore, it is necessary to cover a period of 14 years (7 years prior to and 7 years subsequent to the aforesaid decision).

As no complete list of names and addresses of corporations paying stock dividends since January 1, 1913, has ever been published, it was necessary to compile such a list from the leading financial publications for each of these 14 years to obtain the names and addresses of corporations reporting the payment of stock dividends. This list was supplemented by the Treasury Department, which fur nished the commission with the names of all corporations reporting the payment of stock dividends during the years 1922-1925, inclusive, no records of such dividends prior to 1922 being available. From these sources there were compiled the names and addresses of approximately 18,000 corporations reported to have paid stock dividends between January 1, 1913, and December 31, 1926. Up to the close of the fiscal year schedules requesting capitalization and dividends had been sent to practically all these corporations and replies in one form or another had been received from about 13,000. Many corporations on the list replied that they had paid no stock dividends and a considerable proportion of the returns were incomplete, necessitating a large amount of correspondence and follow-up work. It is estimated that about 10,000 reports will be found ultimately usable.

COOPERATION WITH LEGAL STAFF

The economic division cooperated during the year with other divisions of the commission in furnishing extensive professional and clerical assistance. At the close of the fiscal year 12 members of

the economic division were assigned to the inquiry into cooperative associations being prosecuted by the legal examining division and 4 to the trial division in connection with proceedings in the Bethlehem-Lackawanna steel merger case. In addition at various times during the year one or more members of the economic division were assigned to the attorneys in charge of the Aluminum Co. of America case.

COOPERATION WITH OTHER BRANCHES OF THE GOVERNMENT

Near the close of the fiscal year at the request of the Secretary of State the chief economist of the commission was directed to cooperate with officials of the State Department and other Government establishments in the preparation of information and recommendations for the use of the delegates of the Geneva Economic Conference.

The chief economist was also directed by the commission to appear before the subcommittee of the Senate Committee on the Judiciary to testify with regard to the combinations in restraint of trade in bread and related products.

In connection with various suits with regard to milk refunds under war-time Government contracts, technical assistance was rendered the Department of Justice by the chief accountant of the commission.

WORK ON HAND

At the close of the fiscal year 1927 the economic division had on hand and not completed seven inquiries, i. e., bread and flour, electric power, open-price associations, lumber-trade associations, petroleum prices, Panhandle petroleum, and stock dividends. Of these inquiries, however, bread and flour, petroleum prices, Panhandle petroleum, and lumber-trade associations were practicaly completed, while the remainder, except open-price associations, were all well advanced toward completion.

In addition, however, by the action of the commission the economic division had on hand within a month after the close of the fiscal year four additional inquiries.

On July 25 the commission directed the chief economist to investigate the practice of resale price maintenance from the standpoint of its economic advantages or disadvantages to manufacturers, to distributors, and to consumers; costs, margins, and profits on price maintained and nonprice maintained goods and purposes and results of price cutting.

Two days later, on July 27, the commission directed the chief economist to inquire into the delivered price, the factory base and basing point methods of quoting and charging prices, together with

the causes and purposes of their adoption and their effects on prices and competitive conditions.

On the same day it was ordered that a previous inquiry conducted into blue-sky securities, and concerning which no report had ever been published should be brought down to date. This inquiry involved the practice of selling blue-sky securities and the various legislative, administrative, and other methods, both State and Federal employed to abate this evil.

The reported acquisitions by the Dupont Co. of United States Steel Corporation stock, together with the previous reported holdings of the first mentioned company in General Motors, caused the commission on July 29 to direct an inquiry into the relationship of these corporations with a view of ascertaining the real facts and their probable economic consequences.

CHIEF COUNSEL

OUTLINE OF PROCEDURE

The chief counsel is the legal advisor to the commission and is charged with the prosecution of cases before the commission and in the courts. He also supervises the preparation of all complaints and other process directed by the commission.

It is only after the most careful scrutiny of the record that the commission issues a complaint. The commission must have, in the language of the statute, a reason to believe that the law has been violated and that the public interest is involved before complaint issues. The complaint is the specified statutory means provided to bring before the commission a party charged with violation of laws within its jurisdiction. Unlike the preliminary inquiries and applications for complaint, which are held strictly confidential, the complaint and answer is a public record, and with the issuance of a complaint there is set up the formal docket, which is open for public inspection after the complaint has been served upon the respondent. A complaint is issued in the name of the commission in the public interest. It names a respondent and charges a violation of law, with a statement of the charges. The party first complaining to the commission is not a party to the complaint when issued by the commission; nor does the complaint seek to adjust matters between parties. It is to prevent unfair methods of competition for the protection of the public.

The commission's rules of practice and procedure provide―

(1) In case of desire to contest the proceeding the respondent shall, within 30 days from the service of the complaint, unless such time be extended by order of the commission, file with the commission an answer to the complaint. Such answer shall contain a short and simple statement of the facts which constitute the ground of defense. Respondent shall specifically admit or deny or explain each of the facts alleged in the complaint, unless respondent is without knowledge, in which case respondent shall so state, such statement operating as a denial. Any allegation of the complaint not specifically denied in the answer, unless respondent shall state in the answer that respondent is without knowledge, shall be deemed to be admitted to be true and may be so found by the commission.

(2) In case respondent desires to waive hearing on the charges set forth in the complaint and not to contest the proceeding, the answer may consist of a statement that respondent refrains from contesting the proceeding or that respondent consents that the commission may make, enter, and serve upon