Chief counsel-Continued. Character of complaints-Continued. Resale price maintenance-Violation of section 5 of the Federal Acquisition of capital stock of competitors—Violation of section Misrepresentations-Violation of section 5 of the Federal Trade Photo-Engraving case-Conspiracy to fix and enhance prices- Violation of section 5 of the Federal Trade Commission act____ Motion-Picture case-Restraint of trade-Violation of section 5 of the Federal Trade Commission act_. Export trade-Violation of section 5 of the Federal Trade Com- Cases in the United States Circuit Court of Appeals arising under section 5 of the Federal Trade Commission act and section 7 Arkansas Wholesale Grocers' Association-Combination and conspiracy to lessen competition in groceries-Violation Cases in the United States Circuit Court of Appeals, etc.—Continued. Philip Carey Manufacturing Co.-Disparagement of com- The Utah-Idaho Sugar Co. case- -Suppression of competi- tion in the manufacture and sale of beet sugar. Grand Rapids Varnish Co.-Commercial bribery-‒‒‒ Standard Education Society case-Misrepresentation- Cases arising under sections 6 and 9 of the Federal Trade Com- The Maynard Coal Co. case-A proceeding in which an eco- nomic investigation of the commission was halted by in- Millers' National Federation case-Investigation by commis- sion in response to resolution of the United States Senate_ Royal Baking Powder case-Violation of section 5 of the Federal Trade Commission act______. Royal Baking Powder Co.-Mandamus to compel commission to pass upon affidavits of prejud ce against member of Tables summarizing work of legal division. 5. Petitions for review-Lower courts. 6. Petitions for review-Supreme Court of the United States__. 7. Petitions for enforcement-Lower courts__-- 8. Petitions for enforcement-Supreme Court of the United States__ 9. Petitions for rehearing, modification, etc.-Lower courts----- 10. Petitions for rehearing, modification, etc.-Supreme Court of the Export trade section-Continued. Operation of the export trade act-Continued.. Statement of costs for the fiscal year ended June 30, 1928- Detailed statement of costs for the fiscal year ended June 30, 10. Inquiries made by the Federal Trade Commission since its organiza- tion in 1915, at the request of the Senate, the House of Representa- tives, the President, the Attorney General, and on motion of the 11. Senate, House, and commission resolutions under which the commis- sion made investigation during the fiscal year ending June 30, 1928_ INTRODUCTION To the Senate and House of Representatives: Investigation of public utilities, particularly their publicity methods, became an outstanding feature of the work of the Federal Trade Commission in the last fiscal year. Although the regular activities, such as the prevention and correction of unfair competition in commerce as well as violations of the antitrust laws were carried on as usual, the investigation of electricpower and gas companies as called for in Senate Resolution No. 83 became the most comprehensive economic inquiry ever undertaken by the commission. The commission's estimates made provision for additional skilled employees, mostly accountants, to carry on the utilities inquiry and other congressional work, and allowance therefor is included in the Budget figures which have been approved for transmission to Congress. The procedure outlined in Senate Resolution No. 83 was unique in that it called for public hearings. Heretofore the commission had not conducted public hearings in connection with economic investigations; in fact, had not made public its reports of such surveys until all work had been completed and approved. The resolution also directed the commission to furnish a report of progress to the Senate once each month. The resolution called for information concerning the history and growth of the financial structure of all public-utility corporations doing an interstate or international business, and holding, service, and management companies, as well as data regarding methods used by the utilities in obtaining publicity and distributing propaganda. Commissioner Edgar A. McCulloch was designated as presiding officer at all public hearings. The work of the inquiry was then divided into two classes— financial and propaganda. The financial phase was placed in charge of the chief economist, Mr. Francis Walker, while the propaganda investigation was turned over to Mr. Robert E. Healy, chief counsel, who was also to examine witnesses in all public hearings. In accepting this resolution from the Senate the commission adopted a resolution undertaking an investigation in strict and full compliance with the terms of the Senate resolution, and that in the prosecution of the inquiry the commission would "rely on and employ the powers conferred on it to make investigations at the direction of either House of Congress." It would rely also on "any and all powers conferred upon it by law to conduct inquiries on its own initiative, or otherwise, and any other powers legally available to it, whether contained in its organic act or elsewhere, which may conduce to a diligent and complete performance of the ends and purposes set forth in said resolution." It was evident at the outset that the financial part of the investigation would be complicated, and that preparations of exhibits to be introduced at hearings would require much detailed work, so public hearings were begun first in connection with the propaganda phase of the inquiry, while examiners were sent out to begin bringing in the data for the financial survey. The commission held its first public hearing March 8. When the summer recess was taken a few days after the close of the fiscal year, 71 witnesses had been examined, 38 volumes of testimony comprising 4,877 type-written pages had been taken, and 3,670 exhibits had been introduced. These records covered the propaganda activities of utilities in 40 States. When the sunmer recess began the commission had not called witnesses representing the States of Arizona, California, Idaho, Montana, Nevada, Oregon, Utah, and Washington. Among the witnesses who testified at these hearings were several national officers of the National Electric Light Association, American Gas Association, and the Joint Committee of National Utility Associations. There were also officials of State public utility information committees and regional subdivisions of the National Electric Light Association. While no evidence was introduced during the fiscal year regarding the financial structure of the industry and the relation between holding, operating, and service companies, a broad foundation was and is now being laid for conducting that phase of the hearings. Comprehensive questionnaires have been sent to large holding companies, and examiners of the commission have inspected the records of these organizations and affiliated corporations. During the fiscal year the commission conducted a larger number of trade-practice conferences than ever before in its history. The trade-practice conference idea is being developed in connection with the modern policy of self-regulation of industry. The conferences are helping to eliminate on a large scale unfair practices in commercial competition. The Senate, May 3, directed the commission to investigate chainstore systems of marketing and distribution, reporting on the extent, if any, to which consolidations of chain stores had been effected in |