9/2! 14.589/2:567/2 AMENDMENT OF FEDERAL TRADE COMMISSION HEARINGS BEFORE A SUBCOMMITTEE OF THE SEVENTY-SECOND CONGRESS FIRST SESSION ON S. 2626 A BILL TO AMEND THE ACT ENTITLED "AN ACT TO S. 2627 A BILL TO ESTABLISH A FEDERAL TRADE COURT, AND AND S. 2628 A BILL TO AMEND THE ACT ENTITLED “AN ACT TO 121619 FEBRUARY 24, 25, 26, MARCH 17, 18, 31 Printed for the use of the Committee on the Judiciary UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1932 COMMITTEE ON THE JUDICIARY GEORGE W. NORRIS, Nebraska, Chairman WILLIAM E. BORAH, Idaho. ARTHUR R. ROBINSON, Indiana. JOHN J. BLAINE, Wisconsin. CHARLES W. WATERMAN, Colorado. DANIEL O. HASTINGS, Delaware. FELIX HEBERT, Rhode Island. THOMAS D. SCHALL, Minnesota. WARREN R. AUSTIN, Vermont. HENRY F. ASHURST, Arizona. JOHN P. ROBERTSON, Olerk SUBCOMMITTEE ON S. 2626, S. 2627, AND S. 2628 SAM G. BRATTON, New Mexico. WARREN R. AUSTIN, Vermont. II AMENDMENT OF FEDERAL TRADE COMMISSION ACT AND ESTABLISHMENT OF A FEDERAL TRADE COURT WEDNESDAY, FEBRUARY 24, 1932 UNITED STATES SENATE, SUBCOMMITTEE OF THE COMMITTEE OF THE JUDICIARY, Washington, D. C. The subcommittee met, pursuant to call, at 10 o'clock a. m., in the room of the Committee on the Judiciary, Capitol, Senator Daniel O. Hastings presiding. Present: Senators Hastings (chairman), Austin, and Bratton. Also present: Senators Nye and Capper. (The subcommittee had under consideration S. 2626, 2627, and 2628, which are printed in full below, as follows:) [S. 2626, Seventy-second Congress, first session] A BILL To amend the act entitled "An act to create a Federal Trade Commission, to define its powers and duties, and for other purposes," approved September 26, 1914 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the act entitled "An act to create a Federal Trade Commission, to define its powers and duties, and for other purposes," approved September 26, 1914, is amended by adding after section 5 the following, to be known as section 51⁄2 of said act: "SEC. 52. On its own motion or whenever requested so to do by parties in interest in any trade or industry engaged in commerce, the commission is empowered and directed to invite the members of such trade or industry or any complete group or geographical division thereof to assemble at a time and place designated by the commission for the consideration, adoption, and submission to the commission of agreements initiated and voluntarily entered into by the members of such trade or industry. The assembling of the members of a trade or industry by the commission for the purposes of this section hereinafter enumerated shall be known as the trade-practice conference of such trade or industry. "Agreements authorized under this section shall be limited to such as provide for rules of business conduct covering any or all of the following subjects: (a) Abandonment of any unfair method of competition which at the time is alleged to be used; (b) prevention of any such method which in the future is likely to be used; (c) abandonment of any business practice which in the judgment of the industry would cause or have a tendency to cause the use of any unfair method of competition; (d) establishment of any business practice which will tend to keep the channels of commerce free from the use of unfair methods of competition, unreasonable restraints of trade, or monopoly in the particular trade or industry or which would have a tendency to remove incentive from members to enter into unreasonable mergers therein; and (e) establishment or discontinuance of any business conduct or practice which would, in the judgment of the commission, tend to promote the public interest and the use of fair methods of competition. The duration of such agreements shall be determined by a majority vote of those in attendance at the trade practice conference: Provided, That no such agreements shall run less than one year. "Following the holding of a trade practice conference the commission shall consider the agreements there submitted to it and within a reasonable time there |