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Term, years.


Chairman to be chosen by com: mission.



each to be designated by the President, but their successors shall be appointed for terms of seven years, except that any person chosen to fill a vacancy shall be appointed only for the unexpired term of the commissioner whom he shall succeed. The commission shall choose a chairman

from its own membership. No commissioner shall engage business prohib. in any other business, vocation, or employment. Any Removal by commissioner may be removed by the President for in

efficiency, neglect of duty, or malfeasance in office. A Vacancy not to vacancy in the commission shall not impair the right of of powers by re- the remaining commissioners to exercise all the powers of

the commission. Seal judicially The commission shall have an official seal, which shall

be judicially noticed.


maining commissioners.



Commissioner's salary, $10,000.

ary, $5,000.

SEC. 2. That each commissioner shall receive a salary of $10,000 a year, payable in the same manner as the salaries

of the judges of the courts of the United States. The Appointment of commission shall appoint a secretary, who shall receive

a salary of $5,000 a year, payable in like manner, and it Otherem.shall have authority to employ and fix the compensation fixed by Commis- of such attorneys, special experts, examiners, clerks, and

other employees as it may from time to time find necessary for the proper performance of its duties and as may be from time to time appropriated for by Congress.

1914, and except when the Secretary of Agriculture, in the exercise of his duties hereunder, shall request of the said Federal Trade Commission that it make investigations and report in any case.”

The annotations are from decisions handed down before July 1, 1921, on petitions to review orders of the Commission, with the exception of Nulomoline and T. C. Hurst cases, in which it was sought to restrain the Commission from proceeding under sec. 5, of the Basic Products case, a mandamus proceeding instituted at the instance of the Commission to compel the submission of information called for by it under sec. 6; and the Maynard Coal Co. case, in which the companies sought to enjoin the Commission from enforcing compliance with requests made under said section, and also with the exception of annotations at the end of the Act bearing in a general way on the question of resale price maintenance.

With respect to the decisions on petitions to review, it should be noted that the cases of Beech-Nut Packing Co. v. Federal Trade Commission, 264 Fed. 885; Curtis Publishing Co. V. Federal Trade Commission, 270 Fed. 881, and Winsted Hosiery Co. v. Federal Trade Commission, 272 Fed. 957, are pending on appeal in the Supreme Court, petitions for certiorari having been granted in said cases.

With respect to the Basic Products and Maynard Coal Co. cases, involving the requiring of reports by the Commission under sec. 6, under



part of classified serv

With the exception of the secretary, a clerk to each reExcept for seccommissioner, the attorneys, and such special experts and sioners' clerks, examiners as the commission may from time to time find experts and necessary for the conduct of its work, all employees of the mission may find commission shall be a part of the classified civil service, employees and shall enter the service under such rules and regula-ice. tions as may be prescribed by the commission and by the Civil Service Commission.

All of the expenses of the commission, including missional necessary expenses for transportation incurred by the commissioners or by their employees under their orders, proved vouchers. in making any investigation, or upon official business in any other places than in the city of Washington, shall be allowed and paid on the presentation of itemized vouchers therefor approved by the commission.

Until otherwise provided by law, the commission may, rent suitable offices for its use. The Auditor for the State and Other Departments shall counts.

Auditing of acreceive and examine all accounts of expenditures of the commission.

lowed and paid on presentation of itemized ap

Commission may rent suitable offices,

the circumstances there concerned, it should be noted with respect to the general question involved, that after decision in the case last referred to (on motion for temporary injunction restraining the Commission from requiring reports under sec. 6), a temporary injunction restraining the Commission from requiring such reports was secured from the Supreme Court of the District of Columbia in the case of Claire Furnace Co. et al. v. Federal Trade Commission (June 19, 1920. No opinion) ; that such injunction also had the effect of staying certain mandamus proceedings against two of the petitioners in the Claire Furnace case, theretofore instituted by the Attorney General under sec. 9, at the request of the Commission, to compel the companies in the two cases to file reports previously demanded under sec. 6 (United States v. Bethlehem Steel Co., petition filed June 4, 1920, Eastern District of Pennsylvania, and United States v. Republic Iron and Steel Co., petition filed June 7, 1920, District of New Jersey) ; that the answer of the Commission in the Claire Furnace case prayed in the alternative form that (1) the bill be dismissed ; that (2) the bill be dismissed as to the two petitioners above referred to (the defendants in the two mandamus proceedings) ; that (3) the temporary restraining order and preliminary injunction be modified so as to clearly exclude the prosecution of such mandamus proceedings by the Attorney General against the two defendants; and that as of June 30, 1921, neither the Maynard Coal case, Claire Furnace case, nor mandamus proceedings have been heard.

In connection with the history in Congress of the Federal Trade Commission Act, see address of President Wilson delivered at a joint session on Jan. 20, 1914 (Congressionel Record, vol. 51, pt. 2, pp. 1962–1964, 63d Cong., 2d sess.) ; report of Senator Cummins from the Committee on Interstate Commerce on Control of Corporations, Persons, and F'irms er gaged in Interstate Commerce (Feb. 26, 1913, 62d Cong., 3d sess., Pept. No. 1326) ; Hearings on Interstate Trade Commission before Committee on Interstate and Foreign Commerce of the House, Jan. 30 to Feb. 16, 1914, 630 Cong., 2d sess. ; Interstate Trade, Hearings on Bills relating to Trust Legislation before Senate Committee on Interstate Commerce, 2 vols., 63d Cong., 2d sess. ; report of Mr. Covington from the House Committee on Interstate and Foreign Commerce on Interstate Trade Commission (Apr. 14, 1914, 63d Cong., 2d sess., Rept. No. 533); also parts 2

Bureau of Cor.



Sec. 3. That upon the organization of the commission porations absorbed by Com- and election of its chairman, the Bureau of Corporations mission.

and the offices of Commissioner and Deputy Commissioner of Corporations shall cease to exist; and all pending investigations and proceedings of the Bureau of Cor

porations shall be continued by the commission. Clerks, em

All clerks and employees of the said bureau shall be ployees, records, papers, property, transferred to and become clerks and employees of the transferred to commission at their present grades and salaries. All

records, papers, and property of the said bureau shall become records, papers, and property of the commission, and all unexpended funds and appropriations for the use and maintenance of the said bureau, including any allotment already made to it by the Secretary of Commerce from the contingent appropriation for the Department of Commerce for the fiscal year nineteen hundred and fifteen, or from the departmental printing fund for the fiscal year nineteen hundred and fifteen, shall become funds and appropriations available to be expended by the commission in the exercise of the powers, authority, and duties conferred on it by this Act.

and 3 of said report presenting the minority views respectively of Messrs. Stevens and Lafferty ; report of Senator Newlands from the Committee on Interstate Commerce on Federal Trade Commission (June 13, 1914, 630 ('ong., 2d sess., Rept. No. 597) and debates and speeches, among others, of Congressmen Covington for (references to Congressional Record, 630 Cong., 2d sess., vol. 51), part 9, pp. 8840–8849 ; 9068 ; 14925–14933 (part 15) ; Dickinson for, part 9, pp. 9189–9190; Mann against, part 15, pp. 14939-14940; Morgan, part 9, 8854-8857, 9063–9064, 14941–14943 (part 15); Sims for, 14940_14941; Stevens of N. H. for, 9063 (part 9); 14941 (part 15); Stevens of Minn. for, 8849–8853 (part 9); 14933– 14939 (part 15); and of Senators Borah against, 11186–11189 (part 11); 11232–11237, 11298–11302, 11600–11601 (part 12); Brandegee against, 12217-12218, 12220_12222, 12261-12262, 12410–12411, 12792–12804 (part 13), 13103–13105, 13299–13301; Clapp against, 11872–11873 (part 12), 13061-13065 (part 13), 13143–13146, 13301–13302 ; Cummins for, 1110211106 (part 11), 11379–11389, 11447–11458 (part 12), 11528–11539, 12873-12875 (part 13), 12912–12924, 12987-12992, 13045–13052, 14768– 14770 (part 15); Hollis for, 11177–11180 (part 11), 12141-12149 (part 12), 12151-12152; Kenyon for, 13155–13160 (part 13); Lewis for, 11302-11307 (part 11), 12924–12933 (part 13); Lippit against, 1111111112 (part 11), 13210–13219 (part 13); Newlands for, 9930 (part 10), 10376-10378 (part 11), 11081–11101, 11106–11116, 11594–11597 (part 12); Pomerene for, 12870–12873 (part 13), 12993–12996, 13102–13103 ; Reed against, 11112–11116 (part 11), 11874–11876 (part 12), 12022– 12029, 12150–12151, 12539–12551 (part 13), 12933–12939, 13224–13234, 14787–14791 (part 15); Robinson for, 11107 (part 11), 11228_11232; Saulsbury for, 11185, 11591-11594 (part 12); Shields against, 13056– 13061 (part 13), 13146–13148; Sutherland against, 11601–11604 (part 12), 12805–12817 (part 13), 12855–12862, 12980–12986, 13055–13056, 13109-13111; Thomas against, 11181--11185 (part 11), 11598–11600 (part


The principal office of the commission shall be in the Principal office , city of Washington, but it may meet and exercise all its but Commission powers at any other place. The commission may, by one where. or more of its members, or by such examiners as it may any inquiry any designate, prosecute any inquiry necessary to its duties where in United in any part of the United States.



“ Commerce."

SEC. 4. That the words defined in this section shall have the following meaning when found in this Act, to wit: “ Commerce

means commerce among the several States or with foreign nations, or in any Territory of the United States or in the District of Columbia, or between any such Territory and another, or between any such Territory and any State or foreign nation, or between the District of Columbia and any State or Territory or foreign nation.

“Corporation ” means any company or association in “Corporation.” corporated or unincorporated, which is organized to carry on business for profit and has shares of capital or capital stock, and any company or association, incorporated or unincorporated, without shares of capital or capital stock, except partnerships, which is organized to carry on business for its own profit or that of its members.

“Documentary evidence” means all documents, papers, and correspondence in existence at and after the passage of this Act.

“Documentary evidence."

12), 12862–12869 (part 13), 12978–12980; Townsend against, 11870– 11872 (part 12); and Walsh for, 13052–13054 (part 13).

See also Letters from the Interstate Commerce Commission to the chairman of the Committee on Interstate Commerce, submitting certain suggestions to the bill creating an Interstate Trade Commission, the first being a letter from Hon. C. A. Prouty dated Apr. 9, 1914 (printed for the use of the Committee on Interstate Commerce, 63d Cong., 2d sess.) ; letter from the Commissioner of Corporations to the chairman of the Committee on Interstate Commerce, transmitting certain suggestions relative to the bill (H. R. 15613) to create a Federal Trade Commission, first letter dated July 8, 1914 (printed for the use of the Committee on Interstate Commerce, 63d Cong., 2d sess.) ; brief by the Bureau of Corporations, relative to sec. 5 of the bill (H. R. 15613) to create a Federal Trade Commission, dated Aug. 20, 1914 (printed for the use of the Committee on Interstate Commerce, 630 Cong., 2d sess.); brief by George Rublee relative to the court review in the bill (H. R. 15613) to create a Federal Trade Commission, dated Aug. 25, 1914 (printed for the use of the Committee on Interstate Commerce, 63d Cong., 2d sess.) ; and dissenting opinion of Justice Brandeis in Federal Trade Commission V. Gratz, 253 U. S. 421, 429-442. (See case also in Vol. II of Commission's Decisions, p. 564 at pp. 570–579, or in 1920 “ Acts from which the Commission," etc., p. 98 at pp. 104–113.)

Sec. 4. DEFINITIONS--('ontinued.

“Acts to regulate commerce."

Antitrust acts.”

“ Acts to regulate commerce” means the Act entitled' "An Act to regulate commerce," approved February fourteenth, eighteen hundred and eighty-seven, and all Acts amendatory thereof and supplementary thereto.

“ Antitrust acts means the Act entitled “ An Act to protect trade and commerce against unlawful restraints and monopolies," approved July second, eighteen hundred and ninety; 14 also the sections seventy-three to seventy-seven, inclusive, of an Act entitled “An Act to reduce taxation, to provide revenue for the Government, and for other purposes," approved August twentyseventh, eighteen hundred and ninety-four; and also the Act entitled " An Act to amend sections seventy-three and seventy-six of the Act of August twenty-seventh, eighteen hundred and ninety-four, entitled ' An Act to reduce taxation, to provide revenue for the Government, and for other purposes,”” approved February twelfth, nineteen hundred and thirteen.

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corporations can escape reRATED ASSOCIATION NOT DI

straint, under the Act, from BECTLY ENGAGED IN BUSINESS.

combining in the use of unfair 1.

The Harness methods of competition, merely Manufacturers' Association is a because they employ as a mevoluntary, unincorporated asso- llum therefor unincorpociation and thus without capital rated, voluntary association, stock. It is not itself engaged without capital and not itself in business. Petitioner con- engaged in commercial busitends that it therefore is not ness." Natl. Harness Ifrs. with'n the Act.

The Ass'n. v. Federal Trade Comlanguage of the Act affords no mission, Dec. 7, 1920, 268 Fed. support for the thought that 705, 708, 709. (See case in this individuals, partnerships, and compilation, p. 132 at p. 137.)


Unfair methods unlawful.

Sec. 5. That unfair methods of competition in commerce are hereby declared unlawful.

The commission is hereby empowered and directed to and common care prevent persons, partnerships, or corporations, except riers excepted. banks, and common carriers subject to the Acts to regu

Commission to


1 a For text of Sherman Act, see footnote on pp. 45–47.

2 Jurisdiction of Commission under this section limited by sec. 406 of the “ Packers and Stockyards Act, 1921," approved Aug. 15, 1921, ch 64, 42 Stat., 159. See first paragraph of footnote on p. 1.

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