falsely in advertising that rugs would be made to order from the specific or identical materials sent to it by the particular customers (Docket 2976, 24 F.T.C. 1055, 1062). United States v. Northfield Mills, Inc. (Bernard Goldfine and Horace Maxwell Goldfine)-United States District Court for the District of Vermont; judgment in the amount of $5,000 entered on June 17, 1960, for violation of the order of Feb. 7, 1957, requiring three affiliated New England woolen manufacturers to cease misbranding certain wool products and furnishing to purchasers labels bearing false information to be attached to garments (Docket 6601, 53 F.T.C. 672, 674). United States v. Americana Corporation-United States District Court for the District of Maryland; penalty of $16,000 assessed on Nov. 30, 1960. The complaint originally charged 16 violations of the Commission's order of July 14, 1948, as modified Dec. 8, 1949-prohibiting misrepresentations in connection with the sale of "Encyclopedia Americana"-but the Government voluntarily dismissed two at the beginning of the 3-day jury trial. The judge directed a verdict for the defendant on 6 of the remaining 14 counts and let the case go to the jury on 8 counts. The jury returned a verdict in favor of the Government on all 8 counts and the judge assessed a penalty of $2,000 for each violation, totaling $16,000 (Docket 5085, 45 F.T.C. 32, 47, as modified by 46 F.T.C. 253). United States v. Crown Manufacturing Co., Inc., et al.—United States District Court for the Eastern District of Pennsylvania; Wool Products Labeling Act charges in the sale of interlining materials dismissed Dec. 15, 1960, upon payment of $5,000 in compromise settlement approved by the Commission (Docket 6796, 53 F.T.C. 1078, 1079). THE STATUTES FEDERAL TRADE COMMISSION ACT [PUBLIC NO. 203-63D CONGRESS, AS AMENDED BY PUBLIC— No. 447-75TH CONGRESS, AS AMENDED BY PUBLICNo. 459-81ṣT CONGRESS] 1 [H.R. 15613 and S. 1077] AN ACT To create a Federal Trade Commission, to define its powers and Sec. 1. CREATION AND ESTABLISHMENT OF sioners. Ap Five commispointed by President. Not more than three from party. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That a commission is hereby created and established, to be known as the Federal Trade Commission (hereinafter referred to as the commission), which shall be composed of five commissioners, who shall be appointed by the President, by and with the advice and consent of the Senate. Not more than three of the commissioners shall be members of the same political party. same political The first commissioners appointed shall continue in office for terms of three, four, five, six, and seven years, respectively, from the date of the taking effect of this Act, the term of 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: Provided, however, That upon the expiration of his term of office a Commissioner shall continue to serve until his successor shall have been appointed and shall have qualified. The commission shall choose a chairman from its own mem- Choosing of No commissioner shall engage bership. 2 in any other 1 The Act is published as also amended by Public No. 706, 75th Congress and by Public No. 542, 82d Congress (see footnote 7), and as further amended, as above noted, by Public No. 459, 81st Congress, Ch. 61, 2d Session, H.R. 2023 (An Act to regulate oleomargarine, etc.), approved March 16, 1950, and effective July 1, 1950 (see footnotes 9, 12, and 13). 'Under the provisions of section 3 of Reorganization Plan No. 8 of 1950, effective May 24, 1950, the functions of the Commission with Terms, seven serve until qualifies. years. To successor Chairman. Other business prohibited. Removal by business, vocation, or employment. Any commissioner may be removed by the President for inefficiency, neglect Vacancy not to of duty, or malfeasance in office. A vacancy in the President. impair power of remaining commissioners. commission shall not impair the right of the remaining commissioners to excercise all the powers of the commission. The commission shall have an official seal, which shall be judicially noticed. Sec. 2. SALARIES. SECRETARY. OTHER EM- 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 commission shall appoint a secretary, who shall receive a salary of $5,000 a year, payable in like manner, and it shall have authority to employ and fix the compensation 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.5 With the exception of the secretary, a clerk to each commissioner, the attorneys, and such special experts and examiners as the commission may from time to time find respect to choosing a chairman from among the membership of the Commission was transferred to the President. Under said plan, prepared by the President and transmitted to the Senate and House on March 13, 1950, pursuant to the provisions of the Reorganization Act of 1949, approved June 20, 1949, there were also transferred to the Chairman of the Commission, subject to certain limitations, "the executive and administrative functions of the Commission, including functions of the Commission with respect to (1) the appointment and supervision of personnel employed under the Commission, (2) the distribution of business among such personnel and among administrative units of the Commission, and (3) the use and expenditure of funds." The salary of the Chairman was fixed at $20,500 and the salaries of the other four Commissioners at $20,000 by Sec. 105(9) and Sec. 106(a) (45), respectively, of Public Law 854, 84th Cong., ch. 804, 2d sess., H.R. 7619 (An Act to adjust the rates of compensation of the heads of the executive departments and of certain other officials of the Federal Government, and for other purposes), approved July 31, 1956. The salary of the Secretary is controlled by the provisions of the Classification Act of 1923, approved March 4, 1923, 42 Stat. 1488, as amended, which likewise generally controls the compensation of the employees. See preceding footnote. Which necessary for the conduct of its work, all employees of the commission shall be a part of the classified civil service, and shall enter the service under such rules and under civil regulations as may be prescribed by the commission and by the Civil Service Commission. All of the expenses of the commission, including all necessary expenses for transportation incurred by the commissioners or by their employees under their orders, 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. service. Expenses of how paid. Commission Until otherwise provided by law, the commission may offices. rent suitable offices for its use. accounts. The Auditor for the State and Other Departments Auditing of shall receive and examine all accounts of expenditures of the commission." of Bureau's etc. SEC. 3. That upon the organization of the commis- Transfer sion and election of its chairman, the Bureau of Corpora- work. tions and the offices of Commissioner and Deputy Commissioner of Corporations shall cease to exist; and all pending investigations and proceedings of the Bureau of Corporations shall be continued by the commission. All clerks and employees of the said bureau shall be And employees, transferred to and become clerks and employees of the 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 ex • Auditing of accounts was made a duty of the General Accounting Office by the Act of June 10, 1921, 42 Stat. 24. |