WEBB ACT.32 [Approved Apr. 10, 1918.] [PUBLIC-No. 126-65TH CONGRESS.] [H. R. 2316.] AN ACT To promote export trade, and for other purposes. Sec. 1. DEFINITIONS. Be it enacted by the Senate and House of Representatives of the United States of America in Congress as"Export trade." sembled, That the words "export trade" wherever used in this Act mean solely trade or commerce in goods, wares, or merchandise exported, or in the course of being exported from the United States or any Territory thereof to any foreign nation; but the words "export trade" shall not be deemed to include the production, manufacture, or selling for consumption or for resale, within the United States or any Territory thereof, of such goods, wares, or merchandise, or any act in the course of such production, manufacture, or selling for consumption or for resale. "Trade within the United States." "Association." Association not illegal if organ That the words "trade within the United States" wherever used in this Act mean trade or commerce among the several States 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 or Territories and any State or States or the District of Columbia, or between the District of Columbia and any State or States. That the word "Association" wherever used in this Act means any corporation or combination, by contract or otherwise, of two or more persons, partnerships, or corporations. "TRADE WITHIN THE UNITED STATES." On interstate commerce, see annotations to Federal Trade Commission Act, pars. 39-43 (pp. 462, 463), and annotations to Clayton Act, pars. 47-51 (pp. 497-499): Sec. 2. ASSOCIATION FOR OR AGREEMENT OR ACT MADE OR DONE IN COURSE OF EXPORT TRADE-STATUS UNDER SHERMAN ANTITRUST LAW. 66 SEC. 2. That nothing contained in the Act entitled “ An ized for and en- Act to protect trade and commerce against unlawful retrade solely. straints and monopolies," approved July second, eighteen gaged in export 82 The Reports have been checked for annotations through 273 Fed. 768 (Part 3, Advance Sheets, issued as of Sept. 1, 1921), and 41 Sup. Ct. 625, which disposes of all cases decided at the October term, 1920 (last decisions handed down on June 6, 1921). nor act, if not hundred and ninety,320 shall be construed as declaring to be illegal an association entered into for the sole purpose of engaging in export trade and actually engaged solely in such export trade, or an agreement made or act done in Nor agreement the course of export trade by such association, provided in restraint of such association, agreement, or act is not in restraint of United States, or trade within the United States, and is not in restraint of trade of any dothe export trade of any domestic competitor of such as- tor, and trade within the of the export mestic competi artificially or in hance or depress sociation: And provided further, That such association If such associadoes not, either in the United States or elsewhere, enter tion does not into any agreement, understanding, or conspiracy, or do tentionally enany act which artificially or intentionally enhances or de- prices of, or subpresses prices within the United States of commodities stantially lessen of the class exported by such association, or which sub-restrain trade in stantially lessens competition within the United States or otherwise restrains trade therein. Sec. 3. ACQUISITION BY EXPORT TRADE CORPORATION OF STOCK OR CAPITAL OF OTHER CORPORATION. competition, ог commodities of class exported. under Clayton Act un SEC. 3. That nothing contained in section seven of the Act entitled "An Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes," approved October fifteenth, nineteen hundred and fourteen, shall be construed to forbid the acquisi-Lawful tion or ownership by any corporation of the whole or any less effect may be part of the stock or other capital of any corporation or substantially organized solely for the purpose of engaging in export within United trade, and actually engaged solely in such export trade, unless the effect of such acquisition or ownership may be to restrain trade or substantially lessen competition within the United States. Sec. 4. FEDERAL TRADE COMMISSION ACT EXTENDED TO EXPORT TRADE COMPETITORS. SEC. 4. That the prohibition against "unfair methods of competition" and the remedies provided for enforcing said prohibition contained in the Act entitled "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes," approved September twenty-sixth, nineteen hundred and fourteen, shall be construed as extending to unfair methods of competition 2 For text of Sherman Act, see footnote on pp. 483-485. 38 See ante, p. 516. See ante, p. 439 et seq. 34 to restrain trade lessen competition States. Even though Sec. 4. FEDERAL TRADE COMMISSION ACT EXTENDED TO EXPORT TRADE COMPETITORS-Continued. used in export trade against competitors engaged in exacts involved port trade, even though the acts constituting such unfair done without ter- methods are done without the territorial jurisdiction of tion of United the United States. ritorial jurisdic States. Export trade associations or file statement with Federal Trade Commission show Sec. 5. OBLIGATIONS OF EXPORT TRADE ASSOCIATIONS UNDER THIS ACT. PENALTIES FOR FAILURE TO COMPLY. DUTIES AND POWERS OF COMMISSION. SEC. 5. That every association now engaged solely in corporations to export trade, within sixty days after the passage of this Act, and every association entered into hereafter which ing location of engages solely in export trade, within thirty days after addresses of off its creation, shall file with the Federal Trade Commisalso articles of sion a verified written statement setting forth the locacontract of asso- tion of its offices or places of business and the names and offices, names, and cers, etc., and incorporation or ciation, etc. addresses of all its officers and of all its stockholders or members, and if a corporation, a copy of its certificate or articles of incorporation and by-laws, and if unincorporated, a copy of its articles or contract of association, and on the first day of January of each year thereafter it shall make a like statement of the location of its offices or places of business and the names and addresses of all its officers and of all its stockholders or members and of all amendments to and changes in its articles or certificate of incorporation or in its articles or To furnish also contract of association. It shall also furnish to the comorganization, mission such information as the commission may require as to its organization, business, conduct, practices, management, and relation to other associations, corporations, partnerships, and individuals. Any association which Penalties, loss shall fail so to do shall not have the benefit of the pro2 and 3, and fine. visions of section two and section three of this Act, and information as to business, etc. of benefit of secs. it shall also forfeit to the United States the sum of $100 for each and every day of the continuance of such failure, which forfeiture shall be payable into the Treasury of the United States, and shall be recoverable in a civil suit in the name of the United States brought in the district where the association has its principal office, or in any District attor district in which it shall do business. It shall be the recovery of duty of the various district attorneys, under the direction of the Attorney General of the United States, to prosecute for the recovery of the forfeiture. The costs and neys to prosecute for forfeiture. expenses of such prosecution shall be paid out of the appropriation for the expenses of the courts of the United States. Commission to straint of trade, tional enhance ening of compe tion. Whenever the Federal Trade Commission shall have Federal Trade reason to believe that an association or any agreement investigate remade or act done by such association is in restraint of artificial or inten trade within the United States or in restraint of the ex- ment or depression of prices or port trade of any domestic competitor of such association, substantial less. or that an association either in the United States or else- tition by associawhere has entered into any agreement, understanding, or conspiracy, or done any act which artificially or intentionally enhances or depresses prices within the United States of commodities of the class exported by such association, or which substantially lessens competition within the United States or otherwise restrains trade therein, it shall summon such association, its officers, and agents to appear before it, and thereafter conduct an investigation into the alleged violations of law. Upon investigation, May recom if it shall conclude that the law has been violated, it may ment in case of make to such association recommendations for the readjustment of its business, in order that it may thereafter maintain its organization and mangement and conduct its business in accordance with law. If such association fails. To refer find ings and recom. to comply with the recommendations of the Federal Trade mendations to Attorney General Commission, said commission shall refer its findings and if association fails recommendations to the Attorney General of the United recommendation. States for such action thereon as he may deem proper. mend readjust violation. to comply with given same pow eral Trade ComAct SO mission For the purpose of enforcing these provisions the Fed- Commission eral Trade Commission shall have all the powers, so far ers as under Fedas applicable, given it in "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes." 35 Approved, April 10, 1918. IN GENERAL. Act referred to in opinion in United States v. United States Steel Corporation, March 1, 1920. 251 U. S. 417, 453, 64 L. Ed. 343, 354, 40 Sup. Ct. 293, 300, in de 85 See ante, p. 439 et seq. ciding suit to dissolve United far as applicable. APPENDIX II. DECISIONS OF THE COURTS ON PETITIONS TO ENFORCE OR REVIEW THE ORDERS OF THE COMMISSION OR TO ENJOIN IT FROM PROCEEDING.1 UNITED STATES v. BASIC PRODUCTS CO. (District Court, W. D. Pennsylvania. September 9, 1919.) No. 2214. 1. UNITED STATES KEY No. 97-CAN NOT APPROPRIATE PATENT WITHOUT COMPENSATION. There is no reservation in the patent laws of right in the United States as against the inventor, and it can not appropriate or use the invention without just compensation in any different way than it can appropriate or use any other article owned by a private citizen. 2. COMMERCE KEY No. 48-FEDERAL TRADE COMMISSION CREATED UNDER POWER TO REGULATE INTERSTATE AND FOREIGN COMMERCE. The Federal Trade Commission Act (Comp. St., pars. 8836a8836k) was enacted by Congress in the exercise of its constitutional power to regulate interstate and foreign commerce. 1 With the exception of two cases, the period covered is from July 1 1920, to June 30, 1921. The two exceptions referred to are the case of the Basic Products Co. and the case of the Maynard Coal Co. (see p. 555, infra, for latter case), printed in full at this time as a matter of convenience because not heretofore so included in the Commission's Reports. Decisions on petitions to review handed down before the period above referred to will be found in Appendix II of Vol. II of the Commission's decisions. Cases in which injunctions have been sought to restrain the Commission from proceeding under sec. 5 or in which it has been sought to defeat such a proceeding by appealing for a writ of certiorari to review the action of the Commission in denying motions to dismiss the proceeding for lack of jurisdiction, as of this writing (Oct. 15, 1921) are as follows: By injunction-Federal Trade Commission v. Nulomoline Co., in which the Circuit Court of Appeals for the Second Circuit on August 16, 1918, refused to interfere with the Commission's taking testimony, on the ground that the Commission's order requiring the same was interlocutory (memorandum opinion in 254 Fed. 988); T. C. Hurst & Son v. Federal Trade Commission, decided August 2, 1920, in the District Court for the Eastern District of Virginia (268 Fed. 874; see p. 565, infra), and Butterick Co. et al. v. Federal Trade Commission, in which the bills of four respondents in a proceeding before the Commission (Dock. 594) to enjoin the Commission from proceeding under sec. 5 were dismissed by 542 |