Trade Commission

FEDERAL. An act of congress was passed September 2G, 1914, creating a Federal Trade Commission, of the Senate, three only to be members of the same political party. The first commissioners remain in ofiice for terms of three, four, five, six and seven years respectively, and their successors are appointed for seven years. They shall not engage In any other occupation. The salary is $10,000 a year. Upon the organization of the commission, the Bureau of Corporations and the offices of Commissioner and Deputy Commissioner of Corporations shall cease to exist, and its work shall be continued by the commission. Its principal office shall be in Washington, but it may meet and exercise its powers in other places. The act provides: “That unfair methods of competition in commerce are hereby declared unlawful,” and the commission is “directed to prevent persons, partnerships or' corporations, except banks, and common carriers subject to the acts to regulate commerce, from using unfair methods of competition in commerce.” If the commission “shall have reason to believe that any such person, etc., has been or is using any unfair method of competition in commerce and if it shall appear to the commission that a proceeding by it in respect thereof would be to the Interest of the public,” it shall serve upon such person, etc., a complaint stating the charges, with notice of the hearing at least thirty days after service. Such person, etc., shall be permitted to appear and show cause why an order should not be entered requiring such person, etc., to cease from a violation of the law as charged. Any person, etc., may be allowed by the commission to intervene by counsel or in person. Testimony may be taken and is to be filed with the commission. If the commission is of opinion that the method of competition is prohibited by the act, it shall make a report in writing, with findings of fact, and shall issue and serve an order requiring such person, etc., to cease from such method of competition. Until a transcript of the record of the hearings has been filed in the Circuit Court of Appeals, tile commission may modify or set aside any report or order. If such person, etc., fails or neglects to obey such order, the commission may apply to the Circuit Court of Appeals in any circuit where the method of competition was used or where such person, etc., resides or carries on its business, to enforce such order, and file a transcript of the entire proceedings; whereupon the court, having caused notice to be served upon such person, etc., shall “have jurisdiction of the proceeding and of the question determined therein” and the power to enter upon the pleadings, etc., a decree affirming, modifying or setting aside the order of the commission. “Findings of The court may on application of the person, etc., order additional evidence to be taken before the commission and to be adduced upon the hearing. The commission may modify its findings of facts or make new findings by reason of the additional evidence, which, if supported by testimony, shall be conclusive, and shall file its recommendation, if any, for the modification or setting aside of its original order. The decree of the court shall be final, subject only to review by the Supreme Court on certiorari under Jud. Code, § 240. Any party against whom an order is made by the commission may obtain a review of the order in the Circuit Court of Appeals upon written petition served upon the commission, whereupon the commission shall certify and file in the court a transcript of the record, and the court shall then have the same jurisdiction to affirm, modify or set aside the order as in the case of an application by the commission for the enforcement of its order, and the findings of the commission as to the facts, if supported by testimony, shall in like manner be conclusive. The jurisdiction of the court shall be exclusive. The proceedings therein shall have precedence over other cases pending, and '‘shall be in every way expedited.” No order of the commission or judgment of the court shall relieve any person, etc., “from any liability under the anti-trust acts.” By section 6 the commission has power (except as to banks, and common carriers subject to the acts to regulate commerce): a. To gather and compile information concerning, and investigate, the organization, business management, etc., of any corporation, etc., engaged in commerce (but not those excepted as above), and its relation to other corporations, individuals, etc.; b. To require by general or special orders such corporations, or any class of them, to file with the commission under its forms, annual or special, or both, reports, or answers in writing to specified questions of the commission as to its organization, business, etc., and its relation ty other corporations, etc. These are to be made under oath or as the commission may prescribe, c. Whenever a final decree has been entered against any defendant corporation in any suit brought by the United States under the anti-trust acts, to make investigation, upon its own initiative, of the manner in which the decree has been or is being carried out, and upon the application of the Attorney General, it shall be its duty to make such investigation; d. Upon the direction of the President or either House of Congress to report upon the alleged violation of the anti-trust acts by any corporation; e. Upon the application of the Attorney General to investigate and make recommendations for the readjustment make public from time to time such portions of the information obtained by it hereunder, except trade secrets and names of customers, as it shall deem expedient; and to make annual and special reports to Congress and to submit therewith recommendations for additional legislation; and to provide for the publication of its reports and decisions, etc.; g. From time to time to classify corporations and to make rules and regulations for the purpose of carrying out the provisions of the act; h. To investigate trade conditions and with foreign countries; and report to Congress with recommendations. Section 7. In any suit in equity brought by the Attorney General, as provided in the anti-trust acts, the court may, upon the conclusion of the testimony, if of the opinion that the complainant is entitled to relief, refer the same to the commission, as a master in chancery, to ascertain and report an appropriate form of decree therein. The act contains drastic provisions for eliciting evidence, through the District Court, and an immunity clause to witnesses, and other details as to which reference must be made thereto. See Act of Oct. 15, 1914 (Clayton Act), discussed by Mr. Taft in Amer. Bar Assoc. Rep. (1914).