Herman M. Neuschatz and I. M. Halpern

Volume 6 · 6 F.T.C. 508

Citation: 6 F.T.C. 508
Docket: 1069
Complaint: 1923-10-30
Decision: 1923-10-30 (recovered from the page header)
Document type: complaint
Case type: consumer protection
Industry: millinery supplies
Source: Original volume PDF
Original PDF: This decision as a PDF

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Herman M. Neuschatz and I. M. Halpern, 6 F.T.C. 508 (1923). Consumer Law Library, https://consumerlawlibrary.org/decisions/v006-0053

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Order status: unknown. Sunset may be extended by the latest qualifying federal-court complaint alleging an order violation; complaints, dismissal/appeal outcomes, and respondent-specific extensions are not fully tracked.

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PANY.

COMPLAINT IN THE MATTER OF THE ALLEGED VIOLATION OF SECTION 5 OF AN ACT OF CONGRESS APPROVED SEPTEMBER 26, 1914.

Docket 1069—October 30, 1923.

SYLLABUS.

Where a corporation under the name “U-Glu, Inc.” manufactured and sold a millinery glue packed and marketed in cans the labels of which prominently displayed its registered trade-mark consisting of the word “U-Glu” surrounded by a wreath in connection with the word “Trade-Mark”, which labels also contained a statement in respect of the purposes, characteristics, and use of said product; and thereafter a competitor, which had never registered any trade name or trade-mark with the United States Patent Office, (a) Adopted and placed the name “Glu” surrounded by a wreath, in connection with the words “Trade-Mark”, upon the labels of its product, which it marketed and sold in containers similar in shape and size to those of said corporation; and (b) Used labels which also in size and design, in the use of a practically identical statement of purposes, characteristics and use, and in the arrangement thereof upon the labels, closely resembled those of said corporation:

Held, That such simulation of trade-mark and label of a competitor, under the circumstances set forth, constituted an unfair method of competition.

COMPLAINT.

Acting in the public interest pursuant to the provisions of an Act of Congress, approved September 26, 1914, entitled, “An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes,” the Federal Trade Commission charges that Herman M. Neuschatz and I. M. Halpern, partners doing business under the trade name and style of Peruvian Rubber Cement Company, hereinafter referred to as respondent, have been and are using unfair methods of competition in interstate commerce in violation of the provisions of Section 5 of said Act, and states its charges in that respect as follows:

PARAGRAPH 1. Respondents are partners doing business under the trade name and style “Peruvian Rubber Cement Company” with their principal place of business in the City and State of New York. They are engaged in the manufacture of a certain glue or cement,

PERUVIAN RUBBER CEMENT CO. 507

506 Complaint.

hereinafter called millinery glue, adapted for and used in the manufacture of millinery, and the sale of said millinery glue to persons, partnerships and corporations engaged in the millinery trade, including wholesalers and retailers of millinery supplies, and located at points in the various States of the United States. They cause said product when so sold to be transported from their aforesaid place of business in the City and State of New York into and through other States of the United States to said purchasers at their respective points of location. In the course and conduct of their said business respondents are in competition with other individuals, partnerships and corporations engaged in the manufacture and/or sale of millinery glue and similar products in interstate commerce. PAR. 2. Among the aforesaid competitors of respondents is U-Glu, Incorporated, a corporation organized under the laws of the State of New York with its principal place of business in the City of New York in said State. Said competitor is hereinafter referred to as the "corporation." For more than two years last past the corporation has manufactured and sold in interstate commerce, and still manufactures and so sells, a millinery glue named by the corporation "U-Glu." During said time the corporation has used as a trademark under and in connection with which to market its said millinery glue, a device consisting of the word U-Glu surrounded by a wreath in connection with the words "trade-mark." During aforesaid time the corporation has packed and marketed its said millinery glue in cans upon which it has caused to be placed certain labels bearing the word U-Glu and aforesaid trademark prominently displayed together with certain statements and assertions concerning the purposes to which said millinery glue is adapted, certain characteristics possessed by it and directions for its use. The corporation still markets its said millinery glue packed and labelled as above set out.

PAR. 3. In about the beginning of the year 1922 respondents adopted for their aforesaid millinery glue the name "G L U" and have continuously since marketed their said millinery glue under and in connection with said name. During said time respondents have packed and marketed their said millinery glue in cans similar in shape and size to the cans of the corporation referred to in paragraph 2 hereof, and during said time have caused certain labels to be placed upon said cans, which said labels closely resemble aforesaid labels of the corporation in size and design. Upon their said labels respondents caused to be placed the word G L U in quotation marks, and a device consisting of the word G L U surrounded by a wreath and in connection with the words "trade mark", all in form and design closely resembling the aforesaid trade-mark of the cor-

508 FEDERAL TRADE COMMISSION DECISIONS.

Findings. 6 F. T. C.

poration. Respondents further caused to be printed upon their said labels certain statements and assertions concerning the purposes to which their said millinery glue is adapted, certain characteristics possessed by it and directions for its use, all practically identical with the statements appearing upon the labels of the corporation as set out in paragraph 2 hereof. Respondents still market their said millinery glue packed and labeled as above set out. PAR. 4. The aforesaid labels attached by respondents to the cans in which they market their millinery glue, all as set out in paragraph 3 hereof, have the capacity and tendency to mislead and deceive the millinery trade and other purchasers and users of millinery glue into the erroneous belief that the millinery glue manufactured and sold by respondents is the millinery glue manufactured and sold by the corporation, and to cause the millinery trade and said other purchasers and users, acting in said belief, to purchase the millinery glue of respondents as and for the millinery glue of the corporation. PAR. 5. The above alleged acts and things done by respondents are all to the prejudice of the public and of respondents' competitors and constitute unfair methods of competition in commerce within the intent and meaning of Section 5 of an Act of Congress entitled, "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes," approved September 26, 1914.

REPORT, FINDINGS AS TO THE FACTS, AND ORDER.

Pursuant to the provisions of an Act of Congress approved September 26, 1914, the Federal Trade Commission issued and served a complaint upon the respondents, Herman M. Neuschatz and I. M. Halpern, copartners doing business under the trade name and style of Peruvian Rubber Cement Company, charging them with the use of unfair methods of competition in commerce, in violation of the provisions of said act. The respondents having made, executed and filed an agreed statement of facts in which it is stipulated and agreed by respondents that the Federal Trade Commission shall take such agreed statement of facts as the facts in this case and in lieu of testimony, and proceed forthwith upon such agreed statement of facts to make its findings as to the facts and such order as it may deem proper to enter therein, without the introduction of testimony or the presentation of argument in support of same, the Federal Trade Commission being now fully advised in the premises, makes this its findings as to the facts and conclusion:

PERUVIAN RUBBER CEMENT CO. 509

506 Findings.

FINDINGS AS TO THE FACTS.

PARAGRAPH 1. That respondents are copartners doing business under the trade name and style of "Peruvian Rubber Cement Company," having an office and principal place of business at No. 73 Fourth Avenue, Borough of Manhattan, City, County and State of New York, and their factory at 340 Hamilton Street, Long Island City, New York. They are engaged in the manufacture of a certain glue or cement, sometimes called millinery glue and adapted for and used in the manufacture of millinery, and respondents are engaged in the sale of the said millinery glue to persons, partnerships and corporations, including wholesale and retail dealers in millinery supplies located at points in the various states of the United States of America, some of whom are located in states other than the State of New York. Respondents cause said millinery glue when so sold by them to be transported from their aforesaid place of business or factory in the State of New York to, into and through other states of the said United States to the purchasers of said millinery glue at their respective points of location in said other states. In the course and conduct of their said business respondents are in competition with other individuals, persons and corporations engaged in the manufacture and sale of millinery glue and similar products in interstate commerce.

PAR. 2. That among the aforesaid competitors of respondents is "U-Glu Inc.", a corporation organized under the laws of the State of New York, with its principal place of business in the City of New York in said State. Said "U-Glu Inc." for more than three years prior to the 19th day of September 1923, has manufactured and sold, and still manufactures and sells to purchasers located in various states of the said United States other than in the State of New York, a millinery glue called "U-Glu", and during aforesaid time has caused and still causes said millinery glue called "U-Glue" when so sold by it to be transported from the State of New York to, into and through said other states to the said purchasers of the said "U-Glu" at their respective points of location. Prior to, and during the aforesaid time said corporation has used the name "U-Glue" as a trade name, and said corporation caused this trade name to be registered as a trade-mark in its said business at the United States Patent Office in the early part of 1922, said trade-mark consisting of the said word "U-Glu" surrounded by a wreath in connection with the word "Trade-Mark". During the aforesaid time the said corporation has packed and marketed its said millinery glue as aforesaid in cans upon which it has caused and still causes to be placed certain labels bearing the said word "U-Glu" or the said trade-mark

510 FEDERAL TRADE COMMISSION DECISIONS.

Conclusion. 6 F. T. C.

prominently displayed, together with certain statements and assertions concerning the purposes to which said millinery glue is adapted and certain characteristics possessed by it, with directions for the use of the said millinery glue.

PAR. 3. That subsequent to the use by the said corporation, "U- Glu Inc.", of the trade name "U-Glu" and the trade mark "U-Glu" as above set forth the respondents in about the beginning of the year 1922 adopted for the millinery glue manufactured and sold by them as aforesaid the name "Glu" and have since said time caused to be placed upon cans in which it has marketed and sold its said millinery glue as aforesaid certain labels bearing the said word "Glu" and also the said word "Glu" surrounded by a wreath in connection with the words "Trade-Mark." The said respondents have not now nor during any of the aforesaid times registered the device consisting of the word "Glu" surrounded by a wreath, used by them in connection with the words "Trade-Mark" with the United States Patent Office, and respondents have no trade name or trade mark whatsoever registered with the United States Patent Office in connection with their sale of millinery glue as aforesaid. During the aforesaid time the respondents have packed and marketed their said millinery glue in cans similar in shape and size to the cans of the corporation above named, and since the early part of the year 1922 have caused certain labels to be placed upon said cans closely resembling the aforesaid labels of the corporation in size and design. Besides the use upon their labels of the said pretended trade mark by the respondents, and the said word "Glu", respondents cause their said labels to be printed closely resembling the labels of the aforesaid corporation in size and design. Respondents cause the statement of the purposes for which their millinery glue is used and the statement of the directions for its use to be printed upon their said labels practically identical with the statements of the aforesaid corporation which it has upon its labels regarding the purposes and the directions for the use of its product, and the respondents have caused the said statements and assertions to be placed upon their labels so that their location on the labels correspond to the location of the said similar statements of the said corporation on its labels. Annexed to this statement of facts is one of the said labels of the aforesaid corporation marked "Commission's Exhibit No. 1"¹ and one of the labels aforesaid used by the respondents marked "Commission's Exhibit No. 2".¹ CONCLUSION.

The practices of the said respondents, under the conditions and circumstances described in the foregoing findings, are unfair methods ¹ Not published.

PERUVIAN RUBBER CEMENT CO. 511

506 Order.

of competition in commerce, and constitute a violation of the Act of Congress approved September 26, 1914, entitled "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes."

ORDER TO CEASE AND DESIST.

This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission and agreed statement of facts made and executed by the respondents and filed herein, and the Commission having made its findings as to the facts and its conclusion that the respondents have violated the provisions of an Act of Congress approved September 26, 1914, entitled "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes,"

It is now ordered, That the respondents, Herman M. Neuschatz and I. M. Halpern, individually and as copartners doing business under the trade name and style of Peruvian Rubber Cement Company and/or National Rubber Mfg. Co., their agents, representatives, servants and employees, do cease and desist from describing the commodity known as millinery glue, manufactured and sold by respondents, by or with the name spelled " Glu " either alone or surrounded by a wreath or other device with or without connection with the words " Trade-Mark " on any labels attached to a container or containers or in connection with any printed matter relating to the said commodity, dealt in by respondents known as millinery glue.

Respondents shall cease and desist from using labels on a container or containers of their said product which are printed closely resembling the labels of the corporation known as " U-Glu " Inc.", in color, size and design, and from printing upon the said labels any statement of the purposes of the use of said millinery glue or directions for its use, the words of which statement or the manner of their arrangement are identical or substantially identical with such statements heretofore used upon the labels of the aforesaid corporation "U-Glu Inc."

It is further ordered, That the respondents, Herman M. Neuschatz and I. M. Halpern, shall, within sixty (60) days after the service upon them of this order, file with the Commission a report in writing setting forth in detail the manner and form in which they have complied with the order to cease and desist hereinbefore set forth.

36727°—25—VOL 6—34

CASES IN WHICH ORDERS FOR DISCONTINUANCE OR DISMISSAL HAVE BEEN ENTERED.

FEDERAL TRADE COMMISSION DECISIONS.

| Date of order. | Docket No. | Respondents. | Commodities. | Charges. | Answer, stipulation, or trial. | Reasons for discontinuance or dismissal. | | 1923. Mar. 12 | 727 | Austin Bond, doing business under the trade name and style of Bond Bros. & Co., New York. | Overissued or unused newspapers. | Appropriation of trade name, trade-mark, and code address of competitor. | Answer............ | No reasons assigned. | | 24 | 838 | Gypsum Industries Association, its officers, committees, and members.¹ | Gypsum products..... | Conspiring to hamper competition by restricting customer dealers to the territory in which they may sell and by limiting sales to those customer dealers who observe such limitations, "thereby hampering and obstructing the business of dealers who sell such products upon mail orders or otherwise for delivery at points other than those at which they maintain retail establishments." | .....do............. | "It appearing that on Jan. 3, 1923, the District Court of the United States for the Southern District of New York entered a decree in an action then pending therein in which the United States of America was complainant and Gypsum Industries Association et al. were defendants, by which decree the issues in the above-entitled proceeding were adjudicated and disposed of: "It is ordered, That the complaint herein be and the same hereby is dismissed." | | Apr. 10 | 869 | Baltimore & Philadelphia Steamboat Co. | Transportation service. | Selling below cost for the purpose of eliminating a competitor. | Trial................ | No reasons assigned; dismissed without prejudice, Commissioner Gaskill dissenting. | | 11 | 215 | Minerals Separation, Ltd.; Minerals Separation American Syndicate, Ltd.; Minerals Separation American Syndicate (1913) Ltd.; Beer, Sondheimer & Company; Beer, Sondheimer & Company, Inc.; Minerals Separation North American Corporation; Benno Elkan, Otto Frohnknecht, Harry Falck. | Paraphernalia, supplies, etc., having to do with the separation and concentration of ores by flotation. | With the intent and effect of stifling competition and of tending to create a monopoly; agreeing to prevent dealings in competitive apparatus, processes, commodities, etc., except upon permission, granted only upon payment of an exorbitant commission; to discriminate in the matter of such commissions between favored independent concerns dealing in such competitive apparatus and those whom it was desired to discipline and make examples of; to exact from and impose upon mine operators, metallurgists, engineers, etc., both within and without respondents' employ, exorbitant royalties and burdensome and unfair agreements, terms, and conditions both in connection with the use of respondents' apparatus, paraphernalia, processes, etc., and in connection with the use of competitive appa- | .....do............. | Dismissed "for lack of appearance of interstate commerce," Commissioner Thompson, in concurring therein, however, filing the following statement: "I agree with my associates that interstate commerce appears to be lacking in this case, and have, therefore, voted that the complaint should be dismissed. However, I believe it to be my duty, in view of the public interest involved to state that in my opinion the Minerals Separation, Ltd., of London, exceeded its authority in promiscuously sending out under its |

ratus, paraphernalia, processes, etc.; to discriminate in the matter of royalties between mine operators favored and those whom it was desired to discipline or make examples of; disparaging competitors and their products; making false and malicious patent claims and threats of infringement suits; intimidating and coercing competitors and their customers or prospective customers; espionage; discrimination in price in violation of section 2 of the Clayton Act; and tying or exclusive contracts or dealings in violation of section 3 thereof.

attorneys' signatures, to over four hundred mine operators a letter charging them with 'infringement of' its 'clients' patents for froth flotation concentration of ores," and it acted unfairly and negligently when, without any first-hand knowledge of whether the recipients were actually using flotation or violating respondents' patent rights, ordered them in the said letter as follows: 'You are therefore hereby directed to send me a full statement of your infringing operations in accordance with the interrogatories inclosed herewith, in default whereof I am directed to commence suit against you for an injunction, profits, and damage, including a preliminary injunction at the commencement of the suit to immediately stop your infringing operations.'"

1 The members of such association (and joined as respondents), according to the complaint, are as follows: Acme Cement Plaster Company, Illinois; American Cement Plaster Company, Kansas; American Gypsum Company, Ohio; Cardiff Gypsum Plaster Company, Iowa; Centerville Gypsum Company, Iowa; Colorado Portland Cement Company, Colorado Connecticut Adamant Plaster Company, Connecticut; Dakota Plaster Company, South Dakota; Ebsary Gypsum Company, New York; Empire Gypsum Company, New Jersey; Grand Rapids Plaster Company, Michigan; Higginson Manufacturing Company, New York; Kelley Plaster Company, Pennsylvania; J. B. King & Company, New York; Alabastine Company (which carries on a portion of its business under the name and style of the Michigan Gypsum Company), Michigan; Nephi Plaster & Manufacturing Company, Utah; Niagara Gypsum Company, New York; Overland Cement Plaster Company, Wyoming; Pacific Coast Gypsum Company, Washington; Plymouth Gypsum Company, Iowa; Rock Plaster Manufacturing Company, New York; Southern Gypsum Company (Inc.), Virginia; United States Gypsum Company, New Jersey; Wasem Plaster Company, Iowa. The executive officers and the members of certain standing committees of the respondent Gypsum Industries Association (joined as respondents), are as follows: Ray C. Haynes, president and member of the executive committee, which committee is ex officio the board of directors of said association; James Leenhouts, vice president and member of the executive and trade relations committee; R. G. Bear, treasurer and member of the executive and trade relations committee; H. H. McDonald, secretary; M. A. Reeb, member of the executive and trade relations committees; A. R. Black, L. E. Armstrong, A. A. Woll, J. C. Seguine, and W. E. Shearer, members of the executive committee; H. W. Blacksom, Warren Henley, E. G. West, H. C. Hamilton, and F. G. Ebsary, members of the trade relations committee.

CASES DISMISSED.

Cases in which orders for discontinuance or dismissal have been entered—Continued.

| Date of order. | Docket No. | Respondents. | Commodities. | Charges. | Answer, stipula- tion, or trial. | Reasons for discontinuance or dismissal. | |---|---|---|---|---|---|---| | 1923. May 7 | 269 | Paul E. Peck and Richard K. Peck, copartners doing business under the name of Paul E. Peck & Son. | Steamship supplies.... | Commercial bribery............................ | Answer............ | Dismissed "for the reasons that the respondents have been adjudicated bankrupts; that the respondent Paul E. Peck is now deceased, and said partnership is dissolved and no longer doing business." | | 14 | 131 | Atlantic Refining Co................ | Oil pumps, tanks, and outfits. | Misrepresenting competitors' products and prices; inducing and attempting to induce breach of competitors' contract; selling and loaning equipment below cost with the intent and effect of suppressing and stifling competition; intimidating or threatening customers of competitors; and falsely representing self as agent for or dealer in both the products of competitor and the products actually handled and quoting exorbitant prices on the former; all in violation of Section 5; and price discrimination in violation of Section 2 of the Clayton Act. | Answer and trial.. | "It is ordered, that the complaint herein be and the same is hereby dismissed, by reason of the decision of the Supreme Court of the United States in the Pump and Tank cases, Federal Trade Commission v. Sinclair Refining Co. et al." (261 U. S. 463). | | 14 | 308 | Ohio Cities Gas Co.................. | ....do.................... | Leasing oil tanks, pumps, and devices for nominal consideration, based on exclusive or tying contracts or dealings in violation of Sections 5 and 3 of the Federal Trade Commission and Clayton Acts respectively. | .....do.............. | Do. | | 14 | 324 | Factory Oil Co...................... | ....do.................... | ....do............................................ | .....do.............. | Do. | | 15 | 227 | Helvetia Milk Condensing Co. et al.³ | Evaporated milk...... | Guarantee against price decline.................... | .....do.............. | Dismissed without prejudice; no reasons assigned; Commissioners Thompson and Nugent dissenting. | | 15 | 372 | Standard Oil Co. of Kentucky.... | Oil pumps, tanks, and outfits. | Leasing oil tanks, pumps, and devices for nominal consideration, based on exclusive or tying contracts or dealings in violation of Sections 5 and 3 of the Federal Trade Commission and Clayton Acts respectively. | .....do.............. | "It is ordered, that the complaint herein be and the same is hereby dismissed, by reason of the decision of the Supreme Court of the United States in the Pump and Tank cases, Federal Trade Commission v. Sinclair Refining Co. et al." (261 U. S. 463). | | 15 | 544 | Valvoline Oil Co.................... | ....do.................... | ....do............................................ | Answer............ | Do. | | 15 | 587 | Tidewater Oil Co., Tidewater Oil Sales Corporation and Tidewater Oil Co. of Mass. | ....do.................... | ....do............................................ | ....do.............. | Do. |

FEDERAL TRADE COMMISSION DECISIONS.

18 | 800 | Herbert W. Brand, Harry C. Oppenheimer, and Edwin W.

Brand, partners, doing business under the name and style of Brand & Oppenheimer. | Linings for clothing... | Advertising falsely and misleadingly, misbranding or mislabeling, and misrepresenting products. | .....do............. | No reasons assigned; dismissed without prejudice, Commissioner Nugent dissenting.

Johnston. | Oil stock................ | .....do.............................................. | .....do.................. | Do. 4 | 820 | Carnick Bros. Co......................... | Iron and steel specialties. | Misrepresenting products.²............................ | .....do.................. | Respondent has gone out of business.

25 | 897 | M. T. K. Products Co., a Trust; J. A. Menard, John E. Burkheimer, B. G. Raymond, H. P.

Vogt, R. G. Townsend, and their successors, trustees under said trust; M. T. K. Sales Corporations, and Beckley-Ralston Co. | Abrasive bearing-fitting compound. | Intimidating customers and prospective customers of competitors through vague and general infringement claims and threatened suits | Answer............... | "Charges of the complaint are not supported by the proof."

Engle, C. T. Engle, and W. S.

Pratt. | Oil shares................. | Advertising falsely and misleadingly............. | Trial.................. | Do.

² In addition to the Helvetia Milk Condensing Co., there were joined in this case as intervening respondents the following concerns: Northfield Milk Products Co., Waverly Condensed Milk Co., Whitehouse Milk Products Co., Valecia Evaporated Milk Co., Van Camp Packing Co., Snohomish Dairy Products Co., Sturtevant, Wright & Wagner Dairy Co., Rogers Milk Corporation, Pennsylvania Milk Products Co., Perry Packing Co., Ohio Dairy Co., Middle States Creamery Co., Litchfield Creamery Co., Larimer County Cooperative Milk Condensery Co., John F. Jelke Co., Hope Condensed Milk Co., Goshen Milk Condensing Co., Badger Condensed Milk Co., Diamond Creamery Co., Dewart Milk Products Co., Continental Condensed Milk Co., Cremo Milk Co., Brownback Condensed Milk Co., Aviston Condensed Milk Co., American Milk Co., St. Lawrence Condensed Milk Corporation, P. E. Sharpless Co., Oatman Condensed Milk Co., Morey Condensery, Mohawk Condensed Milk Co., Libby, McNeill & Libby, Indiana Condensed Milk Co., Armour & Co., Grand Ledge Milk Co., Colorado Condensed Milk Co., Alpine Evaporated Cream Co., Carnation Milk Products Co., Borden's Condensed Milk Co., Danish Pride Milk Products Co., F. C. Mansfield Co., Lake Mills Condensed Milk Co., Waterloo Creamery Co., Wisconsin Dairy Products Co., Wisconsin Condensed Milk Co., Wisconsin Butter & Cheese Co. Respondent is engaged in the export business, the complaint being under Section 5 of the Federal Trade Commission Act, as extended by Section 4 of the Webb Act.

CASES DISMISSED.

Cases in which orders for discontinuance or dismissal have been entered—Continued.

| Date of order. | Docket No. | Respondents. | Commodities. | Charges. | Answer, stipula- tion, or trial. | Reasons for discontinuance or dismissal. | | 1923 July 31 | 729 | South Bend Bait Co................ | Fishing tackle, arti- ficial bait, etc. | Discriminating in price in violation of Sec- tions 5 and 2 of the F. T. C., and Clayton Acts, respectively. | Answer and trial.. | This matter being before the Commission for considera- tion in connection with the denial by the Supreme Court of the United States of a writ of certiorari in the case of the Commission against The Mennen Company, Docket No. 606 [Federal Trade Com- mission v. Mennen Co., 262 U. S. 759, refusing to review the decision of the lower court in Mennen Co. v. Federal Trade Commission, 288 Fed. 774]; and it appearing that the subject matter of the complaint herein falls within the judgment of the Circuit Court of Appeals for the Second Circuit in said case [Mennen Co. v. Federal Trade Commission, 288 Fed. 774]. “It is hereby ordered on the Commission’s own motion, that the order to cease and desist herein, dated March 14, 1922 [3 F. T. C. 355], be and the same is hereby, re- voked and that the complaint herein be, and the same is hereby, dismissed.” | | Sept. 12 | 1008 | S. A. Samuels, L. E. Samuels, L. H. Samuels, Harry H. Samuels, doing business under the name and style of Cocoa Products Co. | Cocoa and chocolate preparations. | Securing business through unauthorized al- teration of customers orders. | Answer------------ | No reasons assigned. | | 14 | 728 | American Safety Razor Corp...... | Shaving brushes....... | Advertising falsely and misleadingly and mis- labeling. | Answer and trial.. | Do. | | 27 | 1057 | Abner Frankel and Alexander Frankel, partners doing busi- ness under the trade name and style of The Willard Tailoring Co. | Men’s clothing......... | Holding out false and misleading prospects of future price concessions on articles con- tracted for, and meeting contract obliga- tions unfairly. | Answer------------ | Dismissed without prejudice; no reasons assigned. |

FEDERAL TRADE COMMISSION DECISIONS.

Oct 9 | 966 | J. B. Harris-Mexia Trust, J. B. Harris-Mexia Trust No. 2, J. B. Harris. | Oil shares and securities. | Advertising falsely and misleadingly and misrepresentations. | Answer and trial. | No reasons assigned. 24 | 551 | Armour & Co........................... | Butterine, oleomargarine, and nut margarine. | Tying or exclusive contracts or dealings in violation of Sections 5 and 3 of the F. T. C. and Clayton Acts, respectively. | Answer............. | The above entitled proceeding coming on to be heard upon the pleadings and the Commission having considered the matter and being advised in the premises: "It is ordered, That by reason of the decision and order of the Circuit Court of Appeals for the Seventh Circuit, in the matter of B. S. Pearsall Butter Company, petitioner, vs. Federal Trade Commission, respondent (October Term, 1922, April session, 1923 [292 Fed. 720]), the complaint in the above entitled proceeding be and the same is hereby dismissed without prejudice." Do. 24 | 552 | Swift & Co........................... | Oleomargarine and butterine. | .....do........................................ | .....do............. | Do. 24 | 553 | Downey-Farrell Co.................... | .....do....................... | .....do........................................ | .....do............. | Do. 24 | 554 | Wm. J. Moxley, Inc................... | .....do....................... | .....do........................................ | .....do............. | Do. 24 | 555 | Ed. S. Vail Butterine Co............. | .....do....................... | .....do........................................ | .....do............. | Do. 24 | 559 | Troco Nut Butter Co.................. | .....do....................... | .....do........................................ | .....do............. | Do. 24 | 560 | Friedman Manufacturing Co............ | .....do....................... | .....do........................................ | .....do............. | Do. 24 | 778 | Tide Water Oil Co. and Tide Water Oil Sales Corporation. | Petroleum products.... | Cumulative rebates or discounts and price discrimination (the latter charged as in violation of Section 2 of the Clayton Act as well as Section 5 of the F. T. C. Act). | .....do............. | Dismissed without prejudice, no reasons assigned, Commissioner Thompson dissenting.

CASES DISMISSED.

APPENDIX I.

ACTS OF CONGRESS FROM WHICH THE COM- MISSION DERIVES ITS POWERS.

FEDERAL TRADE COMMISSION ACT.¹

[Approved Sept. 26, 1914.]

[PUBLIC—No. 203—63D CONGRESS.]

[H. R. 15613.]

AN ACT To create a Federal Trade Commission, to define its powers and duties, and for other purposes.

Sec. 1. CREATION AND ESTABLISHMENT OF THE COM- MISSION.

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. 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

Five commissioners. Appointed by President, by and with, etc. Not more than three from same political party.

¹ This act has been annotated up to July 1, 1921, and may be found, so annotated, in Volume III of the Commission's Reports. Reported de cisions of the courts for the period covered by this volume (Feb. 14, 1923, to Nov. 4, 1923) and arising under this act are printed in full in Appendix II hereof (see infra, p. 559 et seq.). Previously reported decisions will be found set forth in Appendix II of Volumes II, III, IV, and V of the Commission's Reports.

It should be noted that the jurisdiction of the Commission is limited by the "Packers and Stockyards Act, 1921," approved Aug. 15, 1921, ch. 64, 42 Stat. 159, sec. 406 of said Act providing that "on and after the enactment of this Act and so long as it remains in effect the Federal Trade Commission shall have no power or jurisdiction so far as relating to any matter which by this Act is made subject to the jurisdiction of the Secretary [of Agriculture] except in cases in which, before the enactment of this Act, complaint has been served under sec. 5 of the Act, entitled 'An Act to create a Federal Trade Commission, to define its powers and

520 ACTS ADMINISTERED BY THE COMMISSION.

Sec. 1. CREATION AND ESTABLISHMENT OF THE COM- MISSION—Continued.

Term, seven years. 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 Chairman to be chosen by commission. shall succeed. The commission shall choose a chairman from its own membership. No commissioner shall engage Pursuit other business prohibited. in any other business, vocation, or employment. Any commissioner may be removed by the President for in- Removal by President. efficiency, neglect of duty, or malfeasance in office. A vacancy in the commission shall not impair the right of Vacancy not to impair exercise of powers by remaining commissioners. the remaining commissioners to exercise all the powers of the commission.

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

Sec. 2. SALARIES. SECRETARY. OTHER EMPLOYEES. EXPENSES OF THE COMMISSION. OFFICES.

Commissioner's salary, $10,000. 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 duties, and for other purposes,' approved Sept. 26, 1914, or under sec. 11 of the Act, entitled ' An Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes,' approved Oct. 15, 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." 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 (Congressional 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 Firms engaged in Interstate Commerce (Feb. 26, 1913, 62d Cong., 3d sess., Rept. No. 1326) ; Hearings on Interstate Trade Commission before Committee on Interstate and Foreign Commerce of the House, Jan. 30 to Feb. 16, 1914, 63d 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 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, 63d Cong., 2d sess., Rept. No. 597) and debates and speeches, among others, of Congressman Covington for (references to Congressional Record, 63d 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. 14939-14040 ; 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, 11102- 11106 (part 11), 11379-11389, 11447-11458 (part 12), 11528-11539,

FEDERAL TRADE ACT. 521

commission shall appoint a secretary, who shall receive Appointment of a salary of $5,000 a year, payable in like manner, and it secretary. Salary, $5,000.

shall have authority to employ and fix the compensation Other emof such attorneys, special experts, examiners, clerks, and ployees. Salaries fixed by Commisother employees as it may from time to time find neces- sion. sary for the proper performance of its duties and as may be from time to time appropriated for by Congress. With the exception of the secretary, a clerk to each Except for seccommissioner, the attorneys, and such special experts and retary, commissioners' clerks, examiners as the commission may from time to time find and such special experts and exnecessary for the conduct of its work, all employees of the aminers as Commission may find commission shall be a part of the classified civil service, necessary, all employees part and shall enter the service under such rules and regula- of classified service.

tions as may be prescribed by the commission and by the Civil Service Commission.

All of the expenses of the commission, including all Expenses of necessary expenses for transportation incurred by the commission allowed and paid commissioners or by their employees under their orders, on presentation of itemized apin making any investigation, or upon official business in proved vouchers. 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.

12873-12875 (part 13), 12912-12924, 12987-12992, 13045-13052, 14703- 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, 11111- 11112 (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), 13140-13148; 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 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, 63d 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.)

522 ACTS ADMINISTERED BY THE COMMISSION.

Sec. 2. SALARIES. SECRETARY. OTHER EMPLOYEES. EXPENSES OF THE COMMISSION. OFFICES—Continued.

Commission may rent suitable offices. Until otherwise provided by law. the commission may rent suitable offices for its use.

Auditing of accounts. The Auditor for the State and Other Departments shall receive and examine all accounts of expenditures of the commission.

Sec. 3. BUREAU OF CORPORATIONS. OFFICE OF THE COMMISSION. PROSECUTION OF INQUIRIES.

Bureau of Corporations absorbed by Commission. SEC. 3. That upon the organization of the commission and election of its chairman, the Bureau of Corporations 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.

Clerks, employees, records, papers, property, appropriations, transferred to Commission. All clerks and employees of the said bureau shall be 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 expended by the commission in the exercise of the powers, authority, and duties conferred on it by this Act.

Principal office in Washington, but Commission may meet elsewhere. The principal office of the commission shall be in the city of Washington, but it may meet and exercise all its powers at any other place. The commission may, by one

May prosecute any inquiry anywhere in United States. or more of its members, or by such examiners as it may designate, prosecute any inquiry necessary to its duties in any part of the United States.

Sec. 4. DEFINITIONS.

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

"Commerce." "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

FEDERAL TRADE ACT. 523

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

“Acts to regulate commerce” means the Act entitled “Acts to regu- “An Act to regulate commerce,” approved February four- late commerce.” teenth, eighteen hundred and eighty-seven, and all Acts amendatory thereof and supplementary thereto. “Antitrust acts” means the Act entitled “An Act to “Antitrust protect trade and commerce against unlawful restraints acts.” and monopolies,” approved July second, eighteen hundred and ninety;² 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.

Sec. 5. UNFAIR COMPETITION. COMPLAINTS, FIND- INGS, AND ORDERS OF COMMISSION. APPEALS.

SERVICE.³

Sec. 5. That unfair methods of competition in com- Unfair methods merce are hereby declared unlawful. unlawful. The commission is hereby empowered and directed to Commission to prevent persons, partnerships, or corporations, except prevent. Banks banks, and common carriers subject to the Acts to regu- and common carriers excepted.

late commerce, from using unfair methods of competition in commerce.

² For text of Sherman Act, see footnote on pp. 533-535. ³ 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 second paragraph of footnote on p. 519.

524 ACTS ADMINISTERED BY THE COMMISSION.

Sec. 5. UNFAIR COMPETITION. COMPLAINTS, FIND- INGS, AND ORDERS OF COMMISSION. APPEALS.

SERVICE—Continued.

Commission to Whenever the commission shall have reason to believe issue complaint when unfair that any such person, partnership, or corporation has method used and to public inter- been or is using any unfair method of competition in est. commerce, and if it shall appear to the commission that a proceeding by it in respect thereof would be to the in-

To serve same terest of the public, it shall issue and serve upon such peron respondent with notice of son, partnership, or corporation a complaint stating its hearing. charges in that respect, and containing a notice of a hearing upon a day and at a place therein fixed at least thirty days after the service of said complaint. The per-

Respondent to son, partnership, or corporation so complained of shall have right to appear and show have the right to appear at the place and time so fixed cause, etc. and show cause why an order should not be entered by the commission requiring such person, partnership, or corporation to cease and desist from the violation of the

Intervention al- law so charged in said complaint. Any person, partnerlowed on application and good ship, or corporation may make application, and upon cause. good cause shown may be allowed by the commission, to intervene and appear in said proceeding by counsel or in

Testimony to person. The testimony in any such proceeding shall be be reduced to writing and filed. reduced to writing and filed in the office of the commission. If upon such hearing the commission shall be of

If method pro- the opinion that the method of competition in question is hibited, Commission to make prohibited by this Act, it shall make a report in writing written report stating findings, in which it shall state its findings as to the facts, and shall and to issue and serve order to issue and cause to be served on such person, partnership, cease and desist on respondent. or corporation an order requiring such person, partnership, or corporation to cease and desist from using such

Modification or method of competition. Until a transcript of the record setting aside by the Commission in such hearing shall have been filed in a circuit court of of its order. appeals of the United States, as hereinafter provided, the commission may at any time, upon such notice and in such manner as it shall deem proper, modify or set aside, in whole or in part, any report or any order made or issued by it under this section.

Disobedience of If such person, partnership, or corporation fails or order. Application to Circuit neglects to obey such order of the commission while the Court of Appeals by Commission. same is in effect, the commission may apply to the circuit court of appeals of the United States, within any circuit where the method of competition in question was used or where such person, partnership, or corporation resides or carries on business, for the enforcement of its order, and shall certify and file with its applica-

FEDERAL TRADE ACT. 525

tion a transcript of the entire record in the proceeding, including all the testimony taken and the report and order of the commission. Upon such filing of the application and transcript the court shall cause notice thereof to be served upon such person, partnership, or corporation and thereupon shall have jurisdiction of the proceeding and of the question determined therein, and shall have power to make and enter upon the pleadings, testimony, and proceedings set forth in such transcript a decree affirming, modifying, or setting aside the order of the commission. The findings of the commission as to the facts, if supported by testimony, shall be conclusive. If either party shall apply to the court for leave to adduce additional evidence, and shall show to the satisfaction of the court that such additional evidence is material and that there were reasonable grounds for the failure to adduce such evidence in the proceeding before the commission, the court may order such additional evidence to be taken before the commission and to be adduced upon the hearing in such manner and upon such terms and conditions as to the court may seem proper. The commission may modify its findings as to the facts, or make new findings, by reason of the additional evidence so taken, and it shall file such modified or new findings, which, if supported by testimony, shall be conclusive, and its recommendation, if any, for the modification or setting aside of its original order, with the return of such additional evidence. The judgment and decree of the court shall be final, except that the same shall be subject to review by the Supreme Court upon certiorari as provided in section two hundred and forty of the Judicial Code.

Any party required by such order of the commission to cease and desist from using such method of competition may obtain a review of such order in said circuit court of appeals by filing in the court a written petition praying that the order of the commission be set aside. A copy of such petition shall be forthwith served upon the commission, and thereupon the commission forthwith shall certify and file in the court a transcript of the record as hereinbefore provided. Upon the filing of the transcript the court shall have the same jurisdiction to affirm, set aside, or modify the order of the commission 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.

Action by Court. Notice to respondent. Decree affirming modifying, or setting aside Commission's order.

Commission's findings. Conclusive if supported by testimony. Introduction of additional evidence, if reasonable grounds for failure to adduce theretofore.

May be taken before Commission.

Commission may make new or modified findings by reason thereof.

Judgment and decree subject to review upon certiorari, but otherwise final.

Petition by respondent to review order to cease and desist.

To be served on Commission.

Jurisdiction of Court of Appeals same as on application by Commission, and Commission's findings similarly conclusive.

526 ACTS ADMINISTERED BY THE COMMISSION.

Sec. 5. UNFAIR COMPETITION, COMPLAINTS, FIND- INGS, AND ORDERS OF COMMISSION. APPEALS.

SERVICE—Continued.

Jurisdiction of Court exclusive. The jurisdiction of the circuit court of appeals of the United States to enforce, set aside, or modify orders of the commission shall be exclusive.

Proceedings to have precedence over other cases. Such proceedings in the circuit court of appeals shall be given precedence over other cases pending therein, and shall be in every way expedited. No order of the commission or judgment of the court to enforce the same

Liability under antitrust acts not affected. shall in any wise relieve or absolve any person, partnership, or corporation from any liability under the antitrust acts.³

Service of Commission's complaints, orders, and other processes. Complaints, orders, and other processes of the commission under this section may be served by anyone duly authorized by the commission, either (a) by delivering

Personal; or a copy thereof to the person to be served, or to a member of the partnership to be served, or to the president, secretary, or other executive officer or a director of the cor-

At office or place of business; or poration to be served; or (b) by leaving a copy thereof at the principal office or place of business of such person,

By registered mail. partnership, or corporation; or (c) by registering and mailing a copy thereof addressed to such person, partnership, or corporation at his or its principal office or

Verified return by person serving, and return post-office receipt, proof of service. place of business. The verified return by the person so serving said complaint, order, or other process setting forth the manner of said service shall be proof of the same, and the return post-office receipt for said complaint, order, or other process registered and mailed as aforesaid shall be proof of the service of the same.

Sec. 6. FURTHER POWERS.⁴

To gather and compile information, and to investigate with reference to organization, business, etc., of corporations, except banks and common carriers. SEC. 6. That the commission shall also have power— (a) To gather and compile information concerning, and to investigate from time to time the organization, business, conduct, practices, and management of any corporation engaged in commerce, excepting banks and common carriers subject to the Act to regulate commerce, and its relation to other corporations and to individuals, associations, and partnerships.

³ For text of Sherman Act, see footnote on pp. 533-535. As enumerated in last paragraph of sec. 4 of this act, see p. 523. ⁴ Provisions and penalties of secs. 6, 8, 9, and 10 of this act made applicable to the jurisdiction, powers, and duties conferred and imposed upon the Secretary of Agriculture by sec. 402 of the "Packers and Stockyards Act, 1921," approved Aug. 15, 1921, ch. 64, 42 Stat. 159.

FEDERAL TRADE ACT. 527

(b) To require, by general or special orders, corpora- To require antions engaged in commerce, excepting banks, and com- nual or special mon carriers subject to the Act to regulate commerce, or reports from corporations, except any class of them, or any of them, respectively, to file banks and common carriers.

with the commission in such form as the commission may prescribe annual or special, or both annual and special, reports or answers in writing to specific questions, furnishing to the commission such information as it may require as to the organization, business, conduct, practices, management, and relation to other corporations, partnerships, and individuals of the respective corporations filing such reports or answers in writing. Such re- Such reports to ports and answers shall be made under oath, or otherwise, be under oath, or otherwise, and as the commission may prescribe, and shall be filed with filed within such reasonable period the commission within such reasonable period as the com- as commission may prescribe.

mission may prescribe, unless additional time be granted in any case by the commission.

(c) Whenever a final decree has been entered against To investigate, any defendant corporation in any suit brought by the either on own initiative or ap- United States to prevent and restrain any violation of the plication of Attorney General, antitrust Acts,⁵ to make investigation, upon its own initi- observance of final decree enative, of the manner in which the decree has been or is tered under antitrust acts.

being carried out, and upon the application of the Attorney General it shall be its duty to make such investigation. It shall transmit to the Attorney General a report To transmit embodying its findings and recommendations as a result findings and recommendations to of any such investigation, and the report shall be made Attorney General.

public in the discretion of the commission. (d) Upon the direction of the President or either To investigate, House of Congress to investigate and report the facts re- on direction President or lating to any alleged violations of the antitrust Acts ⁵ by either House, alleged violations any corporation. of antitrust acts.

(e) Upon the application of the Attorney General to To investigate investigate and make recommendations for the readjust- and make recommendations, on ment of the business of any corporation alleged to be vio- application of Attorney Genlating the antitrust Acts ⁵ in order that the corporation eral, for readjustment of busimay thereafter maintain its organization, management, ness of alleged violator of antiand conduct of business in accordance with law. trust acts. (f) To make public from time to time such portions of To make pubthe information obtained by it hereunder, except trade lic, as it deems expedient, porsecrets and names of customers, as it shall deem expedient tions of information obtained.

⁵ For text of Sherman Act, see footnote on pp. 533-535. As enumerated in last paragraph of sec. 4 of this act, see p. 523. 36727°—25—VOL 6——35

528 ACTS ADMINISTERED BY THE COMMISSION.

Sec. 6. FURTHER POWERS—Continued.

To make reports to Congress, together with recommendations for new legislation. in the public interest; and to make annual and special reports to the Congress and to submit therewith recommendations for additional legislation; and to provide for To provide for publication of its reports and decisions. the publication of its reports and decisions in such form and manner as may be best adapted for public information and use. To classify corporations, and make rules and regulations incidental to administration of Act. (g) From time to time to classify corporations and to make rules and regulations for the purpose of carrying out the provisions of this Act. To investigate foreign trade conditions involving foreign trade of United States, reporting to Congress with recommendations deemed advisable. (h) To investigate, from time to time, trade conditions in and with foreign countries where associations, combinations, or practices of manufacturers, merchants, or traders, or other conditions, may affect the foreign trade of the United States, and to report to Congress thereon, with such recommendations as it deems advisable.

Sec. 7. SUITS IN EQUITY UNDER ANTITRUST ACTS. COMMISSION AS MASTER IN CHANCERY.

Court may refer suit to Commission.

SEC. 7. That in any suit in equity brought by or under the direction of the Attorney General as provided in the antitrust Acts,⁶ the court may, upon the conclusion of the testimony therein, if it shall be then of opinion that the complainant is entitled to relief, refer said suit to the To ascertain and report an appropriate form of decree. commission, as a master in chancery, to ascertain and report an appropriate form of decree therein. The com- Commission to proceed on notice to parties and as prescribed by court. Exceptions. Proceedings as in other equity causes. mission shall proceed upon such notice to the parties and under such rules of procedure as the court may prescribe, and upon the coming in of such report such exceptions may be filed and such proceedings had in relation thereto as upon the report of a master in other equity causes, but Court may adopt or reject report in whole or in part. the court may adopt or reject such report, in whole or in part, and enter such decree as the nature of the case may in its judgment require.

Sec. 8. COOPERATION OF OTHER DEPARTMENTS AND BUREAUS.⁷

To furnish, when directed by President, records, papers, and information, and to detail officials and employees. SEC. 8. That the several departments and bureaus of the Government when directed by the President shall furnish the commission, upon its request, all records, papers, and information in their possession relating to any corporation subject to any of the provisions of this Act, and

⁶ For text of Sherman Act, see footnote on pp. 533-535. As enumerated in last paragraph of sec. 4 of this act, see p. 523. ⁷ Provisions and penalties of secs. 6, 8, 9, and 10 of this Act made applicable to the jurisdiction, powers, and duties conferred and imposed upon the Secretary of Agriculture by sec. 402 of the "Packers and Stockyards Act, 1921," approved Aug. 15, 1921, ch. 64, 42 Stat. 159.

FEDERAL TRADE ACT. 529

shall detail from time to time such officials and employees to the commission as he may direct.

Sec. 9. EVIDENCE. WITNESSES. TESTIMONY. MAN- DAMUS TO ENFORCE OBEDIENCE TO ACT."a

SEC. 9. That for the purposes of this Act the commis- Commission to sion, or its duly authorized agent or agents, shall at all have access to reasonable times have access to, for the purpose of ex- documentary evidence and right amination, and the right to copy any documentary evi- to copy same. dence of any corporation being investigated or proceeded against; and the commission shall have power to require May require atby subpœna the attendance and testimony of witnesses and tendance of witnesses and prothe production of all such documentary evidence relating duction of evidence.

to any matter under investigation. Any members of the commission may sign subpœnas, and members and ex- Subpœnas, aminers of the commission may administer oaths and af- oaths, affirmations, examinafirmations, examine witnesses, and receive evidence. tion of witnesses. Reception of evidence.

Such attendance of witnesses, and the production of Witnesses and such documentary evidence, may be required from any evidence may be required from place in the United States, at any designated place of any place in United States.

hearing. And in case of disobedience to a subpœna the Disobedience commission may invoke the aid of any court of the United to a subpœna. Commission may States in requiring the attendance and testimony of wit- invoke aid of any United States nesses and the production of documentary evidence. court.

Any of the district courts of the United States within In case of conthe jurisdiction of which such inquiry is carried on may, tumacy or disobedience of subin case of contumacy or refusal to obey a subpœna issued pœna, any district court in to any corporation or other person, issue an order requir- jurisdiction involved may order ing such corporation or other person to appear before the obedience. commission, or to produce documentary evidence if so ordered, or to give evidence touching the matter in question; and any failure to obey such order of the court may Disobedience thereafter punbe punished by such court as a contempt thereof. ishable as contempt.

Upon the application of the Attorney General of the Mandamus from United States, at the request of the commission, the dis- District Courts on application of trict courts of the United States shall have jurisdiction Attorney General to enforce comto issue writs of mandamus commanding any person or pliance with Act. corporation to comply with the provisions of this Act or any order of the commission made in pursuance thereof.

The commission may order testimony to be taken by Commission deposition in any proceeding or investigation pending may order depositions at any under this Act at any stage of such proceeding or investi- stage.

"a Provisions and penalties of secs. 6, 8, 9, and 10 of this act made applicable to the jurisdiction, powers, and duties conferred and imposed upon the Secretary of Agriculture by sec. 402 of the " Packers and Stockyards Act, 1921," approved Aug. 15, 1921, ch. 64, 42 Stat. 159.

530 ACTS ADMINISTERED BY THE COMMISSION.

Sec. 9. EVIDENCE. WITNESSES. TESTIMONY. MAN- DAMUS TO ENFORCE OBEDIENCE TO ACT—Continued.

May be taken before person designated by Commission.

gation. Such depositions may be taken before any person designated by the commission and having power to administer oaths. Such testimony shall be reduced to writ-

Testimony to be reduced to writing, etc.

ing by the person taking the deposition, or under his direction, and shall then be subscribed by the deponent.

Appearance, testimony, and production of evidence may be compelled as in proceeding before Commission.

Any person may be compelled to appear and depose and to produce documentary evidence in the same manner as witnesses may be compelled to appear and testify and produce documentary evidence before the commission as hereinbefore provided.

Witness fees, same as paid for like services in United States courts.

Witnesses summoned before the commission shall be paid the same fees and mileage that are paid witnesses in the courts of the United States, and witnesses whose depositions are taken and the persons taking the same shall severally be entitled to the same fees as are paid for like services in the courts of the United States.

Incriminating testimony or evidence no excuse for failure to testify or produce.

No person shall be excused from attending and testifying or from producing documentary evidence before the commission or in obedience to the subpœna of the commission on the ground or for the reason that the testimony or evidence, documentary or otherwise, required of him may tend to criminate him or subject him to a pen-

But natural person shall not be prosecuted with respect to matters involved.

alty or forfeiture. But no natural person shall be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which he may testify, or produce evidence, documentary or otherwise, before the commission in obedience to a subpœna issued by it: Provided, That no natural person so

Perjury excepted.

testifying shall be exempt from prosecution and punishment for perjury committed in so testifying.

Sec. 10. PENALTIES.*

Failure to testify or to produce documentary evidence.

Offender subject to fine or imprisonment, or both.

SEC. 10. That any person who shall neglect or refuse to attend and testify, or to answer any lawful inquiry, or to produce documentary evidence, if in his power to do so, in obedience to the subpœna or lawful requirement of the commission, shall be guilty of an offense and upon conviction thereof by a court of competent jurisdiction shall be punished by a fine of not less than $1,000 nor more than $5,000, or by imprisonment for not more than one year, or by both such fine and imprisonment.

* Provisions and penalties of secs. 6, 8, 9, and 10 of this Act made applicable to the jurisdiction, powers, and duties conferred and imposed upon the Secretary of Agriculture by sec. 402 of the "Packers and Stockyards Act, 1921," approved Aug. 15, 1921, ch. 64, 42 Stat. 159.

FEDERAL TRADE ACT. 531

Any person who shall willfully make, or cause to be False entries, made, any false entry or statement of fact in any report statements, or tampering with required to be made under this Act, or who shall will- accounts, records, or other docufully make, or cause to be made, any false entry in any mentary evidence, or willful failure account, record, or memorandum kept by any corpora- to make entries, etc., or tion subject to this Act, or who shall willfully neglect or fail to make, or to cause to be made, full, true, and correct entries in such accounts, records, or memoranda of all facts and transactions appertaining to the business of such corporation, or who shall willfully remove out of the jurisdiction of the United States, or willfully mutilate, alter, or by any other means falsify any documentary evidence of such corporation, or who shall willfully Willful refusal refuse to submit to the commission or to any of its au- to submit documentary evidence thorized agents, for the purpose of inspection and taking to Commission. copies, any documentary evidence of such corporation in his possession or within his control, shall be deemed guilty of an offense against the United States, and shall be subject, upon conviction in any court of the United Offender sub- States of competent jurisdiction, to a fine of not less than ject to fine or imprisonment, or $1,000 nor more than $5,000, or to imprisonment for a both. term of not more than three years, or to both such fine and imprisonment.

If any corporation required by this Act to file any an- Failure of cornual or special report shall fail so to do within the time poration to file required report.

fixed by the commission for filing the same, and such failure shall continue for thirty days after notice of such default, the corporation shall forfeit to the United States Forfeiture for the sum of $100 for each and every day of the continu- each day's continued failure.

ance 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 Recoverable in brought in the district where the corporation has its civil suit in district where corprincipal office or in any district in which it shall do poration has principal office, business. It shall be the duty of the various district or does business. attorneys, under the direction of the Attorney General Various district attorneys to of the United States, to prosecute for the recovery of for- prosecute for recovery.

feitures. The costs and expenses of such prosecution shall be paid out of the appropriation for the expenses of the courts of the United States.

Any officer or employee of the commission who shall Unauthorized make public any information obtained by the commission divulgence of information by emwithout its authority, unless directed by a court, shall be ployee of Commission punishdeemed guilty of a misdemeanor, and, upon conviction able by fine or imprisonment or thereof, shall be punished by a fine not exceeding $5,000, both.

532 ACTS ADMINISTERED BY THE COMMISSION.

Sec. 10. PENALTIES—Continued.

or by imprisonment not exceeding one year, or by fine and imprisonment, in the discretion of the court.

Sec. 11. ANTITRUST ACTS AND ACT TO REGULATE COMMERCE.

Not affected by SEC. 11. Nothing contained in this Act shall be conthis act. strued to prevent or interfere with the enforcement of the provisions of the antitrust Acts⁹ or the Acts to regulate commerce, nor shall anything contained in the Act be construed to alter, modify, or repeal the said antitrust Acts or the Acts to regulate commerce or any part or parts thereof.

Approved, September 26, 1914.

THE CLAYTON ACT.¹ [Approved Oct. 15, 1914.] [PUBLIC—No. 212—63D CONGRESS.] [H. R. 15657.] AN ACT To supplement existing laws against unlawful restraints and monopolies, 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- "Antitrust sembled, That "antitrust laws," as used herein, includes laws." the Act entitled "An Act to protect trade and commerce against unlawful restraints and monopolies," approved

⁹ For text of Sherman Act, see footnote on pp. 533-535. As enumerated in last paragraph of sec. 4 of this act, see p. 523. ¹ This act has been annotated up to July 1, 1921, and may be found, so annotated, in Volume III of the Commission's Reports. Subsequent reported decisions for the period covered by this and the preceding volumes (July 1, 1921, to Nov. 4, 1923) and bearing on the provisions of this act affecting the Commission are: Canfield Oil Co. v. Federal Trade Commission, 274 Fed. 571 (see opinion set forth in Appendix II of Volume IV at p. 542 et seq.); Sinclair Refining Co. v. Federal Trade Commission, 276 Fed. 686 (see opinion set forth in Appendix II of Volume IV at p. 552 et seq.); Auto Acetylene Light Co. v. Prest-O-Lite Co., Inc., 276 Fed. 537; Standard Fashion Co. v. Magrane-Houston Co., 258 U. S. 346, 42 Sup. Ct. 260, and United Shoe Machinery Corporation v. United States, 258 U. S. 451, 42 Sup. Ct. 363; Aluminum Co. of America v. Federal Trade Commission, 284 Fed. 401 (see opinion set forth in Appendix II of Volume V at p. 529 et seq.); Standard Oil of N. J. et al. v. Federal Trade Commission, 282 Fed. 81 (see opinion set forth in Appendix II of Volume V at p. 542 et seq.); Federal Trade Commission v. Curtis Publishing Co., 260 U. S. 568 (see opinion set forth in Appendix II of Volume V at p. 599 et seq.); and Mennen Co. v. Federal Trade Commission, 288 Fed. 774 (see opinion and decision set forth in Appendix II of this volume at p. 579 et seq.); Federal Trade Commission v. Sinclair Refining Co. et al., 261 U. S. 463 (see opinion and decision set forth in Appendix II of this volume at p. 587 et seq.); and B. S. Pearsall Butter Co., 292 Fed. 720 (see opinion and decision set forth in Appendix II of this volume at p. 605 et seq.).

It should be noted in connection with this law— That the so-called Shipping Board Act (sec. 15, ch. 451, 64th Cong., 1st sess.) provides that "every agreement, modification, or cancellation lawful under this section shall be excepted from the provisions of the Act approved July 2, 1890, entitled 'An Act to protect trade and commerce against unlawful restraints and monopolies,' and amendments and acts supplementary thereto * * *";

That the jurisdiction of the Commission is limited by the "Packers and Stockyards Act, 1921," approved Aug. 15, 1921, ch. 64, 42 Stat. 159, sec.

CLAYTON ACT. 533

July second, eighteen hundred and ninety²; 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," of August twenty-seventh, eighteen hundred and ninety-four; an 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,

406 of said Act providing that "on and after the enactment of this Act and so long as it remains in effect the Federal Trade Commission shall have no power or jurisdiction so far as relating to any matter which by this Act is made subject to the jurisdiction of the Secretary [of Agriculture], except in cases in which, before the enactment of this Act, complaint has been served under sec. 5 of the Act entitled 'An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes,' approved Sept. 26, 1914, or under sec. 11 of the Act entitled 'An Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes,' approved October 15, 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"; and That by the last paragraph of sec. 407 of the Transportation Act, approved Feb. 28, 1920, ch. 91, 41 Stat. 456 at 482, the provisions of the Clayton Act and of all other restraints or prohibitions, State or Federal, are made inapplicable to carriers, in so far as the provisions of the section in question, which relate to division of traffic, acquisition by a carrier of control of other carriers and consolidation of railroad systems or railroads, are concerned.

That Public No. 146, Sixty-seventh Congress, approved Feb. 18, 1922 (42 Stat. 388), permits, subject to the provisions set forth, associations of producers of agricultural products for the purpose of "preparing for market, handling, and marketing in interstate and foreign commerce such products * * *." (See also in this general connection the limitation imposed in connection with the appropriations for enforcing the Sherman Act as set forth in the following note.)

² The Sherman Act (26 Stat. 209), which, as a matter of convenience, is printed herewith. While the Act itself has not been amended, appropriations for the fiscal years ending June 30, 1920, 1921, 1922, and 1923 (Sundry Civil Appropriation Act, July 19, 1919, ch. 24, 41 Stat. 208, Sundry Civil Appropriation Act, June 5, 1920, ch. 235, 41 Stat. 922, Sundry Civil Appropriation Act, Mar. 4, 1921, ch. 161, 41 Stat. 1411. and State, Justice, and Judiciary Appropriation Acts, June 1, 1922, ch. 204, sess. II, 42 Stat. 613, and Jan. 3, 1923, 42 Stat. 1080, respectively), were made contingent upon no part of the moneys being— "Spent in the prosecution of any organization or individual for entering into any combination or agreement having in view the increasing of wages, shortening of hours or bettering the conditions of labor, or for any act done in furtherance thereof, not in itself unlawful: Provided further, That no part of this appropriation shall be expended for the prosecution of producers of farm products and associations of farmers who cooperate and organize in an effort to and for the purpose to obtain and maintain a fair and reasonable price for their products." The act, omitting the usual formal "Be it enacted," etc., follows:

CONTRACTS, COMBINATIONS, ETC., IN RESTRAINT OF TRADE ILLEGAL.

SECTION 1. Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is hereby declared to be illegal. Every person who shall make any such contract or engage in any such combination or conspiracy, shall be deemed guilty of a misdemeanor, and, on conviction thereof, shall be punished by fine not exceeding five thousand

534 ACTS ADMINISTERED BY THE COMMISSION.

Sec. 1. DEFINITIONS—Continued.

and for other purposes,'" approved February twelfth, nineteen hundred and thirteen; and also this Act. "Commerce." "Commerce," as used herein, means trade or commerce among the several States and with foreign nations, or between the District of Columbia or any Territory of the United States and any State, Territory, or foreign nation, or between any insular possessions or other places under the jurisdiction of the United States, or between any such possession or place and any State or Territory of the United States or the District of Columbia or any foreign nation, or within the District of Columbia or any Territory or any insular possession or other place under the jurisdiction of the United States: Provided, That nothing in this Act contained shall apply to the Philippine Islands.

"Person or The word "person" or "persons" wherever used in persons." this Act shall be deemed to include corporations and associations existing under or authorized by the laws of dollars, or by imprisonment not exceeding one year, or by both said punishments, in the discretion of the court.

PERSON MONOPOLIZING TRADE GUILTY OF MISDEMEANOR—PENALTY.

SEC. 2. Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a misdemeanor, and, on conviction thereof, shall be punished by fine not exceeding five thousand dollars, or by imprisonment not exceeding one year, or by both said punishments, in the discretion of the court.

COMBINATIONS IN TERRITORIES OR DISTRICT OF COLUMBIA ILLEGAL—PENALTY.

SEC. 3. Every contract, combination in form of trust or otherwise, or conspiracy, in restraint of trade or commerce in any Territory of the United States or of the District of Columbia, or in restraint of trade or commerce between any such Territory and another, or between any such Territory or Territories and any State or States or the District of Columbia, or with foreign nations, or between the District of Columbia and any State or States or foreign nations, is hereby declared illegal. Every person who shall make any such contract or engage in any such combination or conspiracy, shall be deemed guilty of a misdemeanor, and, on conviction thereof, shall be punished by fine not exceeding five thousand dollars, or by imprisonment not exceeding one year, or by both said punishments, in the discretion of the court.

ENFORCEMENT.

SEC. 4. The several circuit courts of the United States are hereby invested with jurisdiction to prevent and restrain violations of this act, and it shall be the duty of the several district attorneys of the United States, in their respective districts, under the direction of the Attorney General, to institute proceedings in equity to prevent and restrain such violations. Such proceedings may be by way of petition setting forth the case and praying that such violation shall be enjoined or otherwise prohibited. When the parties complained of shall have been duly notified of such

CLAYTON ACT. 535

either the United States, the laws of any of the Territories, the laws of any State, or the laws of any foreign country.

Sec. 2. PRICE DISCRIMINATION.⁸

SEC. 2. That it shall be unlawful for any person en- Unlawful where gaged in commerce, in the course of such commerce, either effect may be to directly or indirectly to discriminate in price between substantially different purchasers of commodities, which commodities lessen competition or tend to are sold for use, consumption, or resale within the United create a monop- States or any Territory thereof or the District of Colum- oly. bia or any insular possession or other place under the jurisdiction of the United States, where the effect of such discrimination may be to substantially lessen competition or tend to create a monopoly in any line of com-

petition the court shall proceed, as soon as may be, to the hearing and determination of the case; and pending such petition and before final decree, the court may at any time make such temporary restraining order or prohibition as shall be deemed just in the premises.

ADDITIONAL PARTIES.

SEC. 5. Whenever it shall appear to the court before which any proceeding under section four of this act may be pending, that the ends of justice require that other parties should be brought before the court, the court may cause them to be summoned, whether they reside in the district in which the court is held or not; and subpœnas to that end may be served in any district by the marshal thereof.

FORFEITURE OF PROPERTY.

SEC. 6. Any property owned under any contract or by any combination, or pursuant to any conspiracy (and being the subject thereof) mentioned in section one of this act, and being in the course of transportation from one State to another, or to a foreign country, shall be forfeited to the United States, and may be seized and condemned by like proceedings as those provided by law for the forfeiture, seizure, and condemnation of property imported into the United States contrary to law.

SUITS—RECOVERY.

SEC. 7. Any person who shall be injured in his business or property by any other person or corporation by reason of anything forbidden or declared to be unlawful by this act, may sue therefor in any circuit court of the United States, in the district in which the defendant resides or is found, without respect to the amount in controversy, and shall recover threefold the damages by him sustained, and the costs of suit, including a reasonable attorney's fee.

“PERSON” OR “PERSONS” DEFINED.

SEC. 8. That the word “person,” or “persons,” wherever used in this act shall be deemed to include corporations and associations existing under or authorized by the laws of either the United States, the laws of any of the Territories, the laws of any State or the laws of any foreign country. ⁸ On provisions of the Shipping Board Act, Packers and Stockyards Act, 1921, and Transportation Act, limiting the scope of the Clayton Act in certain cases, see footnote on p. 532.

536 ACTS ADMINISTERED BY THE COMMISSION.

Sec. 2. PRICE DISCRIMINATION—Continued.

But permissible merce: Provided, That nothing herein contained shall if based on dif- prevent discrimination in price between purchasers of ference in grade, commodities on account of differences in the grade, quality, or quan- quality, or quantity of the commodity sold, or that makes tity, or in selling or transportation only due allowance for difference in the cost of selling or cost, or if made transportation, or discrimination in price in the same or to meet competi- different communities made in good faith to meet comtion, and

Vendor may se- petition: And provided further, That nothing herein conlect own custom- tained shall prevent persons engaged in selling goods, ers if not in re- wares, or merchandise in commerce from selecting their straint of trade. own customers in bona fide transactions and not in restraint of trade.

Sec. 3. TYING OR EXCLUSIVE LEASES, SALES OR CON- TRACTS.⁴

Unlawful where SEC. 3. That it shall be unlawful for any person eneffect may be to gaged in commerce, in the course of such commerce, to substantially lessen competi- lease or make a sale or contract for sale of goods, wares, tion. merchandise, machinery, supplies or other commodities, whether patented or unpatented, for use, consumption or resale within the United States or any Territory thereof or the District of Columbia or any insular possession or other place under the jurisdiction of the United States, or fix a price charged therefor, or discount from, or rebate upon, such price, on the condition, agreement or understanding that the lessee or purchaser thereof shall not use or deal in the goods, wares, merchandise, machinery, supplies or other commodities of a competitor or competitors of the lessor or seller, where the effect of such lease, sale, or contract for sale or such condition, agreement or understanding may be to substantially lessen competition or tend to create a monopoly in any line of commerce.

Sec. 4. VIOLATION OF ANTITRUST LAWS—DAMAGES TO PERSON INJURED.

May sue in any SEC. 4. That any person who shall be injured in his busi- United States dis- ness or property by reason of anything forbidden in the trict court, and recover threefold antitrust laws⁵ may sue therefor in any district court damages, includ- of the United States in the district in which the defending cost of suit. ant resides or is found or has an agent, without respect

⁴ On provisions of the Shipping Board Act, Packers and Stockyards Act, 1921, and Transportation Act, limiting the scope of the Clayton Act in certain cases, see footnote on p. 532.

⁵ For text of Sherman Act, see footnote on pp. 533-535. As enumerated in Clayton Act, see first paragraph thereof on p. 532.

CLAYTON ACT. . 537

to the amount in controversy, and shall recover threefold the damages by him sustained, and the cost of suit, including a reasonable attorney's fee.

Sec. 5. PROCEEDINGS BY OR IN BEHALF OF UNITED STATES UNDER ANTITRUST LAWS. FINAL JUDGMENTS OR DECREES THEREIN AS EVIDENCE IN PRIVATE LITI- GATION. INSTITUTION THEREOF AS SUSPENDING STATUTE OF LIMITATIONS.

SEC. 5. That a final judgment or decree hereafter ren- Prima facie evidered in any criminal prosecution or in any suit or pro- dence against ceeding in equity brought by or on behalf of the United same defendant States under the antitrust ª laws to the effect that a de- in private litigafendant has violated said laws shall be prima facie evi- tion. dence against such defendant in any suit or proceeding brought by any other party against such defendant under said laws as to all matters respecting which said judgment or decree would be an estoppel as between the parties thereto: Provided, This section shall not apply to Consent judgconsent judgments or decrees entered before any testi- ments or decrees mony has been taken: Provided further, This section shall excepted. not apply to consent judgments or decrees rendered in criminal proceedings or suits in equity, now pending, in which the taking of testimony has been commenced but has not been concluded, provided such judgments or de crees are rendered before any further testimony is taken. Whenever any suit or proceeding in equity or criminal Running of prosecution is instituted by the United States to prevent, statute of limitarestrain or punish violations of any of the antitrust laws, tions with rethe running of the statute of limitations in respect of spect to private each and every private right of action arising under said rights suspended laws and based in whole or in part on any matter com- pending proceedplained of in said suit or proceeding shall be suspended ing by the United during the pendency thereof. States under antitrust laws.

Sec. 6. LABOR OF HUMAN BEINGS NOT A COMMODITY OR ARTICLE OF COMMERCE.

SEC. 6. That the labor of a human being is not a com- Labor, agriculmodity or article of commerce. Nothing contained in the tural, or hortiantitrust laws ª shall be construed to forbid the existence cultural organiand operation of labor, agricultural, or horticultural or- zations and their ganizations, instituted for the purposes of mutual help, members, organand not having capital stock or conducted for profit, or ized for mutual to forbid or restrain individual members of such organi- help and without zations from lawfully carrying out the legitimate objects capital stock, not affected by antitrust laws with respect to their legitimate objects.

ª For text of Sherman Act, see footnote on pp. 533-535. As enumerated in Clayton Act, see first paragraph thereof on p. 532.

538 ACTS ADMINISTERED BY THE COMMISSION.

Sec. 6. LABOR OF HUMAN BEINGS NOT A COMMODITY OR ARTICLE OF COMMERCE—Continued. thereof; nor shall such organizations, or the members thereof, be held or construed to be illegal combinations or conspiracies in restraint of trade, under the antitrust laws.

Sec. 7. ACQUISITION BY CORPORATION OF STOCK OR OTHER SHARE CAPITAL OF OTHER CORPORATION OR CORPORATIONS.¹

Of other corpo- SEC. 7. That no corporation engaged in commerce shall ration. Prohib- acquire, directly or indirectly, the whole or any part of ited where effect may be to sub- the stock or other share capital of another corporation enstantially lessen competition, re- gaged also in commerce, where the effect of such acquisistrain commerce, or tend to create tion may be to substantially lessen competition between a monopoly. the corporation whose stock is so acquired and the corporation making the acquisition, or to restrain such commerce in any section or community, or tend to create a monopoly of any line of commerce.

Of two or more No corporation shall acquire, directly or indirectly, the other corpora- whole or any part of the stock or other share capital of tions. Prohibited where effect two or more corporations engaged in commerce where may be to substantially lessen the effect of such acquisition, or the use of such stock by competition, restrain commerce, the voting or granting of proxies or otherwise, may be or tend to create a monopoly. to substantially lessen competition between such corporations, or any of them, whose stock or other share capital is so acquired, or to restrain such commerce in any section or community, or tend to create a monopoly of any line of commerce.

Purchase solely This section shall not apply to corporations purchasfor investment ing such stock solely for investment and not using the excepted. same by voting or otherwise to bring about, or in attempting to bring about, the substantial lessening of competition. Nor shall anything contained in this section prevent a corporation engaged in commerce from causing the Formation of formation of subsidiary corporations for the actual subsidiary corpo- carrying on of their immediate lawful business, or the rations for immediate lawful natural and legitimate branches or extensions thereof, or business also excepted. from owning and holding all or a part of the stock of such subsidiary corporations, when the effect of such formation is not to substantially lessen competition.

¹On provisions of the Shipping Board Act, Packers and Stockyards Act, 1921, and Transportation Act, limiting the scope of the Clayton Act in certain cases, see footnote on p. 532. It should be noted also that corporations for export trade are excepted from the provisions of this section. (See p. 556, sec. 2.)

CLAYTON ACT. 539

Nor shall anything herein contained be construed to Common carprohibit any common carrier subject to the laws to regu- with reference to late commerce from aiding in the construction of branch or tap lines where no branches or short lines so located as to become feeders to substantial competition.

the main line of the company so aiding in such construction or from acquiring or owning all or any part of the stock of such branch lines, nor to prevent any such common carrier from acquiring and owning all or any part of the stock of a branch or short line constructed by an independent company where there is no substantial competition between the company owning the branch line so constructed and the company owning the main line acquiring the property or an interest therein, nor to prevent such common carrier from extending any of its lines through the medium of the acquisition of stock or otherwise of any other such common carrier where there is no substantial competition between the company extending its lines and the company whose stock, property, or an interest therein is so acquired.

Nothing contained in this section shall be held to affect Existing rights or impair any right heretofore legally acquired: Pro- heretofore lawfully acquired vided, That nothing in this section shall be held or con- not affected. strued to authorize or make lawful anything heretofore prohibited or made illegal by the antitrust laws,⁸ nor to exempt any person from the penal provisions thereof or the civil remedies therein provided.

Sec. 8. DIRECTORS, OFFICERS, OR EMPLOYEES OF BANKS, BANKING ASSOCIATIONS, OR TRUST COMPA- NIES OPERATING UNDER LAWS OF UNITED STATES AND DIRECTORS OF OTHER CORPORATIONS.⁹

SEC. 8. That from and after two years from the date Not to serve of the approval of this Act no person shall at the same more than one bank, banking astime be a director or other officer or employee of more sociation, or trust company if dethan one bank, banking association or trust company, posits, capital, surplus, and unorganized or operating under the laws of the United divided profits aggregate over States, either of which has deposits, capital, surplus, and $5,000,000. undivided profits aggregating more than $5,000,000; and no private banker or person who is a director in any bank

⁸ For text of Sherman Act, see footnote on pp. 533-535. As enumerated in Clayton Act, see first paragraph thereof on p. 532. ⁹ By the last paragraph of the Act of Sept. 7, 1916, amending the Federal Reserve Act, ch. 461, 39 Stat. 752 at 758, it is provided that the provisions of sec. 8 shall not apply to "A director or other officer, agent or employee of any member bank" who may, "with the approval of the Federal Reserve Board be a director or other officer, agent or employee of any" bank or corporation, "chartered or incorporated under the laws of the United States or of any State thereof, and principally

540 ACTS ADMINISTERED BY THE COMMISSION.

Sec. 8. DIRECTORS, OFFICERS, OR EMPLOYEES OF BANKS, BANKING ASSOCIATIONS, OR TRUST COMPA- NIES OPERATING UNDER LAWS OF UNITED STATES AND DIRECTORS OF OTHER CORPORATIONS—Contd.

or trust company, organized and operating under the laws of a State, having deposits, capital, surplus, and undivided profits aggregating more than $5,000,000, shall be eligible to be a director in any bank or banking association organized or operating under the laws of the How eligibility United States. The eligibility of a director, officer, or determined. employee under the foregoing provisions shall be determined by the average amount of deposits, capital, surplus, and undivided profits as shown in the official statements of such bank, banking association, or trust company filed as provided by law during the fiscal year next preceding the date set for the annual election of directors, and when a director, officer, or employee has been elected or selected in accordance with the provisions of this Act it shall be lawful for him to continue as such for one year thereafter under said election or employment. Not to serve No bank, banking association or trust company, organmore than one ized or operating under the laws of the United States, bank, banking association, or trust company located in city or incor- in any city or incorporated town or village of more than porated town or village of more two hundred thousand inhabitants, as shown by the last than 200,000 in- preceding decennial census of the United States, shall habitants. have as a director or other officer or employee any private banker or any director or other officer or employee of any other bank, banking association or trust company located Savings banks in the same place: Provided, That nothing in this section without capital (share) stock ex- shall apply to mutual savings banks not having a capital cepted. stock represented by shares: Provided further, That a Where entire director or other officer or employee of such bank, banking stock of one bank, etc., owned association, or trust company may be a director or other by stockholders of other, also ex- officer or employee of not more than one other bank or cepted. trust company organized under the laws of the United States or any State where the entire capital stock of one is owned by stockholders in the other: And provided further, That nothing contained in this section shall forbid _____________________________________________________________________ engaged in international or foreign banking, or banking in a dependency or insular possession of the United States," in the capital stock of which such member bank may have invested under the conditions and circumstances set forth in the Act.

On provisions of the Shipping Board Act, Packers and Stockyards Act, 1921, and Transportation Act, limiting the scope of the Clayton Act in certain cases, see footnote on p. 532.

CLAYTON ACT. 541

a director of class A of a Federal reserve bank, as defined Class A director in the Federal Reserve Act from being an officer or of Federal reserve bank excepted, director or both an officer and director in one member and bank: And provided further, That nothing in this Act Private banker shall prohibit any private banker or any officer, director, or officer, etc., of member bank, or or employee of any member bank or class A director of class A director a Federal reserve bank, who shall first procure the consent may serve, with consent of Fedof the Federal Reserve Board, which board is hereby au- eral Reserve Board, not more thorized, at its discretion, to grant, withhold, or revoke than two other banks, etc., where such consent, from being an officer, director, or employee no substantial competition.

of not more than two other banks, banking associations, or trust companies, whether organized under the laws of the United States or any State, if such other bank, banking association, or trust company is not in substantial competition with such banker or member bank. The consent of the Federal Reserve Board may be pro- Consent may be cured before the person applying therefor has been secured before applicant elected elected as a class A director of a Federal reserve bank or director. as a director of any member bank.¹⁰ That from and after two years from the date of the Not to serve approval of this Act no person at the same time shall be two or more presently or previa director in any two or more corporations, any one of ously competing corporations if which has capital, surplus, and undivided profits aggre- capital, surplus, and undivided gating more than $1,000,000, engaged in whole or in part profits aggregate more than $1,in commerce, other than banks, banking associations, 000,000, and elimination of trust companies and common carriers subject to the Act competition by agreement would to regulate commerce, approved February fourth, violate antitrust laws.

eighteen hundred and eighty-seven, if such corporations are or shall have been theretofore, by virtue of their business and location of operation, competitors, so that the elimination of competition by agreement between them would constitute a violation of any of the provisions of any of the antitrust laws.¹¹ The eligibility of a director How eligibility under the foregoing provision shall be determined by the determined. aggregate amount of the capital, surplus, and undivided profits, exclusive of dividends declared but not paid to stockholders, at the end of the fiscal year of said corporation next preceding the election of directors, and when a director has been elected in accordance with the provisions of this Act it shall be lawful for him to continue as such for one year thereafter.

¹⁰ The part of the section immediately preceding beginning with, “And provided further, That nothing in this Act” to this point, amendments made by act May 15, 1916, ch. 120, and act May 26, 1920, ch. 200. ¹¹ For text of Sherman Act, see footnote on pp. 533-535. As enumerated in Clayton Act, see first paragraph thereof on p. 532.

ACTS ADMINISTERED BY THE COMMISSION.

Sec. 8. DIRECTORS, OFFICERS, OR EMPLOYEES OF BANKS, BANKING ASSOCIATIONS, OR TRUST COMPANIES OPERATING UNDER LAWS OF UNITED STATES AND DIRECTORS OF OTHER CORPORATIONS—Contd.

Eligibility at time of election or selection not changed for one year.

When any person elected or chosen as a director or officer or selected as an employee of any bank or other corporation subject to the provisions of this Act is eligible at the time of his election or selection to act for such bank or other corporation in such capacity his eligibility to act in such capacity shall not be affected and he shall not become or be deemed amenable to any of the provisions hereof by reason of any change in the affairs of such bank or other corporation from whatsoever cause, whether specifically excepted by any of the provisions hereof or not, until the expiration of one year from the date of his election or employment.

Sec. 9. WILLFUL MISAPPLICATION, EMBEZZLEMENT, ETC., OF MONEYS, FUNDS, ETC., OF COMMON CARRIER A FELONY.

SEC. 9. Every president, director, officer or manager of any firm, association or corporation engaged in commerce as a common carrier, who embezzles, steals, abstracts or willfully misapplies, or willfully permits to be misapplied, any of the moneys, funds, credits, securities, property or assets of such firm, association or corporation, arising or accruing from, or used in, such commerce, in whole or in part, or willfully or knowingly converts the same to his own use or to the use of another, shall be deemed guilty of a felony and upon conviction shall be

Penalty, fine, or imprisonment, or both.

fined not less than $500 or confined in the penitentiary not less than one year nor more than ten years, or both, in the discretion of the court.

May prosecute in district court of United States for district where offense committed.

Prosecutions hereunder may be in the district court of the United States for the district wherein the offense may have been committed.

Jurisdiction of State courts not affected. Their judgments a bar to prosecution hereunder.

That nothing in this section shall be held to take away or impair the jurisdiction of the courts of the several States under the laws thereof; and a judgment of conviction or acquittal on the merits under the laws of any State shall be a bar to any prosecution hereunder for the same act or acts.

CLAYTON ACT. 543

Sec. 10. LIMITATIONS UPON DEALINGS AND CON- TRACTS OF COMMON CARRIERS.

SEC. 10. That after two years from the approval of this Dealings in se- Act no common carrier engaged in commerce shall have curities, etc., and contracts for conany dealings in securities, supplies or other articles of struction or maintenance, agcommerce, or shall make or have any contracts for con- gregating more than $50,000 a struction or maintenance of any kind, to the amount of year to be by bid in case director, more than $50,000, in the aggregate, in any one year, with etc., of common carrier, also dianother corporation, firm, partnership or association rector, etc., of other party or when the said common carrier shall have upon its board has a substantial interest therein.

of directors or as its president, manager or as its purchasing or selling officer, or agent in the particular transaction, any person who is at the same time a director, manager, or purchasing or selling officer of, or who has any substantial interest in, such other corporation, firm, partnership or association, unless and except such purchases shall be made from, or such dealings shall be with, the bidder whose bid is the most favorable to such common Bidding to be carrier, to be ascertained by competitive bidding under competitive under regulations regulations to be prescribed by rule or otherwise by the prescribed by Interstate Com- Interstate Commerce Commission. No bid shall be re- merce Commission, and to show ceived unless the name and address of the bidder or the names and addresses of bidder, names and addresses of the officers, directors and general officers, etc. managers thereof, if the bidder be a corporation, or of the members. if it be a partnership or firm, be given with the bid.

Any person who shall, directly or indirectly, do or at- Penalty for tempt to do anything to prevent anyone from bidding or preventing or attempting to preshall do any act to prevent free and fair competition vent free and fair competition in among the bidders or those desiring to bid shall be pun- bidding. ished as prescribed in this section in the case of an officer or director.

Every such common carrier having any such transac- Carrier to retions or making any such purchases shall within thirty port transactions hereunder to Indays after making the same file with the Interstate Com- terstate Commerce Commismerce Commission a full and detailed statement of the sion. transaction showing the manner of the competitive bidding, who were the bidders, and the names and addresses of the directors and officers of the corporations and the members of the firm or partnership bidding; and whenever the said commission shall, after investigation or Commission to hearing, have reason to believe that the law has been report violations, and its own findviolated in and about the said purchases or transactions ings to Attorney General.

it shall transmit all papers and documents and its own views or findings regarding the transaction to the Attorney General.

36727°—25—VOL 6—36

544 ACTS ADMINISTERED BY THE COMMISSION.

Sec. 10. LIMITATIONS UPON DEALINGS AND CONTRACTS OF COMMON CARRIERS—Continued.

Misdemeanor for director, etc., to knowingly vote for, direct, aid, etc., in violation of this section.

If any common carrier shall violate this section it shall be fined not exceeding $25,000; and every such director, agent, manager or officer thereof who shall have knowingly voted for or directed the act constituting such violation or who shall have aided or abetted in such violation shall be deemed guilty of a misdemeanor and shall be fined not exceeding $5,000, or confined in jail not exceeding one year, or both, in the discretion of the court.

Penalty.

Effective date extended to Jan. 1, 1921.

The effective date on and after which the provisions of section 10 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 become and be effective is hereby deferred and extended to January first, nineteen hundred and twenty-one: Provided, That such extension shall not apply in the case of any corporation organized after January twelfth, nineteen hundred and eighteen.¹²

Except as to corporations organized after Jan. 12, 1918.

Sec. 11. JURISDICTION TO ENFORCE COMPLIANCE. COMPLAINTS, FINDINGS, AND ORDERS. APPEALS. SERVICE.¹³

Jurisdiction as respectively applicable vested in— Interstate Commerce Commission;

Federal Reserve Board; and Federal Trade Commission.

SEC. 11. That authority to enforce compliance with sections two, three, seven and eight of this Act by the persons respectively subject thereto is hereby vested: in the Interstate Commerce Commission where applicable to common carriers, in the Federal Reserve Board where applicable to banks, banking associations and trust companies, and in the Federal Trade Commission where applicable to all other character of commerce, to be exercised as follows:

Commission or board to issue complaint if believes secs. 2, 3, 7, or 8 violated, and serve same with notice of hearing on respondent or defendant.

Whenever the commission or board vested with jurisdiction thereof shall have reason to believe that any person is violating or has violated any of the provisions of sections two, three, seven and eight of this Act, it shall issue and serve upon such person a complaint stating its charges in that respect, and containing a notice of a hearing upon a day and at a place therein fixed at least thirty days after the service of said complaint. The person so

¹² Above paragraph, sec. 501 of the Transportation Act, Feb. 28, 1920, ch. 91, 41 Stat. 456 at 499. ¹³ On provisions of the Shipping Board Act, Packers and Stockyards Act, 1921, and Transportation Act, limiting the scope of the Clayton Act in certain cases, see footnote on p. 532.

CLAYTON ACT. 545

complained of shall have the right to appear at the place Respondent to and time so fixed and show cause why an order should have right to appear and show not be entered by the commission or board requiring such cause, etc. person to cease and desist from the violation of the law so charged in said complaint. Any person may make ap- Intervention plication, and upon good cause shown may be allowed may be permitted for good by the commission or board, to intervene and appear in cause. said proceeding by counsel or in person. The testimony Transcript of in any such proceeding shall be reduced to writing and testimony to be filed. filed in the office of the commission or board. If upon such hearing the commission or board, as the case may be, In case of violation commisshall be of the opinion that any of the provisions of said sion or board to make written resections have been or are being violated, it shall make a port stating findings, and to isreport in writing in which it shall state its findings as to sue and serve order to cease and the facts, and shall issue and cause to be served on such desist on respondent.

person an order requiring such person to cease and desist from such violations, and divest itself of the stock held or rid itself of the directors chosen contrary to the provisions of sections seven and eight of this Act, if any there be, in the manner and within the time fixed by said order. Until a transcript of the record in such hearing Commission or board may modshall have been filed in a circuit court of appeals of the ify or set aside its order until United States, as hereinafter provided, the commission transcript of record filed in Ciror board may at any time, upon such notice and in such cuit Court of Appeals.

manner as it shall deem proper, modify or set aside, in whole or in part, any report or any order made or issued by it under this section.

If such person fails or neglects to obey such order of In case of disobedience of its the commission or board while the same is in effect, the order, commission or board commission or board may apply to the circuit court of may apply to Circuit Court of Apappeals of the United States, within any circuit where peals for enforcement of its order, the violation complained of was or is being committed or and file transcript of record.

where such person resides or carries on business, for the enforcement of its order, and shall certify and file with its application a transcript of the entire record in the proceeding, including all the testimony taken and the report and order of the commission or board. Upon such Court to cause notice thereof to filing of the application and transcript the court shall be served on respondent and to cause notice thereof to be served upon such person and have power to enter decree afthereupon shall have jurisdiction of the proceeding and firming, modifying, or setting of the question determined therein, and shall have power aside order of commission or to make and enter upon the pleadings, testimony, and board. proceedings set forth in such transcript a decree affirming, modifying, or setting aside the order of the commis-

546 ACTS ADMINISTERED BY THE COMMISSION.

Sec. 11. JURISDICTION TO ENFORCE COMPLIANCE. COMPLAINTS, FINDINGS, AND ORDERS. APPEALS. SERVICE—Continued.

Findings of sion or board. The findings of the commission or board commission or board conclusive as to the facts, if supported by testimony, shall be conif supported by testimony. clusive. If either party shall apply to the court for leave Introduction of to adduce additional evidence, and shall show to the satadditional evidence may be per- isfaction of the court that such additional evidence is mitted on application, and show- material and that there were reasonable grounds for the ing of reasonable ground for fail- failure to adduce such evidence in the proceeding before ure to adduce theretofore. the commission or board, the court may order such additional evidence to be taken before the commission or board and to be adduced upon the hearing in such manner and upon such terms and conditions as to the court may Commission or seem proper. The commission or board may modify its board may make new or modified findings as to the facts, or make new findings, by reason findings by reason thereof. of the additional evidence so taken, and it shall file such modified or new findings, which, if supported by testimony, shall be conclusive, and its recommendation, if any, for the modification or setting aside of its original Judgment and order, with the return of such additional evidence. The decree subject to review upon cer- judgment and decree of the court shall be final, except tiorari, but otherwise final. that the same shall be subject to review by the Supreme Court upon certiorari as provided in section two hundred and forty of the Judicial Code.

Petition by re- Any party required by such order of the commission or spondent to review order to board to cease and desist from a violation charged may cease and desist. obtain a review of such order in said circuit court of appeals by filing in the court a written petition praying that the order of the commission or board be set aside. A To be served on copy of such petition shall be forthwith served upon the commission or board which commission or board, and thereupon the commission or thereupon to certify and file board forthwith shall certify and file in the court a transcript of record in the court. transcript of the record as hereinbefore provided. Upon the filing of the transcript the court shall have the same Jurisdiction of jurisdiction to affirm, set aside, or modify the order of the Court of Appeals same as on application by com- commission or board as in the case of an application by mission or board and commission's the commission or board for the enforcement of its order, or board's findings similarly and the findings of the commission or board as to the conclusive. facts, if supported by testimony, shall in like manner be conclusive.

Jurisdiction of The jurisdiction of the circuit court of appeals of the Court of Appeals exclusive. United States to enforce, set aside, or modify orders of the commission or board shall be exclusive.

CLAYTON ACT. 547

Such proceedings in the circuit court of appeals shall Proceedings to be given precedence over other cases pending therein, and have precedence over other cases.

shall be in every way expedited. No order of the com- and to be expedited.

mission or board or the judgment of the court to enforce Liability under the same shall in any wise relieve or absolve any person antitrust acts not affected.

from any liability under the antitrust Acts.¹⁴

Complaints, orders, and other processes of the commis- Service of comsion or board under this section may be served by any- mission's or board's comone duly authorized by the commission or board, either plaints, orders, and other proc- (a) by delivering a copy thereof to the person to be esses. Personal; or served, or to a member of the partnership to be served, or to the president, secretary, or other executive officer or a director of the corporation to be served; or (b) by At office or leaving a copy thereof at the principal office or place of place of business; or business of such person; or (c) by registering and mail- By registered ing a copy thereof addressed to such person at his princi- mail. pal office or place of business. The verified return by the Verified return person so serving said complaint, order, or other process of person serving, and return postsetting forth the manner of said service shall be proof office receipt, proof of service.

of the same, and the return post-office receipt for said complaint, order, or other process registered and mailed as aforesaid shall be proof of the service of the same.

Sec. 12. PLACE OF PROCEEDINGS UNDER ANTITRUST LAWS. SERVICE OF PROCESS.

SEC. 12. That any suit, action, or proceeding under the Proceeding may antitrust laws¹⁴ against a corporation may be brought be instituted or process served in not only in the judicial district whereof it is an inhabit- district of which corporation an ant, but also in any district wherein it may be found or inhabitant or wherever it may transacts business; and all process in such cases may be be found. served in the district of which it is an inhabitant, or wherever it may be found.

Sec. 13. SUBPŒNAS FOR WITNESSES IN PROCEEDINGS BY OR ON BEHALF OF THE UNITED STATES UNDER ANTITRUST LAWS.

SEC. 13. That in any suit, action, or proceeding brought by or on behalf of the United States subpœnas for witnesses who are required to attend a court of the United States in any judicial district in any case, civil or crimi-

¹⁴ For text of Sherman Act, see footnote on pp. 533–535. For Antitrust Acts as enumerated in Clayton Act, see first paragraph thereof on p. 532.

548 ACTS ADMINISTERED BY THE COMMISSION.

Sec. 13. SUBPŒNAS FOR WITNESSES IN PROCEEDINGS BY OR ON BEHALF OF THE UNITED STATES UNDER ANTITRUST LAWS—Continued.

May run into nal, arising under the antitrust laws 15 may run into any any district, but other district: Provided, That in civil cases no writ of permission of trial court neces- subpœna shall issue for witnesses living out of the dissary in civil cases if witness lives trict in which the court is held at a greater distance than out of district and more than one hundred miles from the place of holding the same 100 miles distant. without the permission of the trial court being first had upon proper application and cause shown.

Sec. 14. VIOLATION BY CORPORATION OF PENAL PROVISIONS OF ANTITRUST LAWS.

Deemed also SEC. 14. That whenever a corporation shall violate any that of individual directors, offi- of the penal provisions of the antitrust laws,16 such violacers, etc. tion shall be deemed to be also that of the individual directors, officers, or agents of such corporation who shall have authorized, ordered, or done any of the acts consti- A misdemeanor. tuting in whole or in part such violation, and such viola- Penalty, fine tion shall be deemed a misdemeanor, and upon conviction or imprisonment, or both. therefor of any such director, officer, or agent he shall be punished by a fine of not exceeding $5,000 or by imprisonment for not exceeding one year, or by both, in the discretion of the court.

Sec. 15. JURISDICTION OF UNITED STATES DISTRICT COURTS TO PREVENT AND RESTRAIN VIOLATIONS OF THIS ACT.

SEC. 15. That the several district courts of the United States are hereby invested with jurisdiction to prevent and restrain violations of this Act, and it shall be the District attor- duty of the several district attorneys of the United States, neys, under direction of Attor- in their respective districts, under the direction of the ney General, to institute proceed- Attorney General, to institute proceedings in equity to ings.

Proceedings prevent and restrain such violations. Such proceedings may be by way of petition set- may be by way of petition setting forth the case and prayting forth the case, etc. ing that such violation shall be enjoined or otherwise pro- After due no- hibited. When the parties complained of shall have been tice, Court to proceed to hear- duly notified of such petition, the court shall proceed, as ing and determination as soon as soon as may be, to the hearing and determination of the may be.

Pending peti- case; and pending such petition, and before final decree, tion instituting proceeding Court the court may at any time make such temporary restrainmay make temporary restrain- ing order or prohibition as shall be deemed just in the ing order or prohibition. premises. Whenever it shall appear to the court before which any such proceeding may be pending that the ends

15 For text of Sherman Act, see footnote on pp. 533-535. For Antitrust Acts as enumerated in Clayton Act, see first paragraph thereof on p. 532.

CLAYTON ACT.

of justice require that other parties should be brought Court may sumbefore the court, the court may cause them to be sum- mon other parmoned whether they reside in the district in which the ties. court is held or not, and subpœnas to that end may be served in any district by the marshal thereof.

Sec. 16. INJUNCTIVE RELIEF AGAINST THREATENED LOSS BY VIOLATION OF ANTITRUST LAWS.

SEC. 16. That any person, firm, corporation, or associa- Open to any tion shall be entitled to sue for and have injunctive relief, person, firm, etc., on same condiin any court of the United States having jurisdiction tions and principles as other inover the parties, against threatened loss or damage by a junctive relief by courts of violation of the antitrust laws,¹⁶ including sections two, equity against threatened conthree, seven and eight of this Act, when and under the duct that will cause loss or same conditions and principles as injunctive relief against damage. threatened conduct that will cause loss or damage is granted by courts of equity, under the rules governing such proceedings, and upon the execution of proper bond Preliminary injunction may isagainst damages for an injunction improvidently granted sue upon proper bond and showand a showing that the danger of irreparable loss or dam- ing. age is immediate, a preliminary injunction may issue: Provided, That nothing herein contained shall be con- But United strued to entitle any person, firm, corporation, or associ- States alone may sue for injuncation, except the United States, to bring suit in equity for tive relief against common carrier injunctive relief against any common carrier subject to subject to Act to Regulate Comthe provisions of the Act to regulate commerce approved merce. February fourth, eighteen hundred and eighty-seven, in respect of any matter subject to the regulation, supervision, or other jurisdiction of the Interstate Commerce Commission.

Sec. 17. PRELIMINARY INJUNCTIONS. TEMPORARY RESTRAINING ORDERS.

SEC. 17. That no preliminary injunction shall be issued No preliminary without notice to the opposite party. injunction without notice.

No temporary restraining order shall be granted with- No temporary out notice to the opposite party unless it shall clearly restraining order in absence of a appear from specific facts shown by affidavit or by the showing of immediate and irverified bill that immediate and irreparable injury, loss, reparable injury or loss.

or damage will result to the applicant before notice can be served and a hearing had thereon. Every such tem- Temporary restraining order, porary restraining order shall be indorsed with the date to show date and hour of issue, deand hour of issuance, shall be forthwith filed in the fine injury, etc. clerk's office and entered of record, shall define the in-

¹⁶ For text of Sherman Act, see footnote on pp. 533-535. For Antitrust Acts as enumerated in Clayton Act, see first paragraph thereof on p. 532.

550 ACTS ADMINISTERED BY THE COMMISSION.

Sec. 17. PRELIMINARY INJUNCTIONS. TEMPORARY RESTRAINING ORDERS—Continued.

jury and state why it is irreparable and why the order was granted without notice, and shall by its terms expire within such time after entry, not to exceed ten days, as the court or judge may fix, unless within the time so fixed the order is extended for a like period for good cause shown, and the reasons for such extension shall be entered If without no- of record. In case a temporary restraining order shall tice, issuance of preliminary in- be granted without notice in the contingency specified, junction to be disposed of at the matter of the issuance of a preliminary injunction earliest possible moment. shall be set down for a hearing at the earliest possible time and shall take precedence of all matters except older matters of the same character; and when the same comes up for hearing the party obtaining the temporary restraining order shall proceed with the application for a preliminary injunction, and if he does not do so the court shall dissolve the temporary restraining order. Upon Opposite party two days' notice to the party obtaining such temporary may move dissolution or modi- restraining order the opposite party may appear and fication on two days' notice. move the dissolution or modification of the order, and in that event the court or judge shall proceed to hear and determine the motion as expeditiously as the ends of justice may require.

Sec. 263 of Ju- Section two hundred and sixty-three of an Act entitled dicial Code repealed. "An Act to codify, revise, and amend the laws relating to the judiciary," approved March third, nineteen hundred and eleven, is hereby repealed.

Sec. 266 not Nothing in this section contained shall be deemed to affected. alter, repeal, or amend section two hundred and sixtysix of an Act entitled "An Act to codify, revise, and amend the laws relating to the judiciary," approved March third, nineteen hundred and eleven.

Sec. 18. NO RESTRAINING ORDER OR INTERLOCUTORY ORDER OF INJUNCTION WITHOUT GIVING SECURITY.

Except as pro- SEC. 18. That, except as otherwise provided in section vided in sec. 16 of this act. 16 of this Act, no restraining order or interlocutory order of injunction shall issue, except upon the giving of security by the applicant in such sum as the court or judge may deem proper, conditioned upon the payment of such costs and damages as may be incurred or suffered by any party who may be found to have been wrongfully enjoined or restrained thereby.

CLAYTON ACT. 551

Sec. 19. ORDERS OF INJUNCTION OR RESTRAINING ORDERS—REQUIREMENTS.

SEC. 19. That every order of injunction or restraining Must set forth order shall set forth the reasons for the issuance of the reasons, be specific, and desame, shall be specific in terms, and shall describe in rea- scribe acts to be restrained.

sonable detail, and not by reference to the bill of complaint or other document, the act or acts sought to be restrained, and shall be binding only upon the parties to Binding only the suit, their officers, agents, servants, employees, and on parties to suit, their offiattorneys, or those in active concert or participating with cers, etc. them, and who shall, by personal service or otherwise, have received actual notice of the same.

Sec. 20. RESTRAINING ORDERS OR INJUNCTIONS BE- TWEEN AN EMPLOYER AND EMPLOYEES, EMPLOYERS AND EMPLOYEES, ETC., INVOLVING OR GROWING OUT OF TERMS OR CONDITIONS OF EMPLOYMENT.

SEC. 20. That no restraining order or injunction shall be granted by any court of the United States, or a judge or the judges thereof, in any case between an employer and employees, or between employers and employees, or between employees, or between persons employed and persons seeking employment, involving, or growing out of, a dispute concerning terms or conditions of employment, unless necessary to prevent irreparable injury to Not to issue property, or to a property right, of the party making the unless necessary to prevent irrepapplication, for which injury there is no adequate remedy arable injury. at law, and such property or property right must be Threatened described with particularity in the application, which property or property rights must must be in writing and sworn to by the applicant or by be described with particularity.

his agent or attorney.

And no such restraining order or injunction shall pro- Not to prohibit hibit any person or persons, whether singly or in concert, any person or persons from termifrom terminating any relation of employment, or from nating any relation of employceasing to perform any work or labor, or from recom- ment, recommending others mending, advising, or persuading others by peaceful by peaceful means so to do, means so to do; or from attending at any place where etc. any such person or persons may lawfully be, for the purpose of peacefully obtaining or communicating information, or from peacefully persuading any person to work or to abstain from working; or from ceasing to patronize or to employ any party to such dispute, or from recommending, advising, or persuading others by peaceful and lawful means so to do; or from paying or giving to, or withholding from, any person engaged in such dispute,

552 ACTS ADMINISTERED BY THE COMMISSION.

Sec. 20. RESTRAINING ORDERS OR INJUNCTIONS BE- TWEEN AN EMPLOYER AND EMPLOYEES, EMPLOYERS AND EMPLOYEES, ETC., INVOLVING OR GROWING OUT OF TERMS OR CONDITIONS OF EMPLOYMENT—Contd.

any strike benefits or other moneys or things of value; or from peaceably assembling in a lawful manner, and for lawful purposes; or from doing any act or thing which might lawfully be done in the absence of such dis- Acts specified pute by any party thereto; nor shall any of the acts speciin this paragraph not to be consid- fied in this paragraph be considered or held to be violaered violations of any law of the tions of any law of the United States. United States.

Sec. 21. DISOBEDIENCE OF ANY LAWFUL WRIT, PROCESS, ETC., OF ANY UNITED STATES DISTRICT COURT, OR ANY DISTRICT OF COLUMBIA COURT.

SEC. 21. That any person who shall willfully disobey any lawful writ, process, order, rule, decree, or command of any district court of the United States or any court of the District of Columbia by doing any act or thing therein, or thereby forbidden to be done by him, if the If act done also act or thing so done by him be of such character as to cona criminal offense under laws stitute also a criminal offense under any statute of the of United States or of State in United States, or under the laws of any State in which which committed, person to be pro- the act was committed, shall be proceeded against for his ceeded against as hereinafter pro- said contempt as hereinafter provided. vided.

Sec. 22. RULE TO SHOW CAUSE OR ARREST. TRIAL. PENALTIES.

SEC. 22. That whenever it shall be made to appear to any district court or judge thereof, or to any judge therein sitting, by the return of a proper officer on lawful process, or upon the affidavit of some credible person, or by information filed by any district attorney, that there is reasonable ground to believe that any person has been Court or judge guilty of such contempt, the court or judge thereof, or may issue rule to show cause why any judge therein sitting, may issue a rule requiring the person charged should not be said person so charged to show cause upon a day certain punished. why he should not be punished therefor, which rule, together with a copy of the affidavit or information, shall be served upon the person charged, with sufficient promptness to enable him to prepare for and make return to the order at the time fixed therein. If upon or by such re- Trial if alleged turn, in the judgment of the court, the alleged contempt contempt not sufficiently purged be not sufficiently purged, a trial shall be directed at a by return. time and place fixed by the court: Provided, however,

CLAYTON ACT. 553

That if the accused, being a natural person, fail or refuse Failure of natto make return to the rule to show cause, an attachment ural person to make return. Atmay issue against his person to compel an answer, and in tachment against person.

case of his continued failure or refusal, or if for any reason it be impracticable to dispose of the matter on the return day, he may be required to give reasonable bail for his attendance at the trial and his submission to the final judgment of the court. Where the accused is a body If body corpocorporate, an attachment for the sequestration of its rate, attachment for sequestration property may be issued upon like refusal or failure to of its property. answer.

In all cases within the purview of this Act such trial Trial may be may be by the court, or, upon demand of the accused, by by court or, upon demand of aca jury; in which latter event the court may impanel a cused, by jury. jury from the jurors then in attendance, or the court or the judge thereof in chambers may cause a sufficient number of jurors to be selected and summoned, as provided by law, to attend at the time and place of trial, at which time a jury shall be selected and impaneled as upon a trial for Trial to conmisdemeanor; and such trial shall conform, as near as form to practice in criminal cases may be, to the practice in criminal cases prosecuted by prosecuted by indictment or upon indictment or upon information. information.

If the accused be found guilty, judgment shall be entered accordingly, prescribing the punishment, either by Penalty, fine fine or imprisonment, or both, in the discretion of the or imprisonment, or both.

court. Such fine shall be paid to the United States or to Fine paid to the complainant or other party injured by the act con- United States or complainant or stituting the contempt, or may, where more than one is so other party injured. If acdamaged, be divided or apportioned among them as the cused natural person, fine to court may direct, but in no case shall the fine to be paid United States not to exceed $1,000.

to the United States exceed, in case the accused is a natural person, the sum of $1,000, nor shall such imprisonment exceed the term of six months: Provided, That in any case the court or a judge thereof may, for good cause Court or judge shown, by affidavit or proof taken in open court or before may dispense with rule and issuch judge and filed with the papers in the case, dispense sue attachment for arrest.

with the rule to show cause, and may issue an attachment for the arrest of the person charged with contempt; in which event such person, when arrested, shall be brought Accused to be before such court or a judge thereof without unnecessary brought before judge promptly delay and shall be admitted to bail in a reasonable penalty and admitted to bail. Proceedfor his appearance to answer to the charge or for trial for ings thereafter same as if rule the contempt; and thereafter the proceedings shall be the had issued. same as provided herein in case the rule had issued in the first instance.

554 ACTS ADMINISTERED BY THE COMMISSION.

Sec. 23. EVIDENCE. APPEALS.

Evidence may SEC. 23. That the evidence taken upon the trial of any be preserved by bill of exceptions. persons so accused may be preserved by bill of exceptions, Judgment re- and any judgment of conviction may be reviewed upon viewable upon writ of error. writ of error in all respects as now provided by law in criminal cases, and may be affirmed, reversed, or modified Granting of as justice may require. Upon the granting of such writ writ to stay execution, and of error, execution of judgment shall be stayed, and the Accused to be accused, if thereby sentenced to imprisonment, shall be admitted to bail.

admitted to bail in such reasonable sum as may be required by the court, or by any justice, or any judge of any district court of the United States or any court of the District of Columbia.

Sec. 24. CASES OF CONTEMPT NOT SPECIFICALLY EM- BRACED IN SEC. 21 NOT AFFECTED.

Committed in SEC. 24. That nothing herein contained shall be conor near presence of court, or strued to relate to contempts committed in the presence In disobedience of the court, or so near thereto as to obstruct the adminisof any lawful writ or process tration of justice, nor to contempts committed in disin suit or action by or in behalf obedience of any lawful writ, process, order, rule, decree, of United States, or command entered in any suit or action brought or And other cases prosecuted in the name of, or on behalf of, the United not in sec. 21.

Punished in States, but the same, and all other cases of contempt not conformity with prevailing usages specifically embraced within section twenty-one of this at law and in equity. Act, may be punished in conformity to the usages at law and in equity now prevailing.

Sec. 25. PROCEEDINGS FOR CONTEMPT. LIMITATIONS.

Must be insti- SEC. 25. That no proceeding for contempt shall be intuted within one year. stituted against any person unless begun within one year Not a bar to from the date of the act complained of; nor shall any criminal prosecution. such proceeding be a bar to any criminal prosecution for Pending pro- the same act or acts; but nothing herein contained shall ceedings not affected. affect any proceedings in contempt pending at the time of the passage of this Act.

Sec. 26. INVALIDITY OF ANY CLAUSE, SENTENCE, ETC., NOT TO IMPAIR REMAINDER OF ACT.

SEC. 26. If any clause, sentence, paragraph, or part of this Act shall, for any reason, be adjudged by any court of competent jurisdiction to be invalid, such judgment But to be con- shall not affect, impair, or invalidate the remainder fined to clause, sentence, etc., di- thereof, but shall be confined in its operation to the clause, rectly involved. sentence, paragraph, or part thereof directly involved in the controversy in which such judgment shall have been rendered.

Approved, October 15, 1914.

ACTS ADMINISTERED BY THE COMMISSION. 555

WEBB ACT.¹

[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 assembled, That the words "export trade" wherever used in "Export trade." 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.

That the words "trade within the United States" "Trade within wherever used in this Act mean trade or commerce among the United the several States or in any Territory of the United States." 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 "Association." Act means any corporation or combination, by contract or otherwise, of two or more persons, partnerships, or corporations.

Sec. 2. ASSOCIATION FOR OR AGREEMENT OR ACT MADE OR DONE IN COURSE OF EXPORT TRADE—STATUS UNDER SHERMAN ANTITRUST LAW.

SEC. 2. That nothing contained in the Act entitled "An Association not Act to protect trade and commerce against unlawful re- illegal if organstraints and monopolies," approved July second, eighteen ized for and enhundred and ninety,² shall be construed as declaring to gaged in export be illegal an association entered into for the sole purpose trade solely. of engaging in export trade and actually engaged solely in

¹ With the exception of a reference thereto in the case of United States v. United States Steel Corporation, 251 U. S. 417 at 453, and in Ex Parte Lamar, 274 Fed. 160 at 171, this act appears as yet neither to have been involved in nor referred to in any reported case. ² For text of Sherman Act, see footnote on pp. 533-535.

556 ACTS ADMINISTERED BY THE COMMISSION.

Sec. 2. ASSOCIATION FOR OR AGREEMENT OR ACT MADE OR DONE IN COURSE OF EXPORT TRADE— STATUS UNDER SHERMAN ANTITRUST LAW—Continued.

Nor agreement nor act, if not in restraint of trade within the United States, or of the export trade of any domestic competitor, and such export trade, or an agreement made or act done in the course of export trade by such association, provided such association, agreement, or act is not in restraint of trade within the United States, and is not in restraint of the export trade of any domestic competitor of such association: And provided further, That such association

If such association does not artificially or intentionally enhance or depress prices of, or substantially lessen competition, or restrain trade in commodities of class exported.

does not, either in the United States or elsewhere, enter into any agreement, understanding, or conspiracy, or do 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.

Sec. 3. ACQUISITION BY EXPORT TRADE CORPORATION OF STOCK OR CAPITAL OF OTHER CORPORATION.

SEC. 3. That nothing contained in section seven of the Act entitled “An Act to supplement existing laws against

Lawful under Clayton Act unless effect may be to restrain trade or substantially lessen competition within United States.

unlawful restraints and monopolies, and for other purposes,” approved October fifteenth, nineteen hundred and fourteen,³ shall be construed to forbid the acquisition or ownership by any corporation of the whole or any part of the stock or other capital of any corporation organized solely for the purpose of engaging in export 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,⁴ shall be construed as extending to unfair methods of competition used in export trade against competitors engaged in ex-

³ See ante, p. 532 et seq.

⁴ See ante, p. 519 et seq.

WEBB ACT. 557

port trade, even though the acts constituting such unfair methods are done without the territorial jurisdiction of the United States. Even though acts involved done without territorial jurisdiction of United States.

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 export trade, within sixty days after the passage of this Act, and every association entered into hereafter which engages solely in export trade, within thirty days after its creation, shall file with the Federal Trade Commission a verified written statement setting forth 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 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 contract of association. It shall also furnish to the commission 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 shall fail so to do shall not have the benefit of the provisions of section two and section three of this Act, and 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 in which it shall do business. It shall be the 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 expenses of such prosecution shall be paid out of the appropriation for the expenses of the courts of the United States. Export trade associations or corporations to file statement with Federal Trade Commission showing location of offices, names, and addresses of officers, etc., and also articles of incorporation or contract of association, etc. To furnish also information as to organization, business, etc. Penalties, loss of benefit of secs. 2 and 3, and fine. District attorneys to prosecute for recovery of forfeiture.

558 ACTS ADMINISTERED BY THE COMMISSION.

Sec. 5. OBLIGATIONS OF EXPORT TRADE ASSOCIA- TIONS UNDER THIS ACT. PENALTIES FOR FAILURE TO COMPLY. DUTIES AND POWERS OF COMMISSION— Continued.

Federal Trade Whenever the Federal Trade Commission shall have Commission to reason to believe that an association or any agreement investigate restraint of trade, made or act done by such association is in restraint of artificial or intentional enhance- trade within the United States or in restraint of the exment or depression of prices or port trade of any domestic competitor of such association, substantial lessening of compe- or that an association either in the United States or elsetition by association. where 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 May recom- into the alleged violations of law. Upon investigation, mend readjustment in case of if it shall conclude that the law has been violated, it may violation. 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 To refer find- business in accordance with law. If such association fails ings and recommendations to to comply with the recommendations of the Federal Trade Attorney General if association fails Commission, said commission shall refer its findings and to comply with recommendation. recommendations to the Attorney General of the United States for such action thereon as he may deem proper. Commission For the purpose of enforcing these provisions the Fedgiven same powers as under Fed- eral Trade Commission shall have all the powers, so far eral Trade Commission Act so as applicable, given it in "An Act to create a Federal far as applicable. Trade Commission, to define its powers and duties, and for other purposes." 5 Approved, April 10, 1918.

5 See ante, p. 519 et seq.

← 6 F.T.C. 504