Fred A. Maltby and Clarence W. Maltby, as Individuals and as Partners

5 F.T.C. 473 · Docket 044 · Decided Feb. 8, 1923

Citation: 5 F.T.C. 473
Docket: 044
Decision: Feb. 8, 1923 (recovered from the page header)
Case type: Unclassified
Separate statement / dissent: yes
Source: Original volume PDF
Original PDF: This decision as a PDF

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Fred A. Maltby and Clarence W. Maltby, as Individuals and as Partners, 5 F.T.C. 473 (1923). Consumer Law Library, https://consumerlawlibrary.org/decisions/v005-0061

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COMPLAINT IN THE MATTER OF THE ALLEGED VIOLATION OF SECTION 5

OF AN ACT OF CONGRESS APPROVED SEPTEMBER 26, 1914.

Docket 044—February 8, 1923,

SYLLABUS.

Where two taxicab concerns built up a large and valuable good will as the Yellow Cab Co., and Black & White Taxi Co., respectively; and thereafter a competing concern,

(a) Caused its business to be Usted and advertised in the local telephone directory as the “ Yellow Bell Taxi Co.”, “Yellow Ford Taxi Co.”, and * “Black & White Ford Taxi Co.”, so that by reason of alphabetical arrangement its business ag so named, listed, and advertised immediately preceded and/or followed the names of said concerns, and they were thereby deprived of a portion of the good will and patronage that should have accrued to them; and,

(6) For the purpose of preempting their use and with a tendency and capacity to mislead and deceive the public: and thereby secure its patronage, caused its business also to be listed and advertised therein under a large number of other names, some of which were well and favorably known as those of taxicab companies operating in other cities: Held, That such misleading adoption and use of trade names, and such false and misleading advertising, under the circumstances set forth, constituted unfair methods 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 Fred A, Maltby and Clarence W. Maltby, a copartnership, doing business under the name and style of Yellow Bell Taxi Company, and Yellow Ford Taxi Company, hereinafter referred to as Respondents, have been and are using unfair methods of competition in commerce in violation of the provisions of Section 5 of said Act, and states its charges in that respect as follows:

Paracrarir 1. Respondents, Fred A. Maltby and Clarence W. ' Maltby, have for more than two years last past been engaged in the business of operating taxicabs for hire in the City of Washington, District of Columbia, both as a copartnership and as individuals, With their principal office and place of business in said City and Dis-

Complaint. SE, TLC, trict. Respondents in the course and conduct of their said business have advertised and operated under a great number of trade names, more specifically set out hereinafter, among which is the “Arcade Taxi Service.” In the course and conduct of their said business, respondents are in competition with other persons, partnerships and corporations similarly engaged.

Par. 2. The Yellow Cab Company is a corporation created and existing under the laws of the State of Delaware, with its principal office and place of business in the City of Washington, District of Columbia, where it is engaged in operating taxicabs for hire in said City and District. Said Yellow Cab Company advertises its said business by means of advertisements and listings which it causes to be placed in the directory of the Chesapeake & Potomac Telephone Company, a telephone company rendering telephone service to the public in Washington City and the District of Columbia. The aforesaid cabs operated by the Yellow Cab Company are painted yellow, in conformity with said trade name, and bear upon the door the legend, “ Yellow Cab Company.” Since the commencement of its said taxicab business the said Yellow Cab Company has built up a large and valuable good will amongst the general public in the City of Washington, District of Columbia, for its said taxicabs.

Par. 3. The Black & White Taxi Company is a corporation created and existing under the laws of the District of Columbia, with its principal office and place of business in the City of Washington, Disirict of Columbia, where it is engaged in operating taxi cabs for hire in said City and District, Said Black & White Taxi Company advertises its said business by means of advertisements ‘and listings which it causes to be placed in the directory of the Chesapeake & Potomac Telephone Company, a telephone company rendering telephone service to the public in Washington City and the District of Columbia. The aforesaid cabs operated by the Black & White Taxi Company are painted black and white and bear four monograms— one on each door, one on the back of the cab and one on the cowl, which monogram consists of a black rimmed circle around which 1s inscribed the words, “ Black & White Taxi.” Since the commencement of its said taxi cab business, the said Black & White Taxi Company has built up a large and valuable good will amongst the general public in the City of Washington, District of Columbia, for its said taxi cabs,

Par. 4. Respondents placed or caused to be placed certain advertisements and listings in the fall issue of said telephone directory of the Chesapeake & Potomac Telephone Company which was issued by

FRED A. MALTBY ET AL, : 475

* 473 Complaint. said Company about November 1, 1921, in which said respondents caused to be set out and advertised the names “ Yellow Bell Taxi Company,” and “Yellow Ford Taxi Company.” Because of the alphabetical arrangement of said names, the said name, “ Yellow Bell Taxi Company” appeared immediately above the name of the said Yellow Cab Company, hereinafter mentioned, and the name “Yellow Ford Taxi Company,” appeared immediately below the said name “ Yellow Cab Company ” in the listings in said directory.

Par. 5. Respondents, in the fall issue of the telephone directory of said Chesapeake & Potomac Telephone Company which was issued by said Company about November 1, 1921, placed or caused to be placed certain advertisements and listings in said telephone directory in which said advertisements and listings respondent caused to be set out and advertised the name of “ Black & White Ford Taxi Company.” Because of the setting out of the said name, “ Black & White Ford Taxi Company” in the listings of said directory, the said name, “ Black & White Ford Taxi Company” appeared immediately above the name of the “ Black & White Taxi Company.”

Par. 6. Because of the adoption by respondents of the said names, “Yellow Bell Taxi Company” and “ Yellow Ford Taxi Company,” and because of the alphabetical arrangement of those said names as set out in paragraph 5 hereof, respondents have diverted from the said Yellow Cab Company a portion of the good will and patronage that should have accrued to it. Because of the adoption by respondent of the said name “ Black & White Ford Taxi Company,” and because of the alphabetical arrangement of said name as set out in

Paragraph 5 hereof, respondents have diverted from the said “ Black & White Taxi Company” a portion of the good will and patronage ‘ that should have accruedtoit. Respondents, from time to time in the two years last past listed and advertised in said telephone directory of the said Chesapeake & Potomac Telephone Company, under some fifty-odd additional names set out next below and sought to preempt to themselves the use of these said names within the City of Washington and the District of Columbia, and to prevent other taxi cab companies from operating under or using any of these said names:

A-Bee Taxi, Bell Taxicabs, Arcade Cab Service, Bell Taxi Service, Arcade Taxi, Blue & Gray Taxi, Arcade Taxicabs, Blue Ribbon Taxi, Arcade Taxi Service, Bring-You-Back Taxi, Bell Taxi, Brown & Black Taxi,

Brown Taxi, Cadillac Taxi Co., Central Taxi Co., Checker Taxicab Co., Checker Taxi Co., Circle Taxi Co., City Taxi Co., Colonial Taxi Co., Columbia Hgts. Taxi Service, Columbia Taxi, Continental Taxi, Crown Taxi Co., Ever-Ready Taxi Co, Globe Taxi Co., Gray Taxi Co.,

Findings.

Packard Taxi Co., Park Taxi Co., Park Taxi Service, Peoples Taxi, Peoples Taxi Co., Quaker Taxi, Quaker Taxi Co., Red Checker Taxi Co., Red Taxi, Red Taxi Co., Ring Taxi Co, Ritz Carlton Taxi Co., Star Taxi Co., Sunset Taxi Co., Tak-A-Cab Taxi Co., Take-U-There Taxi Co., Twentieth Century Taxi Co., Uneeda Taxi Co.,, White Taxi Co.

Hacks Taxi Co., Home James Taxi Co., Hudson Taxi Co., Irving St. Taxi Co., Keystone Taxi Co.,

Par. 7. A number of said names so listed by respondents are used by taxi cab companies operating in various other cities of the United States, and enjoy a large and valuable goodwill in said cities, and the use by respondents of said names in the manner hereinbefore set out has the tendency and capacity to mislead and deceive the public, who are familiar with the said names so adopted by respondents and used in other cities, into the belief that the said names listed and advertised by respondents, as aforesaid, are operated by the said taxicab companies and render a service similar to the service rendered by said companies in other cities and cause the public to patronize the taxi cab service of respondents in that belief.

Par. 8. The acts and things done by respondents, and each of them, as hereinabove alleged, are false and misleading and prejudicial to the public and to the competitors of the respondents, and constitute unfair methods of competition in commerce in violation 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 473 Findings, a complaint upon respondents, Fred A. Maltby and Clarence W. Maltby, as individuals and as partners, charging them and each of them with the use of unfair methods of competition in commerce in violation of the provisions of said Act.

Said respondents having entered their appearance and filed their answer therein and having made, executed and filed an agreed stipulation as to the facts, in which it is stipulated and agreed by the respondents that the Federal Trade Commission shall take such stipulation as to the facts in this case in lieu of testimony and proceed forthwith upon such stipulation to make its findings as to the facts and such order as it may be prepared to enter therein without the introduction of testimony, the Federal Trade Commission has duly considered the record and now being fully advised in the premises, makes this its findings as to the facts and conclusion: FINDINGS AS TO THE FACTS, Paracrarn 1. Respondents, Fred A. Maltby and Clarence W. Maltby, and each of them, have for more than two years last past been engaged in the business of operating taxicabs for hire in the City of Washington, District of Columbia, with their principal office and place of business in said City and District. In the course and conduct of their said business they have advertised and operated under a great number of trade names among which is the “Arcade Taxi Service.” In the course and conduct of their said business respondents are in competition with other persons, partnerships and corporations similarly engaged.

Par. 2. The Yellow Cab Company is a corporation created and existing under the laws ‘of the State of Delaware, with its principal office and place of business in the City of Washington, District of Columbia, where it is engaged in operating taxicabs for hire in said City and District. Said Yellow Cab Company advertises its said | business by means of advertisements and lists which it causes to be placed in the directory of the Chesapeake & Potomac Telephone Company, a telephone company rendering telephone service to the public in Washington City and the District of Columbia. The aforesaid cabs operated by the Yellow Cab Company are painted yellow in conformity with said trade name and bear upon the door the legend “Yellow Cab Company.” Since the commencement of its said taxicab business, the said Yellow Cab Company has built up a large and valuable good-will amongst the general public in the City of Washington, District of Columbia, for its said taxicab service,

Findings, SE.T.C,

Par. 8. The Black & White Taxi Company is a corporation created and existing under the laws of the District of Columbia, with its principal office and place of business in the City of Washington, District of Columbia, where it is engaged in operating taxicabs for hire in said City and District. Said Black & White Taxi Company advertises its.said business by means of advertisements and listings which it causes to be placed in the directories of the Chesapeake & Potomac Telephone Company, a telephone company rendering telephone service to the public in Washington City, and the District of Columbia. The aforesaid cabs operated by the Black & White Taxi Company are painted black and white and bear four monograms,—one on each door, one on the back of the cab and one on the cowl, which monogram consists of a black rimmed circle around which is inscribed the words, “ Black & White Taxi.” Since the commencement of its said taxicab business, the said Black & White Taxi Company has built up a large and valuable good-will amongst the general public in the City of Washington, District of Columbia, for its said taxicab service.

Par.4. Prior and up to the 30th day of May, 1922, respondents placed or caused to be placed certain advertisements and listings in the fall issue of said telephone directory of the Chesapeake & Potomac Telephone Company which was issued by said Company about November 1, 1921, in which said respondents caused to be set out and advertised the names “ Yellow Bell Taxi Company,” and “ Yellow Ford Taxi Company.” Because of the alphabetical arrangement of said names, the said name, “ Yellow Bell Taxi Company ” appeared immediately above the name of the said Yellow Cab Company, hereinafter mentioned, and the name “ Yellow Ford Taxi Company,” appeared immediately below the said name “ Yellow Cab Company ” in the listings in said directory. That on or about the 30th day of May, 1922, the Supreme Court of the District of Columbia issued its injunction, Equity No. 40018, restraining the respondents herein from the use of the said names set out next above, and in compliance with said injunction respondents have ceased to use said trade names.

Par. 5. Respondents, prior and up to October 7, 1922, placed or caused to be placed in the telephone directory of the Chesapeake & Potomac Telephone Company aforesaid, certain advertisements and listings in said telephone directory in which said advertisements and listings respondents caused to be set out and advertised the name of “Black & White Ford Taxi Company.” Because of the setting out of the said name, “Black & White Ford Taxi Company” in the listings of said directory, the said name, “ Black & White Ford Taxi

FRED A, MALTBY ET AL, ; 479

473 Findings, Company ” appeared immediately above the name of the “ Black & White Taxi Company.” That on or about October 7, 1922, respondents voluntarily discontinued the use of the said trade names sct out next above.

Par. 6. Because of the adoption by respondents of the said names “Yellow Bell Taxi Company” and “ Yellow Ford Taxi Company,” and because of the alphabetical arrangement of those said names as set out in Paragraph Five hereof, respondents have diverted from the said Yellow Cab Company a portion of the good-will and patronage that should have accrued to it. Because of the adoption by respondent of the said name “ Black & White Ford Taxi Company,” and because of the alphabetical arrangement of said names as set out in paragraph 5 hereof, respondents have diverted from the said “Black & White Taxi Company” a portion of the good-will and patronage that should have accrued to it. Respondents from time to time in the two years last past up to on or about October 7, 1922, advertised in said directory of the said Chesapeake & Potomac Telephone Company under some fifty odd additional names as set out next below for the purpose of preempting to themselves the use of the said names, within the City of Washington, in the District of Columbia, and of preventing other taxicabs companies from operating under or using any of the said names, A-Bee Taxi, Columbia Hgts. Taxi Service, Arcade Cab Service, Arcade Taxi, Arcade Taxicabs, Arcade Taxi Service, Bell Taxi, Bell Taxicabs, Bell Taxi Service, Blue & Gray Taxi, Blue Ribbon Taxi, Bring-You-Back-Taxi, Brown & Black Taxi, Brown Taxi, Cadillac Taxi Co., Central Taxi Co., Checker Taxicab Co., Checker Taxi Co., Circle Taxi Co., City Taxi Co., Colonial Taxi Co., ‘Continental Taxi, Crown-Taxi Co., Diamond Taxi Co., Domino Taxi Co., Ever-ready Taxi Co., Globe Taxi Co., Gray Taxi Co., Green & White, Hacks Taxi Co., Home James Taxi Co., Hudson Taxi Co., Irving St. Taxi Co., Keystone Taxi Co., Packard Taxi Co., Park Taxi Co., Park Taxi Service, Peoples Taxi, Peoples Taxi Co., Quaker Taxi,

Order. Br. T.C.

Quaker Taxi Co., Sunset Taxi Co., Red Checker Taxi Cos 1° Tak-a-Cab Co., Red Taxi, Take-U-There Taxi Co., Red Taxi Co., . Twentieth Century Taxi Co., Ring Taxi Co., Uneeda Taxi Co., Ritz Carlton Taxi Co., * White Taxi Co.

Star Taxi Co., On or about October 7, 1922, respondents ceased the use of certain of the trade names set out next above, and no longer advertises under said trade names, but advertises under the following: Arcade Taxi, Domino Taxi Co., Arcade Taxicabs, Park Taxi Co., Arcade Taxi Service, Peoples Taxi Co., Brown & Black Taxi, Quaker Taxi Co., Brown Taxi, Red Taxi, Checker Taxi Co., Red Taxi Co., Columbia Taxi, Ritz Carlton Taxi Co., Diamond Taxi Co., White Taxi Co.

Par. 7. A number of said names so listed by respondents are used by taxicab companies operating in various other cities of the United States and enjoy a large and valuable good-will in said cities. The use by respondents of the said names in the manner hereinbefore set out has the tendency and capacity to mislead and deceive the public, who are familiar with the said names so adopted by respondents, which are used in other cities, into the belief that the said names listed and advertised by respondents as aforesaid are taxi companies operated by the said taxi companies in other cities and thereby cause and induce the public to patronize the said taxicab service of respondent’s in such mistaken belief.

CONCLUSION.

The practices of respondents under the conditions and circumstances described in the foregoing findings as to the facts, are unfair methods 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, the answer of the respondents and agreed statement of facts filed herein, and the 473 Order, 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 ig now ordered, That the respondents, Fred A. Maltby and Clarence W. Maltby, their agents, representatives, servants and employees do cease and desist from directly or indirectly:

(1) Advertising or listing in the telephone book of the Chesapeake and Potomac Telephone Company, or in any other manner, or from Operating their said taxicab business in the City of Washington, District of Columbia, under the names of: (a) “ Yellow Bell Taxi Company ”

(6) “ Yellow Ford Taxi Company ”

(2) Operating, advertising or listing the same taxicab business under more than one name.

It .is further ordered, That the respondents, Fred A. Maltby and Clarence W. Maltby, shall within thirty (80) days after the service upon them of a copy of this order file with the Commission their answer in writing in setting forth in detail the manner and form in which they have complied with the order to cease and desist hereinbefore set forth.

Commissioner Thompson dissents.

20 28 Ward Baking Co ... Bread and cake ... Resale price maintenance ... do ... Do. 20 30 Western Clock Co ... Clocks ... Resale price maintenance: price discrimination .do ... Do. in violation of sec. 2 of the Clayton Act. 20 40 Colorado Milling & Elevator Co ... Flour ... Resale price maintenance ... do ... Do. 20 87 Crescent Manufacturing Co ... Baking powder, ... do ... do ... Do. spices, teas, coffees and flavoring extracts.

20 89 L. E. Waterman Co ... Fountain pens ... do ... do ... Do. 20 90 Cluett, Peabody & Co. (Inc.) ... Collars ... do ... do ... Do. 20 91 Massachusetts Chocolate Co ... Candy ... do ... do ... Do. 20 141 The Evans Dollar Pen Co ... Fountain pens ... do ... do ... Answer and stipulation.

20 167 United Electric Co ... Vacuum cleaners ... Resale price maintenance: prices, rebates, or .do ... Do. discounts conditioned on exclusive or tying Answer. contracts or dealings in violation of sec. 3 of the Clayton Act.

20 170 Kryptok Co., and Kryptok Sales Lenses ... Resale price maintenance ... do ... Do. Co.

¹ For cease and desist order against other respondents in the same case, see 4 F. T. C., p. 466 et seq. against the Beechnut Co., for the same cause having meanwhile been taken to the United States Supreme Court for final determination, and further proceedings herein having been suspended to await its decision, and the Supreme Court having thereafter decided said Beechnut case and set forth the law therein in an opinion (January 3, 1922, 257 U. S. 441, 42 Sup. Ct. 150).

Now, in view of said decision, and the lapse of time since the beginning of this proceeding, "It is hereby ordered, That the complaint herein be, and hereby is, dismissed without prejudice to the commencement of another proceeding by the Commission against this respondent."

Do.

CASES DISMISSED.

Cases in which orders for discontinuance or dismissal have been entered—Continued. | Date of order. | Docket No. | Respondents. | Commodities. | Charges. | Answer, stipulation, or trial. | Reasons for discontinuance or dismissal. | | July 20 | 171 | Goodyear Tire & Rubber Co | Tires, inner tubes, and accessories pertaining to the use thereof. | Resale price maintenance, misleading and false claims of services rendered in connection with the sale of products, imposing oppressive requirements upon dealer customers, and exclusive or tying contracts or dealings; price discrimination in violation of section 2, and prices, discounts, or rebates conditioned on exclusive or tying contracts or dealings in violation of sec. 3 of the Clayton Act. | Answer | Do. (See pp 482, 483.) | | 20 | 173 | D. M. Ferry & Co | Seeds | Resale price maintenance | do | Do. | | 20 | 182 | Hoover Suction Sweeper Co | Vacuum sweepers | do | do | Do. | | 20 | 183 | Vortex Manufacturing Co | Metal holders, paraffin cups, paraffin paper dishes, and similar products. | Resale price maintenance; prices and discounts conditioned on exclusive or tying contracts or dealings in violation of sec. 3 of the Clayton Act. | do | Do. | | 20 | 184 | Enders Sales Co. (Inc.) | Safety razors, and razor blades. | Resale price maintenance; price discrimination in violation of sec. 2 of the Clayton Act. | do | Do. | | 20 | 189 | H. L. Hildreth Co | Candy | Resale price maintenance | do | Do. | | 20 | 196 | De Miracle Chemical Co | Depilatories and other toilet specialties. | do | do | Do. | | 20 | 206 | Marinello Co. of Wisconsin; Marinello Co. of Illinois; Marinello School of Chicago; and School of Cosmetitians. | Cosmetics, toilet articles, toilet preparations, and similar products. | Resale price maintenance; tying or exclusive contracts or dealings; prices, discounts, or rebates conditioned on exclusive or tying contracts or dealings in violation of sec. 3 of the Clayton Act. | do | Do. | | 20 | 213 | American Thermos Bottle Co | Thermos bottles | Resale price maintenance; price discrimination in violation of sec. 2 of the Clayton Act. | do | Do. | | 20 | 217 | Klaxon Co | Warning horns for automobiles and other vehicles. | Resale price maintenance; tying or exclusive contracts or dealings; prices, rebates, or discounts conditioned on exclusive or tying contracts or dealings in violation of sec. 3 of the Clayton Act. | do | Do. | | 20 | 218 | Proctor & Gamble Co. and the Proctor & Gamble Distributing Co. | Soap, candles, oil, and glycerine. | Resale price maintenance; full line forcing | do | Do. | | 20 | 223 | The De Laval Separator Co | Cream separators | Resale price maintenance; exclusive or tying contracts or dealings in violation of sec. 3 of the Clayton Act. | do | Do. |

BE 237 | General Chemical Co..... aeenencee

AIZ

Buffalo Specialty Co...... evwecnes American Graphophone Co.: Co Jumbia Graphophone Co.: and Columbia Graphophone Slanufacturing Co.

Wm. Waltke & Co..... ces ceneeee High Rock Knitting Co...........

Curtis & Company Manufacturing Co., and Curtis Pneumatic Machinery Co.

J. H. Haney, W. A. McKey, and W. M. Dutton, copartners, doing business as J. M. Haney & 0.

Marshall Ojt Co., trading as Tungsten Manufacturing Co.

The Gates Rubber Co. and J. R.

Hunt & Wm. H. Klinefelter, co- Fartners, doing business as J. R. unt & Co.

Pennsylvania Salt Manufacturing 0.

The Upjohn Co. ........-.--065 ase The Ronald Press Co.............- The Sheets Elevator Co...........

L. Richardson, H. Smith Richardson, and L. Richardson, jr., copartners, doing business under the name and style of The Vick Chemical Co.

Baking powder.......{ Resale price maintenance. ...............0.6-- Liquid veneer, tire fluids, and similar products.

Talking machines and | Resale price maintenance. ......... ee eee teense records therefor.

Resale price maintenance; price discrimination in violation of sec. 2 of the Clayton Act. Soaps and toilet sun- |..... C6 dries. .

Knit underwear.......]..... (: ( been ce ween reece eee sence Compressors, outfits, | Resale price maintenance; price discrimination tanks, pneumatic and prices, rebates, or discounts conditioned mach finer y, and on exclusive or tying contracts or dealings, in other automobile ac- violation of secs. 2 and 3 of the Clayton Act, cessories. respectively.

Automobile tire | Resale price maintenance. ........... pw eeneeee pumps.

Spark plugs... sccece le dO. once c ene c erence meena nen ne neenseeeees Tires, fan belts, break |..... GO... s.eeee eee ees eee cece eee e cnet ee nnees linings, tire patches, and other automobile accessories.

Salt and lye.....- es ees 0: Ce eeeeenee Pharmaceutical sup-| Resale price maintenance; cumulative quanplies. tity discounts based on aggregate of year’s purchases.

Books and periodicals .| Resale price maintenance. ...........2.0020 20 Soaps, perfumes, and | Resale price maintenance and guarantee toilet preparations. against price decline. Poultry feed and simi- | Resale price maintenance. ..... face ae sereeeees lar products. , Proprietary remedies aod similar products. eee AO. . cavvcvenvccsescccccctecssseceseccesoes wanes dO... es eaeeeeonce Oe cenccvensee wens HO... ene eens Answer and hear- Answer and stipulation. ese GO. . cceeneeees wae GO... .enceeene ee (ee Da (Same as Docket No. 25.) Do.

Da Do.

Do Do.

*CUSSINSIA SASVO

o8P Cases in which orders for discontinuance or dismissal have been entered—Continued. | Date of order. | Docket No. | Respondents. | Commodities. | Charges. | Answer, stipulation, or trial. | Reasons for discontinuance or dismissal. | | 1922. July 24 | 353 | Domestic Engineering Co., Inc.; H. W. Arnold and S. A. Long, doing business as Arnold & Long, Distributors; Ashelman Brothers, Inc.; W. W. Barnett, doing business as Barnett Ranch Lighting & Appliance Co.; P. M. Bratten, doing business as P. M. Bratten & Co.; H. R. Colby; Henry R. Colby and M. A. Bridge, jr., doing business as C. & B. Electric Co.; Collins & Moore, Inc.; E. A. Cox and Hugh J. Cooper, doing business as Cox & Cooper Distributors; E. A. Cox and W. C. Dance, doing business as Cox & Dance, Distributors; Ivan L. de Jongh and W. L. Cochran, doing business as de Jongh & Cochran; The Del-Home Light Co., Inc.; Domestic Electric Appliance Co., Inc.; Domestic Electric Co., Inc. (incorporated in N. Y.); The Domestic Electric Co. (incorporated in Ga.); The Domestic Electric Co. (incorporated in Ala.); Electric Equipment Co., Inc. (incorporated in Okla.); Electric Equipment Co. (incorporated in Iowa); The Electric Farm Lighting Co., Inc.; George M. Foss; Paul D. Fugua, doing business as East Tenn. Electric Co.; W. P. Galloway Co., Inc.; W. F. Gray; The H. & S. Electric Co., Inc.; Joseph Herxstam; Home Electric Co., Inc.; Home Electric Equipment Co.; Home Electric Light & Power Equipment Co., Inc.; Independent Electric Light & Power Co., Inc.; E. L. Kruse; | Private electric lighting plants and accessories pertaining thereto. | Resale price maintenance; and tying or exclusive contracts or dealings in violation of sec. 3 of the Clayton Act. | Answer ... | "A complaint having been issued herein by the Federal Trade Commission including the charge of a violation of sec. 5 of the Federal Trade Commission Act declaring unlawful unfair methods of competition, by reason of the respondents, Domestic Engineering Co., Inc., et al., having adopted a policy of maintaining resale prices fixed by it, and the respondents having answered: and an order of the Commission in a proceeding brought by it against the Beechnut Co., for the same cause having meanwhile been taken to the United States Supreme Court for final determination, and further proceedings herein having been suspended to await its decision, and the Supreme Court having thereafter decided said Beechnut case and set forth the law therein in an opinion, Jan. 3, 1922, 257 U. S. 441; 42 Sup. Ct. 150.<br><br>"Now, in view of said decision, and the lapse of time since the beginning of this proceeding.<br><br>"It is hereby ordered, That the complaint herein be, and hereby is, dismissed without prejudice to the commencement of another proceeding by the Commission against these respondents." |

Oct. 21 515 M. L. Lesley; S. O. Lindeman, doing business as Home Light & Power Co.; Modern Appliance Co., Inc.; W. H. Moulton, J. J. Munsell; Claude Nolan; R. E. Parsons; J. J. Pocock; Pringle Matthews Co., Inc.; G. F. Schoneck; Stover Co., Inc.; Suburban Electric Development Co., Inc.; Suburban Lighting Corp.; R. F. Trant; R. F. Trant and J. L. Conover, doing business as Trant & Conover; E. L. Uncaper Co., Inc.; Charles E. Wagner, Inc.; and E. H. Walker. The Heller & Merz Co Dyeustuffs and chemicals. Commercial bribery Answer and trial. No reasons assigned. 21 905 Midvale Steel & Ordnance Co., Republic Iron & Steel Co., and Inland Steel Co Iron and steel products. Combining or merging or agreeing to combine or merge properties, with a dangerous tendency unduly to hinder or lessen competition and with an undue hindering and lessening of competition as a result if consummated, and with a dangerous tendency unduly to restrain trade and commerce and to create monopoly, and with the effect of unduly restraining trade and commerce, and tending to create a monopoly, if consummated, in that portion of the United States particularly served by the companies involved. "A formal statement having been filed with the Commission by Chadsbourne, Babbitt, and Wallace, attorneys for the respondents, stating that the proposed merger, consolidation, and combination charged in the complaint in this proceeding had been entirely abandoned and that all acts for the consummation of such merger, consolidation, and combination had been discontinued: It is ordered, That the complaint herein be, and the same is hereby, dismissed." 23 526 Louis Rosenthal, doing business under the name and style of United Chemical & Color Co Dyeustuffs and chemicals. Commercial bribery Trial No reasons assigned. 23 545 Samuel Abraham, doing business under the name and style of Abraham Bros Paints, varnishes and bindred products ... do Answer and trial. Do. 23 688 Reber Manufacturing Co Hosiery Misbranding and mislabeling Answer Respondent is not now engaged in business. 23 697 New York Hosiery Works ....do ....do Stipulation. Do. Nov. 4 536 G. H. Hammond Co Oleomargarine and butterine Exclusive or tying contracts or dealings in violation of sections 5 and 3 of the Federal Trade Commission and Clayton Acts, respectively. Answer No reasons assigned. 4 557 Morris & Co ....do ....do ....do Do. 4 558 Wilson & Co., Inc ....do ....do ....do Do. 6 499 The Bayer Co., Inc Aspirin False and misleading advertising ....do Do 6 662 Deep Wells Oil Co., George B. Mechem & Co., and George B. Mechem. Oil stocks ....do ....do Failure of proof.

CASES DISMISSED.

Cases in which orders for discontinuance or dismissal have been entered—Continued. | Date of order. | Docket No. | Respondents. | Commodities | Charges. | Answer, stipulation, or trial. | Reasons for discontinuance or dismissal. | | 1922. Nov. 22 | 761 | Prest-O-Lite Co., Inc. | Acetylene gas | Tying or exclusive contracts or dealings in violation of sections 5 and 3 of the Federal Trade Commission and Clayton Acts, respectively; resale price maintenance. | Answer and trial | No reasons assigned. | | 1923. Jan. 3 | 517 | The Franklin Import & Export Co., Inc. | Dyestuffs, chemicals, and similar products. | Commercial bribery | do | Do. | | 3 | 525 | New York Color & Chemical Co | do | do | do | Do. | | 4 | 395 | Ida Davis, doing business under the trade name and style of David Davis Sons. | Sponges | Adulterating | do | Do. | | 4 | 794 | Big Bear Oil Co., William G. Krepe Investment Co., & William G. Krepe. | Oil stocks | Advertising falsely and misleadingly | do | Failure of proof. | | Jan. 30 | 339 | The Pictorial Review Co. and Oklahoma Publication Co. | Magazines and periodicals. | Espying on or harassing competitors | Answer | No reasons assigned. | | 30 | 468 | H. A. Metz & Co., Inc. | Dyestuffs and chemicals. | Commercial bribery | Answer and trial | Failure of proof. | | 30 | 528 | Arkansas Distributing Co | Chemicals | do | do | No reasons assigned. | | 30 | 529 | Max B. Kaesche, doing business under the name and style of F. Bredt & Co. | Dyestuffs and chemicals. | do | do | Death of respondent. | | Feb. 3 | 831 | The Excelsior Shoe Co | Shoes | Advertising falsely and misleadingly and misbranding. | do | No reasons assigned. | | Feb. 5 | 891 | Bethlehem Steel Corporation and Lackawanna Steel Co. | Iron and steel products. | Agreeing to a combination of properties and businesses, with a dangerous tendency unduly to restrain trade and commerce and with the effect of so doing if consummated, and with the intent to monopolize commerce in certain sections and communities and with the effect of so doing if consummated. | Answer | Dismissed without prejudice; no reasons assigned. |

Appenvix J,

ACTS OF CONGRESS FROM WHICH THE COM-

MISSION DERIVES ITS POWERS.

FEDERAL TRADE COMMISSION ACT.

Approved Sept. 26, 1914.] [Ponrrc—No. 203—63p Conecress.] {Tl RR, 15613.) AN ACT To create a Federal Trade Commission, to define {ts 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 _ Five commie sioners. Apissi i inted by Preaibe composed of five commissioners, who shall be appointed pointed by Preat: by the President, by and with the advice and consent of With, ete. phot the Senate. Not more than three of the commissioners from | same 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 1This act has been annotated up to July 1, 1921, and may be found, 80 annotated, ia Volume III of the Commission's Reports, Reperted decisions of the courts for the period covered by this volume (May 22, 1922, te Feb. 13, 1923) and arising under this act are printed in full in Appendix II hereof (sce infra, p. 529 et seq.). Previoysly reported decisions will be found set forth in Appendix II of Volumes II, ITI, and IV of the Commigsion's Reports, It should be noted that the jurisdiction of the Commission ig Hmited by the “Packers and Stockyarda 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 jn effect the Federal Trade Commission shall have no power or jurisdiction se 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 {ts powers and

Sec. 1. CREATION AND ESTABLISHMENT OF THE COM-

MISSION—Continued. . each to be designated by the President, but their succes- Term, seven. years, sora 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 chonntmpan tobeshall succeed. The commission shall choose a chairman migaion, , 4 # ed Puruit other 470% its own membership. No commissioner shall engage business prokib-in any other business, vocation, or employment. Any commissioner may be removed by the President for in- Removal by efficiency, neglect of duty, or malfeasance in office. A President. vacancy in the commission shall not impair the right of impair exercise the remaining commissioners to exercise all the powers of of powers by re- oe maining. commis: the commission. meni The commission shall have an official seal, which shall Seal judicially a oe fi noticed. be judicially noticed.

See. 2, SALARIES. SECRETARY. OTHER EMPLOYEES.

EXPENSES OF THE COMMISSION. OFFICES.

say giavve SEO.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 see. 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 Seerctary of Agriculture, in the exercise of his duties hereunder, shall request of the said Federal Trade Commissjot that it make investigations and report in any case.” In connection with the history in Congress of the Federal Trade Commission Act, sce address of President Wilson delivered at a joint session on Jan, 20, 1914 (Congressional Record, vol. 51, pt. 2, pp. 1962-1064, 63d Cong., 2d sess.); report of Senator Cumming from the Committee on Interstate Commerce on Control of Corporations, Persons, and Firms en gaged in Interstate Commerce (Feb. 26, 1918, 62d Cong., 3d seas., Rept. No. 1826); Hearings on Interstate Trade Commission before Committee on Interstate and Foreign Commerce of the [ouse, Jan. 80 to Feb. 16, 1914, 63d Cong., 2d sess.; Interstate Trade, Hearings on Bills relating to Trust Legislation before Senate Committee on Interstate Commerce, 2 vole, 63d Cong., 2d sess.; report of Mr. Covington from the House Comniittee on Interstate and Foreign Commerce on Interstate Trade Commission (Apr. 14, 1914, 68d 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 18, 1914, 63d Cong., 2d sess, Rept. No. 597) and debates and speeches, among others, of Congressmen 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. 9180-9190; Mann against, part 15, pp- 14939-14940; Morgan, part 9, 8854-8857, 9063-9064, 14941-14943 (part 15); Sims for, 14940-14941; Stevena 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): 11232-11287, 11298-11302, 11600-11601 (part 12); Brandegee against, 12217-12218, 12220-12229, 12261~12262, 12410-12411, 12792-12804 (part 13), 13103-13105, 13299-13301; Clapp against, 11872-11873 (part 12). 13061-18065 (part 13), 18143-13146, 18301-13302; Cumming for, 11102- 11106 (part 11), 11879-11389, 11447-11458 (part 12), 11528-11539, commission shall appoint a secretary, who shall receive necibpointment of a salary of $5,000 a year, payable in like manner, and it ary, $5,000. shall have authority to employ and fix the compensation,, Other em: of such attorneys, special experts, examiners, clerks, and #xed by Gommisother employees as it may from time to time find necessary for the proper performance of its duties and as may be from time to time appropriated for by Congress, Except for sec- With the exception of the secretary, a clerk to each retary? commis commissioner, the attorneys, and such special experts and $53 5c clerks examiners as the commission may from time to time find grt, and, ex" necessary for the conduct of its work, all employees of the Peon my “nt commission shall be a part of the classified civil service, erblovees | part and shall enter the service under such rules and regulations as may be prescribed by the commission and by the Civil Service Commission.

All of the expenses of the commission, including all, Expenses of } } lowed a id necessary expenses for transportation incurred by the }ored sn, paid issi i i f itemized a commissioners or by their employees under their orders, of, itemized, ap in making any investigation, or upon official business in any other places than in the city of Washington, shall be allowed and paid on the presentation of itemized vouchers therefor approved by the commission, 12873~12875 (part 13), 12912-12924, 12987-12992, 13045-18052, 14768- 14770 (part 15); Hollis for, 11177-11180 (part 11), 12141-12149 (part 12), 12151-12152; Kenyon for, 13155-13160 (part 13); Lewis for, 11302-11307 (part 11), 12924-12983 (part 13); Lippit against, 11111- 11112 (part 11), 18210-13219 (part 13); Newlands for, 9930 (part 10), 10376-10378 (part 11), 11081-11101, 11106-11116, 11594-11597 (part 12); Pomerene for, 12870-12873 (part 18), 12993-12996, 13102-13103; Reed against, 11112-11116 (part 11), 11874-11876 (part 12), 12022- 12020, 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, 13050- 13061 (part 13), 13146-13148; Sutherland against, 11601-11604 (part 12), 12805-12817 (part 13), 12855-12862, 12980-12986, 13055-13058, 13109-13111: Thomas against, 11181-11185 (part 11), 11598-11600 (part 12), 12862-12869 (part 13), 12978-12980; Townsend agalust, 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., 24 sens.) § letter from the Commissioner of Corporations to the chairman of the Committee on Interstate Commerce, transmitting certain suggestions Telative 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, 6 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 sees.); brief by Georga Rublee relative to the court review in the bill (UW, 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 Vv. Gratz, 253 U. 8. 421, 429-442. (Seo case also In Vol. I of Commisston's Decisions, p. 564 at pp. 570-579.)

Sec. 2, SALARIES. SECRETARY. OTHER EMPLOYEES.

EXPENSES OF THE COMMISSION. OFFICES—Continued, mayo uitaie Until otherwise provided by law. the commission may offices, rent suitable offices for its use. coating ofse- ~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 Corr §=Suc, 8, That upon the organization of the commission porationse ab- . . A . sorbed by Com 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 cf Corporations shall be continued by the commission. Clerks, em- AJ] clerks and employees of the said bureau shall be ployees, records, papers, property, transferred to and become clerks and employees of the transferred to commission at their present grades and salaries. All Commission. 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 tho Secretary cf 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 ofice The principal office of the commission shall be in the in Washington, but Commission oj hj: ° . ae Sect else City of Washington, but it may meet and exercise all its where. powers at any other place. The commission may, by one M ecute; : : any Tiquiy anys OF more of its members, or by such examiners as it may where in United designate, prosecute any inquiry necessary to its duties States. . . in any part of the United States.

Sec, 4. DEFINITIONS.

Sec. 4. That the words defined in this section shall have 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 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.” corpora ted 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, ,,,,Docupentary and correspondence in existence at and after the passage of this Act.

“ Acts to regulate commerce” means the Act entitled,, Acts to rest; “An Act to regulate commerce,” approved February fourteenth, eighteen hundred and eighty-seven, and all Acts amendatory thereof and supplementary thereto. “ Antitrust acts” means the Act entitled “An Act to,4,A2titrert protect trade and commerce against unlawful restraints and monopolies,” approved July second, eighteen hundred and ninety;* 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!

Sec. 5. That unfair methods of competition in com- , Unies methods Merce are hereby declared unlawful.

The commission is hereby empowered and directed to peer eras prevent persons, partnerships, or corporations, except £n3,common car banks, and common carriers subject to the Acts to regulate commerce, from using unfair methods of competition in commerce.

‘For text of Sherman Act, see footnote on pp, 503-505. * 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. 489, ee,

Sec. 5. UNFAIR COMPETITION. COMPLAINTS, FIND-

INGS, AND ORDERS OF COMMISSION. APPEALS.

SERVICE—Continued.

Commission to iss] lev soso aimion to ‘Whenever the commission shall have reason to believe when untelr that any such person, partnership, or corporation has to public inter-bheen or is using any unfair method of competition in commerce, and if it shall appear to the commission that a proceeding by it in respect thereof would be to the inon ceepemune terest of the public, it shall issue and serve upon such per- Petite Of son, partnership, or corporation 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 pernaremmondent son, partnership, or corporation so complained of shall pear a, °* have the right to appear at the place and time so fixed 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 on tT law so charged in said complaint. ‘Any person, partnercation and good ship, or corporation may make application, and upon good cause shown may be allowed by the commission, to intervene and appear in said proceeding by counsel or in perertimony to person. The testimony in any such proceeding shall be writing and filed. reduced to writing and filed in the office of the commission. If upon such hearing the commission shall be of It method pro- the opinion that the method of competition in question is hibited, Commis- Ls. . . ey: sion 'to make prohibited by this Act, it shall make a report in writing 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 nN 1} . o 8 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 "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 Yf such person, partnership, or corporation fails or order. Application | to, Clreute 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 application 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 appli- Action by Court. Notice to i i i dent. Decation and transcript the court shall cause notice thereof resp ene me to be served upon such person, partnership, or corpora- Toditying, or settion and thereupon shall have jurisdiction of the proceed- ™ision’s order, ing 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,Gommdmions facts, if supported by testimony, shall be conclusive. sive,it supported If either party shall apply to the court for leave to adduce _ Introduction of additional eviys: eat «a 4aai tional eviadditional evidence, and shall show to the satisfaction dence, if Tearone of the court that such additional evidence is material and failure to adduce 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 May be taken to be taken before the commission and to be adduced upon sion. the hearing in such manner and upon such terms and conditions as to the court may seem proper. The commission mag omission may modify its findings as to the facts, or make new modified findings 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 decree tubject 10 final, except that the same shall be subject to review by tiorari, but otherthe 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,,pcution,o Te: cease and desist from using such method of competition 112,",,74ti0 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 com- ,,78,°% at Mission, 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 oourt ®t Apvene aside, or modify the order of the commission as in the case Cation by 1 of an application by the commission for the enforcement 89 m'misalows of its order, and the findings of the commission as to the conclusive. facts, if supported by testimony, shall in like manner be Conclusive, 80044°—21—vor 5——33 Sec. 5. UNFAIR COMPETITION, COMPLAINTS, FINDINGS, 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 shall in any wise relieve or absolve any person, partnership, or corporation from any liability under the antitrust acts.³ Liability under antitrust acts not affected. 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 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 corporation to be served; or (b) by leaving a copy thereof at the principal office or place of business of such person, 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 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. Personal; or At office or place of business; or By registered mail.

Verified return by person serving, and return post-office receipt, proof of service.

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. 502–505. As enumerated in last paragraph of sec. 4 of this act, see p. 403. 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.

(b) To require, by general or special orders, corpora-mul? Teaulte an: tions engaged in commerce, excepting banks, and com-reports froin eorbel) orations, except mon carriers subject to the Act to regulate commerce, or banka and com. mon carriers, any class of them, or any of them, respectively, to-file 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 be under oath, or ports and answers shall be made under oath, or otherwise, otherwise, a'nd led within such as the commission may prescribe, and shall be filed with reasonable period as commission the commission within such reasonable period as the com-may prescribe. mission may prescribe, unless additional time be granted in any case by the commission. - ? To i tigate,

(c) Whenever a final decree has been entered against, ,T9 investigate, any defendant corporation in any suit brought by the initiative or ap. United States to prevent and restrain any violation of the korney, General, antitrust Acts, to make investigation, upon its own initi-imal, Gesree em ative, of the manner in which the decree has been or is *™* *** being carried out, and upon the application of the Attorney General it shall be its duty to make such investigation, It shall transmit to the Attorney General a report To transmit ndings and recembodying its findings and recommendations as a result Torney to of any such investigation, and the report shall be made eral. public in the discretion of the commission.

(d) Upon the direction of the President or either 70 Investigate, on direction House of Congress to investigate and report the facts re- President or either House, allating to any alleged violations of the antitrust Acts® by leged. violations any corporation.

(e) Upon the application of the Attorney General to ange, investigate make recom- - dations, investigate and make recommendations for the readjust men lations, "on ment of the business of any corporation alleged to be vio- Attorney Gen. lating the antitrust Acts® in order that the corporation justment of busi may ‘thereafter maintain its organization, management, Violator of antiand conduct of business in accordance with law.

(f) To make public from time to time such portions of try make BU: c, as it deems t dient, : he information obtained by it hereunder, except trade expedient, por. Secrets and names of customers, as it shall deem expedient tion obtained. "For text of Sherman Act, see footnote on pp. 503-505. As enumerated in last Paragraph of sec, 4 of this act, see p. 493. Sec. 6. FURTHER POWERS—Continued. to cankereportsin the public interest; and to make annual and special gether with rec reports to the Congress and to submit therewith recomommendations for new legisla mendations for additional legislation; and to provide for pur provide for the publication of its reports and decisions in such form reports and de-and manner as may be best adapted for public informaelsions, : tion and use.

To classify corporation, and (g) From time to time to classify corporations and to requlations inte Taake rules and regulations for the purpose of carrying dental. . . futation of act, out the provisions of this Act. fone neste =(h) To investigate, from time to time, trade conditions ditions involving 5 5 ’ . “gs fortes ‘Cuie win and with foreign countries where associations, comvoice States 7e binations, or practices of manufacturers, merchants, or gree with ree traders, or other conditions, may affect the foreign trade dgemed advis 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.

teeoit may te Sec. 7. That in any suit in equity brought by or under mission. the direction of the Attorney General as provided in the antitrust Acts,? the court may, upon the conclusion of the testimony therein, if it shall be then of opinion that the To ascertain CO™MPlainant is entitled to relief, refer said suit to the and report an a’ issi 1 i and report an p- commission, as a master in chancery, to ascertain and of decree. report an appropriate form of decree therein. The com- Commission to mission shall proceed upon such notice to the parties and proceed on no- .

Fee to parties under such rules of procedure as the court may prescribe, and as prescribe: . ° » * bycourt, Excep-and upon the coming in of such report such exceptions tions. Proceed- ° . . ings as in other may be filed and such proceedings had in relation thereto equity causes. . .

“wy as upon the report of a master in other equity causes, but esc otet may the court may adopt or reject such report, in whole or in opt or rejec report in whole part, and enter such decree as the nature of the case may or in part. ar. . in its judgment require.

Sec. 8. COOPERATION OF OTHER DEPARTMENTS AND

BUREAUS!

whee {urniss Szo. 8. That the several departments and bureaus of President, + @¢- the Government when directed by the President shall furords, papers, and information, and nich the commission, upon its request, all records, papers, and employees. and information in their possession relating to any corporation subject to any of the provisions of this Act, and *Tor text of Sherman Act, see footnote on pp, 603-505, As enumerated in last paragraph of sec. 4 of this act, see p, 493, TProvisions and pefaltics 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, 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 eviamination, and the right to copy any documentary evidence and right dence of any corporation being investigated or proceeded to copy same. against; and the commission shall have power to require May require atby subpœna the attendance and testimony of witnesses and tendance of witthe production of all such documentary evidence relating nesses and proto any matter under investigation. Any members of the duction of evicommission may sign subpœnas, and members and ex- dence. aminers of the commission may administer oaths and af- Subpœnas, firmations, examine witnesses, and receive evidence. oaths, affirmations, examination 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 place in the United States, at any designated place of required from hearing. And in case of disobedience to a subpœna the any place in commission may invoke the aid of any court of the United United States. States in requiring the attendance and testimony of wit- Disobedience nesses and the production of documentary evidence. to a subpœna. Commission may invoke aid of any United States 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 disin case of contumacy or refusal to obey a subpœna issued obedience of subto any corporation or other person, issue an order requir- pœna, any dising such corporation or other person to appear before the trict court in commission, or to produce documentary evidence if so jurisdiction inordered, or to give evidence touching the matter in ques-volved may order tion; and any failure to obey such order of the court may obedience. be punished by such court as a contempt thereof. Disobedience thereafter punishable 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 trict courts of the United States shall have jurisdiction application of to issue writs of mandamus commanding any person or Attorney General corporation to comply with the provisions of this Act or to enforce comany order of the commission made in pursuance thereof. pliance with Act. The commission may order testimony to be taken by Commission deposition in any proceeding or investigation pending may order depounder this Act at any stage of such proceeding or investi-sitions at any 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. 169.

Sec, 9. EVIDENCE. WITNESSES. TESTIMONY. MAN-

DAMUS TO ENFORCE OBEDIENCE TO ACT—Continued. penny, be taken pation. Such depositions may be taken before any person designated by designated by the commission and having power to ad- Testimony toMinister oaths. Such testimony shall be reduced to writve neg ces ing by the person taking the deposition, or under his direction, and shall then be subscribed by the deponent. Appearance, Any person may be compelled to appear and depose and testimony, and duction of evi- i j prductionotevi-to produce documentary evidence in the same manner as compelled 8 ig witnesses may be compelled to appear and testify and Commission, produce documentary evidence before the commission as hereinbefore provided. samaines fees. Witnesses summoned before the commission shall be like | services in paid the same fees and mileage that are paid witnesses in cou. te, 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. teu eziminating_ No person shall be excused from attending and testifygence no excuseing or from producing documentary evidence before the testify or prO-commission or in obedience to the subpena 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 penbut naturalalty or forfeiture. But no natural person shall be prosebe roaece ed cuted or subjected to any penalty or forfeiture for or on matters involved. 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 subpena issued by it: Provided, That no natural person so ceneai*"? & testifying shall be exempt from prosecution and punishment for perjury committed in so testifying. See. 10. PENALTIES: ) pptllure to tee = Src. 10, That any person who shall neglect or refuse to duce documer attend and testify, or to answer any lawful inquiry, or to piender_ fubiet produce documentary evidence, if in his power to do s0, onment, or both. in obedience to the subpoena 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 Ang, 15, 1921, ch. 64, 42 Stat. 159. Any person who shall willfully make, or cause to be made, any false entry or statement of fact in any report required to be made under this Act, or who shall willfully make, or cause to be made, any false entry in any account, record, or memorandum kept by any corporation 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 refuse to submit to the commission or to any of its authorized agents, for the purpose of inspection and taking 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 States of competent jurisdiction, to a fine of not less than $1,000 nor more than $5,000, or to imprisonment for a term of not more than three years, or to both such fine and imprisonment. False entries, statements, or tampering with accounts, records, or other documentary evidence, or willful failure to make entries, etc., or Willful refusal to submit documentary evidence to Commission. Offender subject to fine or imprisonment, or both. If any corporation required by this Act to file any annual or special report shall fail so to do within the time 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 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 corporation 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 forfeitures. The costs and expenses of such prosecution shall be paid out of the appropriation for the expenses of the courts of the United States. Failure of corporation to file required report. Forfeiture for each day's continued failure. Recoverable in civil suit in district where corporation has principal office, or does business. Various district attorneys to prosecute for recovery. Any officer or employee of the commission who shall make public any information obtained by the commission without its authority, unless directed by a court, shall be deemed guilty of a misdemeanor, and, upon conviction thereof, shall be punished by a fine not exceeding $5,000, Unauthorized divulgence of information by employee of Commission punishable by fine or imprisonment or both. Not affected by this act.

“Antitrust laws.”

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, Sec. 11. Nothing contained in this Act shall be construed to prevent or interfere with the enforcement of the provisions of the antitrust Acts® 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?

[Approved Oct, 15, 1914.] (Pusric—No. 212—63p ConeREss.]

[H. R. 15657.]

AN ACY 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 assembled, That “antitrust laws,” as used herein, includes the Act entitled “An Act to protect trade and commerce against unlawful restraints and monopolies,” approved ° For text of Sherman Act, see footnote on pp. 503-505. As enumerated fn last paragraph of sec. 4 of this Act, see p. 493, 1'Thigs act has been annotated up to July 1, 1921, and may be found, g0 annotated, in Volume III of the Commission's Reports. Subsequent reported decisiong for the period covered by this and the preceding volume (July 1, 1921, to Feb. 13, 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. 42 et seq.); Sinclair Refining Co, v. Federal Trade Commiaston, 276 Fed. 686 (see opinion set forth in Appendix II of Volume IV at. 652 et xeq.): Auto Acetylene Light Co. v. Prest-O-Lite Co. Ine., 276 Fed. 537; Standard Fashion Co. vy. Magrane-Houston Co., 258 U. 8. 846, 42 Sup. Ct. 360, and United Shoe Machinery Corporation y, United States, 258 U. S. 451, 42 Sup, Ct. 363; Aluminum Co. of America vy, Federal Trade Commisaion, 284 Wed, 401 (see opinion set forth in Appendix JI of this volume at p. 529 et seq.); Standard Oil of N. J. et al. vy. Fedcral Trade Commission, 282 Fed. 81 (see opinion sct forth in Appendix II of this volume at p. 542 et seq.); and Federal Trade Commiszaion v. Curtis Publishing Co., 260 U, S. 568 (see opinion set forth in Appendix I! of this volume at p. 599 et seq.).

It should be noted in connection with this law— Tbat the so-called Shipplug Board Act (sec. 15, ch. 451, 64th Cong., ist 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 * *% %'3 That the jurisdiction of the Commixsion 1s limited by the ‘‘ Packers and Stockyards Act, 1921," approved Aug. 15, 1921, ch. 64, 42 Stat. 169, sec. 406 cf sald 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

CLAYTON ACT.

July second, eighteen hundred and ninety?; 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, 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. § 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 jn question, which relate to division of traffic, acquisition by a carrier of control of other carriers and consolidation of railroad systems or rail. roads, are concerned.

That Public No. 146, Sixty-seventh Congress, approved Feb. 8, 1922, 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:) *The Sherman Act (26 Stat. 209), which, as a matter of convenience, ig printed herewith. While the Act itself has not been amended, appropriations for the fiscal years ending June 80, 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., respectively), were Made contingent upon no part of the moneys belng— “Spent in the prosecution of any organization or individual for entering into any combination or agreement having in view the increasing of wages, Bhortening of hours or bettering the conditions of labor, or for any act done in furtherance thereof, not in itself unlawful: Provided further, That bo 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 @ falr and reasonable price for their products.” The act, omitting the usual formal “ Be it enacted,” ete., follows:

CONTRACTS, COMBINATIONS, ETC., IN RESTRAINT OF TRADE ILLEGAL, Section 1, Every contract, combination !n the form of trust or otherwise, or conspiracy, iu 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 live thousand Sec. 1. DEFINITIONS—Conttnued. 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, pennehton or 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 dollars, or by imprisonment not exceeding one year, or by both said punishments, in the discretion of the court.

PERSON MONOPOLIZING TRADH GUILTY OF MISDEMEANOR-—PENALTY, Snc, 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 flve 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, Sxc, 8. 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 sald punishments, in the discretion of the court. .

ENFORCEMENT.

Sac. 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, fo 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 auch 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’

Sec. 2. That it shall be unlawful for any person en- eqiilawtul where. . , . effect may be gaged in commerce, in the course of such commerce, either substantial lessen competi. directly or indirectly to discriminate in price between tion or tend to different purchasers of commodities, which commodities oly. ™ are sold for use, consumption, or resale within the United States or any Territory thereof or the District of Colum- ‘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 competition the court shall proceed, as soon as may be, to the hearing and Cetermination 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.

Szc. 5. Whenever it shall appear to the court before which any proceed- {ng under section four of this act may be pending, that the ends of justice Tequire that other parties should be brought before the court, the court May cause them to be summoned, whether they reside fn the district in which the court Js held or not; and subpenas to that end may be served. In any district by the marshal thereof, FORFRITORE OF PROPRBTY, Szc. 6, Any property owned under any contract or by any combination, Or pursuant to any conspiracy (and being the subject thereof) mentioned in gection 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 Jaw for the forfeiture, seizure, and condemnation of Property imported Jnto the United States contrary to law. BUITS—RECOVERY, Sac, 7, Any person who shall be injured in bis business or property by &ny 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 costa of suit, including & reasonable attorney's fee.

“ PERAON”’ OR “ PERSONS ” DEFINED, Suc, 8. That the word “person,” or “persons,” wherever used in this &ct 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 Jaws of any foreign country. * On provisions of the Shipping Board Act, Packers and Stockyards Act, 1921, and Transportation Act, Umiting the scope of the Clayton Act in certain cases, see second, third, and fourth paragrapha of the footnote 1 pp, 502-503 Sec. 2. PRICE DISCRIMINATION—Continued.

But permissible. , 7] 1 5 geet Permissible merce: Provided, That nothing herein contained shall ference in grade, : se. . . ference in gradeprevent discrimination in price between purchasers of tity, or in selling “ti. ‘ tity, of in eel commodities on account of differences in the grade, cont, or if made quality, or quantity of the commodity sold, or that makes ton, and only dus allowance for difference in the cost of selling or transportation, or discrimination in price in the same or different communities made in good faith to meet comvendor may ee. petition: And provided further, That nothing herein conera it not, in re tained shall prevent persons engaged in selling goods, wares, or merchandise in commerce from selecting their own customers in bona fide transactions and not in restraint of trade.

Sec. 3. TYING OR EXCLUSIVE LEASES, SALES OR CON.

TRACTS.

Unlawful where Sec, 3. That it shall be unlawful for any person eneffect may be to. . substantially gaged in commerce, in the course of.such commerce, to tion, lease or make a sale or contract for sale of goods, wares, 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.

See. 4. VIOLATION OF ANTITRUST LAWS—DAMAGES

TO PERSON INJURED.

pisy,weiasey Sec. 4. That any person who shall be injured in his busitrict court, and ness or property by reason of anything forbidden in the r threefold. . . . damages, includ-antitrust laws® may sue therefor in any district court ing cost of sult 0¢ the United States in the district in which the defendant resides or is found or has an agent, without respect 4On provisions of the Shipping Board Act, Packers and Stockyards Act, 1821, and Transportation Act, lImiting the scope of the Clayton Act in certain cases, see second, third, and fourth paragraphs of the footnote on pp. 502-503.

* For text of Sherman Act, see footnote on pp, 503-505. As enumerated fn Clayton Act, see first paragraph thereof on pp. 502-504, 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.

1 ~ , Prima faci.

Sec. 5. That a final judgment or decree hereafter ren- ,Primstecte evi, J: tm] 7: } ~s8ame defendant dered in any criminal prosecution or in any suit or pro-*® private litieae ceeding in equity brought by or on behalf of the United tion States under the antitrust ® laws to the effect that a defendant has violated said laws shall be prima facie evidence 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, jude. consent judgments or decrees entered before any testi-excepted. mony has been taken: Provided further, This section shall 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. auaning ot running o Whenever any suit or proceeding in equity or criminal statute ot leita prosecution is instituted by the United States to prevent, focct to "private restrain or punish violations of any of the antitrust laws, Tenis suspended the running of the statute of limitations in respect of go eyingUnited each and every private right of action arising under said *“* "*™* Jaws and based in whole or in part on any matter complained of in said suit or proceeding shall be suspended during the pendency thereof.

Sec, 6. LABOR OF HUMAN BEINGS NOT A COMMODITY

OR ARTICLE OF COMMERCE.

tt. Labor, agricul- Seo, 6. That the labor of a human being is not a com toatbor, sericul- Modity or article of commerce. Nothing contained in the cultural | greaniantitrust laws® shall be construed to forbid the existence members, organ: . . _ help and without and operation of labor, agricultural, or horticultural or- belp and without fanizations, instituted for the purposes of mutual help, affected by anti. rust laws with and not having capital stock or conducted for profit, or respect to, thelr to forbid or restrain individual members of such organi-jet zations from lawfully carrying out the legitimate objects *For text of Sherman Act, see footnote on pp, 563-505. As enumerated in Clayton Act, see first paragraph thereof on pp. 502-504,

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.’

Of other corpo- Sec. 7, That no corporation engaged in commerce shall ration, Prohibited where effect acquire, directly or indirectly, the whole or any part of may be to siantiaiy lessen the stock or other share capital of another corporation encompetition, restrain commerce, paged also in commerce, where the effect of such acquisia monopoly, tion may be to substantially Jessen competition between 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.

Ottwoormore No corporation shall acquire, directly or indirectly, the other corporations. Prohibit: whole or any part of the stock or other share capital of may be to sub-twO Or more corporations engaged in commerce where stantially lessen competition, | te the effect of such acquisition, or the use of such stock by or tend ta orente the voting or granting of proxies or otherwise, may be 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 excepted. ing such stock solely for investment and not using the 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 pro vent a corporation engaged in commerce from causing the Formation of formation of subsidiary corporations for the actual subsidiary corre carrying on of their immediate lawful business, or the mediate lawful natural and legitimate branches or extensions thereof, or cepted. 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 Jessen competition. "On provisions of the Shipping Board Act, Packera and Stockyards Act, 1921, and Transportation Act, limiting the scope of the Clayton Act in certain cases, see second, third, and fourth paragraphs of the footnote on pp, 502-603, It should be noted also that corporation& for export trade are excepted from the provisions of this section. (See p. 526, gee, 3.) Nor shall anything herein contained be construed to Common ear. riera excepted prohibit any common carrier subject to the laws to regu- with reterene fo late commerce from aiding in the construction of} ines where no branches or short lines so located as to become feeders to petition. 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 Extsting rights or impair any right heretofore legally acquired: Pro-tutiy acquired vided, That nothing in this section shall be held or con-net afect strued to authorize or make lawful anything heretofore prohibited or made illegal by the antitrust laws,* 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’?

Sec, 8. That from and after two years from the date,,Not fo serve of the approval of this Act no person shall at the same bank banking as. time be a director or other officer or employee of more conte, coin than one bank, banking association or trust company, SPS, and ur organized or operating under the laws of the United 925% g.°"°! States, either of which has deposits, capital, surplus, and undivided profits aggregating more than $5,000,000; and no private banker or person who is a director in any bank ® For text of Sherman Act, see footnote on pp. 5603-505, As enumerated in Clayton Act, see first paragraph thereof on pp. 502-504, *By the last paragraph of the Act of Sept. 7, 1916, amending the Federal Reserve Act, ch, 461, 89 Stat. 752 at 756, 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

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 alow eligibility United States. The eligibility of a director, officer, or employee under the foregoing provisions shall be deterrained 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 Jawful 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, organ- Bank, banking we ized OF operating under the laivs of the United States, sociation, or trust company locatedin any city or incorporated town or village of more than in city or incorporated town or two hundred thousand inhabitants, as shown by the last than $00,000" im preceding decennial census of the United States, shall 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 (ohare) stock ex- Shall apply to mutual savings banks not having a capital " 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 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 cepted. engaged In international or foreign banking, or banking in a dependency or insular possession of the United States," in the capital stock of which puch 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, 1021, and Transportation Act, limiting the scope of the Clayton Act in certain cases, see second, third, and fourth paragraphs of the footnote on pp. 502-503, a director of class A of a Federal reserve bank, as defined, Alas iirector in the Federal Reserve Act from being an officer or bank excepted, director or both an officer and director in one member bank: And provided further, That nothing in this Act,,Private banker shall prohibit any private banker or any officer, director, 72m>er bani oF or employee of any member bank or class A director of Myf pith a Federal reserve bank, who shall first procure the consent $72), Reserve of the Federal Reserve Board, which board is hereby au- hn, to, other thorized, at its discretion, to grant, withhold, or revoke Suppo such consent, from being an officer, director, or employee 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- | Content may be cured before the person applying therefor has been plicant elected elected as a class A director of a Federal reserve bank or, as a director of any member bank.?° That from and after two years from the date of tho,,% ott, xe approval of this Act no person at the same time shall be ony or previ. a director in any two or more corporations, any one of corporations if which has capital, surplus, and undivided profits aggre- 8,74, undiviied gating more than $1,000,000, engaged in whole or in part (eo,o¢o. 305 in commerce, other than banks, banking associations, ¢}iminsiion of trust companies and common carriers subject to the Act Sfisoent would to regulate commerce, approved February fourth,“ 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? The eligibility of a director 420m eligibility under the foregoing provision shall be determined by the 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.

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. 206, 4 For text of Sherman Act, see footnote on pp. 503-505, Ag enumerated in Clayton Act, see first paragraph thereof on pp. 502-504, 80044°—24—yor 5——34

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.

‘eligibility at When any person elected or chosen as a director or aver in é officer or selected as an employee of any bank or other year. 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 on ienalty. Ane fined not less than $500 or confined in the penitentiary or both. “not less than one year nor more than ten years, or both, in the discretion of the court. in ay, prosecute Prosecutions hereunder may be in the district court of for district where the United States for the district wherein the offense may offense commit: have been committed. stgiutisdiction of ‘That nothing in this section shall be held to take away affected Their or impair the jurisdiction ‘of the courts of the several gmenta a bar, ; to prosecution 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,

Sec. 10. LIMITATIONS UPON DEALINGS AND CON-

TRACTS OF COMMON CARRIERS.

Seo, 10. That after two years from the approval of this,,,Deslings in se, 1; contracts f ° Act no common carrier engaged in commerce shall have contracts for conany dealings in securities, supplies or other articles of greeting more na 50,000 commerce, or shall make or have any contracts for con- is? 870.000 8 struction or maintenance of any kind, to the amount of 12, 08 director, more than $50,000, in the aggregate, in any one year, with sezrer slso di, another corporation, firm, partnership or association pier party ot when the said common carrier shall have upon its board iter 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 piaaing to be carrier, to be ascertained by competitive bidding under $e? "teguiation regulations to be prescribed by rule or otherwise by the Perste te bom: Interstate Commerce Commission. No bid shall be re- merece ceived unless the name and address of the bidder or the Hm’ tad names and addresses of the officers, directors and general %™°*™* ** 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 tempting to, pre shall do any act to prevent free and fair competition competition in among the bidders or those desiring to bid shall be punished as prescribed in this section in the case of an officer or director.

Every such common carrier having any such transac- | Carrle= to re tions or making any such purchases shall within thirty hereunder to, Indays after making the same file with the Interstate Commerce Commis. merce Commission a full and detailed statement of the 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 Jaw has been snd its Onn, find: Violated in and about the said purchases or transactions General. it shall transmit all papers and documents and its own views or findings regarding the transaction to the Attorney General.

Sec. 10. LIMITATIONS UPON DEALINGS AND CON-

TRACTS OF COMMON CARRIERS—Continued.

Misdemeanor Jf any common carrier shall violate this section it shall for director, etc., knowingly vot? he fined not exceeding $25,000; and every such director, ete, in violation 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 Penalty. be fined not exceeding $5,000, or confined in jail not exceeding one year, or both, in the discretion of the court. exincctive, date ~The effective date on and after which the provisions 1, 1021, 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, Except as tonineteen hundred and twenty-one: Provided, That such corporations or- . . . ganied after extension shall not apply in the case of any corporation, organized after January twelfth, nineteen hundred and eighteen.

Sec. 11. JURISDICTION TO ENFORCE COMPLIANCE.

COMPLAINTS, FINDINGS, AND ORDERS, APPEALS.

SERVICE.”

requrfdiction’ss =Sro, 11. That authority to enforce compliance with licable vested sections two, three, seven and eight of this Act by the per- Interstate Com-sons respectively subject thereto is hereby vested: in the merce Commis: sion; Interstate Commerce Commission where applicable to Federal Reserve common carriers, in the Federal Reserve Board where ap- Board; and plicable to banks, banking associations and trust comcontders! Trade Hanies, and in the Federal Trade Commission where applicable to all other character of commerce, to be exercised as follows: pacrd'tewsce Whenever the commission or board vested with jurisfomeaea 2, 8,diction thereof shall have reason to believe that any 7, or 8 viowte’, person is violating or has violated any of the provisions pith notice of of sections two, three, seven and eight of this Act, it shall sondent or de 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 Above paragraph, asec, 501 of the Transportation Act, Feb. 28, 1920, ch, 91, 41 Stat. 456 at 409.

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 second, third, and fourth paragrapha of the footnote on pp. 502-503. complained of shall have the right to appear at the place hanmpondent | to and time so fixed and show cause why an order should pear and show not be entered by the commission or board requiring such person to cease and desist from the violation of the law so charged in said complaint, Any person may make ap- mua RST vention plication, and upon good cause shown may be allowed te4feor good by the commission or board, to intervene and appear in said proceeding by counsel or in person. The testimony,,zrenerint of in any such proceeding shall be reduced to writing and ‘le. filed in the office of the commission or board. If upon such hearing the commission or board, as the case may be, 1,47 c#8* 0! vic- Shall be of the opinion that any of the provisions of said sion,or board to sections have been or are being violated, it shall make a Port stating And report in writing in which it shall state its findings as to te 8nd serve or, the facts, and shall issue and cause to be served on such desist on respondperson 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, Commision or shall have been filed in a circuit court of appeals of the ify 9 set aside United States, as hereinafter provided, the commission transcript of reoor board may at any time, upon such notice and in such Cult Court of Apmanner 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,, 17, case of dis: the commission or board while the same is in effect, the orde*, commis: commission or board may apply to the circuit court of may apply toch appeals of the United States, within any circuit where Port op carder the violation complained of was or is being committed or inf, He, tn 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 noone, to cause filing of the application and transcript the court shall be served ont. hay to cause notice thereof to be served upon such person andbave qhower to thereupon shall have jurisdiction of the proceeding and firming, modityof the question determined therein, and shall have power side order of 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-

Sec. 11. JURISDICTION TO ENFORCE COMPLIANCE.

COMPLAINTS, FINDINGS, AND ORDERS. APPEALS.

SERVICE—Continued, Findings ot <1 i issi comndingsofsion or board. The findings of the commission or board fr supported "by 28 to the facts, if supported by testimony, shall be contestimony. clusive. If either party shall apply to the court for leave adgtreduction of to adduce additional evidence, and shall show to the sata dc 1 ovis: “ys. . dence may bever-isfaction of the court that such additional evidence is cation, and show- i gation, and chow. material and that there were reasonable grounds for the ground for fail-failure to adduce such evidence in the proceeding before 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 bow gmmission or seem proper. The commission or board may modify its Aedinc, nevifed findings as to the facts, or make new findings, by reason son thereo!. 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 feview upon cer: judgment and decree of the court shall be final, except wise final. that the same shall be subject to review by the Supreme Court upon certiorari ag provided in section two hundred and forty of the Judicial Code.

Petition by re Any party required by such order of the commission or yiew order to board to cease and desist from a violation charged 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 or board be set aside. A To be served on COPY Of such petition shall be forthwith served upon the £ommtecion commission or board, and thereupon the commission or en? “fie board forthwith shall certify and file in the court a tranecrint of ree: transcript of the record as hereinbefore provided. Upon the filing of the transcript the court shall have the same conte adigton st jurisdiction to affirm, set aside, or modify the order of the same ae on appll-commission or board ag in the case of an application by mission or board 4)@ commission or board for the enforcement of its order, fr, porrds net 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 LHe jurisdiction of the circuit court of appeals of the Court of Appeals [Inited States to enforce, set aside, or modify orders of exclusive. . . the commission or board shall be exclusive. 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 board or the judgment of the court to enforce the same shall in any wise relieve or absolve any person from any liability under the antitrust Acts.¹⁴ Proceedings to have precedence over other cases, and to be expedited. Liability under antitrust acts not affected. Complaints, orders, and other processes of the commission or board under this section may be served by anyone duly authorized by the commission or board, either (a) by delivering 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 corporation to be served; or (b) by leaving a copy thereof at the principal office or place of business of such person; or (c) by registering and mailing a copy thereof addressed to such person at his principal office or 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. Service of commission's or board's complaints, orders, and other processes. Personal; or At office or place of business; or By registered mail.

Verified return of person serving, and return post-office receipt, proof of service. SEC. 12. PLACE OF PROCEEDINGS UNDER ANTITRUST LAWS. SERVICE OF PROCESS. SEC. 12. That any suit, action, or proceeding under the antitrust laws¹⁴ against a corporation may be brought not only in the judicial district whereof it is an inhabitant, but also in any district wherein it may be found or transacts business; and all process in such cases may be served in the district of which it is an inhabitant, or wherever it may be found. Proceeding may be instituted or process served in district of which corporation 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. 503-505. For Antitrust Acts as enumerated in Clayton Act, see first paragraph thereof on pp. 502-504.

Sec.13. SUBPCENAS FOR WITNESSES IN PROCEEDINGS

BY OR ON BEHALF OF THE UNITED STATES UNDER

ANTITRUST LAWS—Continued.

M int is} : 18 . ang dietrict, poe Dal, arising under the antitrust laws** may run into any iseion of permiseion of other district: Provided, That in civil cases no writ of sary in civil cases subpoena shall issue for witnesses living out of the disif witness lives t of district ¢)-3 1; 1 1 out of district trict in which the court is held at a greater distance than 100 miles distant. ong hundred miles from the place of holding the same 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..

na aindviie, Sec. 14, That whenever a corporation shall violate any orca» © of the penal provisions of the antitrust laws,!* such violation 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, tinetion shall be deemed a misdemeanor, and upon conviction or ba." 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 District ator. and restrain violations of this Act, and it shall be the neys, under ai-duty of the several district attorneys of the United States, rey General, toin their respective districts, under the direction of the ings Proeees: Attorney General, to institute proceedings in equity to Proceedin may oe gear prevent and restrain such violations. Such proceedings of “petition ret may be by way of petition setting forth the case and praycase, ete, ing that such violation shall be enjoined or otherwise pro- Aiter due no- hibited. When the parties complained of shall have been tice, Cour roceed to, hears duly notified of such petition, the court shall proceed, as ni n nation a soon a SOON AS TAY be, to the hearing and determination of the may be +a Pending pett.c#8¢; and pending such petition, and before final decree, ti instituti tion instituting the court may at any time make such temporary restrainposer estan ing order or prohibition as shall be deemed just in the ing order or pro: premises, Whenever it shall appear to the court before which any such proceeding may be pending that the ends 13 For text of Sherman Act, see footnote on pp. 503-505. Tor Antitrust Acts as cnoumerated in Clayton Act, see first paragraph thereof on pp. 502-504. of justice require that other parties should be brought Court may sumbefore the court, the court may cause them to be summon other parmoned whether they reside in the district in which the ties. court is held or not, and subpoenas 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., in any court of the United States having jurisdiction on same condiover the parties, against threatened loss or damage by a tions and princiviolation of the antitrust laws,¹⁶ including sections two, ples as other inthree, seven and eight of this Act, when and under the junctive relief same conditions and principles as injunctive relief against by courts of threatened conduct that will cause loss or damage is equity against granted by courts of equity, under the rules governing threatened consuch proceedings, and upon the execution of proper bond duct that will against damages for an injunction improvidently granted cause loss or and a showing that the danger of irreparable loss or dam-damage. age is immediate, a preliminary injunction may issue: Provided, That nothing herein contained shall be con- Preliminary instrued to entitle any person, firm, corporation, or associ-junction may isation, except the United States, to bring suit in equity for sue upon proper injunctive relief against any common carrier subject to bond and showthe provisions of the Act to regulate commerce approved ing. February fourth, eighteen hundred and eighty-seven, in But United respect of any matter subject to the regulation, supervi- States alone may sion, or other jurisdiction of the Interstate Commerce sue for injunc- Commission. tive relief against common carrier subject to Act to Regulate Commerce.

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 appear from specific facts shown by affidavit or by the in absence of a verified bill that immediate and irreparable injury, loss, showing of imor damage will result to the applicant before notice can mediate and irbe served and a hearing had thereon. Every such tem-repairable injury porary restraining order shall be indorsed with the date or loss. and hour of issuance, shall be forthwith filed in the Temporary reclerk's office and entered of record, shall define the in- straining order, to show date and hour of issue, define injury, etc.

¹⁶ For text of Sherman Act, see footnote on pp. 503-505. For Antitrust Acts as enumerated in Clayton Act, see first paragraph thereof on pp. 502-504.

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 promt, ‘abe granted without notice in the contingency specified, disposed ot niethe matter of the issuance of a preliminary injunction 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 move S50- Iutlon ot modi restraining order the opposite party may appear and 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. acer 735.0% Section two hundred and sixty-three of an Act entitled pealed, “An Act to codify, revise, and amend the laws relating to the judiciary,” approved March third, nineteen hundred and eleven, is hereby repealed. atc? ™°* Nothing in this section contained shall be deemed to alter, repeal, or amend section two hundred and sixtysix of an Act entitled “An Act to codify, revise, and amend the Jaws relating to the judiciary,” approved March third, nineteen hundred and eleven.

Sec. 18. NO RESTRAINING ORDER OR INTERLOCUTORY

ORDER OF INJUNCTION WITHOUT GIVING SECURITY.

viet Pt Seo, 18, That, except as otherwise provided in section of this sc =: 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, 52]

Sec. 19. ORDERS OF INJUNCTION OR RESTRAINING

ORDERS—REQUIREMENTS.

Src. 19, That every order of injunction or restraining Must set forth Teasons, be speorder shall set forth the reasons for the issuance of thecific. and desame, shall be specific in terms, and shall describe in rea-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 pinging only the suit, their officers, agents, servants, employees, and one wiih’ oar attorneys, or those in active concert or participating with °™ * 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.

Seo, 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 sue property, or to a property right, of the party making the to prevent inven. application, for which injury there is no adequate remedy “"”* “""” at law, and such property or property right must be. Threatened property or prop- . . . yo. oo, « ap, Property OF propdescribed with particularity in the application, which erty Fights, must must be in writing and sworn to by the applicant or by pvacticularity. his agent or attorney.

And no such restraining order or injunction shall pro- , Not to prohibit any personor perhibit any person or persons, whether singly or in concert, gone from termi: inati i tion of loyfrom terminating any relation of employment, or from ton, of employ: ceasing to perform any work or labor, or from recommending | others mending, advising, or persuading others by peaceful mean so to do, means so to do; or from attending at any place where 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,

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 paragrap not to be consid: fied in this paragraph be “considered or held to be violaered violations of any law of thetions 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.

Seo. 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, iiact done also act or thing so done by him be of such character as to contense under laws stitute also a criminal offense under any statute of the Thidreon titer United States, or under the laws of any State in which which comrr. . . eetded gine, the act was committed, shall be proceeded against for his hereinafter pro said contempt as hereinafter provided.

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 puilty of such contempt, the court or judge thereof, or than ene, why any judge therein sitting, may issue a rule requiring the should not be said person so charged to show cause upon a day certain 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 reconrial it anered turn, in the judgment of the court, the alleged contempt pgientuen, 4 be not sufficiently purged, a trial shall be directed at 0 time and place fixed by the court: Provided, however, 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 may issue against his person to compel an answer, and in make return. Atcase of his continued failure or refusal, or if for any tachment against reason it be impracticable to dispose of the matter on the person. 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 It body corpocorporate, an attachment for the sequestration of its rate, attachment property may be issued upon like refusal or failure to for sequestration answer. of its property.

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, upa jury; in which latter event the court may impanel a on demand of acjury from the jurors then in attendance, or the court or cused, by jury. 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 may be, to the practice in criminal cases prosecuted by in criminal cases indictment or upon information. prosecuted by indictment or upon 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, court. Such fine shall be paid to the United States or to or both. the complainant or other party injured by the act confine paid to stituting the contempt, or may, where more than one is so United States or damaged, be divided or apportioned among them as the complainant or court may direct, but in no case shall the fine to be paid other party into the United States exceed, in case the accused is a terested. If acnatural person, the sum of $1,000, nor shall such impris-cused natural onment exceed the term of six months: Provided, That in person, fine to any case the court or a judge thereof may, for good cause United States not shown, by affidavit or proof taken in open court or before exceed $1,000. such judge and filed with the papers in the case, dispense Court or judge with the rule to show cause, and may issue an attachment may dispense for the arrest of the person charged with contempt; in with rule and iswhich event such person, when arrested, shall be brought sue attachment before such court or a judge thereof without unnecessary for arrest. delay and shall be admitted to bail in a reasonable penalty Accused to be for his appearance to answer to the charge or for trial for brought before the contempt; and thereafter the proceedings shall be the judge promptly same as provided herein in case the rule had issued in the and admitted to first instance. bail. Proceedings thereafter same as if rule had issued.

Sec. 23. EVIDENCE. APPEALS.

Evidence may Sec. 23. That the evidence taken upon the trial of any be preserved by persons so accused may be preserved by bill of exceptions, bill of exceptions.

Judgment re- and any judgment of conviction may be reviewed upon viewable upon writ of error in all respects as now provided by law in writ of error. 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 Act, may be punished in conformity to the usages at law equity. 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.

WEBB ACT.

[Approved Apr. 10, 1918,] [Pustic—No, 126—65rn Conarzss.] 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. . 2 the United wherever used in this Act mean trade or commerce among States” the several States or in any Territory of the United States, or in the District of Columbia, or between any such Territory and another, or between any such Territory or Territories and any State or States or the District of Columbia, or between the District of Columbia and any State or States, That the word “Association” wherever used in this Act means any corporation or combination, by contract or otherwise, of two or more persons, partnerships, or Corporations.

Sec. 2. ASSOCIATION FOR OR AGREEMENT OR ACT

MADE OR DONEIN COURSE OF EXPORT TRADE—STATUS

UNDER SHERMAN ANTITRUST LAW.

Sxc. 2. That nothing contained in the Act entitled “ An, Association not Act to protect trade and commerce against unlawful re- gaged In export straints and monopolies,” approved July second, eighteen trade solely. hundred and ninety,? shall be construed as declaring to he illegal an association entered into for the sole purpose of engaging in export trade and actually engaged solely in “Association.”

+ * With the exception of a reference thereto in the case of United States

V. United States Steet Corporation, 251 U: 8S. 417 at 433, and in Ex Parte mar, 274 Fed. 160 at 171, this act appears as yet neither to have been Involvea in nor referred to in any reported case. For text of Sherman Act, see footnote on pp. 503-505.

Sec. 2, ASSOCIATION FOR OR AGREEMENT OR ACT

MADE OR DONE IN COURSE OF EXPORT TRADE—

STATUS UNDER SHERMAN ANTITRUST LAW—Continued. j. non eenereemer such export trade, or an agreement made or act done in in festrait' ofthe course of export trade by such association, provided United States, er naeanenan;

United States, or such association, agreement, or act is not in restraint of trade of any do- trade within the United States, and is not in restraint of tor, and the export trade of any domestic competitor of such astion does noi sociation: And provided further, That such association artificially or inartifcially er in does not, either in the United States or elsewhere, enter hance depress: : prices of, or eu: into any agreement, understanding, or conspiracy, or do tantially lessen. eeantialty on er any act which artificially or intentionally enhances or de restrain trade i in i presses prices within the United States of commodities class exported, ‘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.

Seo. 3. That nothing contained in section seven of the Act entitled “An Act to supplement existing laws against lawful under unlawful restraints and monopolies, and for other purayton Act un- 2 . less effect may be poses,” approved October fifteenth, nineteen hundred to restrain trade or tubstantially and fourteen,? shall be construed to forbid the acquisiwithin United tion 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.

See, 4. FEDERAL TRADE COMMISSION ACT EXTENDED

TO EXPORT TRADE COMPETITORS.

So, 4. That the prohibition against “unfair methods of competition” and the remedies provided for enforcing said prohibition contained in the Act entitled “An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes,” approved September twenty-sixth, nineteen hundred and fourteen,‘ shall be construed as extending to unfair methods of competition used in export trade against competitors engaged in ex- ——— *See ante, p. 502 et seq.

“See ante, p. 489 et seq. ituti ir FE though port trade, even though the acts constituting such unfair acts "Pn, though methods are done without the territorial jurisdiction of done without territorial jurisdicthe United States. tLon of United

Sec. 5. OBLIGATIONS OF EXPORT TRADE ASSOCIA-

TIONS UNDER THIS ACT. PENALTIES FOR FAILURE TO

COMPLY. DUTIES AND POWERS OF COMMISSION, iati in Export trade Src, 5. That every association now engaged solely in, Export trade export trade, within sixty days after the passage of thiscorporations _ to Act, and every association entered into hereafter which Eederal | Trade commission showengages solely in export trade, within thirty days after ins location of offices, names, and its creation, shall file with the Federal Trade Commis-addresses of oft. cers, etc, and sion a verified written statement setting forth the loca- sls0 “articles ot neorporation or tion of its offices or places of business.and the names and contract of assoaddresses 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 com- ,_7e furnish also. oe. ; . . nformation as to mission such information as the commission may require organization, as to its organization, business, oonduct, practices, man-pemesey ete agement, and relation to other associations, corporations, partnerships, and individuals. Any association which Shall fail so to do shall not have the benefit of the pro- ,,%penalties, loss visions of section two and section three of this Act, and 2 #248 and fine. 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,pistrict ator: duty of the various district attorneys, under the direction fr, recovery of 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, 800-144 °-—24—vo1, 5

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 inves tigat. i iati investigate treason to believe that an association or any agreement artificial or inten-made or act done by such association is in restraint of tional enhanceron of price oF trade within the United States or in restraint of the extubstential_less- port trade of any domestic competitor of such association, tition by associa or that an association either in the United States or elsewhere 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 mend fadjut.into the alleged violations of law. Upon investigation, ment in case of if it shall conclude that the law has been violated, it may make to such association recommendations for the readjustment of its business, in order that it may thereafter maintain its organization and management and conduct its inae arefet rd business in accordance with law. If such association fails Torey Gong to comply with the recommendations of the Federal Trade ton cociation fails Commission, said commission shall refer its findings and recommendation. recommendations to the Attorney General of the United States for such action thereon as he may deem proper. gino mmatucn For the purpose of enforcing these provisions the Federa ay under Ked-eral Trade Commission shall have all the powers, so far Fon oriaabie 2S applicable, given it in “An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes,” § Approved, April 10, 1918.

*See ante, p. 489 et seq.

← 5 F.T.C. 465