Clayton Act

Text (OCR of the scan; may contain errors)

COMPLAINT IN THE MATTER OF THE ALLEGED VIOLATION OF SECTION 5 OF

AN ACT OF CONGRESS APPROVED SEPTEMBER 26, 1014.

Docket 1069—October 30, 1923.

SYLLABUS.

Where a corporation under the name “U-Glu, Inc.” manufactured and sold a millinery glue packed and marketed in cans the labels of which prominently displayed its registered trade-mark consisting of the word “ U-Glu” surrounded by a wreath In connection with the word “ Trade-Mark”, which labels also contained a statement in respect of the purposes, characteristics, and use of said product; and thereafter a competitor, which had never registered any trade name or trade-mark with the United States Patent Office,

(a) Adopted and placed the name “Glu” surrounded by a wreath, in connection with the words “Trade-Mark", upon the labels of its product, which it marketed and sold in containers similar in shape and size to those of said corporation; and “(b) Used labels which also in size and design, in the use of a practically identical statement of purposes, characteristics and use, and in the arrangement thereof upon the labels, closely resembled those of said corporation:

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

COMPLAINT.

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

ParacraPy 1, Respondents are partners doing business under the trade name and style “Peruvian Rubber Cement Company” with their principal place of business in the City and State of New York. They are engaged in the manufacture of a certain glue or cement, 506 Complaint. hereinafter called millinery glue, adapted for and used in the manufacture of millinery, and the sale of said millinery glue to persons, partnerships and corporations engaged in the millinery trade, including wholesalers and retailers of millinery supplies, and located at points in the various States of the United States. They cause said product when so sold to be transported from their aforesaid place of business in the City and State of New York into and through other States of the United States to said purchasers at their respective points of location. In the course and conduct of their said business respondents are in competition with other individuals, partnerships and corporations engaged in the manufacture and/or sale of millinery glue and similar products in interstate commerce.

Par. 2, Among the aforesaid competitors of respondents is U-Glu, Incorporated, a corporation organized under the laws of the State of New York with its principal place of business in the City of New York in said State. Said competitor is hereinafter referred to as the “corporation.” For more than two years last past the corporation has manufactured and sold in interstate commerce, and still manufactures and so sells, a millinery glue named by the corporation “U-Glu.” During said time the corporation has used as a trademark under and in connection with which to market its said millinery glue, a device consisting of the word U-Glu surrounded by a wreath in connection with the words “trade-mark.” ‘During aforesaid time the corporation has packed and marketed its said millinery glue in cans upon which it has caused to be placed certain labels bearing the word U-Glu and aforesaid trademark prominently displayed together with certain statements and assertions concerning the purposes to which said millinery glue is adapted, certain characteristics possessed by it and directions for its use. The corporation still markets its said millinery glue packed and labelled as above set out.

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

Findings. 6F.T.C. poration. Respondents further caused to be printed upon their said labels certain statements and assertions concerning the purposes to which their said millinery glue is adapted, certain characteristics possessed by it and directions for its use, all practically identical with the statements appearing upon the labels of the corporation as set out in paragraph 2 hereof. Respondents still market their said millinery glue packed and labeled as above set out.

Par. 4. The aforesaid labels attached by respondents to the cans in which they market their millinery glue, all as set out in paragraph 3 hereof, have the capacity and tendency to mislead and deceive the millinery trade and other purchasers and users of millinery glue into the erroneous belief that the millinery glue manufactured and sold by respondents is the millinery glue manufactured and sold by the corporation, and to cause the millinery trade and said other purchasers and users, acting in said belief, to purchase the millinery glue of respondents as and for the millinery glue of the corporation.

Par. 5. The above alleged acts and things done by respondents are all to the prejudice of the public and of respondents’ competitors and constitute unfair methods of competition in commerce within the intent and meaning of Section 5 of an Act of Congress entitled, “An Act to create a I'ederal Trade Commission, to define its powers and duties, and for other purposes,” approved September 26, 1914.

REPORT, FINDINGS AS TO THE FACTS, AND ORDER.

Pursuant to the provisions of an Act of Congress approved September 26, 1914, the Federal Trade Commission issued and served a complaint upon the respondents, Herman M. Neuschatz and I. M. TIalpern, copartners doing business under the trade name and style of Peruvian Rubber Cement Company, charging them with the use of unfair methods of competition in commerce, in violation of the provisions of said act.

The respondents having made, executed and filed an agreed statement of facts in which it is stipulated and agreed by respondents that the Federal Trade Commission shall take such agreed statement of facts as the facts in this case and in lieu of testimony, and proceed forthwith upon such agreed statement of facts to make its findings as to the facts and such order as it may deem proper to enter therein, without the introduction of testimony or the presentation of argument in support of same, the Federal Trade Commission being now fully advised in the premises, makes this its findings as to the facts and conclusion:

506 Findings,

FINDINGS AS TO THE FACTS.

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

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

Conclusion, 6E.T.C, prominently displayed, together with certain statements and assertions concerning the purposes to which said millinery glue is adapted and certain characteristics possessed by it, with directions for the use of the said millinery glue.

Par. 38. That subsequent to the use by the said corporation, “U- Glu Inc.”, of the trade name “U-Glu” and the trade mark “ U-Glu” as above set forth the respondents in about the beginning of the year 1922 adopted for the millinery glue manufactured and sold by them as aforesaid the name “Glu” and have since said time caused to be placed upon cans in which it has marketed and sold its said millinery glue as aforesaid certain labels bearing the said word “Glu” and also the said word “Glu” surrounded by a wreath in connection with the words “Trade-Mark.” The said respondents have not now nor during any of the aforesaid times registered the device consisting of the word “Glu” surrounded by a wreath, used by them in connection with the words “Trade-Mark” with the United States Patent Office, and respondents have no trade name or trade mark whatsoever registered with the United States Patent Office in connection with their sale of millinery glue as aforesaid. During the aforesaid time the respondents have packed and marketed their said millinery glue in cans similar in shape and size to the cans of the corporation above named, and since the early part of the year 1922 have caused certain labels to be placed upon said cans closely resembling the aforesaid labels of the corporation in size and design. Besides the use upon their labels of the said pretended trade mark by the respondents, and the said word “Glu”, respondents cause their said labels to be printed closely resembling the labels of the aforesaid corporation in size and design. Respondents cause the statement of the purposes for which their millinery glue is used and the statement of the directions for its use to be printed upon their said labels practically identical with the statements of the aforesaid corporation which it has upon its labels regarding the purposes and the directions for the use of its product, and the respondents have caused the said statements and assertions to be placed upon their labels so that their location on the labels correspond to the location of the said similar statements of the said corporation on its labels. Annexed to this statement of facts is one of the said labels of-the aforesaid corporation marked “Commission’s Exhibit No. 1”* and one of the labels aforesaid used by the respondents marked “Commission’s Exhibit No. 2”.

CONCLUSION, The practices of the said respondents, under the conditions and circumstances described in the foregoing findings, are unfair methods 3 Not published.

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

ORDER TO CEASE AND DESIST.

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

It is now ordered, That the respondents, Herman M. Neuschatz and I. M. Halpern, individually and as copartners doing business under the trade name and style of Peruvian Rubber Cement Company and/or National Rubber Mfg. Co., their agents, representatives, servants and employees, do cease and desist from describing the commodity known as millinery glue, manufactured and sold by respondents, by or with the name spelled “Glu” either alone or surrounded by a wreath or other device with or without connection with the words “ Trade-Mark ” on any labels attached to a container or containers or in connection with any printed matter relating to the said commodity, dealt in by respondents known as millinery glue, Respondents shall cease and desist from using labels on a container or containers of their said product which are printed closely resembling the labels of the corporation known as “ U-Glu” Ine.”, in color, size and design, and from printing upon the said labels any statement of the purposes of the use of said millinery glue’ or directions for its use, the words of which statement or the manner of their arrangement are identical or substantially identical with such statements heretofore used upon the labels of the aforesaid corporation “U-Glu Inc.”

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

36727°—25—voL 6——34 CASES IN WHICH ORDERS FOR DISCONTINUANCE OR DISMISSAL HAVE BEEN ENTERED. | Date of order. | Docket No. | Respondents. | Commodities. | Charges. | Answer, stipulation, or trial. | Reasons for discontinuance or dismissal. | | 1923. Mar. 12 | 727 | Austin Bond, doing business under the trade name and style of Bond Bros. & Co., New York. | Overissued or unused newspapers. | Appropriation of trade name, trade-mark, and code address of competitor. | Answer | No reasons assigned. | | 24 | 838 | Gypsum Industries Association, its officers, committees, and members. | Gypsum products | Conspiring to hamper competition by restricting customer dealers to the territory in which they may sell and by limiting sales to those customer dealers who observe such limitations, "thereby hampering and obstructing the business of dealers who sell such products upon mail orders or otherwise for delivery at points other than those at which they maintain retail establishments." | do | "It appearing that on Jan. 3, 1923, the District Court of the United States for the Southern District of New York entered a decree in an action then pending therein in which the United States of America was complainant and Gypsum Industries Association et al. were defendants, by which decree the issues in the above-entitled proceeding were adjudicated and disposed of: It is ordered, That the complaint herein be and the same hereby is dismissed." | | Apr. 10 | 869 | Baltimore & Philadelphia Steamboat Co. | Transportation service | Selling below cost for the purpose of eliminating a competitor. | Trial | No reasons assigned; dismissed without prejudice, Commissioner Gaskill dissenting. | | 11 | 215 | Minerals Separation, Ltd.; Minerals Separation American Syndicate, Ltd.; Minerals Separation American Syndicate (1913) Ltd.; Beer, Sondheimer & Company; Beer, Sondheimer & Company, Inc.; Minerals Separation North American Corporation; Benno Elkan, Otto Frohnknecht, Harry Falck. | Paraphernalia, supplies, etc., having to do with the separation and concentration of ores by flotation. | With the intent and effect of stifling competition and of tending to create a monopoly; agreeing to prevent dealings in competitive apparatus, processes, commodities, etc., except upon permission, granted only upon payment of an exorbitant commission; to discriminate in the matter of such commissions between favored independent concerns dealing in such competitive apparatus and those whom it was desired to discipline and make examples of; to exact from and impose upon mine operators, metallurgists, engineers, etc., both within and without respondents' employ, exorbitant royalties and burdensome and unfair agreements, terms, and conditions both in connection with the use of respondents' apparatus, paraphernalia, processes, etc., and in connection with the use of competitive appa- | do | Dismissed "for lack of appearance of interstate commerce," Commissioner Thompson, in concurring therein, however, filing the following statement: "I agree with my associates that interstate commerce appears to be lacking in this case, and have, therefore, voted that the complaint should be dismissed. However, I believe it to be my duty, in view of the public interest involved to state that in my opinion the Minerals Separation, Ltd., of London, exceeded its authority in promiscuously sending out under its | status, paraphernalia, processes, etc.; to discriminate in the matter of royalties between mine operators favored and those whom it was desired to discipline or make examples of; disparaging competitors and their products; making false and malicious patent claims and threats of infringement suits; intimidating and coercing competitors and their customers or prospective customers; espionage; discrimination in price in violation of section 2 of the Clayton Act; and tying or exclusive contracts or dealings in violation of section 3 thereof. attorneys' signatures, to over four hundred mine operators a letter charging them with 'infringement of' its 'clients' patents for froth flotation concentration of ores,' and it acted unfairly and negligently when, without any first-hand knowledge of whether the recipients were actually using flotation or violating respondents' patent rights, ordered them in the said letter as follows: 'You are therefore hereby directed to send me a full statement of your infringing operations in accordance with the interrogatories inclosed herewith, in default whereof I am directed to commence suit against you for an injunction, profits, and damage, including a preliminary injunction at the commencement of the suit to immediately stop your infringing operations.'"

CASES DISMISSED.

Apr 18 207 The Cleveland Macaroni Co ... Macaroni, noodles, and kindred products. Subsidizing salesmen ... Answer and trial... "Dismissed for the reason that respondent, Cleveland Macaroni Co., was adjudicated a bankrupt and now out of business." 18 520 Procter & Gamble Distributing Co. Soaps ... Guarantee against price decline ... do ... No reasons assigned. 18 850 Goheen Manufacturing Co ... Paints ... Advertising falsely and misleadingly ... Answer ... Respondent "was adjudicated a bankrupt and now out of business." 18 939 Braden's California Products, Inc., and A. Claude Braden. Jams, preserves, and marmalades. Simulating corporate name and labels of competitor ... do ... No reasons assigned. 23 624 Autographic Register Co ... Supplies for registers... Tying or exclusive contracts ... Answer and trial... Do. 1 The members of such association (and joined as respondents), according to the complaint, are as follows: Acme Cement Plaster Company, Illinois; American Cement Plaster Company, Kansas; American Gypsum Company, Ohio; Cardiff Gypsum Plaster Company, Iowa; Centerville Gypsum Company, Iowa; Colorado Portland Cement Company, Colorado; Connecticut Adamant Plaster Company, Connecticut; Dakota Plaster Company, South Dakota; Ebsary Gypsum Company, New York; Empire Gypsum Company, New Jersey; Grand Rapids Plaster Company, Michigan; Higginson Manufacturing Company, New York; Kelley Plaster Company, Pennsylvania; J. B. King & Company, New York; Alabastine Company (which carries on a portion of its business under the name and style of the Michigan Gypsum Company), Michigan; Nephi Plaster & Manufacturing Company, Utah; Niagara Gypsum Company, New York; Overland Cement Plaster Company, Wyoming; Pacific Coast Gypsum Company, Washington; Plymouth Gypsum Company, Iowa; Rock Plaster Manufacturing Company, New York; Southern Gypsum Company (Inc.), Virginia; United States Gypsum Company, New Jersey; Wasem Plaster Company, Iowa. The executive officers and the members of certain standing committees of the respondent Gypsum Industries Association (joined as respondents), are as follows: Ray C. Haynes, president and member of the executive committee, which committee is ex officio the board of directors of said association; James Leenhouts, vice president and member of the executive and trade relations committee; R. G. Bear, treasurer and member of the executive and trade relations committee; H. H. McDonald, secretary; M. A. Reeb, member of the executive and trade relations committees; A. R. Black, L. E. Armstrong, A. A. Wolf, J. C. Sognine, and W. E. Shearer, members of the executive committee; H. W. Blackson, Warren Henley, E. G. West, H. C. Hamilton, and F. G. Ebsary, members of the trade relations committee. 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. | | May 7 | 980 | Paul E. Peck and Richard K. Peck, copartners doing business under the name of Paul E. Peck & Son. | Steamship supplies | Commercial bribery | Answer | Dismissed "for the reasons that the respondents have been adjudicated bankrupts; that the respondent Paul E. Peck is now deceased, and said partnership is dissolved and no longer doing business." | | 14 | 131 | Atlantic Refining Co | Oil pumps, tanks, and outfits. | Misrepresenting competitors' products and prices; inducing and attempting to induce breach of competitors' contract; selling and loaning equipment below cost with the intent and effect of suppressing and stifling competition; intimidating or threatening customers of competitors; and falsely representing self as agent for or dealer in both the products of competitor and the products actually handled and quoting exorbitant prices on the former; all in violation of Section 5; and price discrimination in violation of Section 2 of the Clayton Act. | Answer and trial. | "It is ordered, that the complaint herein be and the same is hereby dismissed, by reason of the decision of the Supreme Court of the United States in the Pump and Tank cases, Federal Trade Commission v. Sinclair Refining Co. et al." (261 U. S. 463). | | 14 | 308 | Ohio Cities Gas Co | do | Leasing oil tanks, pumps, and devices for nominal consideration, based on exclusive or tying contracts or dealings in violation of Sections 5 and 3 of the Federal Trade Commission and Clayton Acts respectively. | do | Do. | | 14 | 324 | Factory Oil Co | do | do | do | Do. | | 15 | 227 | Helvetia Milk Condensing Co. et al. | Evaporated milk | Guarantee against price decline | do | Dismissed without prejudice; no reasons assigned; Commissioners Thompson and Nugent dissenting. | | 15 | 372 | Standard Oil Co. of Kentucky | Oil pumps, tanks, and outfits. | Leasing oil tanks, pumps, and devices for nominal consideration, based on exclusive or tying contracts or dealings in violation of Sections 5 and 3 of the Federal Trade Commission and Clayton Acts respectively. | do | "It is ordered, that the complaint herein be and the same is hereby dismissed, by reason of the decision of the Supreme Court of the United States in the Pump and Tank cases, Federal Trade Commission v. Sinclair Refining Co. et al." (261 U. S. 463). | | 15 | 544 | Valvoline Oil Co | do | do | Answer | Do. | | 15 | 587 | Tidewater Oil Co., Tidewater Oil Sales Corporation and Tidewater Oil Co. of Mass. | do | do | do | Do. |

18 | 800 | Herbert W. Brand, Harry C. Oppenheimer, and Edwin W. Brand, partners, doing business under the name and style of Brand & Oppenheimer. | Linings for clothing | Advertising falsely and misleadingly, misbranding or mislabeling, and misrepresenting products. | ... do | No reasons assigned; dismissed without prejudice, Commissioner Nugent dissenting. 23 | 710 | Tidewater Oil Co., Tidewater Oil Sales Corporation. | Lubricating oil | Advertising falsely and misleadingly | Trial | No reasons assigned. June 4 | 695 | Associated Oil Co., Inc., A. D. A. Johnston Co., Inc., E. A. Adev, Jr., S. B. Coleman, and B. V. Johnston. | Oil stock | ... do | ... do | Do. 4 | 820 | Carnick Bros. Co | Iron and steel specialties. | Misrepresenting products.¹ | ... do | Respondent has gone out of business. 4 | 953 | C. C. Cannon | Oil stocks or shares | Advertising falsely and misleadingly | ... do | No reasons assigned. 22 | 895 | Otto Eisenlohr & Bros. (Inc.) | Cigars | Resale price maintenance | Stipulation | No reasons assigned. Commissioner Nugent dissents. 23 | 897 | M. T. K. Products Co., a Trust; J. A. Menard, John E. Burkheimer, B. G. Raymond, H. P. Vogt, R. G. Townsend, and their successors, trustees under said trust; M. T. K. Sales Corporations, and Beckley-Ralston Co. | Abrasive bearing-fitting compound. | Intimidating customers and prospective customers of competitors through vague and general infringement claims and threatened suits | Answer | "Charges of the complaint are not supported by the proof." July 7 | 807 | Athol Manufacturing Co | Cotton fabric | Naming product misleadingly and advertising falsely and misleadingly | ... do | No reasons assigned. 17 | 767 | Wichita-Eagle Oil Co., E. U. Engle, C. T. Engle, and W. S. Pratt. | Oil shares | Advertising falsely and misleadingly | Trial | Do. ¹In addition to the Helvetia Milk Condensing Co., there were joined in this case as intervening respondents the following concerns: Northfield Milk Products Co., Waverly Condensed Milk Co., Whitehouse Milk Products Co., Valecia Evaporated Milk Co., Van Camp Packing Co., Snohomish Dairy Products Co., Sturtevant, Wright & Wagner Dairy Co., Rogers Milk Corporation, Pennsylvania Milk Products Co., Ferry Packing Co., Ohio Dairy Co., Middle States Creamery Co., Litchfield Creamery Co., Larimer County Cooperative Milk Condensery Co., John F. Jelke Co., Hope Condensed Milk Co., Goshen Milk Condensing Co., Badger Condensed Milk Co., Diamond Creamery Co., Dewart Milk Products Co., Continental Condensed Milk Co., Cremo Milk Co., Brownback Condensed Milk Co., Aviston Condensed Milk Co., American Milk Co., St. Lawrence Condensed Milk Co., Sharpless Co., Oatman Condensed Milk Co., Morey Condensery, Mohawk Condensed Milk Co., Libby, McNeil & Libby, Indiana Condensed Milk Co., Armour & Co., Grand Ledge Milk Co., Colorado Condensed Milk Co., Alpine Evaporated Cream Co., Carnation Milk Products Co., Borden's Condensed Milk Co., Danish Pride Milk Products Co., F. C. Mansfield Co., Lake Mills Condensed Milk Co., Waterloo Creamery Co., Wisconsin Dairy Products Co., Wisconsin Condensed Milk Co., Wisconsin Butter & Cheese Co. Respondent is engaged in the export business, the complaint being under Section 5 of the Federal Trade Commission Act, as extended by Section 4 of the Webb Act.

CASES DISMISSED.

Cases in which orders for discontinuance or dismissal have been entered—Continued. | Date of order. | Docket No. | Respondents. | Commodities. | Charges. | Answer, stipulation, or trial. | Reasons for discontinuance or dismissal. | | July 31 | 729 | South Bend Bait Co | Fishing tackle, artificial bait, etc. | Discriminating in price in violation of Sections 5 and 2 of the F. T. C., and Clayton Acts, respectively. | Answer and trial | This matter being before the Commission for consideration in connection with the denial by the Supreme Court of the United States of a writ of certiorari in the case of the Commission against The Mennen Company, Docket No. 606 [Federal Trade Commission v. Mennen Co., 262 U. S. 759, refusing to review the decision of the lower court in Mennen Co. v. Federal Trade Commission, 288 Fed. 774]; and it appearing that the subject matter of the complaint herein falls within the judgment of the Circuit Court of Appeals for the Second Circuit in said case [Mennen Co. v. Federal Trade Commission, 288 Fed. 774]:<br>"It is hereby ordered on the Commission's own motion, that the order to cease and desist herein, dated March 14, 1922 [3 F. T. C. 355], be and the same is hereby, revoked and that the complaint herein be, and the same is hereby, dismissed." | | Sept. 12 | 1008 | S. A. Samuels, L. E. Samuels, L. H. Samuels, Harry H. Samuels, doing business under the name and style of Cocoa Products Co. | Cocoa and chocolate preparations. | Securing business through unauthorized alteration of customers orders. | Answer | No reasons assigned. | | 14 | 728 | American Safety Razor Corp | Shaving brushes | Advertising falsely and misleadingly and mislabeling. | Answer and trial | Do. | | 27 | 1057 | Abner Frankel and Alexander Frankel, partners doing business under the trade name and style of The Willard Tailoring Co. | Men's clothing | Holding out false and misleading prospects of future price concessions on articles contracted for, and meeting contract obligations unfairly. | Answer | Dismissed without prejudice; no reasons assigned. |

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

CASES DISMISSED.

‘Arrenprx I,

ACTS OF CONGRESS FROM WHICH THE COM.

MISSION DERIVES ITS POWERS.

FEDERAL TRADE COMMISSION ACT.

Approved Sept. 26, 1914.] [Poustic—No. 203—63p Conaress.]

[II. R. 15613.]

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

Sec. 1. CREATION AND ESTABLISHMENT OF THE COM-

MISSION.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That a commission is hereby created and established, to be known as the Federal Trade Commission (hereinafter referred to as the commission), which shall ote’ , commute be composed of five commissioners, who shall be appointed pointed by Pres by the President, by and with the advice and consent of with, (sto. Not the Senate. Not more than three of the commissioners #™, ame, Bo 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, ‘This act has been annotated up to Inly 1, 1921, and may be found, £0 annotated, Jn Volume III of the Commission’s Reports. Reperted de cisions of the courts for the period covered by this volume (Feb. 14, 1925, to Nov, 4, 1923) and arising under this act are printed in full in Appendix II hereof (see infra, p. 559 et seq.). Previously reported decisions wil be found set forth in Appendix IT of Volumes II, III, IV, and V of the Commission's Reports.

It should be noted that the jurisdiction of the Commission is limited by the “Packers and Stockyards Act, 1921,” approved Aug. 15, 1921, ch. 64, 42 Stat. 159, sec. 406 of Raid Act providing that ‘on and after the enactment of this Act and so long as it remains in effect the Federal Trade Commission shall have no power or jurisdiction so far as relating to any matter which by this Act {9 made subject to the jurisdiction of the Secretary [of Agriculture] except in cases in which, before the enactment ot this Act, complaint has been served under sec. 5 of the Act, entitled An Act to create a Federal Trade Commission, to define its powers and

Sec. 1. CREATION AND ESTABLISHMENT OF THE COM-

MISSION—Continued. each to be designated by the President, but their succes- Term, seven. years. sors 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 chornirman tobe shall succeed. The commission shall choose a chairman rant other 470M its own membership. No commissioner shall engage business prohib-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 b - « -. matning conmie. the commission.

“ne Judietalty The commission shall have an official seal, which shall noticed. be judicially noticed.

Sec, 2. SALARIES. SECRETARY. OTHER EMPLOYEES.

EXPENSES OF THE COMMISSION. OFFICES.

salary gaat Sxo,2, That each commissioner shall receive a salary of $10,000 a year, payable in the same manner as the salaries of the judges of the courts of the United States. The duties, and for other purposes,’ approved Sept, 26, 1914, or under sec, 11 of the Act, entitled ‘An Act to supplement existing lawa against unlawful Testraints and monopolies, and for other purposes,’ approved Oct. 15, 1914, and except when the Secretary of Agriculture, in the exercise of hie duties hereunder, shall request of the said Federal Trade Commission that it make investigations and report in any case.” In connection with the history In Congress of thea 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 Cummins from the Committee on Interstate Commerce on Control of Corporations, Persons, and Firms en gaged in Interstate Commerce (Feb, 26, 1913, 62d Cong., 34 sesa., Rept. No. 1326); Hearlngs on Interstate Trade Commission before Committee on Interstate and Forcign Commerce of the House, Jan, 30 to Feb. 16, 1914, 63d Cong., 2d sess.; Interstate Trade, Hearings on Bills relating to Trust Legislation before Senate Committce on Interstate Commerce, 2 vole, 63d Cong., 2d sess.; report of Mr. Covington from the House Comniuttee on Interstate and Foreign Commerce on Interstate Trade Commission’ (Apr. 14, 1914, 63d Cong., 2d sess., Rept. No. 533); also parts 2 and 8 of said report presenting the minority views respectively of Mesars, Stevens and Lafferty; report of Senator Newlands from the Committea on Interstate Commerce on Fedora! Trade Commission (June 13, 1914, 634 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; 8068; 14925-14933 (part 15); Dickinson for, part 9, pp. 9189-9100; Mann against, part 15, pp. 14939-14940; Morgan, part 9, 8854-8857, 9063-0064, 14941-14943 (part 15); Stms for, 14940-14941; Stevens of N. H. for, 9063 (pert 9): 14941 (part 15); Stevens of Minn. for, 8849-8853 (part 9); 14983-— 14939 (part 15); and of Senators Borah against, 11186-11189 (part 11); 11232-11237, 11298-11302, 11600-11601 (part 12); Brandegee against, 12217-12218, 12220-12222, 12261-12262, 12410-12411, 12792-12804 (part 13), 13103-13105, 13299-13301; Clapp against, 11872-11873 (part 12), 13061-13065 (part 13), 13143-13146, 13301-13302: Cummins for, 11102- 11106 (part 11), 11879-11389, 11447-11458 (part 12), 11528-11539, commission shall appomt a secretary, who shall receive set Ppolntment of ® salary of $5,000 a year, payable in like manner, and it *'y, $5,000. shall have authority to employ and fix the compensation lose Bates of such attorneys, special experts, examiners, clerks, and Sxed by Commis. other employees as it may from time to time find necessary for the proper performance of its duties and as may be from time to time appropriated for by Congress. Except for sec- With the exception of the secretary, a clerk to each yermrcPt sor see: oe. i * clerk commissioner, the attorneys, and such special experts and 8n¢ such special examiners as the commission may from time to time find Sve, and, ex: necessary for the conduct of its work, all employees of the Migon my Sit commission shall be a part of the classified civil service, crpovecs, 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, Rxpenves ot necessary expenses for transportation incurred by the loved snd paid commissioners or by their employees under their orders, of itemized, a" 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 18), 12912-12924, 12987-12992, 13043-13052, 14708- 14770 (part 15) 3 Hollis for, 11177-11180 (part 11), 12141-12149 (part 12), 12151-12152; Kenyon for, 18155-18160 (part 13); Lewis for, 11302-11307 (part 11), 12924-12933 (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 13), 12993~12996, 13102-13103; Reed Against, 11112-11116 (part 11), 11874-11876 (part 12), 12022- 12020, 12150-12151, 12539-12551 (part 13), 12933-12939, 13224-18234, 14787-14791 (part 15); Robinson for, 11107 (part 11), 11228-11232; BSaulebury for, 11185, 11591-11594 (part 12); Shields against, 13056~ 13061 (part 18), 13140-13148; Sutherland against, 11601-11604 (part 12), 12805-12817 (part 13), 12855-12862, 12980-12980, 18055-13056, 13109-13111; Thomas against, 11181-11185 (part 11), 21598-11600 (part 12), 12862-12869 (part 13), 12978-12980; Townsend against, 11870- 11872 (part 12); and Walsh for, 13052-13054 (part 13). See also Letters from the Interstate Commerce Commission to the chairman of the Committee on Interstate Commerce, submitting certain Suggestions to the bill creating an Interstate Trade Commission, the first being a letter from Ilon, C, A. Prouty dated Apr. 9, 1914 (printed for the use of the Committees on Interstate Commerce, 63d Cong., 2d sess.) § letter from the Commissioner of Corporations to the chairman of the Committee on Interstate Commerce, transmitting certain suggestions Telative to the bil] (EH. R. 15613) to create a Federal Trade Commission, Orst letter dated July 8, 1914 (printed for the use of the Committee on Interstate Commerce, 63d Cong., 2d sess.); brief by the Bureau of Core Porations, relative to sec, 5 of the bill (H. R. 15613) to create « Federal Trade Commission, dated Aug. 20, 1914 (printed for the use of the Committee on Interstate Commerce, 63d Cong., 2d sess.); brief by George Rublee relative to the court review in the bill (IT, R. 15613) to CTeate a Federal Trade Commission, dated Aug. 25, 1914 (printed for the use of the Committes on Interstate Commerce, 63d Cong., 2d sees.): and “iesenting opinion of Justice Brandeis in Federul Trade Commission v. Grats, 253 U, 8. 421, 429-442, (Sco case also in Vol Il of Commis *on's Decisions, p. 564 at pp. 570-579.)

Sec. 2, SALARIES. SECRETARY. OTHER EMPLOYEES.

EXPENSES OF THE COMMISSION. OFFICES—Continued. mie Until otherwise provided by law. the commission may offices. rent suitable offices for its use. connditing fae The Auditor for the State and Other Departments shall receive and examine all accounts of expenditures of the commission. eee

Sec. 3. BUREAU OF CORPORATIONS. OFFICE OF THE

COMMISSION. PROSECUTION OF INQUIRIES.

Bureau of Cor- Sec. 3. That upon the organization of the commission porations ab- . . ‘ . sorbed by Com- and election of its chairman, the Bureau of Corporations mission, 2's ° and the offices of Commissioner and Deputy Commissioner of Corporations shall cease to exist; and all pending investigations and proceedings of the Bureau of Corporations shall be continued by the commission. Olerks, em- All clerks and employees of the said bureau shall be pers, property, transferred to and become clerks and employees of the transferred tocommission 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 the Secretary of Commerce from the contingent appropriation for the Department of Commerce for the fiscal year nineteen hundred and fifteen, or from the departmental printing fund for the fiscal year nineteen hundred and fifteen, shall become funds and appropriations available to be expended by the commission in the exercise of the powers, authority, and duties conferred on it by this Act.

Principal office ~The principal office of the commission shall be in the fn Washington, but Commission gj hi i i i but Commission city of Washington, but it may meet and exercise all its where. powers at any other place. The commission may, by one ann ty prosecute or more of its members, or by such examiners as it may where In United designate, prosecute any inquiry necessary to its duties Btates, in any part of the United States.

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

“Commerce” “Commerce” means commerce among the several States or with foreign nations, or in any Territory of the United States or in the District of Columbia, or between any such Territory and another, or between any 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- “Corporatio.” corporated or unincorporated, which is organized to carry on business for profit and has shares of capital or capital stock, and any company or association, incorporated or unincorporated, without shares of capital or capital stock, except partnerships, which is organized to carry on busihess for its own profit or that of its members. . “Documentary evidence” means all documents, papers, ,,,,D¢cumem*"7 and correspondence in existence at and after the passage of this Act.

“Acts to regulate commerce” means the Act entitled,,,,Acts te ety; “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,,.2t!trust 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 twenty- Seventh, 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!

Seo. 5. That unfair methods of competition in com- , Uaisls methods merce are hereby declared unlawful. he commission is hereby empowered and directed to,,Commission to Prevent persons, partnerships, or corporations, except ri conmen sr banks, and common carriers subject to the Acts to regulate commerce, from using unfair methods of competition iN commerce, anes + For text of Sherman Act, see footnote on pp. 533-535. th Jurtediction of Commission under this section Mmited by sec. 408 of ¢ © Packers and Stockyards Act, 1921," approved Aug, 15, 1921, ch. 64, 42 Stat. 159, Bee second paragraph of footnote on p. 519.

Sec. 5. UNFAIR COMPETITION. COMPLAINTS, FIND-

INGS, AND ORDERS OF COMMISSION. APPEALS.

SERVICE—Continued.

Commiasion to eof. ineue complaint Whenever the commission shall have reason to believe when unfairthat any such person, partnership, or corporation has to public inter-been or is using any unfair method of competition in commerce, and if it shall appear to the commission that a proceeding by it in respect thereof would be to the inont capo ndent terest of the public, it shall issue and serve upon such per- Dearing. , 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 pernaremordent togon, partnership, or corporation so complained of shall pear ua, ew 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 towed nape ship so charged in said complaint. Any person, partnercation; poration 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 Testimony 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 nidi method pro the opinion that the method of competition in question is wiea, 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 serve order to issue and cause to be served on such person, partnership, 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.

: aeriiae TE suet person, partnership, or corporation fails or Gore careult neg y such order of the commission while the by Commission. same jis 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- ,A¢tion,.¥Y cation and transcript the court shall cause notice thereof tpondent | De to be served upon such person, partnership, or corpora- Podifying, of settion and thereupon shall have jurisdiction of the proceed- ™isiou'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,,Gomm{ston'’s ndings. Conclufacts, if supported by testimony, shall be conclusive. sive if supported If either party shall apply to the court for leave to adduce _ Introduction ot additional eviadditional evidence, and shall show to the satisfaction dence, if reasonable grounds for of the court that such additional evidence is material and failure to adduce E heretofore, that there were reasonable grounds for the failure to adduce such evidence in the proceeding before the commaission, the court may order such additional evidence, May be taken to be taken before the commission and to be adduced upon siou. the hearing in such manner and upon such terms and conditions as to the court may seem proper. The commission Commission. . may make new or 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’ subject ‘0 final, except that the same shall be subject to review by tiorart, 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,,7cten” re cease and desist from using such method of competition (1o",.7 Guuse 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- ,,72,,>¢ amv 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 o,Juredicion sf aside, or modify the order of the commission as in the case tation by apple mission, an of an application by the commission for the enforcement Go himfsslons of its order, and the findings of the commission as to the {arg yamiany facts, if supported by testimony, shall in like manner be conclusive,

Sec. 5. UNFAIR COMPETITION, COMPLAINTS, FIND-

INGS, AND ORDERS OF COMMISSION. APPEALS.

SERVICE—Continued, coutrisdiction of 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. parroceedings to Such proceedings in the circuit court of appeals shall ave precedence. ; . over other cases. be given precedence over other cases pending therein, and shall be in every way expedited. No order of the commission or judgment of the court to enforce the same Liability under Shall in any wise relieve or absolve any person, partnerantitrust acts no! . . s qeqe. affected, ship, or corporation from any liability under the antitrust acts."

ServiceotCom- Complaints, orders, and other processes of the commismimion’s com- , . ‘ plaints, orders, Sion under this section may be served by anyone duly and other proc. soe. . . essen, authorized by the commission, either (2) by delivering Personal; or «& 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 corpora otttee or poration to be served; or (b) by leaving a copy thereof hess; oF at the principal office or place of business of such person, maf Teeistered partnership, or corporation; or (c) by registering and mailing a copy thereof addressed to such person, partnership, or corporation at his or its principal office or Verified return place of business. The verified return by the person so by person serv. ing, and ret 1 i i, i ing, sand return serving said complaint, order, or other process setting proof of service 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 afore« said shall be proof of the service of the same.

Sec. 6. FURTHER POWERS.

To gather and issi — come eather and Szc, 6. That the commission shall also have power tion, and to in- i 1 i j tion, and to in (a) To gather and compile information concerning, reference to oF and to investigate from time to time the organization, poration, except DuSINESS, conduct, practices, and management of any cora comet ere poration engaged in commerce, excepting banks and com mon carriers subject to the Act to regulate commerce, and its relation to other corporations and to individuals, associations, and partnerships.

®* For text of Sherman Act, see footnote on pp. 533-535, As enumerated in last paragraph of sec. 4 of this act, see p. 523, . *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- To require antions engaged in commerce, excepting banks, and com-nual or special mon carriers subject to the Act to regulate commerce, or reports from corany class of them, or any of them, respectively, to file porations, except with the commission in such form as the commission may banks and comprescribe annual or special, or both annual and special, mon carriers. reports or answers in writing to specific questions, furnishing to the commission such information as it may require as to the organization, business, conduct, practices, management, and relation to other corporations, partnerships, and individuals of the respective corporations filing such reports or answers in writing. Such re- Such reports to ports and answers shall be made under oath, or otherwise, be under oath, or as the commission may prescribe, and shall be filed with otherwise, and the commission within such reasonable period as the com-filed within such mission may prescribe, unless additional time be granted reasonable period in any case by the commission. as commission may prescribe.

(c) Whenever a final decree has been entered against To investigate, any defendant corporation in any suit brought by the either on own United States to prevent and restrain any violation of the initiative or apantitrust Acts,⁵ to make investigation, upon its own initi-plication of Atative, of the manner in which the decree has been or is torney General, being carried out, and upon the application of the At- observance of torney General it shall be its duty to make such investiga-final decree mention. It shall transmit to the Attorney General a report tered under antiembodying its findings and recommendations as a result trust acts. of any such investigation, and the report shall be made To transmit public in the discretion of the commission. findings and recommendations to Attorney General.

(d) Upon the direction of the President or either To investigate, House of Congress to investigate and report the facts reon direction lating to any alleged violations of the antitrust Acts ⁵ by President or any corporation. either House, alleged violations of antitrust acts.

(e) Upon the application of the Attorney General to To investigate investigate and make recommendations for the readjust- and make recomment of the business of any corporation alleged to be vio-mendations, on lating the antitrust Acts ⁵ in order that the corporation application of may thereafter maintain its organization, management, Attorney Genand conduct of business in accordance with law. eral, for readjustment of business of alleged violator of antitrust acts.

(f) To make public from time to time such portions of To make pubthe information obtained by it hereunder, except trade lic, as it deems secrets and names of customers, as it shall deem expedient expedient, portions of information obtained.

⁵ For text of Sherman Act, see footnote on pp. 533-535. As enumerated in last paragraph of sec. 4 of this act, see p. 523. 30727°—25——vol 6——35 Sec. 6. FURTHER POWERS—Continued. to aakererort@in the public interest; and to make annual and special gether with ree reports to the Congress and to submit therewith recomfor new legis mendations for additional legislation; and to provide for To provide forthe publication of its reports and decisions in such form publication of its ee reports and de-and Manner as may be best adapted for public informacisions, . tion and use.

To classify corporation, and (g) From time to time to classify corporations and to reuiations inc Taake rules and regulations for the purpose of carrying dental to admin-sos's istration of act, out the provisions of this Act. forugtivnicne (h) To investigate, from time to time, trade conditions fies Wie t%in and with foreign countries where associations, com- United Stat ‘nati 1 porting te toe, Dinations, or practices of manufacturers, merchants, or gress with ree traders, or other conditions, may affect the foreign trade agemed advie of the United States, and to report to Congress thereon, with such recommendations as it deems advisable.

See. 7. SUITS IN EQUITY UNDER ANTITRUST ACTS.

COMMISSION AS MASTER IN CILANCERY.

Court may re Seo, 7, That in any suit in equity brought by or under fer suit to Com- . . f 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 complainant is entitled to relief, refer said suit to the and report an ap- commission, a3 a master in chancery, to ascertain and propriate form of decree. report an appropriate form of decree therein. The com- Commission to mission shall proceed upon such notice to the parties and roceed on t lee to parties sunder 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, | Proceedings ai in other May be filed and such proceeding gs had in relation thereto equity causes, “ as upon the report of a master in other equity causes, but Court maythe court may adopt or reject such report, in whole or in adopt or reject report in, whole Dart, and enter such decree as the nature of the case may or in part, in its judgment require.

Sec. 8. COOPERATION OF OTHER DEPARTMENTS AND

BUREAUS:

we inraitt, Szo. 8. That the several departments and bureaus of President, re¢-the Government when directed by the President shall furords, papers, and information. aud nich the commission, upon its request, all records, papers, aod employers. “and information in their possession relating to any corporation subject to any of the provisions of this Act, and *For text of Sherman Act, see footnote on pp. 633-533. As enumerated fn last paragraph of sec. 4 of this act, see p. 523. TProvisions and penalties of secs. 6, 8, 8, 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 Stockyarde 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.¹

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 by subpoena the attendance and testimony of witnesses and May require atthe production of all such documentary evidence relating tendance of witto any matter under investigation. Any members of the nesses and procommission may sign subpoenas, and members and ex- duction of eviaminers of the commission may administer oaths and af- dence. firmations, examine witnesses, and receive evidence. Subpoenas, 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 subpoena 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 subpoena. 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 subpoena issued obedience of subto any corporation or other person, issue an order requir-poena, 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 any under this Act at any stage of such proceeding or investi-sitions at any stage.

¹ 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.

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

DAMUS TO ENFORCE OBEDIENCE TO ACT—Continued. pity, be taken gation. Such depositions may be taken before any person designated by designated by. the commission and having power to ad- Testimony to minister oaths. Such testimony shall be reduced to writbe reduced 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 oduction of evi- j i Production ofevi-to produce documentary evidence in the same manner as compelled 2/13 witnesses may be compelled to appear and testify and Commission produce documentary evidence before the commission as hereinbefore provided. samatnew fees, Witnesses summoned before the commission shall be like services in naid 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. Ineriminating No person shall be excused from attending and testifytestimony or evidence no excuseing or from producing documentary evidence before the testify or prO*eymmission or in obedience to the subpoena of the commission on the ground or for the reason that the testimony or evidence, documentary or otherwise, required of him may tend to criminate him or subject him to a pen- But naturalalty or forfeiture. But no natural person shall be proseerson shail not be "prosecuted outed or subjected to any penalty or forfeiture for or on with respect to 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 Perjury ex testifying shall be exempt from prosecution and punishcepted, ° ment for perjury committed in so testifying. Sec. 10. PENALTIES! ftilureto tee Seo. 10. That any person who shall neglect or refuse to duce doumer attend and testify, or to answer any lawful inquiry, or to Ongnder subject produce documentary evidence, if in his power to do so, 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. 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. 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, 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. 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. Unauthorized divulgence of information by employee of Commission punishable by fine or imprisonment or both. 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. _

mo titetedby 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.] (Pustic—No. 212—63p ConcREss.]

(II. R. 15657. ]

AN ACT To supplement existing laws against unlawful restraints and monopolies, and for other purposes.

Sec. 1. DEFINITIONS.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress as- Antitrust sembled, That “antitrust laws,” as used herein, includes the Act entitled “An Act to protect trade and commerce against unlawful restraints and monopolies,” approved laws, * For text of Sherman Act, see footnote on pp. 533-635, As enumerated in last paragraph of sec. 4 of this act, see p. 523. 1This act hag been annotated up to July 1, 1921, and may be found, so annotated, In Volume ITI of the Commission's Reports. Subsequent reported decixions fur the period covered by this and the preceding volumes (July 1, 1921, to Nov. 4, 1923) and bearing on the provisions of this act affecting the Commission are: Canfleld Oil Co. v. Federal Trade Coneminaton, 274 Fed, 571 (see opinion set forth in Appendix IL of Volume IV at p. 542 et seq.); Sinclair Refining Co. vy. Federal Trade Commtasion, 276 Fed. 686 (see opinion set forth In Appendix II of Volume IV at p. 552 et req.); Auto Acetylene Liyht Cu. Vv. Preat-O-Lite Oo., Inc., 276 Fed. 537: Standard Fashion Co. v. Magrane-Houston Co,, 258 U. 8. 846, 42 Sup. Ct. 860, and United Shue Machinery Corporation v. United Btates, 258 U. 8, 451, 42 Sup. Ct. 363; Aluminum Co. of America y. Federul Trade Commission, 284 Fed. 401 (see opinion set forth tn Appendix Il of Volume V at p. 529 et seq.); Standard Oil of N. J. et al. vy. Federal Trade Commission, 282 Fed. 81 (see opinion sct forth in Appendix IT of Volume V at p. 542 et neq.) 3 Federal Trade Commisaion vy. Curtis Publishing Co., 260 U. 8. 568 (see opinion set forth in Appendix II of Volume V at p. 590 ct seq.); and Afennen Co. v. Federul Trade Commiaston, 288 Fed, 774 (sce opinion and decision set forth in Appendix II of thts volume at p. 579 et seq.); Bederal Trade Commission v. Sinclair Refining Co, et at., 961 UT. S. 408 (see opinion and decision set forth in Appendix IT of this volume at p. 687 et geq.); and B. 8. Pearsall Butter Ca., 292 Fed. 720 (ace opinion and decision set forth in Appendix II of this volume at p. 605 et seq.). ;

It should be noted in connection with this law— That the so-called Shipping Board Act (sec. 15, ch, 451, 64th Cong., 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 ‘\n Act to protect trade and commerce agninst unlawful restraints and monopolies,’ and amendinenta and arts supplementary thereto * * 97;

Thut the jurisdiction of the Commission fs Imited by the “ Packers and Stockyardy Act, 1921," approved Aug. 15, 1921, ch. 64, 42 Stat. 169, see.

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 revenué for the Government, 406 of said Act providing that “on and after the enactment of this Act 8nd so long as it remains in effect the Federal Trade Commission shall have DO 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 hag 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 here. under, 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, 1020, ch. 91, 41 Stat. 456 at 482, the provisions of the Clayton Act and of all other restraints or prohibitions, State or Federal, re made inapplicable to carriers, in so far as the provisions of the section in question, which relate to division of traffic, acquisition by a carrier of control of other carriers and consolidation of railroad systems or rail- Toads, are concerned.

That Public No. 146, Sixty-seventh Congress, approved Feb. 18, 1922 (42 Stat. 388), permits, subject to the provisions sct forth, associations of pro- Gucers of agricultural products for the purpose of “ preparing for market, handling, and marketing in interstate and foreign commerce such products * * #7" (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.) 1 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 30, 1920, 1921, 1922, and 1923 (Sundry Civil Appropriation Act, July 19, 1919, ch, 24, 41 Stat. 208, Sundry Civil Appropriation Act, June 5, 1920, ch. 235, 41 Stat. 922, Sundry Civil Appropriation Act, Mar, 4, 1921, ch. 161, 41 Stat. 141]. and State, Justice, and Judiciary Appropriation Acta, June 1, 1922, ch. 204, sess, II, 42 Stat. 613, and Jan. 3, 1923, 42 Stat. 1080, respectively), Were made contingent upon no part of the moneys being— “ Spent in the prosecution of any organization or individual for entering Into any combination or agreement having in view the Increasing of wages, shortening of hours or bettering the conditions of labor, or for any act done in furtherance thereof, not in itself unlawful; Provided further, That DO part of this appropriation shall be expended for the prosecution of Producers of farm products and associations of farmera who cooperate and organize in an effort to and for the purpose to obtain and maintain & fate and reasonable price for their products.” The act, omitting the usual formal “ Be tt enacted,” etc., follows:

CONTRACTS, COMBINATIONS, ETC., IN RESTRAINT OF TRADE ILLEGAL, Suction 1, Every contract, combination tn the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is hereby declared to be illegal, Every Person who shall make any auch 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 Sec. 1. DEFINITIONS—Continued. and for other purposes,” approved February twelfth, nineteen hundred and thirteen; and also this Act. “Commerce.” “Commerce,” as used herein, means trade or commerce among the several States and with foreign nations, or between the District of Columbia or any Territory-of the United States and any State, Territory, or foreign nation, or between any insular possessions or other places under the jurisdiction of the United States, or between any such possession or place and any State or Territory of the United States or the District of Columbia or any foreign nation, or within the District of Columbia or any Territory or any insular possession or other place under the jurisdiction of the United States: Provided, That nothing in this Act contained shall apply to the Philip. pine Islands. penegheen oF 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 TRADE GUILTY OF MISDEMEANOR—PENALTY, Snc, 2, very person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a misdemeanor, and, on conviction thereof, shall be punished by fine not exceeding five thousand dollars, or by imprisonment not exceeding one year, or by both said punishments, in the discretion of the court.

COMBINATIONS IN TERRITORIES (& DISTRICT OF COLUMBIA ILI ZGAL—PENALTY, Sec. 8 Every contract, combination in form of trust or otherwise, oF 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 apy 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 Btate or States or foreign nations, is hereby declared illegal, Every pereon who shall make any such contract or engage in any such combination or conaptracy, shall be deemed guilty of a misdemeanor, and, on conviction thereof, shall be punished by fine not exceeding five thousand dollars, or by imprisonment not exceeding one year, or by both said punishments, in the discretion of the court, °

ENFORCEMENT.

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

Seo, 2. That it shall be unlawful for any person en- Unlawful where effect may be to gaged in commerce, in the course of such commerce, either substantial lessen competidirectly or indirectly to discriminate in price between tion or tend to different purchasers of commodities, which commodities oy. °"” are sold 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, 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 determination of the case; and pending such petition and before final decree, the court may at any time make such temporary restraining order OF prohibition as shall be deemed just In the premises, ADDITIONAL PARTIES, Sec. 5. Whenever it shall appear to the court before which any proceede ing under section four of this act may be pending, that the ends of justice require that other parties should be brought before the court, the court May cause them to be summoned, whether they reside in the district in Which the court js held or not; and subpenas to that end may be served in any district by the marshal thereof, FORFEITURE OF PROPERTY, SEc. 6. Any property owned under any contract or by any combination, Or pursuant to any conspiracy (and being the subject thereof) mentioned {n section one of this act, and being in the course of transportation from one State to another, or to a foreign country, shall be forfeited to the United States, and may be seized and condemned by like proceedings as those provided by law for the forfeiture, seizure, and condemnation of Property imported into the Duited States contrary to Jaw. SUITS—RECOVERY, Sec. 7. Any person who shall bo injured in his business or property by &ny other person or corporation by reason of anything forbidden or de clared 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.

“ PERSON” OR “ PERSONS’ DEFINED.

Src. 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 lawa 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, 3021, and Transportation Act, limiting the scope of the Clayton Act In *rtain cases, sea footnote on p. 532.

Sec, 2. PRICE DISCRIMINATION—Continued. eet permissible merce: Provided, That nothing herein contained shall ference in grade ‘scrimination j ‘ rete, oraasae Prevent discrimination in price between purchasers of tity, or dn selli itt ] 1 Le chert commodities on account of differences in the grade, sorts or at made quality, or quantity of the commodity sold, or that makes ton, and only due 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 com- Vendor may se- petition: And provided further, That nothing herein conlect own custom: * . . . ere if not in retained 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. A fubstenti ally 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.

Sec, 4. VIOLATION OF ANTITRUST LAWS—DAMAGES

TO PERSON INJURED.

psymeineey Sec. 4. That any person who shall be injured in his busitriet court, and ness or property by reason of anything forbidden in the r reeio. . 2 . damages, includ-ANtitrust laws® may sue therefor in any district court ‘8s comt of suit’ \& the United States in the district in which the defendant resides or is found or has an agent, without respect “On provisions of the Shipping Board Act, Packers and Stockyards Act, 1921, and Transportation Act, limiting the scope of the Clayton Act {n certain caves, sea footnote on p. 532.7 * . *For text of Sherman Act, sve footnote on pp. 533-535. As enumerated In Clayton Act, see Orst paragraph thereof on p, 532. 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.

See. 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.

Src. 5. That a final judgment or decree hereafter ren-aeprima facie evi: dered in any criminal prosecution or in any suit or pro-eens it ceeding in equity brought by or on behalf of the United #iom 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,,Coment, suds: consent judgments or decrees entered before any testi-cert? 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. Whenever any suit or proceeding in equity or criminal nan ng of Prosecution is instituted by the United States to prevent, tot" to "private restrain or punish violations of any of the antitrust laws, pie ‘proceed: the running of the statute of limitations in respect of £07 hsUnited each and every private right of action arising under said *™* *"* laws and based in whole or in part on any matter complained of in said suit or proceeding shall be suspended during the pendency thereof.

See. 6. LABOR OF IIUMAN BEINGS NOT A COMMODITY

OR ARTICLE OF COMMERCE.

Seo, 6. That tho labor of a human being is not a com-tyabor, agricul. Modity or article of commerce. Nothing contained in the cultural | organiantitrust laws® shall be construed to forbid the existence member organ: and operation of labor, agricultural, or horticultural or- help ard, without Banizations, instituted for the purposes of mutual help, sfected by antl trust laws with and not having capital stock or conducted for profit, OF Terie mat theis to forbid or restrain individual members of such organi-jet zations from lawfully carrying out the legitimate objects *For text Clayton of Sherman Act, sce footnote on pp. 533-535, As enumerated Act, see first paragraph thereof on p. 532.

Sec. 6, LABOR OF HUMAN BEINGS NOT A COMMODITY

OR ARTICLE CF 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 rtantially lessen the stock or other share capital of another corporation encompetition, reeo strain commerce, paged also in commerce, where the effect of such acquisia monopoly. tion may be to substantially lessen 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.

Of two or more 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 lIcssen eee competition, | re the effect of such acquisition, or the use of such stock by or fend to create 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. pqrurchase solely This section shall not apply to corporations purchasexcepted. 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 prevent a corporation engaged in commerce from causing the Formation of formation of subsidiary corporations for the actual gubaidiary corpo carrying on of their immediate lawful business, or the mediate Jawtul 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 lessen competition. On provisions of the Shipping Board Act, Packers and Stockyards Act, 1921, and Transportation Act, Nmiting the scope of the Clayton Act in certain cases, see footnote on p, 532, Tt should be noted also that corporations for export trade are excepted from the provisions of this section. (See p. 556, sec. 3) I Il i Common car- Nor shall anything herein contained be construed to, com on cars prohibit any common carrier subject to the laws to regu- Frith reference to late commerce from aiding in the construction of}ines phere 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 ncEzieting rights or impair any right heretofore legally acquired: Pro-tu1 Vy acquired vided, That nothing in this section shall be held or con-" 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.

See. 8 DIRECTORS, OFFICERS, OR EMPLOYEES OF

BANKS, BANKING ASSOCIATIONS, OR TRUST COMPA-

NIES OPERATING UNDER LAWS OF UNITED STATES

AND DIRECTORS OF OTHER CORPORATIONS:

Src, 8, That from and after two years from the date,,%°t je sr of the approval of this Act no person shall at the same bank, bauking a time be a director or other officer or employee of more Coyyy ict, than one bank, banking asseciation or trust company, sete acts Organized or operating under the laws of the United 93*5¢gjg,°'** 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, sce footnote on pp, 533-535. As enumerated Clayton Act, see first paragraph thereof on p. 532. Fr 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, gent or employee of any member bank” who may, “with the approval of the Federal Reserve Board be a director or other officer, agent or euployee of any’ bank or corporation, “chartered or Incorporated under ® lawa of the United States or of any State thereof, and principally fn ae

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 Jaws 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 aotem cgibitity United States. The eligibility of a director, officer, or employee under the foregoing provisions shall be determined by the average amount of deposits, capital, surplus, and undivided profits as shown in the official statements of such bank, banking association, or trust company filed as provided by law during the fiscal year next preceding the date set for the annual election of directors, and when a director, officer, or employee has been elected or selected in accordance with the provisions of this Act it shall be lawful for him to continue as such for one year thereafter under said election or employment. Not to serve No bank, banking association or trust company, organmore than one bank, banking as- ized or operating under the laws of the United States, sociation, or trust company located in any city or incorporated town or village of more than in city or incor porated town or (WO hundred thousand inhabitants, as shown by the last than 200,000 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 we favings banks in the same place: Provided, That nothing in this section 0 pital (ahare) stock or: 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 on bank, etc,, owned ussociation, or trust company may be a director or other of ae thal 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 furtiter, That nothing contained in this section shall forbid ecpted. engaged tn international or foreign banking, or banking in a dependency or insular possession of the United States," in the capital stock of which guch member bank may have invested under the conditions and circumstances set forth in the Act.

On provisions of the Shipping Board Act, Packers and Stockyards Act, 1921, and Transportation Act, Hmiting the scope of the Clayton Act in certain cases, see footnote on p, 532. a director of class A of a Federal reserve bank, as defined of eed litector 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,,Prrate banker shall prohibit any private banker or any officer, director, "=" bani, or or employee of any member bank or class A director of Dyn" Fut a Federal reserve bank, who shall first procure the consent gral Reserve of the Federal Reserve Board, which board is hereby au- {23, to, other thorized, at its discretion, to grant, withhold, or revoke 2, sunitsniat 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-gecorment may be cured before the person applying therefor has been piloant 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 the,,Nott wr approval of this Act no person at the same time shall be et? oP a director in any two or more corporations, any one of CorRotations if which has capital, surplus, and undivided profits aggre-sidte wegrenss £ating more than $1,000,000, engaged in whole or in part Poy goa" #4 mM commerce, other than banks, banking associations, f}impention tt trust companies and common carriers subject to the Act *fetment mould 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 tho antitrust laws.t The eligibility of a director How cughiity 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 provi- Sons of this Act it shall be lawful for him to continue as such for one year thereafter. eee, “The part of the section immediately preceding beginning with, “ And Ten ided Jurther, That nothing tn this Act” to this polnt, amendments wey Act May 15, 1916, ch. 120, and act May 26, 1920, ch. 206. "Or text of Sherman Act, see footnote on pp. 543-535. Asa enumerated Clayton Act, see firat paragraph thereof on p. 532.

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.

tim tgibllity st ‘When any person elected or chosen as a director or hares en et officer or selected as an employee of any bank or other years 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 ore alty, fine, 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 aerhe cute Prosecutions hereunder may be in the district court of for durtice seete the United States for the district wherein the offense may tae mnt have been committed. sto jurisdiction of That nothing in this section shall be held to take away affected Theiror impair the jurisdiction of the courts of the several fo 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; curities, etc., and Act no common carrier engaged in commerce shall have contracts for con: any dealings in securities, supplies or other articles of maintenance, as: commerce, or shall make or have any contracts for con-tan .$39.000 8 struction or maintenance of any kind, to the amount of 27, °84 director more than $50,000, in the aggregate, in any one year, with carrier also di, another corporation, firm, partnership or association fther party ot when the said common carrier shall have upon its board rest 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 timo 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 giaaing to be carrier, to be ascertained by competitive bidding under $y?" teguiations regulations to be prescribed by rule or otherwise by the Peectats Com ove. C is- Interstate Commerce Commission. No bid shall be reer Ssa to show ceived unless the name and address of the bidder or the Grn’ ot tidde, 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 firia, be given with the bid.

Any person who shall, directly or indirectly, do or at- Penalty for preventing or attempt 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.

0 5 1 . Carries t Every such common carrier having any such transac- | Cerier 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 report violations, hearing, have reason to believe that the law has been and ita own fnd: Violated in and about the said purchases or transactions “ener. it shall transmit all papers and documents and its own Views or findings regarding the transaction to the Attorney General, 36727°—25—vor 6——-36

Sec. 10. LIMITATIONS UPON DEALINGS AND CON:

TRACTS OF COMMON CARRIERS—Continued.

Misd oF j i i i j fondncermean’ If any common carrier shall violate this section it shall poknomnely vote be 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. extant, $'¢ The effective date on and after which the provisions 1, 1921. 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, concent ae to nineteen hundred and twenty-one: Provided, 'That such ganized after extension shall not apply in the case of any corporation % 1018. organized after January twelfth, nineteen hundred and eighteen.’

See. 11, JURISDICTION TO ENFORCE COMPLIANCE.

COMPLAINTS, FINDINGS, 4ND ORDERS. APPEALS.

SERVICE”

resrindiction’ss Seo. 11, That authority to enforce compliance with plicable vested sactions two, three, seven and eight of this Act by the per- Interstate Com: sons respectively subject thereto is hereby vested; in the meree Commission; Interstate Commerce Commission where applicable to pei! Reserve common carriers, in the Federal Reserve Board where applicable to banks, banking associations and trust comconsteral Trade nanies, and in the Federal Trade Commission where applicable to all other character of commerce, to be exercised as follows:

Commission or board to fue Whenever the commission or board vested with juriscomplaint its diction thereof shall have reason to believe that any

7. ot B violate’: person is violating or has violated any of the provisions pith sotice of of sections two, three, seven and eight of this Act, it shall gpoigert oF ee 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 3 Above paragraph, sec, 501 of the Transportation Act, Feb, 28, 1920, eh. 91, 41 Stat. 456 at 409.

3 On provisions of the Shipping Board Act, Packers and Stockyards Act, 1921, and Transportation Act, limiting the scope of the Clayton Act in certain cases, see footnote on p. 632, complained of shall have the right to appear at the place, Remondent 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- _, Intervention os y | plication, and upon good cause shown may be allowed te4 for good by the commission or board, to intervene and appear in said proceeding by counsel or in person, The testimony,,{/erxr'"t of in any such proceeding shall be reduced to writing and *!«- . filed in the office of the commission or board. If upon such hearing the commission or board, as the case may be, 1415 °%*,08, Vi shall be of the opinion that any of the provisions of said in,°7 board to sections have been or are being violated, it shall make a port stating Sndreport in writing in which it shall state its findings as to se 4n4 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,,Commission o board may modshall have been filed in a circuit court of appeals of the jl¥ oper aside United States, as hereinafter provided, the commission {aritt of ree or board may at any time, upon such notice and in such fui Court of Ap manner as it shall deem proper, modify or set aside, in whole @r 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 ine Oy ts the commission or board while the same is in effect, the order, opm commission or board may apply to the circuit court of may apply cir. appeals of the United States, within any circuit where Peas fo" envorce: the violation complained of was or is being committed or 4.44, Ur 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 Teport and order of the commission or board. Upon such Court to cause notice thereof to filing of the application and transcript the court shall be served on, ro. ca 1 have power to use notice thereof to be served upon such person andbsve power to thereupon shall have jurisdiction of the proceeding and Srming, | modity. of the question determined therein, and shall have power aside order of to make and enter upon the pleadings, testimony, and board Proceedings set forth in such transcript a decree affirm- Ng, modifying, or setting aside the order of the commis-

Sec. 11. JURISDICTION TO ENFORCE COMPLIANCE.

COMPLAINTS, FINDINGS, AND ORDERS. APPEALS.

SERVICE-Continued. . eo~'.::t!~!n• ~: sion or board. The findings of the commission or board board conclusive as to the facts if supported by testimony shall be con- If supported b7 ' ' testimony. elusive. If either party shall apply to the court for leave .l.rn7~~~~o~v~! to adduce additional evidence, and shall show to the satde_ntctedmay isfaction of the court that such additional evidence is m1 e on bepe1•1•app • · cation, and ohow-material and that there were reasonable grounds for the lng 4>f reasonable ground tor tail-failure to adduce such evidence in the proceeding before ure to adduce theretofore. the commission or board, the court may order such additional evidence to be taken before the commission or board and to be adduced upon the hearing in such manner and upon such terms and conditions as to the court may Comml .. lon may make or seem proper • The commission or board may modify its board ~~din~: ~r~~~ findings as to the facts, or make new findings, by reason 100 tbereo • 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 de!r~~':~J!ct~~ order, with the return of such additional evidence. The ri:::;r, gft~tf:. 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 as provided in section two hundred and forty of the Judicial Code.

Petition b7 re-fPOndent to re- Any party required by such order of the commission or ~."'anc:!d.i!.1.t 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 ~e"ed oa copy of such petition shall be forthwith served upon the ~~~~J~'h"1 c0~ commission or board, and thereupon the commission or ~~·r~~"n tg c:r; Loard forthwith shall certify and file in the court a !~d"j~·~r:. 0:0~~ transcript of the record as hereinbefore provided. Upon the filing of the transcript the court shall have the same eo~~~~1~~~~'!.~! jurisdiction to affirm, set aside, or modify the order of the:rn~:· g; i.g~: commission or board as in the case of an application by th • • e COmmiSSIOn Or bOar d f or tb e en f orcemen t 0 f 1"tS Or der,andmissioncommlaaion·1or board ort n rboard'•• elmllul1lind- an d th e fi n d"mgs o f t} te commiSSIOn• · or boar d as to the conclusive facts, if supported by testimony, shall in like manner be conclusive.

Turfsdfrtlon .,, The jurisdiction of the circuit court of appeals of the ~~~~Appeal• United States to enforce, set aside, or modify orders of the commission or board shall be exclusive. Such proceedings in the circuit court of appeals shall, Proceedings to have precedence be given precedence over other cases pending therein, and ond’ tobe nese shall be in every way expedited. No order of the com- Aited. mission or board or the judgment of the court to enforce angiiability under the same shall in any wise relieve or absolve any person ‘tected. from any liability under the antitrust Acts," Complaints, orders, and other processes of the commis- ,,$7yce of comsion or board under this section may be served by any-boatd’s,com one duly authorized by the commission or board, either #24, other proc

(a) by delivering a copy thereof to the person to be Peronsl; or served, or to a member of the partnership to be served, or to the president, secretary, or other executive officer or a director of the corporation to be served; or (b) by, Atottice or leaving a copy thereof at the principal office or place of nes: or business of such person; or (c) by registering and mail-may Tesistered ing a copy thereof addressed to such person at his principal office or place of business. The verified return by the of person return person so serving said complaint, order, or other process *n4 return ont setting forth the manner of said service shall be proof Proof of service. of the same, and the return post-office receipt for said complaint, order, or other process registered and mailed as aforesaid shall be proof of the service of the same.

Sec. 12. PLACE OF PROCEEDINGS UNDER ANTITRUST

LAWS. SERVICE OF PROCESS.

3 i i i Proceedi Src. 12, That any suit, action, or proceeding under the pe proceeding may antitrust laws’ against a corporation may be brought Process served in not only in the judicial district whereof it is an inhabit-corporation aa ant, but also in any district wherein it may be found or Pherever it may 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.

Sec. 13, SUBP@ENAS FOR WITNESSES IN PROCEEDINGS

BY OR ON BEHALF OF THE UNITED STATES UNDER

ANTITRUST LAWS, Sec, 18. That in any suit, action, or proceeding brought by or on behalf of the United States subpanas for wit- Resses who are required to attend a court of the United States in any judicial district in any case, civil or crimi- A “For text of Sherman Act, see footnote on pp. 533-585. For Antitrust eta as enumerated in Clayton Act, see first paragraph thereof on p. 532,

SEC. 13. SUBPŒNAS FOR WITNESSES IN PROCEEDINGS

BY OR ON BEHALF OF THE UNITED STATES UNDER

ANTITRUST LAWS—Continued.

May run into any district, but permission of trial court necessary in civil cases if witness lives out of district and more than 100 miles distant. nal, arising under the antitrust laws ¹⁵ may run into any other district: Provided, That in civil cases no writ of subpœna shall issue for witnesses living out of the district in which the court is held at a greater distance than one 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.

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

SEC. 15. JURISDICTION OF UNITED STATES DISTRICT

COURTS TO PREVENT AND RESTRAIN VIOLATIONS OF

THIS ACT.

District attorneys, under direction of Attorney General, to institute proceedings. SEC. 15. That the several district courts of the United States are hereby invested with jurisdiction to prevent and restrain violations of this Act, and it shall be the duty of the several district attorneys of the United States, in their respective districts, under the direction of the Attorney General, to institute proceedings in equity to Proceedings may be by way of petition setting forth the case, etc. 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 pro- After due notice, Court to proceed to hearing and determination as soon as may be. hibited. When the parties complained of shall have been duly notified of such petition, the court shall proceed, as soon as may be, to the hearing and determination of the Pending petition instituting proceeding Court may make temporary restraining order or prohibition. 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. Whenever it shall appear to the court before which any such proceeding may be pending that the ends ¹⁵ For text of Sherman Act, see footnote on pp. 533-535. For Antitrust Acts as enumerated in Clayton Act, see first paragraph thereof on p. 532. 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-reparable 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. 533-535. For Antitrust Acts as enumerated in Clayton Act, see first paragraph thereof on p. 532.

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 iat Tithout ne of record. In case a temporary restraining order shall reiminary 1° be granted without notice in the contingency specified, unction to be civing? poling the 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 may move Stasoe. , lution or modi-restraining order the opposite party may appear and fication on tw 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. dice ease’ 3: = 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. anna **® »t 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 laws relating to the judiciary,” approved March third, nineteen hundred and eleven.

Sec. 18. NO RESTRAINING ORDER OR INTERLOCUTORY

ORDER OF INJUNCTION WITHOUT GIVING SECURITY.

winter §=6- Sz. 18. That, except as otherwise provided in section of this ach =»: 16 of this Act, no restraining order or interlocutory order of injunction shall issue, except upon the giving of security by the applicant in such sum as the court or judge may deem proper, conditioned upon the payment of such costs and damages as may be incurred or suffered by any party who may be found to have been wrongfully enjoined or restrained thereby,

CLAYTON ACT. : 551

Sec. 19. ORDERS OF INJUNCTION OR RESTRAINING

ORDERS—REQUIREMENTS.

Szo. 19. That every order of injunction or restraining Must set forth reasons, be speorder shall set forth the reasons for the issuance of thecific, and de- . . ‘ . scribe acts to be same, 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 pinding only the suit, their officers, agents, servants, employees, and pri? fuer om 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 tse property, or to a property right, of the party making tho to prevent irrepapplication, for which injury there is no adequate remedy arable Intury. at law, and such property or property right must be Threatened described with particularity in the application, which erty Fighta, must Must be in writing and sworn to by the applicant or by particularity. his agent or attorney. ini ind I ~ Nott hibit And no such restraining order or injunction shall pro- , Not to prohibit +L: : ‘ from termihibit any person or persons, whether singly or in concert, sone from termi: from terminating any relation of employment, or from tin, cf employceasing to perform any work or labor, or from recom. mending | others Mending, advising, or persuading others by peaceful means 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 andlawful 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 nute by any party thereto; nor shall any of the acts speciin this paragraph. : . : not to be consid: fied in this paragraph be considered or held to be violaered violations of any Jaw 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, itact done also act or thing so done by him be of such character as to confense under laws ctitute also a criminal offense under any statute of the oF gt btate 42 United States, or under the laws of any State in which which committed, ecded aguingtes the act was committed, shall be proceeded against for his hereinafter Prosaid 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 fudge puilty of such contempt, the court or judge thereof, or may iesue rule to by. ‘yat. es show cause why any judge therein sitting, may issue a rule requiring the should ‘hot ‘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 reconta Malezed turn, in the judgment of the court, the alleged contempt ficiently pureed be not sufficiently purged, a trial shall be directed at a by raturn, 7 time and place fixed by the court; Provided, however, i i Fail f nat- That if the accused, being a natural person, fail or refuse, Failure of mat. ke ret Atto make return to the rule to show cause, an attachment make return. At may issue against his person to compel an answer, and in Perm case of his continued failure or refusal, or if for any reason it be impracticable to dispose of the matter on the return day, he may be required to give reasonable bail for his attendance at the trial and his submission to the final judgment of the court. Where the accused is a body | aif body corpo: corporate, an attachment for the sequestration of its tor sequestration f its property. property may be issued upon like refusal or failure to” answer.

In all cases within the purview of this Act such trial, Trial may be y court or, upmay be by the court, or, upon demand of the accused, by of demand of ac a jury; in which latter event the court may impanel a, jury from the jurors then in attendance, or tho court or the judge thereof in chambers may cause a sufficient number of jurors to be selected and summoned, as provided by law, to attend at the time and place of trial, at which time a jury shall be selected and impaneled as upon a trial for Trial to, com misdeameanor; and such trial shall conform, as near as in eriminkl ‘caves procecuted by inmay be, to the practice in criminal cases prosecuted by gictment or upon indictment or upon information.

Tf the accused be found guilty, judgment shall be entered accordingly, prescribing the punishment, either by orenalty: fine fine or imprisonment, or both, in the discretion of the or both ° court, Such fine shall be paid to the United States or to | Fine paid to tatea or the complainant or other party injured by the act con-complainant 0 or part stituting the contempt, or may, where more than one isso jured. th te: cused natural damaged, be divided or apportioned among them as the Person, fine to court may direct, but in no case shall the fine to be paid to exceed 41,000, to the United States exceed, in case the accused is a natural person, the sum of $1,000, nor shall such imprisonment exceed the term of six months: Provided, That in any case the court or a judge thereof may, for good cause court or judge shown, by affidavit or proof taken in open court or before with mle und in such judge and filed with the papers in the case, dispense for arret With the rule to show cause, and may issue an attachment for the arrest of the person charged with contempt; in which event such person, when arrested, shall be brought, Accused to be ought before before such court or a judge thereof without unnecessary fudge arbromy tly delay and shall be admitted to bail in a reasonable penalty > bail. Proceed. for his appearance to answer to the charge or for trial for eae en it rule the contempt; and thereafter the proceedings shall be the same as provided herein in case the rule had issued in the first instance.

Sec. 23. EVIDENCE. APPEALS.

Evidence may SEC. 23. That the evidence taken upon the trial of any bill of exceptions. persons so accused may be preserved by bill of exceptions, Judgment re-and any judgment of conviction may be reviewed upon viewable upon writ of error, writ of error in all respects as now provided by law in criminal cases, and may be affirmed, reversed, or modified Granting otae tneti. . . wanting otas justice may require. Upon the granting of such writ cution, and = of error, execution of judgment shall be stayed, and the aahgeused te be accused, if thereby sentenced to imprisonment, shall be 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 Suc. 24. That nothing herein contained shall be conor near presence. . of court, or — strued to relate to contempts committed in the presence of disobedience of the court, or so near thereto as to obstruct the adminiswrit ot process tration of justice, nor to contempts committed in disby jor. in bebalt obedience of any lawful writ, process, order, rule, decree, ‘or command entered in any suit or action brought or acid other eases prosecuted in the name of, or on behalf of, the United Punished inotates, but the same, and all other cases of contempt not cocina ues Specifically embraced within section twenty-one of this su” ““4 ' Act, may be punished in conformity to the usages at law and in equity now prevailing.

Sec, 25. PROCEEDINGS FOR CONTEMPT. LIMITATIONS.

eqitintt be inst Sec, 25, That no proceeding for contempt shall be inyear, stituted against any person unless begun within one year Not a bar tofrom the date of the act complained of; nor shall any criminal prosecu- ‘ - 8 . thon, such proceeding be a bar to any criminal prosecution for cengnding Bro: the same act or acts; but nothing herein contained shall fected, 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.

Src. 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 {2 oe" 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.] [Portic—No, 126—65ru Coneress.]

[H. R. 2316.]

AN ACT To promote export trade, and for other purposes,

Sec. 1. DEFINITIONS.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the words “ export trade” wherever used in «gxporttrade” 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. ° 4 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.

Szo, 2, That nothing contained in the Act entitled “ An, Atmciation not if organ- Act to protect trade and commerce against unlawful re- ted {or and en. straints and monopolies,” approved July second, eighteen trade slely. hundred and ninety,? shall be construed as declaring to be illegal an association entered into for the sole purpose of engaging in export trade and actually engaged solely in “Association”? * With the exception of a reference thereto in the case of United States

Vv. United States Steet Corporation, 251-U: 8 417 at 453, and in Ez Parte Lamar, 274 Fed, 160 at 171, this act appears as yet neither to have been involved in nor referred to in any reported case. * For text of Sharman Act, see footnote on pp. 533-535,

Sec. 2, ASSOCIATION FOR OR AGREEMENT OR ACT

MADE OR DONE IN COURSE OF EXPORT TRADE—

STATUS UNDER SHERMAN ANTITRUST LAW—Continued. none tereement such export trade, or an agreement made or act done in in restraint’ ofthe course of export trade by such association, provided * United States, or jati; 1 } United States, orsuich association, agreement, or act is not in restraint of trade of ary do trade within the United States, and is not in restraint of tor, and the export trade of any domestic competitor of such aseeiiughamocia: sociation: And provided further, That such association rtifictall i; ; } artifctally er i~ does not, either in the United States or elsewhere, enter hance or depress: . prices oh oreube into any agreement, understanding, or conspiracy, or do tantially lessen. stantially omerany act which artificially or intentionally enhances or de restrain trade in 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 Yewtul underunlawful restraints and monopolies, and for other pur- Clayton Act un- . lens effect may be poses,” approved October fifteenth, nineteen hundred or substantially and fourteen,* shall be construed to forbid the acquisilessen competition yithin 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.

Sec. 4. FEDERAL TRADE COMMISSION ACT EXTENDED

TO EXPORT TRADE COMPETITORS.

Seo, 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- ‘Bee antic, p. 532 et seq.

* See ante, p. 519 et seq. port trade, even though the acts constituting such unfair, Even though methods are done without the territorial jurisdiction of doe without territorial jurisdicthe United States. tion of United States

Sec. 5. OBLIGATIONS OF EXPORT TRADE ASSOCIA-

TIONS UNDER THIS ACT. PENALTIES FOR FAILURE TO

COMPLY. DUTIES AND POWERS OF COMMISSION, iati in Export trad Sc, 5. That every association now engaged solely in, Export trade export trade, within sixty days after the passage of this corporations _ to iati 1 i Federal Trad Act, and every association entered into hereafter which Federal Trade engages solely in export trade, within thirty days after ing location of its creation, shall file with the Federal Trade Commis-addresses of off sion a verified written statement setting forth the loca-s!0 articles of incorporation or tion of its offices or places of business and the names and contract of ‘astoaddresses 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- ,, 7o furnish also mission such information as the commission may require orpanisatton as to its organization, business, conduct, practices, management, and relation to other associations, corporations, partnerships, and individuals. Any association which shall fail so to do shall not have the benefit of the pro- ,,Fenalties, loss visions of section two and section three of this Act, and 2 2d 8, 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 bo the, District ator: duty of the various district attorneys, under the direction fer, tserery 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.

Sec. 5. OBLIGATIONS OF EXPORT TRADE ASSOCIA-

TIONS UNDER THIS ACT. PENALTIES FOR FAILURE

TO COMPLY. DUTIES AND POWERS OF COMMISSION—

Continued.

Federal Trade Whenever the Federal Trade Commission shall have Commission to; oo investigate te reason to believe that an association or any agreement straint of trade, artificial orintenx made or act done by such association is in restraint of tional enhance- Hon of price or trade within the United States or in restraint of the exfubstantial 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 mut] r2¢°™ 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 To reter fnd-business in accordance with law. If such association fails ings and recom- Tienes Goer; to comply with the recommendations of the Federal Trade it association fail icq} i iss] i 1 fo eo us 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. Commission Tor the purpose of enforcing these provisions the Fedgiven same powera ag under “ederal Trade Commission shall have all the powers, so far fer as appliable 28 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.

*Sco ante, p. 619 et seq