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BEFORE THE

每 A
HEARINGS
ú, prees.

Hoke.. COMMITTEE ON
INTERSTATE AND FOREIGN COMMERCE.

HOUSE OF REPRESENTATIVES

EIGHTIETH CONGRESS

SECOND SESSION

ON

H. R. 3871

A BILL TO AMEND THE ACT CREATING THE FEDERAL
TRADE COMMISSION, TO DEFINE ITS POWERS AND

DUTIES, AND FOR OTHER PURPOSES

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COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE

CHARLES A. WOLVERTON, New Jersey, Chairman CARL HINSHAW, California

CLARENCE F. LEA, California LEONARD W. HALL, New York

ROBERT CROSSER, Ohio JOSEPH P. O'HARA, Minnesota

ALFRED L. BULWINKLE, North Carolina WILSON D. GILLETTE, Pennsylvania VIRGIL CHAPMAN, Kentucky ROBERT HALE, Maine

LINDLEY BECKWORTH, Texas HARRIS ELLSWORTH, Oregon

J. PERCY PRIEST, Tennessee MARION T. BENNETT, Missouri

OREN HARRIS, Arkansas JAMES I. DOLLIVER, Iowa

GEORGE G. SADOWSKI, Michigan EDWARD J. ELSAESSER, New York

RICHARD F. HARLESS, Arizona
JOHN W. HESELTON, Massachusetts DWIGHT L. ROGERS, Florida
HUGH D. SCOTT, JR., Pennsylvania

EUGENE J. KEOGH, New York
WILLIAM J. MILLER, Connecticut
HENDERSON H. CARSON, Ohio
JOHN B. BENNETT, Michigan
FRED E. BUSBEY, Illinois

ELTON J. LAYTON, Clerk

JULIA WATTERSON, Assistant Clerk 11

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stills at

UA6

2 2

1948

Page

Text of H. R. 3871

1

Statement of

Berge, Wendell, Washington, D. C---

41

Cassedy, James W., assistant general counsel, Federal Trade Com-

mission---

235

Digges, Isaac W., general counsel, Association of National Advertisers_

Feldman, George J., attorney, Washington, D. C---

73, 78

Freer, R. E., chairman, Federal Trade Commission.

281

39

Hoge, James F., attorney, New York, N. Y----

155, 174

King, Henry B., secretary, United States Trade Mark Association.-- 36

Montague, Gilbert H., New York, N. Y.

120
Ooms, Casper W., attorney, Chicago, Ill.

133

Oppenheim, S. Chesterfield, professor of law and acting dean, George

Washington University Law School -

88, 93

Perry, Kenneth, vice president, Johnson & Johnson, New Brunswick,

N. J.--

185

Sullivan, John Dwight, general counsel, Advertising Federation of

America

16

Taggart, Leslie D., New York, N. Y.-

7

Wooden, Walter B., associate general counsel, Federal Trade Com-

mission.-

206

Briefs, statements, reports, etc., submitted for the record by-

Columbia University School of Law, communication from, to Chair-

man Wolverton

297

Federal Trade Commission :

Appeals in Federal Trade Commission cases, table_-

257

Communication relative to number of complaints issued and dis-

missed---

Complaints and application for complaints, table_-

256

Personnel chart_-

Facing page 254
Personnel in Federal Trade Commission, March 31, 1948, table---

258

Report

2

Statistics on applications for complaint-

298

Travel chart, map--

Facing page 184

Harvard University Law School, communication from, to Mr. O'Hara -- 49

Justice Department, report--

6

Martin, John D., judge, sixth circuit court of appeals, communica-

tion from, to Mr. O'Hara.--

50

National Small Business Men's Association, Inc., communication from,
to Mr. O'Hara..

296
O'Hara, Hon. Joseph P. :

Federal Trade Commission's Intrusion Upon the Tripartite Sepa-
ration of Powers, article--

203
Judicial Review of Evidence, series of statements and citations
on Federal Trade Commission proceedings.

275

Let's Stop Kicking Business Around, article in American maga-

zine by Lowell B. Mason..

195

These Inferior Federal Courts, article in Mississippi Law Jour-

nal by Judge Curtis L. Waller ----

198

Toilet Goods Association, Inc., communication from, to Mr. O'Hara--- 205

III

22

AMENDING FEDERAL TRADE COMMISSION ACT

WEDNESDAY, APRIL 28, 1948

HOUSE OF REPRESENTATIVES,
COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE,

Washington, D.C. The committee met at 10 a. m., in room 1334, New House Office Building, pursuant to call, Hon. Charles A. Wolverton (chairman) presiding

The CHAIRMAN. The committee will please come to order.

The hearing this morning will be on H. R. 3871 introduced by our colleague, Mr. O'Hara, a bill to amend the act creating the Federal Trade Commission, to define its powers and duties, and for other purposes.

(H. R. 3871 the bill above referred to is as follows:)

[H. R. 3871, 80th Cong., 1st sess.)

A BILL To amend the Act creating the Federal Trade Commission, to define its powers

and duties, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 5 of the Act entitled “An Act to create a Federal Trade Commission, to define its duties, and for other purposes”, approved September 26, 1914 (38 Stat. 719; U. S. C., title 15 ; sec. 45), as amended, is hereby amended to read as follows :

"SEC. 5. (a) Unfair methods of competition in commerce and unfair or deceptive acts or practices in commerce are hereby declared unlawful. The Commission is hereby empowered and directed to prevent persons, partnerships, or corporations, except banks, common carriers subject to the Acts to regulate commerce, air carriers and foreign air carriers subject to the Act of June 23, 1938 (52 Stat. 973), and persons, partnerships, or corporations subject to the Act of August 15, 1921 (42 Stat. 159), except as provided in section 406 (b) of said Act (42 Stat. 169), from using unfair methods of competition in commerce and unfair or deceptive acts or practices in commerce.

(b) (1) Whenever the Commission shall have reason to believe that any such person, partnership, or corporation has been or is using any unfair method of competition or unfair or deceptive act or practice in commerce, and if it shall appear to the Commission that a proceeding in respect thereof would be to the interest of the public, it shall, by any of its attorneys designated by it for such purpose, file in the district court of the United States for the district, or in the United States court of any Territory, in which such person, partnership, or corporation resides or maintains his or its principal place of business, a complaint stating its charges in that respect and praying that the court enter an order requiring such person, partnership), or corporation to cease and desist from using such method of competition of such act or practice.

“(2) The Rules of Civil Procedure for the District Courts of the United States shall govern such proceeding.

“(3) Any person, partnership, or corporation may at any time make application and upon good cause shown may be allowed by the court to intervene and appear in said proceeding by counsel or in person.

“(c) If upon conclusion of its hearing the court shall be of the opinion that the method of competition or the act or practice in question is prohibited by this Act and that the enjoining of it would be to the interest of the public, it shall

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