FEBRUARY 17, 1938. Memorandum for the commission on House Joint Resolution 594, a joint resolution directing the Federal Trade Commission to investigate the policies employed by manufacturers in distributing motor vehicles, accessories, and parts, and the policies of dealers in selling motor vehicles at retail, as these policies affect the public interest. On February 11, 1938, the House Committee on Interstate and Foreign Commerce transmitted copy of the above-entitled resolution and requested a report, together with such comment as the Commission might desire to make, and this report is submitted pursuant to the Commission's direction of February 12, 1938, based upon such request. By memorandum of July 10, 1937, a single report was submitted pursuant to the Commission's direction on House Joint Resolution 389, Seventy-fifth Congress, first session, and House Joint Resolution 351, Seventy-fifth Congress, first session, in which certain amendments were suggested. In House Joint Resolution 594, the more important of the suggested amendments have been adopted, and in its present form the resolution directs the Federal Trade Commission to investigate the policies employed by manufacturers in distributing motor vehicles, accessories, and parts, and the policies of dealers in selling motor vehicles at retail, as those policies affect the public interest. The resolution would require the Commission to report its findings to Congress within 1 year from the date of the enactment of the resolution, together with its recommendations concerning whatever remedial legislation it deems necessary and proper. The purposes of the investigation are stated therein as follows: "1. The extent of concentration of control and of monopoly in the manufacturing, warehousing, distribution, and sale of automobiles, accessories, and parts, including methods and devices used by manufacturers for obtaining and maintaining their control or monopoly of such manufacturing, warehousing, distribution, and sale of such commodities, and the extent, if any, to which fraudulent, dishonest, unfair, and injurious methods are employed, including combinations, monopolies, price fixing, or unfair trade practices; "2. The extent to which any of the antitrust laws of the United States are being violated." For the purposes of the investigation, the Commission is given all the powers conferred upon it by the Federal Trade Commission Act, and $50,000 is authorized to be appropriated for such investigation. At the time the prior report on House Joint Resolution 389 and House Joint Resolution 351, supra, was submitted to the Bureau of the Budget, it was stated that that Bureau would have no objection to the presentation to the House Committee on Interstate and Foreign Commerce of such report as the Commission might deem appropriate on those bills. It was suggested that the provision in the resolution that makes instead of authorizing, an appropriation, would not be in accord with the President's program. The present resolution (House Joint Resolution 594) complies with this suggestion by authorizing the money to be appropriated instead of directly making the appropriation. On January 14, 1938, pursuant to a request of the House Committee on Interstate and Foreign Commerce, the chief counsel and Attorney Everett F. Haycraft, in response to the request of the committee, appeared before a subcommittee of that committee, and made a statement in regard to the cost of the investigation proposed in House Joint Resolution 389. The substance of the statements made by the representatives of the Commission before the subcommittee on this matter was that if the resolution passed, carrying the $50,000 appropriation, the work could be begun and could possibly be completed within the next fiscal year, from the $50,000 appropriation and from available funds, provided that no more investigations of this type be given to the Commission without carrying appropriations therefor. As the resolution in its present form does not broaden the scope of the investigation proposed in former House Joint Resolution 389, it is not deemed necessary to make further comment thereon. Respectfully submitted. W. T. KELLEY, Chief Counsel. Extensive hearings were held by a subcommittee of the Interstate and Foreign Commerce Committee of the House. Allegations were made that the policies pursued by automobile manufacturers have been and are responsible for creating unethical and unfair methods of competition among automobile retailers which are harmful to the consuming public, and that there is a lack of sound contractual agreements between automobile manufacturers and their dealers. It was. further alleged that the policies of the manufacturers caused the development of many unfair trade practices which are harmful to all parties concerned and are particularly harmful to the general public. Voluminous evidence was introduced to substantiate the allegations of the proponents. The automobile manufacturers were represented at the hearings. While the statements submitted by the representatives of the automobile manufacturers said that they did not oppose the investigation, still all the evidence introduced by the manufacturers was in denial of the allegations made by the proponents. Upon the evidence presented, the committee felt fully justified in recommending that the matter be investigated by a skilled, experienced governmental body. Passage of this resolution would simply direct the Federal Trade Commission to determine the extent of concentration of control and of monopoly in the manufacturing, warehousing, distribution, and sale of automobiles, accessories, and parts, including methods and devices used by manufacturers for obtaining and maintaining their control or monopoly of such manufacturing, warehousing, distribution, and sale of such commodities, and the extent, if any, to which fraudulent, dishonest, unfair, and injurious methods are employed, including combinations, monopolies, or unfair trade practices; the extent to which any of the antitrust laws of the United States are being violated; and for the purposes of the investigation hereby directed and authorized, the Federal Trade Commission would be given all the powers conferred upon it by the Federal Trade Commission Act. The Federal Trade Commission would report its findings to the Congress of the United States within 1 year rom the date of enactment of the resolution, recommending whatever remedial legislation it deems necessary and proper. An appropriation of $50,000 is authorized for the purpose of the investigation. The Committee on Interstate and Foreign Commerce of the House of Representatives of the United States Congress recommend the passage of the resolution (H. J. Res. 594). О WITHDRAWAL AND RESERVATION OF SMALL TRACTS OF PUBLIC DOMAIN IN ALASKA FEBRUARY 24, 1938.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed Mr. DIMOND, from the Committee on Indian Affairs, submitted the following REPORT [To accompany H. R. 9358] The Committee on Indian Affairs, to whom was referred the bill (H. R. 9358) to authorize the withdrawal and reservation of small tracts of the public domain in Alaska for schools, hospitals, and other purposes, having considered the same, report the same back to the House with the recommendation that the bill do pass. The purpose of the bill is to authorize the Secretary of the Interior to withdraw wherever needed small tracts of the public domain, not to exceed 640 acres in each case, for schools, hospitals, and such other purposes as may be necessary in administering the affairs of the natives. of Alaska. More than 99 percent of the entire area of Alaska is still in the public domain. The Government is undertaking a program for the education, health service, and medical relief of the natives of Alaska, including Indians, Eskimos, and Aleuts. Several hospitals have been built as well as a number of schools, and the construction of more is contemplated. It is not expedient to construct such schools and hospitals on the public domain for the reason that the public domain is subject to location, occupation, and entry by citizens of the United States under the general land and mining laws. It would not be wise to construct a hospital upon public domain and later have someone locate a mining claim covering the same ground. Accordingly, the only practical solution is to entirely withdraw the land upon which a school or hospital is to be located prior to the construction of such school or hospital. Since withdrawals should be so made, it is much more convenient that they be made under general authority of law rather than to secure the passage of a separate act of Congress in each case. It will be noted the area of each tract so withdrawn may not exceed 640 acres. The bill calls for no expenditure of money either directly or indirectly. The Bureau of the Budget has no opposition to its passage. Draft of the bill was prepared in the Interior Department and sent to the Speaker of the House of Representatives with a letter dated January 31, 1938, addressed to the Speaker and signed by the Secretary of the Interior, reading as follows: DEPARTMENT OF THE INTERIOR, The SPEAKER OF THE HOUSE OF REPRESENTATIVES. MY DEAR MR. SPEAKER: There is enclosed a draft of a proposed bill to authorize the withdrawal and reservation of small tracts of the public domain in Alaska for schools, hospitals, and other purposes. The bill, if enacted, would authorize the Secretary of the Interior to withdraw whenever needed small tracts of the public domain, not to exceed 640 acres in each case, for schools, hospitals, and such other purposes as may be necessary in administering the affairs of the natives of Alaska. The act of May 1, 1936 (49 Stat. 1250), authorizes the Secretary of the Interior to designate as reservations areas of land theretofore formally reserved for the benefit of the natives of Alaska, and to add to such reservations whenever needed adjacent public lands; also, to designate reservations in new areas, provided it can be shown that the Indian occupants need and can use the areas to be withdrawn. The Interior Department appropriation act for the fiscal year 1938 (Public No. 249, 75th Cong.) makes appropriations for education and health activities in Alaska and contains authority for the purchase of lands for the construction of schools, hospitals, and other needed buildings. There would be no legal difficulty in securing title to lands purchased for such purposes from private owners. It appears, however, that most of the new construction in Alaska for which money has been appropriated will be upon lands which are now a part of the public domain. The acts above referred to apparently do not cover reservations of this kind. As section 4 of the act of March 3, 1927 (44 Stat. 1347), which has been held applicable to Alaska, provides that reservations of public lands for Indian purposes cannot be made except by act of Congress, there is no authority of law for permanently reserving the small tracts of public domain that will be needed for the purposes indicated. As it is not deemed advisable to construct schools, hospitals, and other buildings on lands not permanently withdrawn from disposition, legislation such as proposed appears desirable. If legislation of this general nature is not passed, it will be necessary to seek separate legislation in each case in which a reserve on the public domain for a school or hospital is needed. I, therefore, recommend that the enclosed draft of proposed legislation receive favorable consideration. The Acting Director of the Bureau of the Budget has advised that there is no objection to the presentation of this report to the Congress. Sincerely yours, HAROLD L. ICKES, |