Chain stores.-The investigation has been completed and written up in a series of published reports treating of close to 30 different phases of the national chain-store industry. A final report containing the Commission's general conclusions and recommendations will later be issued. Cottonseed prices.-Investigation completed and final report transmitted to the Senate, May 19, 1933. Price bases. Further reports being prepared. (See p. 56.) Cement industry.-Investigation completed and final report transmitted to the Senate, June 9, 1933. Building materials.-Final report now under consideration. HOW THE COMMISSION WORK IS HANDLED The work of the Federal Trade Commission may be divided into the following general divisions: Securities registration, legal, general investigations, and administrative. By virtue of the Securities Act of 1933 the securities division has charge of the Nation-wide registration of proposed issues of securities. The legal division has charge of proceedings against respondents charged with unfair methods of competition as forbidden by the Federal Trade Commission Act and of other practices condemned by the Clayton Act, and with the trial of cases before the Commission and in the courts. This work is carried on through the following officials: Chief examiner, board of review, chief trial examiner, and the chief counsel, who is chief legal adviser to the Commission. There are also the division of trade practice conferences, the special board of investigation for cases of false and misleading advertising, and the foreign-trade work, which is under supervision of the chief counsel. Members of the trial examiners' division are delegated to preside at trial of formal complaints and to sit as special masters in the taking of testimony in investigations conducted pursuant to congressional resolutions as well as at hearings held in pursuance of the Securities Act of 1933. They also arrange settlements of applications for complaint, by stipulations. This method is employed particularly in cases where the practice complained of is not so fraudulent or vicious that protection of the public demands the regular procedure of complaint. The stipulation procedure provides an opportunity for the respondent to enter into a stipulation of the facts and voluntarily agree to cease and desist forever from the alleged unfair methods set forth therein. Such stipulation is subject to the final review and approval of the Commission. The economic division, under the chief economist, carries on certain of the general inquiries of the Commission, whether directed by the President, by Congress, or the Attorney General, or by the Commission itself, such as the current investigations regarding power and gas utilities, chain-store systems, and price bases. The economic division carries on that part of the power inquiry which deals with the financial structure, organization, and management of the utilities, although the chief counsel has charge of the examination in public hearings. The chief examiner has cooperated with the economic division in studying legal aspects of the chain-store survey. The investigations of cottonseed prices, cement industry, and building materials have been in the custody of the chief examiner, the chief counsel furnishing an attorney for work on the cottonseed inquiry, and the economic division cooperating in the cement inquiry. Responsible directly to the assistant secretary of the Commission, the administrative division conducts the business affairs of the Commission and is made up of units usually found in Government establishments, the functions of such units being governed largely by general statutes. These units are as follows: Accounts and personnel, disbursing office, docket, publications, editorial service, mails and files, supplies, stenographic, hospital, and the library. THE COMMISSIONERS AND THEIR DUTIES The Federal Trade Commission is one of the independent agencies of the Government, consisting of five commissioners appointed by the President and confirmed by the Senate. Not more than three of these members may belong to the same political party. The term of office of a commissioner is 7 years, as provided in the Federal Trade Commission Act. The term of each commissioner dates from the 26th of September preceding the time of his appointment, September 26 marking the anniversary of the passage of the act in 1914. At the close of the fiscal year the Commission was composed of the following members: Charles H. March, of Minnesota, chairman; Garland S. Ferguson, Jr., of North Carolina; William E. Humphrey, of Washington; Ewin L. Davis, of Tennessee; and Raymond B. Stevens, of New Hampshire. Commissioner Davis was appointed by President Roosevelt in May to succeed former Commissioner C. W. Hunt while Commissioner Stevens was appointed in June to succeed the late Edgar A. McCulloch. Commissioner Stevens' term expired September 25, 1933; the vacancy was filled October 7 when President Roosevelt appointed James M. Landis, of Massachusetts. On the same day the President declared the position filled by Commissioner Humphrey vacant and appointed George C. Mathews, of Wisconsin, to take his place. Mr. March was chosen by the Commission as its chairman for the calendar year of 1933, succeeding Commissioner Humphrey. Each January a member of the Commission is designated to serve as chairman for the succeeding year. The position rotates so that each commissioner serves at least one year during his term of office. The chairman presides at meetings of the Commission and signs the more important official papers and reports at the direction of the Commission. Official activities of the commissioners are generally similar in character although each assumes broad supervisory charge of a different division of work. One commissioner may maintain contact with the securities division, another with the chief counsel and his staff or the chief examiner, and so on; however, all matters scheduled to be acted upon by the Commission are dealt with by the Commission as a whole or a quorum thereof; consequently, the facts in all cases to come before the whole body are previously placed before the commissioners individually for their consideration. The commissioners meet regularly for transaction of official business on Mondays, Wednesdays, and Fridays at the Commission's offices in Washington and very frequently on adjournment or call of the chairman. They also hear final arguments in cases before the Commission and arguments on motions of the attorneys for the Commission or the respondents. Besides these duties and their conferences with persons discussing official business, the members have a large amount of reading and study in connection with the numerous matters before them for decision. The commissioners individually preside at trade-practice conferences held for industries in various parts of the country. The Commission has a secretary, who is its executive officer. PUBLICATIONS OF THE COMMISSION Publications of the Commission, reflecting the character and scope of its work, vary in content and treatment from year to year, especially those documents relating to general business inquiries. Such studies are illustrated by appropriate charts, tables, and statistics. They deal not only with current developments in an industry but contain scientific and historical background that is usually of value not only to members of the industry concerned but to the student and the writer as well. Many of these reports have been used as textbooks in the universities. The findings and orders of the commission as published contain interesting material regarding business and industry. They tell, case by case, the story of unfair competition in interstate commerce and of the efforts put forth by the commission to correct and eliminate it. Wide discretion in issuing publications is given the Commission by law. The Federal Trade Commission Act, section 6 (f), says the Commission shall have power To make public from time to time such portions of the information obtained by it hereunder, except trade secrets and names of customers, as it shall deem expedient in the public interest; and to make annual and special reports to the Congress and to submit therewith recommendations for additional legislation; and to provide for the publication of its reports and decisions in such form and manner as may be best adapted for public information and use. |