(h) To make an investigation and report as to the methods best adapted to the carrying out of a final decree of dissolution under the Act entitled "An Act to protect trade and commerce against unlawful restraints and monopolies," approved July 2, 1890, when such a decree shall have been entered against any corporation subject to the jurisdiction of the Commission and when the court having jurisdiction of the enforcement of such decree shall refer the case to the Commission for its action as herein provided.

SEC. 5. That for the purposes of this Act and in aid of its powers herein granted the Commission shall have power to compel the attendance and testimony of witnesses and the production of documentary evidence equivalent so far as applicable within its jurisdiction to the power conferred upon the Interstate Commerce Commission in the Act entitled "An Act to regulate commerce," approved February 4, 1887, as amended, and specifically the Commission shall have power to require by subpena the attendance and testimony of witnesses and the production of all books, papers, contracts, agreements, documents, or other things of every kind and nature whatsoever relating to any matter under investigation by the Commission. Such attendance of witnesses and the production of such documentary evidence may be required from any place in the United States at any designated place of hearing, and in case of disobedience to such subpena the Commission, or any party to a proceeding before the Commission, may, with the aid of the Commission, invoke the aid of any court of the United States in requiring the attendance and testimony of witnesses and the production of books, papers, and documents under the provisions of this section.

And any of the district courts of the United States within the jurisdiction of which such inquiry is carried on may, in case of contumacy or refusal to obey a subpena issued by the Commission to any corporation or association, subject to the provisions of this Act, or other person, issue an order requiring such corporation or association, or other person, to appear before said Commission (and produce books, documents, and papers, if so ordered) and give evidence touching the matter in question, and any failure to obey such order of the court may be punished by such court as a contempt thereof. The claim that any such testimony or evidence may tend to criminate the person giving such evidence shall not excuse such witness from testifying.

The testimony of any witness may, with the consent of the Commission, be taken at the instance of a party in any proceeding or investigation pending before the Commission by deposition at any time after the inquiry is instituted. The Commission may also order testimony to be taken by deposition in any proceeding or investigation pending before it at any stage of such proceeding or investigation. Such deposition may be taken before any person authorized so to do by the Commission and who has power to administer oaths.

Any person may be compelled to appear and depose and to produce documentary evidence in the same manner as witnesses may be compelled to appear and testify and produce documentary evidence before the Commission as hereinbefore provided. Such testimony shall be reduced to writing.

Witnesses whose testimony is taken under the provisions of this act shall severally be entitled to the same fees as are paid for like service in the courts of the United States.

No person shall be excused from attending and testifying, or from producing books, papers, documents, or other things before this Commission, or in obedience to the subpena of the Commission, whether such subpena be signed or issued by one or more of the Commissioners 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 penalty or forfeiture. But no natural person shall be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which he may testify under oath or produce evidence, documentary or otherwise, before said Commission in obedience to a subpena issued by said Commission: Provided, That no person so testifying shall be exempt from prosecution and punishment for perjury committed in so testifying. The purpose of this provision is to give immunity only to natural persons who under oath testify in response to a subpena of the Commission or produce evidence, documentary or otherwise, under oath, in an inquiry instituted by the Commission, in response to such subpena.

And to carry out and give effect to the provisions of this Act the Commission is hereby authorized to designate and employ special agents or examiners, who shall have the power to administer oaths, examine witnesses and documentary evidence, and receive evidence.

SEC. 6. That it shall be the duty of every corporation or association subject to the provisions of this Act to comply with the terms hereof, and to comply with the orders and subpenas of the Commission issued pursuant to the authority herein granted, and it shall be the duty of every corporation, association, or person to furnish to the Commission such information as the Commission may deem necessary and proper to determine whether any corporation or association is subject to the jurisdiction of the Commission.

SEC. 7. That it shall be the duty of every corporation or association subject to the jurisdiction of the Commission, within four months after January 1, 1914. or, if becoming subject thereto after said date, then within two months after s becoming subject thereto, to file with the Commission written statements under oath showing such facts as to its organization, conduct, financial condition, management, security holders, operations, and business transactions as may be prescribed by the Commission, and it shall be the duty of every corporation or association subject to the jurisdiction of the Commission to furnish to the Commis sion from time to time such information as to its organization, conduct, financia! condition, management, security holders, operations, and business transactions, and to such degree and extent and in such form as may be prescribed by the Commission, and to afford to the Commission or its duly authorized agents complete access to all its records, books, accounts, minutes, and papers, and all other documents, including the records of any of its executive or other committees. SEC. 8. That neglect or failure by any corporation or association or by the officers or agents of any such corporation or association, subject to any of the provisions of this Act, to comply with the terms hereof or failure or refusal to furnish information required by the Commission within sixty days after written demand for such information, shall constitute a misdemeanor and shall be punished by fine of not more than $100 for each and every day of the continuanc of such neglect or failure. Any person who shall willfully make or give to said Commission any false or deceptive return or statement required by this Act, knowing the same to be false or calculated to deceive in any material particular, shall be deemed to be guilty of a misdemeanor and upon conviction shall be punished by fine of not more than $5,000 or by imprisonment for not more than two years, or by both fine and imprisonment.

SEC. 9. That if any provision or requirement of this Act shall for any reason be held unconstitutional the validity of the remaining provisions or requirements of this Act shall not be affected thereby.

[H. R. 9300, 63d Cong., 1st sess.]

A BILL To prohibit and prevent unfair competition

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That unfair or oppressive competition in commerce among the several States and with foreign nations as hereinafter defined is hereby declared unlawful.

SEC. 2. That the Interstate Trade Commission is hereby empowered and directed to prevent all corporations or associations subject to the jurisdiction| of said Commission from engaging in or practicing such unfair or oppressive competition.

SEC. 3. That unfair or oppressive competition as used in this Act is hereby defined to include the following business practices and transactions:

(a) The acceptance or procurement of rates or terms of service from common carriers not granted to other shippers under like conditions.

(b) The acceptance or procurement of rates or terms of service from common carriers declared unlawful by the Act entitled "An Act to further regulate commerce with foreign nations and among the States," approved February 19, 1903, as amended.

(c) Discrimination in selling prices as between localities or individuals which is not justified by differences in cost of distribution.

(d) Procuring, by bribery or any illegal means, information as to the secrets of competitors, or procuring conduct on the part of employees of competitors inconsistent with their duties to their employers.

(e) The making of oppressive exclusive contracts for the sale of articles of which the seller has a substantial monopoly, whether by patent or otherwise, or oppressive exclusive contracts depending upon or connected with such articles.

(f) The maintenance of secret subsidiaries or secretly controlled agencies held out as independent of the corporation or association controlling the same and used for any of the foregoing purposes of unfair competition.

(g) The destruction of competition through the use of interlocking directorates.

(h) Any other business practices involving unfair or oppressive competition. SEC. 4. That the Interstate Trade Commission is empowered to make, alter, or repeal regulations further defining more particularly the practices and business transactions of unfair or oppressive competition.

SEC. 5. That whenever the Interstate Trade Commission shall have reason to believe that any corporation or association subject to its jurisdiction has been or is engaged in unfair or oppressive competition it shall issue and serve upon said corporation or association a written order, at least thirty days in advance of the time set therein for hearing, directing said corporation or association to appear before said commission and show cause why an order shall not be issued by said commission restraining and prohibiting said corporation or association from such practice or transaction, and if upon such hearing the Commission shall be of the opinon that the practice or transaction in question is prohibited by this Act it shall thereupon issue such order restraining the same. The Commission may at any time modify or set aside, in whole or in part, any order issued by it under this Act.

SEC. 6. That whenever said Commission, upon the issuing of such restraining order, shall find that said corporation or association has not complied therewith said Commission may petition the District Court of the United States, within any district where the act in question took place or where the said corporation or association is located or carries on business, asking said court to issue an injunction to enforce the terms of such order of the Commission; and such court is hereby authorized to issue such injunction, and also, in case of any violation of such injunction, in the discretion of the court, to issue an order restraining and enjoining said corporation or association from engaging in commerce among the several States and with foreign nations for such time as said court may order.

SEC. 7. That this Act shall not be construed to affect or in any way modify the powers heretofore granted to the Interstate Commerce Commission or the Attorney General under the "Act to regulate commerce," approved February 4, 1887, and the amendments thereof.

SEC. 8. That if any provision or requirement of this Act shall for any reason be held unconstitutional, the validity of the remaining provisions or requirements of this Act shall not be affected thereby.

[H. R. 9301, 63d Cong., 1st sess.]

A BILL To protect commerce against monopolies

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Interstate Trade Commission is hereby empowered and directed at any time, either upon its own initiative or upon the representation or complaint of any person, corporation, or association, to investigate the organization, conduct, and management of any corporation or association subject to the jurisdiction of the said Commission for the purpose of determining whether such corporation or association exercises a substantially monopolistic power in any industry in which said corporation or association is engaged.

SEC. 2. That any such corporation or association shall be regarded as exercising "a substantially monopolistic power" whenever such corporation or association, not being subject to the obligation of public service in the given industry in question, exercises control over a sufficient portion of such industry or over sufficient factors therein to determine the price policy in that industry, either as to raw materials or finished or partly finished products. Such substantially monopolistic power exercised over commerce among the several States or with foreign nations is hereby declared to be contrary to public policy.

SEC. 3. That whenever after such investigation the said Commission shall find that such corporation or association exercises such substantially monopolistic power the Commission is hereby further empowered and directed to determine by such further investigation as may be necessary whether such monopolistic power is based primarily on artificial or on natural bases.

Artificial bases shall, for the purposes of this Act, be defined as

(a) The acceptance or procurement of rates or terms of service from common carriers not granted to other shippers under like conditions.

(b) The acceptance or procurement of rates or terms of service from common carriers declared unlawful by the Act entitled "An Act to further regulate commerce with foreign nations and among the States," approved February 19, 1903. as amended.

(c) Discrimination in selling prices as between localities or individuals which is not justified by differences in cost of distribution.

(d) Procuring by bribery or any illegal means information as to the secrets of competitors, or procuring conduct on the part of employees of competitors inconsistent with their duties to their employers.

(e) The making of oppressive exclusive contracts for the sale of articles of which the seller has a substantial monopoly, whether by patent or otherwise, or oppressive exclusive contracts depending upon or connected with such articles. (f) The maintenance of secret subsidiaries or secretly controlled agencies held out as independent of the corporation or association controlling the same and used for any of the foregoing purposes of unfair competition.

(g) The destruction of competition through the use of interlocking directorates. (h) Other business practices involving unfair or oppressive competition of like character as above set forth.

Natural bases shall, for the purposes of this Act, be defined as

(a) Control of natural resources.

(b) Control of terminal or transportation facilities.

(c) Control of financial resources.

(d) Any other economic condition inherent in the character of the industry, including, among such conditions, patent rights.

SEC. 4. That whenever the Commission shall find that any corporation or association subject to its jurisdiction exercises a substantially monopolistic power, based primarily on artificial bases as herein defined, it shall be the duty of the Commission to proceed forthwith to terminate such monopolistic power by the exercise of its powers heretofore granted to restrain and prohibit unfair or oppressive competition.

SEC. 5. That whenever the Commission shall find that any corporation or association exercises substantially monopolistic power, based primarily on a natural base or natural bases as herein defined, said Commission shall issue and serve upon such corporation or association a written order to said corporation or association specifying such changes in the organization, conduct, or management of its property and business as in the opinion of the Commission will most effectively and promptly terminate such monopolistic power, while at the same time safeguarding property rights and business efficiency. The Commission in said order shall fix a reasonable time within which the changes ordered shall be put into effect by such corporation or association.

SEC. 6. That whenever any corporation or association upon which such an order has been served as is provided for in section 5 of this Act shall refuse or neglect to comply with the same, the Commission shall apply to the district court of the United States in any district where such corporation or association is located or carries on business, asking for an order by said court for the appointment of a supervisor or supervisors of such corporation or association, and it shall be the duty of such court, upon such request by the Commission, to appoint for a limited time such supervisor or supervisors for such corporation or association and to give such supervisors such powers as are usually granted to receivers and full power of such direction and control over the organization, conduct, and management of such corporation or association and the business and property thereof as shall be best fitted to carry into effect the order of the Commission. The supervisor or supervisors shall from time to time. upon the request of the Commission, make full report to the Commission as to the organization and business of such corporation or association, and said supervisor or supervisors shall have power to carry out any further orders which the Commission shall from time to time make relating to such corporation or association. SEC. 7. That any court in terminating a supervisorship imposed as provided in section 6 of this Act may, in order to insure the permanency of competitive conditions, include in its decree a provision submitting the supervised corporation or association and its business, or any part thereof, to the supervision or direction of the Commission for such time and in such manner as said court shall fix, and the Commission shall be empowered to exercise such supervisory or directory power as shall be conferred in said decree.

SEC. 8. That whenever the Commission shall conduct an investigation for the purpose of determining whether a corporation or association exercises substantially monopolistic power as defined in this Act or of determining the basis of such power, reasonable opportunity shall be granted in the course of the investigation to such corporation or association to be heard or to present evidence in its own behalf; and before the entry of any order requiring changes in the organization, conduct, or management of the property and business of any corporation or association the Commission shall issue and serve upon such corporation or association a written order at least thirty days in advance of the time set for hearing, directing said corporation or association to appear before the Commission and show cause why an order should not be issued requiring such changes. The Commission may at any time modify or set aside, in whole or in part, any order issued by it under this Act.

SEC. 9. That the term "corporation" or "association" as used in this Act shall include all incorporated associations of two or more persons and all unincorporated associations organized to carry on business as co-owners with a view to profit, and shall also include any group of corporations or associations constituting substantially a business unit as heretofore defined by law.

SEC. 10. That service of process, orders, or notices under the provisions of this Act may be had by service on any officer or agent of any incorporated organization or on any member or agent of any unincorporated organization.

SEC. 11. That nothing contained in this Act shall be construed to prevent or interfere with the enforcement of the act entitled "An act to protect trade and commerce against unlawful restraints and monopolies," approved July 2, 1890, or to modify or repeal said Act.

SEC. 12. That if any provision or requirement of this Act shall for any reason be held unconstitutional, the validity of the remaining provisions or requirements of this Act shall not be affected thereby.

Mr. RICHBERG. May I say, Mr. Chairman, they were introduced when the Federal Trade Commission bill was passed; they were introduced in the House as an amendment, as a blanket amendment, by Representative Lafferty, who was one of the group that I was working with.

Mr. WILSON. Did they exempt labor unions?

Mr. RICHBERG. I beg pardon?

Mr. WILSON. Did those bills exempt labor unions?

Mr. RICHBERG. They had only to do with business combinations, owners of business. As a matter of fact, the problems of labor unions, I would say, had little relation to this back in 1913.

The principles which I have previously stated were all written into these bills and some of them were incorporated in the law which was subsequently enacted creating the present Federal Trade Commission. Some 20 years later, as I think you know, I was called upon to serve, first as general counsel and then as head of the National Industrial Recovery Administration, which carried on an extensive and none too successful experiment in fostering fair competition in interstate com

merce.

I want to add that I have published two books-I say that because I have been very reticent in furnishing you with material-a review of the NRA entitled "The Rainbow"-in 1936-and another, "Government and Business Tomorrow," which discuss your current problem at some length, and also many articles to which I might refer-I merely cite them-such as in the University of Pennsylvania Law Review, "A Suggestion for the Revision of the Antitrust Laws," and another entitled "The Monopoly Issue."

I can also offer for your consideration an article in the George Washington Law Review on Significant Developments in Labor Law, which deals in part with the growth of labor monopolies-I have copies of those here-and an address to the Academy of Political