Cost of living.-The Commission undertook this inquiry in November 1937 pursuant to a request of the President of the United States that an immediate investigation be conducted concerning alleged monopolistic practices and other unwholesome methods of competition and their relation to a marked increase in the cost of living in 1937. Upon completion of the inquiry, a confidential report was made to the President as of April 29, 1938. (See p. 31.) Newsprint paper.-This inquiry, pending at the close of the fiscal year, is in response to a request made January 24, 1938, by the Attorney General of the United States. The Commission was asked to investigate the manner in which certain newsprint manufacturers have complied with a consent decree entered against them on November 26, 1917, by the United States District Court for the Southern District of New York, and further to determine whether there were any violations of the antitrust laws by the newsprint industry that were not prohibited by the decree. (See p. 31.) A list and brief descriptions of the more than 100 inquiries conducted by the Commission since 1915 begins at p. 173. THE COMMISSIONERS AND THEIR DUTIES The Federal Trade Commission is composed of five Commissioners appointed by the President and confirmed by the Senate. Not more than three of the Commissioners 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 a Commissioner dates from the 26th of September last preceding his appointment (September 26 marking the anniversary of the approval of the act in 1914), except when he succeeds a Commissioner who relinquishes office prior to expiration of his term, in which case, under the act, the new member "shall be appointed only for the unexpired term of the Commissioner whom he shall succeed." Upon the expiration of his term of office, a Commissioner continues to serve until his successor has been appointed and has qualified. As of June 30, 1938, the Commission was composed of the following members: Garland S. Ferguson, Democrat, of North Carolina, chairman; Robert E. Freer, Republican, of Ohio, vice-chairman; Charles H. March, Republican, of Minnesota; Ewin L. Davis, Democrat, of Tennessee, and William A. Ayres, Democrat, of Kansas. Each January the Commission designates one of its members to serve as chairman during the ensuing calendar year. Commissioner Ferguson was chosen chairman for the calendar year 1938, succeeding Commissioner Ayres. The chairmanship rotates, so that each Commissioner serves as chairman at least once during his term of office. The chairman presides at meetings of the Commission, supervises its activities, and signs the more important official papers and reports at the direction of the Commission. In addition to the general duties of the Commissioners, in administering the statutes, the enforcement of which is committed to the Commission, each Commissioner has supervisory charge of a division of the Commission's work. Chairman Ferguson has supervisory charge of the chief trial examiner's division and the trade practice conference division; Commissioner Freer of the economic division and special board of investigation; Commissioner March of the chief examiner's division; Commissioner Davis of the chief counsel's division, and Commissioner Ayres of the administrative division. The Commission has a Secretary, who is its executive officer. Every case that is to come before the Commission is first examined by a Commissioner and then reported on to the Commission, but all matters under its jurisdiction are acted upon by the Commission as a whole. The Commissioners meet for the consideration and disposal of such matters every business day, 52 weeks in the year. They have administrative charge of the work of a staff which, as of June 30, 1938, numbered 585 officials and employees including attorneys, economists, accountants, and administrative personnel engaged in Washington and in 5 branch offices. The Commissioners hear final arguments in the cases before the Commission, and usually preside individually at trade practice conferences held for industries in various parts of the country, and also have numerous administrative duties incident to their position. HOW THE COMMISSION'S WORK IS HANDLED The work of the Federal Trade Commission may be divided broadly into the following general groups: Legal, economic, and administrative. The legal work of the Commission is under the direction of the Chief Counsel, the Chief Examiner, the Chief Trial Examiner, the Special Board of Investigation, and the Trade Practice Board. The Chief Counsel acts as legal adviser to the Commission, supervises legal proceedings against respondents charged with violations of the acts administered by the Commission, has charge of the trial of cases before the Commission and in the courts, and supervises the export trade work of the Commission as conducted pursuant to the Export Trade Act. The Chief Examiner's Division and the Special Board of Investigation have charge of investigations preliminary to issuance of complaint alleging violations of the laws over which the Commission has jurisdiction. When the Commission undertakes investigations in response to Congressional resolutions, or under Section 6 of the Federal Trade Commission Act, the Chief Examiner supervises such investigations primarily of a legal nature as may be assigned to his division by the Commission. Members of the Chief Trial Examiner's Division are appointed to preside at the trial of formal complaints and at the taking of testimony in investigations conducted by Executive direction, pursuant to Congressional resolutions, upon the Commission's own initiative, or at the request of the Attorney General. They also arrange settle ments by stipulation of applications for complaint, subject to the approval of the Commission. The Division of Trade Practice Conferences conducts activities relative to the formulation and approval of trade practice rules, the holding of industry conferences in respect thereto, the administration and enforcement of such rules which have received Commission approval and are in effect, and other staff duties incident to the trade practice conference procedure. The Economic Division, under the Chief Economist, conducts such general inquiries of the Commission as are primarily of an economic nature, such as those covering agricultural implements and machinery, agricultural income and motor vehicles. The Economic Division and the Chief Examiner's Division jointly, conducted the agricultural income inquiry. Examiners of the Economic Division make cost accounting examinations in connection with cases instituted under the Robinson-Patman Antidiscrimination Act. The Chief Examiner's Division has charge of the newsprint investigation and examiners from both the Chief Examiner's and Economic Divisions were engaged in the inquiry into general living costs. The Commission has added to its staff an economic advisor to the Commission with special reference to administration of the RobinsonPatman Act and in connection with certain general investigations. 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 such as are usually found in Government establishments, the functions of such units being covered largely by general statutes. These units are: Accounts and Personnel, Disbursing Office, Docket Section, Publications, Library, Mails and Files, Legal Editing, Supplies, and Stenographic. The Commission has a Public Relations and Editorial Service. Its duties include the distribution of information, the preparation and editing of reports, and the answering of inquiries relative to the Commission's work. This division is under the supervision of the Assistant to the Chairman. The Commission has access to the laboratories, libraries, and other facilities of Federal Government agencies, to any of which it may refer matters for scientific opinions or information. The Commission also obtains, when necessary, certain medical and other scientific information and opinions from nongovernment hospitals, clinics, and laboratories. As previously noted, the United States Public Health Service has detailed a commissioned medical officer, who will act as advisor and consultant to the Commission in certain matters arising under the advertising provisions of the Federal Trade Commission Act as amended. 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. Important among such documents are those presenting fact-finding studies, reports, and recommendations relating to general business and industrial inquiries. Illustrated by appropriate charts, tables, and statistics, these books and pamphlets deal with current developments, possible abuses, and trends in an industry, and contain scientific and historical background. Considered as a whole, they have supplied economists and students of business and government, the Congress, and the public with information not only of general interest but of great value as respects the need or wisdom of new and important legislation, to which they have frequently led, as well as corrective action by the Department of Justice and private interests affected. The Supreme Court has at times had recourse to them, and many of them have been designated for reading in connection with university and college courses in economics and law. Findings and orders of the Commission, as published, contain interesting and important material regarding business and industry. They tell, case by case, the story of unfair competition, unfair or deceptive acts or practices, exclusive-dealing contracts, price discriminations, and capital-stock acquisitions in violation of the statutes which the Commission administers, and of the measures taken by the Commission to prevent such violations of law. These documents, known as Federal Trade Commission Decisions, are printed first in the form of advance sheets with permanent volume number and pagination, and later as bound volumes. The Commission publishes a monthly summary of its work showing the number of cases in the various stages of its legal procedure and the status of each current legal case, general investigation, and trade practice conference. Regarding the Commission's publications, 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. Publications of the Commission for the fiscal year ended June 30, 1938, were: Agricultural Income Inquiry, Part I, Principal Farm Products, March 2, 1937; Part II, Fruits, Vegetables, and Grapes, June 10, 1937; and Part III, Supplementary Report, November 8, 1937.2 Agricultural Implement and Machinery Industry. House Document No. 702, Seventy-fifth Congress, third session, June 6, 1938.2 Annual Report of the Federal Trade Commission for the Fiscal Year Ended June 30, 1937. House Document No. 379, Seventy-fifth Congress, second session, November 1, 1937. A Brief Summary of 64 Robinson-Patman Cases, October 1937. Decisions, Volume 21, June 25, 1935, to January 13, 1936.2 Robinson-Patman Act, data compiled from public sources of information, excerpts from findings and orders of the Commission and decisions of the Courts, June 1, 1938. Cases in Restraint of Trade, March 1938. Procedure before the Federal Trade Commission in the Handling of Certain Types of False and Misleading Advertising Cases, May 21, 1938. Supplemental Report on Antidumping Legislation and Other Import Regulations in the United States and Foreign Countries, June 27, 1938.3 Report supplements Senate Document No. 112, Seventythird Congress, second session. Utility Corporations, No. 84-D, General Index to Parts 21 to 84-C, inclusive. Senate Document No. 92, Seventieth Congress, first session, August 12, 1937. COMMISSION OCCUPIES NEW QUARTERS In April 1938 the Commission moved into its newly completed headquarters, Constitution Avenue at Sixth Street, Washington, D. C. President Roosevelt laid the cornerstone of the new building and delivered the dedicatory address on July 12, 1937. Situated at the apex of the "Triangle" group of Government buildings, the Federal Trade Commission Building is the newest of that group and one of the finest in Washington. It is equipped with modern conference rooms, offices, and other facilities and is air-conditioned. Available only from the Superintendent of Documents, Government Printing Office, Washington, D. C. 8 Full report not ordered printed. Summary available from the Federal Trade Commission. |