from distribution (by seizure, impounding or otherwise) fabrics discovered to be dangerously flammable; and Review and study of Commission procedures designed to ensure maximum compliance with the requirements of the "Jencks" rule and the Freedom of Information Act. The Office completed over 200 assignments from the Commission requesting legal memoranda on evidentiary, jurisdictional and procedural questions, or requiring the drafting or revision of Commission reports and other public statements. It also analyzed and made recommendations to the Commission on 144 requests from the public under the Freedom of Information Act for access to the agency's information and documents. Federal-State Cooperation During the year, the General Counsel's Office administered the Commission's program of Federal-State cooperation. The purpose of this program is to serve and facilitate cooperative effort with State and local government officials and, thus, increase protection of the consuming public from unfair and deceptive commercial practices. It seeks to accomplish this objective in four ways: (1) By forming coordinating groups of Federal and State government officials; (2) by supplying information to State and local agencies engaged in consumer protection efforts; (3) by referring complaints to them; and (4) by offering Commission assistance when requested, with proposals for new legislation against unfair practices. In 1970, the Commission made considerable progress toward establishing a system of effective cooperation between the Commission and the agencies of State governments. Consumer Protection Coordinating Committees composed of key Federal, State, and local law enforcement officials were formed in Chicago, Los Angeles and San Francisco. By bringing together consumer experts from the three government levels, these committees will be able to combine experience, power and jurisdictional authority, thus assuring swift identification and resolution of consumer problems. Some of the goals of these committees are to: Pool information to establish priorities for efforts in both education and enforcement; give consumers a one-stop complaint service; identify and analyze patterns of violations; and develop a "quick response" liaison system among consumer agencies. At the close of the fiscal year, work was continuing toward the establishment of consumer protection committees in other major metropolitan areas such as New York City, Detroit, Philadelphia and Boston. Legislation The General Counsel furnished advice and comment to the Commission on 92 bills which were pending in Congress. In addition to drafting the Commission's legislative recommendations, the Office also prepared proposed amendments of pending consumer protection legislation at the request of congressional committees. Frequent conferences with Members of Congress and with representatives of executive agencies were held to assist the preparation of legislation and presentation of views of Commission members in legislative hearings. Chapter X APPROPRIATIONS AND FINANCIAL OBLIGATIONS FUNDS AVAILABLE TO THE COMMISSION DURING For fiscal year 1970, funds totaling $20,889,213 were available to the Commission. Public Law 91-126 authorized $19,500,000; and Public Law 91-305, title II, provided $1,000,000. Also, title III of Public Law 91-305 authorized $389,213 for increased pay costs related to the Federal Employees Salary Act of 1970. The Commission's adjusted obligational authority for 1970 $20,785,993, which reflects a transfer of $103,220 to the General Services Administration for space rental. Obligations by activities, fiscal year 1970 1. Maintaining competition: Investigation and litigation Economic and financial reports was $ 6,648,184 1,189,955 APPENDIX (A) FTC Cases in the Courts The following is a summary of significant Federal Trade Commission cases before the courts during fiscal 1970, together with a brief discussion of what is involved in each case or groups of cases. RESTRAINT OF TRADE CASES The most significant restraint of trade decisions in fiscal 1970 were in the merger field (section 7 of the Clayton Act). In three cases, the Sixth Circuit (Cincinnati) upheld the Commission's determination that challenged acquisitions were unlawful: Abex Corp. (D. 8622) involved the acquisition by Abex (formerly American Brake Shoe Co.), a large diversified manufacturer of railroad products, hydraulic products, castings and friction materials, of the S. K. Wellman Co., the Nation's largest manufacturer of sintered metal friction materials. The court affirmed the Commission's findings that sintered metal friction materials constituted a valid product submarket and that the acquisition may have adverse competitive effects. The court also upheld the Commission's order of divestiture and the inclusion in the order of a proviso prohibiting Abex from acquiring any other company engaged in the manufacture or sale of sintered metal friction materials for 10 years without the prior approval of the Commission. Abex has filed a petition for certiorari. The Seeburg Corp. (D. 8682) involved the acquisition by Seeburg, a manufacturer of a broad line of vending machines, of Cavalier Corp., a vending machine manufacturer engaged largely in the production of machines used to dispense soft drinks in bottles and cans. The court sustained the Commission's finding of probable adverse competitive effect, agreeing that the appropriate product markets within which to consider such effects were (1) the overall market for vending machines of all types and (2) the submarket for bottle vending machines. The court also upheld the Commission's order of divestiture and its 10-year ban on future acquisitions of vending machine manufacturing concerns. (Subsequent to this decision, the Commission filed with the court an emergency petition requesting the entry of a protective order preventing Seeburg from dissipating the assets of Cav |