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1 No court cases were reported under the Export Trade Act from 1930 through 1938. 2 Cases followed by 2 (a) and 2 (c) arose under the Robinson-Patman Amendment of 1936.

ACTS OF CONGRESS FROM WHICH THE COMMISSION

DERIVES ITS POWERS

WITH MARGINAL REFERENCES TO AMENDMENTS

FEDERAL TRADE COMMISSION ACT 1

[Approved Sept. 26, 1914; as amended Mar. 21, 1938]

[PUBLIC-NO. 203-63D CONGRESS, AS AMENDED BY PUBLIC, No. 44775TH CONGRESS]

[H. R. 15613 and S. 1077]

An Act To create a Federal Trade Commission, to define its powers and duties, and for other purposes

Sec. 1. CREATION AND ESTABLISHMENT OF THE COMMISSION. (38 Stat. 717; 15 U. S. C. A., sec. 41; 52 Stat. 111.)

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That a commission is hereby created and established, to be known as the Federal Trade Commission (hereinafter referred to as the commission), which shall

1 Court decisions arising under this act and handed down prior to Jan. 1, 1930, are published in "Statutes and Decisions-Federal Trade Commission-1914-29," and subsequent decisions are included in the current volume.

Note should also be made of the case of Crowell v. Benson, Feb. 23, 1932, 285 U. S. 22, in which the Supreme Court gave entensive consideration to questions involved in Judicial review of fact-finding bodies.

PACKERS AND STOCKYARDS ACT

It should be noted that the jurisdiction of the Commission is limited by the Packers and Stockyards Act, 1921, approved Aug. 15, 1921, ch. 64, 42 Stat. 159 (amended by an act approved August 14, 1935, Public, No. 272 (49 Stat. 648), to include live poultry dealers and handlers as therein specified), sec. 406 (7 U. S. C. A. 227) of said Act providing that "on and after the enactment of this Act and so long as it remains in effect the Federal Trade Commission shall have no power or jurisdiction so far as relating to any matter which by this Act is made subject to the jurisdiction of the Secretary [of Agriculture] except in cases in which, before the enactment of this Act, complaint has been served under sec. 5 of the Act entitled 'An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes', approved Sept. 26, 1914, or under sec. 11 of the Act entitled 'An Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes,' approved Oct. 15, 1914, and except when the Secretary of Agriculture, in the exercise of his duties hereunder, shall request of the said Federal Trade Commission that it make investigations and report in any case."

COMMUNICATIONS, MOTOR CARRIER AND OTHER LEGISLATION

Other legislation which should be noted includes

The "Communications Act of 1934," June 19, 1934, Public, No. 416, 48 Stat. 1064 (see further, footnote on p. 33);

The "Motor Carrier Act, 1935," providing for the regulation of the transportation of passengers and property by motor carriers operating in interstate and foreign commerce, 1

be composed of five commissioners, who shall be appointed by the President, by and with the advice and consent of the Senate. Not more than three of the commissioners shall be members of the same political party. The first commissioners appointed shall continue in

and for other purposes, through the amendment of the Interstate Commerce Act, as therein provided, approved Aug. 9, 1935, Public, No. 255 (49 Stat. 543);

Hog-Cholera Serum and Virus Legislation.-Sections 56 to 60 of the Agricultural Adjustment Act, as amended Aug. 24, 1935, Public, No. 320, authorizing and providing for marketing agreements as therein specified with manufacturers of and dealers in anti-hog-cholera serum and hog-cholera virus for the purpose of insuring the maintenance of an adequate supply thereof (49 Stat. 750, 781, 782); and

The "Federal Alcohol Administration Act," approved August 29, 1935, Public, No. 401 (49 Stat. 977), directed to regulating interstate and foreign commerce, as therein specified, in, and other matters having to do with, distilled spirits, wine, and malt beverages, and including the licensing under section 3 of persons to engage therein, to take effect, as respects those engaging therein for resale at wholesale and transactions in interstate or foreign commerce, July 1, 1936 (as extended by Joint Resolution No. 73, approved February 29, 1936), and as respects the labeling provisions thereof as a part of section 5 of said act dealing with unfair competition and unlawful practices in said industry, to take effect on August 15, 1936, in the case of distilled spirits, and December 15, 1936, in the case of wine and malt beverages. (As extended and modified in various respects by Secs. 501-508 of the "Liquor Tax Administration Act," approved June 26, 1936, Public, No. 815.)

Tobacco interstate compacts.-By act approved April 25, 1936. Public, No. 534, Congress gave its consent, subject to certain qualifications, among others, re regimentation, price-fixing, and monopoly, to such compacts between the states to govern production of, and commerce in, tobacco, the legislation also including, among other things, certain provisions with respect to Porto Rican tobacco.

The Tobacco Control Act. Public, No. 483, approved June 28, 1934 (48 Stat. 1275). the Cotton Act of 1934 (excepting Section 24 thereof, authorizing the Secretary of Agriculture to develop new and extended uses for cotton, etc.), approved April 21, 1934, Public, No. 169 (48 Stat. 598), and the Potato Act of 1935, Section 201 to 233, inclusive, of Public, No. 320, to amend the Agricultural Adjustment Act, approved August 24, 1935, said sections being known as the "Potato Act of 1935" (49 Stat. 750, 782), were repealed by an act approved February 10, 1936 (Public, No. 433), following the decision of the Supreme Court on January 6, 1936, in U. 8. v. Butler, et al., 297 U. S. 1, holding invalid certain provisions of the Agricultural Adjustment Act. 1933, approved May 12, 1933, Chapter 25 (48 Stat. 31), namely, the so-called "processing and floor stock taxes" imposed by the Act, as constituting parts of a plan and means to an unconstitutional end, i. e., regulation and control of agricultural production, which constituted a matter within the reserved powers of the States and one beyond the powers delegated to the Federal Government.

The Bituminous Coal Conservation Act of 1935, approved August 30, 1935, Public, No. 402 (49 Stat. 991), was held unconstitutional by the Supreme Court in the case of Carter v. Carter Coal Co. et al., May 18, 1936, 298 U. S. 238, 56 S. Ct. 855, 80 L. Ed. 749. The National Industrial Recovery Act.-All the provisions of Title I of said act delegating power to the President to approve or prescribe codes of fair competition and providing for the enforcement thereof, were repealed by joint resolution approved June 14, 1935 (Public Res. No. 26), 49 Stat. 375, the provisions of section 5 of said title relating to agreements thereunder and exemptions from the provisions of the antitrust laws, limited as therein specified to minimum wages, maximum hours, prohibition of child labor, and prohibition of unfair competitive practices "which offend against existing law, including the antitrust laws, or which constitute unfair methods of competition under the Federal Trade Commission Act," and the date for the termination of said Title 1 extended and fixed as of April 1. 1936. Said joint resolution followed the decision of the Supreme Court in the Schechter case on May 27, 1935 (295 U. S. 495), holding the code provisions of said act unconstitutional.

For other legislation establishing certain exceptions, as respects the operation of the antitrust laws, see footnote on p. 21, dealing with certain provisions relating to shipping and other carriers, and to agricultural and fishery associations.

CONGRESSIONAL HISTORY

In connection with the history in Congress of the Federal Trade Commission Act, see address of President Wilson delivered at a joint session on Jan. 20, 1914 (Congressional

office for terms of three, four, five, six, and seven years, respectively, from the date of the taking effect of this Act, the term of each to be designated by the President, but their successors shall be appointed for terms of seven years, except that any person chosen to fill a vacancy shall be appointed only for the unexpired term of the commissioner whom he shall succeed: Provided, however, That upon the expiration of his term of office a commissioner shall continue to serve until his successor shall have been appointed and shall have quali

Record, vol. 51, pt. 2, pp. 1962-1964, 63d Cong., 2d sess); report of Senator Cummins, from the Committee on Interstate Commerce, on control of corporations, persons, and firms engaged in interstate commerce (Feb. 26, 1913, 62d Cong., 3d sess., Rept. No. 1326); Hearings on Interstate Trade Commission before Committee on Interstate and Foreign Commerce of the House, Jan. 30 to Feb. 16, 1914, 63d Cong., 2d sess; Interstate Trade, Hearings on Bills relating to Trust Legislation before Senate Committee on Interstate Commerce, 2 vols., 63d Cong., 2d sess.; report of Mr. Covington, from the House Committee on Interstate and Foreign Commerce, on Interstate Trade Commission (Apr. 14, 1914, 63d Cong., 2d sess., Rept. No. 533); also parts 2 and 3 of said report, presenting the minority views, respectively, of Messrs. Stevens and Lafferty; report of Senator Newlands, from the Committee on Interstate Commerce, on Federal Trade Commission (June 13, 1914, 63d Cong., 2d sess., Rept. No. 597) and debates and speeches in the Congressional Record, 63d Cong., 2d sess., vol. 51).

See also Letters from the Interstate Commerce Commission to the chairman of the Committee on Interstate Commerce, submitting certain suggestions to the bill creating an Interstate Trade Commission, the first being a letter from Hon. C. A. Prouty, dated Apr. 9, 1914 (printed for the use of the Committee on Interstate Commerce, 63d Cong., 2d sess.); letter from the Commissioner of Corporations to the chairman of the Committee on Interstate Commerce, transmitting certain suggestions relative to the bill (H. R. 15613) to create a Federal Trade Commission, first letter dated July 8, 1914 (printed for the use of the Committee on Interstate Commerce, 63d Cong., 2d sess.); brief by the Bureau of Corporations, relative to sec. 5 of the bill (H. R. 15613) to create a Federal Trade Commission, dated Aug. 20, 1914 (printed for the use of the Committee on Interstate Commerce, 63d Cong., 2d sess.); brief by George Rublee relative to the court review in the bill (H. R. 15613) to create a Federal Trade Commission, dated Aug. 25, 1914 (printed for the use of the Committee on Interstate Commerce, 63d Cong., 2d sess.); and dissenting opinion of Justice Brandeis in Federal Trade Commission v. Gratz, 253 U. S. 421, 429-442.

For the legislative history of Public, No. 447, amending the Federal Trade Commission Act (the Wheeler-Lea bill, S. 1077, 75th Cong., 3d sess.) see:

S. 3744-74TH CONGRESS-SECOND SESSION, THE PREDECESSOR OF S. 1077

S. 3744, as introduced in Senate January 17, 1936, by Mr. Wheeler; copy of hearings held on S. 3744, February 17 to March 10, 1936, by Senate Interstate Commerce Committee; S. 3744 as reported out of committee March 18, 1936, with an amendment; Senate Report 1705 to accompany S. 3744 as reported out; debates held on floor of Senate when S. 3744 was passed, May 4, 1936, pp. 6811 to 6821 and 6823 to 6826, Congressional Record; S. 3744 as passed by Senate, May 4, 1936, and referred to House Interstate and Foreign Commerce Committee; copy of hearings held on S. 3744, May 27, 28, and 29, 1936, by House Interstate and Foreign Commerce Committee.

S. 1077 AND COMPANION BILL H. R. 3143 IN 75TH CONGRESS

H. R. 3143, as introduced in House by Mr. Lea, January 18, 1937, 75th Cong. 1st sess.; copy of hearings held on H. R. 3143, February 18 and 19, 1937, by House Interstate and Foreign Commerce Committee, resulting in H. R. 5854, introduced in House by Mr. Lea, March 23, 1937, to supersede H. R. 3143.

S. 1077

S. 1077, as introduced in the Senate by Mr. Wheeler, January 22, 1937, 75th Cong., 1st sess.; S. 1077 as reported out of committee, March 19, 1937, without amendment; S. Rept. No. 221 to accompany S. 1077 as reported out; debate held on floor of Senate when S. 1077 was passed with an amendment, Monday, March 29, 1937, pp. 3599 to 3601, Congressional Record; S. 1077 as passed by the Senate and referred to House Committee on Interstate and Foreign Commerce; S. 1077 as reported out of House Com

fied: The commission shall choose a chairman from its own member hip. No commissioner shall engage in any other business, vocation, or employment. Any commissioner may be removed by the President for inefficiency, neglect of duty, or malfeasance in office. A vacancy in the commission shall not impair the right of the remaining commissioners to exercise all the powers of the Commission. The commission shall have an official seal, which shall be judicially noticed.

Sec. 2. SALARIES. SECRETARY. OTHER EMPLOYEES. EXPENSES OF THE COMMISSION. OFFICES. (38 Stat. 718; 15 U. S. C. A., sec. 42.)

SEC. 2. That each commissioner shall receive a salary of $10,000 a year, payable in the same manner as the salaries of the judges of the courts of the United States. The commission shall appoint a secretary, who shall receive a salary of $5,000 a year, payable in like manner,3 and it shall have authority to employ and fix the compensation of such attorneys, special experts, examiners, clerks, and other employees as it may from time to time find necessary for the proper performance of its duties and as may be from time to time appropriated for by Congress. With the exception of the secretary, a clerk to each commissioner, the attorneys, and such special experts and examiners as the Commission may from time to time find necessary for the conduct of its work, all employees of the commission shall be a part of the classified civil service, and shall enter the service under such rules and regulations as may be prescribed by the commission and by the Civil Service Commission.

All of the expenses of the commission, including all necessary expenses for transportation incurred by the commissioners or by their employees under their orders, in making any investigation, or upon official business in any other places than in the city of Washington, shall be allowed and paid on the presentation of itemized vouchers there for approved by the commission.

Until otherwise provided by law, the commission may rent suitable offices for its use.

The Auditor for the State and Other Departments shall receive and examine all accounts of expenditures of the commission.

mittee, August 19, 1937, with an amendment; H. Rept. No. 1613 to accompany S. 1077 as reported out; debate on floor of House when S. 1077 was passed, January 12, 1938, pp. 546 to 574, Congressional Record; S. 1077 as passed House with amendments shown; Conference Report, H Rept. No. 1774, as printed February 8, 1938, and agreed to in House without debate February 14, 1938; debate in Senate on conference report, March 11, 1938, pp. 4338 to 4341 and 4343 to 4346, Congressional Record; and pp. 4429 to 4436, Congressional Record, when conference report was agreed to in Senate, March 14, 1938. Note that no hearings were held on S. 1077 in the Senate, and in the House the hearings were held on the companion bill, H. R. 3143, February 18 and 19, 1937.

2 This proviso was added to the act in 1938.

The salary of the secretary is controlled by the provisions of the Classification Act of 1923, approved March 4, 1923, 42 Stat. 1488.

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