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1930 Annual Report

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ANNUAL REPORT OF THE FEDERAL TRADE COMMISSION FOR THE FISCAL YEAR ENDED JUNE 30 1930 UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1930 For sale by the Superintendent of Documents, Washington, D. C. - - - - - - - - Price 25 cents FEDERAL TRADE COMMISSION GARLAND S. FERGUSON, Jr., Chairman. CHARLES W. HUNT. WILLIAM E HUMPHREY. CHARLES H. MARCH EDGAR A. MCCULLOCH. OTIS B. JOHNSON, Secretary. FEDERAL TRADE COMMISSIONER--1915-1930 Name State from which appointed Period of service Joseph E Davies Wisconsin Mar. 16, 1915-Mar. 18, 1918. William J. Harris Georgia Mar. 16, 1915-May 31, 1918. Edward N. Hurley Illinois Mar.16, 1915-Jan. 31, 1917. Will H. Parry Washington Mar.16, 1915-Apr. 21, 1917. George Rublee New Hampshire Mar.16, 1915-May 14, 1916. William B. Colver Minnesota Mar.16, 1917-Sept. 25, 1920. John Franklin Fort New Jersey Mar.16, 1917-Nov. 30, 1919. Victor Murdock Kansas Sept. 4, 1917-Jan. 31, 1924. Huston Thompson Colorado Jan.17, 1919-Sept. 25, 1926. Nelson B. Gaskill New Jersey Feb. 1, 1920-Feb. 24, 1925. John Garland Pollard Virginia Mar. 6, 1925-Sept. 25,1921. John F. Nugent Idaho Jan.15, 1921-Sept. 25, 1927 Vernon W. Van Fleet Indiana June 26, 1922-July 31, 1926. C. W. Hunt Iowa June 16, 1924. William E Humphrey Washington Feb.25, 1925. Abram F. Myers Iowa Aug. 2, 1926-Jan. 15, 1929. Edgar A. MCCULLOCH Arkansas Feb.11, 1927. G. S. Ferguson, Jr North Carolina Nov.14, 1927. Charles H. March Minnesota Feb. 1, 1929. II CONTENTS PART 1. INTRODUCTION Page The fire of August 30, 1930 4 The year’s activities 6 Public utilities investigation 11 Background and procedure 15 PART II. DIVISIONAL REPORTS Divisional organization 22 Chart Facing p. 22 Administrative division 24 Publications of the commission 28 Economic division 32 Trade practice conferences 38 Chief examiner 47 Board of review 53 Special board of investigation 55 Trial examiners’ division 58 Chief counsel 60 Representative complaints 64 Orders to cease and desist 74 Court cases 84 Methods of competition condemned 112 Tabular summary of legal work 117 Export trade section 125 PART III. DOCUMENTS AND SUMMARIES Sherman Antitrust Act 145 Federal Trade Commission act 147 Sections of Clayton Act 153 Export trade act 157 Procedure and policy 159 Rules of practice 161 Trade practice conferences 166 Proceedings disposed of 167 Complaints pending 182 Stipulations 220 Resolutions directing inquiries 233 Investigations, 1913-1930 239 ALPHABETICAL INDEX Advertising, false and misleading 55 Agreements In restraint of trade, cases of 81 Agreements to suppress competition, cases of 69, 71, 75 Albany Billiard Ball Co., order to cease and desist 81 American Gas & Electric Co., public utilities inquiry 12 American Power & Light Co., public utilities 12 American School of Home Economics, order to cease and desist 79 American Snuff Co., court case 94 Baltimore Paint & Color Works, court case 86 Bayuk Cigars (Inc.), court case 92 III IV CONTENTS Page Blue sky case 78 provisions in foreign laws 140 securities, general inquiry 37, 238 Bread and flour industry, general inquiry 238 Breakstone, Samuel, court case 97 Burton Bros. & Co. (Inc.), court case 97 order to cease and desist 76 Cassoff, L. F., court case 85 Chain-store investigation 34, 234 Chipman Knitting Mills, court case 99 Clayton Act, text of 153 functions of 17 Clarkson, David B., Co., order to cease and desist 71 Coercion of customers, cases of 71 manufacturers, cases of 69, 75 Competition, agreements to suppress, cases of 69, 71, 75 methods of condemned 112 Complaint, answer, and trial of cases 18-19, 61-62 Complaints, applications for, tabular summary 118 digests of 182 representative 64 Congressional and other inquiries 1913-1930 239 Consolidated Book Publishers (Inc.), court case 88 order to cease and desist 83 Cottonseed price inquiry 7, 49, 236 Court cases 9, 84, 120-124 Dismissals, orders of, digest of 175 Electric Bond & Share Co., court case 14, 105 public utilities inquiry 12 Electric Power & Light Corporation, public utilities inquiry 12 Export Trade Act, text of 157 investigations, tabular summary of 117 section, work of 125 Federal Trade Commission: Administrative functions of 24 Appropriations for work of 25 Background of 15 Board of review of 53 Branch offices of 52 Chief counsel of 60 Chief examiner of 47 Commissioners, work of 22 Economic division of 32 Export trade section of 125 Headquarters, new location of, since fire 15 Legal work of, tabular summary 117 Organization of 22 Personnel of 24 Policy of 159 Procedure of 17, 159 Publications of 28 Rules of practice before 161 Special board of investigation of 55 Trade practice conference division of 38 Trial examiners of 58 Federal Trade Commission Act, text of 147 functions of 16 amendment to suggested 14 Fire wrecks commission’s building 4 Fluegelman, N., & Co., court case 104 Foshay, W. B., Co., public utilities 13 Good Grape Co., court case 100 Grand Rapids furniture cases 98 Grand Rapids Varnish Co., court case 95 International Shoe Co., court case 93 Interstate movement of electric energy 34, 234 CONTENTS V Page Investigations, 1913-1930 239 Kay, Abbott E. (Dr.), court case 97 Kirk, James S., & Co., court case 100 Kohlberg, Alfred (Inc.), court case 102 Light House Rug Co., court case 96 Lomax Rug Mills, court case 89 Lottery cases 73 McCafferty, James A., & Sons, Manufacturing Co., court case 86 Macfadden Publications (Inc.), court case 108 Marietta Manufacturing Co., court case 89 Masland Duraleather Co., court case 101 Millers’ National Federation, court case 106 Misrepresentation, typical cases of 67-70, 77-79, 83 Morrissey, Charles T., court case 86 National Power & Light Co., public utilities inquiry 13 Newsprint paper inquiry 6, 47 Northwest The & Mantel Contractors’ Association, order to cease and desist 75 Ohio Leather Co., court case 101 Orders to cease and desist 167 representative cases 74 Paramount Famous-Lasky Corporation, court case 96 Peanut prices inquiry 48, 237 Preliminary inquiries 49, 117 Price bases inquiry 36, 238 Price discrimination, cases of 65, 69, 75 Procedure: Clayton Act 17 Export trade act 129 Federal Trade Commission act 17 Stipulation 58 Trade Practice Conference 38 Public utilities investigation 6, 11, 33, 60, 233 Raladam Co., court case 9, 102 Resale price maintenance, general business inquiry 7, 34, 235 cases of 65, 67, 76 Resolutions directing inquiries 233 Royal Baking Powder Co., court cases 109-110 Shade Shop, court 91 Shakespeare Co., court case 87 Sherman Antitrust Act, text of 145 Stipulations 58, 220 Stock acquisitions 50, 64, 82 Tailor-Made Shoe System, order to cease and desist 78 Temple Anthracite Coal Co., court case 87 order to cease and desist 82 Trade practice conferences 38, 166 Trade, agreements In restraint of, cases 81 Trust laws in foreign countries 130 Tying and exclusive contracts, cases of 66 Universal Lock-Tip Co., order to cease and desist 78 Vivaudon, V. (Inc.), court case 88 Webb-Pomerene law (export trade act) 157 Western Meat Co., court case 89 “White Pine” lumber cases, typical complaint, No. 1620 197 ANNUAL REPORT OF THE FEDERAL TRADE COMMISSION, 1929-30 The Senate and House of Representatives, The Federal Trade Commission herewith submits to the Congress its annual report for the fiscal year July 1, 1929, to June 30, 1930. 1 PART I. INTRODUCTION THE FIRE OF AUGUST 30, 1930 THE YEAR’S ACTIVITIES UTILITIES INVESTIGATION BACKGROUND AND PROCEDURE 3 THE FIRE OF AUGUST 30, 1930 Although the fire of Saturday, August 30, 1930, which wrecked the building then housing the Federal Trade Commission in Washington occurred subsequent to the close of the fiscal year reported on herein, it was an event of far-reaching significance and has an important bearing on the current work of this commission. No other event has served so strikingly to call attention to the inadequacy of the temporary buildings housing many of the Government establishments, as depositories of priceless records. In a recent letter to the director of the Office of Public Buildings and Public Parks of the National Capital the chairman of the commission stressed the “urgent need for fireproof quarters so that our employees and records shall not be again subject to the serious fire as recently demonstrated.” It is with a growing satisfaction that this commission contemplates the day when its official home will be within a permanent structure such as that at present proposed to domicile the independent offices of the Government. Immediately after the fire those men and women whose offices had been wiped out or most severely damaged were moved, under an emergency order, from the wrecked structure at 2000 D Street NW to a near-by temporary building at 2000 C Street. They are still housed there, although members of the commission and the larger part of the staff are now quartered at 1800 Virginia Avenue NW., in another temporary building. Fortunately, the commission’s personnel had left the building more than an hour before the fire, so that no one was burned or otherwise injured, and it is doubtful if serious mishaps would have resulted even had the fire started during working hours, because the alarms would have been sounded and the employees would have responded as they had been trained to do at the frequent intervals at which fire drills had been held. Several firemen were temporarily overcome. One side of the structure, escaping the brunt of the flames, housed most of the invaluable records which had been filed in their accustomed cabinets and were saved; but a number of documents in the course of preperation, some designed for later use in such investigations as that relating to public utilities, were left temporarily in offices which lay in the path of the flames and were destroyed.
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