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14 (EXTRACT FROM) [P ublic L aw N o. 121— 63d Congress] That no part of any sum herein appropriated shall be expended for the purchase of structural steel, smp plates, armor, armament, or machinery from any persons, firms, or corporations who have com bined or conspired to monopolize the interstate or foreign commerce or trade of the United States, or the commerce or trade between the States and any Territory or the District of Columbia, in any of the articles aforesaid, and no purchase of structural steel, ship plates, or machinery shall be made at a price in excess of a reasonable profit above the actual cost of manufacture. But this limitation shall m no case apply to any existing contract. Approved, June 30, 1914. (E x t r a c t f r o m ) [ P ublic L aw N o. 161— 63d C ongress] Enforcement of antitrust laws: For the enforcement of antitrust laws, including not exceeding $15,000 for salaries of necessary em ployees at the seat of government, $300,000: Provided, however, That no part of this money shall be spent in the prosecution of any organization or individual for entering into any combination or agreement having in view the increasing of wages, shortening of hours or bettering the conditions of labor, or for any act done in furtherance thereof not in itself unlawful: Provided further, That no part of this appropriation shall be expended for the prosecution of producers of farm products and associations of farmers who cooperate and organize in an effort to and for the purpose to obtain and maintain a fair and reasonable price for their products. Approved, August 1, 1914. [ P ublic—No. 203— 63d C ongress] (H. R. 15613) An Act To create a Federal Trade Commission, to define its powers and duties, and for other purposes 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) 2which shall be composed o f five commissioners, who shall be appointed by the President, by and with the advice and consent of tne Senate. Not more than three o f the commissioners shall be members of the same political party. The first commissioners appointed shall continue in office for terms o f 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 ap 15 pointed for terms o f seven years, except that any person chosen to fill a vacancy shall be appointed only for the unexpired term of the commissioner whom he snail succeed. The commission shall choose a chairman from its membership. No commissioner shall engage in any other business, vocation, or employment. Any commissioner may be removed by the Presiaent 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. S ec. 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, and it shall have authority to employ and fix the compen sation 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 appro priated for by Congress. With the exception of the secretary, a clerk to each commissioner, the attorneys, and such special experts and examiners as the commis sion may from time to time find necessary for the conduct of its work, all employees o f 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 o f the expenses o f 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 o f itemized vouchers therefor 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 o f expenditures of the commission. S ec. 3. That upon the organization of the commission and elec tion of its chairman, the Bureau of Corporations and the offices of Commissioner and Deputy Commissioner of Corporations shall cease to exist; and all pending investigations and proceedings of the Bureau o f Corporations shall be continued by the commission. All clerks and employees of the said bureau shall be transferred to and become clerks and employees of the commission at their present grades and salaries. All records, papers, and property of the said bureau shall become records, papers, and property of the commission, and all unexpended funds and appropriations for the use and mainte nance o f the said bureau, including any allotment already made to it by the Secretary of Commerce from the contingent appropriation for the Department of Commerce for the fiscal year nineteen hundred and fifteen, or from the departmental printing fund for the fiscal year nineteen hundred and fifteen, shall become funds and appropria tions available to be expended by the commission in the exercise of the powers, authority, and duties conferred on it by this Act. 16 The principal office o f the commission shall be in the city o f Wash ington, but it may meet and exercise all its powers at any other place. The commission may, by one or more of its members, or by such examiners as it may designate, prosecute any inquiry necessary to its duties in any part of the United States. Seo. 4. Tnat the words defined in this section shall have the following meaning when found in this Act, to w it: “ Commerce” means commerce among the several States or with foreign nations, or in any Territory o f the United States or in the District of Columbia, or between any such Territory and another, or between any such Territory and any State or foreign nation, or between the District of Columbia and any State or Territory or foreign nation. “ Corporation” means any company or association incorporated or unincorporated, which is organized to carry on business for profit and has shares of capital or capital stock, and any company or association, incorporated or unincorporated, without shares or capital stock, ex cept partnerships, which is organized to carry on business for its own profit or that of its members. “Documentary evidence” means all documents, papers, and corre spondence in existence at and after the passage of this Act. “Acts to regulate commerce” means the Act entitled “An Act to regulate commerce”, approved February fourteenth, eighteen hundred and eighty-seven, and all Acts amendatory thereof and supplementary thereto. “Antitrust acts” means the Act entitled “An Act to protect trade and commerce against unlawful restraints and monopolies”, approved July second, eighteen hundred and ninety; also the sections seventythree to seventy-seven, inclusive, of an Act entitled “An Act to reduce taxation to provide revenue for the Government, and for other purposes”, approved August twenty-seventh, eighteen hundred and ninety-four; and also the Act entitled “An Act to amend sect ions seventy-three and seventy-six of the Act of August twenty-seventh, eighteen hundred and ninety-four, entitled ‘An Act to reduce taxa tion, to provide revenue for the Government, and for other purposes’ ” , approved February twelfth, nineteen hundred and thirteen. S eo. 5. That unfair methods of competition in commerce are hereby declared unlawful. The commission is hereby empowered and directed to prevent per sons, partnerships, or corporations, except banks, and common car riers subject to the Acts to regulate commerce, from using unfair methods o f competition in commerce. Whenever the commission shall have reason to believe that any such person, partnership, or corporation has been or is using any unfair methods of competition in commerce, and if it shall appear to the commission that a proceeding by it in respect thereof would be to the interest of the public, it shall issue and serve upon such person, partnership, or corporation a complaint stating its charges m that respect, and containing a notice of a hearing upon a day and at a place therein fixed at least thirty days after the service of said com plaint. The person, partnership, or corporation so complained of shall have the right to appear at the place and time so fixed and show cause why an order should not be entered by the commission requiring such person, partnership, or corporation to cease and desist from the 17 violation of the law so charged in said complaint. Any person part nership, or corporation may make application, and upon good cause shown may be allowed by tne commission to intervene and appear in said proceeding by counsel or in person. The testimony in any such proceeding shall be reduced to writing and filed in the office of the commission. If upon such hearing the commission shall be of the opinion that the method of competition in question is prohibited by this Act, it shall make a report m writing in which it shall state its findings as to the facts, and shall issue ana cause to be served on such person, partnership, or corporation an* order requiring such person, partnership, or corporation to cease and desist from using such method of competition. Until a transcript of the record in such hearing shall have been filed in a circuit court of appeals of the United States, as hereinafter provided, the commission may at any time3upon such notice and in such manner as it shall deem proper, modify or set aside, in whole or in part, any report or any order made or issued by it under this section. I f such person, partnership, or corporation fails or neglects to obey such order of the commission while the same is in effect, the commission may apply to the circuit court of appeals of the United States, within any circuit where the method of competition in ques tion was used or where such person, partnership, or corporation resides or carries on business, for the enforcement of its order, and shall certify and file with its application a transcript of the entire record in the proceeding, including all the testimony taken and the report and order of the commission. Upon such filing of the appli cation and transcript the court shall cause notice thereof to be served upon such person, partnership, or corporation and thereupon shall have jurisdiction 01 the proceeding and of the question determined therein, and shall have power to make and enter upon the pleadings, testimony, and proceedings set forth in such transcript a decree affirming, modifying, or setting aside the order of the commission. The findings of the commission as to the facts, if supported by testi mony, shall be conclusive. If either party shall apply to the court for leave to adduce additional evidence, and shall show to the satis faction of the court that such additional evidence is material and that there were reasonable grounds for the failure to adduce such evidence in the proceeding Defore the commission, the court may order such additional evidence to be taken before the commission and to be adduced upon the hearing in such manner and upon such terms and conditions as to the court may seem proper. The commis sion may modify its findings as to the facts, or make new findings, by reason of the additional evidence so taken, and it shall file such modified or new findings, which, if supported by testimony, shall be conclusive, and its recommendation, if any, for the modification or setting aside of its original order, with the return of such additional evidence. The judgment and decree of the court shall be final, except that the same shall be subject to review by the Supreme Court upon certiorari as provided in section two hundred and forty of the Judicial Code. Any party required by such order of the commission to cease and desist from using such method of competition may obtain a review of such order in said circuit court of appeals by filing in the court a written petition praying that the order of the commission be set 18 aside. A copy of such petition shall be forthwith served upon the commission, and thereupon the commission forthwith shall certify and file in the court a transcript of the record as hereinbefore pro vided. Upon the filing of the transcript the court shall have the same jurisdiction to affirm, set aside, or modify the order of the commission as in the case of an application by the commission for the enforcement of its order, and the findings of the commission as to the facts, if supported by testimony, shall in like manner be conclusive. The jurisdiction of the circuit court of appeals of the United States to enforce, set aside, or modify orders of the commission shall be exclusive. Such proceedings in the circuit court o f appeals shall be given precedence over other cases pending therein, and shall be in every way expedited. No order of the commission or judgment of the court to enforce the same shall in any wise relieve or absolve any person, partnership, or corporation from any liability under the antitrust acts. Complaints, orders, and other processes of the commission under this section may be served by anyone duly authorized by the commis sion, either (a) by delivering a copy thereof to the person to be served, or to a member of the partnership to be served, or to the president, secretary, or other executive officers or a director of the corporation to be served; or (b) by leaving a copy thereof at the principal office or place of business or such person, partnership, or corporation; or (c) by registering and mailing a copy thereof addressed to such per son, partnership, or corporation at ms or its principal office or place of business. The verified return by the person so serving said com plaint, order, or other process setting forth the manner of said service shall be proof of the same, and the return post-office receipt for said complaint, order, or other process registered and mailed as aforesaid shall be proof of the service of the same. S ec. 6. That the commission shall also have power— (a) To gather and compile information concerning, and to investi gate from time to time the organization, business, conduct, practices, and management of any corporation engaged in commerce, excepting banks and common carriers subject to the Act to regulate commerce, and its relation to other corporations and to individuals, associations, and partnerships. (b) To require, by general or special orders, corporations engaged in commerce, excepting banks, and common carriers subject to the Act to regulate commerce, or any class of them, or any of them, re spectively, to file with the commission in such form as the commis sion may prescribe annual or special, or both annual and special, reports or answers in writing to specific questions, furnishing to the commission such information as it may require as to the organization, business, conduct, practices, management, and relation to other cor porations, partnerships, and individuals of the respective corpora tions filing such reports or answers in writing. Such reports and answers shall be made under oath, or otherwise, as the commission may prescribe^ and shall be filed with the commission within such reasonable period as the commission may prescribe, unless additional time be granted in any case by the commission. 19 (c) Whenever a final decree has been entered against any defend ant corporation in any suit brought by the United States to pre vent and restrain any violation of the antitrust Acts, to make inves tigations, upon its own initiative, of the manner in which the decree has been or is being carried out, and upon the application of the Attorney General it shall be its duty to make such investigation. It shall transmit to the Attorney General a report embodying its findings and recommendations as a result of any such investigation, and the report shall be made public in the discretion of the com mission. (d) Upon the direction of the President or either House of Con gress to investigate and report the facts relating to any alleged viola tions of the antitrust Acts by any corporation. (e) Upon the application of the Attorney General, to investigate and make recommendations for the readjustment of the business of any corporation alleged to be violating the antitrust Acts, in order that the corporation may thereafter maintain its organization, man agement, ana conduct of business in accordance with law. ( f ) To make public from time to time such portions of the informa tion obtained by it hereunder, except trade secrets and names of cus tomers, 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. (g) From time to time to classify corporations and to make rules and regulations for the purpose of carrying out the provisions of this Act. (h) To investigate, from time to time, trade conditions in and with foreign countries where associations, combinationSj or practices of manufacturers, merchants, or traders, or other conditions, may affect the foreign trade of the United States, and to report to Congress thereon, with such recommendations as it deems advisable. S ec. 7. That in any suit in equity brought by or under the direction of the Attorney General as provided in the antitrust Acts, the court may, upon the conclusion or the testimony therein, if it shall be then of opinion that the complainant is entitled to relief, refer said suit to the commission, as a master in chancery, to ascertain and report an appropriate form of decree therein. The commission shall proceed upon such notice to the parties and under such rules of procedure as the court may prescribe, and upon the coming in of such report such exceptions may be filed and such proceedings had in relation thereto as upon the report of a master in other equity causes, but the court may adopt or reject such report, in whole or in part, and enter such decree as the nature of the case may in its judgment require. S eo. 8. That the several departments and bureaus of the Govern ment when directed by the President shall furnish the commission, upon its request, all records, papers, and information in their posses* won relating to any corporation subject to any o f the provisions of this Act, and shall detail from time to time such officials and employees to the commission as he may direct. S eo. 9. That for the purposes of this Act the commission, or its duly authorized agent or agents, shall at all reasonable timg* hav* 20 access to, for the purpose of examination, and the right to copy any documentary evidence of any corporation being investigated or pro ceeded against; and the commission shall have power to require by subpoena the attendance and testimony of witnesses and the produc tion of all such documentary evidence relating to any matter under investigation. Any member of the commission may sign subpoenas, and members and examiners of the commission may administer oaths and affirmations, examine witnesses, and receive evidence. Such attendance of witnesses, and the production of such docu mentary evidence, may be required from any place in the United States, at any designated place of hearing. And in case of dis obedience to a subpoena the commission may invoke the aid of any court of the United States in requiring the attendance and testimony of witnesses and the production of documentary evidence. Any of the district courts of the United States within the juris diction of which such inquiry is carried on may, in case of contumacy or refusal to obey a subpoena issued to any corporation or other per son, issue an order requiring such corporation or other person to appear before the commission, or to produce documentary evidence if so ordered, or to 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. Upon the application of the Attorney General o f the United States, at the request of the commission, the district courts of the United States shall have jurisdiction to issue writs of mandamus command ing any person or corporation to comply with the provisions of this Act or any order of tne commission made in pursuance thereof. The commission may order testimony to be taken by deposition in any proceeding or investigation pending under this Act at any stage of such proceeding or investigation. Such depositions may be taken before any person designated by the commission and having power to administer oaths. Such testimony shall be reduced to writing by the person taking the deposition, or under his direction, and snail then be subscribed by the deponent. 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 herein before provided. Witnesses summoned before the commission shall be paid the same fees and mileage that are paid witnesses in the courts of the United States, and witnesses whose depositions are taken and the persons taking the same shall severally be entitled to the same fees as are paid for like services in the courts of the United States. No person shall be excused from attending and testifying or from producing documentary evidence before the commission or in obedi ence to tne subpoena of the commission 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, or produce evi dence, documentary or otherwise, before the commission in obedience to a subpoena issued by it : Provided, That no natural person so testi- 21 fying shall be exempt from prosecution and punishment for perjury committed in so testifying. S eo. 10. That any person who shall neglect or refuse to attend and testify, or to answer any lawful inquiry, or to produce documentary evidence, if in his power to do so, in obedience to the subpoena or lawful requirement o f the commission, shall be guilty o f an offense and upon conviction thereof by a court o f competent jurisdiction shall be punished by a fine o f not less than $1,000 nor more than $5,000, or by imprisonment fo r not more than one year, or by both such fine and imprisonment Any person who shall willfully make, or cause to be made, any false entry or statement of fact in any report required to be made under this Act, or who shall willfully make, or cause to be made, any false entry in any account, record, or memorandum kept by any corporation sub ject to this Act, or who shall willfully neglect or tail to make, or to cause to be made, full, true, and correct entries in such accounts, records, or memoranda of all facts and transactions appertaining to the business of such corporation, or who shall willfully remove out of the jurisdiction of the United States, or willfully mutilate, alter, or by any other means falsify any documentary evidence of such cor poration, or who shall willfully refuse to submit to the commission or to any of its authorized agents, for the purpose of inspection and taking copies, any documentary evidence of such corporation in his possession or witnin his control, shall be deemed guilty o f an offense against the United States, and shall be subject, upon conviction in any court of the United States of competent jurisdiction, to a fine of not less than $1,000 nor more than $5,000, or to imprisonment for a term of not more than three years, or to both such fine and imprisonment. I f any corporation required by this Act to file any annual or special report shall fail so to do within the time fixed by the commission for filing the same, and such failure shall continue for thirty days after notice o f such default, the corporation shall forfeit to the United States the sum of $100 for each and every day of the continuance of such failure, which forfeiture shall be payable into the Treasury of the United States, and shall be recoverable in a civil suit in the name of the United States brought in the district where the corporation has its principal office or in any district in which it shall do business. It shall be the duty of the various district attorneys, under the direction of the Attorney General of the United States, to prosecute for the recovery of forfeitures. The costs and expenses of such prosecution shall bepaid out of the appropriation for the expenses o i the courts o f the United States. A ny officer or employee of the commission who shall make public any information obtained by the commission without its authority, unless directed by a court, shall be deemed guilty of a misdemeanor, and, upon conviction thereof, shall be punished by a fine not exceed ing $5,000, or by imprisonment not exceeding one year, or by fine and imprisonment, m the discretion of the court. S eo. 11. Nothing contained in this Act shall be construed to prevent or interfere with the enforcement of the provisions of the antitrust Acts or the Acts to regulate commerce, nor shall anything contained in the Act be construed to alter, modiiy, or repeal tne said antitrust Acts or the Acts to regulate commerce or any part or parts thereof. Approved, September 26,1914.
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