The Birmingham age-herald., 1915-12-22
THE FEDERAL TRADE COMMISSION MAKES
 INDUSTRIAL SURVEY
Chairman Davies Delivers Address Before Manu-
 lecturers Association
SOUND BASIS FOR
 ACTION IS CHOSEN
Organization Has Been in Existence Only Nine Months, But in That Time Has Made Exhaustive in-
 vestigation of Industrial Condi-
 tions at Home and Abroad

veSt1gatl0n of Industrial Condi-
 tions at Home and Abroad
 New York. December 21.-(Special.) Joseph E. Davies. chairman of the fed eral trade commission, in his address before the American Manufacturers Ex- port association tonight said, in part:
 "The federal trade commission has been in existence nine months During sion have been largely devoted to sur vey of the industries of the country. The sound basis for action comes only from an accurate and thorough appre- citation of conditions. The processes of industry, the constituent parts thereof, and the interrelations that exist be- tween different kinds and classes of in dustrial activities are matters of in tricate and extensive importance In formation of this kind has been com piled, and is now available.
 During that time the commission has come into personal contact with prac- tically thirds of the industries of the country, measured in value of in- vestment; not only to know the men engaged in the business, respective ly, but to see first hand some of the problems that confront them. There is at hand, and will be immediately avail able for the commission on preparedness wi biph ic taJ ha oft oo United States is considering the ap- pointment of for the consideration of the mobilization of the industrial resources of this country, record not only of the industries availble, but their re- spective capacities, actual and poten- tial, the degree of their integration, physical and financial. This is the first survey of these factors, assembled through governmental agency.
 The investigations of specific sub jects, formerly conducted by the bureau of corporations, have been continued. Under the directorship of Vice Chair man Hurley, the facilities of the ac- counting branch of the organization have been extended to such businesses as desire assistance in matters of cost accounting and efficiency methods in manufacture or commerce. This cost accounting service has not been im- posed upon anyone, but exists for those who might wish to avail themselves of it. It has been met with great favor by all classes of business.
 UNFAIR METHODS
 The principal function for which the
 federal trade commission was cerated
 was undoubtedly to prevent practices of
 unfair competition in industry. The ob-
 ject was to destroy monopoly in the
 seed, and to protect the great ma jori-
 ty of business units in industry, whose chief menance comes from practices of
 unfair competition which might be em
 ployed by not a more efficient but by a more powerful rival. Complaints GOV ering many varities of unfair methods have been filed with the commission such as false advertising, bogus inde- pendents, price discrimination, bribery of employees, boycotts, misbranding o1 goods, rebates and the like These com plaints have come from all classes ot industry, covering the fields of mining, agriculture, manufacturing and distri- button. Of these complaints, and theii disposition, the public has not heard
 much. This is so because of two condi- tions which the federal trade commis sion has imposed upon it's procedure for the public interest. No information iS SifCh Out, OA lS upon duy application for a complaint which is | made to the federal trade commission until the case has been investigated an6 until it has been determined that g formal complaint is to be served by the commission against the parties com plained of. The reasons for this are l first, to protect those who in good faitl
 make the complaint. from reprisals Bs those against whom the charges arc made; and, second, to protect legiti-
 mate business from the injury which the publication of malicious or improper ap. pHcations or complaints might subject them to.
 | The other policy which has been adopt ed is that of advising the party com plained agairst of the nature and charac ter of the charges made before forma complaint is made and filed by the com mission, to the end that either the part, complained of may establish the lack O Public interest, or be given an oppor tunity. if the situation is clear, to agre, that neither as to the complainant no as to the general public will there be ; continuance of such illegal practice. Thes, policies tend to obscure the amount O. work done by the commission. so far al the publicity of it's work is concerned. bu it has been felt that a larger service wa. being performed by the proper protec ticn of legitimate interests of bushes. and by the speedy accomplishment of thu relief to the general public and to tn. parties complained of.
 The federal trade commission was ere ated out of a desire to bring into th, relations between government and busi ness and society constructive agency I was designed by those who created i not as punitive. but as correctly, force. It was hoped that it would serv, to bring about more simple, direct ant l informal agency for adjustment of mat strictly judicial or strictly adm,nistra tive agency The fact that there may be comparatively few complaints brought by this body Is, therefore, not afi iridiea tion that relief is not being accorded; bu may be in fact, an indication that tn, effectiveness of this agency is being dem crstrated along the lines contemplated by those who sought it's enactment
 INDUSTRIAL COMPETITION While the significance Of Germany's ef flciency may perhaps have been exagge. ated, nevertheless it is true that an in ton has been quietly developed in Flu rope that has eclipsed anything of thu kind that we have seen. Economies hay, been induced in product.on; scientific methods effected in marketing and dis tribution exploitation through combina tions of an international character hay. been developed and are the complemen of military machine that has command ed the admiration of the world. Withi, the months last past these facts hay, not been apparent to us alone. England France and Italy have. under the pres sure of overpowering necessity, endeav ats1i i.,1, H,. A-