Evening star., 1922-06-18
TAKING UJNFAIRNESS OUT
OF AMERICAN BUSINESS
Federal Trade Commission, Sustained bv
the Courts, Likely to Have Hands
Strengthened by Congress.

company When IL would lessen COM
petition. 1t will be recalled that the
late ]. Pierpont Morgan before a
congressional committee in 1913 said
IL was impossible to unscra mble such
business mergers. Here is concrete
attempt to unscramble 1t has espec-
ial point at this time when the
Federal Trade Commission has issued
complaint against the Bethlehem
Lackawana Steel Company under the
Federal Trade Commission act The
steel people have filed denial and
are going ahead with their combina-
ton. while the federal trade com
missioners are gfrdtng their loins for
another test in court.
In the Beech Nut Packing COMPANY
case, the Federal Trade Commission
vas defeated in the lower court. but
it appealed to the Supreme Court and
was sustained. Here was question
Of price fixing, and the Supreme
Court decision has had very
salutary effect regarding price fixing
and false advertising generally.
There has been intense interest in
the business world in the decision
written by Chief Justice Taft in the
Wallace. Secretary of Agricultur..
The question before the Supreme
Court was regarding the constitution
ality of the packers and stockyards
act. The Supreme Court held that IL
was constitutional. The salient point
in this connection is that after un-
Drecendented attack upon the Federal
Trade Commission for its report on
the packers. which attracted world
wide attention. although the report
of the commission was not mentioned
at all during the pleading. Chief
Justice Taft inserted quotation
from that report in the recital of
facts in his decision
These four decisions have pro-
voked a great deal of comment be-
cause they are each and every one
of far-reaching Importance in the in
dustrial world.
Commission Maintains
an Honor Roll.
1t is also appropriate to mention here
that the Federal Trade Commission in
its drive to purge business of unfair
practices in competition has tried out
an honor roll' as we'll as orders TO
case and desist 1t put a tobacco manu-
facturer-tne Reynolds Tobacco Com
pany Of North Carolina-on this honor
roll, specially mentioning this concern
in a report to Congress because this
manufacturer was found to be fighting
agents endeavoring to inveigle it into
combinations in restraint of trade.
Still further worthy of note is the fact
that from all over the world missions
have come to Washington for the pur-
pose of studying the work of the Fed
eral Trade Commission-because it is a
new agency in business making the in
terests of the consumer of dominant
importance. Australia and New Zea-
land have already established trade
commissions and number of other ma
tions have legislation pending embody-
ing the same kind of organization.
So much by way of background
showing how the Federal Trade Com
mission without punative authority has
represented the interests of the public
and won for itself through the courts
a standing comparable to that Of the
pure food and drug act.
Now comes a statement OF how Con-
gress considers strengthening the trade
commission act:
/ First-To give the Federal Trade
| Commission jurisdiction not only over
| unfair methods of competition, but also
| over unfair acts. This is on the theory
| that unfair practice, as now considered
| by the commission. constitutes a series
| of acts or repeated acts which might
be said to have become habitual. Where-
as one single unfair act may be such
as to jolt seriously any particular in
dustry.
Hands OF Commission
May Be Strengthened.
Second-To Obviate this s,iu:
Now, when the commission iss.<
order to cease and desist, the CO.. "A
complained against may take its case
at once to the circuit court of appeals.
and until a decision in handed down the
order is not operative, and in the mean
| time a competitor can be driven out of
business 1t is proposed to so amend
the law that the order should go into
effect Immediately and stay in effect
until it is set aside by the court.
Third-That the commossion should
not be confined to the strict rules of
| pleading. but being an Administrative
body, should be allowed greater free
| DOM whereas ii now is controlled by
the strictest rules of pleading.
Great pressure is being brought TO
| bear to have the commission rule IN
| advance" In fact, many business in
| terests and attorneys now crowd upon
| the commission asking Can we do thus.
| or So 1t is impossible in great eco
| nomic cases to give such a ruling in
| advance because one can oftentimes
| tell only by the effect and by the In
| tent of the group behind il as such IN
| tent develops. To rule in advance would
| be to inject more government in busi-
ness than was ever dreamed of, but
the commission can, as il does, chart
the sea for fair competition.