Evening star., 1923-07-01
BY BEN McKEEwAY.


ELIvERING the Supreme
Courts decision three years
ago in the first case brought
before that tribunal invoIv-
ing an order Of the Federal Trade
Commission. Mr.. Justice McReynolds
said in part: THE words unfair
method of competition are not de-
fined by the statute. and their exact
meaning Is in dispute. 1t is for the
courts. not the commission. ultimately
to determine as matter of law what
they include"
1t is an interesting fact that the
commission, and not the courts. is
defining over and over every day just
what constitutes an unfair method
of competition" and that the commits
sion. in common parlance, is getting
away with It." Statistics at the COM
mission indicate that American busi-
ness as whole Is willing to let we'll
enough alone, take the word of the
Federal Trade Commission If an, "un-
fair method Of competition" is
charged against 1t, and drop that
method like hot cake.
Duties Of Commission.
Going back a moment to the act
which created the Federal Trade
Commission and defined its duties,
one Of its more important functions
is set down as follows: ITO prevent
persons, partnerships or corporations
- from using unfair methods
80 Ill
in the act: The aim of the commits
sion is to aid all honorable and honest
business by keeping competition fair
and open TO all, instead of unfair and
oppressive. Within it's field lies the
trade of the whole country in its
larger Interstate and foreign) as
poets. 1. e.,Nthe extraction of raw ma
terials. their manufacture, sale and
To show that the Federal Trade
Commission is putting its own inter
probation on what constitutes unfair
methods in competition. of 3.179 ap-
plications for action by the commits
sion against firms alleged to be
engaging in unfair methods of compe-
, tition. the commission has issued for
NAL orders to cease ar.S uesiSt in 543
cases. Out of the 5,3 Grders of the
commission, only tor,y-eight have
Z Appeared tnTOuSn tn0 cOuTtS, the UAl-
| ance having been obeyed by the re-
spondents without further contro-
versy.
Chance to Win in Court.
The history Of the cases which have
| gotten into court might tend to show
a weakness Of the commission. For
Of those appealed to the circuit
! courts. eleven have been won by the
] commission and twenty-four have
been won by the respondents. OF
/ those appealed to the Supreme Court,
two have been won by the commission
| and six lost. Four cases are pend
ing In the circuit courts and one in
the Supreme Court. This might lead
/ a merchant ordered to cease and de-
List whatever he is doing to say.
mo. You can't tell me to stop. The
courts must do that. You have lost
the majority good majority at that
l-of the cases taken into court. Why
shouldn't ! take a chance and take
mine into court?'
But by far the majority who have
received orders from the commission
! obey them without further debate, for
this reason: The commission &C
knowledges that In every case
brought into court there has been q
nice legal point at issue which has
been difficult for the commission itself
to decide. or the others. the COM
:mission is sure of itself. and the lack
of appeals from the majority of its
idecisions would indicate the commits
sions ability to convince the respond
ents of it's ability to judge between
what is right and what is wrong in
competition. - -
Justifed by Record.
+: The commissions record has al
ready shown the necessity which
brought It into existence. American
business has come to look upon the
commission as a fair. just friend, and
glance at the number Of cases de-
cided by the commission is proof
enough of its careful guardianship of
the right Of the public for whose
protection it was brought into being.
A study of the commissions method
of dealing with business throws an
interesting light on its success :
/ Suppose a complaint against a mer-
chant alleged to have adopted unfair
methods of competition originates
with a rival in his business. The
complaint may be so insignificant
that it is returned without action
Mr.. "a" for instance, may charge Mr.
"B" with having come into his store
and given ,Mable. the cash girl. 81
more a week than he had been paying
her,-this resulting in Mable's chang
tstore. The commission writes Mr.. "a >
| a nice note telling him to chase him