Evening star., 1925-05-21
TRADE COMMISSION
ROW AFFECTS MANY
Big and Little Business Con.
cerned in Issues In
side of Board.
~ Consolidated Press.

~ Consolidated Press.
Big business and little business
competitors who think unfair meth
DDS are being used against them, and
all the better business bureaus who
want to save the public from injury
through false advertising or misrep-
reSentat1on, are concerned in the is
sues which have developed a CON
troversy inside the Federal Trade
Commission.
The differences of opinion between
the majority and minority members
are sincere differences. They arise
out of a multitude of experiences in
which unjust publicity has been min
gled with helpful publicity. But the
public-and perhaps the courts-will
nave to decide what procedure is the
w1sest to follow. For the more the
underlying factors in the debate be-
tween the majority and minority are
examined the more it is evident that
what is dishonest and fraudulent to
one mind with respect to a method
OF pursuing q business may appear to
another mind as simply shrewd and
aggressive.
See Publicity Abused.
All members of the commission are
agreed that where a firm or individual
appeals to the commission for relief
''SSliIlSC d tpilb ne lsttlS SiDplIl
this shall not be broadcast by the
commission then and there. All are
agreed, moreover, that even after
thorough investigation the commits
sion may come to the unanimous con-
clusion that publicity about the com
plant might be subject to misuse,
especially if the firm complained of is
innocent.
Thus far there is no room for argu-
ment, as all commissioners say the
firm or business guilty of fraud should
not be allowed to escape either pub
licity or punishment. But there have
. been cases in which a wrongful prac-
tice is not clearly one of fraud or de-
ception. In other words, n ma jority of
the commission might think it was an
innocent intent but wrong practice.
a minority might think the practice
and the intent to be fraudulent.
New Rules on Point.
The new rules of the commission
provide that, after thorough pre-
liminary investigation and an oppor-
tunity for both sides TO be present
at a hearing, if the commission
shall decide to dismiss the application
for complaint, there need be no pub
licity, or that when the guilty party
agrees not to engage in the wrong
ful practice any more the case shall
be dismissed without publicity.
TO this the minority on the commits
sion is not ready to agree, arguing
that the ma jority might be wrong and
that publicity will at least advise the
trade and the public and perhaps lead
to further discussion, if not rehear-
ing, of the issues.
Under the rules of the commission
as interpreted by the majority, COM
missioner is bound not 10 reveal any
information about these cases which
are dismissed by mutual consent, and
it is contended that the Federal stat
utes governing the commission make
1t obligatory for commissioner to be
bound to secrecy on this point. The
minority read the law differently and
say Officers" and employees" may be
bound. but not commissioners, be
cause the statute makes a distinction
between Officers" and Commission
ers" by using the latter word.
The minority say they cannot con-
ceive of situation in which a quasi
judicial body like the Federal Trade
Commission can be deprived of is
suing dissenting opinions. This point
may have to be settled in the courts
If it is pressed by the minority.
Rule Can Be Frustrated
If the minority does have the right
to issue dissenting opinions then the
new rules can be frustrated because
publicity can be given to anything
that the minority deems necessary in
connection with a dismissal of a COM
plaint.
Another point that is interesting in
connection with the rule which would