The times-news., 1938-11-30
WOULD AMEND
CLAYTON ACT
ON MONOPOLY
Trade Commission Wants
Control of Anv Industry
-, Held to 10 Percent

|
WASHINGTON, Nov. 80. (CP),
The federal trade commission last
hight renewed demands that con-
gress broaden anti-monOpoly laws
@ prohibit any single corporation
from obtaining control of more
chan 10 percent of the output of
any one industry.
In an annual report to congress,
.ubmitted by Chairman Garland
S. Ferguson, the commission ask
ed that section Z of the Clayton
act be amended to make it unlaw-
'ul for company to acquire capl-
tai stock or physical assets OF
competing company when the deal
would give the purchaser control
of more than 10 percent of the in
iustry's production.
Pointing out that the law now
prohibits only the acquisition OF
capital stock by competing cor
poration when this would result in
substantial lessening" of compe-
tition, the commission said that
prospective purchaser can achieve
the same result-elimination OF
his competitor - merely by pur-
chasing the other firms assets.
Under the proposed amendment,
however, this provision would not
apply to projected mergers where
the corporations involved con-
trolled les sthan 10 percent Of the
industry's output. ...
"This amendment would have
the advantage of creating a posi-
tive legislative standard, defining
the limit at which corporate accre-
tions in size and power through
such acquisitions shall be halted
in order to prevent monopoly"
the report said.
A similar recommendation was
made by the commission in its an
nual report for fiscal year 1886
81, in connection with its findings
in the agricultural income in
quiry. Last June, reporting OH
the farm implement and machin-
cry inquiry, the commission again
urged amendment of section T.
In the present report the com
agreed with President
Roosevelt's accommodation last
April that "a government bureau
should be assigned TO- collect and
publish statistical and other in
formation regarding market con-
ditions in order to be in a position
to warn against the. dangers of
temporary, toverproduction, exces-
sive inventories and other condi-.
lions affecting general business
-
The commission recalled that
the, general aim and nature of |
such project was discussed in
FTC reports in, l917-1S, and that |
work in this direction actually |
vas undertaken during the follow
ng two years under special con-
sressional appropriation. ,E'
The report said that at the end |
If the fiscal year, June 80, the |
commission was inquiring into
practices of certain newsprint |
manufacturers, at the request of |
he attorney general. An investi-
yation Of the motor vehicle indus
ry also was in progress at that
ime, the report added. ., |
During the year 1937-38, the
commission reported that it COM
,leted approximately 1900 investi-
.ations in preliminary cases, ap-
proved SIS stipulations to cease
nd desist from unfair trade prac-
ices and issued 305 complaints
nd 246 cease and desist orders.
The commission said that in
.eneral it had received coopera-
ion from newspaper publishers
nd radio stations in its campaign
o help eliminate false, misleading
nd deceptive advertising.
OF a total 129,075 advertise
nents appearing in 524 newspa-
'ers and 907 ,mazazines, 23,S43
ontain allegations which appear
d to be false or misleading" the !