22 



HARDWOOD RECORD 



June 10. 1922 



The Issues Involved 



Tlie Commission has made its appeal against tlie injunction granted 

 in favor of the steel companies, which refused to furnish the informa- 

 tion demanded by the Commission upon the three following grounds, 

 which were sustained by the lower court; 



First, that the Constitution did not give Congress authority to enact 

 a law which would give to the Federal Trade Commission the authority 

 which it has assumed in this case, because the exercise of such power 

 would constitute an interference with the regulation of "purely private 

 intrastate manufacturing business;" also that production is not inter- 

 state commerce and is. therefore, not subject to Federal authority 

 under the power to regulate .interstate commerce. 



Second, that the requirements of the Federal Trade Commission con- 

 stitute an infringement of constitutional rights under the Fourth and 

 Fifth Amendments by compelling disclosure of "trade secrets and facts, 

 which amount to an unreasonable search and seizure." 



Third, that, irrespective of the constitutional power of Congress to 

 grant such authority by statute, it did not in the Federal Trade Com- 

 mission act. from which the Federal Trade Commission derives its 

 powers, give to it the powers which the Commission has sought to 

 exercise. 



Answer of the Commission 



In answer thereto the Commission in its brief and argument, on 

 appeal to the Court of Appeals of the District of Columbia, which 

 appeal is now pending, takes the position which may briefly be sum- 

 marized as follows; 



First, tiiat Congress has full power to collect information necessary 

 or proper to enable it to act intelligently in passing legislation upon 

 any subject over which Congress has jurisdiction. 



Second, that Congress may collect this information through a con- 

 gi-essional committee or through an administrative body such -as the 

 Federal Trade Commission. 



Third, the power to regulate interstate commerce is not defeated 

 by the fact that it may involve incidentally the regulation of some 

 intrastate commerce, or even of production (which has been declared 

 by the lower court not to be commerce at all, either interstate oi- 

 intrastate). 



Fourth, that in the regulation of interstate commerce Congress may 

 use the "effects of publicit.v," and "may impose conditions under which 

 state-created corporations may engage" in interstate commerce. 



Fifth, that the limitations upon these powers of Congress are those 

 with respect to "search and seizure," and the "taking of private prop- 

 erty without due process of law." and that no individual may be com- 

 pelled to incriminate himself. Also that the provisions touching self- 

 incrimination, or search and seizure, are not applicable to a corpora- 

 tion as not being a "citizen" under the terms of the Constitution. 



Sixth, that the requiring of information in and of itself does not 

 constitute regulation. 



Seventh, that the one difference which exists between the exercise 

 of federal regulatory power over the transportation business — such as 

 the railroads — and over those who are engaged in interstate commerce 

 — such as the steel or coal or limiber industries — lies in the difference 

 in the "recognized general public interest" in them: also that both are 

 in commerce. 



Eighth, that when the business is "in a vital, basic necessity, of 

 constant universal use, it is also charged with the general public 

 interest and use, and the distinction (see number 7 above) disappears, 

 and there is imposed upon the general government the same paramount 

 right and duty to regulate." 



Ninth, that business in iron, steel and coal is "basic and vital, and. 

 consequently, is so charged wath public interest and use." and is there- 

 fore just as much subject to Federal regulation as is the business of 

 transportation itself — such as the railroads. 



Tenth, that the Federal Trade Commission Act should be applied 

 "in recognition of these powers and duties ' which "cannot be thor- 

 oughly or properly performed without accurate knowledge of the full 

 and true facts." including those called for from the steel and coal 

 industries, such as production, .sales, prices, costs, profits. 



Eleventh, that a "state-created corporation" as a condition of 

 engaging in interstate commerce must furnish the Federal Trade 

 Commission, when requested, "trade information as to all of its busi- 

 ness, which (without revealing trade secrets or the names of cus- 

 tomers) that Commission sliall publish as it shall deem expedient in 

 order that the regulatory effect of publicity of the true facts may take 

 hold, and based on which the Commission shall recommend to Con- 

 gress such additional legislation as shall be deemed proper," 



Twelfth, that in the case of the steel companies (involved in the 

 injunction decree against which the Commission now appeals) the 

 information required by the Commission is necessarj- to show the 

 "true condition of the specific portion of commerce which exists in 

 these basic trades, including particularly suppl>- and demand, costs, 

 selling prices, income, expense and ijrofits." 



{I'ontinmd from page I'.l) 



Kates in Cents Per 100 Pounds Applying on Logs. Bolts, Billets and 

 Other Rough Material 

 Where the present 



/■rt^r is as shown The hch- rafc will be 



lielow and there has In the In the In the 



has been no change since Southern Western Official 



August 26. 1920 Group Group Group 



2 1 Vi 2 2 



3 3 21/:. 21,4 



4 3V:. 3M. 4 



5 4% 4% 41^ 



G 5Vi 5V, 5% 



7 6 6 6% 



S 7% 7 7% 



9 8 8 8% 



111 9 9 9% 



11 10 9V{. 10 



12 10% 11 11% 



13 12 12 12y2 



14 12% 13 13 



1.5 14 13% 14 



l(i 14Vi! 14% 15 



17 15 15 16 



l,** 16% 16% 17 



19 17 17 17% 



20 IS 18 18% 



NOTE — Generally speaking, the southern group includes points east of 

 the Mississippi River and south of the Ohio River: the western group 

 ini-luiles points west of the Mississippi River except the far west ; the 

 official group includes points in Central Freight .\ssociation Territory and 

 points grouped therewith, also Illinois territory. 



Thirty-Five Hundred Invited to National's 

 Silver Jubilee 



Thirty-five hundred invitations to the twenty-fifth annual con- 

 vention of the National Hardw-ood Lumber Association have been 

 issued. The invitations tliis year have been so adjusted as to 

 reach unusually large contingents of the woodworking lines. Ee- 

 sponses thus far indicate that there will be an especially heavy 

 attendance at the meeting from all of the lines which can be 

 classified under this head, particularly from the automobile, fur- 

 niture and sash and door manufacturing sections of the industry. 

 Xine-tenths of these responses contained requests for hotel reserva- 

 tions, and indicate not only that the principals of the woodworking 

 concerns will be present, but also that in tlie majority of instances 

 tliese principals will be accompanied by their lumber buyers. Pres- 

 ent indications are that attendance, at the meeting will reach at 

 least 1,.500. The convention takes place in Chicago at the Con- 

 gress Hotel on June 22 and 23. 



One of the most important pre-convention events was the appear- 

 ance about ten days ago of the annual "Official Year Book," which 

 contains the complete program of the twenty-fifth annual con- 

 vention. 



The book is larger and handsomer this year than ever before, and 

 was designed to express the importance of the silver anniversary 

 of the association — the one which the forthcoming annual will cele- 

 brate. The book contains 218 pages in addition to the artistic 

 cover pages. The cover pages are heavy brown linen paper. The 

 outside front cover jiage bears the imprint of a scene from a log 

 drive, printed in silver and two colors, red and blue. The matter 

 inside the book is printed in sepia ink. One of the most interesting 

 features of the contents is the ' ' Outline of History of the National 

 Hardwood Lumber Association," in which the larger aspects of the 

 .•issoeiation 's history are traced with a facility that rivals Wells' 

 celebrated chronology of the world. 



The program shows that besides such headliners as Secretary 

 Hoover and Governor Allen of Kansas and the Sales Code questions 

 at the business sessions, there will be plenty of entertainment at 

 the social sessions in the two evenings of the convention. Some 

 of the best vaudeville performers in the country are booked for 

 the Silver Jubilee banquet June 22 and the dinner and smoker 

 June 23. 



