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13 Washburn L.J. 6 (1974)
The Legislative History of the Federal Trade Commission Act

handle is hein.journals/wasbur13 and id is 30 raw text is: The Legislative History of the Federal Trade
Commission Act
by James C. Lang*
I. Introduction
If. Combinations
III. Governmental Concern with the Combination Movement Prior to the Sherman
Act
IV. The Interstate Commerce Act
V. The Sherman Act
A. Background
B. Purpose and Enforcement
VI. The Effect of the Sherman Act upon the Combination Movement
VII. The 1914 Antitrust Legislation
VIII. Conclusion
I. Introduction
The Federal Trade Commission, created in 1914,1 was the second
major regulatory agency to be established by Congress. The Interstate
Commerce Commission had been created in 1887, but this agency was
concerned primarily with regulation of the railway industry. While the
Interstate Commerce Act was a novel piece of legislation on the federal
level, the Federal Trade Commission Act was a remedial measure ne-
cessitated by the Sherman Act's2 failure to halt the growth of business
combinations. It united the commission form of regulation, exempli-
fied by the Interstate Commerce Commission, with a general antitrust
prohibition. It was not in itself a comprehensive piece of legislation
but rather an addition to the Sherman Act supplemented shortly after
its passage by specific antitrust prohibitions in the Clayton Act.3
The provisions of the Federal Trade Commission legislation may
be divided into those relating to the structure of the Commission and
those relating to the prohibition and enforcement areas. The Commis-
sion was organized in much the same manner as was the Interstate
Commerce Commission. Five members were to be appointed by the
President with the advice and consent of the Senate and only three of
the five could be of the same political party. The Act abolished the
old Bureau of Corporations and merged the Bureau's administrative
machinery into the new Federal Trade Commission.4
While there was nothing particularly unusual about the organiza-
tion of the Commission, it should be noted this was the first use of
* B.A., Univ. of Tulsa, 1961; M.A., Id., 1970; J.D., Id., 1964; private practitioner
in Tulsa, Oklahoma.
1. Act of Sept. 26, 1914, ch. 311, 38 Stat. 717.
2. Sherman Antitrust Act, 115 U.S.C. § 1 (1890).
3. Clayton Act, 15 U.S.C. § 19 (1914).
4. Act of Sept. 26, 1914, ch. 311, 38 Stat. 717.

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